On February 26, 2025, PB Bankshares Inc (PBBK, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. As a community bank, PB Bankshares Inc provides a range of services to individuals and small to midsize businesses, focusing on attracting retail and commercial deposits and investing in various loan types.
Financial Performance and Challenges
PB Bankshares Inc reported a net income of $681,000 for the fourth quarter of 2024, an increase from $409,000 in the same period of 2023. For the full year, net income was $1,772,000, slightly down from $1,919,000 in 2023. Diluted earnings per share (EPS) were $0.29 for the fourth quarter and $0.76 for the year, compared to $0.17 and $0.77, respectively, in 2023. The company's performance is crucial as it reflects its ability to generate profits and sustain growth amidst a challenging economic environment.
Key Financial Achievements
Total interest and dividend income grew by 18.4% to $23.5 million for the year, driven by increased interest income on loans. This growth is significant for PB Bankshares Inc as it underscores the bank's ability to leverage its assets effectively in a high-interest rate environment. Additionally, the company achieved a 7.1% growth in gross loans, highlighting its focus on expanding its commercial lending portfolio.
Income Statement Highlights
Net interest income for the fourth quarter was $2.9 million, slightly up from $2.8 million in the same period of 2023. For the full year, net interest income was $11.1 million, down from $12.1 million in 2023, primarily due to increased interest expenses on deposits. The company recorded a reversal of provision for credit losses, reflecting improved credit quality and lower unfunded commitments.
Balance Sheet and Cash Flow Insights
Total assets increased by 2.6% to $451.3 million at the end of 2024, with significant growth in net loans receivable and cash equivalents. The bank's deposit base grew by 6.4% to $354.2 million, supporting its liquidity position. Stockholders' equity rose to $48.7 million, driven by net income and a reduction in accumulated other comprehensive loss.
Commentary and Analysis
The increase in noninterest income for the year was primarily due to a $487,000 gain on the sale of the Oxford Branch, demonstrating our strategic focus on optimizing branch locations," stated Lindsay S. Bixler, Executive Vice President and Chief Financial Officer.
PB Bankshares Inc's strategic initiatives, such as the relocation of the Oxford Branch, have contributed to its financial performance. The bank's focus on commercial lending and maintaining a strong allowance for credit losses are critical in managing risks and ensuring financial stability.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (Q4) | $681,000 | $409,000 |
| Net Income (Annual) | $1,772,000 | $1,919,000 |
| Diluted EPS (Q4) | $0.29 | $0.17 |
| Diluted EPS (Annual) | $0.76 | $0.77 |
| Total Assets | $451.3 million | $439.7 million |
| Total Deposits | $354.2 million | $333.0 million |
Overall, PB Bankshares Inc's financial results for 2024 reflect a stable performance with strategic growth in key areas. The bank's ability to navigate a high-interest rate environment and manage credit risks effectively positions it well for future challenges and opportunities in the banking sector.
Explore the complete 8-K earnings release (here) from PB Bankshares Inc for further details.
