FOR IMMEDIATE RELEASE
Contact:
Lindsay S. Bixler
Executive Vice President and Chief Financial Officer
(610) 215-2327
PB BANKSHARES, INC. ANNOUNCES 2023 THIRD QUARTER FINANCIAL RESULTS
Coatesville, Pennsylvania, October 26, 2023 — PB Bankshares, Inc. (the “Company”) (NASDAQ: PBBK), the holding company for Presence Bank (the “Bank”), reported unaudited net income of $513,000 for the three months ended September 30, 2023 and $1,510,000 for the nine months ended September 30, 2023 compared to $414,000 and $1,006,000, respectively, for the same periods in 2022. Diluted earnings per share were $0.21 for the third quarter of 2023 and $0.60 for the first nine months of 2023 compared to $0.16 and $0.39, respectively, for the same periods in 2022.
Income Statement
Net interest income was $3.04 million for the three months ended September 30, 2023 and $9.3 million for the nine months ended September 30, 2023 compared to $2.99 million and $7.7 million, respectively, for the same periods in 2022. The period over period increases for the three and the nine months ended September 30, 2023 compared to the same periods in 2022 was 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 nine months ended September 30, 2023.
The Company recorded a provision for credit losses of $140,000 for the three months ended September 30, 2023 and $570,000 for the nine months ended September 30, 2023 compared to $346,000 and $639,000, respectively, for the same periods in 2022. The decrease in the provision for credit losses for both the three and nine months ended September 30, 2023 compared to the same periods in 2022 was primarily due to loan growth being higher in 2022 and a recovery of the provision for credit losses for unfunded commitments of $12,000 for the three months ended September 30, 2023 and $31,000 for the nine months ended September 30, 2023. There were no charge-offs during the third quarter of 2023. Gross charge-offs for the nine months ended September 30, 2023 were $144,000, which were partially offset by recoveries of $18,000. Delinquencies remain benign, reserves are deemed to be adequate as of September 30, 2023 and the allowance coverage ratio has improved from the third quarter a year ago. The allowance for credit losses was $4.5 million, or 1.35%, of loans outstanding at September 30, 2023 as compared to $4.0 million, or 1.31%, of loans outstanding at December 31, 2022. Total non-performing assets decreased 22.4% to $814,000 at September 30, 2023 from $1.0 million at December 31, 2022 as a result of the payoff of non-performing assets. The non-performing assets to total assets ratio