Despite a 19% decline in third-quarter net income, York-based Traditions Bancorp Inc. reported a 7% year-to-date net income increase over the first nine months of 2021.
“We continue to build off the solid financial performance achieved through the first half of 2021, reporting one of the best quarters in our 19-year history,” Eugene J. Draganosky, Traditions’ president and CEO, said in a release.
Net income from July to September was $2.3 million, compared with $2.8 million for the 2020 third quarter.
The 19% drop was attributed to the stabilization of mortgage banking activities following the refinancing boom; credit quality trends eliminating the need for provisioning; and the bank’s investment in regional expansion beyond York County.
Year to date, net income through three quarters was $6.6 million. As of September 30, earnings per share were $2.10 versus $1.94 at this time last year.
“Our core earnings engine remains strong, driven by a pickup in business loan growth during the current quarter despite significant SBA PPP loan forgiveness,” Draganosky said. “… We believe Traditions Bank will enter 2022 from a position of strength due to increased demand for business loans, entry into Lancaster County, and expansion of activities in the Capital Region.”
Some additional highlights from the third-quarter report:
- The outstanding balance for Paycheck Protection Program loans as of Sept. 30 was $17.8 million. That included the forgiveness of 94.5% of first round loans and $14.9 million of remaining balances for the second round.
- Deposits increased $115 million, or 22%, during the last 12 months.
- Major expenditures in the quarter included $138,000 for rebranding and $339,000 for the Lancaster market initiative.
- As of Sept. 30, the bank’s credit exposure to industries most impacted by the pandemic – such as restaurants/bars, entertainment venues and lodging – was $30.6 million, or 6.1% of the total loan portfolio.