Second Quarter Report June 30, 2022

Dear Shareholders:

Net income totaled $490,000, or $0.94 per share, for the quarter ended June 30, 2022 compared with net income of $498,000, or $0.95 per share, reported for the second quarter of 2021. The decrease in net income was primarily due to a $102,000 increase in noninterest expense offset by a $63,000 increase in noninterest income and a $30,000 increase in interest and dividend income. Comparing 2022 with 2021 second quarters, net interest income increased mostly due to interest and fees on loans and overnight deposits.

Balance sheet growth moderated during the second quarter as deposits decreased $4.0 million, or 2.4%, following an extended period of unprecedented growth. Loans outstanding increased $1.6 million, or 1.1%. For the six months ended June 30, 2022, annualized return on average assets was 1.00% and return on equity was 8.03%.

A dividend of $0.54 per share was paid July 1st. Please do not hesitate to contact me if you have any questions.

Sincerely,

Nelson L. Person
President & CEO