Peak Bancorp, Inc. Announces Q3 2023 Results

Rhea-AI Summary

Peak Bancorp, Inc. announced unaudited financial results for Q3 2023. Net Interest Income increased 16% to $16.93 million due to loan and deposit growth. Net Income after tax increased 59% to $4.15 million. Noninterest expenses increased 2% to $11.42 million. Stockholder’s equity increased 14% to $49.5 million. Net Interest Income for Q3 2023 increased 7% to $5.86 million. Net Income after tax increased 33% to $1.63 million. Noninterest expense increased 4% to $3.81 million. Average loans increased by 4% to $516 million, while average deposits increased 5% to $545 million.

Positive

• Net Interest Income increased 16% to $16.93 million
• Net Income after tax increased 59% to $4.15 million
• Stockholder’s equity increased 14% to $49.5 million
• Net Interest Income for Q3 2023 increased 7% to $5.86 million
• Net Income after tax increased 33% to $1.63 million
• Average loans increased by 4% to $516 million
• Average deposits increased 5% to $545 million

Negative

• Noninterest expenses increased 2% to $11.42 million
• Noninterest expense increased 4% to $3.81 million

MCCALL, Idaho, Oct. 23, 2023 (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 quarter ending September 30, 2023.

Chief Executive Officer Todd Cooper commented, “As a result of our continued focus on relationship banking, Net Interest Income improved over the prior periods as loan balances grew and the net interest margin improved slightly. The team has stayed diligent in controlling non-interest expenses and the result is our most profitable quarter of 2023.”

YTD through Q3 2023 vs. YTD through Q3 2022

• Net Interest Income increased 16% from $14.57 million to $16.93 million as a result of loan and deposit growth, and improved net interest margin.
• Net Income after tax increased 59% from $2.61 million to $4.15 million which was also the result average earning asset growth combined with improved net interest margin.
• Noninterest expenses increased 2%, from $11.22 million to $11.42 million, reflecting ongoing cost-control efforts.
• Stockholder’s equity increased 14% to $49.5 million at period end, which was the result of continued earnings held in the company.

Third Quarter 2023 vs. Second Quarter 2023

• Net Interest Income increased 7% from $5.47 million to $5.86 million, the result of higher loan balances and an improvement in net interest margin.
• Net Income after tax increased 33% from $1.23 million to $1.63 million as net interest margin improved and provision for credit losses decreased quarter over quarter.
• Noninterest expense increased 4% from $3.66 million to $3.81 million.
• Average loans increased by 4% to $516 million, while average deposits increased 5% to $545 million.

Chairman Mark Miller noted, “The board is pleased with the results from the first nine months of 2023. The team has remained focused on building full banking relationships which has driven loan and deposit growth, and also improved net interest margin in the quarter. The market continues to respond to our business model and the results year-to-date reflect both balance sheet growth and stable performance.”

Credit quality and portfolio performance both remain historically strong. Continued commitment to credit discipline combined with proactive credit monitoring have resulted in continued strong credit portfolio metrics. The Bank continues to fund the allowance for credit losses to support the growing loan balances. At quarter-end the allowance was $6.5 million or 1.25% of loans. Chief Credit Officer Shannon Stoeger commented, “Our credit and relationship teams continue to show great discipline around maintaining underwriting standards, while closely monitoring the performance of our borrowers. Additionally, the bank remains committed to appropriately funding our Allowance for Credit Loss to support a growing portfolio.”

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.

Peak Bancorp, Inc.
Consolidated Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the nine months ended September 30:	2023				2022				Change
Net interest income	$	16,927			$	14,572			$	2,355				16	%
Provision for credit losses		825				850				(25	)			-3	%
Mortgage banking income		59				278				(220	)			-79	%
Other noninterest income		852				753				99				13	%
Noninterest expenses		11,415				11,219				196				2	%
Net income before taxes		5,598				3,534				2,064				58	%
Tax provision		1,451				927				524				57	%
Net income	$	4,147			$	2,607			$	1,540				59	%
At September 30:	2023				2022				Change
Loans	$	523,544			$	458,533			$	65,011				14	%
Allowance for credit losses		6,536				5,440				1,096				20	%
Assets		618,425				542,876				75,549				14	%
Deposits		545,850				479,734				66,117				14	%
Stockholders' equity		49,499				43,352				6,147				14	%
Nonaccrual loans		-				4,300				(4,300	)			-100	%
Accruing loans more than 90 days past due		-				-				-
Other real estate owned		-				-				-
Total nonperforming assets		-				4,300				(4,300	)			-100	%
Book value per share		9.22				8.10				1.12				14	%
Shares outstanding		5,371,575				5,350,651				20,924				0	%
Allowance to loans		1.25	%			1.19	%
Allowance to nonperforming loans		-				126	%
Nonperforming loans to total loans		0.00	%			0.94	%
Averages for the nine months ended September 30:		2023				2022			Change
Loans	$	494,570			$	423,501			$	71,069				17	%
Earning assets		580,232				528,821				51,411				10	%
Assets		596,593				545,388				51,205				9	%
Deposits		521,930				472,914				49,016				10	%
Stockholders' equity		49,165				43,799				5,366				12	%
Loans to deposits		95	%			90	%
Net interest margin		3.90	%			3.68	%

Peak Bancorp, Inc.
Quarterly Consolidated Financial Highlights (unaudited)
(Dollars in thousands)
Income Statement	Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Net interest income	$	5,866			$	5,473			$	5,588			$	6,139			$	5,701
Provision for credit losses		150				475				200				250				350
Mortgage banking income		16				17				26				34				45
Other noninterest income		280				304				268				298				292
Noninterest expenses		3,811				3,662				3,943				3,996				3,800
Net income before taxes		2,201				1,658				1,740				2,226				1,888
Tax provision		572				429				450				568				493
Net income	$	1,629			$	1,229			$	1,290			$	1,658			$	1,395
Period End Information	Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Loans	$	523,544			$	506,837			$	476,466			$	479,571			$	458,533
Deposits		545,850				547,484				507,312				497,406				479,734
Allowance for credit losses		6,536				6,386				5,911				5,711				5,440
Nonperforming loans		-				-				-				-				4,300
Other real estate owned		-				-				-				-				-
Quarterly net charge-offs (recoveries)		-				-				-				(21	)			(1	)
Allowance to loans		1.25	%			1.26	%			1.24	%			1.19	%			1.19	%
Allowance to nonperforming loans		-				-				-				-				126	%
Nonperforming loans to loans		0.00	%			0.00	%			0.00	%			0.00	%			0.94	%
Average Balance Information	Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Loans	$	515,937			$	496,659			$	470,617			$	467,973			$	446,137
Earning assets		602,310				581,865				556,012				539,094				532,981
Assets		619,157				598,083				572,022				555,157				549,129
Deposits		545,108				520,030				500,159				488,349				483,480
Stockholders' equity		50,550				49,079				47,837				46,309				44,717
Loans to deposits		95	%			96	%			94	%			96	%			92	%
Net interest margin		3.86	%			3.77	%			4.08	%			4.52	%			4.24	%

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

FAQ

What is the increase in Net Interest Income for Q3 2023?

Net Interest Income for Q3 2023 increased 7% to $5.86 million.

What is the increase in Net Income after tax for Q3 2023?

Net Income after tax increased 33% to $1.63 million.

What is the increase in Average loans?

Average loans increased by 4% to $516 million.

What is the increase in Average deposits?

Average deposits increased 5% to $545 million.