blueharbor bank Reports Second Quarter 2024 Net Income

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blueharbor bank (BLHK) reported Q2 2024 net income of $1,429,588 ($0.47 per diluted share), down from $1,889,135 ($0.62 per diluted share) in Q2 2023. Key highlights include:

- 11% year-over-year increase in book value
- Net interest margin expansion of 25 basis points to 3.89% over Q1 2024
- 19.5% annualized loan growth in H1 2024
- 15.9% annualized deposit growth in H1 2024
- 27% increase in interest income over Q2 2023
- 9% growth in net interest income over Q2 2023

Total assets reached $463.3 million, up 10% year-over-year. The bank maintained strong asset quality with non-performing assets at 0.01% of total assets. Capital levels remained solid with a total risk-based capital ratio of 14.9%.

Positive

11% year-over-year increase in book value
Net interest margin expansion of 25 basis points to 3.89% over Q1 2024
19.5% annualized loan growth in H1 2024
15.9% annualized deposit growth in H1 2024
27% increase in interest income over Q2 2023
9% growth in net interest income over Q2 2023
Strong asset quality with non-performing assets at 0.01% of total assets
Solid capital levels with total risk-based capital ratio of 14.9%
Approval to repurchase up to $1 million in outstanding common stock

Negative

Net income decreased from $1,889,135 in Q2 2023 to $1,429,588 in Q2 2024
Earnings per diluted share decreased from $0.62 in Q2 2023 to $0.47 in Q2 2024
Provision for loan losses increased by $224,348 compared to Q2 2023
Noninterest expense increased by $543,400 compared to Q2 2023

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07/25/2024 - 03:58 PM

MOORESVILLE, N.C., July 25, 2024 /PRNewswire/ -- blueharbor bank (the "Bank") today reported earnings for the second quarter of 2024.

Second Quarter 2024 Highlights

Cash dividend of $0.20 per share declared.
Book value increased 11% year over year.
Net interest margin expansion over first quarter 2024 of 25 basis points to 3.89%.
Loan growth of $35 million, or 19.5% annualized, for the first six months of 2024
Deposit growth of $30 million, or 15.9% annualized, for the first six months of 2024.
Interest Income growth of $1.3 million, or 27% over second quarter 2023.
Net Interest Income growth of $347,000, or 9% over second quarter 2023.
Successful core processing software conversion in May, which provided many enhancements for our customers.
Mount Airy full-service office anticipated to open early September.

blueharbor bank reported net income of $1,429,588 and $0.47 per diluted share for the second quarter of 2024 compared to $1,889,135 and $0.62 per diluted share for the second quarter of 2023. For the six months ended June 30, 2024, the Bank reported net income of $2,766,196 and $0.92 per diluted share compared to $3,981,622 and $1.30 per diluted share for the same six months in 2023.

The Bank reported total assets of $463.3 million at June 30, 2024, an increase of $33.2 million, or 8%, when compared to $430.1 million at December 31, 2023, and an increase of $40.5 million, or 10%, when compared to June 30, 2023. Gross loans increased $34.5 million, to $391.3 million at June 30, 2024, from $356.8 million at December 31, 2023. When compared to June 30, 2023, gross loans increased $50.1 million, or 15%. Total deposits were $404.4 million at June 30, 2024, an increase of $29.6 million, or 8%, when compared to $374.8 million at December 31, 2023, and an increase of $33.1 million, or 9% when compared to June 30, 2023.

Asset quality remained very strong with total non-performing assets representing only 0.01% of total assets at June 30, 2024. This ratio has remained the same since June 30, 2023.

Capital levels also remained very solid at the end of the second quarter with total risk-based capital at 14.9%, both common equity tier 1 and tier 1 to risk-weighted assets of 13.8%, and tier 1 leverage ratio of 12.0%.

Net interest income was $4,207,508 for the quarter ending June 30, 2024, an increase of $346,548, or 9%, from the same period in 2023. The change in net interest income was due to loan growth for the period.

For the quarter ending June 30, 2024, $232,541 in provision for loan losses was recorded. This is an increase of $224,348 from the provision for loan losses of $8,193 that was recorded in the quarter ended June 30, 2023. The increase in provision was attributable to the loan growth during the second quarter of 2024 as compared to the second quarter of 2023. The allowance for loan losses to total loans was 0.97% at June 30, 2024.

Noninterest expense was $2,663,598 for the quarter ended June 30, 2024, compared to $2,120,198 for the quarter ended June 30, 2023. The increase of $543,400 was due to increased salary and employee benefit expenses, increase in the reserve for unfunded loan commitments, and increase in data processing expenses.

Jim Marshall, President and Chief Executive Officer, commented, "We continue to be pleased with our second quarter and year to date results. Coming on the heels of an outstanding first half of 2023 that also saw tremendous increases, starting in mid-year, of interest expenses. Those interest expense increases of 152% were immediate and impactful. As we are able to gradually improve our asset yields each month, our net interest margin and profitability continue to improve nicely as well.

The Bank has received regulatory approval to repurchase up to $1 million in value of its outstanding common stock. Our Board of Directors has concluded that repurchases of the Bank's outstanding shares from time to time in privately negotiated and market transactions will provide additional liquidity for our shareholders. Additionally, the Board believes that such repurchases will enhance the longer-term value of our shareholders' investments in the Bank."

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)	(Unaudited)
	June 30,	December 31,	June 30,
Balance Sheet Data:	2024	2023	2023

Total Assets	$ 463,313,580	$ 430,128,638	$ 422,820,175
Total Gross Loans	391,336,334	356,796,709	341,277,760
Allowance for Loan Losses	3,787,206	3,422,010	3,237,206
Total Deposits	404,429,345	374,829,306	371,365,080
Total Shareholders' Equity	51,878,068	49,402,722	46,694,327

	(Unaudited)		(Unaudited)
	Three Months Ended		Six Months Ended
	June 30,		June 30,
Earnings and Per Share Data:	2024	2023	2024	2023

Interest Income	$ 6,249,732	$ 4,917,190	$ 11,915,430	$ 9,514,078
Interest Expense	2,042,224	1,056,230	3,943,104	1,564,862
Net Interest Income	4,207,508	3,860,960	7,972,326	7,949,216
Provision for Loan Losses	232,541	8,193	352,695	49,138
Net Interest Income after
Provision for Loan Losses	3,974,967	3,852,767	7,619,631	7,900,078
Noninterest Income	523,164	696,823	1,002,414	1,398,311
Noninterest Expense	2,663,598	2,120,198	5,047,665	4,174,711
Net Income before Taxes	1,834,533	2,429,392	3,574,380	5,123,678
Income Taxes	404,945	540,257	808,184	1,142,056
Net Income	$ 1,429,588	$ 1,889,135	$ 2,766,196	$ 3,981,622

Basic Income per Share	$ 0.48	$ 0.64	$ 0.94	$ 1.36
Diluted Income per Share	$ 0.47	$ 0.62	$ 0.92	$ 1.30

Annualized Performance Ratios:
Return on average assets	1.25 %	1.82 %	1.23 %	1.95 %
Return on average equity	11.13 %	16.41 %	10.93 %	17.86 %
Efficiency ratio	56.3 %	46.5 %	56.2 %	44.7 %
Overhead ratio	50.9 %	36.9 %	50.7 %	34.9 %
Net Interest Margin	3.89 %	3.97 %	3.77 %	4.15 %
Cost of Funds	2.84 %	1.77 %	2.82 %	1.35 %

	(Unaudited)	(Unaudited)
	June 30,	June 30,
	2024	2023
Financial Ratios:
Book Value	$ 17.43	$ 15.75
Nonperforming Assets to Total Assets Ratio	0.01 %	0.01 %
Loan to Deposit Ratio	96.8 %	95.2 %
Tier 1 Leverage Ratio	12.0 %	12.0 %
Common Equity Tier 1 Risk-Based Capital Ratio	13.8 %	14.2 %
Tier 1 Risk-Based Capital Ratio	13.8 %	14.2 %
Total Risk-Based Capital Ratio	14.9 %	15.2 %

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SOURCE blueharbor bank

FAQ

What was blueharbor bank's (BLHK) net income for Q2 2024?

blueharbor bank reported net income of $1,429,588 for Q2 2024.

How much did blueharbor bank's (BLHK) loans grow in the first half of 2024?

blueharbor bank's loans grew by $35 million, or 19.5% annualized, in the first six months of 2024.

What was blueharbor bank's (BLHK) net interest margin in Q2 2024?

blueharbor bank's net interest margin expanded by 25 basis points to 3.89% in Q2 2024 compared to Q1 2024.

How much did blueharbor bank's (BLHK) deposits grow in the first half of 2024?

blueharbor bank's deposits grew by $30 million, or 15.9% annualized, in the first six months of 2024.

What was blueharbor bank's (BLHK) total assets as of June 30, 2024?

blueharbor bank reported total assets of $463.3 million as of June 30, 2024.

blueharbor bank Reports Second Quarter 2024 Net Income