First Quarter Report March 31, 2019

First Quarter Report March 31, 2019

Dear Shareholders:

Net income for the quarter ended March 31, 2019 totaled $532,000, or $1.03 per share. This represents a sizeable increase of $259,000 compared with net income of $273,000, and earnings per share of $0.52, for the quarter ended March 31, 2018.  The increase in earnings resulted from a $276,000 increase in noninterest income primarily due to positive changes in fair value of equity securities.  In addition, net interest income increased $30,000 due to a $174,000 increase in loan interest offset by a reduction in securities interest of $84,000.

First quarter loan growth totaled $2 million, or 2%, and has moderated from remarkable levels of the previous several years. The loan portfolio now exceeds $115 million. Deposit growth is flat this year, which continues a recent trend; however, the loan to deposit ratio has climbed to a robust 96%.  Asset quality remains strong with low delinquency, few watchlist credits, minimal charge-offs, and a healthy $1.2 million loan loss reserve.

A dividend payment of $0.51 per share for the first quarter was paid April 1. As always, I enjoyed meeting with shareholders who attended the recent annual meeting.  Please do not hesitate to contact me if you would like additional information or have any questions.

Sincerely,

Nelson L. Person
President & CEO