blueharbor bank Reports First Quarter 2025 Net Income
MWN-AI** Summary
blueharbor bank announced a strong financial performance for the first quarter of 2025, reporting a net income of $2.39 million, translating to earnings of $0.79 per diluted share. This marks a notable 79% increase compared to the same quarter in 2024, when net income stood at $1.34 million or $0.44 per diluted share. The bank's return on average assets (ROA) reached 1.93%, while the return on average equity (ROE) surged to 17.21%.
Net interest income also showed significant growth, rising by 30% year-over-year to approximately $4.88 million, driven by a $68.4 million increase in average loans and a 46 basis point rise in yield on earning assets. Additionally, total assets rose to $522.3 million, a 15% increase from $453.5 million a year earlier, with total gross loans reaching $435 million, up from $371.4 million.
As for total deposits, they climbed to $457.5 million, reflecting a robust 15% increase from $396.5 million in March 2024. Importantly, blueharbor bank maintained strong asset quality with no non-performing assets reported, a reduction from 0.01% in the prior year.
Management's commentary reflects confidence in the ongoing performance amid economic uncertainties, emphasizing the bank's solid credit quality and proactive customer engagement.
Overall, blueharbor bank’s results highlight a significant upward trajectory in profitability, asset growth, and operational efficiency, coupled with healthy capital ratios. With a book value of $19.48 per share and a prudent approach to credit losses, the bank positions itself well in a competitive market.
MWN-AI** Analysis
Blueharbor Bank's first-quarter 2025 results show significant growth, with net income rising 79% year-over-year to $2.39 million, and a remarkable 80% increase in diluted earnings per share. Key performance metrics, including a return on average assets (ROA) of 1.93% and a return on average equity (ROE) of 17.21%, reflect strong operational efficiency and robust asset management.
The increase in net interest income by 30% to $4.88 million, driven by a notable 46 basis point rise in yield on earning assets and healthy loan growth, highlights the bank's successful lending strategy. The net interest margin has remained high at 4.16%, which is attractive in a rising interest rate environment. Additionally, with no non-performing assets reported, the bank demonstrates exceptional asset quality.
Investors should note the significant asset growth, with an increase of 15% to $522.3 million compared to the previous year. Deposits also grew substantially, reflecting confidence among customers. The bank's book value rose to $19.48, a 5% increase from the previous year, which enhances shareholders' equity and stability.
However, while these results are encouraging, investors should remain cautious as broader economic uncertainties persist, which could affect banks like Blueharbor in the future. The bank's ability to manage risks, including interest rate fluctuations and potential changes in credit quality, will be critical.
In conclusion, Blueharbor Bank appears well-positioned for growth in 2025. Current shareholders may benefit from holding their positions, while potential investors should consider initiating buys, especially given the bank's low non-performing assets and high ROE. Continued monitoring of economic conditions and interest rate trends will be essential before making significant investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
MOORESVILLE, N.C. , April 22, 2025 /PRNewswire/ -- blueharbor bank (the "Bank") today reported earnings for the first quarter of 2025.
First Quarter 2025 Highlights
- Diluted earnings per share increase of 80% over 1 st quarter 2024
- Return on average assets (ROA) of 1.93%
- Return on average equity (ROE) of 17.21%
- 46 basis point increase in yield on earning assets when compared to 1 st quarter 2024
- Net interest margin remained high at 4.16%
- Efficiency ratio of 43.63%
- Book value of $19.48 , an increase of 5% over December 31, 2024
blueharbor bank reported net income of $2,392,947 and $0.79 per diluted share for the first quarter of 2025, an increase of 79%, or $1,056,339 , as compared to $1,336,608 and $0.44 per diluted share for the first quarter of 2024.
The Bank reported total assets of $522.3 million at March 31, 2025 , an increase of $68.8 million , or 15%, when compared to $453.5 million at March 31, 2024 . Gross loans increased $63.6 million , to $435.0 million at March 31, 2025 , from $371.4 million at March 31, 2024 . Total deposits were $457.5 million at March 31, 2025 , an increase of $61.0 million , or 15%, when compared to $396.5 million at March 31, 2024 .
Asset quality remained very strong for the first quarter of 2025, with no non-performing assets, which is down from 0.01% reported at March 31, 2024 .
Capital levels also remained solid with total risk-based capital at 14.5%, both common equity tier 1 and tier 1 to risk-weighted assets of 13.5%, and tier 1 leverage ratio of 12.1% for the quarter ended March 31, 2025 .
Net interest income was $4,878,315 for the quarter ending March 31, 2025 , an increase of $1,113,497 , or 30%, from the same period in 2024. The change in net interest income was driven by a $68.4 million increase in average loans outstanding and a 46 basis point increase in the yield on earning assets.
The bank recorded a quarterly reduction in the provision for credit losses of ($13,377) for the first quarter of 2025, compared to a quarterly provision for credit losses of $120,155 for the same period in 2024. The decrease in provision was due to lower loan growth in first quarter 2025 than in the first quarter of 2024. The allowance for loan losses to total loans was 0.95% at March 31, 2025 .
Noninterest income was $537,090 for the quarter ended March 31, 2025 , a $57,840 , or 12%, increase over the $479,250 that was recorded for the quarter ended March 31, 2024 . The increase was due partially to the higher service charge fees and debit card income from the increase in the number of deposit accounts over the period. Another factor contributing to the change was an increase in mortgage loan fees.
Noninterest expense was $2,362,635 for the quarter ended March 31, 2025 , compared to $2,384,066 for the quarter ended March 31, 2024 . The decrease of $21,431 was due to lower data processing expenses from the change in our core software provider in May 2024 .
Jim Marshall , President and Chief Executive Officer, commented, "We continue to be pleased with our performance through the first quarter of 2025 despite increasing uncertainties surrounding the economy. Our credit quality remains solid as we maintain close contact with our customer base."
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.
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.
CONTACT :
Jim Marshall
President and Chief Executive Officer
blueharbor bank
(704) 662-7700
Summary Selected Financial Data | |||||
(Unaudited) | (Audited) | (Unaudited) | |||
March 31, | December 31, | March 31, | |||
Balance Sheet Data: | 2025 | 2024 | 2024 | ||
Total Assets | 522,293,347 | 506,756,753 | 453,519,552 | ||
Total Gross Loans | 434,977,897 | 432,756,829 | 371,403,724 | ||
Allowance for Loan Losses | 4,124,685 | 4,131,598 | 3,542,165 | ||
Total Deposits | 457,470,974 | 440,733,082 | 396,463,888 | ||
Total Shareholders' Equity | 57,720,715 | 49,402,722 | 50,733,678 |
(Unaudited) | |||
Three Months Ended | |||
March 31, | |||
Earnings and Per Share Data: | 2025 | 2024 | |
Interest Income | 6,965,753 | 5,665,697 | |
Interest Expense | 2,087,438 | 1,900,879 | |
Net Interest Income | 4,878,315 | 3,764,818 | |
Provision for Loan Losses | (13,377) | 120,155 | |
Net Interest Income after | |||
Provision for Loan Losses | 4,891,692 | 3,644,663 | |
Noninterest Income | 537,090 | 479,250 | |
Noninterest Expense | 2,362,635 | 2,384,066 | |
Net Income before Taxes | 3,066,147 | 1,739,847 | |
Income Taxes | 673,200 | 403,239 | |
Net Income | 2,392,947 | 1,336,608 | |
Basic Income per Share | 0.81 | 0.46 | |
Diluted Income per Share | 0.79 | 0.44 | |
Annualized Performance Ratios: | |||
Return on average assets | 1.93 % | 1.22 % | |
Return on average equity | 17.21 % | 10.72 % | |
Efficiency ratio | 43.63 % | 56.17 % | |
Overhead ratio | 37.42 % | 50.60 % | |
Net Interest Margin | 4.16 % | 3.64 % | |
Cost of Funds | 2.70 % | 2.79 % |
(Unaudited) | (Unaudited) | ||
March 31, | March 31, | ||
2025 | 2024 | ||
Financial Ratios: | |||
Book Value | 19.48 | 17.21 | |
Nonperforming Assets to Total Assets Ratio | 0.00 % | 0.01 % | |
Loan to Deposit Ratio | 95.1 % | 98.2 % | |
Tier 1 Leverage Ratio | 12.1 % | 12.2 % | |
Common Equity Tier 1 Risk-Based Capital Ratio | 13.5 % | 14.2 % | |
Tier 1 Risk-Based Capital Ratio | 13.5 % | 14.2 % | |
Total Risk-Based Capital Ratio | 14.5 % | 15.3 % |
SOURCE blueharbor bank
FAQ**
How did BlueHarbor Bank BLHK achieve a remarkable 80% increase in diluted earnings per share in the first quarter of 2025 compared to the same period in 2024?
What factors contributed to the significant rise in net interest income for BlueHarbor Bank BLHK, which increased by 30% year-over-year for the first quarter of 2025?
With asset quality remaining strong, what strategies is BlueHarbor Bank BLHK implementing to maintain no non-performing assets and the reduced provision for credit losses?
Given the economic uncertainties highlighted by CEO Jim Marshall, how does BlueHarbor Bank BLHK plan to sustain growth and manage risk moving forward in 2025?
**MWN-AI FAQ is based on asking OpenAI questions about BlueHarbor Bank (OTC: BLHK).
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