PB Financial Corporation Reports Earnings For Both the Fourth Quarter And the Year 2023

Rhea-AI Summary

PB Financial Corporation (PBNC) reported a decrease in net income for the quarter ended December 31, 2023, compared to the same period in 2022. Total assets increased by 15.69% to $982.4 million at the end of 2023, while total deposits and gross loans also saw significant growth. The Company incurred one-time expenses related to its announced merger with Coastal Bank & Trust, impacting 4th quarter results. The proposed merger is expected to be accretive to earnings in 2024 and is anticipated to be consummated in the 2nd quarter of 2024. Despite the decrease in net income, the Company experienced strong organic growth in loans, deposits, and total assets. Cash dividends per share increased by approximately 51.22% from 2022, and the Company has paid 48 consecutive quarterly cash dividends since 2012.

ROCKY MOUNT, NC / ACCESSWIRE / January 26, 2024 / Ted E. Whitehurst, President and CEO of PB Financial Corporation (OTCQX:PBNC), the holding company (the "Company") for Providence Bank, announced today that the Company reported net income for the quarter ended December 31, 2023, of $3,365,752 compared to $4,329,604 for the same period in 2022, a decrease of 22.21%. For 2023, net income was $13,916,496 compared to $14,254,101 for 2022, a decrease of 2.37%.

As of December 31, 2023, the Company reported total assets of $982.4 million compared to $849.2 million at December 31, 2022, an increase of 15.69%. Total deposits were $803.5 million and gross loans were $827.8 million at the end of 2023, compared to total deposits of $674.0 million and gross loans of $687.7 million at the end of 2022, increases of 19.21% and 20.37% respectively.

Whitehurst commented, "I am pleased to report our quarterly and full year earnings. Our 4^th quarter results were impacted by one-time expenses of $403,000 related to our announced merger with Coastal Bank & Trust. During 2023, we incurred total merger-related expenses of approximately $565,000. We expect that this proposed merger will be accretive to our earnings in 2024. We anticipate the merger will be consummated in the 2^nd quarter of 2024. In 2023, the Company continued to experience strong organic growth throughout the organization with double digit growth in loans, deposits and total assets. The hard work and dedication of our employees to serve our customers continues to drive our success. As always, we will continue to look for opportunities to further enhance shareholder value."

For 2023, the Company had basic earnings of $5.98 per share compared to basic earnings of $6.42 per share in 2022, a decrease of 6.85%. The December 31, 2023, book value per common share was $35.08, and the tangible book value per common share was $33.45. In 2023, the Company paid cash dividends of $1.86 per share for each share of common stock outstanding, an increase of approximately 51.22% from the cash dividends paid in 2022. The Company has paid 48 consecutive quarterly cash dividends since it began paying cash dividends in the first quarter of 2012. The quarterly cash dividend has been increased each quarter.

Providence Bank is a state-chartered community bank headquartered at 450 N. Winstead Avenue in Rocky Mount, North Carolina, with branches in Rocky Mount, Tarboro, Nashville, Wilson and Raleigh.

www.pbknc.com

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding PB Financial Corporation. Those statements may include but are not limited to statements regarding the Company's plans, objectives, expectations and intentions and other statements identified by words such as "believes," "considers," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects," "would be," and similar expressions. These statements are based upon current beliefs and expectations of management of PB Financial Corporation and are subject to significant risks and uncertainties. Actual or future results or events may differ from those set forth in the forward-looking statements. PB Financial Corporation does not undertake to update any forward-looking statements in this press release. The information as of and for the quarters ended December 31, 2023 and December 31, 2022 as presented is unaudited.

For more information, contact: January 26, 2024
Ted E. Whitehurst, President and CEO
252-467-2990; twhitehurst@pbknc.com

PB Financial Corporation
Consolidated Balance Sheets and Statements of Operations
Balance Sheets			December 31,				December 31,
In Thousands			2023				2022
Assets			(unaudited)					*
Cash and due from banks			$	9,393			$	9,478
Interest-earning deposits with banks				15,585				21,071
Investment securities				98,045				100,338
Loans, gross				827,803				687,706
Allowance for credt losses				(6,743	)			(6,142	)
Intangible assets				4,064				4,193
Other assets				34,240				32,525
	Total assets		$	982,387			$	849,169
Liabilities and
Shareholders' Equity
Deposits			$	803,536			$	674,023
Borrowed funds				83,697				101,743
Other liabilities				7,629				5,994
Shareholders' Equity				87,525				67,409
	Total liabilities and
	shareholders' equity		$	982,387			$	849,169
Book value per share			$	35.08			$	29.93
Tangible book value per share			$	33.45			$	28.07

Statements of Operations	For the three months ended							For the twelve months ended
In Thousands	December 31,				December 31,			December 31,				December 31,
	2023				2022			2023				2022
	(unaudited)				(unaudited)			(unaudited)				(unaudited)
Interest income	$	14,608			$	10,997		$	53,067			$	35,379
Interest expense		7,087				3,028			22,676				7,580
Net interest income		7,521				7,969			30,391				27,799
Provision for credit losses		242				135			955				530
Net interest income after
provision for loan losses		7,279				7,834			29,436				27,269
Non interest income		278				297			1,173				1,363
Non interest expense		3,339				2,652			12,722				10,335
Income before income taxes		4,218				5,479			17,887				18,297
Income tax expense		852				1,148			3,971				4,043
Net income	$	3,366			$	4,331		$	13,916			$	14,254
Net income per common share - basic	$	1.38			$	1.94		$	5.98			$	6.42
Net income per common share - diluted	$	1.32			$	1.88		$	5.77			$	6.23
* Derived from audited financial statements

SOURCE: PB Financial Corporation

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FAQ

What is PB Financial Corporation's ticker symbol?

PB Financial Corporation's ticker symbol is PBNC.

What was PB Financial Corporation's net income for the quarter ended December 31, 2023?

PB Financial Corporation reported net income of $3,365,752 for the quarter ended December 31, 2023.

How did PB Financial Corporation's net income for 2023 compare to 2022?

For 2023, net income was $13,916,496 compared to $14,254,101 for 2022, a decrease of 2.37%.

What was the percentage increase in total assets for PB Financial Corporation at the end of 2023?

Total assets increased by 15.69% to $982.4 million at the end of 2023.

What expenses impacted PB Financial Corporation's 4th quarter results in 2023?

One-time expenses of $403,000 related to the announced merger with Coastal Bank & Trust impacted the 4th quarter results in 2023.

When is the proposed merger with Coastal Bank & Trust anticipated to be consummated?

The proposed merger with Coastal Bank & Trust is anticipated to be consummated in the 2nd quarter of 2024.

How many consecutive quarterly cash dividends has PB Financial Corporation paid since 2012?

The Company has paid 48 consecutive quarterly cash dividends since it began paying cash dividends in the first quarter of 2012.