BSRR Reports Stable Net Income and Revenue Growth in Q3 2023
Segments of revenue
In the third quarter of 2023, BSRR reported net income of $9.9 million, which remained unchanged from the same quarter in 2022. The company's annualized return on average equity was 12.62% and annualized return on average assets was 1.04% for the quarter ended September 30, 2023.
BSRR demonstrated stability in its net income, maintaining the same level as the previous year. The company's annualized return on average equity and assets remained strong, although slightly lower compared to the same quarter in 2022. This indicates efficient utilization of resources and a solid financial position.
BSRR faced a decrease in net interest income by $0.8 million or 3% in the third quarter of 2023, primarily due to a decrease in net interest margin. This was partially offset by an increase in average interest-earning assets with an improved yield. Additionally, the company experienced a decrease in service charges and fees on deposit accounts, primarily driven by decreases in ATM and debit card income.
Despite the challenges faced in net interest income and service charges, BSRR witnessed an overall increase in noninterest income by $1.2 million or 17% in the third quarter of 2023 compared to the same quarter in 2022. This increase was mainly attributed to higher BOLI income, which rose by $0.6 million. BOLI income also increased by $2.6 million for the first nine months of 2023 compared to the same period in 2022.
BSRR demonstrated stability in its net income and maintained a strong financial position in the third quarter of 2023. Although the company faced challenges in net interest income and service charges, it managed to offset them with an increase in noninterest income, primarily driven by higher BOLI income. Overall, BSRR's performance in the latest quarter reflects its ability to navigate through market challenges and maintain a solid financial standing.