Traditions Bancorp, Inc. Reports First Quarter 2024 Earnings
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Quarterly Highlights – First Quarter 2024 versus First Quarter 2023
- Loans grew by
$47.4 million , or 8%, over 1Q23. Loan growth was intentionally slowed in 4Q23 and 1Q24 to stem margin compression as funding costs continued to rise. - Over the previous 12 months, deposits increased by
$22.1 million , or 3%, over 1Q23. Most of this growth was concentrated in brokered deposits, higher-cost time deposits, and money market specials as depositors became more rate sensitive. Brokered CDs shrank from$64.7 million at the end of 2023 to$54.7 million at the end of 1Q24, representing 7% of total deposits. - The cost of deposits increased to 3.04% for 1Q24, up from 2.84% for 4Q23 and 1.52% for 1Q23.
- Net interest margin contracted to 2.91% in 1Q24 compared to 3.45% in 1Q23. This was driven by an increase in the total cost of funds, including borrowings, from 1.65% in 1Q23 to 3.13% in 1Q24.
- Gains on the sale of mortgages were
$1.2 million for 1Q24, increasing from$1.0 million in 1Q23 and$0.8 million in 4Q23. - Mortgage banking revenue continues to be adversely impacted by higher-for-longer interest rates and limited home inventories. The mortgage pipeline increased to
$17.4 million from$9.2 million in the linked quarter and is up from$10.0 million onMarch 31, 2023 . - A first-quarter cash dividend of
eight cents per common share was declared onApril 18, 2024 , and is payable onMay 13, 2024 , to shareholders of record at the close of business onMay 3, 2024 . - Net interest income decreased
$0.6 million in 1Q24 from 1Q23, or 9%, driven by rising funding costs. - Other expense decreased by 7%, from
$6.3 million in 1Q23 to$5.8 million in 1Q24, primarily due to the expense reduction from the strategic realignment completed in 2023. - The 1Q24 credit loss provision was
$132 thousand .
Credit Quality and Capital Insights:
- Nonaccrual loans decreased from
$4.0 million in 4Q23 to$3.8 million in the current quarter. The transfer of$0.6 million of nonaccrual loans into Other Real Estate Owned/repossessed assets in 1Q24 offset the addition of several small residential mortgage, consumer, and commercial loans into nonaccrual status during the quarter. - The company reported no net charge-offs in 1Q24.
- Non-performing assets to total assets increased from 0.47% in the linked quarter to 0.53% in the current quarter.
- Delinquencies greater than 30 days were 0.85% of total loans as of
March 31, 2024 , up from 0.70% as ofDecember 31, 2023 , and 0.49% as ofMarch 31, 2023 . - The company's ACL ratio was 0.57% as of
March 31, 2024 , compared to 0.56% as ofDecember 31, 2023 , and 0.52% as ofMarch 31, 2023 . -
Traditions Bancorp andTraditions Bank remain well capitalized.
FINANCIAL HIGHLIGHTS (unaudited): |
|
|
|
|
|
Selected Financial Data |
|
2024 |
|
2023 |
2023 |
Investment securities |
$ |
108,211 |
$ |
111,817 |
122,562 |
Loans, net of unearned income |
|
672,360 |
|
668,813 |
624,957 |
Allowance for credit losses |
|
3,844 |
|
3,730 |
3,262 |
Total assets |
|
840,864 |
|
840,073 |
808,298 |
Deposits |
|
730,092 |
|
731,051 |
707,971 |
Borrowings |
|
32,500 |
|
32,500 |
26,657 |
Shareholders' equity |
|
64,584 |
|
63,786 |
62,474 |
Common book value per common share |
$ |
23.56 |
$ |
23.31 |
22.41 |
Tier 1 book value per common share |
$ |
27.76 |
$ |
27.35 |
26.18 |
Allowance/loans |
|
0.57 % |
|
0.56 % |
0.52 % |
Non-performing assets/total assets |
|
0.53 % |
|
0.47 % |
0.35 % |
Tier 1 capital/average assets |
|
8.93 % |
|
8.70 % |
9.10 % |
Tier 1 capital/risk-weighted assets |
|
11.62 % |
|
11.53 % |
11.64 % |
Total capital/risk-weighted assets |
|
12.24 % |
|
12.12 % |
12.20 % |
Common shares outstanding |
|
2,741 |
|
2,737 |
2,788 |
|
Three months ended |
|
|||
Selected Operations Data |
|
2024 |
|
2023 |
|
Interest income |
$ |
10,881 |
$ |
8,831 |
|
Interest expense |
|
(4,997) |
|
(2,360) |
|
Net interest income |
|
5,884 |
|
6,471 |
|
Provision for credit losses |
|
(132) |
|
229 |
|
Investment securities gains (losses) |
|
- |
|
- |
|
Gains on sale of mortgages |
|
1,232 |
|
969 |
|
Other income |
|
539 |
|
505 |
|
Other expense |
|
(5,845) |
|
(6,271) |
|
Income before income taxes |
|
1,678 |
|
1,903 |
|
Income taxes |
|
(318) |
|
(361) |
|
Net income |
$ |
1,360 |
$ |
1,542 |
|
Earnings per common share (basic) |
$ |
0.49 |
$ |
0.55 |
|
Earnings per common share (diluted) |
$ |
0.49 |
$ |
0.55 |
|
Return on average assets |
|
0.65 % |
|
0.79 % |
|
Return on average equity |
|
8.52 % |
|
10.31 % |
|
Net interest margin |
|
2.91 % |
|
3.45 % |
|
Efficiency ratio |
|
76.36 % |
|
78.93 % |
|
Net charge-offs(recoveries)/average loans |
|
0.00 % |
|
-0.10 % |
|
Average common shares |
|
2,760 |
|
2,807 |
|
SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS:
This release contains forward-looking statements about
Forward-looking statements in this release speak only as of the date of this release and
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