Comparison of Financial Condition at March 31, 2021 and December 31, 2020
Total Assets. Total assets were $1.20 billion at March 31, 2021, representing an increase of $68.2 million, or 6.0%, compared to $1.13 billion at December 31, 2020. The increase was primarily related to an increase of available for sale securities.
Cash and Due from Banks. Cash and due from banks decreased $3.7 million, or 3.9%, to $89.8 million at March 31, 2021 from $93.5 million at December 31, 2020 primarily due to a decrease in deposits held at the Federal Reserve Bank of New York as excess cash from deposit growth was used to purchase investment securities.
Investment Securities Available for Sale. Investment securities available for sale increased $72.6 million, or 70.5%, to $175.5 million at March 31, 2021 from $102.9 million at December 31, 2020. This increase was primarily due to purchases of treasury and mortgage backed securities of $88.5 million partially offset by principal pay-downs of $12.5 million and sales and calls of $2.0 million offset by and the reversal of a net unrealized gain of $1.3 million to a net unrealized loss of $224,000.
Net Loans. Total net loans receivable were $868.7 million at March 31, 2021, a decrease of $5.1 million, or 0.6%, as compared to $873.8 million at December 31, 2020. The decrease was primarily due to a decline in our indirect automobile loan balances of $10.5 million, a decrease in our commercial and industrial loan balances of $8.8 million, excluding outstanding SBA PPP loan balances, and a decrease in our non-residential commercial real estate loans of $7.5 million. These losses were partially offset by increases in our SBA PPP loans of $16.7 million and an increase in multi-family real estate loans of $9.0 million.
Non-accrual loans decreased $48,000, or 0.8%, to $6.3 million at March 31, 2021. During the same timeframe non-performing assets decreased $98,000, or 1.5%, to $6.4 million at March 31, 2021.
Total Liabilities. Total liabilities increased $65.9 million, or 6.5%, to $1.08 billion at March 31, 2021, primarily due to an increase in deposits of $78.7 million partially offset by a decrease in advances from the FHLB of $14.2 million.
Deposits. Deposits increased $78.7 million, or 8.5%, to $1.01 billion at March 31, 2021. Interest bearing accounts grew $50.4 million, or 7.4%, to $735.4 million while non-interest bearing balances increased $28.3 million, or 11.6%, finishing the first quarter at $272.6 million. The increase in deposits was primarily due to the acquisition of $33.9 million in deposits from the acquisition of two branches from ConnectOne Bank in March 2021, an accumulation of liquidity by customers in response to government stimulus actions, increases in PPP borrower-related accounts and normal fluctuations in some of our large business accounts.
Borrowed Funds. Advances from the FHLB decreased $14.2 million from $50.7 million at December 31, 2020 to $36.5 million at March 31, 2021 as the Company was able to utilize deposit growth to fund asset growth.
Stockholders’ Equity. Stockholders' equity increased $2.4 million to $118.9 million at March 31, 2021, primarily due to net income of $3.3 million partially offset by a $1.2 million reversal from a net unrealized gain to a net unrealized loss on available for sale securities. At March 31, 2021, the Company’s book value per share was $10.68. At March 31, 2021, the Company’s ratio of stockholders’ equity-to-total assets was 9.93%. Unearned common stock held by the Bank’s employee stock ownership plan was $3.9 million at March 31, 2021.
Comparison of Operating Results for the Three Months Ended March 31, 2021 and March 31, 2020
Net Income. Net income for the three months ended March 31, 2021 increased $2.2 million, or 208.9%, to $3.3 million, or $0.31 per basic and diluted share, compared to net income of $1.1 million, or $0.10 per basic and diluted share, for the three months ended March 31, 2020. Interest and dividend income increased $312,000, or 2.9%, interest expense decreased $1.1 million, or 47.5%, the provision for loan losses decreased $1.3 million, or 105.8%, noninterest income increased $681,000, or 43.7%, while other expenses and taxes increased $1.2 million, or 15.3%, between comparable quarters.