Traditions Bancorp, Inc. Reports Second Quarter 2024 Earnings
Traditions Bancorp (OTC Pink: TRBK) reported net income of $1.8 million for Q2 2024, up from $1.4 million in Q1 and $1.3 million in Q2 2023. Earnings per share rose to $0.66, compared to $0.49 in Q1 and $0.47 in Q2 2023. The company saw loan growth of 3% and deposit growth of 6% year-over-year. However, net interest margin contracted to 2.99% from 3.31% in Q2 2023 due to rising funding costs. Mortgage banking income rebounded, with gains on sale of mortgages increasing to $1.5 million from $1.0 million in Q2 2023. The company declared a cash dividend of $0.08 per share.
Traditions Bancorp (OTC Pink: TRBK) ha riportato un utile netto di 1,8 milioni di dollari per il secondo trimestre del 2024, in aumento rispetto a 1,4 milioni di dollari nel primo trimestre e 1,3 milioni di dollari nel secondo trimestre del 2023. Gli utili per azione sono aumentati a 0,66 dollari, rispetto a 0,49 dollari nel primo trimestre e 0,47 dollari nel secondo trimestre del 2023. L'azienda ha registrato una crescita dei prestiti del 3% e una crescita dei depositi del 6% rispetto all'anno precedente. Tuttavia, il margine di interesse netto si è contratto al 2,99% rispetto al 3,31% nel secondo trimestre del 2023 a causa dell'aumento dei costi di finanziamento. I ricavi del settore mutui sono aumentati, con guadagni sulle vendite di mutui che sono saliti a 1,5 milioni di dollari rispetto a 1,0 milioni di dollari nel secondo trimestre del 2023. L'azienda ha dichiarato un dividendo in contante di 0,08 dollari per azione.
Traditions Bancorp (OTC Pink: TRBK) reportó un ingreso neto de 1.8 millones de dólares para el segundo trimestre de 2024, un incremento desde 1.4 millones de dólares en el primer trimestre y 1.3 millones de dólares en el segundo trimestre de 2023. Las ganancias por acción aumentaron a 0.66 dólares, en comparación con 0.49 dólares en el primer trimestre y 0.47 dólares en el segundo trimestre de 2023. La compañía vio un crecimiento de préstamos del 3% y crecimiento de depósitos del 6% interanual. Sin embargo, el margen de interés neto se contrajo al 2.99% desde el 3.31% en el segundo trimestre de 2023 debido al aumento de los costos de financiamiento. Los ingresos por servicios hipotecarios se recuperaron, con ganancias por la venta de hipotecas aumentadas a 1.5 millones de dólares desde 1.0 millones de dólares en el segundo trimestre de 2023. La compañía declaró un dividendo en efectivo de 0.08 dólares por acción.
Traditions Bancorp (OTC Pink: TRBK)는 2024년 2분기 동안 180만 달러의 순이익을 보고했으며, 이는 1분기의 140만 달러와 2023년 2분기의 130만 달러에서 증가한 수치입니다. 주당 순이익은 0.66 달러로 증가하였으며, 1분기의 0.49 달러 및 2023년 2분기의 0.47 달러와 비교됩니다. 회사는 대출 성장률 3% 및 예금 성장률 6%을 기록했습니다. 그러나 순이자 마진은 2023년 2분기의 3.31%에서 2.99%로 축소되었습니다, 이는 자금 조달 비용 상승 때문입니다. 주택 담보 대출 수입이 반등하여 담보 대출 판매에서의 수익이 100만 달러에서 150만 달러로 증가했습니다. 회사는 주당 0.08 달러의 현금 배당금을 선언했습니다.
Traditions Bancorp (OTC Pink: TRBK) a annoncé un revenu net de 1,8 million de dollars pour le deuxième trimestre 2024, en hausse par rapport à 1,4 million de dollars au premier trimestre et 1,3 million de dollars au deuxième trimestre 2023. Le bénéfice par action a augmenté à 0,66 dollar, comparé à 0,49 dollar au premier trimestre et 0,47 dollar au deuxième trimestre 2023. La société a enregistré une croissance des prêts de 3% et une croissance des dépôts de 6% d'une année sur l'autre. Cependant, la marge d'intérêt nette a diminué à 2,99% contre 3,31% au deuxième trimestre 2023 en raison de l'augmentation des coûts de financement. Les revenus des services hypothécaires ont rebondi, avec des gains sur ventes de prêts hypothécaires passant à 1,5 million de dollars contre 1,0 million de dollars au deuxième trimestre 2023. L'entreprise a déclaré un dividende en espèces de 0,08 dollar par action.
Traditions Bancorp (OTC Pink: TRBK) meldete einen Nettoquelle von 1,8 Millionen Dollar für das 2. Quartal 2024, ein Anstieg von 1,4 Millionen Dollar im 1. Quartal und 1,3 Millionen Dollar im 2. Quartal 2023. Der Gewinn pro Aktie stieg auf 0,66 Dollar, verglichen mit 0,49 Dollar im 1. Quartal und 0,47 Dollar im 2. Quartal 2023. Das Unternehmen verzeichnete ein Wachstum der Kredite um 3% und ein Wachstum der Einlagen um 6% im Jahresvergleich. Der Nettozinssatz schloss jedoch von 3,31% im 2. Quartal 2023 auf 2,99% aufgrund der steigenden Finanzierungskosten. Die Einkünfte aus der Hypothekenfinanzierung erholten sich, mit Gewinnen aus dem Verkauf von Hypotheken, die auf 1,5 Millionen Dollar anstiegen von 1,0 Millionen Dollar im 2. Quartal 2023. Das Unternehmen erklärte eine Bar-Dividende von 0,08 Dollar pro Aktie.
- Net income increased to $1.8 million in Q2 2024, up from $1.4 million in Q1 and $1.3 million in Q2 2023
- Earnings per share rose to $0.66 in Q2 2024, compared to $0.49 in Q1 and $0.47 in Q2 2023
- Loans grew by $20.1 million (3%) year-over-year
- Deposits increased by $44.3 million (6%) over the previous 12 months
- Gains on sale of mortgages increased to $1.5 million in Q2 2024 from $1.0 million in Q2 2023
- Other expenses decreased by 4% year-over-year due to strategic realignment
- Net interest margin contracted to 2.99% in Q2 2024 from 3.31% in Q2 2023
- Cost of deposits increased to 3.08% in Q2 2024, up from 1.87% in Q2 2023
- Net interest income decreased by $0.4 million (7%) compared to Q2 2023
- Nonaccrual loans increased from $3.8 million in Q1 2024 to $4.4 million in Q2 2024
- Delinquencies greater than 30 days rose to 1.05% of total loans, up from 0.80% in Q2 2023
"Traditions Bancorp's net earnings for the second quarter are improved, and the positive momentum that began earlier this year continues to build despite prolonged economic headwinds," stated Eugene J. Draganosky, Chair of the Board and Chief Executive Officer. "Mortgage banking income has rebounded for the quarter, with gains on the sale of mortgages bolstering earnings as rising funding costs continue to inhibit net interest income. We remain optimistic and look forward to the normalization of the interest rate yield curve in the future. In the meantime, we have continued to manage expenses, conserve capital, and prudently grow our franchise."
Quarterly Highlights – Second Quarter 2024 versus Second Quarter 2023
- Loans grew by
$20.1 million 3% , over 2Q23. - Over the previous 12 months, deposits increased by
$44.3 million 6% . Most of this growth was concentrated in brokered deposits, higher-cost time deposits, and money market specials as depositors became more rate-sensitive. Brokered CDs increased from$43.7 million $64.7 million 9% of total deposits. - The cost of deposits increased to
3.08% for 2Q24, up from3.04% for 1Q24 and1.87% for 2Q23. - Net interest margin contracted to
2.99% in 2Q24 compared to3.31% in 2Q23. This was driven by an increase in the total cost of funds, including borrowings, from2.15% in 2Q23 to3.19% in 2Q24. - Gains on the sale of mortgages were
$1.5 million $1.0 million $1.2 million - Mortgage banking revenue has been solid in 2Q24 despite higher-for-longer interest rates caused by stubborn inflation and limited home inventories. The mortgage pipeline increased to
$25.8 million $17.4 million $15.6 million - A second-quarter cash dividend of
eight cents per common share was declared on July 18, 2024, and is payable on August 12, 2024, to shareholders of record at the close of business on August 2, 2024. - Net interest income decreased
$0.4 million 7% , driven by rising funding costs. - Other expense decreased by
4% , from$6.4 million $6.2 million - The 2Q24 credit loss provision was a negative
$171 thousand
YTD Highlights – Six Months Ended June 30, 2024, versus Six Months Ended June 30, 2023
- Interest expense growth outpaced interest income due to the rising cost of funds, as net interest income decreased
$1.0 million 8% , over the six months ended June 30, 2023. - Gains on sale of mortgages increased by
$0.8 million 39% , despite a challenging rate environment and limited home inventories within the company's geographic footprint. - Other expense decreased by
$0.7 million 5% , year over year due to the strategic realignment completed in 2023. - Net interest margin contracted 43 basis points, from
3.38% in 2Q23 to2.95% in 2Q24, driven by an increased cost of funds.
Credit Quality and Capital Insights
- Nonaccrual loans increased from
$3.8 million $4.4 million $0.9 million $0.3 million - The company reported net charge-offs of
$20 thousand - Non-performing assets to total assets stood at
0.51% in the current quarter compared to0.53% in 1Q24 and0.48% in 2Q23. - Delinquencies greater than 30 days were
1.05% of total loans as of June 30, 2024, up from0.85% as of March 31, 2024, and0.80% as of June 30, 2023. - The company's ACL ratio was
0.56% as of June 30, 2024, compared to0.57% as of March 31, 2024, and0.53% as of June 30, 2023. - Traditions Bancorp and Traditions Bank remain well-capitalized.
FINANCIAL HIGHLIGHTS (unaudited): | ||||||||
Selected Financial Data | Jun 30, 2024 | Dec 31, 2023 | Jun 30, 2023 | |||||
Investment securities | $ | 104,391 | $ | 111,817 | $ | 115,056 | ||
Loans, net of unearned income | 673,251 | 668,813 | 653,121 | |||||
Allowance for credit losses | 3,747 | 3,730 | 3,472 | |||||
Total assets | 858,589 | 840,073 | 837,661 | |||||
Deposits | 737,875 | 731,051 | 693,599 | |||||
Borrowings | 40,000 | 32,500 | 70,987 | |||||
Shareholders' equity | 66,582 | 63,786 | 60,791 | |||||
Common book value per common share | $ | 24.19 | $ | 23.31 | $ | 22.29 | ||
Tier 1 book value per common share | $ | 28.23 | $ | 27.35 | $ | 26.79 | ||
Allowance/loans | 0.56 % | 0.56 % | 0.53 % | |||||
Non-performing assets/total assets | 0.51 % | 0.47 % | 0.48 % | |||||
Tier 1 capital/average assets | 8.98 % | 8.70 % | 8.74 % | |||||
Tier 1 capital/risk-weighted assets | 11.67 % | 11.53 % | 11.12 % | |||||
Total capital/risk-weighted assets | 12.24 % | 12.12 % | 11.66 % | |||||
Common shares outstanding | 2,753 | 2,737 | 2,727 | |||||
Three months ended Jun 30, | Six months ended Jun 30, | |||||||
Selected Operations Data | 2024 | 2023 | 2024 | 2023 | ||||
Interest income | $ | 11,290 | $ | 9,855 | $ | 22,171 | $ | 18,686 |
Interest expense | (5,176) | (3,296) | (10,172) | (5,656) | ||||
Net interest income | 6,114 | 6,559 | 11,999 | 13,030 | ||||
Provision for credit losses | 171 | (221) | 38 | 8 | ||||
Investment securities gains (losses) | - | - | - | - | ||||
Gains on sale of mortgages | 1,516 | 1,014 | 2,748 | 1,983 | ||||
Other income | 616 | 666 | 1,154 | 1,170 | ||||
Other expense | (6,167) | (6,397) | (12,011) | (12,667) | ||||
Income before income taxes | 2,250 | 1,621 | 3,928 | 3,524 | ||||
Income taxes | (427) | (307) | (745) | (668) | ||||
Net income | $ | 1,823 | $ | 1,314 | $ | 3,183 | $ | 2,856 |
Earnings per common share (basic) | $ | 0.66 | $ | 0.47 | $ | 1.16 | $ | 1.02 |
Earnings per common share (diluted) | $ | 0.66 | $ | 0.47 | $ | 1.15 | $ | 1.02 |
Return on average assets | 0.86 % | 0.64 % | 0.76 % | 0.72 % | ||||
Return on average equity | 11.26 % | 8.53 % | 9.89 % | 9.40 % | ||||
Net interest margin | 2.99 % | 3.31 % | 2.95 % | 3.38 % | ||||
Efficiency ratio | 74.79 % | 77.64 % | 75.54 % | 78.27 % | ||||
Net charge-offs(recoveries)/average loans | 0.01 % | 0.01 % | 0.01 % | -0.04 % | ||||
Average common shares | 2,755 | 2,768 | 2,751 | 2,788 | ||||
SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS:
This release contains forward-looking statements about Traditions Bancorp, Inc. that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts. These statements can be identified by the use of forward-looking terminology such as"" "believe""," ""expect"," "may," "will," "should," "project," "plan," "seek," "intend," "anticipate" or similar terminology. Such forward-looking statements include, but are not limited to, discussions of strategy, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives, goals, expectations or consequences; and statements about future performance, operations, products and services of Traditions Bancorp.
Traditions Bancorp cautions readers not to place undue reliance on forward-looking statements and to consider possible events or factors that could cause results or performance to materially differ from those expressed in the forward-looking statements, including, but not limited to: ineffectiveness of the organization's business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; interest rate movements; difficulties in integrating distinct business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; volatilities in the securities markets; and deteriorating economic conditions.
Forward-looking statements in this release speak only as of the date of this release and Traditions Bancorp makes no commitment to review or update such statements to reflect changes that occur after the date the forward-looking statement was made.
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SOURCE Traditions Bancorp, Inc.
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