Second Quarter Report June 30, 2024

Dear Shareholders:

Net income totaled $450,000, or $0.87 per share, for the quarter ended June 30, 2024 compared with $395,000, or $0.76 per share, reported for the second quarter of 2023. The increase in net income between periods was primarily due to a $48,000 decrease in provision for credit losses and a $40,000 increase in noninterest income. Net interest income decreased $44,000 due to a $293,000 increase in interest expense offset by a $249,000 increase in interest income.

Balance sheet growth has slowed during 2024 due to higher interest rates and lower inventory of real estate, which results in fewer opportunities for financing. Nevertheless, the loan portfolio has grown $2.5 million year-to-date, or 1.5%. Deposits have also grown $1.8 million due to higher interest rates paid this year on certificate of deposit specials.

For the six-month period ended June 30, 2024, net income totaled $817,000. Annualized return on average assets was 0.82% and return on equity was 7.04%.

A dividend of $0.56 per share was paid July 1. Please do not hesitate to contact me if you have any questions.

Sincerely,

Nelson L. Person
President & CEO