MOORESVILLE, N.C., Jan. 26, 2024 /PRNewswire/ -- blueharbor bank (the "Bank") today reported net income of $1,510,772 and $0.50 per diluted share for the fourth quarter of 2023, a decrease of 26% or $535,250 as compared to $2,046,022 and $0.68 per diluted share for the fourth quarter of 2022. For the twelve months ended December 31, 2023, the Bank is reporting net income of $7,159,963 and $2.36 per diluted share, an increase of 4% or $256,776 as compared to $6,903,187 and $2.28 per diluted share for the same twelve months in 2022.
The Bank reported total assets of $430.1 million at December 31, 2023, an increase of $23.7 million, or 6%, when compared to $406.4 million at December 31, 2022 . Gross loans increased $21.3 million, or 6%, to $356.8 million at December 31, 2023, from $335.5 million at December 31, 2022 . Total deposits were $374.8 million at December 31, 2023, an increase of $15.3 million, or 4%, when compared to $359.5 million at December 31, 2022 . Total shareholders' equity was $49.4 million at December 31, 2023, an increase of $6.9 million, or 16%, when compared to $42.5 million at December 31, 2022 .
Asset quality remained very strong for 2023, with total non-performing assets representing only 0.01% of total assets at December 31, 2023, down 1 basis point from December 31, 2022 .
Capital levels also remained very solid at December 31, 2023, with total risk based capital at 15.3%, both common equity tier 1 and tier 1 to risk-weighted assets of 14.3%, and tier 1 leverage ratio of 12.4%.
Net interest income was $3,677,470 for the quarter ending December 31, 2023, a decrease of $457,433, or 11%, from the same period in 2022. The change in net interest income was driven by the 211 basis points increase in the cost of funds.
Net interest income was $15,395,839 for the twelve months ending December 31, 2023, an increase of $1,157,108, or 8%, from the same period in 2022. The increase was due to loan growth and greater yields on interest earning assets, offset partially by an increase in the cost of funds. The Bank's net interest margin for the year ended December 31, 2023 was 3.93% up 34 basis points from net interest margin for the year ended December 31, 2022 .
Provision for loan losses for the quarter ended December 31, 2023, was $113,463 compared to $110,338 for the same period in 2022. Provision for loan losses for the year ended December 31, 2023, was $233,943 compared to $283,696 recorded for the year ended December 31, 2022 . The allowance for loan losses to total loans was 0.96% at December 31, 2023 .
Noninterest income was $675,681 for the quarter ended December 31, 2023, compared to $610,617 for the quarter ended December 31, 2022, an increase of $65,064, or 11%. Noninterest income was $2,745,324 for the year ended December 31, 2023, an increase of $52,692 over $2,692,632 that was recorded for the year ended December 31, 2022 .
Noninterest Expense was $2,300,334 for the quarter ended December 31, 2023, compared to $2,002,118 for the quarter ended December 31, 2022 . The increase of $298,216, or 15% was due primarily to an increase in salaries and employee benefits for the addition of two employees and an increase in data processing fees due to a greater number of customers and accounts.
Noninterest Expense was $8,701,281 for the year ended December 31, 2023, compared to $7,767,458 for the year ended December 31, 2022 . The increase of $933,823 was due to several factors as follows:
- Increase in salaries and employee benefits for the addition of two employees.
- Increase in data processing fees due to a greater number of customers and accounts.
- Professional fees paid for the Current Expected Credit Loss (CECL) model review and for core contract consulting.
- Increase in regulatory fees due to higher FDIC assessment rates.
- Increase in the reserve for unfunded commitments. This is a reserve that was created with the adoption of the CECL accounting standard in January 2023 .
Jim Marshall, President and Chief Executive Officer, commented, "Given all the economic pressure and turmoil in 2023, we continue to be pleased with our performance for the 4th quarter and the year in whole. Credit quality remains very solid and is performing as expected when underwritten and through our internal and external stress testing. Capital remains very solid and has been increasing nicely during 2023 and our ratios remain in excess of that to be considered well capitalized by our primary regulator, the FDIC. Tangible book value per share has seen a very nice increase in 2023 and is up 16.58%. We have recently added two new commercial lenders to our team that we think will help with loan and deposit growth in 2024. One will be in Hickory, and adjacent Catawba County . The second was the former Market President for Truist in Iredell County, our home county, and will be assisting Mooresville and Statesville .
"Given the growth in deposit pricing, our net interest margin and profitability continue to be impacted. While the rate of impact is decreasing, we expect this to moderate in the first half of 2024. Our philosophy of controlled growth and disciplined strategies remains and further illustrates why we continue to be one of the soundest banks in North Carolina and the country."
blueharbor bank is headquartered in Mooresville with a branch in Statesville and loan production offices in Belmont and Hickory . blueharbor bank's website is www.blueharborbank.com and our common stock is quoted on the OTCQX Market under the symbol "BLHK."
Summary Selected Financial Data Schedule attached below.
Forward-Looking Statement:
This press release contains forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "intends," "should," "will," variations of such words and similar expressions are intended to identify forward-looking statements. These statements reflect management's current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. As such, actual results and outcomes may materially differ from what may be expressed or forecast in such forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit levels, loan demand and asset quality, including real estate and other collateral values; changes in banking regulations and accounting principles, policies or guidelines; and the impact of competition from traditional or new sources. These and other factors that may emerge could cause decisions and actual results to differ materially from current expectations. blueharbor bank takes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this press release.
Summary Selected Financial Data | ||||||||
(Unaudited) | (Audited) | |||||||
December 31, | December 31, | |||||||
Balance Sheet Data: | 2023 | 2022 | ||||||
Total Assets | $ 430,128,638 | $ 406,356,659 | ||||||
Total Gross Loans | 356,796,709 | 335,496,493 | ||||||
Allowance for Loan Losses | 3,422,010 | 3,171,448 | ||||||
Total Deposits | 374,829,306 | 359,486,348 | ||||||
Total Shareholders' Equity | 49,402,722 | 42,490,336 | ||||||
(Unaudited) | (Unaudited) | |||||||
Three Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | |||||||
Earnings and Per Share Data: | 2023 | 2022 | 2023 | 2022 | ||||
Interest Income | $ 5,342,849 | $ 4,424,179 | $ 20,037,716 | $ 14,917,840 | ||||
Interest Expense | 1,665,379 | 289,276 | 4,641,877 | 679,109 | ||||
Net Interest Income | 3,677,470 | 4,134,903 | 15,395,839 | 14,238,731 | ||||
Provision for Loan Losses | 113,463 | 110,338 | 233,943 | 283,696 | ||||
Net Interest Income after | ||||||||
Provision for Loan Losses | 3,564,007 | 4,024,565 | 15,161,896 | 13,955,035 | ||||
Noninterest Income | 675,681 | 610,617 | 2,745,324 | 2,692,632 | ||||
Noninterest Expense | 2,300,334 | 2,002,118 | 8,701,281 | 7,767,458 | ||||
Net Income before Taxes | 1,939,354 | 2,633,064 | 9,205,939 | 8,880,209 | ||||
Income Taxes | 428,582 | 587,042 | 2,045,976 | 1,977,022 | ||||
Net Income | $ 1,510,772 | $ 2,046,022 | $ 7,159,963 | $ 6,903,187 | ||||
Basic Income per Share | $ 0.52 | $ 0.70 | $ 2.46 | $ 2.37 | ||||
Diluted Income per Share | $ 0.50 | $ 0.68 | $ 2.36 | $ 2.28 | ||||
Annualized Performance Ratios: | ||||||||
Return on average assets | 1.41 % | 1.98 % | 1.72 % | 1.63 % | ||||
Return on average equity | 12.50 % | 19.41 % | 15.44 % | 17.01 % | ||||
Efficiency ratio | 52.8 % | 42.2 % | 48.0 % | 45.9 % | ||||
Overhead ratio | 44.2 % | 33.7 % | 38.7 % | 35.6 % | ||||
Net Interest Margin | 3.67 % | 4.28 % | 3.93 % | 3.59 % | ||||
Cost of Funds | 2.60 % | 0.49 % | 1.91 % | 0.27 % | ||||
(Unaudited) | (Unaudited) | |||||||
December 31, | December 31, | |||||||
2023 | 2022 | |||||||
Financial Ratios: | ||||||||
Book Value | $ 16.87 | $ 14.47 | ||||||
Texas Ratio | 0.08 % | 0.16 % | ||||||
Nonperforming Assets to Total Assets Ratio | 0.01 % | 0.02 % | ||||||
Loan to Deposit Ratio | 95.2 % | 93.3 % | ||||||
Tier 1 Leverage Ratio | 12.4 % | 11.2 % | ||||||
Common Equity Tier 1 Risk-Based Capital Ratio | 14.3 % | 13.4 % | ||||||
Tier 1 Risk-Based Capital Ratio | 14.3 % | 13.4 % | ||||||
Total Risk-Based Capital Ratio | 15.3 % | 14.3 % | ||||||
SOURCE blueharbor bank
