PB Bankshares(US:PBBK)2023-08-14 20:37Financial Performance - Net income for the three months ended June 30, 2023, was $588,000, an increase of $241,000 compared to $347,000 for the same period in 2022[130]. - For the six months ended June 30, 2023, net income was $997,000, up $405,000 from $592,000 for the same period in 2022[131]. - Net income increased by $405,000, or 68.4%, to $997,000 for the six months ended June 30, 2023, compared to $592,000 for the same period in 2022[186]. Asset Growth - Total assets increased by $26.0 million, or 6.7%, to $412.6 million at June 30, 2023, from $386.5 million at December 31, 2022[128]. - Gross loans increased by $16.9 million, or 5.5%, to $322.3 million at June 30, 2023, from $305.4 million at December 31, 2022[145]. - Cash and cash equivalents rose by $25.3 million to $42.5 million at June 30, 2023, from $17.2 million at December 31, 2022[145]. Deposit and Loan Activity - Deposits rose by $22.6 million, or 7.8%, to $312.1 million at June 30, 2023, from $289.5 million at December 31, 2022[128]. - Total deposits increased by $22.6 million, or 7.8%, to $312.1 million as of June 30, 2023, with a notable increase in interest-bearing demand deposits and certificates of deposit[154]. - Net loans receivable increased by $16.5 million, or 5.5%, to $317.3 million as of June 30, 2023, primarily driven by a $25.3 million increase in commercial real estate loans, which rose by 17.0%[146]. Interest Income and Expense - Total interest and dividend income increased by $1.9 million, or 60.2%, to $5.0 million for the three months ended June 30, 2023, attributed to a 174 basis points increase in the average yield on interest-earning assets[158]. - Interest income on loans increased by $1.4 million, or 47.6%, to $4.4 million for the three months ended June 30, 2023, reflecting a 133 basis points increase in the average yield on loans to 5.50%[161]. - Interest expense increased by $1.2 million, or 177.4%, to $1.8 million for the three months ended June 30, 2023, due to rising interest rates impacting deposits and borrowings[164]. Noninterest Income and Expenses - Noninterest income increased by $112,000, or 76.2%, to $259,000 for the three months ended June 30, 2023, from $147,000 for the same period in 2022[174]. - Total noninterest expenses rose by $484,000, or 24.1%, to $2.5 million for the three months ended June 30, 2023, from $2.0 million for the same period in 2022[176]. - Salaries and employee benefits increased by $283,000, primarily due to stock-based compensation and hiring of additional staff[176]. Credit Losses and Allowance - The allowance for credit losses is based on evaluations of historical loan losses and current economic conditions[139]. - Provision for credit losses recorded was $247,000 for the three months ended June 30, 2023, compared to $203,000 for the same period in 2022, driven by loan growth[171]. - The allowance for credit losses at the end of the period was $4,314,000, up from $3,439,000 a year earlier, with an allowance to total loans ratio of 1.34% as of June 30, 2023[220]. Tax and Equity - Income tax expense increased by $72,000 to $153,000 for the three months ended June 30, 2023, from $81,000 for the same period in 2022[177]. - The effective tax rates were 20.6% for the three months ended June 30, 2023, compared to 18.9% for the same period in 2022[177]. - Stockholders' equity increased by $190,000, or 0.4%, to $46.2 million as of June 30, 2023, supported by a net income increase of $997,000 for the current six-month period[156]. Liquidity and Commitments - Liquidity ratio averaged 13.1% for the six months ended June 30, 2023, well above the target of 5.0%[223]. - Commitments to originate loans stood at $37.8 million, with unused lines of credit totaling $13.6 million as of June 30, 2023[228]. - The company maintained the ability to borrow approximately $161.1 million from the Federal Home Loan Bank of Pittsburgh, with $50.4 million already advanced[222].