MOORESVILLE, N.C., May 1, 2024 /PRNewswire/ -- blueharbor bank (the "Bank") today reported net income of $1,336,608 and $0.44 per diluted share for the first quarter of 2024, a decrease of 36%, or $755,879, as compared to $2,092,487 and $0.69 per diluted share for the first quarter of 2023.
The Bank reported total assets of $453.5 million at March 31, 2024, an increase of $37.9 million, or 9%, when compared to $415.6 million at March 31, 2023. Gross loans increased $32.3 million, to $371.4 million at March 31, 2024, from $339.1 million at March 31, 2023. Total deposits were $396.5 million at March 31, 2024, an increase of $31.4 million, or 9%, when compared to $365.1 million at March 31, 2023.
Asset quality remained very strong for the first quarter of 2024, with total non-performing assets representing only 0.01% of total assets at March 31, 2024, which is down slightly from 0.02% reported at March 31, 2023.
Capital levels also remained solid with total risk-based capital at 15.3%, both common equity tier 1 and tier 1 to risk-weighted assets of 14.2%, and tier 1 leverage ratio of 12.2% for the quarter ended March 31, 2024.
Net interest income was $3,764,818 for the quarter ending March 31, 2024, a decrease of $323,438, or 8%, from the same period in 2023. The decrease in net interest income was driven by the 189 basis point increase in the cost of funds. Although the drastic increase in cost of funds, the bank was able to maintain a net interest margin of 3.64% for the quarter ending March 31, 2024.
The bank recorded a quarterly provision for credit losses of $120,155 for the first quarter of 2024, compared to a quarterly provision for credit losses of $40,945 for the same period in 2023. The increase in provision was due to higher loan growth in first quarter 2024 than in the first quarter of 2023. The allowance for loan losses to total loans was 0.95% at March 31, 2024.
Noninterest income was $479,250 for the quarter ended March 31, 2024, a $222,238, or 32%, decrease over the $701,488 that was recorded for the quarter ended March 31, 2023. The decrease was due to the lower income recorded on fund investments.
Noninterest expense was $2,384,066 for the quarter ended March 31, 2024, compared to $2,054,513 for the quarter ended March 31, 2023. The increase of $329,553 was partially due to higher salaries and employee benefits for the addition of two commercial lenders. Data processing expenses also increased during the period due to a greater number of customers and accounts.
Jim Marshall, President and Chief Executive Officer, commented, "Our balance sheet growth was acceptable given the cumulative effect rising interest rates are having on the economy. The credit portfolio continues to perform very nicely given those headwinds. Net interest margins are beginning to expand again with cost of funds stabilizing and asset yields increasing."
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.
Non-GAAP Financial Measures: This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Such non-GAAP financial measures include pre-tax annualized return on assets (ROA), pre-tax annualized return on equity (ROE) and efficiency ratio. Management uses these non-GAAP financial measures to assess the performance of blueharbor bank's core business. Management believes that these non-GAAP financial measures provide meaningful additional information about blueharbor bank to assist investors in evaluating operating results. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.
