FOR IMMEDIATE RELEASE
Contact:
Lindsay S. Bixler
Executive Vice President and Chief Financial Officer
(610) 215-2327
PB BANKSHARES, INC. ANNOUNCES 2023 SECOND QUARTER FINANCIAL RESULTS
Coatesville, Pennsylvania, July 26, 2023 — PB Bankshares, Inc. (the “Company”) (NASDAQ: PBBK), the holding company for Presence Bank (the “Bank”), reported unaudited net income of $588,000 for the three months ended June 30, 2023 and $997,000 for the six months ended June 30, 2023 compared to $347,000 and $592,000, respectively, for the same periods in 2022. Diluted earnings per share were $0.23 for the second quarter of 2023 and $0.39 for the first six months of 2023 compared to $0.14 and $0.23, respectively, for the same periods in 2022.
Income Statement
Net interest income was $3.2 million for the three months ended June 30, 2023 and $6.3 million for the six months ended June 30, 2023 compared to $2.5 million and $4.7 million, respectively, for the same periods in 2022. The period over period increases for the three and six months ended June 30, 2023 were primarily due to the increase in interest income on loans driven by the increase in average loans, as well as increases in cash and federal funds sold and securities interest income as a result of rising interest rates, partially offset by increases in deposit and borrowings interest expense also as a result of rising interest rates. There were two non-accrual loans that paid off in the second quarter of 2023, resulting in $261,000 of interest income recognition for the three and six months ended June 30, 2023.
The Company recorded a provision for credit losses of $247,000 for the three months ended June 30, 2023 and $430,000 for the six months ended June 30, 2023 compared to $203,000 and $293,000, respectively, for the same periods in 2022. The increase in the provision for credit losses for both the three and six months ended June 30, 2023 compared to the same periods in 2022 was primarily due to loan growth during the current periods and partially offset by a reduction of the provision for credit losses for unfunded commitments of $45,000 for the three months ended June 30, 2023 and $18,000 for the six months ended June 30, 2023. An additional partial charge-off of a previously written down commercial and industrial loan for $69,000 was taken during the second quarter of 2023, fully charging off the loan, partially offset by recoveries of $1,000. Gross charge-offs for the six months ended June 30, 2023 were $144,000, which were partially offset by recoveries of $17,000. Delinquencies remain benign, reserves are deemed to be adequate as of June 30, 2023 and the allowance coverage ratio has improved from the second quarter a year ago. The allowance for credit losses was $4.3 million, or 1.34%, of loans outstanding at June 30, 2023 as compared to $4.0 million, or 1.31%, of loans outstanding at December 31, 2022. Total non-performing assets decreased 19.0% to $850,000 at June 30, 2023 from $1.0 million at December 31, 2022. The non-performing assets to total assets ratio improved by six basis points to 0.21% at June 30, 2023 from 0.27% as of December 31, 2022.