blueharbor bank Reports Third Quarter 2023 Net Income

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BLHK - blueharbor bank Reports 16% Decrease in Q3 2023 Net Income, Despite Positive Asset Growth

Positive

• Net income for Q3 2023 decreased by 16% to $1,667,570 compared to Q3 2022. However, total assets increased by 6% to $428.9 million, gross loans increased by 7%, and total deposits increased by 5%. Shareholders' equity also saw a significant increase of 17% to $47.0 million. The bank's asset quality remained strong, with total non-performing assets representing only 0.01% of total assets at September 30, 2023.

Negative

• None.

MOORESVILLE, N.C., Oct. 31, 2023 /PRNewswire/ -- blueharbor bank (the "Bank") today reported net income of $1,667,570 and $0.55 per diluted share for the third quarter of 2023, a decrease of 16% or $324,871 as compared to $1,992,441 and $0.66 per diluted share for the third quarter of 2022.  For the nine months ended September 30, 2023, the Bank reported net income of $5,649,191 and $1.85 per diluted share, an increase of 16% or $792,026 as compared to $4,857,165 and $1.60 per diluted share for the same nine months in 2022.

The Bank reported total assets of $428.9 million at September 30, 2023, an increase of $22.5 million, or 6%, when compared to $406.4 million at December 31, 2022, and an increase of $10.3 million, or 2%, when compared to September 30, 2022. Gross loans increased $10.1 million, to $345.6 million at September 30, 2023, from $335.5 million at December 31, 2022. When compared to September 30, 2022, gross loans increased $21.8 million, or 7%. Total deposits were $376.6 million at September 30, 2023, an increase of $17.1 million, or 5%, when compared to $359.5 million at December 31, 2022, and an increase of $2.8 million, or 1% when compared to September 30, 2022. Total shareholders' equity was $47.0 million at September 30, 2023, an increase of $4.5 million, or 11%, when compared to $42.5 million at December 31, 2022, and an increase of $6.7 million or 17%, when compared to September 30, 2022. Net income was the main contributing factor for this increase but was offset partially by the bank's repurchase of $879,000 of common stock reducing the number of shares outstanding by 45,220 during the first three quarters of 2023.  

Asset quality remained very strong with total non-performing assets representing only 0.01% of total assets at September 30, 2023. This ratio is down one basis point from the ratio reported December 31, 2022.

Capital levels also remained very solid at the end of the third quarter with total risk-based capital at 15.3%, both common equity tier 1 and tier 1 to risk-weighted assets of 14.3%, and tier 1 leverage ratio of 12.1%.

Net interest income was $3,769,153 for the quarter ending September 30, 2023, a decrease of $75,237, or 2%, from the same period in 2022 and was due to an increase in cost of funds. Although cost of funds increased significantly, the Bank's net interest margin was 3.77% at September 30, 2023, only dropping 14 basis points from September 30, 2022.

For the quarter ending September 30, 2023, $71,342 in provision for loan losses was recorded, and no provision for loan losses was recorded in the quarter ended September 30, 2022.  The allowance for loan losses to total loans was 0.96% at September 30, 2023.

Noninterest income was $671,331 for the quarter ended September 30, 2023, a slight decrease of $6,353 under $677,684 that was recorded for the quarter ended September 30, 2022.

Noninterest expense was $2,226,234 for the quarter ended September 30, 2023, compared to $1,957,963 for the quarter ended September 30, 2022. The increase of $268,271 was due to several factors as follows:

• Increase in data processing fees due to a greater number of customers and accounts.
• Professional fees paid for the Current Expected Credit Loss (CECL) model review and for core contract consulting.
• Increase in regulatory fees due to higher FDIC assessment rates.
• Increase in the reserve for unfunded commitments. This is a reserve that was created with the adoption of the CECL accounting standard in January 2023. In the third quarter of 2023, there was a larger increase in this fund due to increase in construction and other lines of credits originated during the quarter.

Jim Marshall, President and Chief Executive Officer, commented, "We continue to be pleased with our performance through the third quarter of 2023. We may be nearing the end of historic rate increases by the Federal Reserve that have negatively impacted our cost of funds and our net interest margin. As new loans are priced our net interest margin should continue to stabilize and improve.

"Our credit quality continues to be a bright spot for us led by a stellar low past due loan percentage of zero most quarters. We did take advantage of stock repurchase opportunities recently that we feel was a good use of capital given our slower than normal loan growth and high capital levels. We do have several commercial and consumer construction lines of credit that should start to fund in the next quarter and boast our outstanding loan volumes."

blueharbor bank is headquartered in Mooresville with a branch in Statesville and loan production offices in Belmont and Morehead City.  blueharbor bank's website is www.blueharborbank.com and our common stock is quoted on the OTCQX Market under the symbol "BLHK."

Summary Selected Financial Data Schedule attached below.

Forward-Looking Statement:

This press release contains forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "intends," "should," "will," variations of such words and similar expressions are intended to identify forward-looking statements. These statements reflect management's current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. As such, actual results and outcomes may materially differ from what may be expressed or forecast in such forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit levels, loan demand and asset quality, including real estate and other collateral values; changes in banking regulations and accounting principles, policies or guidelines; and the impact of competition from traditional or new sources. These and other factors that may emerge could cause decisions and actual results to differ materially from current expectations. blueharbor bank takes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this press release.

 

Summary Selected Financial Data
	(Unaudited)		(Audited)		(Unaudited)
	September 30,		December 31,		September 30,
Balance Sheet Data:	2023		2022		2022
Total Assets	$         428,920,778		$         406,356,659		$         418,577,683
Total Gross Loans	345,591,068		335,496,493		323,819,194
Allowance for Loan Losses	3,308,547		3,171,448		3,061,110
Total Deposits	376,568,658		359,486,348		373,814,510
Total Shareholders' Equity	46,997,856		42,490,336		40,313,648
	(Unaudited)				(Unaudited)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Earnings and Per Share Data:	2023		2022		2023		2022
Interest Income	$              5,180,789		$              3,974,576		$           14,694,867		$           10,493,661
Interest Expense	1,411,636		130,186		2,976,499		389,834
Net Interest Income	3,769,153		3,844,390		11,718,368		10,103,827
Provision for Loan Losses	71,342		-		120,479		173,357
Net Interest Income after
Provision for Loan Losses	3,697,811		3,844,390		11,597,889		9,930,470
Noninterest Income	671,331		677,684		2,069,642		2,082,015
Noninterest Expense	2,226,234		1,957,963		6,400,946		5,765,340
Net Income before Taxes	2,142,908		2,564,111		7,266,585		6,247,145
Income Taxes	475,338		571,670		1,617,394		1,389,980
Net Income	$              1,667,570		$              1,992,441		$              5,649,191		$              4,857,165
Basic Income per Share	$                        0.57		$                        0.68		$                        1.93		$                        1.67
Diluted Income per Share	$                        0.55		$                        0.66		$                        1.85		$                        1.60
Annualized Performance Ratios:
Return on average assets	1.57 %		1.90 %		1.82 %		1.52 %
Return on average equity	13.93 %		19.46 %		16.48 %		16.17 %
Efficiency ratio	50.1 %		43.3 %		46.4 %		47.3 %
Overhead ratio	41.3 %		33.3 %		37.0 %		36.5 %
Net Interest Margin	3.77 %		3.91 %		4.02 %		3.37 %
Cost of Funds	2.26 %		0.21 %		1.67 %		0.20 %
	(Unaudited)		(Unaudited)
	September 30,		September 30,
	2023		2022
Financial Ratios:
Book Value	$                      16.07		$                      13.75
Nonperforming Assets to Total Assets Ratio	0.01 %		0.02 %
Loan to Deposit Ratio	91.8 %		93.3 %
Tier 1 Leverage Ratio	12.1 %		10.6 %
Common Equity Tier 1 Risk-Based Capital Ratio	14.3 %		13.0 %
Tier 1 Risk-Based Capital Ratio	14.3 %		13.0 %
Total Risk-Based Capital Ratio	15.3 %		13.9 %

 

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SOURCE blueharbor bank

FAQ

What is blueharbor bank's net income for Q3 2023?

blueharbor bank reported a net income of $1,667,570 for the third quarter of 2023.

What is the total asset growth for blueharbor bank in Q3 2023?

Total assets increased by 6% to $428.9 million at September 30, 2023, compared to December 31, 2022.

What is the symbol for blueharbor bank's common stock?

blueharbor bank's common stock is quoted on the OTCQX Market under the symbol 'BLHK'.