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Traditions Bancorp, Inc. Reports First Quarter 2024 Earnings

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Traditions Bancorp, Inc. reported a net income of $1.4 million for Q1 2024, an increase from $0.7 million in the previous quarter and slightly lower than $1.5 million in Q1 2023. Earnings per share were 49 cents for Q1 2024. The company highlighted growth in loans and deposits, but faced challenges with rising funding costs and interest rates. Mortgage banking income surpassed expectations, offsetting lower net interest income. The company remains cautiously optimistic for the year, contingent on mortgage banking activity and inflation. Key financial data includes a decrease in net interest income, an increase in other expenses, and a credit loss provision of $132 thousand. Nonaccrual loans decreased, but non-performing assets increased slightly. Traditions Bancorp and Traditions Bank are well capitalized.
Traditions Bancorp, Inc. ha dichiarato un reddito netto di 1,4 milioni di dollari per il primo trimestre del 2024, in aumento rispetto ai 0,7 milioni del trimestre precedente e leggermente inferiore agli 1,5 milioni del primo trimestre del 2023. Gli utili per azione sono stati di 49 centesimi per il primo trimestre del 2024. L'azienda ha evidenziato una crescita nei prestiti e nei depositi, ma ha affrontato sfide dovute all'aumento dei costi di finanziamento e dei tassi di interesse. Il reddito derivante dall'attività di banca ipotecaria ha superato le aspettative, compensando un minore reddito netto da interessi. La compagnia rimane cautamente ottimista per l'anno, a condizione che l'attività di banca ipotecaria e l'inflazione si mantengano. I dati finanziari principali includono una diminuzione del reddito netto da interessi, un aumento delle altre spese e una provvista per perdite su crediti di 132 mila dollari. I prestiti in sofferenza sono diminuiti, ma gli attivi non performanti sono leggermente aumentati. Traditions Bancorp e Traditions Bank sono ben capitalizzate.
Traditions Bancorp, Inc. reportó una utilidad neta de $1.4 millones para el primer trimestre de 2024, un aumento desde los $0.7 millones del trimestre anterior y ligeramente menor que los $1.5 millones en el primer trimestre de 2023. Las ganancias por acción fueron de 49 centavos para el primer trimestre de 2024. La empresa destacó el crecimiento en préstamos y depósitos, pero enfrentó desafíos con el aumento de los costos de financiamiento y las tasas de interés. Los ingresos por banca hipotecaria superaron las expectativas, compensando la menor renta neta por intereses. La compañía se mantiene cautelosamente optimista para el año, dependiendo de la actividad de la banca hipotecaria y la inflación. Los datos financieros claves incluyen una disminución en la renta neta de intereses, un aumento en otros gastos, y una provisión para pérdidas crediticias de $132 mil. Los préstamos no acumulativos disminuyeron, pero los activos no productivos aumentaron ligeramente. Traditions Bancorp y Traditions Bank están bien capitalizados.
Traditions Bancorp, Inc.는 2024년 1분기에 140만 달러의 순수입을 보고했으며, 이는 이전 분기의 70만 달러에서 증가했으나, 2023년 1분기의 150만 달러보다는 약간 낮습니다. 2024년 1분기 주당 이익은 49센트였습니다. 회사는 대출과 예금의 성장을 강조했지만, 자금 조달 비용과 이자율 상승으로 어려움을 겪었습니다. 모기지 은행 수입이 예상을 초과하여 낮은 순이자 소득을 상쇄했습니다. 회사는 모기지 은행 활동과 인플레이션에 따라 해를 두고 신중하게 낙관적입니다. 주요 재무 데이터에는 순이자 소득 감소, 기타 비용 증가, 그리고 13만 2천 달러의 신용 손실 준비금이 포함됩니다. 부실 대출은 감소했지만, 부실 자산은 약간 증가했습니다. Traditions Bancorp와 Traditions Bank는 잘 자본화되어 있습니다.
Traditions Bancorp, Inc. a rapporté un bénéfice net de 1,4 million de dollars pour le premier trimestre 2024, une augmentation par rapport aux 0,7 million du trimestre précédent et légèrement inférieur au 1,5 million du premier trimestre 2023. Le bénéfice par action était de 49 cents pour le premier trimestre 2024. L'entreprise a souligné une croissance dans les prêts et les dépôts, mais a rencontré des défis avec l'augmentation des coûts de financement et des taux d'intérêt. Les revenus de la banque hypothécaire ont dépassé les attentes, compensant ainsi des revenus nets d'intérêts plus faibles. La société reste prudemment optimiste pour l'année, en fonction de l'activité de la banque hypothécaire et de l'inflation. Les données financières clés comprennent une diminution du revenu net d'intérêts, une augmentation des autres dépenses, et une provision pour pertes sur créances de 132 mille dollars. Les prêts non productifs ont diminué, mais les actifs non performants ont légèrement augmenté. Traditions Bancorp et Traditions Bank sont bien capitalisées.
Traditions Bancorp, Inc. berichtete über einen Nettogewinn von 1,4 Millionen Dollar für das erste Quartal 2024, ein Anstieg von 0,7 Millionen Dollar im Vorquartal und etwas niedriger als die 1,5 Millionen Dollar im ersten Quartal 2023. Der Gewinn pro Aktie betrug 49 Cents für das erste Quartal 2024. Das Unternehmen verzeichnete ein Wachstum bei Krediten und Einlagen, stand jedoch vor Herausforderungen durch steigende Finanzierungskosten und Zinssätze. Das Einkommen aus dem Hypothekenbankgeschäft übertraf die Erwartungen und glich das geringere Nettozinseinkommen aus. Das Unternehmen bleibt vorsichtig optimistisch für das Jahr, abhängig von der Hypothekenbankaktivität und der Inflation. Zu den wichtigsten Finanzdaten gehören eine Verringerung des Nettozinseinkommens, ein Anstieg anderer Ausgaben und eine Kreditverlustvorsorge von 132 Tausend Dollar. Notleidende Kredite haben abgenommen, nicht leistungsfähige Vermögenswerte sind jedoch leicht gestiegen. Traditions Bancorp und Traditions Bank sind gut kapitalisiert.
Positive
  • Traditions Bancorp, Inc. reported a net income of $1.4 million for Q1 2024.
  • Earnings per share were 49 cents for Q1 2024, showing an increase from the previous quarter.
  • Loan and deposit growth were highlighted, but challenges with funding costs and interest rates were noted.
  • Mortgage banking income exceeded expectations, aiding in offsetting lower net interest income.
  • The company remains cautiously optimistic for the year, dependent on mortgage banking activity and inflation.
  • Key financial data includes a decrease in net interest income and an increase in other expenses.
  • A credit loss provision of $132 thousand was reported for Q1 2024.
  • Nonaccrual loans decreased, while non-performing assets increased slightly.
  • Traditions Bancorp and Traditions Bank are well capitalized.
Negative
  • None.

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

  • Loans grew by $47.4 million, or 8%, over 1Q23. Loan growth was intentionally slowed in 4Q23 and 1Q24 to stem margin compression as funding costs continued to rise.
  • Over the previous 12 months, deposits increased by $22.1 million, or 3%, over 1Q23. Most of this growth was concentrated in brokered deposits, higher-cost time deposits, and money market specials as depositors became more rate sensitive. Brokered CDs shrank from $64.7 million at the end of 2023 to $54.7 million at the end of 1Q24, representing 7% of total deposits.
  • The cost of deposits increased to 3.04% for 1Q24, up from 2.84% for 4Q23 and 1.52% for 1Q23.
  • Net interest margin contracted to 2.91% in 1Q24 compared to 3.45% in 1Q23. This was driven by an increase in the total cost of funds, including borrowings, from 1.65% in 1Q23 to 3.13% in 1Q24.
  • Gains on the sale of mortgages were $1.2 million for 1Q24, increasing from $1.0 million in 1Q23 and $0.8 million in 4Q23.
  • Mortgage banking revenue continues to be adversely impacted by higher-for-longer interest rates and limited home inventories. The mortgage pipeline increased to $17.4 million from $9.2 million in the linked quarter and is up from $10.0 million on March 31, 2023.
  • A first-quarter cash dividend of eight cents per common share was declared on April 18, 2024, and is payable on May 13, 2024, to shareholders of record at the close of business on May 3, 2024.
  • Net interest income decreased $0.6 million in 1Q24 from 1Q23, or 9%, driven by rising funding costs.
  • Other expense decreased by 7%, from $6.3 million in 1Q23 to $5.8 million in 1Q24, primarily due to the expense reduction from the strategic realignment completed in 2023.
  • The 1Q24 credit loss provision was $132 thousand.

Credit Quality and Capital Insights:

  • Nonaccrual loans decreased from $4.0 million in 4Q23 to $3.8 million in the current quarter. The transfer of $0.6 million of nonaccrual loans into Other Real Estate Owned/repossessed assets in 1Q24 offset the addition of several small residential mortgage, consumer, and commercial loans into nonaccrual status during the quarter.
  • The company reported no net charge-offs in 1Q24.
  • Non-performing assets to total assets increased from 0.47% in the linked quarter to 0.53% in the current quarter.
  • Delinquencies greater than 30 days were 0.85% of total loans as of March 31, 2024, up from 0.70% as of December 31, 2023, and 0.49% as of March 31, 2023.
  • The company's ACL ratio was 0.57% as of March 31, 2024, compared to 0.56% as of December 31, 2023, and 0.52% as of March 31, 2023.
  • Traditions Bancorp and Traditions Bank remain well capitalized.

FINANCIAL HIGHLIGHTS (unaudited):
(Dollars in thousands, except per share data)





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.

 

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SOURCE Traditions Bancorp, Inc.

FAQ

What was Traditions Bancorp, Inc.'s net income for the first quarter of 2024?

Traditions Bancorp, Inc. reported a net income of $1.4 million for the first quarter of 2024.

What were the earnings per share for Traditions Bancorp, Inc. in Q1 2024?

Earnings per share were 49 cents for Traditions Bancorp, Inc. in Q1 2024.

How did loans and deposits perform for Traditions Bancorp, Inc. in Q1 2024?

Loan growth was intentionally slowed to stem margin compression, and deposits increased by $22.1 million over the previous 12 months for Traditions Bancorp, Inc. in Q1 2024.

What challenges did Traditions Bancorp, Inc. face in Q1 2024?

Traditions Bancorp, Inc. faced challenges with rising funding costs and interest rates in Q1 2024.

What key financial data was highlighted for Traditions Bancorp, Inc. in Q1 2024?

Key financial data for Traditions Bancorp, Inc. in Q1 2024 included a decrease in net interest income, an increase in other expenses, and a credit loss provision of $132 thousand.

How did nonaccrual loans and non-performing assets change for Traditions Bancorp, Inc. in Q1 2024?

Nonaccrual loans decreased, while non-performing assets increased slightly for Traditions Bancorp, Inc. in Q1 2024.

Is Traditions Bancorp, Inc. well capitalized?

Traditions Bancorp and Traditions Bank remain well capitalized.

Traditions Bancorp, Inc.

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