EX-99.1 2 botj-20241025xex99_1.htm EX-99.1 Exhibit 991

Exhibit 99.1



BOTJ-FG-logo



Bank of the James Announces Third Quarter,  First Nine Months of 2024

Financial Results and Declaration of Dividend

Year-Over-Year Loan Growth, Deposit Expansion, High Asset Quality



LYNCHBURG, VA, October 25, 2024 -- Bank of the James Financial Group, Inc. (the Company) (NASDAQ:BOTJ), the parent company of Bank of the James (the Bank), a full-service commercial and retail bank, and Pettyjohn, Wood & White, Inc. (PWW), an SEC-registered investment advisor, today announced unaudited results of operations for the three month and nine month periods ended September 30, 2024.  The Bank serves Region 2000 (the greater Lynchburg MSA) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets.

Net income for the three months ended September 30, 2024 was $1.99 million or $0.44 per basic and diluted share compared with $2.08 million or $0.46 per basic and diluted share for the three months ended September 30, 2023. Net income for the nine months ended September 30, 2024 was $6.33 million or $1.39 per share compared with $6.60 million or $1.44 per share for the nine months ended September 30, 2023.

Robert R. Chapman III, CEO of the Bank, commented: The Company delivered stable, strong earnings that contributed to building value, growing stockholders’ equity, and a  significant increase in book value per share. Our performance once again generated positive returns for shareholders, which have for many years included paying a quarterly cash dividend.

“Our performance reflected strong interest expense management, sound investment practices, and a  balanced and diversified stream of interest and noninterest income. Disciplined credit management has supported superior asset quality, maximizing the value of the revenue generated.  Our team of skilled, dedicated professionals continue to do an outstanding job meeting customers’ financial needs, which has led to consistently positive and steady financial results.

Even through a period of unusually high interest rates that has moderated lending activity and provided challenges, we have worked with customers to find solutions. A healthy loan portfolio has been a key growth driver as total assets surpassed the $1 billion mark in the third quarter. Assets have increased more than $30 million during 2024,  primarily reflecting loan portfolio growth, net of fees, of more than $25 million since the beginning of the year.

“Initiatives to earn new deposits and a focus on retaining customers’ deposits have led to growth of total deposits since the beginning of the year. At September 30, 2024, interest bearing demand accounts have grown by $2.7 million, time deposits have increased, and noninterest-bearing demand deposits have held steady. We continue to focus on building this important source of funding for loans and providing liquidity.



 

1


 

“Strategic locations in Buchanan, Virginia, opened at the end of the second quarter, and Nellysford, Virginia, opened at the beginning of the third quarter, are off to strong starts and further expand the Bank’s footprint and deposit-gathering capabilities.



The third quarter reflected healthy year-over-year growth of noninterest income. Expanding fee income from wealth management, treasury services for our business customers, and gains on sales of originated mortgage loans to the secondary market have fueled noninterest income.



“During the third quarter of 2024, we saw encouraging signs that stabilizing interest rates, slowing inflation, and continued economic health in our served markets is supporting positive trends. We are continuing to see increased commercial lending demand, positive trends in residential mortgage volume and origination fees, and continued deposit growth.

Looking ahead, we feel that the interest rate environment and continuing economic stabilization and predictability will be clear positives. We anticipate a gradual lessening of the intense pressure on margins and slowing of interest expense increases that have characterized the past two years.



“Our longstanding commitment to building strong, lasting banking relationships with customers has provided many opportunities to demonstrate the Bank of the James’ value. As a result, use of our commercial cash management services and digital banking capabilities continues to grow, retail customers take advantage of a wide range of digital and in-person banking options, and residential mortgage customers and retail banking benefit customers from our efficient service, digital capabilities and integrated financial offerings.

We feel the Company is well-positioned to continue on our path of providing superior value to our shareholders, customers, and the communities we serve.”

Third Quarter and First Nine Months of 2024 Highlights

·

Total interest income of $11.56 million in the third quarter of 2024 increased 14% from a year earlier, and increased from $10.94 million in the second quarter of 2024. In the first nine months of 2024, total interest income of $33.01 million rose 15% compared with a year earlier. The growth in the quarter and first nine months primarily reflected commercial loan interest rates,  commercial real estate (CRE) growth, and the addition of higher-rate residential mortgages.

·

Net interest income after provision for (recovery of) credit losses in the third quarter of 2024 was down marginally compared with the third quarter of 2023. For the first nine months of 2024, net interest income after provision for (recovery of) credit losses was relatively stable compared with the first nine months of 2023. The first nine months of 2024 reflected loan loss recoveries driven by strong asset quality. The third quarter of 2024 reflects a small credit loss provision based primarily on loan growth. Results in both 2024 periods reflected the impact of elevated interest expense.

·

Net interest margin in the third quarter of 2024 was 3.16%, marginally lower than a year earlier but up from second quarter of 2024 net interest margin of 3.02%. Interest spread was 2.81% in the third quarter of 2024.  In the first nine months of 2024, net interest margin was 3.07% and interest spread was 2.73%.

·

Total noninterest income for the third quarter of 2024 rose 19%  compared with the third quarter of 2023, and in the first nine months of 2024 increased 17% compared with the first nine months of 2023. Growth primarily reflected gains on sale of loans held for sale, strong wealth management fee income contributions from PWW, and fee income generated by commercial treasury services and residential mortgage originations.

 

2


 

·

Loans, net of the allowance for credit losses, increased to $627.11 million at September 30, 2024 compared with $601.92 million at December 31, 2023, primarily reflecting overall loan stability and growth in CRE and residential mortgage loans.

·

Measures of asset quality included a  ratio of nonperforming loans to total loans of 0.20% at September 30,  2024, minimal levels of nonperforming loans, and zero other real estate owned (OREO).

·

Total assets increased to $1.01 billion at September 30, 2024 from $969.37 million at December 31, 2023.

·

Total deposits increased to $907.61 million at September 30, 2024 compared with $878.46 million at December 31, 2023.

·

Shareholder value measures at September 30, 2024 reflected consistent growth from December 31, 2023 in total stockholders’ equity and retained earnings. Book value per share of $15.15 has increased significantly from $13.58 at June 30, 2024 and $13.21 at December 31, 2023.

·

On October 15, 2024, the Companys board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of November 22, 2024, to be paid on December 6, 2024.



Third Quarter,  First Nine Months of 2024 Operational Review

Net interest income after provision for credit losses for the third quarter of 2024 was $7.42 million compared to net interest income after recovery of credit losses of $7.53 million a year earlier. In the first nine months of 2024, net interest income after recovery of credit losses was $22.13 million compared with $22.63 million a year earlier. The Company recorded a small provision for credit losses in the third quarter of 2024,  primarily due to higher loan levels. The credit loss recovery in the first nine months of 2024 was $584,000 compared with  $278,000 in the first nine months of 2023.

Total interest income increased to $11.56 million in the third quarter of 2024 compared with $10.14 million a year earlier.  The first nine months of 2024 total interest income was  $33.01 million, up from $28.82 million in the first nine months of 2023. The year-over-year increases primarily reflected upward adjustments to variable rate commercial loans and new loans reflecting the prevailing rate environment.

Investment portfolio management has enabled the Company to capitalize on attractive Fed funds rates. In the third quarter of 2024, the yield on all interest-earning assets was 4.86% compared with 4.43% a year earlier. The yield on interest-bearing loans, including fees, was 5.65% in the third quarter of 2024 compared with 5.13% a year earlier. The interest rates on certain existing commercial loans continue to reprice upward in accordance with their terms.

Total interest expense in the third quarter and first nine months of 2024 increased significantly compared with the prior periods of 2023, primarily reflecting higher deposit rates commensurate with the prevailing interest rate environment, and growth of interest-bearing time deposits. Rates on interest-bearing deposits and total interest-bearing liabilities have placed continuing pressure on margins. The net interest margin in the third quarter of 2024 was 3.16% and the interest spread was 2.81% compared with 3.21% and 2.94%, respectively, in the third quarter of 2023.

J. Todd Scruggs, Executive Vice President and CFO of the Bank commented: “Even before the Federal Reserve announced a 50 basis point reduction in rates, we anticipated that a stabilizing rate environment would gradually lessen the pressure on margins we have experienced. While not directly reflecting the Fed rate cut announced in mid-September, our third quarter net interest margin of 3.16% improved from the 3.02% margin in the second quarter of 2024. We anticipate continuing gradual margin and spread improvement in future quarters.

 

3


 

Noninterest income in the third quarter of 2024 rose 19% to $3.82 million compared with $3.20 million in the third quarter of 2023.  In the first nine months of 2024, noninterest income was up 17% to $11.32 million from $9.70 million a year earlier.

Noninterest income reflected income contributions from debit card activity, a gain on an investment in an SBIC fund, commercial treasury services, and the mortgage division. In the third quarter of 2024, income from wealth management fees increased 19% compared with a year earlier and gains on sale of loans held for sale rose 34% from a year earlier.

Noninterest expense in the third quarter of 2024 was $8.78 million, up 8% compared with $8.14 million in the first nine months of 2023. Noninterest expense in the first nine months of 2024 was $25.60 million, up 6% from $24.09 million a year earlier. Noninterest expense in the first nine months of 2024 reflected additional personnel costs related to staffing new locations, and the decision to begin accruing for anticipated year-end performance-based compensation ahead of the fourth quarter.

Balance Sheet:  Strong Cash Position, Asset Quality,  Stability

Total assets grew to $1.01 billion at September 30, 2024 compared with $969.37 million at December 31, 2023, with the increase primarily reflecting loan growth.

Loans, net of allowance for credit losses, were $627.11 million at September 30, 2024 compared with $601.92 million at December 31, 2023, primarily reflecting growth of commercial real estate loans and strong, stable residential mortgage, consumer, and construction lending.

Commercial real estate loans (owner-occupied and non-owner occupied and excluding construction loans) were $333.77 million compared with $306.86 million at December 31, 2023,  reflecting a decreasing rate of loan payoffs and new loans. Of this amount, commercial non-owner occupied was approximately $189.98 million and commercial owner occupied was $143.79 million.    The Bank closely monitors  concentrations in these segmentsWe have no commercial real estate loans secured by large office buildings in large metropolitan city centers.

Commercial construction/land loans and residential construction/land loans were $50.00 million at September 30, 2024 compared with $53.64 million at December 31, 2023.  The Company continued experiencing positive activity and health in commercial and residential construction projects.

Commercial and industrial loans were $60.34 million at September 30, 2024, reflecting a continuing trend of stability in this loan segment. Commercial and industrial loans were $64.92 million at June 30, 2024 and $65.32 million at December 31, 2023.

Residential mortgage loans were $114.99 million at September 30, 2024 compared with $112.73 million at June 30, 2024 and $106.99 million at December 31, 2023.  Growth of retained mortgages has been minimal, as the Bank has continued to focus on selling the majority of originated mortgage loans to the secondary market. Consumer loans (open-end and closed-end) were $75.09 million at September 30, 2024, essentially unchanged from totals at December 31, 2023.

Ongoing high asset quality continues to have a positive impact on the Company’s financial performance. The ratio of nonperforming loans to total loans at September 30, 2024 was 0.20%  compared with 0.06% at December 31, 2023.  The allowance for credit losses on loans to total loans was 1.12% at September 30, 2024 compared with 1.22%  on December 31, 2023. Total nonperforming loans were $1.30 million at September 30, 2024. As a result of having no OREO, total nonperforming assets were the same as total nonperforming loans.

Total deposits were $907.61 million at September 30, 2024, compared with $878.46 million at December 31, 2023. Noninterest bearing demand deposits were $132.22 million compared with $134.28 million at December 31, 2023. Initiatives to attract deposit business and new locations contributed to the approximately $2.8 million growth in NOW, money market, and savings totals since December 31, 2023.

 

4


 

Time deposits were $234.42 million at September 30, 2024 compared with $205.96 million at December 31, 2023.  At both September 30, 2024 and December 31, 2023, the Bank had no brokered deposits.

Key measures of shareholder value continued trending positively. Book value per share rose to $15.15 compared with $13.21 at December 31, 2023, reflecting strong financial performance and a smaller unrealized loss in the Company’s available-for-sale investment portfolio. Total stockholders equity rose to $68.83 million from $60.04 million at December 31, 2023. Retained earnings at September 30, 2024 were $41.64 million compared with $36.68 million at December 31, 2023.

Some balance sheet measures are impacted by interest rate fluctuations and fair market valuation measurements in the Companys  available-for-sale securities portfolio and are reflected in accumulated other comprehensive loss.  These mark-to-market losses are excluded when calculating the Banks regulatory capital ratios.  The available-for-sale securities portfolio is composed primarily of securities with explicit or implicit government guarantees, including U.S. Treasuries and U.S. agency obligations, and other highly-rated debt instruments. The Company does not expect to realize the unrealized losses as it has the intent and ability to hold the securities until their recovery, which may be at maturity. Management continues to diligently monitor the creditworthiness of the issuers of the debt instruments within its securities portfolio.

About the Company

Bank of the James, a wholly-owned subsidiary of Bank of the James Financial Group, Inc. opened for business in July 1999 and is headquartered in Lynchburg, Virginia. The Bank currently services customers in Virginia from offices located in Altavista, Amherst, Appomattox, Bedford, Blacksburg, Buchanan, Charlottesville, Forest, Harrisonburg, Lexington, Lynchburg, Madison Heights, Nellysford, Roanoke, Rustburg,  and Wytheville. The Bank offers full investment and insurance services through its BOTJ Investment Services division and BOTJ Insurance, Inc. subsidiary. The Bank provides mortgage loan origination through Bank of the James Mortgage, a division of Bank of the James. The Company provides investment advisory services through its wholly-owned subsidiary, Pettyjohn, Wood & White, Inc., an SEC-registered investment advisor. Bank of the James Financial Group, Inc. common stock is listed under the symbol BOTJ on the NASDAQ Stock Market, LLC. Additional information on the Company is available at www.bankofthejames.bank.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words believe, estimate, expect, intend, anticipate, plan and similar expressions and variations thereof identify certain of such forward-looking statements which speak only as of the dates on which they were made. Bank of the James Financial Group, Inc. (the Company) undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Such factors include, but are not limited to, competition, general economic conditions, potential changes in interest rates,  changes in the value of real estate securing loans made by the Bank as well as geopolitical conditions. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Companys filings with the Securities and Exchange Commission. 

CONTACT: J. Todd Scruggs, Executive Vice President and Chief Financial Officer (434) 846-2000.



FINANCIAL RESULTS FOLLOW

 

5


 

Bank of the James Financial Group, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollar amounts in thousands, except per share amounts)



 

 

 



(unaudited)

 

 

Assets

9/30/2024

 

12/31/2023

Cash and due from banks

$22,692 

 

$25,613 

Federal funds sold

86,515 

 

49,225 

  Total cash and cash equivalents

109,207 

 

74,838 



 

 

 

Securities held-to-maturity, at amortized cost (fair value of $3,328 as of September 30, 2024 and $3,231 as of December 31, 2023) net of allowance for credit loss of $0 as of September 30, 2024 and December 31, 2023

3,610 

 

3,622 

Securities available-for-sale, at fair value

192,469 

 

216,510 

Restricted stock, at cost

1,821 

 

1,541 

Loans held for sale

3,239 

 

1,258 

Loans, net of allowance for credit losses of $7,078 as of September 30, 2024 and $7,412 as of December 31, 2023

627,112 

 

601,921 

Premises and equipment, net

19,378 

 

18,141 

Interest receivable

2,697 

 

2,835 

Cash value - bank owned life insurance

22,716 

 

21,586 

Customer relationship intangible

6,865 

 

7,285 

Goodwill

2,054 

 

2,054 

Income taxes receivable

-

 

128 

Deferred tax asset

7,576 

 

8,206 

Other assets

9,319 

 

9,446 

  Total assets

$1,008,063 

 

$969,371 



 

 

 

Liabilities and Stockholders' Equity

 

 

 

Deposits

 

 

 

  Noninterest bearing demand

$132,223 

 

$134,275 

  NOW, money market and savings

540,966 

 

538,229 

  Time

234,421 

 

205,955 

Total deposits

907,610 

 

878,459 



 

 

 

Capital notes, net

10,046 

 

10,042 

Other borrowings

9,444 

 

9,890 

Income taxes payable

212 

 

-

Interest payable

758 

 

480 

Other liabilities

11,159 

 

10,461 

  Total liabilities

$939,229 

 

$909,332 



 

 

 

Stockholders' equity

 

 

 



 

 

 

6


 

  Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding 4,543,338 as of September 30, 2024 and December 31, 2023

9,723 

 

9,723 

  Additional paid-in-capital

35,253 

 

35,253 

  Accumulated other comprehensive (loss)

(17,782)

 

(21,615)

  Retained earnings

41,640 

 

36,678 

Total stockholders' equity

$68,834 

 

$60,039 



 

 

 

Total liabilities and stockholders' equity

$1,008,063 

 

$969,371 



 

7


 

Bank of the James Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operation

(dollar amounts in thousands, except per share amounts)



For the Three Months Ended

 

For the Nine Months Ended



September 30,

 

September 30,

Interest Income

2024

 

2023

 

2024

 

2023

  Loans

$9,004 

 

$7,990 

 

$25,375 

 

$23,251 

  Securities

 

 

 

 

 

 

 

    US Government and agency obligations

369 

 

321 

 

1,068 

 

962 

    Mortgage backed securities

442 

 

435 

 

1,974 

 

1,255 

    Municipals - taxable

298 

 

286 

 

872 

 

853 

    Municipals - tax exempt

18 

 

18 

 

55 

 

55 

    Dividends

12 

 

 

59 

 

49 

    Corporates

136 

 

139 

 

407 

 

423 

  Interest bearing deposits

303 

 

134 

 

628 

 

375 

  Federal Funds sold

981 

 

812 

 

2,569 

 

1,601 

    Total interest income

11,563 

 

10,143 

 

33,007 

 

28,824 



 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

  Deposits

 

 

 

 

 

 

 

    NOW, money market savings

1,487 

 

894 

 

4,145 

 

1,916 

    Time deposits

2,375 

 

1,683 

 

6,731 

 

3,918 

  FHLB borrowings

-

 

-

 

-

 

31 

  Finance leases

18 

 

22 

 

58 

 

66 

  Other borrowings

92 

 

98 

 

278 

 

297 

  Capital notes

82 

 

82 

 

245 

 

245 

   Total interest expense

4,054 

 

2,779 

 

11,457 

 

6,473 



 

 

 

 

 

 

 

    Net interest income

7,509 

 

7,364 

 

21,550 

 

22,351 



 

 

 

 

 

 

 

  Provision for (recovery of) credit losses

92 

 

(164)

 

(584)

 

(278)



 

 

 

 

 

 

 

    Net interest income after recovery of provision for credit losses

7,417 

 

7,528 

 

22,134 

 

22,629 



 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

  Gain on sales of loans held for sale

1,326 

 

989 

 

3,526 

 

3,065 

  Service charges, fees and commissions

991 

 

1,004 

 

2,930 

 

2,942 

  Wealth management fees

1,244 

 

1,050 

 

3,583 

 

3,098 

  Life insurance income

189 

 

139 

 

531 

 

405 

  Gain on sales and calls of securities, net

31 

 

-

 

669 

 

-

  Other

42 

 

19 

 

82 

 

179 



 

 

 

 

 

 

 

    Total noninterest income

3,823 

 

3,201 

 

11,321 

 

9,689 



 

 

 

 

 

 

 

Noninterest expenses

 

 

 

 

 

 

 

  Salaries and employee benefits

4,920 

 

4,683 

 

14,256 

 

13,296 

 

8


 

  Occupancy

514 

 

458 

 

1,493 

 

1,389 

  Equipment

640 

 

501 

 

1,879 

 

1,813 

  Supplies

131 

 

118 

 

397 

 

399 

  Professional

718 

 

682 

 

2,214 

 

2,075 

  Data processing

764 

 

689 

 

2,263 

 

2,079 

  Marketing

220 

 

204 

 

481 

 

683 

  Credit

190 

 

218 

 

612 

 

623 

  Other real estate

-

 

 

-

 

36 

  FDIC insurance

94 

 

126 

 

329 

 

321 

  Amortization of intangibles

140 

 

46 

 

420 

 

420 

  Other

445 

 

412 

 

1,258 

 

957 

    Total noninterest expenses

8,776 

 

8,140 

 

25,602 

 

24,091 



 

 

 

 

 

 

 

    Income before income taxes

2,464 

 

2,589 

 

7,853 

 

8,227 



 

 

 

 

 

 

 

    Income tax expense

474 

 

511 

 

1,527 

 

1,631 



 

 

 

 

 

 

 

    Net Income

$1,990 

 

$2,078 

 

$6,326 

 

$6,596 



 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

4,543,338 

 

4,543,338 

 

4,543,338 

 

4,568,789 



 

 

 

 

 

 

 

Earnings per common share - basic and diluted

$0.44 

 

$0.46 

 

$1.39 

 

$1.44 



 

9


 

Bank of the James Financial Group, Inc. and Subsidiaries

Dollar amounts in thousands, except per share data

unaudited

Selected Data:

Three

months

ending

Sep 30,

2024

Three

months

ending

Sep 30,

2023

Change

Year

to

date

Sep 30,

2024

Year

to

date

Sep 30,

2023

Change

Interest income

$11,563  $10,143  14.00%  $33,007  $28,824  14.51% 

Interest expense

4,054  2,779  45.88%  11,457  6,473  77.00% 

Net interest income

7,509  7,364  1.97%  21,550  22,351 

-3.58%

Provision for (recovery of) credit losses

92  (164)

-156.10%

(584) (278) 110.07% 

Noninterest income

3,823  3,201  19.43%  11,321  9,689  16.84% 

Noninterest expense

8,776  8,140  7.81%  25,602  24,091  6.27% 

Income taxes

474  511 

-7.24%

1,527  1,631 

-6.38%

Net income

1,990  2,078 

-4.23%

6,326  6,596 

-4.09%

Weighted average shares outstanding - basic

4,543,338  4,543,338 

-

4,543,338  4,568,789  (25,451)

Weighted average shares outstanding - diluted

4,543,338  4,543,338 

-

4,543,338  4,568,789  (25,451)

Basic net income

per share

$0.44  $0.46  $(0.02) $1.39  $1.44  $(0.05)

Fully diluted net income per share

$0.44  $0.46  $(0.02) $1.39  $1.44  $(0.05)



Balance Sheet at

period end:

Sep 30,

2024

Dec 31,

2023

Change

Sep 30,

2023

Dec 31,

2022

Change

Loans, net

$627,112  $601,921  4.19%  $599,585  $605,366 

-0.95%

Loans held for sale

3,239  1,258  157.47%  3,325  2,423  37.23% 

Total securities

196,079  220,132 

-10.93%

185,603  189,426 

-2.02%

Total deposits

907,610  878,459  3.32%  880,203  848,138  3.78% 

Stockholders' equity

68,834  60,039  14.65%  50,129  50,226 

-0.19%

Total assets

1,008,063  969,371  3.99%  960,887  928,571  3.48% 

Shares outstanding

4,543,338  4,543,338 

-

4,543,338  4,628,657  (85,319)

Book value per share

$15.15  $13.21  $1.94  $11.03  $10.85  $0.18 



 

10


 

Daily averages:

Three

months

ending

Sep 30,

2024

Three

months

ending

Sep 30,

2023

Change

Year

to

date

Sep 30,

2024

Year

to

date

Sep 30,

2023

Change

Loans

$629,860  $612,021  2.91%  $617,582  $618,152 

-0.09%

Loans held for sale

3,845  4,421 

-13.03%

3,454  3,548 

-2.65%

Total securities (book value)

220,730  222,969 

-1.00%

237,215  223,391  6.19% 

Total deposits

902,615  869,655  3.79%  895,000  862,212  3.80% 

Stockholders' equity

61,576  52,564  17.14%  60,564  51,274  18.12% 

Interest earning assets

946,518  909,774  4.04%  937,793  897,364  4.51% 

Interest bearing liabilities

785,980  740,516  6.14%  776,672  733,343  5.91% 

Total assets

995,101  953,546  4.36%  986,132  945,389  4.31% 



Financial Ratios:

Three

months

ending

Sep 30,

2024

Three

months

ending

Sep 30,

2023

Change

Year

to

date

Sep 30,

2024

Year

to

date

Sep 30,

2023

Change

Return on average assets

0.80%  0.86%  (0.06) 0.86%  0.93%  (0.07)

Return on average equity

12.86%  15.68%  (2.82) 13.95%  17.20%  (3.25)

Net interest margin

3.16%  3.21%  (0.05) 3.07%  3.33%  (0.26)

Efficiency ratio

77.44%  77.05%  0.39  77.89%  75.19%  2.70 

Average equity to

average assets

6.19%  5.51%  0.68  6.14%  5.42%  0.72 



Allowance for credit losses:

Three

months

ending

Sep 30,

2024

Three

months

ending

Sep 30,

2023

Change

Year

to

date

Sep 30,

2024

Year

to

date

Sep 30,

2023

Change

Beginning balance

$6,951  $7,586 

-8.37%

$7,412  $6,259  18.42% 

Retained earnings adjustment related to impact of adoption of ASU 2016-13

-

-

N/A

-

1,245 

-100.00%

Provision for (recovery of) credit losses*

106  (130)

-181.54%

(494) (188) 162.77% 

Charge-offs

-

(144)

-100.00%

(84) (196)

-57.14%

Recoveries

21  162.50%  244  200  22.00% 

Ending balance

7,078  7,320 

-3.31%

7,078  7,320 

-3.31%



  * does not include provision for or recovery of unfunded loan commitment liability

 

11


 



Nonperforming assets:

Sep 30,

2024

Dec 31,

2023

Change

Sep 30,

2023

Dec 31,

2022

Change

Total nonperforming loans

$1,295  $391  231.20%  $585  $633 

-7.58%

Other real estate owned

-

-

N/A

-

566 

-100.00%

Total nonperforming assets

1,295  391  231.20%  585  1,199 

-51.21%



Asset quality ratios:

Sep 30,

2024

Dec 31,

2023

Change

Sep 30,

2023

Dec 31,

2022

Change

Nonperforming loans to total loans

0.20%  0.06%  0.14  0.10%  0.10%  (0.01)

Allowance for credit losses for loans to total loans

1.12%  1.22%  (0.10) 1.21%  1.02%  0.18 

Allowance for credit losses for loans to nonperforming loans

546.56%  1894.56%  1,348.00  1251.28%  989.42%  261.86 





 

12