Financial Performance & Growth
For the fiscal year ending March 31, 2025, the Company earned net income of $12.6 million, down slightly from the prior year. However, net income before provision improved nearly 15% from the previous fiscal year. Net interest income grew as our assets continued to reprice at today’s higher yields while our funding costs peaked during the year and have recently begun to edge lower. We expect this trend to continue which will positively impact earnings over the course of the coming year. Our core non-interest business lines delivered strong year-over-year results and our branches were successful in opening nearly 35,000 new deposit accounts, including nearly 6,000 new business accounts.
The Company’s assets remained consistent with the prior year at $7.2 billion, primarily driven by the strategic decision to focus on rebalancing the investment and loan portfolios into higher earning assets as well as the intentional sale of the majority of our residential real estate loan production into the secondary market; generating significant non-interest income compared to the prior year. Bangor Wealth Management had another successful year, adding $250 million of assets under management from new and existing clients. Total loan production during the year was $1.2 billion, bringing the cumulative loan production over the last five years to just over $9 billion. Net portfolio balances grew by 3% to $4.9 billion at fiscal year-end.
Total residential mortgage loan production increased by 17% to $528 million during the fiscal year, over three quarters of which was sold to the secondary market at slightly higher than budgeted margins. Combined with higher revenue from wealth management, card services, and payroll services, non-interest income increased by 12%, to $83.2 million.
The Company continued its focus on maintaining sound credit quality while working proactively with our non-current borrowers. By year-end, nonperforming loans represented just 0.16% of the loan portfolio while our national peer group reported 0.58%. Charge-offs, net of recoveries, were slightly more than $200 thousand for the fiscal year and the coverage ratio remained nearly unchanged ending at 0.66% up just 0.01% from the year prior.
Customer deposits and repurchase agreements increased $97 million, or 2%, bringing balances up to $5.6 billion at year-end. The growth in deposits allowed for reductions in more expensive wholesale funding.
Capital levels continued to be strong, with total capital increasing by $52 million, or 12%, to $467 million and retained earnings growing by 2% to $638 million.
The Company continues to be categorized as well capitalized by our regulators, with total capital (relative to risk-weighted assets) exceeding that threshold by $82 million at fiscal year-end.
The number of business clients using the Company’s payroll services grew to 4,800, and customers processed more than $1.4 billion in sales volume using the Company’s merchant services.
With sound balance sheet management, thoughtful loan production, and healthy core business operations, the Company remains well positioned for continued investments in customer experience that will drive sustained profitability and growth.
Nonperforming loans references loans that are 90 days or more past due or are in nonaccrual status. The national peer ratios are based on the Uniform Bank Performance Report peer group, assigned by the FFIEC for comparability, which comprises 134 community banks with assets greater than $1 billion.
View Our Consolidated Financial Statements