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].
PB Bankshares(PBBK) - 2024 Q2 - Quarterly Report