Princeton Bancorp Inc
For the period ended Jun 30, 2024. Filed Aug 12, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 12, 2024
BPRN$44.54+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001193125-24-138317
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001193125-24-198936
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 95 current paragraphs.
51 unchanged; 18 reworded; 20 added; 6 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 9 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Cash and cash equivalents increased $748 thousand, or 0.50%, to $151.3 million at June 30, 2024 compared to December 31, 2023.
Current report
The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied and nonowner-occupied CRE loans, was $1.19 billion or 75.8% of total loans of $1.57 billion at June 30, 2024. The Company’s CRE loan portfolio included $463.6 million or 38.8% of the total in multi-family loans, $352.5 million or 29.6% of the total innon-owner-occupied loans, $348.0 million or 29.1% of the total in owner-occupied loans and $30.3 million or 2.5% of the total in land loans. The Company’snon-owner-occupied portfolio by property type included $90.7 million in office buildings, $77.7 million in retail, $69.5 million in industrial warehousing, $43.6 million inmixed-use, $17.1 million in restaurants, $7.9 million in healthcare and $46.0 million in other. There were 585 loans in the Company’s CRE portfolio with an average and median loan size of $2.0 million and $0.6 million, respectively. Loan to Value (“LTV”) estimates are less than 70% for $1.10 billion or 92.3% of the CRE portfolio and less than 80% for $1.18 billion or 99.2% of the CRE portfolio.
Current report
The following table presents the commercial real estate portfolio by property type along with the weighted average loan to value for the periods presented (dollars in thousands):
Current report
The following table presents the geographic markets of the commercial real estate portfolio for the periods presented (dollars in thousands):
Current report
For the three-month andsix-month periods ended June 30, 2024, charge-offs were $84 thousand and $367 thousand, and recoveries were $99 thousand and $206 thousand. For the three-month andsix-month periods ended June 30, 2023, charge-offs were $1.9 million for both periods, and recoveries were $27 thousand and $30 thousand, respectively. The coverage ratio of the allowance for credit losses to period end loans was 1.17% at June 30, 2024 and 1.19% at December 31, 2023.
Current report
Totalnon-interest income was $2.1 million for the three-months ended June 30, 2024, a decrease of $9.5 million or 82.0% when compared to the same prior year period. The decrease was primarily due to the bargain purchase gain of $9.7 million attributed to the acquisition of Noah Bank, which closed in May 2023.
Current report
Totalnon-interest expense was $12.0 million for the three-months ended June 30, 2024, a decrease of $5.8 million or 32.6% when compared to the same prior year period. The decrease was due primarily to $7.0 million in merger-related expenses recorded, $667 thousand more in salaries and benefits expense and $145 thousand more in occupancy and equipment expenses during the three-months ended June 30, 2023 that were all primarily associated with the Noah Bank acquisition in 2023.
Current report
General
Current report
The Company reported net income of $9.5 million, or $1.48 per diluted common share, for thesix-month period ended June 30, 2024, compared to net income of $12.9 million, or $2.02 per diluted common share, for the same period in 2023. The decrease in net income for thesix-month period ended June 30, 2024, compared to the same period in 2023, was primarily due to acquisition-related items recorded during 2023 due to the acquisition of Noah Bank. In addition, net interest income declined $906 thousand over the two periods for the reasons described below.
Current report
Interest income
Current report
Interest expense
Current report
Provision for credit losses
Current report
The Company recorded a $68 thousand provision for credit losses for thesix-month period ended June 30, 2024 and recorded $2.7 million provision for credit losses for thesix-month period ended June 30, 2023. The decrease for thesix-month period ended June 30, 2024, compared with the same prior year period, is primarily due to $1.7 million of the provision related tonon-purchased credit deteriorated loans acquired in the Noah Bank acquisition and net charge-offs of $1.8 million recorded for thesix-month period ended June 30, 2023. For thesix-month periods ended June 30, 2024, charge-offs were $367 thousand, and recoveries were $206 thousand.
Current report
Non-interest income
Current report
For thesix-month period ended June 30, 2024, non-interest income decreased $8.9 million or 68.5%, from the samesix-month period in 2023, primarily due to the $9.7 million bargain purchase gain from the Noah acquisition recorded in thesix-month period ended June 30, 2023.
Current report
Non-interest expense
Current report
For thesix-month period ended June 30, 2024, non-interest expense was $23.8 million, compared to $27.6 million for the same period in 2023. This decrease was primarily due to acquisition-related expenses of $7.0 million in the prior year period, partially offset by increases in salaries and employee benefits of $1.8 million and occupancy and equipment expense of $833 thousand.
Current report
Provision for income taxes
Current report
For thesix-month period ended June 30, 2024, the Bank recorded an income tax expense of $2.1 million, resulting in an effective tax rate of 18.2%, compared to an income tax expense of $2.1 million resulting in an effective tax rate of 13.8% for thesix-month period ended June 30, 2023. The effective tax rate for thesix-month period ended June 30, 2023 was substantially lower as a result of thenon-taxable bargain purchase gain related to the Noah acquisition.
Current report
Rate/Volume Analysis
Removed paragraphs (6)
Previous report
Cash and cash equivalents increased $21.5 million, or 14.29%, to $172.1 million at March 31, 2024 compared to December 31, 2023. This increase was primarily related to deposit growth of approximately $69.9 and partially offset by increases inavailable-for-sale securities of $26.7 million and in total loans of $22.9 million.
Previous report
Charge-offs for first quarter of 2024 were $283 thousand and recoveries were $107 thousand compared to the fourth quarter of 2023 which recorded charge offs of $55 thousand and recoveries of $65 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.18% at March 31, 2024 and 1.19% at December 31, 2023.
Previous report
Liquidity (continued)
Previous report
Capital Resources (continued)
Previous report
Totalnon-interest income of $2.0 million for the first quarter of 2024 increased $611 thousand, when compared to the quarter ended March 31, 2023. The increase over the first quarter of 2023 was due to increases in loan fees of $373 thousand, $163 thousand of othernon-interest income, and $91 thousand in bank owned life insurance income.
Previous report
Totalnon-interest expense for the first quarter of 2024 increased $2.1 million or 21.1% from the first quarter of 2023. The increase was due primarily to increases in salaries and employee benefits and occupancy and equipment expenses of $1.1 million and $688 thousand, respectively. This increase can be attributed in part to the acquisition of Noah Bank which occurred in the second quarter of 2023.
Reworded paragraphs (18)
Previous wording
These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the integration of the businesses of the Company and Cornerstone Financial Corporation “Cornerstone” following the completion of the business combination with Cornerstone Transaction, may be more difficult, time-consuming or costly than expected; the ability to obtain required regulatory and shareholder approvals, and the ability to complete the Transaction on the expected timeframe may be more difficult, time-consuming or costly than expected; the global impact of the regional conflicts around the world, including the Ukraine and the Middle East; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Company’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Company’s products and services; credit risk associated with the Company’s lending activities; risks relating to the real estate market and the Company’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; and the timing and nature of the regulatory response to any applications fil…
Excerpt shortened here; the source contains the full paragraph.
Current wording
These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the integration of the businesses of the Company and Cornerstone Financial Corporation (“Cornerstone”) following the completion of the business combination with Cornerstone, may be more difficult, time-consuming or costly than expected; the ability to complete the transaction on the expected timeframe may be more difficult, time-consuming or costly than expected; the global impact of the regional conflicts around the world, including the Ukraine and the Middle East; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Company’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Company’s products and services; credit risk associated with the Company’s lending activities; risks relating to the real estate market and the Company’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; other acquisitions; changes …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 22 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation (“FDIC”).
Current wording
The Company is the holding company for The Bank of Princeton (the “Bank”), a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 22 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation (“FDIC”).
Previous wording
On October 19, 2022, the Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Cornerstone Financial Corporation, a New Jersey based holding company from Cornerstone bank (“Cornerstone”). Pursuant to the terms and conditions set forth in the Merger Agreement, Cornerstone will merge with and into Princeton Bancorp, with Cornerstone surviving (the “Merger”). The Bank plans to merge Cornerstone with and into the Company immediately after the Merger. The Company has received the requisite approvals of the Merger Agreement from the Federal Deposit Insurance Corporation, and New Jersey state bank regulators. The Company anticipates that the Merger will close in the third quarter of 2024.
Current wording
On January 18, 2024, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Cornerstone Financial Corporation (“Cornerstone”), the New Jersey based bank holding company for Cornerstone Bank (“Cornerstone Bank”). Pursuant to the terms and conditions set forth in the Merger Agreement, Cornerstone will merge with and into the Company, with the Company surviving (the “Merger”). The Company plans to merge Cornerstone Bank with and into the Bank immediately after the Merger. The Company has received the requisite approvals of the Merger Agreement from the Federal Reserve, the Federal Deposit Insurance Corporation, and the New Jersey Department of Banking and Insurance. The Company anticipates that the Merger will close in August 2024.
Previous wording
The US economy is showing signs of stress with inflation hitting a 40-year high, an increase in energy prices, specifically home-heating costs, higher interest rates set by the Federal Open Market Committee (impacting the real estate market) and uncertainties resulting from regional conflicts in around the world, including in Ukraine and the Middle East. However, the unemployment rate in New Jersey is below the national average.
Current wording
The US economy expanded at an annual rate of 2.8% over the three months ended June 30, 2024, lifted by consumer spending. Inflation has slowed after hitting a 40-year high, but households still grapple with a 20% increase in prices since 2021, an increase in energy prices, higher interest rates (impacting the real estate market) and uncertainties resulting from regional conflicts in around the world, including in Ukraine and the Middle East. U.S. unemployment, at 4.1%, is low but rising. The unemployment rate in New Jersey is 4.6% at June 30, 2024.
Previous wording
Total assets were $1.99 billion on March 31, 2024, an increase of $71.5 million, or 3.73%, when compared to $1.92 billion at the end of 2023. The primary reason for the increase in total assets was attributable to increases in available for sale securities of $26.7 million, an increase in net loans of $22.9 million, and an increase in cash and cash equivalents of approximately $21.5 million.
Current wording
Total assets were $1.98 billion on June 30, 2024, an increase of $67.4 million, or 3.52%, when compared to $1.92 billion at the end of 2023. The primary reasons for the increase in total assets were an increase in available for sale securities of $40.3 million and an increase in net loans of $25.0 million.
Previous wording
Total available-for-sale investment securities increased million $26.7, or 29.28%, to $118.1 million at March 31, 2024 compared to December 31, 2023. This increase was related to the purchase of Government National Mortgage Association securities during the first quarter of 2024.
Current wording
Total available-for-sale investment securities increased million $40.3, or 44.16%, to $131.7 million at June 30, 2024 compared to December 31, 2023. This increase was related to the purchase of mortgage-backed securities U.S. government sponsored enterprises and U.S government agency securities during thesix-months ended June 30, 2024.
Previous wording
Loans, net of deferred loan fees and costs, increased $22.9 million, or 1.48%, to $1.57 billion at March 31, 2024 compared to December 31, 2023. The increase in the Company’s net loans consisted of a $19.9 million increase in commercial real estate loans and a $10.8 million increase in construction loans, partially offset by a decrease of $5.0 million in commercial and industrial loans, a decrease of $1.5 million in residential mortgages and a decrease of $770 thousand in HELOC/consumer loans.
Current wording
Loans, net of deferred loan fees and costs, increased $25.0 million, or 1.62%, to $1.57 billion at June 30, 2024 compared to December 31, 2023. The increase in the Company’s net loans consisted of a $51.4 million increase in commercial real estate loans, partially offset by a decrease of $22.9 million in construction loans, a decrease of $2.0 million in residential mortgage loans, a decrease of $671 thousand in commercial and industrial loans and a decrease of $498 thousand in HELOC/consumer loans.
Previous wording
At March 31, 2024, non-performing assets totaled $2.1 million, a decrease of $4.6 million when compared to the amount at December 31, 2023. The decrease was primarily related to a $4.5 million commercial real estate loan which was sold during the first quarter of 2024. Non-performing assets as a percentage of total loans, net of deferred fees and costs, was 0.13% at March 31, 2024 and 0.43% at December 31, 2023.
Current wording
At June 30, 2024, non-performing assets totaled $3.2 million, a decrease of $3.5 million when compared to the amount at December 31, 2023. Non-performing assets as a percentage of total loans, net of deferred fees and costs, was 0.20% at June 30, 2024 and 0.43% at December 31, 2023.
Previous wording
Total deposits at March 31, 2024 increased $69.9 million, or 4.27%, when compared to December 31, 2023. Certificates of deposit increased $77.1 million, money market deposits increased $24.7 million, and savings deposits increased $2.9 million. Partially offsetting these increases were decreases in interest-bearing demand deposits of $32.6 million andnon-interest-bearing deposits of $2.2 million.
Current wording
Total deposits at June 30, 2024 increased $63.3 million, or 3.87%, when compared to December 31, 2023. Money market deposits increased $49.9 million, and certificates of deposit increased $41.3 million, partially offset by decreases in interest-bearing demand deposits of $24.2 million andnon-interest-bearing deposits of $4.2 million.
Previous wording
At March 31, 2024, the Company had approximately $426.7 million in uninsured deposits, consisting of $67.6 million innon-interest-bearing demand deposits, $128.7 million in interest-bearing demand deposits, $128.9 million in money market accounts, $21.3 million in savings deposits and $80.2 million in certificates of deposits.
Current wording
At June 30, 2024, the Company had approximately $505.0 million in uninsured deposits, consisting of $55.9 million innon-interest-bearing demand deposits, $147.4 million in interest-bearing demand deposits, $118.8 million in money market accounts, $21.1 million in savings deposits and $161.8 million in certificates of deposits.
Previous wording
Total stockholders’ equity on March 31, 2024 increased $1.6 million or 0.66% when compared to December 31, 2023. The increase was primarily due to the $2.4 million increase in retained earnings, consisting of $4.3 million in net income partially offset by $1.9 million of cash dividends recorded during the period. Additionally, stockholders’ equity declined as a result of a stock buyback of 19,000 shares totaling $579 thousand. The ratio of equity to total assets at March 31, 2024 and at December 31, 2023 was 12.2% and 12.5%, respectively.
Current wording
Total stockholders’ equity on June 30, 2024 increased $4.6 million or 1.93% when compared to December 31, 2023. The increase was primarily due to the $5.7 million increase in retained earnings, consisting of $9.5 million in net income partially offset by $3.8 million of cash dividends recorded during the period. The ratio of equity to total assets at June 30, 2024 and at December 31, 2023 was 12.34% and 12.53%, respectively.
Previous wording
As a member of the FHLB we are eligible to borrow funds in an aggregate amount of up to 50% of the Company’s total assets, subject to its collateral requirements. Based on available eligible securities and qualified real estate loan collateral, and a $70.0 million line of credit with the FHLB supporting municipal deposits, the Company had the ability to borrow an additional $148.9 million as of March 31, 2024.
Current wording
As a member of the FHLB we are eligible to borrow funds in an aggregate amount of up to 50% of the Company’s total assets, subject to its collateral requirements. Based on available eligible securities and qualified real estate loan collateral, and a $70.0 million line of credit with the FHLB supporting municipal deposits, the Company had the ability to borrow an additional $491.8 million as of June 30, 2024.
Previous wording
The Company reported net income of $4.3 million, or $0.68 per diluted common share, for the first quarter of 2024, compared to net income of $6.1 million, or $0.95 per diluted common share, for the first quarter of 2023. The decrease in net income for the first quarter of 2024 compared to the same period in 2023 was primarily due to increases in interest expense of $8.7 million and $2.1 million innon-interest expense, partially offset by a $7.5 million increase interest income, $611 thousand increase innon-interest income and a reduction of $835 thousand in income tax expense recorded.
Current wording
The Company reported net income of $5.1 million, or $0.80 per diluted common share, for the second quarter of 2024, compared to net income of $6.8 million, or $1.07 per diluted common share, for the second quarter of 2023. The $1.7 million decrease in net income for the second quarter of 2024 compared to the same period in 2023 was primarily due to acquisition-related items recorded in the second quarter of 2023 due to the Company’s acquisition of Noah Bank, resulting in a decrease innon-interest income of $9.5 million and an increase in income tax expense of $877 thousand, partially offset by a decrease innon-interest expenses of $5.8 million, a decrease in the provision for credit losses of $2.6 million and an increase in net interest income of $307 thousand when compared to the second quarter of 2023.
Previous wording
Interest income increased $7.5 million for the three months ended March 31, 2024, compared to the same period in 2023. Interest income on loans increased $5.0 million due to increases in both the average balance of loans of $175.4 million and the yield of 60 basis points. Other interest and dividend income increased $2.1 million due to an increase in average balance of $153.6 million and an increase in the yield of 90 basis points. Interest on taxable available-for-sale securities increased $286 thousand due to an 120 basis point increase in yield and a $17 thousand increase in the average balance of taxable available-for-sale securities.
Current wording
Interest income increased $6.4 million for the three months ended June 30, 2024, compared to the same period in 2023. Interest income on loans increased $4.5 million due to increases in both the average balance of loans of $153.2 million and the yield of 58 basis points. Other interest and dividend income increased $1.2 million due to an increase in average balance of $81.6 million and an increase in the yield of 33 basis points. Interest on taxable available-for-sale securities increased $709 thousand due to a 185 basis point increase in yield and a $44.9 million increase in the average balance of taxable available-for-sale securities.
Previous wording
Interest expense on deposits increased $8.7 million to $12.6 million for the three-month period ended March 31, 2024, due to increases in both the rate paid on interest-bearing deposits of 209 basis points and in the average balance of interest-bearing deposits of $351.6 million over the same prior year period.
Current wording
Interest expense on deposits increased $6.1 million to $13.4 million for the three-month period ended June 30, 2024, due to increases in both the rate paid on interest-bearing deposits of 120 basis points and in the average balance of interest-bearing deposits of $280.8 million over the same prior year period.
Previous wording
The Company reduced its provision for credit losses by $79 thousand during the three months ended March 31, 2024 while the allowance for credit losses was $10 thousand higher than at December 31, 2023. The decrease in the ACL in the current quarter consisted of $302 thousand increase recorded to the allowance of credit losses and a reduction to the allowance of $116 thousand in unfunded commitments, which is reported in other liabilities on the Company’s statement of condition. Charge-offs were $283 thousand and recoveries were $107 thousand for the quarter ending March 31, 2024.
Current wording
The Company recorded a reversal of credit losses of $118 thousand during the three-months ended June 30, 2024, which consisted of $169 thousand decrease recorded to the allowance of credit losses, offset by an increase to the provision for credit losses of $51 thousand related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. Charge-offs were $84 thousand, and recoveries were $99 thousand, for the quarter ended June 30, 2024.
Previous wording
For the three months ending March 31, 2024, the Company recorded an income tax expense of $1.1 million, resulting in an effective tax rate of 19.7%, compared to an income tax expense of $1.9 million resulting in an effective tax rate of 23.8% for the quarter ended March 31, 2023. The lower effective tax rate record in the first three months ended March 31, 2024, was attributed to a higher level of tax free investments benefit compared to a lower amount of net income.
Current wording
For the three months ended June 30, 2024, the Company recorded an income tax expense of $1.0 million, resulting in an effective tax rate of 16.8%, compared to an income tax expense of $161 thousand resulting in an effective tax rate of 2.32% for the quarter ended June 30, 2023. The effective tax rate in the second quarter of 2023 was lower than the current quarter’s rate because of thenon-taxable $9.7 million bargain purchase gain from the Noah bank acquisition.
Previous wording
The following table shows for the three-month period indicated the total dollar amount of interest earned from average interest earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities and the resulting costs, expressed both in dollars and rates. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to atax-equivalent basis.
Current wording
The following table shows for the three-month period indicated the total dollar amount of interest earned from average interest earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities and the resulting costs, expressed both in dollars and rates. Average loan receivables balances includenon-accrual loans. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to atax-equivalent basis.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended June 30, 2024, and 2023
Current report — wording carried from elsewhere
Interest income increased $13.9 million for thesix-months ended June 30, 2024, compared to the same period in 2023. Interest income on loans increased $9.6 million due to increases in both the average balance of loans of $164.1 million and the yield of 59 basis points. Other interest and dividend income increased $3.3 million due to an increase in average balance of $117.4 million and an increase in the yield of 40 basis points. Interest on taxable available-for-sale securities increased $995 thousand due to a 158 basis point increase in yield and a $30.7 million increase in the average balance of taxable available-for-sale securities.
Current report — wording carried from elsewhere
Interest expense on deposits increased $14.8 million to $26.1 million for thesix-month period ended June 30, 2024, due to increases in both the rate paid on interest-bearing deposits of 162 basis points and in the average balance of interest-bearing deposits of $315.9 million over the same prior year period.
Current report — wording carried from elsewhere
Average Balances, Net Interest Income, and Yields Earned and Rates Paid
Current report — wording carried from elsewhere
The following table shows for the three-month period indicated the total dollar amount of interest earned from average interest earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities and the resulting costs, expressed both in dollars and rates. Average loan receivables balances includenon-accrual loans. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to atax-equivalent basis.
Current report — wording carried from elsewhere
The following table reflects the changes in our interest income and interest expense segregated into amounts attributable to changes in volume and in yields on interest-earning assets and interest-bearing liabilities during the periods indicated.