Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2024
Bogota Financial Corp. (NASDAQ: BSBK) reported a net loss of $432,000 for Q2 2024, compared to net income of $857,000 in Q2 2023. For the first half of 2024, the company reported a net loss of $873,000, down from net income of $1.8 million in the same period last year. The decrease was primarily due to a $1.5 million decrease in net interest income.
Key financial highlights include:
- Total assets increased 3.8% to $974.7 million
- Net loans decreased 1.0% to $707.6 million
- Total deposits increased 3.8% to $649.1 million
- Federal Home Loan Bank advances increased 7.0% to $179.4 million
The company's net interest margin decreased 75 basis points to 1.21% for Q2 2024. Bogota Financial Corp. also continued its stock repurchase program, buying back 107,323 shares at a cost of $735,000 during the quarter.
Bogota Financial Corp. (NASDAQ: BSBK) ha riportato una perdita netta di 432.000 dollari per il secondo trimestre del 2024, rispetto a un utile netto di 857.000 dollari nel secondo trimestre del 2023. Per il primo semestre del 2024, l'azienda ha riportato una perdita netta di 873.000 dollari, in calo rispetto a un utile netto di 1,8 milioni di dollari nello stesso periodo dello scorso anno. La diminuzione è stata principalmente dovuta a una riduzione di 1,5 milioni di dollari nei ricavi netti da interessi.
I principali risultati finanziari includono:
- Il totale delle attività è aumentato del 3,8% a 974,7 milioni di dollari
- I prestiti netti sono diminuiti dell'1,0% a 707,6 milioni di dollari
- Il totale dei depositi è aumentato del 3,8% a 649,1 milioni di dollari
- Le anticipazioni della Federal Home Loan Bank sono aumentate del 7,0% a 179,4 milioni di dollari
Il margine di interesse netto dell'azienda è diminuito di 75 punti base a 1,21% per il secondo trimestre del 2024. Bogota Financial Corp. ha anche proseguito il suo programma di riacquisto di azioni, riacquistando 107.323 azioni per un costo di 735.000 dollari durante il trimestre.
Bogota Financial Corp. (NASDAQ: BSBK) reportó una pérdida neta de 432,000 dólares para el segundo trimestre de 2024, en comparación con una ganancia neta de 857,000 dólares en el segundo trimestre de 2023. Para la primera mitad de 2024, la empresa reportó una pérdida neta de 873,000 dólares, en comparación con una ganancia neta de 1.8 millones de dólares en el mismo periodo del año anterior. La disminución se debió principalmente a una reducción de 1.5 millones de dólares en los ingresos netos por intereses.
Los aspectos financieros clave incluyen:
- Los activos totales aumentaron un 3.8% a 974.7 millones de dólares
- Los préstamos netos disminuyeron un 1.0% a 707.6 millones de dólares
- Los depósitos totales aumentaron un 3.8% a 649.1 millones de dólares
- Los anticipos del Federal Home Loan Bank aumentaron un 7.0% a 179.4 millones de dólares
El margen de interés neto de la empresa disminuyó 75 puntos base a 1.21% para el segundo trimestre de 2024. Bogota Financial Corp. también continuó su programa de recompra de acciones, recomprando 107,323 acciones por un costo de 735,000 dólares durante el trimestre.
보고타 금융 주식회사 (NASDAQ: BSBK)는 2024년 2분기에 43만 2천 달러의 순손실을 보고했으며, 이는 2023년 2분기 85만 7천 달러의 순익과 비교됩니다. 2024년 상반기 동안 회사는 87만 3천 달러의 순손실을 기록했으며, 이는 지난해 같은 기간의 순익 180만 달러에서 감소한 수치입니다. 이 감소는 주로 150만 달러의 순이자수익 감소 때문입니다.
주요 재무 하이라이트는 다음과 같습니다:
- 총 자산이 3.8% 증가하여 9억 7470만 달러가 되었습니다
- 순대출이 1.0% 감소하여 7억 760만 달러가 되었습니다
- 총 예금이 3.8% 증가하여 6억 4910만 달러가 되었습니다
- 연방 주택 대출 은행의 선급금이 7.0% 증가하여 1억 7940만 달러가 되었습니다
회사의 순이자 마진은 2024년 2분기에 75베이시스 포인트 감소하여 1.21%가 되었습니다. 또한 보고타 금융 주식회사는 분기 동안 73만 5천 달러의 비용으로 107,323주를 다시 사들이는 자사주매입 프로그램을 계속 진행했습니다.
Bogota Financial Corp. (NASDAQ: BSBK) a annoncé une perte nette de 432 000 dollars pour le deuxième trimestre 2024, comparé à un bénéfice net de 857 000 dollars pour le deuxième trimestre 2023. Pour le premier semestre 2024, la société a déclaré une perte nette de 873 000 dollars, en baisse par rapport à un bénéfice net de 1,8 million de dollars pour la même période de l'année dernière. La diminution est principalement due à une baisse de 1,5 million de dollars des revenus nets d'intérêts.
Les principaux faits financiers comprennent :
- Les actifs totaux ont augmenté de 3,8 % pour atteindre 974,7 millions de dollars
- Les prêts nets ont diminué de 1,0 % pour s'élever à 707,6 millions de dollars
- Les dépôts totaux ont augmenté de 3,8 % pour atteindre 649,1 millions de dollars
- Les avances de la Federal Home Loan Bank ont augmenté de 7,0 % pour atteindre 179,4 millions de dollars
La marge d'intérêt nette de l'entreprise a diminué de 75 points de base pour s'établir à 1,21 % pour le deuxième trimestre 2024. Bogota Financial Corp. a également poursuivi son programme de rachat d'actions, rachetant 107 323 actions pour un coût de 735 000 dollars durant le trimestre.
Bogota Financial Corp. (NASDAQ: BSBK) berichtete für das 2. Quartal 2024 von einem Nettoverlust von 432.000 Dollar, im Vergleich zu einem Nettogewinn von 857.000 Dollar im 2. Quartal 2023. Für die erste Jahreshälfte 2024 meldete das Unternehmen einen Nettoverlust von 873.000 Dollar, im Vergleich zu einem Nettogewinn von 1,8 Millionen Dollar im gleichen Zeitraum des Vorjahres. Der Rückgang war hauptsächlich auf einen Rückgang der Zinserträge um 1,5 Millionen Dollar zurückzuführen.
Wichtige finanzielle Höhepunkte sind:
- Gesamte Vermögenswerte stiegen um 3,8 % auf 974,7 Millionen Dollar
- Netto-Kredite sanken um 1,0 % auf 707,6 Millionen Dollar
- Gesamteinlagen stiegen um 3,8 % auf 649,1 Millionen Dollar
- Vorschüsse der Federal Home Loan Bank stiegen um 7,0 % auf 179,4 Millionen Dollar
Die Nettozinsmarge des Unternehmens sank im 2. Quartal 2024 um 75 Basispunkte auf 1,21 %. Bogota Financial Corp. setzte auch sein Aktienrückkaufprogramm fort und kaufte im Quartal 107.323 Aktien zu einem Preis von 735.000 Dollar zurück.
- Total assets increased 3.8% to $974.7 million
- Total deposits increased 3.8% to $649.1 million
- Securities increased 32.8% to $187.9 million
- The company continued its stock repurchase program, buying back 107,323 shares
- Net loss of $432,000 for Q2 2024, compared to net income of $857,000 in Q2 2023
- Net loss of $873,000 for the first half of 2024, down from net income of $1.8 million in the same period last year
- Net interest income decreased $1.6 million, or 36.1%, to $2.7 million for Q2 2024
- Net interest margin decreased 75 basis points to 1.21% for Q2 2024
- Net loans decreased 1.0% to $707.6 million
Insights
Bogota Financial Corp.'s Q2 2024 results reveal significant challenges, with a net loss of
Key points to consider:
- Net Interest Margin Compression: The net interest margin decreased by 75 basis points to
1.21% , indicating severe pressure on the bank's core earnings. - Deposit Costs: The average rate on deposits increased by 145 basis points to
3.91% , significantly outpacing the yield increase on earning assets. - Loan Portfolio: Net loans decreased by
1.0% , suggesting challenges in loan growth amid the high-rate environment. - Securities Portfolio: A notable
32.8% increase in securities to$187.9 million , potentially as a strategy to manage excess liquidity and improve yields. - Credit Quality: Despite the earnings pressure, credit quality remains stable with no charge-offs reported.
The bank's strategy of increasing its securities portfolio and managing interest rate risk through cash flow hedges is prudent, but the significant margin compression is concerning. The continuation of this trend could lead to sustained profitability challenges in the near term.
Bogota Financial Corp.'s Q2 2024 results highlight the broader challenges facing the banking industry in the current high-rate environment. The bank's performance reflects several industry-wide trends:
- Deposit Competition: The
3.8% increase in total deposits, primarily in higher-cost CDs, underscores the intense competition for deposits among banks. - Liquidity Management: The reduction in cash and cash equivalents by
29.4% to$17.6 million indicates a shift towards higher-yielding assets, a common strategy in the industry. - Interest Rate Risk: The use of
$115.0 million in cash flow hedges demonstrates proactive interest rate risk management, which is important in the current volatile rate environment. - Capital Management: The continuation of the stock repurchase program, with 107,323 shares repurchased, shows a commitment to enhancing shareholder value despite earnings pressure.
While the bank's strategy aligns with industry practices, the significant margin compression and shift to a net loss position are concerning. The bank's ability to navigate the challenging interest rate environment and potentially capitalize on future rate cuts will be important for its performance in the coming quarters.
TEANECK, N.J., July 31, 2024 (GLOBE NEWSWIRE) -- Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported a net loss for the three months ended June 30, 2024 of
On April 24, 2024, the Company announced it had received regulatory approval for the repurchase of up to 237,090 shares of its common stock, approximately
Other Financial Highlights:
| ● | Total assets increased | |
| ● | Cash and cash equivalents decreased | |
| ● | Securities increased | |
| ● | Net loans decreased | |
| ● | Total deposits at June 30, 2024 were | |
| ● | Federal Home Loan Bank advances increased | |
Kevin Pace, President and Chief Executive Officer, said “We have seen growth in our commercial lending portfolio and deposits. Our credit quality has remained strong through this growth as we continue to be prudent lenders. We remain focused on executing our strategic plan to deliver value to our shareholders and customers. Growth is a key component in our plan as we look to expand our services and technology offerings to attract new customers.”
“The Bank completed its third stock repurchase program earlier this year and promptly began its fourth buyback. We remain diligent in our efforts to show confidence in our value."
Income Statement Analysis
Comparison of Operating Results for the Three Months Ended June 30, 2024 and June 30, 2023
Net income decreased by
Interest income increased
Interest income on cash and cash equivalents decreased
Interest income on loans increased
Interest income on securities increased
Interest expense increased
Interest expense on interest-bearing deposits increased
Interest expense on Federal Home Loan Bank advances increased
Net interest income decreased
We recorded a
Non-interest income increased by
For the three months ended June 30, 2024, non-interest expense increased
Income tax expense decreased
Comparison of Operating Results for the Six Months Ended June 30, 2024 and June 30, 2023
Net income decreased by
Interest income increased
Interest income on cash and cash equivalents increased
Interest income on loans increased
Interest income on securities increased
Interest expense increased
Interest expense on interest-bearing deposits increased
Interest expense on Federal Home Loan Bank advances increased
Net interest income decreased
We recorded a
Non-interest income increased by
For the six months ended June 30, 2024, non-interest expense increased
Income tax expense decreased
Balance Sheet Analysis
Total assets were
Delinquent loans increased
Total liabilities increased
Total stockholders’ equity decreased
About Bogota Financial Corp.
Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from seven offices located in Bogota, Hasbrouck Heights, Upper Saddle River, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and operates a loan production office in Spring Lake, New Jersey.
Forward-Looking Statements
This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; the availability of low-cost funding; our continued reliance on brokered and municipal deposits; demand for loans in our market area; changes in the quality of our loan and security portfolios, economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.
The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
| BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) | ||||||||
| As of | As of | |||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 8,271,970 | $ | 13,567,115 | ||||
| Interest-bearing deposits in other banks | 9,319,571 | 11,362,356 | ||||||
| Cash and cash equivalents | 17,591,541 | 24,929,471 | ||||||
| Securities available for sale, at fair value | 106,861,767 | 68,888,179 | ||||||
| Securities held to maturity, net of allowance for securities credit losses of | 81,065,793 | 72,656,179 | ||||||
| Loans, net of allowance for credit losses of | 707,645,118 | 714,688,635 | ||||||
| Premises and equipment, net | 7,938,263 | 7,687,387 | ||||||
| Federal Home Loan Bank (FHLB) stock and other restricted securities | 9,141,200 | 8,616,100 | ||||||
| Accrued interest receivable | 4,230,702 | 3,932,785 | ||||||
| Core deposit intangibles | 178,513 | 206,116 | ||||||
| Bank-owned life insurance | 31,414,865 | 30,987,851 | ||||||
| Other assets | 8,681,855 | 6,731,500 | ||||||
| Total Assets | $ | 974,749,617 | $ | 939,324,203 | ||||
| Liabilities and Equity | ||||||||
| Non-interest bearing deposits | $ | 33,345,648 | $ | 30,554,842 | ||||
| Interest bearing deposits | 615,774,225 | 594,792,300 | ||||||
| Total deposits | 649,119,873 | 625,347,142 | ||||||
| FHLB advances-short term | 60,000,000 | 37,500,000 | ||||||
| FHLB advances-long term | 119,449,102 | 130,189,663 | ||||||
| Advance payments by borrowers for taxes and insurance | 3,238,297 | 2,733,709 | ||||||
| Other liabilities | 6,598,699 | 6,380,486 | ||||||
| Total liabilities | 838,405,971 | 802,151,000 | ||||||
| Stockholders’ Equity | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 131,388 | 132,792 | ||||||
| Additional paid-in capital | 55,561,684 | 56,149,915 | ||||||
| Retained earnings | 91,303,609 | 92,177,068 | ||||||
| Unearned ESOP shares (396,415 shares at June 30, 2024 and 409,750 shares at December 31, 2023) | (4,671,196 | ) | (4,821,798 | ) | ||||
| Accumulated other comprehensive loss | (5,981,839 | ) | (6,464,774 | ) | ||||
| Total stockholders’ equity | 136,343,646 | 137,173,203 | ||||||
| Total liabilities and stockholders’ equity | $ | 974,749,617 | $ | 939,324,203 | ||||
| BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Interest income | ||||||||||||||||
| Loans, including fees | $ | 8,299,404 | $ | 8,141,719 | $ | 16,506,796 | $ | 15,841,157 | ||||||||
| Securities | ||||||||||||||||
| Taxable | 1,846,717 | 996,338 | 3,363,060 | 2,047,598 | ||||||||||||
| Tax-exempt | 13,124 | 20,232 | 26,272 | 65,134 | ||||||||||||
| Other interest-earning assets | 314,964 | 248,914 | 639,268 | 470,503 | ||||||||||||
| Total interest income | 10,474,209 | 9,407,203 | 20,535,396 | 18,424,392 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 6,253,895 | 4,210,984 | 12,223,776 | 7,925,981 | ||||||||||||
| FHLB advances | 1,476,600 | 902,839 | 2,916,669 | 1,680,193 | ||||||||||||
| Total interest expense | 7,730,495 | 5,113,823 | 15,140,445 | 9,606,174 | ||||||||||||
| Net interest income | 2,743,714 | 4,293,380 | 5,394,951 | 8,818,218 | ||||||||||||
| Provision (recovery) for credit losses | 35,000 | (125,000 | ) | 70,000 | (125,000 | ) | ||||||||||
| Net interest income after provision (recovery) for credit losses | 2,708,714 | 4,418,380 | 5,324,951 | 8,943,218 | ||||||||||||
| Non-interest income | ||||||||||||||||
| Fees and service charges | 49,203 | 45,700 | 107,790 | 97,852 | ||||||||||||
| Gain on sale of loans | — | 16,150 | — | 29,375 | ||||||||||||
| Bank-owned life insurance | 215,056 | 190,147 | 427,015 | 376,200 | ||||||||||||
| Other | 38,945 | 31,479 | 67,477 | 63,328 | ||||||||||||
| Total non-interest income | 303,204 | 283,476 | 602,282 | 566,755 | ||||||||||||
| Non-interest expense | ||||||||||||||||
| Salaries and employee benefits | 2,143,388 | 2,301,236 | 4,301,953 | 4,463,605 | ||||||||||||
| Occupancy and equipment | 366,908 | 358,757 | 738,025 | 741,544 | ||||||||||||
| FDIC insurance assessment | 106,716 | 127,119 | 207,313 | 187,119 | ||||||||||||
| Data processing | 318,520 | 235,095 | 622,125 | 512,192 | ||||||||||||
| Advertising | 115,100 | 96,083 | 225,200 | 243,383 | ||||||||||||
| Director fees | 151,549 | 159,338 | 307,249 | 318,675 | ||||||||||||
| Professional fees | 260,112 | 114,018 | 456,897 | 263,268 | ||||||||||||
| Other | 263,490 | 240,562 | 510,112 | 419,770 | ||||||||||||
| Total non-interest expense | 3,725,783 | 3,632,208 | 7,368,874 | 7,149,556 | ||||||||||||
| (Loss) income before income taxes | (713,865 | ) | 1,069,648 | (1,441,641 | ) | 2,360,417 | ||||||||||
| Income tax (benefit) expense | (281,386 | ) | 213,007 | (568,182 | ) | 511,069 | ||||||||||
| Net (loss) income | $ | (432,479 | ) | $ | 856,641 | $ | (873,459 | ) | $ | 1,849,348 | ||||||
| (Loss) earnings per Share - basic | $ | (0.03 | ) | $ | 0.07 | $ | (0.07 | ) | $ | 0.14 | ||||||
| (Loss) earnings per Share - diluted | $ | (0.03 | ) | $ | 0.07 | $ | (0.07 | ) | $ | 0.14 | ||||||
| Weighted average shares outstanding - basic | 12,803,925 | 13,079,302 | 12,828,428 | 13,137,522 | ||||||||||||
| Weighted average shares outstanding - diluted | 12,803,925 | 13,081,158 | 12,828,428 | 13,162,056 | ||||||||||||
| BOGOTA FINANCIAL CORP. SELECTED RATIOS (unaudited) | ||||||||||||||||
| At or For the Three Months | At or for the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Performance Ratios (1): | ||||||||||||||||
| (Loss) return on average assets (2) | (0.18 | )% | 0.37 | % | (0.18 | )% | 0.40 | % | ||||||||
| (Loss) return on average equity (3) | (1.32 | )% | 2.46 | % | (1.32 | )% | 2.68 | % | ||||||||
| Interest rate spread (4) | 0.76 | % | 1.57 | % | 0.68 | % | 1.61 | % | ||||||||
| Net interest margin (5) | 1.24 | % | 1.96 | % | 1.20 | % | 2.01 | % | ||||||||
| Efficiency ratio (6) | 122.28 | % | 79.36 | % | 122.87 | % | 76.18 | % | ||||||||
| Average interest-earning assets to average interest-bearing liabilities | 114.12 | % | 116.72 | % | 114.56 | % | 117.09 | % | ||||||||
| Net loans to deposits | 106.74 | % | 107.52 | % | 113.07 | % | 107.52 | % | ||||||||
| Average equity to average assets (7) | 13.48 | % | 14.94 | % | 14.71 | % | 14.82 | % | ||||||||
| Capital Ratios: | ||||||||||||||||
| Tier 1 capital to average assets | 13.52 | % | 15.96 | % | ||||||||||||
| Asset Quality Ratios: | ||||||||||||||||
| Allowance for credit losses as a percent of total loans | 0.39 | % | 0.39 | % | ||||||||||||
| Allowance for credit losses as a percent of non-performing loans | 21.20 | % | 21.04 | % | ||||||||||||
| Net charge-offs to average outstanding loans during the period | 0.00 | % | 0.00 | % | ||||||||||||
| Non-performing loans as a percent of total loans | 1.82 | % | 1.87 | % | ||||||||||||
| Non-performing assets as a percent of total assets | 1.33 | % | 1.42 | % | ||||||||||||
| (1 | ) | Certain performance ratios for the three and six months ended June 30, 2024 and 2023 are annualized. |
| (2 | ) | Represents net (loss) income divided by average total assets. |
| (3 | ) | Represents net (loss) income divided by average stockholders’ equity. |
| (4 | ) | Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of |
| (5 | ) | Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of |
| (6 | ) | Represents non-interest expenses divided by the sum of net interest income and non-interest income. |
| (7 | ) | Represents average stockholders’ equity divided by average total assets. |
LOANS
Loans are summarized as follows at June 30, 2024 and December 31, 2023:
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| Real estate: | ||||||||
| Residential First Mortgage | $ | 475,726,924 | $ | 486,052,422 | ||||
| Commercial Real Estate | 110,832,807 | 99,830,514 | ||||||
| Multi-Family Real Estate | 75,230,316 | 75,612,566 | ||||||
| Construction | 38,492,041 | 49,302,040 | ||||||
| Commercial and Industrial | 10,067,071 | 6,658,370 | ||||||
| Consumer | 43,909 | 18,672 | ||||||
| Total loans | 710,393,068 | 717,474,584 | ||||||
| Allowance for credit losses | (2,747,950 | ) | (2,785,949 | ) | ||||
| Net loans | $ | 707,645,118 | $ | 714,688,635 | ||||
The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated (unaudited).
| At June 30, | At December 31, | |||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Amount | Percent | Average Rate | Amount | Percent | Average Rate | |||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| Noninterest bearing demand accounts | $ | 33,345,648 | 5.14 | % | — | % | $ | 30,555,546 | 4.89 | % | — | % | ||||||||||||
| NOW accounts | 44,855,584 | 6.91 | % | 2.29 | 41,320,723 | 6.61 | % | 1.90 | ||||||||||||||||
| Money market accounts | 12,619,901 | 1.94 | % | 0.29 | 14,641,000 | 2.34 | % | 0.30 | ||||||||||||||||
| Savings accounts | 45,698,159 | 7.04 | % | 1.81 | 45,554,964 | 7.28 | % | 1.76 | ||||||||||||||||
| Certificates of deposit | 512,600,581 | 78.97 | % | 4.38 | 493,274,767 | 78.88 | % | 4.00 | ||||||||||||||||
| Total | $ | 649,119,873 | 100.00 | % | 3.75 | % | $ | 625,347,000 | 100.00 | % | 3.42 | % | ||||||||||||
Average Balance Sheets and Related Yields and Rates
The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.
| Three Months Ended June 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Average Balance | Interest and Dividends | Yield/ Cost | Average Balance | Interest and Dividends | Yield/ Cost | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Assets: | (unaudited) | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 8,644 | $ | 127 | 5.90 | % | $ | 12,449 | $ | 149 | 4.80 | % | ||||||||||||
| Loans | 710,058 | 8,299 | 4.70 | % | 712,201 | 8,142 | 4.59 | % | ||||||||||||||||
| Securities | 185,497 | 1,860 | 4.01 | % | 146,225 | 1,017 | 2.78 | % | ||||||||||||||||
| Other interest-earning assets | 8,689 | 188 | 8.66 | % | 6,358 | 99 | 6.26 | % | ||||||||||||||||
| Total interest-earning assets | 912,888 | 10,474 | 4.61 | % | 877,233 | 9,407 | 4.30 | % | ||||||||||||||||
| Non-interest-earning assets | 58,933 | 54,156 | ||||||||||||||||||||||
| Total assets | $ | 971,821 | $ | 931,389 | ||||||||||||||||||||
| Liabilities and equity: | ||||||||||||||||||||||||
| NOW and money market accounts | $ | 67,687 | $ | 329 | 1.96 | % | $ | 88,256 | $ | 355 | 1.61 | % | ||||||||||||
| Savings accounts | 44,093 | 205 | 1.87 | % | 48,875 | 92 | 0.75 | % | ||||||||||||||||
| Certificates of deposit (1) | 517,882 | 5,720 | 4.44 | % | 493,986 | 3,764 | 3.06 | % | ||||||||||||||||
| Total interest-bearing deposits | 629,662 | 6,254 | 3.99 | % | 631,117 | 4,211 | 2.68 | % | ||||||||||||||||
| Federal Home Loan Bank advances (1) | 170,295 | 1,476 | 3.49 | % | 120,485 | 903 | 3.01 | % | ||||||||||||||||
| Total interest-bearing liabilities | 799,957 | 7,730 | 3.89 | % | 751,602 | 5,114 | 2.73 | % | ||||||||||||||||
| Non-interest-bearing deposits | 39,162 | 38,841 | ||||||||||||||||||||||
| Other non-interest-bearing liabilities | 1,654 | 1,768 | ||||||||||||||||||||||
| Total liabilities | 840,773 | 792,211 | ||||||||||||||||||||||
| Total equity | 131,048 | 139,178 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 971,821 | $ | 931,389 | ||||||||||||||||||||
| Net interest income | $ | 2,744 | $ | 4,293 | ||||||||||||||||||||
| Interest rate spread (2) | 0.72 | % | 1.57 | % | ||||||||||||||||||||
| Net interest margin (3) | 1.21 | % | 1.96 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 114.12 | % | 116.72 | % | ||||||||||||||||||||
| 1. | Cash flow hedges are used to manage interest rate risk. During the three months ended June 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of |
| 2. | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
| 3. | Net interest margin represents net interest income divided by average total interest-earning assets. |
| Six Months Ended June 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Average Balance | Interest and Dividends | Yield/ Cost | Average Balance | Interest and Dividends | Yield/ Cost | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 8,505 | $ | 276 | 6.50 | % | $ | 10,634 | $ | 254 | 4.82 | % | ||||||||||||
| Loans | 711,744 | 16,507 | 4.64 | % | 715,066 | 15,841 | 4.45 | % | ||||||||||||||||
| Securities | 176,081 | 3,389 | 3.85 | % | 154,049 | 2,113 | 2.74 | % | ||||||||||||||||
| Other interest-earning assets | 8,395 | 363 | 8.65 | % | 5,851 | 216 | 7.40 | % | ||||||||||||||||
| Total interest-earning assets | 904,725 | 20,535 | 4.54 | % | 885,600 | 18,424 | 4.18 | % | ||||||||||||||||
| Non-interest-earning assets | 59,313 | 54,482 | ||||||||||||||||||||||
| Total assets | $ | 964,038 | $ | 940,082 | ||||||||||||||||||||
| Liabilities and equity: | ||||||||||||||||||||||||
| NOW and money market accounts | $ | 68,569 | $ | 664 | 1.95 | % | $ | 100,419 | $ | 735 | 1.48 | % | ||||||||||||
| Savings accounts | 43,720 | 403 | 1.85 | % | 51,233 | 162 | 0.64 | % | ||||||||||||||||
| Certificates of deposit (1) | 517,189 | 11,157 | 4.34 | % | 498,652 | 7,029 | 2.84 | % | ||||||||||||||||
| Total interest-bearing deposits | 629,478 | 12,224 | 3.91 | % | 650,304 | 7,926 | 2.46 | % | ||||||||||||||||
| Federal Home Loan Bank advances (1) | 160,282 | 2,916 | 3.66 | % | 106,061 | 1,680 | 3.19 | % | ||||||||||||||||
| Total interest-bearing liabilities | 789,760 | 15,140 | 3.86 | % | 756,365 | 9,606 | 2.56 | % | ||||||||||||||||
| Non-interest-bearing deposits | 38,425 | 38,266 | ||||||||||||||||||||||
| Other non-interest-bearing liabilities | 2,763 | 6,146 | ||||||||||||||||||||||
| Total liabilities | 830,948 | 800,777 | ||||||||||||||||||||||
| Total equity | 133,090 | 139,305 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 964,038 | $ | 940,082 | ||||||||||||||||||||
| Net interest income | $ | 5,395 | $ | 8,818 | ||||||||||||||||||||
| Interest rate spread (2) | 0.68 | % | 1.61 | % | ||||||||||||||||||||
| Net interest margin (3) | 1.20 | % | 2.01 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 114.56 | % | 117.09 | % | ||||||||||||||||||||
| 1. | Cash flow hedges are used to manage interest rate risk. During the six months ended June 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of |
| 2. | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
| 3. | Net interest margin represents net interest income divided by average total interest-earning assets. |
Rate/Volume Analysis
The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.
| Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | |||||||||||||||||||||||
| Compared to | Compared to | |||||||||||||||||||||||
| Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||
| Increase (Decrease) Due to | Increase (Decrease) Due to | |||||||||||||||||||||||
| Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||
| Interest income: | (unaudited) | |||||||||||||||||||||||
| Cash and cash equivalents | $ | (169 | ) | $ | 147 | $ | (22 | ) | $ | (122 | ) | $ | 144 | $ | 22 | |||||||||
| Loans receivable | (158 | ) | 315 | 157 | (201 | ) | 867 | 666 | ||||||||||||||||
| Securities | 318 | 525 | 843 | 333 | 943 | 1,276 | ||||||||||||||||||
| Other interest earning assets | 43 | 46 | 89 | 106 | 41 | 147 | ||||||||||||||||||
| Total interest-earning assets | 35 | 1,032 | 1,067 | 115 | 1,996 | 2,111 | ||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| NOW and money market accounts | (331 | ) | 305 | (26 | ) | (507 | ) | 436 | (71 | ) | ||||||||||||||
| Savings accounts | (60 | ) | 173 | 113 | (72 | ) | 313 | 241 | ||||||||||||||||
| Certificates of deposit | 189 | 1,767 | 1,956 | 271 | 3,857 | 4,128 | ||||||||||||||||||
| Federal Home Loan Bank advances | 413 | 160 | 573 | 959 | 277 | 1,236 | ||||||||||||||||||
| Total interest-bearing liabilities | 211 | 2,405 | 2,616 | 652 | 4,882 | 5,534 | ||||||||||||||||||
| Net decrease in net interest income | $ | (176 | ) | $ | (1,373 | ) | $ | (1,549 | ) | $ | (537 | ) | $ | (2,886 | ) | $ | (3,423 | ) | ||||||
Contacts
Kevin Pace – President & CEO, 201-862-0660 ext. 1110
FAQ
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