YORK, Pa., April 25, 2024 /PRNewswire/ -- Traditions Bancorp, Inc. (OTC Pink: TRBK), parent company of Traditions Bank, reported net income of $1.4 million for the first quarter ended March 31, 2024, compared to $0.7 million in the linked quarter and $1.5 million for the first quarter of 2023. The company reported earnings per share (diluted) of 49 cents for the first quarter ended March 31, 2024, compared to 24 cents in the linked quarter and 55 cents for the first quarter of 2023. Unrealized investment portfolio losses, flowing through Accumulated Other Comprehensive Loss, have increased to $11.5 million at quarter end compared to $11.1 million in the linked quarter. Book value per common share was $23.56 on March 31, 2024, versus $23.31 in the linked quarter and $22.41 for the first quarter of 2023.
"Traditions Bancorp's quarterly net earnings are improved for 2024, despite the continuing challenges of higher-for-longer interest rates and persistent inflation," stated Eugene J. Draganosky, Chair of the Board and Chief Executive Officer. "Mortgage banking income has exceeded our forecast for the first quarter, with gains on the sale of mortgages helping to offset lower than expected net interest income due to escalating funding costs. We are cautiously optimistic for the remainder of the year, provided that our mortgage banking activity continues to outpace expectations and stubborn inflation abates. Meanwhile, our commercial loan pipeline is gradually building for the next few quarters of 2024."
Quarterly Highlights ? First Quarter 2024 versus First Quarter 2023
Credit Quality and Capital Insights:
FINANCIAL HIGHLIGHTS (unaudited): | |||||
Selected Financial Data | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 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 Mar 31, | |||||
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 Traditions Bancorp, Inc. that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," "anticipate" or similar terminology. Such forward-looking statements include, but are not limited to, discussions of strategy, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives, goals, expectations or consequences; and statements about future performance, operations, products and services of Traditions Bancorp.
Traditions Bancorp cautions readers not to place undue reliance on forward-looking statements and to consider possible events or factors that could cause results or performance to materially differ from those expressed in the forward-looking statements, including, but not limited to: ineffectiveness of the organization's business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; interest rate movements; difficulties in integrating distinct business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; volatilities in the securities markets; and deteriorating economic conditions.
Forward-looking statements in this release speak only as of the date of this release and Traditions Bancorp makes no commitment to review or update such statements to reflect changes that occur after the date the forward-looking statement was made.
SOURCE Traditions Bancorp, Inc.
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