MOORESVILLE, N.C., Jan. 24, 2025 /PRNewswire/ -- blueharbor bank (the "Bank") today reported earnings for the fourth quarter of 2024.
Fourth Quarter 2024 Highlights
Exceeded $500 million in assets.
Return on average assets (ROA) of 1.72%
Return on average equity (ROE) of 15.30%
Net interest margin remained high at 4.09%
Loan growth of $28.7 million, or 7%, for the quarter and $76.0 million, or 21% for the year
Book value of $18.63, an increase of 10% over December 31, 2023
blueharbor bank reported net income of $2,112,751 and $0.70 per diluted share for the fourth quarter of 2024, an increase of 40% or $601,979 as compared to $1,510,772 and $0.50 per diluted share for the fourth quarter of 2023. For the twelve months ended December 31, 2024, the Bank is reporting net income of $6,786,909 and $2.25 per diluted share, a decrease of 5% or $373,054 as compared to $7,159,963 and $2.36 per diluted share for the same twelve months in 2023.
The Bank reported total assets of $506.8 million at December 31, 2024, an increase of $76.7 million, or 18%, when compared to $430.1 million at December 31, 2023. Gross loans increased $76.0 million, or 21%, to $432.8 million at December 31, 2024, from $356.8 million at December 31, 2023. Total deposits were $440.7 million at December 31, 2024, an increase of $65.9 million, or 18%, when compared to $374.8 million at December 31, 2023. Total shareholders' equity was $55.2 million at December 31, 2024, an increase of $5.8 million, or 12%, when compared to $49.4 million at December 31, 2023.
Asset quality remained very strong for 2024, with no non-performing assets at December 31, 2024, down from 0.01% of non-performing loans to total assets at December 31, 2023.
Capital levels also remained very solid at December 31, 2024, with total risk based capital at 14.2%, both common equity tier 1 and tier 1 to risk-weighted assets of 13.2%, and tier 1 leverage ratio of 12.0%.
Net interest income was $4,744,017 for the quarter ending December 31, 2024, an increase of $1,066,547 or 29%, from the same period in 2023. The change in net interest income was driven by a $63.4 million increase in average interest earning assets and a 63 basis point increase in the yield on earning assets.
Net interest income was $17,338,217 for the twelve months ending December 31, 2024, an increase of $1,942,378, or 13%, from the same period in 2023. The increase was due to loan growth and greater yields on interest earning assets, offset partially by an increase in the cost of funds.
Provision for loan losses for the quarter ended December 31, 2024, was $266,446 compared to $113,463 for the same period in 2023. Provision for loan losses for the year ended December 31, 2024, was $711,630 compared to $233,943 recorded for the year ended December 31, 2023. The allowance for loan losses to total loans was 0.95% at December 31, 2024.
Noninterest income was $573,112 for the quarter ended December 31, 2024, compared to $675,681 for the quarter ended December 31, 2023, a decrease of $102,569, or 15%. Noninterest income was $2,201,528 for the year ended December 31, 2024, a decrease of $543,796 over $2,745,324 that was recorded for the year ended December 31, 2023.
Noninterest Expense was $2,453,364 for the quarter ended December 31, 2024, compared to $2,300,334 for the quarter ended December 31, 2023. The increase of $153,030, or 7% was due primarily to an increase in salaries and employee benefits for the addition of three employees. This increase was offset partially by lower data processing fees due to the change of our core processing provider.
Noninterest Expense was $10,198,448 for the year ended December 31, 2024, compared to $8,701,281 for the year ended December 31, 2023. The increase of $1,497,167 was due to an increase in salaries and employee benefits for the addition of three employees. Offsetting part of this increase was a decrease in reserves for unfunded commitments.
Jim Marshall, President and Chief Executive Officer, commented, "We are extremely pleased with our performance in the fourth quarter especially with our loan and deposit growth. Loan growth may be a record quarter, and with the majority being booked late within the quarter, so the true interest income benefits will be felt in the first quarter of 2025 and beyond. Optimism appears to be a common theme we are hearing with many customers ramping up spending on plant, equipment, and inventory late in the fourth quarter. We expect this to continue deep into the first half of 2025 and maybe beyond.
Our capital position, credit quality, efficiency, and earnings strength continue to position us for a very nice 2025 and among the strongest and best performing community banks in the country."
blueharbor bank is headquartered in Mooresville with branches in Statesville and Mount Airy 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.
