blueharbor bank Reports First Quarter 2022 Net Income

Rhea-AI Summary

blueharbor bank (OTC-PINK: BLHK) reported a net income of $1,266,733 ($0.42 per diluted share) for Q1 2022, up 9% from $1,157,275 ($0.38) in Q1 2021. The bank's total assets reached $443.4 million, rising 8% from $410.8 million. Gross loans increased to $301.4 million, with organic loan growth at 24%. Total deposits also grew by 9% to $399.4 million. Despite strong asset quality and solid capital levels, the bank noted potential challenges due to inflation and rising interest rates.

Positive

• Net income increased 9% to $1,266,733 compared to Q1 2021.
• Total assets rose 8% to $443.4 million.
• Gross loans increased to $301.4 million, with organic loan growth of 24%.
• Total deposits grew by 9% to $399.4 million.
• Strong asset quality with non-performing assets at 0.02%.

Negative

• Provisions for loan losses of $151,234 were recorded, compared to none in Q1 2021.
• Concerns regarding potential increases in delinquencies due to inflation and rising interest rates.

MOORESVILLE, N.C., April 21, 2022 /PRNewswire/ -- blueharbor bank (OTC-PINK: BLHK) (the "Bank") today reported net income of $1,266,733 and $0.42 per diluted share for the first quarter of 2022, an increase of 9%, or $109,458, as compared to $1,157,275 and $0.38 per diluted share for the first quarter of 2021.

The Bank reported total assets of $443.4 million at March 31, 2022, an increase of $32.6 million, or 8%, when compared to $410.8 million at December 31, 2021. Gross loans increased $15.1 million, to $301.4 million at March 31, 2022, from $286.3 million at December 31, 2021. Organic loan growth, excluding Paycheck Protection Program ("PPP") forgiveness of $1.4 million, was $16.5 million, or 24% annualized, for the first quarter of 2022. Total deposits were $399.4 million at March 31, 2022, an increase of $32.7 million, or 9%, when compared to $366.7 million at December 31, 2021. The growth in deposits consisted mainly of core deposits which increased $40.5 million, or 12%, to $375.9 million at March 31, 2022, compared to $335.4 million at December 31, 2021.

Asset quality remained very strong for the first quarter of 2022, with total non-performing assets representing only 0.02% of total assets at March 31, 2022. This percentage is the same as reported at December 31, 2021.

Capital levels also remained solid with total risk-based capital at 13.4%, both common equity tier 1 and tier 1 to risk-weighted assets of 12.5%, and tier 1 leverage ratio of 9.5% for the quarter ended March 31, 2022.

Net interest income was $2,955,322 for the quarter ending March 31, 2022, an increase of $452,724, or 18%, from the same period in 2021. The increase in net interest income was due to the increase in our investment portfolio, loan growth and the steady decrease in our cost of funds over the past 12 months.

There were $151,234 in provisions for loan losses recorded in the quarter ending March 31, 2022, and no provisions for loan losses recorded in the quarter ending March 31, 2021. The allowance for loan losses to total loans was 1% at March 31, 2022.

Noninterest income was $690,896 for the quarter ended March 31, 2022, an increase of $52,117 over $638,779 that was recorded for the quarter ended March 31, 2021. This increase is due to income recorded on fund investments, offset by a decrease in mortgage fees.

Noninterest Expense was $1,865,963 for the quarter ended March 31, 2022, compared to $1,660,617 for the quarter ended March 31, 2021. The increases of $205,346 was due to increases in salary and benefit expenses and data processing fees.

Jim Marshall, President and Chief Executive Officer, commented, "We are very pleased with our first quarter results of 2022 and are cautiously optimistic the economic rebound will continue to gain steam throughout the year. We are watching closely headwinds presented in inflation, rising interest rates and global unrest in eastern Europe. Consumer spending may soften and delinquencies may increase with inflationary challenges and variable rate debt increases. Likewise commercial and small business lending may soften a bit due to this rising rate environment. However, our pipeline of new business opportunities continues to be robust as we work through a year that will have challenges to our economy."

blueharbor bank is headquartered in Mooresville with additional branches in Huntersville, Statesville and Downtown Mooresville and loan production offices in Belmont and Morehead City. blueharbor bank's website is www.blueharborbank.com and our common stock is quoted on the Pink 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)
	March 31,		December 31,
Balance Sheet Data:	2022		2021
Total Assets	$         443,421,760		$         410,808,535
Total Gross Loans	301,398,721		286,275,297
Allowance for Loan Losses	3,013,987		2,862,753
Total Deposits	399,429,779		366,731,922
Total Shareholders' Equity	39,526,454		39,990,927
	(Unaudited)
	Three Months Ended
	March 31,
Earnings and Per Share Data:	2022		2021
Interest Income	$              3,092,699		$              2,787,276
Interest Expense	137,377		284,678
Net Interest Income	2,955,322		2,502,598
Provision for Loan Losses	151,234		-
Net Interest Income after
Provision for Loan Losses	2,804,088		2,502,598
Noninterest Income	690,896		638,779
Noninterest Expense	1,865,963		1,660,617
Net Income before Taxes	1,629,021		1,480,760
Income Taxes	362,288		323,485
Net Income	$              1,266,733		$              1,157,275
Basic Income per Share	$                        0.43		$                        0.40
Diluted Income per Share	$                        0.42		$                        0.38
Annualized Performance Ratios:
Return on average assets	1.18%		1.41%
Return on average equity	12.73%		13.05%
Efficiency ratio	51.2%		52.9%
Overhead ratio	39.8%		40.8%
	(Unaudited)		(Unaudited)
	March 31,		March 31,
	2022		2021
Financial Ratios:
Book Value	$                      13.41		$                      12.35
Texas Ratio	0.20%		2.14%
Nonperforming Assets to Total Assets Ratio	0.02%		0.23%
Tier 1 Leverage Ratio	9.5%		10.9%
Common Equity Tier 1 Risk-Based Capital Ratio	12.5%		14.5%
Tier 1 Risk-Based Capital Ratio	12.5%		14.5%
Total Risk-Based Capital Ratio	13.4%		15.6%

 

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SOURCE blueharbor bank

FAQ

What is blueharbor bank's net income for Q1 2022?

blueharbor bank reported a net income of $1,266,733 for Q1 2022.

How much did blueharbor bank's total assets increase in Q1 2022?

Total assets increased by 8%, reaching $443.4 million.

What was the growth rate of gross loans for blueharbor bank in Q1 2022?

Gross loans grew by 24% on an organic basis, totaling $301.4 million.

What changes occurred in blueharbor bank's total deposits in Q1 2022?

Total deposits increased by 9% to $399.4 million.

What concerns did blueharbor bank express in their Q1 2022 report?

The bank expressed concerns about potential increases in delinquency rates due to inflation and rising interest rates.