First Quarter Report March 31, 2026

Dear Shareholders:

Net income totaled $567,000, or $1.13 per share for the quarter ended March 31, 2026 compared with net income of $459,000, or $0.89 per share, reported for the first quarter of 2025. The increase in net income is primarily a result of a $236,000 increase in net interest income period over period.

Comparing the first quarter of 2026 with the same period of 2025, total interest and dividend income increased $233,000, primarily due to interest and fees on loans. Interest expense decreased by $3,000 during the same period. Also, total noninterest income decreased $36,000 and noninterest expense increased $109,000.

Balance sheet changes during the first quarter of 2026 compared with year-end 2025 included a notable $6.7 million increase in deposits and a $2.2 million increase in loans. Annualized for the first quarter of 2026, return on average assets was 1.08%, and return on average equity was 9.09%.

A dividend of $0.58 per share was paid April 1. The annual shareholders’ meeting was held virtually on April 14, and directors’ terms were staggered and transitioned to three years. The company stock price has been increasing in 2026 as the 75-day average price currently exceeds $52 per share with a 4.4% dividend yield.

Your support and loyalty are deeply appreciated.

Sincerely,

Nelson L. Person
President & CEO