Reports Q4 net interest margin 3.50% vs. 3.77% for Q3 and 3.57% for 4Q21. Tangible book value per common share increased to $17.43 at December 31, 2022, or 6.3%, vs. $16.40 at September 30, 2022 and decreased 9.2% compared to $19.20 at December 31, 2021. CEO John D’Angelo said, "This year presented unique challenges due to a rapidly rising interest rate environment and tightening financial conditions. Despite the effects of the macroeconomic environment, we reported record annual net income of $35.7M. In Q4, we experienced strong organic loan growth of 5.0%, or 20.0% annualized, and the loan portfolio reached an all-time high of over $2.1B. Credit quality metrics improved further as nonperforming loans represented only 0.51% of total loans compared to 0.65% in Q3, and we continue to experience minimal loss from charge-offs. Loan yields increased in Q4 as we originated new loans, completed renewals at higher rates, and realized the benefits of the variable rate portion of our loan portfolio. However, our cost of short-term borrowings increased as a result of interest rate hikes by the Federal Reserve, and we repriced deposits with a focus on short-term maturities to take market share in our core markets, which compressed our margin. In anticipation of a continued transitional interest rate environment, we have strategically positioned our balance sheet for long-term value creation…In 1Q23, the sale of our two south Texas branches is expected to close, and we will consolidate an additional branch located in our Louisiana market…"
Published first on TheFly
