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PB

PB Bankshares, Inc. (PBBK)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 diluted EPS was $0.29, up sequentially from $0.18 in Q3 and $0.17 in Q4 2023; net income rose to $681k on higher noninterest income and a small reversal of credit loss provision .
  • Net interest margin improved slightly to 2.59% from 2.57% in Q3, though it remains below 2.74% a year ago; deposit growth continued and uninsured deposits remained low at ~11% of total .
  • Noninterest income was boosted by a one-time $487k gain on sale of the Oxford Branch; investors should adjust core run-rate accordingly as this will not recur in the same form in future quarters .
  • Credit quality trends remained stable: ACL to loans at 1.25%, NPLs to loans at 0.32%, and Q4 net charge-offs annualized at 0.11% .
  • Liquidity coverage remained robust with available funding equal to 544.9% of uninsured and uncollateralized deposits, a continued stock-reaction catalyst for confidence in deposit safety and funding flexibility .

What Went Well and What Went Wrong

What Went Well

  • Strong noninterest income in Q4 driven by the Oxford Branch sale: “Gain on sale of $487,000 for the Oxford Branch in the fourth quarter of 2024…” and noninterest income rose to $662k in Q4 .
  • Continued deposit growth (+$21.2m YoY to $354.2m) with relatively low uninsured deposits (~11%) and very high liquidity coverage (544.9% of uninsured balances) .
  • Sequential NIM uptick to 2.59% and stable core profitability: “Net interest income was $2.9 million” with QoQ improvement driven by loan interest growth partially offset by deposit costs .

What Went Wrong

  • Operating expense pressure: noninterest expense increased to $2.661m in Q4; drivers included higher professional fees (SEC/legal) and salaries/benefits .
  • YoY margin compression persists: NIM at 2.59% vs 2.74% in Q4 2023, reflecting elevated funding costs despite asset growth .
  • Higher charge-offs: $108k loan charge-offs in Q4 (vs none a year ago), primarily one older development loan; modest overdraft charge-offs were also recorded .

Financial Results

Quarterly Income Statement Comparison (Dollars in thousands, except per share)

MetricQ4 2023Q1 2024Q2 2024Q3 2024Q4 2024
Interest and dividend income$5,277 $5,614 $5,931 $6,011 $5,935
Interest expense$2,471 $2,982 $3,145 $3,185 $3,085
Net interest income$2,806 $2,632 $2,786 $2,826 $2,850
Provision for credit losses$62 $(84) $17 $34 $(4)
Noninterest income$203 $187 $190 $274 $662
Noninterest expense$2,413 $2,498 $2,487 $2,551 $2,661
Income before income taxes$534 $405 $472 $515 $855
Income taxes$125 $88 $102 $111 $174
Net income$409 $317 $370 $404 $681
Diluted EPS ($)$0.17 $0.13 $0.16 $0.18 $0.29

Performance Ratios (Quarterly)

MetricQ4 2023Q1 2024Q2 2024Q3 2024Q4 2024
Net interest margin (annualized)2.74% 2.44% 2.54% 2.57% 2.59%
Return on average assets (annualized)0.38% 0.29% 0.33% 0.36% 0.61%
Return on average equity (annualized)3.14% 2.71% 2.80% 3.41% 5.62%

Balance Sheet Highlights (Dollars in thousands, period-end)

MetricQ4 2023Q1 2024Q2 2024Q3 2024Q4 2024
Total assets$439,748 $450,434 $449,045 $452,857 $451,317
Cash & cash equivalents$32,438 $66,787 $54,731 $54,519 $37,777
AFS securities (fair value)$68,115 $32,138 $36,068 $36,381 $50,296
Loans receivable, net$321,382 $333,288 $339,999 $344,123 $344,813
Deposits$332,966 $348,389 $346,960 $354,795 $354,190
Total stockholders’ equity$46,989 $46,769 $46,600 $47,692 $48,658
Accumulated OCI$(1,247) $(1,250) $(1,080) $(313) $(305)

KPIs and Credit/Liquidity Metrics

MetricQ4 2023Q1 2024Q2 2024Q3 2024Q4 2024
ACL to total loans (%)1.38% 1.32% 1.30% 1.27% 1.25%
Total NPLs to total loans (%)0.44% 0.39% 0.37% 0.36% 0.32%
NPAs to total assets (%)0.32% 0.30% 0.28% 0.28% 0.25%
Book value per common share ($)17.53 17.78 18.17 18.69 19.07
TBV per share ($)17.53 17.78 18.17 18.69 19.07
TBV per share ex-AOCI ($)18.00 18.26 18.59 18.81 19.19
Liquidity coverage vs uninsured deposits (%)——578.2% 534.4% 544.9%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/Net Interest IncomeQ1 2025 onwardNone providedNone providedMaintained: No formal guidance
Margins (NIM)Q1 2025 onwardNone providedNone providedMaintained: No formal guidance
OpExQ1 2025 onwardNone providedNone providedMaintained: No formal guidance
Credit costsQ1 2025 onwardNone providedNone providedMaintained: No formal guidance
Tax rateQ1 2025 onwardNone providedNone providedMaintained: No formal guidance
DividendsQ1 2025 onwardNone providedNone providedMaintained: No formal guidance

Note: No explicit numerical guidance ranges were issued in the Q4 materials; company provided performance updates and risk management commentary rather than forward guidance .

Earnings Call Themes & Trends

No earnings call transcript was available for Q4 2024; themes are derived from company press releases and investor presentations for Q2–Q4 2024 –.

TopicPrevious Mentions (Q-2 and Q-1)Current PeriodTrend
Net Interest MarginQ2: 2.54%; Q3: 2.57% (compression YoY) Q4: 2.59% (sequential uptick; still below 2.74% YoY) Slight sequential improvement; YoY compressed
Liquidity & Uninsured DepositsQ2 coverage 578.2%; Q3 534.4%; uninsured ~11% Coverage 544.9%; uninsured ~11% Coverage remains very high, modest rebound QoQ
CRE Stress TestingQ2: LTV 59.8%, DSCR 1.47x ; Q3: LTV 62.6%, DSCR 1.64x Q4: LTV 59.2%, DSCR 1.41x; 83.5% portfolio stress-tested Mixed: LTV stable; DSCR modestly lower in Q4
Hospitality ExposureQ2: $20.5m; LTV 51.2%; DSCR 2.04x Q3: $25.6m; LTV 73.2%; DSCR 2.74x Q4: $25.5m; LTV 58.5%; DSCR 1.90x
Noninterest Income DriversQ2: lower swap fees; down YoY Q3: equity gains + swap fee income; up YoY Q4: one-time branch sale gain ($487k) lifted NI
Operating ExpensesQ2: lower advertising; higher data processing Q3: higher data processing Q4: higher SEC/legal and salaries
AOCIQ2: $(1,080)k Q3: $(313)k Q4: $(305)k

Management Commentary

  • “Net interest income was $2.9 million for the three months ended December 31, 2024… [increase] primarily due to the increase in interest income on loans, partially offset by the increase in the interest expense on deposits.”
  • “The Company recorded a reversal of provision for credit losses of $4,000… primarily due to lower qualitative factor allocations… and a lower required allowance for unfunded commitments due to a decline in volume of unfunded commitments.”
  • “Noninterest income was $662,000… due to a $487,000 gain on sale of the Oxford Branch in the fourth quarter of 2024.”
  • “Management is monitoring the commercial real estate portfolio and concentrations… the CRE portfolio has an average Loan-to-Value ratio of 59.2% and a Debt Service Coverage ratio of 1.41 times…”
  • “Uninsured and uncollateralized deposits totaled approximately $38.1 million or 11.0%… available funding from these sources totaled 544.9% of uninsured and uncollateralized deposits.”

Q&A Highlights

No Q4 2024 earnings call transcript or Q&A was available in the document set; therefore, no Q&A highlights can be provided [ListDocuments returned none].

Estimates Context

  • S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable due to a data access limit; as a result, we cannot determine beat/miss versus Wall Street consensus at this time [GetEstimates error: IQ_EPS_EST_CIQ Daily Request Limit Exceeded].
  • Given the identified nonrecurring $487k gain on branch sale, investors should adjust implied run-rate for noninterest income when updating forward estimates; core profitability should be assessed excluding this item .

Key Takeaways for Investors

  • Q4 EPS and net income improved meaningfully QoQ; however, strength in noninterest income reflects a nonrecurring branch sale gain—exclude from core run-rate to avoid overestimating sustainability .
  • Sequential NIM expansion continued (2.59%), aided by loan interest growth, but YoY margin compression remains a headwind; watch deposit costs and rate path for further normalization .
  • Credit quality is stable with low NPL ratios (0.32%) and ACL at 1.25%; Q4 charge-offs were modest and tied to an older development loan; reserve methodology shifts reduced provision needs .
  • Liquidity coverage versus uninsured deposits is a notable strength (544.9%), supporting confidence in funding flexibility; uninsured deposits remain ~11% of total .
  • Operating expense pressure from SEC/legal fees and salaries is a watch item; monitor expense trajectory as compliance and technology investments continue .
  • Book value per share increased to $19.07, with AOCI substantially reduced; tangible book excluding AOCI also rose—supportive for capital-based valuation frameworks .
  • No formal guidance was provided; focus on core NIM trajectory, deposit mix/costs, and CRE/hospitality metrics (LTV/DSCR) to gauge forward earnings power .