First Quarter Report March 31, 2025

Dear Shareholders:

Net income totaled $459,000, or $0.89 per share, for the quarter ended March 31, 2025 compared with net income of $367,000, or $0.71 per share, reported for the first quarter of 2024. The increase in net income is primarily a result of a $167,000 increase in net interest income period over period.

Comparing the first quarters of 2025 with 2024, total interest and dividend income increased $161,000, mostly due to interest and fees on loans. Also, total noninterest income increased $98,000 offset by a $128,000 increase in total noninterest expense.

Balance sheet changes during the first quarter of 2025 compared with year-end 2024 were notably a $3.1 million increase in loans and a $1.6 million increase in deposits. Annualized for the first quarter of 2025, return on average assets was 0.91%, and return on average equity was 7.65%.

A dividend of $0.57 per share was paid April 1. The annual shareholders meeting was held virtually on April 8. Please do not hesitate to contact me if you have any questions.

Sincerely,

Nelson L. Person
President & CEO