Second Quarter Report June 30, 2019

Second Quarter Report June 30, 2019

Dear Shareholders:

Net income for the quarter ended June 30, 2019 totaled $533,000, or $1.03 per share.  This represents a considerable increase compared with net income of $390,000, or $0.76 per share, for the second quarter of 2018.  The increase in earnings resulted primarily from a $55,000 increase in net interest income, a $22,000 increase in noninterest income and a decrease in noninterest expense of $88,000.

Year-to-date net income through June 30, 2019 totaled $1,065,000 and also increased compared with $664,000 net income reported for the first six months of 2018.  The significant increase was primarily due to a $332,000 increase in the change in fair value of equity securities.  Also, net interest income increased $86,000 and noninterest expense decreased $124,000 during the current year.  Earnings per share totaled $2.06 for the six months ended June 30, 2019 compared with $1.28 for the same period in 2018.

The loan portfolio approximates $116 million and remains a vigorous 96% of retail deposits despite some balance moderation in the second quarter.  Following several years of significant loan growth, credit 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 second quarter was paid July 1.  Please do not hesitate to contact me if you would like additional information or have any questions.

Sincerely,

Nelson L. Person
President & CEO