Peak Bancorp, Inc. Announces 3rd Quarter 2022 Results

Rhea-AI Summary

Peak Bancorp, Inc. (OTC: IDFB) reported unaudited financial results for Q3 2022, with an after-tax net income of $2.6 million for the first nine months. A decline in net interest income of $2.1 million compared to 2021 was primarily due to an $8.0 million drop in PPP interest income, partially offset by non-PPP loan growth. The loan portfolio reached $459 million with a $114 million increase (excluding PPP) from Q3 2021, while deposits grew by $72 million to $480 million. The allowance for loan losses stood at $5.4 million or 1.2% of loans, indicating strong credit quality.

Positive

• After-tax net income of $2.6 million for the first nine months of 2022.
• Loan portfolio growth of $114 million from Q3 2021, reaching $459 million.
• Deposits increased by $72 million from Q3 2021, totaling $480 million.
• Strong credit quality maintained, with an allowance for loan losses of $5.4 million or 1.2% of loans.

Negative

• Net interest income decreased by $2.1 million compared to the same period in 2021.
• $8.0 million decrease in PPP interest income affecting overall financial performance.
• $565 thousand in one-time merger-related expenses impacting year-to-date net income.

MCCALL, Idaho, Oct. 28, 2022 (GLOBE NEWSWIRE) -- Peak Bancorp, Inc., (the Company) (OTC: IDFB), the holding company for Idaho First Bank (the Bank), today announced unaudited financial results for the third quarter ended September 30, 2022.

The Company recognized after-tax net income of $2.6 million through the first nine months of 2022. Year-to-date net interest income decreased from the same period in 2021 by $2.1 million. This decrease can be attributed to a $8.0 million decrease in Paycheck Protection Program (PPP) interest income, which was offset by additional income from non-PPP loan growth and improved earning asset yields. YTD 2022 net income has also been impacted by $565 thousand of one-time merger related expenses. Chairman Mark Miller noted, “The board is proud of both the growth of the bank and the improving financial performance, net of PPP, posted through the first three quarters of 2022.”

The Company’s loan portfolio ended the period at $459 million, which included $6 million in PPP loans. This represented growth in the loan portfolio – excluding PPP – of $114 million from Q3 2021. Deposits ended the quarter at $480 million which is an increase of $72 million from Q3 2021. “Continued balance sheet growth and improved net interest margin combined with an ongoing focus on effective expense management are responsible for the profitable year-to-date performance,” stated Todd Cooper, CEO.

Credit quality and portfolio performance remain consistently strong, and the bank continues to fund the allowance for loan loss to support the growing loan balances. At quarter-end the allowance was $5.4 million or 1.2% of loans (excluding PPP and loans held for sale). Chief Credit Officer Shannon Stoeger commented, “Our strong credit portfolio performance continued through the third quarter as we remain committed to maintaining our strong underwriting standards.”

About Peak Bancorp, Inc.

Peak Bancorp, Inc., is the holding company for Idaho First Bank, a state chartered community bank headquartered in McCall, Idaho. Known for its People First motto, Idaho First Bank serves greater southwest Idaho with branches located in McCall, New Meadows, Eagle, Ketchum, Nampa and Boise, as well as a branch located in Bend, Oregon. Idaho First Bank is a member of the FDIC and an Equal Housing Lender. For more information, visit us at www.idahofirstbank.com

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA’s safe harbor provisions.

FOR IMMEDIATE RELEASE CONTACT:
Todd Cooper
President and CEO – Peak Bancorp, Inc.
208.630.2092 – tcooper@idahofirstbank.com

Peak Bancorp, Inc.
Consolidated Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the nine months ended September 30:		2022				2021			Change
Net interest income	$	14,572			$	16,711			$	(2,139	)			-13	%
Provision for loan losses		850				1,400				(550	)			-39	%
Mortgage banking income		278				1,172				(893	)			-76	%
Other noninterest income		753				603				150				25	%
Noninterest expenses		11,219				10,810				410				4	%
Net income before taxes		3,534				6,276				(2,742	)			-44	%
Tax provision		927				1,688				(761	)			-45	%
Net income	$	2,607			$	4,588			$	(1,981	)			-43	%
At September 30:		2022				2021			Change
Loans	$	458,533			$	420,832			$	37,701				9	%
Allowance for loan losses		5,440				4,530				910				20	%
Assets		542,876				550,658				(7,782	)			-1	%
Deposits		479,734				407,508				72,226				18	%
Stockholders' equity		43,352				40,639				2,713				7	%
Nonaccrual loans		4,300				673				3,628				539	%
Accruing loans more than 90 days past due		-				-				-
Other real estate owned		-				-				-
Total nonperforming assets		4,300				673				3,628				539	%
Book value per share		8.10				7.75				0.35				5	%
Shares outstanding		5,350,651				5,246,306				104,345				2	%
Allowance to loans		1.19	%			1.08	%
Allowance to nonperforming loans		126	%			673	%
Nonperforming loans to total loans		0.94	%			0.16	%
Averages for the nine months ended September 30:		2022				2021			Change
Loans	$	423,501			$	647,524			$	(224,023	)			-35	%
Earning assets		528,821				734,650				(205,829	)			-28	%
Assets		545,388				750,229				(204,842	)			-27	%
Deposits		472,914				396,046				76,868				19	%
Stockholders' equity		43,799				37,490				6,309				17	%
Loans to deposits		90	%			163	%
Net interest margin		3.68	%			3.04	%

Peak Bancorp, Inc.
Quarterly Consolidated Financial Highlights (unaudited)
(Dollars in thousands)
Income Statement	Q3 2022				Q2 2022				Q1 2022				Q4 2021				Q3 2021
Net interest income	$	5,701			$	4,773			$	4,098			$	4,346			$	5,040
Provision for loan losses		350				350				150				100				300
Mortgage banking income		45				95				138				347				300
Other noninterest income		292				237				224				229				226
Noninterest expenses		3,800				3,950				3,470				3,402				3,500
Net income before taxes		1,888				806				840				1,419				1,766
Tax provision		493				211				223				331				478
Net income	$	1,395			$	595			$	617			$	1,088			$	1,288
Period End Information	Q3 2022				Q2 2022				Q1 2022				Q4 2021				Q3 2021
Loans	$	458,533			$	433,409			$	411,475			$	398,999			$	420,832
Deposits		479,734				476,438				477,174				470,455				407,508
Allowance for loan losses		5,440				5,089				4,738				4,588				4,530
Nonperforming loans		4,300				-				-				663				673
Other real estate owned		-				-				-				-				-
Quarterly net charge-offs (recoveries)		(1	)			(1	)			(1	)			43				(9	)
Allowance to loans		1.19	%			1.17	%			1.15	%			1.15	%			1.08	%
Allowance to nonperforming loans		126	%			-				-				692	%			673	%
Nonperforming loans to loans		0.94	%			0.00	%			0.00	%			0.17	%			0.16	%
Average Balance Information	Q3 2022				Q2 2022				Q1 2022				Q4 2021				Q3 2021
Loans	$	446,137			$	424,540			$	399,313			$	402,944			$	475,672
Earning assets		532,981				526,248				527,170				532,469				604,581
Assets		549,129				543,011				543,966				549,861				619,559
Deposits		483,480				469,957				465,104				437,040				407,186
Stockholders' equity		44,717				43,676				42,986				41,262				39,789
Loans to deposits		92	%			90	%			86	%			92	%			117	%
Net interest margin		4.24	%			3.64	%			3.15	%			3.24	%			3.31	%

FAQ

What are the financial results of Peak Bancorp (IDFB) for Q3 2022?

Peak Bancorp reported an after-tax net income of $2.6 million for the first nine months of 2022.

How much did the loan portfolio grow for IDFB compared to Q3 2021?

The loan portfolio grew by $114 million from Q3 2021, reaching a total of $459 million.

What was the total deposit amount for Peak Bancorp as of Q3 2022?

Deposits increased to $480 million, reflecting a growth of $72 million from Q3 2021.

What impact did the Paycheck Protection Program have on IDFB's financials?

The company experienced an $8.0 million decrease in PPP interest income, contributing to a decline in net interest income.