Peak Bancorp, Inc. Announces Q2 2023 Results
07/28/2023 - 11:53 PM
MCCALL, Idaho, July 28, 2023 (GLOBE NEWSWIRE) -- Peak Bancorp, Inc., (the Company) (OTC: IDFB), the holding company for Idaho First Bank (the Bank), today announced unaudited financial results for the quarter ending June 30, 2023.
Chief Executive Officer Todd Cooper commented, “In Q2 2023 our financial performance continues to reflect the terrific work our entire team has done building quality relationships with our bank customers. Continued non-interest expense discipline offset the impact of increasing deposit costs on Net Interest Income. Compared to prior quarter net income after tax decreased slightly impacted by a higher Allowance for Credit Loss reflecting the continued growth in our loan portfolio.”
First Half 2023 vs. First Half 2022
Net Interest Income increased 25% from $8.87 million to $11.06 million as a result of loan and deposit growth, and improved net interest margin. Net Income after tax increased 108% from $1.21 million to $2.52 million which was also the result average earning asset growth combined with improved net interest margin. Mortgage banking income decreased by 82% , from $234 thousand to $43 thousand , due to the continued slowdown in mortgage refinance activity. Noninterest expenses increased 2% , from $7.42 million to $7.60 million , reflecting ongoing cost-control efforts. Stockholder’s equity increased 13% to $47.81 million at period end, which was the result of continued earnings held in the company. Second Quarter 2023 vs. First Quarter 2023
Net Interest Income declined 2% from $5.59 million to $5.47 million , which was driven by an increase in cost of funds. Net Income after tax decreased 5% from $1.29 million to $1.23 million , as a decrease in noninterest expense was offset by an increase in provision for credit losses. Noninterest expenses declined 7% from $3.94 million to $3.66 million . Average loans increased by 6% to $497 million , while average deposits increased 4% to $520 million . Chairman Mark Miller noted, “The board is pleased with the results from the first six months of 2023, a time when banking news was challenging the deposit costs were increasing. The team remained focused on building relationships and controlling costs, and as a result continued to deliver strong financial performance.”
Credit quality and portfolio performance both remain historically strong. A commitment to remaining credit disciplined combined with proactive credit monitoring have resulted in continued strong credit portfolio metrics. The Bank continues to fund the allowance for credit losses to support the growing loan balances. At quarter-end the allowance was $6.39 million or 1.26% of loans. Chief Credit Officer Shannon Stoeger commented, “Our credit and relationship teams continue to show great discipline around maintaining underwriting standards, and closely monitoring the performance of our borrowers. Additionally, the bank remained committed to appropriately funding our Allowance for Credit Loss to support a growing portfolio.”
About Peak Bancorp, Inc.
Peak Bancorp, Inc., is the holding company for Idaho First Bank, a state chartered community bank headquartered in McCall, Idaho. Known for its People First motto, Idaho First Bank serves greater southwest Idaho with branches located in McCall, New Meadows, Eagle, Ketchum, Nampa and Boise, as well as a branch located in Bend, Oregon. Idaho First Bank is a member of the FDIC and an Equal Housing Lender. For more information, visit us at www.idahofirstbank.com
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA’s safe harbor provisions.
Peak Bancorp, Inc. Consolidated Financial Highlights (unaudited) (Dollars in thousands, except per share) For the six months ended June 30: 2023 2022 Change Net interest income $ 11,061 $ 8,872 $ 2,190 25 % Provision for credit losses 675 500 175 35 % Mortgage banking income 43 234 (190 ) -82 % Other noninterest income 572 461 111 24 % Noninterest expenses 7,604 7,420 184 2 % Net income before taxes 3,398 1,646 1,751 106 % Tax provision 879 434 445 103 % Net income $ 2,519 $ 1,212 $ 1,306 108 % At June 30: 2023 2022 Change Loans $ 506,837 $ 433,409 $ 73,427 17 % Allowance for credit losses 6,386 5,089 1,297 25 % Assets 623,490 543,285 80,205 15 % Deposits 547,484 476,738 70,746 15 % Stockholders' equity 47,814 42,209 5,605 13 % Nonaccrual loans - - - Accruing loans more than 90 days past due - - - Other real estate owned - - - Total nonperforming assets - - - Book value per share 8.93 7.89 1.04 13 % Shares outstanding 5,353,575 5,350,651 2,924 0 % Allowance to loans 1.26 % 1.17 % Allowance to nonperforming loans - - Nonperforming loans to total loans 0.00 % 0.00 % Averages for the six months ended June 30: 2023 2022 Change Loans $ 483,710 $ 411,996 $ 71,714 17 % Earning assets 569,010 526,706 42,303 8 % Assets 585,124 543,486 41,638 8 % Deposits 510,149 467,544 42,606 9 % Stockholders' equity 48,462 43,333 5,129 12 % Loans to deposits 95 % 88 % Net interest margin 3.92 % 3.40 %
Peak Bancorp, Inc. Quarterly Consolidated Financial Highlights (unaudited) (Dollars in thousands) Income Statement Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Net interest income $ 5,473 $ 5,588 $ 6,139 $ 5,701 $ 4,773 Provision for credit losses 475 200 250 350 350 Mortgage banking income 17 26 34 45 95 Other noninterest income 304 268 298 292 237 Noninterest expenses 3,662 3,943 3,996 3,800 3,950 Net income before taxes 1,658 1,740 2,226 1,888 806 Tax provision 429 450 568 493 211 Net income $ 1,229 $ 1,290 $ 1,658 $ 1,395 $ 595 Period End Information Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Loans $ 506,837 $ 476,466 $ 479,571 $ 458,533 $ 433,409 Deposits 547,484 507,312 497,406 479,734 476,438 Allowance for credit losses 6,386 5,911 5,711 5,440 5,089 Nonperforming loans - - - 4,300 - Other real estate owned - - - - - Quarterly net charge-offs (recoveries) - - (21 ) (1 ) (1 ) Allowance to loans 1.26 % 1.24 % 1.19 % 1.19 % 1.17 % Allowance to nonperforming loans - - - 126 % - Nonperforming loans to loans 0.00 % 0.00 % 0.00 % 0.94 % 0.00 % Average Balance Information Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Loans $ 496,659 $ 470,617 $ 467,973 $ 446,137 $ 424,540 Earning assets 581,865 556,012 539,094 532,981 526,248 Assets 598,083 572,022 555,157 549,129 543,011 Deposits 520,030 500,159 488,349 483,480 469,957 Stockholders' equity 49,079 47,837 46,309 44,717 43,676 Loans to deposits 96 % 94 % 96 % 92 % 90 % Net interest margin 3.77 % 4.08 % 4.52 % 4.24 % 3.64 %
tcooper@idahofirstbank.com
