01/27/2022 | Press release | Distributed by Public on 01/27/2022 04:59
YORK, Pa., Jan. 27, 2022 /PRNewswire/ -- Traditions Bancorp, Inc. (OTC Pink: TRBK) reported net income of $1.7 million for the fourth quarter ended December 31, 2021, compared to $2.3 million for the fourth quarter of 2020. While this represents a $608 thousand, or 27%, decrease from the fourth quarter of 2020, the results reflect a normalization of mortgage banking activities following the unprecedented prior year refinancing boom. Expenditures associated with the company's regional expansion beyond York County have temporarily contributed to the decline in net income, but these investments are beginning to yield favorable results. Net income for 2021 was $8.2 million compared to $8.4 million the prior year. On a per share basis, the corporation reported $2.68 earnings per share (diluted) in 2021 compared to $2.66 per share in 2020. The book value per common share was $22.87 on December 31, 2021 versus $20.72 as of December 31, 2020.
"2021 was a pivotal year for Traditions Bancorp with the accomplishment of several significant milestones, including the evolution of the organization's brand, the formation of a bank holding company, and a successful regional expansion into the Lancaster market. Other notable events included the $7.1 million repurchase of the corporation's common stock, which has already started to have a positive impact on our financial metrics, and the payment of the special cash dividend in March to reward our shareholders for entrusting Traditions Bancorp with their investment," stated Eugene J. Draganosky, President and Chief Executive Officer. "Despite the headwinds of an uncertain economic environment and the ongoing pandemic, our associates' determination to deliver strong performance is a continuing testament to our organization's culture and solidifies our commitment to the communities we serve. Following impressive fourth quarter 2021 commercial lending production, we remain confident that we will enter 2022 from a position of strength due to the increased demand for business loans across our footprint, supplemented by new opportunities created through our geographic expansion. Our balance sheet is also well positioned to respond to any future upward change in interest rates."
Quarterly Highlights - 4th Quarter 2021 versus 4th Quarter 2020
YTD Highlights - Twelve Months Ended December 31, 2021 versus Twelve Months Ended December 31, 2020
Credit Quality and Capital Insights:
FINANCIAL HIGHLIGHTS (unaudited): |
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Selected Financial Data |
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Dec 31, 2021 |
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Dec 31, 2020 |
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|
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Investment securities |
$ |
140,188 |
$ |
79,357 |
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|
|
|
Loans, net of unearned income |
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519,305 |
|
465,513 |
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|
|
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Allowance for loan loss |
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7,151 |
|
7,046 |
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|
|
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Total assets |
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749,094 |
|
640,562 |
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|
|
|
Deposits |
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677,299 |
|
567,075 |
|
|
|
|
Borrowings |
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- |
|
42 |
|
|
|
|
Shareholders' equity |
|
65,148 |
|
66,628 |
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|
|
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Book value per common share |
$ |
22.87 |
$ |
20.72 |
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|
|
|
Allowance/loans |
|
1.38% |
|
1.51% |
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|
|
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Non-performing assets/total assets |
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0.39% |
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0.55% |
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|
|
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Tier 1 capital/average assets |
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8.87% |
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10.13% |
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|
|
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Tier 1 capital/risk-weighted assets |
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12.67% |
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14.38% |
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|
|
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Total capital/risk-weighted assets |
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14.07% |
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15.63% |
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Three months ended Dec 31, |
Twelve months ended Dec 31, |
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Selected Operations Data |
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2021 |
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2020 |
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2021 |
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2020 |
Interest income |
$ |
5,913 |
$ |
6,291 |
$ |
22,954 |
$ |
23,678 |
Interest expense |
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(270) |
|
(682) |
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(1,503) |
|
(3,693) |
Net interest income |
|
5,643 |
|
5,609 |
|
21,451 |
|
19,985 |
Provision for loan losses |
|
- |
|
(700) |
|
(100) |
|
(4,338) |
Investment securities gains(losses) |
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- |
|
- |
|
1 |
|
181 |
Gains on sale of mortgages |
|
1,941 |
|
3,245 |
|
10,754 |
|
12,543 |
Other income |
|
539 |
|
445 |
|
1,977 |
|
2,009 |
Other expense |
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(6,074) |
|
(5,794) |
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(23,835) |
|
(19,947) |
Income before income taxes |
|
2,049 |
|
2,805 |
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10,248 |
|
10,433 |
Income taxes |
|
(399) |
|
(547) |
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(2,037) |
|
(2,065) |
Net income |
$ |
1,650 |
$ |
2,258 |
$ |
8,211 |
$ |
8,368 |
Earnings per common share (basic) |
$ |
0.58 |
$ |
0.72 |
$ |
2.70 |
$ |
2.67 |
Earnings per common share (diluted) |
$ |
0.57 |
$ |
0.72 |
$ |
2.68 |
$ |
2.66 |
Return on average assets |
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0.89% |
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1.40% |
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1.18% |
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1.38% |
Return on average equity |
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10.11% |
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13.95% |
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12.40% |
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13.84% |
Net interest margin |
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3.21% |
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3.65% |
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3.24% |
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3.48% |
Efficiency ratio |
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74.78% |
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62.31% |
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69.73% |
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57.45% |
Net charge-offs(recoveries)/average loans |
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0.00% |
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0.01% |
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0.00% |
|
0.26% |
Average common shares |
|
2,864 |
|
3,142 |
|
3,046 |
|
3,133 |
SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS:
This release contains forward-looking statements about Traditions Bancorp, Inc. that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," "anticipate" or similar terminology. Such forward-looking statements include, but are not limited to, discussions of strategy, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives, goals, expectations or consequences; and statements about future performance, operations, products and services of Traditions Bancorp.
Traditions Bancorp cautions readers not to place undue reliance on forward-looking statements and to consider possible events or factors that could cause results or performance to materially differ from those expressed in the forward-looking statements, including, but not limited to: ineffectiveness of the organization's business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; interest rate movements; difficulties in integrating distinct business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; volatilities in the securities markets; and deteriorating economic conditions.
Forward-looking statements in this release speak only as of the date of this release and Traditions Bancorp makes no commitment to review or update such statements to reflect changes that occur after the date the forward-looking statement was made.
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SOURCE Traditions Bancorp, Inc.