First Quarter Report March 31, 2024

Net income totaled $367,000, or $0.71 per share, for the quarter ended March 31, 2024 compared with net income of $408,000, or $0.78 per share, reported for the first quarter of 2023. The decrease in net income is primarily a result of an $84,000 decrease in net interest income period over period.

Comparing the first quarters of 2024 with 2023, total interest and dividend income increased $308,000, mostly due to interest and fees on loans. However, interest expense increased $392,000 due to increased balances of more costly short-term borrowings necessary for loan growth throughout 2023.

Balance sheet changes were minimal during the first quarter of 2024 compared with year-end 2023 as both loans and deposits decreased slightly. Annualized, return on average assets was 0.74%, and return on average equity was 6.34% for the first quarter of 2024.

A dividend of $0.56 per share was paid April 1. The annual shareholders meeting was held virtually on April 9. Please do not hesitate to contact me if you have any questions.

Sincerely,

Nelson L. Person
President & CEO