First Quarter Report March 31, 2021

First Quarter Report March 31, 2021

Dear Shareholders:

Net income totaled $455,000, or $0.88 per share, for the quarter ended March 31, 2021 compared with net income of $305,000, or $0.59 per share, reported for the first quarter of 2020.  Comparing the first quarters of 2021 with 2020, noninterest income increased $160,000 due to an absence of pandemic related volatility in equity markets.

Also, net interest income increased $16,000, and comparatively, despite lower rates, interest and fees on loans increased $30,000 due to strong loan demand.  Interest expense decreased $57,000 due to higher deposit account balances which replaced more costly wholesale funding.  Annualized return on average assets was 1.1% and return on average equity was 8.2% for the first quarter of 2021.

Balance sheet expansion that began last year continued during the first quarter of 2021 as loans outstanding increased $8.0 million, or 6.1%, and deposits increased $11.1 million, or 8.0%.  This significant quarterly growth supports net interest income levels and offsets spread tightening resulting from lower rates.

A dividend of $0.53 per share was paid April 1st, and the annual meeting of shareholders was held virtually on April 13th.  During this meeting, my sincere thanks and congratulations were extended to Secretary/Assistant Treasurer Carolyn Bash upon her retirement.  She assisted many shareholders during her long career with the bank and holding company and will be greatly missed.

Please do not hesitate to contact me if you have any questions.

Sincerely,

Nelson L. Person
President & CEO