Partners Bancorp reports Q3 EPS 25.2c vs 22.8c last year

John Breda, the Company’s President and Chief Executive Officer, commented, “I am very pleased with our operating results for the third quarter of 2023. Net income in the third quarter of 2023 improved by 10.4% when compared to the same period of 2022, and improved by 20.6% when compared to the second quarter of 2023. During the third quarter of 2023, the Company generated loan growth of 1.5%, bringing our year to date growth rate to 5.2%, and we finished the period maintaining strong asset quality. The Company’s total deposits decreased by 1.2% as compared to December 31, 2022, representing minimal deposit outflow in the first nine months of 2023. However, during the third quarter of 2023, the Company’s total deposits increased by 0.3%, signaling a shift away from the negative industry trends experienced during the first half of 2023. As expected, given the continued impact of rising market interest rates, competition for deposits, and increased borrowing costs, the Company experienced an increase in its overall cost of funds during the third quarter of 2023 by 81 basis points when compared to the same period of 2022, and by 12 basis points when compared to the second quarter of 2023. Despite this negative trend, the yields on the Company’s interest-earning assets have continued to increase more than our overall funding costs. As a result, the Company’s net interest margin for the third quarter of 2023 improved by 41 basis points compared to the same period of 2022, and improved by 6 basis points when compared to the second quarter of 2023. I continue to remain very confident in the overall strength of the Company’s balance sheet, including our current asset quality metrics, capital levels, deposit base, and liquidity position.”