#United States #Raleigh #Q1 2025 #Dogwood State Bank #Financial Success

Dogwood State Bank Achieves Unprecedented Financial Success in Q1 2025

Dogwood State Bank, based in Raleigh, North Carolina, has proudly announced remarkable financial results for the first quarter of 2025. The bank reported an impressive net income of $7.4 million, translating to $0.39 per diluted share, showcasing a significant rise compared to previous quarters and the same period last year.

Key Highlights of Q1 2025

• - Net Income Growth: Dogwood's net income increased from $6.2 million in Q4 2024 and from just $1.8 million in Q1 2024. This substantial growth illustrates the bank's effective management strategies and persistent dedication to enhancing shareholder value.
• - Improved Return Ratios: The return on average assets climbed to 1.34%, up from 1.13% in the prior quarter and significantly higher than 0.53% in Q1 2024. This improvement reflects the bank's focused efforts in maximizing its asset utilization.
• - Expansion of Net Interest Margin: The net interest margin expanded from 4.13% in Q4 2024 to 4.20% in Q1 2025, a solid increase from the 3.41% recorded a year earlier. This was primarily driven by a favorable rise in interest-earning assets and a reduction in funding costs.
• - Rising Tangible Book Value: By March 31, 2025, the tangible book value per share had risen to $11.36, marking a year-to-year growth of $0.55 since March 31, 2024.

Steve Jones, Chief Executive Officer of Dogwood, expressed his pride in the bank's achievements, attributing this success to a combination of solid business fundamentals and the expertise of the team. "Our strong earnings performance reflects solid business fundamentals and disciplined execution. This success is a testament to the dedication and expertise of our team whose continued efforts are driving sustainable value for our shareholders," he stated.

Detailed Financial Performance

Net Income Analysis

In Q1 2025, unadjusted net income stood at $7.4 million. Adjusted net income, which reflects the exclusion of certain merger-related expenses, was slightly higher at $7.5 million. This figure indicates a robust rise in both unadjusted and adjusted measures when compared to Q1 2024.

Net Interest Income and Asset Quality

Net interest income reached $21.6 million in the quarter, which is a substantial increase from $11.3 million during the same quarter last year, propelled by an increased acquisition of high-yield interest-earning assets and a successful acquisition of Community First Bancorporation in Q3 2024.

The total average interest-earning assets jumped to $2.09 billion, from $1.34 billion in Q1 2024. The bank's credit quality measures remained stable, with nonperforming loans increasing slightly to 0.41% of total loans, compared to 0.33% in the last quarter and 0.18% a year earlier.

Non-Interest Income

Dogwood's non-interest income recorded a significant boost, totaling $4.8 million, up from $2.9 million in Q1 2024. This growth was attributed mainly to increased income from SBA lending and heightened deposit service charges, showcasing the bank's diversified revenue stream.

Expense Management

Despite the increase in non-interest income, total non-interest expense for Q1 2025 was reported at $15.8 million, a rise from $10.8 million in Q1 2024, primarily driven by higher compensation costs resulting from workforce expansion. However, part of these expenses came from integrating resources from the recent acquisition, which is projected to yield long-term efficiencies.

Future Outlook

Going forward, Dogwood intends to leverage its growth momentum, focusing on bolstering technological investments and enhancing customer service delivery. The bank has implemented strategic plans to further solidify its position as a leading community bank in the region, while ensuring sustained profitability and value creation for stakeholders.

Conclusion

With its remarkable financial results in Q1 2025, Dogwood State Bank is on a strong path forward. By continuing to focus on strategic expansions, improving asset quality, and enhancing overall operational efficiencies, Dogwood is set to define what it means to ‘Bank Local’ in the community banking sector and build on its success in the upcoming quarters.