blueharbor bank Achieves Strong Earnings in Q4 2024

blueharbor bank Reports Impressive Fourth Quarter Earnings

blueharbor bank, a prominent community financial institution, demonstrated remarkable performance during the fourth quarter of the 2024 fiscal year. Achieving noteworthy financial milestones, the Bank's solid growth and operational efficiency have reinforced its standing in the banking sector.

Key Highlights from the Fourth Quarter

As of the fourth quarter, blueharbor bank witnessed several significant accomplishments:

• The Bank surpassed $500 million in total assets, a notable achievement reflecting robust growth.
• Return on average assets (ROA) stood at 1.72%, showcasing effective asset utilization.
• Return on average equity (ROE) reached an impressive 15.30%, indicating strong profitability for shareholders.
• The net interest margin remained commendable at 4.09%, signaling efficient interest income management.
• Loan growth was recorded at $28.7 million during the quarter, translating into a 7% increase; yearly growth reached an impressive $76.0 million, topping 21%.
• Book value increased by 10%, reaching $18.63 compared to the previous year's close.

Financial Performance Overview

In the fourth quarter, blueharbor bank reported net income of $2,112,751, equating to $0.70 per diluted share. This marks a significant 40% increase, or an additional $601,979, compared to the net income of $1,510,772 and $0.50 per diluted share in the corresponding quarter of 2023. For the twelve-month period concluding in December, the Bank reported net income of $6,786,909, with earnings per diluted share settling at $2.25, illustrating a slight 5% decrease year-on-year.

The Bank's total assets stood at $506.8 million by the end of December, reflecting an 18% increase from $430.1 million at year-end 2023. Additionally, gross loans grew to $432.8 million, marking a robust 21% rise from the previous year. Deposits also saw a healthy boost, climbing to $440.7 million with an 18% annual increase.

Asset Quality and Capitalization

In terms of asset quality, blueharbor bank maintained exemplary standards, reporting no non-performing assets at the year's end—a significant decrease from 0.01% of non-performing loans recorded at the close of 2023. Further, the bank's capital ratios remain robust, with total risk-based capital at 14.2% and both common equity tier 1 and tier 1 capital at 13.2%. The tier 1 leverage ratio was reported at a strong 12.0%, reinforcing the Bank's stable financial foundation.

Growth in Net Interest Income

The net interest income for the fourth quarter was reported at $4,744,017, marking a 29% increase of $1,066,547 compared to the same period in 2023. This rise was driven largely by a increase in average interest-earning assets by $63.4 million alongside a 63 basis point enhancement in yields.

For the year, net interest income reached $17,338,217, reflecting a 13% increase year-on-year, which was primarily due to loan growth and enhanced rates on interest-earning assets.

Management Commentary

Jim Marshall, President and Chief Executive Officer, expressed his satisfaction with the Bank's performance, particularly regarding loan and deposit growth. He noted that the quarter's loan growth could potentially set a record, with expectations of continued upward momentum due to late-quarter bookings that would benefit future interest income.

Marshall reiterated that customer optimism appears to be a prevalent sentiment, with increased spending noted on capital improvements. He anticipates this positive trend to extend into 2025.

Conclusion

blueharbor bank's unwavering focus on solid financial practices, efficient capital management, and growth initiatives has set the stage for a vibrant future. With considerable achievements in Q4 2024, the Bank is poised to navigate the unfolding economic landscape effectively.

Frequently Asked Questions

What were blueharbor bank's earnings in the fourth quarter?

The bank reported net income of $2,112,751, translating to $0.70 per diluted share for the fourth quarter of 2024.

How much did the bank's assets increase?

blueharbor bank's assets exceeded $500 million, reflecting an increase of 18% compared to the previous year.

What is the return on equity for blueharbor bank?

The return on average equity (ROE) for the fourth quarter was 15.30%.

How did loan growth perform during the quarter?

Loan growth amounted to $28.7 million for the quarter, achieving a 7% increase.

What is the outlook for blueharbor bank moving forward?

The management expressed optimism for continued growth in loans and deposits, anticipating strong performance in 2025.

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