Core Viewpoint - Norwood Financial Corp and PB Bankshares, Inc. have announced a merger agreement, with Presence Bank merging into Wayne Bank, significantly expanding Norwood's geographic footprint and enhancing service capabilities [1][3][4]. Company Overview - Norwood Financial, through Wayne Bank, operates 30 banking offices with consolidated assets of $2.4 billion as of March 31, 2025 [2][10]. - PB Bankshares, the holding company for Presence Bank, operates four banking offices and had assets of $467 million as of March 31, 2025 [2][11]. Merger Details - The merger will create a combined entity with approximately $3.0 billion in assets, positioning it as a premier community bank in Pennsylvania [2][3]. - Under the merger agreement, 80% of Presence's common shares will convert into Norwood Financial common stock, while 20% will be exchanged for cash, with an aggregate transaction value of approximately $54.9 million [4][5]. - The purchase price reflects a multiple of 106.6% of Presence's tangible book value as of March 31, 2025, and a 2.3% core deposit premium [4]. Strategic Benefits - The merger is expected to be approximately 10% accretive to earnings per share in 2026, enhancing market share in Central and Southeastern Pennsylvania [5][8]. - Presence Bank's customers will gain access to a broader product mix and improved services, enhancing the overall customer experience [4][5]. Leadership and Governance - Two non-employee board members from Presence Bank will join the boards of Norwood Financial and Wayne Bank [6]. - Janak M. Amin, President and CEO of Presence, will become Executive Vice President and Chief Operating Officer of Wayne Bank post-merger [4][7]. Regulatory and Closing Conditions - The merger is subject to customary closing conditions, including regulatory approvals and shareholder approval from Presence [8]. - The transaction is expected to close in late Q4 2025 or early Q1 2026 [8].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40612 (Exact name of registrant as specified in its charter) Non-accelerated filer ☒ Smaller reporting compan ...

Financial Performance - Net income for Q1 2025 was $473,000, a 49.2% increase from $317,000 in Q1 2024[1][3] - Diluted earnings per share rose to $0.20 in Q1 2025 from $0.13 in Q1 2024[1][3] - Noninterest income rose to $254,000 in Q1 2025 from $187,000 in Q1 2024[6][18] Interest Income and Margin - Net interest income increased by 16.6% to $3.1 million in Q1 2025 compared to $2.6 million in Q1 2024[3][4] - Net interest margin improved by 41 basis points to 2.85% in Q1 2025 from 2.44% in Q1 2024[3] - Net interest margin (annualized) increased to 2.85% in March 2025 from 2.59% in December 2024[20] Assets and Equity - Total assets grew by $15.8 million or 3.5% to $467.1 million at March 31, 2025[8][19] - Cash and cash equivalents surged by 66.1% to $62.8 million at March 31, 2025 from $37.8 million at December 31, 2024[8][19] - Stockholders' equity increased by $860,000 to $49.5 million at March 31, 2025[12][19] - Tangible common equity increased to $49,518 million in March 2025 from $48,658 million in December 2024[22] - Tangible book value per common share rose to $19.40 in March 2025 from $19.07 in December 2024[22] - Tangible book value per common share excluding accumulated other comprehensive loss increased to $19.42 in March 2025 from $19.19 in December 2024[22] Deposits and Loans - Deposits increased by $13.4 million or 3.8% to $367.6 million at March 31, 2025[12][19] - The allowance for credit losses was $4.4 million, or 1.26% of loans outstanding at March 31, 2025[5][19] - Total non-performing loans to total loans remained stable at 0.31% in March 2025 compared to 0.32% in December 2024[20] Performance Ratios - Return on average assets (annualized) decreased to 0.43% in March 2025 from 0.61% in December 2024[20] - Return on average equity (annualized) decreased to 3.89% in March 2025 from 5.62% in December 2024[20] - Allowance to non-accrual loans improved to 406.49% in March 2025 from 388.24% in December 2024[20] - Total capital to risk-weighted assets remained stable at 13.48% in March 2025 compared to 13.50% in December 2024[20] Share Information - Common shares outstanding increased slightly to 2,552,315 in March 2025 from 2,552,115 in December 2024[22]

Financial Performance - Net income for the year ended December 31, 2024 was $1.8 million, a decrease of $147,000 compared to $1.9 million for the year ended December 31, 2023[226]. - Net income decreased by $147,000 to $1.8 million for the year ended December 31, 2024, attributed to a $1.0 million decrease in net interest income[252]. - Noninterest income increased by $528,000, or 67.3%, to $1.3 million for 2024 from $785,000 for 2023, primarily due to gains from the disposal of premises and equipment[266]. - Total noninterest expenses rose by $394,000, or 4.0%, to $10.2 million in 2024, driven by increases in salaries and employee benefits, professional fees, and data processing expenses[268]. - Income tax expense decreased by $70,000, or 12.8%, to $475,000 for 2024, with an effective tax rate of 21.1% compared to 22.1% in 2023[269]. Asset and Deposit Growth - Consolidated assets increased by $11.6 million, or 2.6%, from $439.7 million at December 31, 2023 to $451.3 million at December 31, 2024[222]. - Deposits increased by $21.2 million, or 6.4%, from $333.0 million at December 31, 2023 to $354.2 million at December 31, 2024[222]. - Total deposits increased by $21.2 million, or 6.4%, to $354.2 million at December 31, 2024, driven by a $28.2 million increase in certificates of deposit[248]. - Core deposits decreased by $7.1 million, or 3.8%, to $180.4 million at December 31, 2024 from $187.5 million at December 31, 2023[231]. - Cash and cash equivalents totaled $37.8 million at December 31, 2024, with unpledged debt securities classified as available-for-sale amounting to $26.7 million[278]. Loan Portfolio - Commercial real estate and commercial and industrial loan portfolios increased from $201.4 million, or 61.7% of total loans at December 31, 2023, to $226.4 million, or 64.7% of total loans at December 31, 2024[227]. - Net loans receivable increased by $23.4 million, or 7.3%, to $344.8 million at December 31, 2024 from $321.4 million at December 31, 2023[242]. - The commercial real estate portfolio has an average Loan-to-Value ratio of 59.2% and a Debt Service Coverage ratio of 1.41 times as of December 31, 2024, with 83.5% or $126.2 million of the portfolio subject to stress testing[243]. - The hospitality portfolio's loan exposure totaled $25.5 million with an average Loan-to-Value ratio of 58.5% and a Debt Service Coverage ratio of 1.90 times as of December 31, 2024[244]. - As of December 31, 2024, the company had outstanding commitments to originate loans of $24.0 million, unused lines of credit totaling $12.4 million, and $6.7 million in stand-by letters of credit[281]. Interest Income and Expense - Total interest income increased by $3.7 million, or 18.4%, to $23.5 million for the year ended December 31, 2024, driven by a $41.4 million increase in the average balance of interest-earning assets[253]. - Interest expense increased by $4.7 million, or 60.6%, to $12.4 million for the year ended December 31, 2024, due to increases in interest expense on deposits[257]. - Net interest income decreased by $1.0 million, or 8.4%, to $11.1 million for the year ended December 31, 2024, with a net interest margin decrease of 53 basis points to 2.54%[261]. - Average interest-earning assets increased to $437.4 million in 2024, generating net interest income of $11.1 million, down from $12.1 million in 2023[271]. - The net interest margin decreased to 2.54% in 2024 from 3.07% in 2023, reflecting changes in interest rates and volumes[271]. Capital and Liquidity - Stockholders' equity increased by $1.7 million, or 3.6%, to $48.7 million at December 31, 2024, primarily due to net income of $1.8 million[250]. - The liquidity ratio averaged 15.1% for the year ended December 31, 2024, significantly above the target of 5.0%[276]. - The company maintained a strong liquidity position and exceeded all regulatory capital requirements, being classified as "well capitalized" under regulatory guidelines[280]. - Total borrowings from the Federal Home Loan Bank of Pittsburgh decreased by $12.6 million, or 22.9%, to $42.5 million at December 31, 2024[249]. Other Considerations - The allowance for credit losses on loans was $4.4 million, or 1.25%, of loans outstanding at December 31, 2024, compared to $4.5 million, or 1.38%, at December 31, 2023[263]. - The gain on disposal of premises and equipment was $494,000 in 2024, resulting from the sale of a branch location in Oxford, Pennsylvania[266]. - Certificates of deposit due within one year totaled $151.1 million, representing 86.9% of total certificates of deposit and 42.7% of total deposits[279]. - Certificates of deposit maturing in less than one year from December 31, 2024, totaled $151.1 million, with management expecting a substantial portion to be renewed[281]. - The company anticipates sufficient funds to meet current lending commitments, but may need to utilize Federal Home Loan Bank advances or raise interest rates if a significant portion of deposits is not retained[281]. - The primary impact of inflation on the company's operations is reflected in increased operating costs, with interest rates having a more significant impact on performance than inflation[284].

Financial Performance - PB Bankshares, Inc. reported unaudited net income of $681,000 for Q4 2024, up from $409,000 in Q4 2023, and $1,772,000 for the year 2024, compared to $1,919,000 in 2023[1] - Net income for the year ended December 31, 2024, was $1,772 million, a decrease of 7.7% from $1,919 million in 2023[18] - Return on average assets (annualized) improved to 0.61% in Q4 2024 from 0.38% in Q4 2023[20] - Return on average equity (annualized) increased to 5.62% in Q4 2024 compared to 3.14% in Q4 2023[20] Income and Revenue - Total interest and dividend income increased by 18.4% to $23.5 million for the year ended December 31, 2024, from $19.8 million in 2023[2] - Noninterest income rose to $662,000 for Q4 2024, compared to $203,000 in Q4 2023, primarily due to a $487,000 gain on the sale of the Oxford Branch[5] - Noninterest income increased to $1,313 million in 2024, up 67.0% from $785 million in 2023[18] - Net interest income decreased to $11,094 million in 2024 from $12,114 million in 2023, reflecting a decline of 8.4%[18] Assets and Liabilities - Total assets increased by $11.6 million or 2.6% to $451.3 million at December 31, 2024, from $439.7 million at December 31, 2023[8] - Total assets as of December 31, 2024, were $451,317 million, slightly up from $439,748 million a year earlier[19] - Total deposits grew by $21.2 million or 6.4% to $354.2 million at December 31, 2024, from $333.0 million at December 31, 2023[11] Equity and Capital - Stockholders' equity increased by $1.7 million to $48.7 million at December 31, 2024, primarily due to net income and a decrease in accumulated other comprehensive loss[12] - Total stockholders' equity rose to $48,658 million as of December 31, 2024, from $46,989 million a year earlier[19] - Tangible book value per common share increased to $19.07 in Q4 2024 from $17.53 in Q4 2023[20] - Total capital to risk-weighted assets ratio was 13.50% as of December 31, 2024, down from 14.20% a year earlier[20] Loan and Credit Quality - Gross loans grew by 7.1% to $349.8 million at December 31, 2024, up from $326.6 million at December 31, 2023[8] - The allowance for credit losses was $4.4 million, or 1.25% of loans outstanding at December 31, 2024, compared to $4.5 million, or 1.38% at December 31, 2023[4] - The allowance to non-accrual loans ratio was 388.24% as of December 31, 2024, indicating strong coverage[20] - The commercial real estate portfolio has an average Loan-to-Value ratio of 59.2% and a Debt Service Coverage ratio of 1.41 times at December 31, 2024[8] Expenses - Noninterest expense increased by 4.0% to $10.2 million for the year ended December 31, 2024, from $9.8 million in 2023[2]

Financial Performance - Net income for the three months ended September 30, 2024, was $404,000, a decrease of $109,000 compared to $513,000 for the same period in 2023[117]. - For the nine months ended September 30, 2024, net income was $1.1 million, down $419,000 from $1.5 million for the same period in 2023[119]. - Net income decreased by $109,000, or 21.2%, to $404,000 for the three months ended September 30, 2024, from $513,000 for the same period in 2023[141]. - Net income decreased by $419,000, or 27.7%, to $1.1 million for the nine months ended September 30, 2024, from $1.5 million for the same period in 2023[161]. - Net interest income decreased by $215,000, or 7.1%, to $2.8 million for the three months ended September 30, 2024[152]. - Net interest income decreased by $1.1 million, or 11.4%, to $8.2 million for the nine months ended September 30, 2024, primarily due to increased interest expenses[173]. Asset and Liability Management - Total assets increased by $13.1 million, or 3.0%, to $452.8 million at September 30, 2024, from $439.7 million at December 31, 2023[129]. - Total liabilities increased to $400.6 million as of September 30, 2024, compared to $355.5 million at December 31, 2023[182]. - Total deposits grew by $21.8 million, or 6.6%, to $354.8 million at September 30, 2024, from $333.0 million at December 31, 2023[115]. - Total borrowings from the FHLB decreased by $9.9 million, or 17.9%, to $45.2 million at September 30, 2024[139]. - Total interest-bearing liabilities increased to $372.2 million for the nine months ended September 30, 2024, from $311.3 million for the same period in 2023[182]. Loan Portfolio - Gross loans increased by $22.6 million, or 6.9%, to $349.2 million at September 30, 2024, from $326.6 million at December 31, 2023[129]. - Commercial real estate loans rose by $20.7 million, or 11.2%, to $205.6 million at September 30, 2024, from $184.9 million at December 31, 2023[130]. - The allowance for credit losses on loans was $4.4 million, or 1.27%, of loans outstanding at September 30, 2024, down from $4.5 million, or 1.38%, at December 31, 2023[175]. - Total non-performing loans were $1.3 million, or 0.36% of total loans, at September 30, 2024, down from $1.4 million, or 0.44% of total loans, at December 31, 2023[191]. - Nonaccrual loans totaled $1.3 million at September 30, 2024, down from $1.4 million at December 31, 2023[191]. Income and Expenses - Total interest and dividend income increased by $872,000, or 17.0%, to $6.0 million for the three months ended September 30, 2024[142]. - Interest income on loans increased by $690,000, or 15.8%, to $5.1 million for the three months ended September 30, 2024[143]. - Interest expense increased by $1.1 million, or 51.8%, to $3.2 million for the three months ended September 30, 2024[147]. - Noninterest income increased by $89,000, or 48.1%, to $274,000 for the three months ended September 30, 2024, compared to $185,000 for the same period in 2023[156]. - Noninterest expenses rose by $119,000, or 4.9%, to $2.6 million for the three months ended September 30, 2024, from $2.4 million in the same period of 2023[157]. Credit Losses - The provision for credit losses recorded was $34,000 for the three months ended September 30, 2024, compared to $140,000 for the same period in 2023[154]. - The provision for credit losses recorded a reversal of $33,000 for the nine months ended September 30, 2024, compared to a provision of $570,000 in the prior year[175]. - Charge-offs were $115,000 and $121,000 for the three and nine months ended September 30, 2024, respectively, compared to $0 and $144,000 for the same periods in 2023[196]. Equity and Capital - Stockholders' equity increased by $703,000, or 1.5%, to $47.7 million at September 30, 2024, from $47.0 million at December 31, 2023[140]. - The company maintained a strong liquidity position with the ability to borrow approximately $199.5 million from the Federal Home Loan Bank of Pittsburgh[199]. Taxation - Income tax expense decreased by $30,000, or 21.3%, to $111,000 for the three months ended September 30, 2024, compared to $141,000 for the same period in 2023[158]. - Income tax expense decreased by $119,000, or 28.3%, to $301,000 for the nine months ended September 30, 2024, compared to $420,000 for the same period in 2023[180]. - The effective tax rates were 21.6% for the nine months ended September 30, 2024, compared to 21.8% for the same period in 2023[180]. Liquidity - Cash and cash equivalents increased by $22.1 million, or 68.1%, to $54.5 million at September 30, 2024, from $32.4 million at December 31, 2023[136]. - Cash and cash equivalents totaled $54.5 million at September 30, 2024[202]. - Outstanding commitments to originate loans were $26.8 million as of September 30, 2024[207]. - Unused lines of credit totaled $12.6 million at September 30, 2024[207]. - Certificates of deposit due within one year totaled $147.0 million, representing 86.3% of total certificates of deposit[203].

Financial Performance - PB Bankshares, Inc. reported unaudited net income of $404,000 for Q3 2024, down from $513,000 in Q3 2023, and $1,091,000 for the nine months ended September 30, 2024, compared to $1,510,000 for the same period in 2023[1]. - Net income for the nine months ended September 30, 2024, was $1,091,000, down from $1,510,000 for the same period in 2023, representing a decrease of approximately 27.8%[12]. - Earnings per common share (diluted) for the three months ended September 30, 2024, was $0.18, consistent with the previous quarter[11]. Income and Revenue - Total interest and dividend income increased by 20.6% to $17.6 million for the nine months ended September 30, 2024, up from $14.6 million in the same period of 2023[2]. - Noninterest income for the nine months ended September 30, 2024, was $651,000, up from $582,000 in the same period of 2023, driven by gains on equity securities[4]. - Noninterest income for the nine months ended September 30, 2024, was $651,000, compared to $582,000 for the same period in 2023, showing an increase of approximately 11.9%[12]. Assets and Liabilities - Total assets rose by $13.2 million, or 3.0%, to $452.9 million at September 30, 2024, from $439.7 million at December 31, 2023[6]. - Total assets as of September 30, 2024, were $452,857,000, up from $449,045,000 as of June 30, 2024, indicating a growth of 0.4%[13]. - Cash and cash equivalents increased by 68.1% to $54.5 million at September 30, 2024, from $32.4 million at December 31, 2023[6]. - Gross loans increased by $22.6 million, or 6.9%, to $349.2 million at September 30, 2024, primarily due to growth in the commercial real estate portfolio[6]. Credit Quality - The allowance for credit losses was $4.4 million, or 1.27% of loans outstanding, as of September 30, 2024, compared to $4.5 million, or 1.38%, at December 31, 2023[4]. - The provision for credit losses for the nine months ended September 30, 2024, was $(33,000), a significant improvement from $570,000 for the same period in 2023[12]. - Total non-performing loans decreased to $1.3 million at September 30, 2024, compared to $1.4 million at December 31, 2023, with a non-performing loans to total loans ratio of 0.36%[4]. Stockholder Equity - Stockholders' equity increased by $703,000 to $47.7 million at September 30, 2024, primarily due to year-to-date net income of $1.1 million[8]. - Total stockholders' equity as of September 30, 2024, was $47,692,000, an increase from $46,600,000 as of June 30, 2024[13]. Share Repurchase - The Company repurchased 130,827 shares of its common stock during the first nine months of 2024 at an average price of $13.25 per share[2]. Margins and Returns - The net interest margin for the three months ended September 30, 2024, was 2.57%, compared to 2.54% in the previous quarter, reflecting a slight improvement[14]. - The return on average assets (annualized) for the three months ended September 30, 2024, was 0.36%, up from 0.33% in the previous quarter[14]. Quarterly Performance - Interest and dividend income for the three months ended September 30, 2024, was $6,011,000, an increase from $5,931,000 in the previous quarter[11]. - The tangible book value per common share as of September 30, 2024, was $18.69, up from $18.17 as of June 30, 2024[14].

Financial Performance - Net income for the three months ended June 30, 2024, was $370,000, a decrease of $218,000 compared to $588,000 for the same period in 2023[108]. - Net income decreased by $218,000, or 37.1%, to $370,000 for the three months ended June 30, 2024, primarily due to a $1.3 million increase in interest expense[124]. - Net income decreased by $310,000, or 31.1%, to $687,000 for the six months ended June 30, 2024, from $997,000 for the same period in 2023[144]. - Noninterest income decreased by $69,000, or 26.6%, to $190,000 for the three months ended June 30, 2024, compared to $259,000 for the same period in 2023[138]. - Noninterest income decreased by $20,000, or 5.0%, to $377,000 for the six months ended June 30, 2024, from $397,000 in the prior year[158]. - Income tax expense decreased by $51,000, or 33.3%, to $102,000 for the three months ended June 30, 2024, from $153,000 for the same period in 2023[140]. - Income tax expense decreased by $89,000, or 31.9%, to $190,000 for the six months ended June 30, 2024, from $279,000 for the same period in 2023[162]. Asset and Liability Changes - Total assets increased by $9.3 million, or 2.1%, to $449.0 million at June 30, 2024, from $439.7 million at December 31, 2023[116]. - Total liabilities increased to $400,545 million as of June 30, 2024, compared to $349,724 million at December 31, 2023[1]. - Cash and cash equivalents increased by $22.3 million, or 68.7%, to $54.7 million at June 30, 2024, driven by the maturity of $44.7 million in debt securities available-for-sale[120]. - Cash and cash equivalents totaled $54.7 million at June 30, 2024[179]. - Total deposits rose by $14.0 million, or 4.2%, to $347.0 million at June 30, 2024, reflecting a $14.5 million increase in certificates of deposit[122]. - Certificates of deposit due within one year totaled $139.9 million, representing 87.4% of total certificates of deposit[180]. Loan Portfolio - Gross loans increased by $18.5 million, or 5.7%, to $345.1 million at June 30, 2024, primarily due to growth in the commercial real estate portfolio[116]. - Commercial real estate loans increased by $16.1 million, or 8.7%, to $201.0 million at June 30, 2024, from $184.9 million at December 31, 2023[117]. - Consumer and other loans increased by $4.3 million, or 73.9%, to $10.1 million at June 30, 2024, from $5.8 million at December 31, 2023[117]. - The commercial real estate portfolio has an average Loan-to-Value ratio of 59.8% and a Debt Service Coverage ratio of 1.47 times as of June 30, 2024[118]. - The Bank's hospitality portfolio loan exposure totaled $20.5 million across six hotel properties, with an average Loan-to-Value ratio of 51.2% and a Debt Service Coverage ratio of 2.04 times as of June 30, 2024[120]. - Non-performing loans decreased to $1,272 million, or 0.37% of total loans, as of June 30, 2024, down from $1,421 million, or 0.44% at December 31, 2023[171]. Interest Income and Expenses - Total interest and dividend income increased by $884,000, or 17.5%, to $5.9 million for the three months ended June 30, 2024, attributed to a $47.1 million increase in the average balance of interest-earning assets[125]. - Interest income on loans increased by $501,000, or 11.5%, to $4.9 million for the three months ended June 30, 2024, reflecting an increase in the average balance of loans to $344.4 million[127]. - Interest expense increased by $1.3 million, or 72.3%, to $3.1 million for the three months ended June 30, 2024, due to a 102 basis points increase in the average cost of interest-bearing liabilities[130]. - Net interest income decreased by $436,000, or 13.5%, to $2.8 million for the three months ended June 30, 2024, with a net interest margin decrease of 75 basis points to 2.54%[134]. - Total interest and dividend income increased by $2.1 million, or 22.6%, to $11.5 million for the six months ended June 30, 2024, compared to $9.4 million for the same period in 2023[145]. - Interest income on loans increased by $1.3 million, or 15.4%, to $9.4 million for the six months ended June 30, 2024, compared to $8.2 million for the same period in 2023[146]. - Interest expense increased by $3.0 million, or 94.6%, to $6.1 million for the six months ended June 30, 2024, from $3.1 million in the prior year[150]. - Net interest income decreased by $849,000, or 13.5%, to $5.4 million for the six months ended June 30, 2024, compared to $6.3 million for the same period in 2023[154]. Credit Losses and Provisions - The allowance for credit losses at June 30, 2024, reflects the company's estimate of lifetime credit losses expected from its loan portfolio[111]. - The provision for credit losses was recorded at $17,000 for the three months ended June 30, 2024, down from $247,000 in the same period of 2023[136]. - For the six months ended June 30, 2024, the provision for credit losses decreased by $497,000, or 115.6%, resulting in a negative provision of $67,000, down from $430,000 in the prior year[175]. - The allowance for credit losses on loans was $4.5 million, or 1.30% of loans outstanding at June 30, 2024, compared to 1.38% at December 31, 2023[136]. - The allowance to total loans outstanding was 1.30% at June 30, 2024, down from 1.38% at December 31, 2023[175]. Capital and Liquidity - The company is considered "well capitalized" under regulatory guidelines as of June 30, 2024[181]. - The liquidity ratio averaged 16.7% for the six months ended June 30, 2024, compared to 13.1% for the same period in 2023[178]. - The company maintained the ability to borrow approximately $199.5 million from the Federal Home Loan Bank of Pittsburgh, with $50.5 million already advanced[177]. - Commitments to originate loans amounted to $26.2 million, with unused lines of credit totaling $13.4 million as of June 30, 2024[182].

Financial Performance - PB Bankshares, Inc. reported unaudited net income of $370,000 for Q2 2024, a decrease from $588,000 in Q2 2023, and $687,000 for the first six months of 2024 compared to $997,000 for the same period in 2023[2] - For the three months ended June 30, 2024, net income was $687,000, a decrease of 30.9% compared to $997,000 for the same period in 2023[18] - Basic earnings per common share for the quarter were $0.29, down from $0.40 for the same period in 2023[18] Income and Revenue - Total interest and dividend income increased by 22.6% to $11.5 million for the first half of 2024, up from $9.4 million in the same period of 2023[3] - Net interest income for the quarter was $2,786,000, reflecting a decrease from $3,222,000 in the previous quarter[18] - Noninterest income for the first half of 2024 was $377,000, a slight decrease from $397,000 in the same period of 2023, primarily due to lower loan-related fee income[7] - Noninterest income for the quarter was $190,000, showing a slight increase from $187,000 in the previous quarter[18] Assets and Loans - Total assets increased by $9.3 million or 2.1% to $449.0 million at June 30, 2024, primarily due to a 68.7% increase in cash and cash equivalents to $54.7 million[10] - Gross loans increased by $18.5 million or 5.7% to $345.1 million at June 30, 2024, driven by growth in the commercial real estate portfolio[10] - Total assets as of June 30, 2024, were $449,045,000, slightly down from $450,434,000 as of March 31, 2024[20] Credit Quality - The allowance for credit losses was 1.30% of loans outstanding at June 30, 2024, down from 1.38% at December 31, 2023, with total non-performing loans decreasing to $1.3 million[7] - The provision for credit losses was $17,000, compared to a reversal of $84,000 in the previous quarter, indicating a shift in credit quality[18] - The allowance to total loans outstanding at the end of the period was 1.30%, slightly down from 1.32% in the previous quarter[20] Stockholders' Equity - Stockholders' equity decreased by $389,000 to $46.6 million at June 30, 2024, impacted by stock buybacks and partially offset by year-to-date net income[13] - Total stockholders' equity as of June 30, 2024, was $46,600,000, a minor decrease from $46,769,000 as of March 31, 2024[20] Ratios and Coverage - The commercial real estate portfolio has an average Loan-to-Value ratio of 59.8% and a Debt Service Coverage ratio of 1.47 times as of June 30, 2024[10] - The return on average assets (annualized) improved to 0.33% from 0.29% in the previous quarter[20] - The net interest margin (annualized) increased to 2.54% from 2.44% in the previous quarter[20] Deposits - Uninsured and uncollateralized deposits totaled approximately $37.9 million or 10.9% of total deposits as of June 30, 2024[11] Share Repurchase - The Company repurchased 115,827 shares of its common stock at an average price of $13.06 per share during the first half of 2024[3]

Financial Performance - Net income for the three months ended March 31, 2024, was $317,000, a decrease of $92,000 compared to $409,000 for the same period in 2023[113] - Net income decreased by $92,000, or 22.5%, to $317,000 for the three months ended March 31, 2024, compared to $409,000 for the same period in 2023[133] - Total interest and dividend income increased by $1.3 million, or 28.5%, to $5.6 million for the three months ended March 31, 2024, driven by a 54 basis points increase in the average yield on interest-earning assets[134] - Net interest income decreased by $413,000, or 13.6%, to $2.6 million for the three months ended March 31, 2024, primarily due to increased interest expenses[143] - Noninterest income increased by $49,000, or 35.5%, to $187,000 for the three months ended March 31, 2024, compared to $138,000 for the same period in 2023[148] - Net interest income for the three months ended March 31, 2024, was $2,632,000, down from $3,045,000 in the same period of 2023[155] - The net interest margin decreased to 2.44% in Q1 2024 from 3.26% in Q1 2023[155] Asset and Loan Growth - Total assets increased by $10.7 million, or 2.4%, to $450.4 million at March 31, 2024, from $439.7 million at December 31, 2023[121] - Net loans receivable increased by $11.9 million, or 3.7%, to $333.3 million at March 31, 2024, from $321.4 million at December 31, 2023[122] - Gross loans increased by $11.8 million, or 3.6%, to $338.4 million at March 31, 2024, from $326.6 million at December 31, 2023[121] - Commercial real estate loans increased by $10.3 million, or 5.6%, to $195.1 million at March 31, 2024, from $184.9 million at December 31, 2023[123] - Consumer and other loans increased by $879,000, or 15.1%, to $6.7 million at March 31, 2024, from $5.8 million at December 31, 2023[123] - Total commitments to originate loans were $32.6 million, with unused lines of credit totaling $12.9 million[174] Deposits and Liquidity - Deposits rose by $15.4 million, or 4.6%, to $348.4 million at March 31, 2024, from $333.0 million at December 31, 2023[111] - Total deposits increased by $15.4 million, or 4.6%, to $348.4 million at March 31, 2024, with a notable increase in certificates of deposit[130] - Cash and cash equivalents increased by $34.3 million to $66.8 million at March 31, 2024, from $32.4 million at December 31, 2023[121] - Cash and cash equivalents totaled $66.8 million at March 31, 2024[171] - The company maintained a strong liquidity position, monitoring it daily to meet current funding commitments[172] - The liquidity ratio averaged 18.0% for the three months ended March 31, 2024, compared to 12.0% for the same period in 2023[169] Interest and Expenses - Interest income on loans increased by $753,000, or 19.8%, to $4.6 million for the three months ended March 31, 2024, reflecting a 48 basis points increase in the average yield on loans to 5.53%[135] - Interest expense increased by $1.7 million, or 125.2%, to $3.0 million for the three months ended March 31, 2024, due to rising interest rates[138] - Noninterest expenses rose by $33,000, or 1.3%, to $2,498,000 for the three months ended March 31, 2024, from $2,465,000 in the same period of 2023[150] - Advertising and marketing expenses increased by $26,000, primarily due to a search engine optimization campaign and media advertising[150] Credit Losses and Allowance - The allowance for credit losses is based on evaluations of historical loan losses and current conditions, with future adjustments possible if economic conditions differ from assumptions[120] - The allowance for credit losses on loans was $4.5 million, or 1.32%, of loans outstanding at March 31, 2024[146] - The allowance to total loans outstanding was 1.32% at March 31, 2024, slightly decreasing from 1.38% at December 31, 2023[165] - The provision for credit losses decreased by $267,000, or 145.9%, to ($84,000) for the three months ended March 31, 2024[165] - Non-performing loans decreased to $1.3 million, or 0.39% of total loans, from $1.4 million, or 0.44% of total loans, at the end of the previous quarter[162] Equity and Taxation - Stockholders' equity decreased by $220,000, or 0.5%, to $46.8 million at March 31, 2024, due to stock repurchases[132] - Income tax expense decreased by $38,000, or 30.2%, to $88,000 for the three months ended March 31, 2024, from $126,000 in the same period of 2023[151] - The effective tax rates were 21.7% for Q1 2024 and 23.6% for Q1 2023[151] Other Financial Metrics - The average yield on average interest-earning assets increased to 5.20% for the three months ended March 31, 2024, up from 4.66% for the same period in 2023[134] - The average balance of interest-bearing liabilities increased by $59.0 million to $370.5 million for the three months ended March 31, 2024[140] - Total assets increased to $443,907,000 as of March 31, 2024, compared to $388,818,000 as of March 31, 2023[155] - Certificates of deposit due within one year totaled $141.6 million, representing 87.5% of total certificates of deposit[172] - The company had the ability to borrow approximately $202.1 million from the Federal Home Loan Bank of Pittsburgh, with $50.8 million already advanced[166]