PB Bankshares(PBBK) - 2024 Q1 - Quarterly Report

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$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$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$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$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$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$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$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$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$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$84,000) for the three months ended March 31, 2024[165] - Non-performing loans decreased to $1.3 million, or 0.39$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$46.8 million at March 31, 2024, due to stock repurchases[132] - Income tax expense decreased by $38,000, or 30.2$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$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]