Blog Post Title: Stocks Update – 2023-07-24


Mid-Southern Bancorp, Inc. Reports Second Quarter Net Income of $400,000

Mid-Southern Bancorp, Inc., the holding company for Mid-Southern Savings Bank, FSB, recently announced its financial results for the second quarter ended June 30, 2023. The company reported net income of $400,000 or $0.14 per diluted share, a decrease from $526,000 or $0.19 per diluted share for the same period in 2022.

The income statement review shows that net interest income after provision for credit losses increased by $3,000, or 0.2%, for the second quarter of 2023. Total interest income also increased by $451,000, or 20.9%, primarily due to higher balances and yields of interest-earning assets. The average balance of interest-earning assets increased to $266.8 million, driven by an increase in loans receivable, offset by lower investment securities and interest-bearing deposits with banks. The average yield on interest-earning assets also saw an increase to 3.90% for the quarter, reflecting higher yields from loans, investment securities, and interest-bearing deposits.

While the company’s net income experienced a decline compared to the same period last year, it’s important to note that the overall financials remain stable. The increase in net interest income and total interest income suggests growth potential for Mid-Southern Bancorp.

Given the positive trends in interest income and yields, I recommend considering this as a potential buying opportunity. The company’s focus on loans receivable and increasing yields demonstrates their ability to generate revenue. However, investors should continue to monitor the performance of interest-bearing liabilities, as the average balance and cost have increased, leading to a significant increase in interest expense.

In conclusion, Mid-Southern Bancorp’s second quarter results are promising, despite a decrease in net income. With a potential for growth in interest income and positive trends in interest-earning assets, buying this stock might be a favorable option. As always, it is crucial to conduct further research and analysis before making any investment decisions.

Middlefield Banc Corp. Reports Record Financial Results for 2023 First Half and Second Quarter

Middlefield Banc Corp. (NASDAQ: MBCN) recently announced its financial results for the first half and second quarter of 2023. The company reported a net income increase of 26.1%, reaching a record $10.0 million. Earnings per diluted share were $1.23 compared to $1.35, reflecting a 38.4% increase in average diluted shares outstanding due to the Liberty Bancshares, Inc. merger.

One of the highlights of the report is the improvement in net interest margin, which increased by 39 basis points to 4.30%. This marks five consecutive quarters of a net interest margin above 4%. Additionally, total loans and deposits both reached record highs at $1.41 billion and $1.43 billion, respectively. Despite macro-level headwinds such as rising interest rates and intense deposit competition, Middlefield’s strong balance sheet, robust asset quality, and diverse core deposit base have helped them successfully navigate these challenges.

As an investor, these record-breaking results are promising. With the company’s ability to overcome market challenges and achieve significant growth, it may be a favorable time to consider buying Middlefield Banc Corp. stock. The continuous improvement in net interest margin and the increase in loans and deposits demonstrate the company’s capacity for sustainable growth and profitability.

Middlefield Banc Corp.’s strong asset quality and low nonperforming assets further enhance its attractiveness as an investment option. The company’s return on average tangible common equity of 11.92% is commendable and indicates efficient utilization of capital.

In conclusion, Middlefield Banc Corp.’s impressive financial results for the first half and second quarter of 2023 highlight its resilience and growth potential. As an investor, considering buying stock in Middlefield Banc Corp. may be a prudent decision in light of their strong performance and positive outlook for future growth.

Applied Digital Corporation: Strong Revenue Growth and Promising Future Guidance

Applied Digital Corporation (Nasdaq: APLD), a leading designer, builder, and operator of next-generation digital infrastructure for High-Performance Computing (HPC) applications, has reported impressive financial results for the fiscal fourth quarter and full year ended May 31, 2023. The company generated sequential revenue growth of 56% in the fiscal fourth quarter, reaching $22 million. This achievement was coupled with an adjusted EBITDA of $2.9 million for the same period. Although the adjusted loss from continuing operations was $0.3 million, the impact per share was less than $0.01.

In addition to its financial success, Applied Digital launched its AI Cloud Service during this period. This service enables the provision of high-performance computing power specifically for AI applications. Furthermore, the company successfully energized its 9MW Jamestown HPC Facility in May, solidifying its position as a key player in the emerging digital infrastructure landscape for artificial intelligence cloud services.

Applied Digital’s chairman and CEO, Wes Cummins, expressed enthusiasm regarding the company’s momentum and achievements. He highlighted the unique capabilities of their data center infrastructure to cater to the increasingly demanding requirements of businesses and enterprises in running AI workloads and other emerging HPC applications. The recent announcement of two AI customer agreements worth up to $640 million further strengthens Applied Digital’s position in the industry.

Looking ahead, the company plans to focus on non-crypto use cases and leverage its proprietary data center assets for HPC applications. With robust demand from both traditional and emerging HPC customers, Applied Digital is poised for a promising future.

In light of these positive developments, I recommend buying the stock of Applied Digital Corporation. The strong revenue growth, successful launches, and customer agreements indicate a favorable outlook for the company. Furthermore, its strategic positioning in the digital infrastructure market for AI applications provides a competitive advantage. Investors should consider taking advantage of Applied Digital’s momentum and potential for long-term growth.

Please note that this analysis is not financial advice, and it is always recommended to conduct thorough research and consult with a financial advisor before making any investment decisions.

Southern States Bancshares, Inc. Reports Strong Second Quarter Performance

Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States” or the “Company”), the holding company for Southern States Bank, has released their second-quarter results, demonstrating impressive financial performance.

The company’s net income for the second quarter stood at $8.8 million, resulting in $0.98 diluted earnings per share. These figures surpassed the previous quarter’s net income of $7.7 million and $0.85 diluted earnings per share. Additionally, the second quarter of 2023 exhibited substantial growth in comparison to the same period in 2022, with net income increased to $5.2 million.

Core net income for the second quarter amounted to $7.1 million, equating to $0.79 diluted core earnings per share. This highlights the Company’s consistent and sustained growth in core net income.

Furthermore, Southern States Bancshares reported significant growth in loan and deposit metrics, with linked-quarter loan growth at an impressive 17.4% annualized and total deposit growth at 30.1% annualized, net of brokered deposits.

Upon evaluating this strong performance, I would recommend considering Southern States Bancshares as a promising investment opportunity. The consecutive increase in net income and strong loan growth demonstrate the company’s ability to deliver impressive results. Hence, I suggest potential investors consider adding SSBK to their portfolio.

HBT Financial Reports Strong Second Quarter Performance

HBT Financial, Inc. (NASDAQ: HBT), the holding company for Heartland Bank and Trust Company, has released its second quarter financial results. The company reported impressive net income of $18.5 million, or $0.58 per diluted share, with a return on average assets (ROAA) of 1.49%. Adjusted net income stood at $18.8 million ($0.58 per diluted share), with an adjusted ROAA of 1.51%. These results reflect the continued strength of the company’s asset quality, as evidenced by nonperforming assets to total assets ratio of 0.21%.

J. Lance Carter, President and CEO of HBT Financial, expressed satisfaction with the financial performance, particularly highlighting the solid returns of ROAA and return on average tangible common equity (ROATCE) at 19.91%. He also emphasized the importance of the company’s granular deposit base and excellent credit quality in supporting these strong results. Carter’s appointment as CEO during this quarter further solidifies the company’s leadership.

Overall, HBT Financial’s second quarter performance indicates a robust and prosperous period. With consistently strong financial returns and a solid credit profile, the company appears to be on a positive trajectory. Given these positive indicators, it is recommended to buy the stock and capitalize on the company’s strong performance. HBT Financial’s ability to deliver consistent financial performance, even amidst market pressures, reinforces its position as a promising investment opportunity.

This article is for informational purposes only and should not be construed as financial advice. Always do your own research and consult with a qualified financial advisor before making any investment decisions.

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