North Dallas Bank & Trust Co. Announces Second Quarter Earnings

Rhea-AI Summary

NDBT announces net earnings of $1.34M for three months and $2.73M for six months ending June 30, 2023. The bank has experienced significant impact from interest rate increases but remains focused on long-term goals.

Positive

• NDBT reports net earnings of $1.34M for three months and $2.73M for six months, indicating profitability. The bank is passing earnings lift to depositors through higher interest rates.

Negative

• The commercial banking industry has been impacted by interest rate increases, putting pressure on near-term earnings.

DALLAS, July 12, 2023 (GLOBE NEWSWIRE) -- NDBT (North Dallas Bank & Trust Co.) (OTC: NODB), an independent community bank established in 1961, today announced net earnings for three months of $1,340,479 or $0.52 per share, and net earnings for six months of $2,734,259 or $1.06 per share, for the periods ending June 30, 2023.

Larry Miller, President and Chief Executive Officer noted “The velocity of interest rate increases experienced in the last several months has had a significant impact throughout the commercial banking industry.  At NDBT, the loan growth we have generated over the course of the last two years has positioned our bank to meet market demand for higher deposit rates while preserving profitability. We are currently passing the earnings lift realized from these new loans to our depositors in the form of higher interest rates, recognizing that over time, our earnings profile will return to more traditional levels as higher yielding loans advance and current assets reprice. While the current market has created pressure on near term earnings, it has not required the surrender of our longer-term goals.”

Earnings were prepared internally without review by the company’s independent accountants. Financial results are the results of past performance, events and market conditions, and are not a guarantee for future results. Any forward-looking implications derived from this information may differ materially from actual results.

Further information about the earning and financial performance is available from Glenn Henry, Chief Financial Officer, by contacting NDBT.

FINANCIAL HIGHLIGHTS	Three Months Ended								Six Months Ended
	June 30								June 30
Income Statement		2023				2022				2023				2022
Interest Income		15,259,838				11,743,139				29,334,830				22,404,024
Interest Expense		6,164,576				788,677				11,056,175				1,445,821
Net Interest Income		9,095,262				10,954,462				18,278,655				20,958,203
Provision for Loan Losses		(150,000	)			(1,100,000	)			(450,000	)			(1,855,600	)
Noninterest Income		1,333,817				1,538,901				2,711,908				3,024,018
Noninterest Expenses		(8,649,886	)			(8,638,388	)			(17,221,970	)			(16,699,678	)
Income Before Taxes & Extraordinary		1,629,193				2,754,975				3,318,593				5,426,943
Income Tax		(288,714	)			(531,921	)			(584,334	)			(1,069,799	)
Net Income		1,340,479				2,223,054				2,734,259				4,357,144
Earnings per Share		0.52				0.87				1.06				1.70
									Six Month Average
	As of June 30								Ended June 30
Balance Sheet		2023				2022				2023				2022
Total Assets		1,684,358,352				1,728,270,805				1,692,290,129				1,722,033,798
Total Loans		1,064,477,633				969,600,433				1,036,825,459				911,467,409
Deposits		1,425,914,001				1,561,360,658				1,483,888,586				1,549,887,908
Stockholders' Equity		160,522,874				157,357,150				160,144,964				164,415,092
(Prepared internally without review by
our independent accountants)

ABOUT NDBT
Founded in 1961, NDBT (North Dallas Bank & Trust Co.) is an independent community bank with five banking centers located in Dallas, Addison, Frisco, Las Colinas, and Plano. Headquartered on the corner of Preston Road and LBJ at 12900 Preston Road in Dallas, NDBT is dedicated to helping people make smarter choices in business and life by offering authentic banking solutions, wealth management, and innovative online banking tools. NDBT is Member FDIC and an Equal Housing Lender. For more information, call 972.716.7100, or visit online at www.ndbt.com.

Media Contact:
Brian C. Jensen
972-716-7124
brian.jensen@ndbt.com

FAQ

What are NDBT's net earnings for three months and six months?

NDBT reported net earnings of $1.34M for three months and $2.73M for six months ending June 30, 2023.

How is NDBT responding to interest rate increases?

NDBT is passing the earnings lift from new loans to depositors in the form of higher interest rates.

What impact has the current market had on NDBT's earnings?

The current market has created pressure on near-term earnings for NDBT.

What are NDBT's long-term goals?

NDBT has not surrendered its longer-term goals despite the current market conditions.