Liberty Northwest Bancorp, Inc. Announces 2023 Second Quarter Financial Results
2023 Second Quarter Financial Highlights:
- Total assets were $187.1 million at quarter end.
- Asset quality is excellent with zero nonperforming assets at quarter end.
- Total deposits increased to $ 140.5 million at quarter end.
- Net interest margin of 2.51% for the second quarter.
- Tangible book value per share increased to $7.68 at quarter end.
POULSBO, Wash., July 28, 2023 (GLOBE NEWSWIRE) -- Liberty Northwest Bancorp, Inc. (OTCQX: LBNW) (the “Company”) and its wholly-owned subsidiary Liberty Bank today announced earnings of $18 thousand for the second quarter ended June 30, 2023, compared to $165 thousand reported in the second quarter ended June 30, 2022. In the first six months of 2023, net income was $27 thousand, compared to $204 thousand the same period in 2022.
Total assets increased to $187.1 million as of June 30, 2023, compared to $186.0 million at June 30, 2022. Net loans totaled $138.6 million as of June 30, 2023, compared to $139.8 million at March 31, 2023 and $144.8 million a year ago. Loan demand has tapered off compared to a year ago and was impacted by loan payoffs.
Asset quality improved during the quarter, with no non-performing assets as of June 30, 2023. The allowance for credit losses totaled $1.25 million as of June 30, 2023, and was 0.90% of total loans outstanding. The Company recorded a loan loss recovery of $18 thousand during the quarter. The Company recorded a $50 thousand reversal to its provision for credit losses in the second quarter of 2023, compared to a $30 thousand provision in the first quarter of 2023 and a $75 thousand provision in the second quarter of 2022 as a result of improved credit metrics and performance.
Total deposits increased to $140.5 million at June 30, 2023 compared to $139.1 million at March 31, 2023 and decreased compared to $164.5 million a year earlier. Non-interest bearing demand accounts represented 30.9%, interest bearing demand represented 18.0%, money market and savings accounts comprised 26.6% and certificates of deposit made up 24.5% of the total deposit portfolio at June 30, 2023.
“Deposit growth and pricing remained an industrywide challenge during the second quarter, and we have not been immune to the effects of the Federal Reserve’s tightening monetary policy. Consistent with the rest of the banking industry, we experienced net interest margin contraction during the quarter due to pressure on funding costs,” said Rick Darrow, Liberty Northwest Bancorp, Inc. President and Chief Executive Officer. “We are taking actions to position our balance sheet to mitigate net interest margin compression and anticipate benefitting from rising interest rates in the near term. In addition, we continue to look for opportunities to grow our client base and take advantage of recent market disruptions.”
The Company’s net interest margin was 2.51% for the second quarter of 2023, compared to 2.62% for the preceding quarter, and 3.28% for the second quarter of 2022. For the first six months of 2023, the net interest margin was 2.56%, compared to 3.13% for the first six months of 2022.
Total non-interest income was $130 thousand for the second quarter of 2023, compared to $36 thousand in the second quarter a year ago. The year-over-year 258% increase was primarily due to an increase in referral income. For the first six months of 2023, non-interest income increased to $260 thousand, compared to $105 thousand for the first six months of 2022, an increase of $ 155 thousand or 147%.
Total noninterest expense was $1.27 million for the second quarter of 2023, an increase of $76 thousand, or 6.0%, from the second quarter a year ago. Compensation and benefits costs increased by $37 thousand, or 5.0%, over the prior year quarter. During the fourth quarter of 2022, the Company opened its new headquarters in Poulsbo. The banking center is in a desirable location in Poulsbo and is large enough to accommodate future growth for the bank well into the next decade. Occupancy costs increased by 12.0% from prior quarter of last year. Year-to-date, total noninterest expense decreased $20 thousand, or 1.0%, to $2.5 million, over the same period in 2022.
Capital ratios continue to exceed regulatory requirements, with a total risk-based capital ratio at 15.48% substantially above well-capitalized regulatory requirements. The tangible book value per share was $7.68 at quarter end, compared to $7.45 a year earlier.
The Company reported the level of uninsured deposits at quarter end was approximately 29% at June 30, 2023, compared to 27% three months earlier, excluding the collateralized portion of public deposits.
“Our brand of community banking is being well received in the markets that we serve, and we will continue to work to create value for our shareholders and our customers,” said Darrow. “Ultimately, we are proud to have created the ability to provide shareholders greater access to liquidity and increased market value transparency. With a strong capital position, a diversified balance sheet, ample liquidity and excellent credit quality, we believe we have a solid foundation upon which to continue to improve our financial performance.”
About Liberty Northwest Bancorp, Inc.
Liberty Northwest Bancorp, Inc. is the bank holding company for Liberty Bank, a commercial bank chartered in the State of Washington. The Bank began operations June 11, 2009, and operates a full-service branch in Poulsbo, WA in addition to a loan production office in Bellevue, WA. The Bank provides loan and deposit services to predominantly small and middle-sized businesses and individuals in and around Kitsap and King counties. The Bank is subject to regulation by the State of Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). For more information, please visit www.libertybanknw.com. Liberty Northwest Bancorp, Inc. (OTCQX: LBNW), qualified to trade on the OTCQX® Best Market in June 2022. For information related to the trading of LBNW, please visit www.otcmarkets.com.
For further discussion, please contact the following:
Rick Darrow, Chief Executive Officer | 360-394-4750
Joel Keller, Chief Financial Officer | 360-394-4752
Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Liberty Northwest Bancorp, Inc.’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “likely,” “anticipate,” “expect,” “looking forward,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve’s actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Liberty Northwest Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.
| STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| Quarter Ended June 30, 2023 | Quarter Ended March 31, 2023 | Three Month Change | Quarter Ended June 30, 2022 | One Year Change | Year to Date June 30, 2023 | Year to Date June 30, 2022 | One Year Change | |||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||||||||||
| Loans | $ | 1,783 | $ | 1,686 | 6 | % | $ | 1,508 | 18 | % | $ | 3,469 | $ | 2,854 | 22 | % | ||||||||||||||
| Interest bearing deposits in banks | 82 | 41 | 100 | % | 16 | 402 | % | 123 | 27 | 362 | % | |||||||||||||||||||
| Securities | 114 | 110 | 4 | % | 90 | 26 | % | 224 | 180 | 24 | % | |||||||||||||||||||
| Total interest income | 1,979 | 1,856 | 7 | % | 1,614 | 23 | % | 3,835 | 3,061 | 25 | % | |||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||||||
| Deposits | 515 | 425 | 21 | % | 74 | 596 | % | 940 | 134 | 600 | % | |||||||||||||||||||
| Other Borrowings | 352 | 308 | 15 | % | 100 | 253 | % | 660 | 201 | 229 | % | |||||||||||||||||||
| Total interest expense | 867 | 733 | 18 | % | 174 | 399 | % | 1,600 | 335 | 378 | % | |||||||||||||||||||
| Net Interest Income | 1,112 | 1,123 | -1 | % | 1,441 | -23 | % | 2,234 | 2,726 | -18 | % | |||||||||||||||||||
| Provision for Loan Losses | (50 | ) | 30 | -267 | % | 75 | -167 | % | (20 | ) | 90 | -122 | % | |||||||||||||||||
| Net interest income after provision for loan losses | 1,162 | 1,093 | 6 | % | 1,366 | -15 | % | 2,254 | 2,636 | -14 | % | |||||||||||||||||||
| Non-Interest Income | ||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 18 | 15 | 18 | % | 11 | 55 | % | 33 | 24 | 39 | % | |||||||||||||||||||
| Other non-interest income | 112 | 115 | -3 | % | 25 | 353 | % | 227 | 81 | 179 | % | |||||||||||||||||||
| Total non-interest income | 130 | 130 | -0 | % | 36 | 258 | % | 260 | 105 | 147 | % | |||||||||||||||||||
| Non-Interest Expense | ||||||||||||||||||||||||||||||
| Salaries and employee benefits | 720 | 693 | 4 | % | 683 | 5 | % | 1,412 | 1,444 | -2 | % | |||||||||||||||||||
| Occupancy and equipment expenses | 158 | 141 | 12 | % | 141 | 12 | % | 299 | 291 | 3 | % | |||||||||||||||||||
| Other operating expenses | 391 | 359 | 9 | % | 368 | 6 | % | 752 | 748 | 1 | % | |||||||||||||||||||
| Total non-interest expenses | 1,269 | 1,193 | 6 | % | 1,193 | 6 | % | 2,463 | 2,483 | -1 | % | |||||||||||||||||||
| Net Income Before Income Tax | 23 | 12 | 97 | % | 209 | -89 | % | 35 | 258 | -87 | % | |||||||||||||||||||
| Provision for Income Tax | (5 | ) | (2 | ) | 97 | % | (44 | ) | -89 | % | (7 | ) | (54 | ) | -87 | % | ||||||||||||||
| Net Income | $ | 18 | $ | 9 | 97 | % | $ | 165 | -89 | % | $ | 27 | $ | 204 | -87 | % | ||||||||||||||
| BALANCE SHEETS (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| June 30, 2023 |
March 31, 2023 |
Three Month Change |
June 30, 2022 |
One Year Change |
|||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from Banks | $ | 2,352 | $ | 2,574 | -9 | % | $ | 4,381 | -46 | % | |||||||||
| Interest bearing deposits in banks | 12,674 | 9,468 | 34 | % | 4,524 | 180 | % | ||||||||||||
| Securities | 23,069 | 23,793 | -3 | % | 24,769 | -7 | % | ||||||||||||
| Loans | 139,844 | 141,085 | -1 | % | 146,375 | -4 | % | ||||||||||||
| Allowance for loan losses | (1,252 | ) | (1,284 | ) | -2 | % | (1,615 | ) | -22 | % | |||||||||
| Net Loans | 138,592 | 139,801 | -1 | % | 144,759 | -4 | % | ||||||||||||
| Premises and fixed assets | 6,615 | 6,689 | -1 | % | 5,580 | 19 | % | ||||||||||||
| Accrued Interest receivable | 642 | 644 | -0 | % | 618 | 4 | % | ||||||||||||
| Intangible assets | 52 | 59 | -11 | % | 78 | -33 | % | ||||||||||||
| Other assets | 3,107 | 2,429 | 28 | % | 1,316 | 136 | % | ||||||||||||
| Total Assets | $ | 187,104 | $ | 185,457 | 1 | % | $ | 186,026 | 1 | % | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Demand, non-interest bearing | $ | 43,382 | $ | 42,214 | 3 | % | $ | 52,799 | -18 | % | |||||||||
| Interest Bearing Demand | 25,288 | 23,733 | 7 | % | 38,042 | -34 | % | ||||||||||||
| Money Market and Savings | 37,339 | 36,643 | 2 | % | 59,974 | -38 | % | ||||||||||||
| Certificates of Deposit | 34,476 | 36,485 | -6 | % | 13,700 | 152 | % | ||||||||||||
| Total Deposits | 140,486 | 139,074 | 1 | % | 164,516 | -15 | % | ||||||||||||
| Total Borrowing | 33,415 | 33,407 | 0 | % | 8,884 | 276 | % | ||||||||||||
| Accrued interest payable | 238 | 108 | 120 | % | 72 | 232 | % | ||||||||||||
| Other liabilities | 365 | 413 | -11 | % | 348 | 5 | % | ||||||||||||
| Total Liabilities | 174,504 | 173,002 | 1 | % | 173,820 | 0 | % | ||||||||||||
| Shareholders' Equity | |||||||||||||||||||
| Common Stock | 1,638 | 1,633 | 0 | % | 1,627 | 1 | % | ||||||||||||
| Additional paid in capital | 13,081 | 13,038 | 0 | % | 13,004 | 1 | % | ||||||||||||
| Retained Earnings | (1,501 | ) | (1,519 | ) | -1 | % | (1,863 | ) | -19 | % | |||||||||
| Other Comprehensive Income | (619 | ) | (697 | ) | -11 | % | (562 | ) | 10 | % | |||||||||
| Total Shareholders' Equity | 12,600 | 12,455 | 1 | % | 12,206 | 3 | % | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 187,104 | $ | 185,457 | 1 | % | $ | 186,026 | 1 | % | |||||||||
| Quarter Ended June 30, 2023 | Quarter Ended Mar 31, 20223 | Quarter Ended June 30, 2022 | YTD 2023 | YTD 2022 | |||||||||||||||||
| Financial Ratios | |||||||||||||||||||||
| Return on Average Assets | 0.04 | % | 0.02 | % | 0.35 | % | 0.03 | % | 0.22 | % | |||||||||||
| Return on Average Equity | 0.58 | % | 0.29 | % | 5.39 | % | 0.44 | % | 3.31 | % | |||||||||||
| Efficiency Ratio | 105.9 | % | 96.6 | % | 80.8 | % | 99.5 | % | 87.7 | % | |||||||||||
| Net Interest Margin | 2.51 | % | 2.62 | % | 3.28 | % | 2.56 | % | 3.13 | % | |||||||||||
| Loan to Deposits | 98.7 | % | 100.5 | % | 89.0 | % | |||||||||||||||
| Tangible Book Value per Share | 7.68 | 7.59 | 7.45 | ||||||||||||||||||
| Book Value per Share | 7.72 | 7.63 | 7.50 | ||||||||||||||||||
| Earnings per Share | 0.01 | 0.01 | 0.10 | 0.02 | 0.13 | ||||||||||||||||
| Asset Quality | |||||||||||||||||||||
| Net Loan Charge-offs (recoveries) | (18 | ) | $ | - | - | ||||||||||||||||
| Nonperforming Loans | - | $ | 647 | $ | 1,167 | ||||||||||||||||
| Nonperforming Assets to Total Assets | 0.00 | % | 0.35 | % | 0.63 | % | |||||||||||||||
| Allowance for Loan Losses to Total Loans | 0.90 | % | 0.91 | % | 1.10 | % | |||||||||||||||
| Other Real Estate Owned | $ | - | $ | - | - | ||||||||||||||||
| CAPITAL (Bank only) | |||||||||||||||||||||
| Tier 1 leverage ratio | 9.54 | % | 9.42 | % | 8.60 | % | |||||||||||||||
| Tier 1 risk-based capital ratio | 14.43 | % | 14.21 | % | 13.00 | % | |||||||||||||||
| Total risk based capital ratio | 15.48 | % | 15.28 | % | 14.25 | % | |||||||||||||||
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
