Financial Performance - As of December 31, 2024, First National Bank had total assets of approximately $1.11 billion, down from $1.14 billion in 2023, with net income of approximately $5.2 million compared to $5.5 million in 2023[20]. - State Bank reported total assets of approximately $198.6 million as of December 31, 2024, a decrease from $201.7 million in 2023, with net income of approximately $933 thousand, down from $1.4 million in 2023[22]. - Boone Bank's total assets increased to approximately $156.7 million as of December 31, 2024, up from $149.4 million in 2023, with net income of approximately $616 thousand compared to $740 thousand in 2023[24]. - Reliance Bank had total assets of approximately $307.5 million as of December 31, 2024, down from $313.3 million in 2023, with net income of approximately $1.9 million, up from $1.7 million in 2023[26]. - United Bank's total assets increased to approximately $130.3 million as of December 31, 2024, compared to $118.5 million in 2023, with net income of approximately $1.1 million, up from $1.0 million in 2023[28]. - Iowa State Bank reported total assets of approximately $270.3 million as of December 31, 2024, an increase from $254.7 million in 2023, with net income of approximately $2.0 million for both years[30]. - The Company reported net income of $10.2 million for the year ended December 31, 2024, a decrease of 5.5% compared to $10.8 million in 2023[180]. - Earnings per share for 2024 were $1.14, down from $1.20 in 2023[180]. - Interest income increased to $82.6 million in 2024 from $74.3 million in 2023, while interest expense rose to $37.6 million from $29.7 million[175]. - The Company's return on average equity for 2024 was 6.02%, down from 7.05% in 2023, and return on average assets was 0.48%, compared to 0.51% in 2023[181]. - The efficiency ratio for 2024 was 76.59%, compared to 74.60% in 2023, indicating a decline in operational efficiency[175]. - Net interest income for 2024 totaled $45.0 million, a 0.8% increase from $44.6 million in 2023[210]. Loan Portfolio - The Banks' loan portfolio consists of approximately 53% commercial loans, 22% agricultural loans, and 23% residential loans[34][35][36]. - Commercial real estate loans account for approximately 54% of the loan portfolio, with loan-to-appraisal value ratios not exceeding 80%[40]. - Commercial and agricultural operating and term loans represent about 17% of the loan portfolio, with loan-to-value ratios generally not exceeding 75%[42]. - Residential first mortgage loans, home equity term loans, and home equity lines of credit together make up approximately 23% of the loan portfolio, with loan-to-value ratios typically not exceeding 90%[47]. - Consumer loans represent around 1% of the loan portfolio, with automobile loans not exceeding 90% of the value for new cars and 75% for used cars[48]. - The allowance for credit losses for loans is established through a disciplined process, incorporating both asset-specific and pooled components to estimate expected credit losses[189]. - The company's credit loss expense is necessary to maintain the allowance for credit losses at the expected levels inherent within the loan portfolio[194]. - Net loan charge-offs increased to $453 thousand in 2024 compared to $213 thousand in 2023, primarily due to growth in the loan portfolio[212]. - Loans classified as substandard and substandard-impaired rose by $18.0 million to $49.7 million in 2024, mainly due to downgrades in commercial real estate and operating loan portfolios[212]. Regulatory Environment - The Company is subject to extensive federal and state regulation, which may materially affect its business and operations in the future[71]. - As of December 31, 2024, the Banks exceeded all regulatory capital requirements and were designated as "well capitalized" under federal guidelines[94]. - The deposit insurance coverage limit is $250,000 per depositor, per insured depository institution for each account ownership category[87]. - The Federal Reserve requires bank holding companies to obtain approval before acquiring more than 5% of the voting stock of any bank[75]. - The Dodd-Frank Act subjects the Banks to regulations from the Consumer Financial Protection Bureau, which has substantial power over consumer financial products and services[85]. - Iowa law currently has a deposit concentration limit of 15% on the amount of deposits that any one banking organization can control[80]. - The Basel III Capital Rules require a Common Equity Tier 1 (CET1) ratio of 6.5% for well-capitalized status[91]. - The Federal Reserve and the FDIC have issued policy statements that generally restrict insured banks and bank holding companies from paying dividends unless out of current operating earnings[96]. - The Company’s ability to pay dividends is subject to federal regulatory considerations and may be impacted by its financial condition and capital requirements[167]. Market Competition - The geographic market area served by the Banks is highly competitive, with 49 FDIC insured institutions having around 125 locations in the primary trade areas[67]. - The Company anticipates continued changes in bank competition, particularly from fintech companies and credit unions, which have significant competitive advantages[69]. - The Company faces significant competition from larger financial institutions, which may adversely affect its ability to compete effectively in the market[140]. - The competitive landscape in Ames, Iowa, includes fifteen banks and five credit unions, which may exert downward pressure on the net interest margin[211]. Operational Risks - The Company employs approximately 268 individuals, with 93% being full-time employees and an average tenure of about eleven years[52]. - The Company faces risks related to credit losses, particularly if actual credit losses exceed the allowance for credit losses, which could decrease net income[116]. - The Company must maintain disciplined underwriting standards to manage credit risk effectively, as weakening these standards could lead to increased loan defaults[113]. - The Company is exposed to operational risks from data processing failures and employee misconduct, which could result in financial losses and regulatory sanctions[125]. - Operational risks include the potential inability to attract and retain key personnel, which could hinder business growth and operations[124]. - The Company faces cybersecurity risks, with increased threats due to remote working, which could lead to significant financial losses[129]. - Damage to the company's reputation from various sources, including cybersecurity breaches, could lead to lost revenue and increased costs[136]. Investment and Asset Management - Assets under management for wealth management services increased to $456.3 million as of December 31, 2024, up from $416.0 million in 2023[38]. - The investment policy focuses on U.S. Government securities and corporate debt securities, balancing liquidity needs with risk minimization and yield maximization[49]. - The fair value of the Company's securities portfolio was approximately $648.5 million as of December 31, 2024, with a net unrealized loss of $52.0 million primarily due to increased interest rates[119]. - The company's investment securities portfolio generated a total revenue of $14,539 in 2024, with a yield of 2.08%, compared to $15,575 and a yield of 2.03% in 2023[204]. Economic Environment - Consumer inflation, as measured by the Consumer Price Index, increased by 3.4% for the year ended December 31, 2023, and 2.9% for the year ended December 31, 2024[111]. - The economic environment, including inflation and interest rates, significantly impacts the Company's financial performance and the ability of customers to repay loans[109]. - The Company is subject to risks from evolving trade policies that could disrupt major trade relationships, affecting customer repayment capabilities[112]. - The Federal Open Market Committee has initiated a series of increases in the short-term federal funds interest rate to combat inflation, which could adversely affect economic activity[110]. - The Company is facing challenges from elevated interest rates, which may negatively impact net interest income and margins going forward[184]. Shareholder Returns - The Company declared aggregate annual cash dividends of approximately $8.4 million in 2024 and $9.7 million in 2023, translating to $0.94 per share in 2024 and $1.08 per share in 2023[166]. - A successor Stock Repurchase Plan was approved on November 14, 2024, allowing for the purchase of up to 100,000 shares, set to expire on November 12, 2025[172]. - The Company purchased 43,057 shares under its Stock Repurchase Plan in 2024, with no purchases made in 2023[169]. - The Company relies on dividends from its banks for nearly all revenue, and any inability to receive these dividends could adversely affect financial obligations[123].

Net Income and Earnings - Net income for Q4 2024 was $3.5 million, or $0.39 per share, compared to $2.1 million, or $0.24 per share, in Q4 2023, driven by higher loan interest income and lower credit loss expense[2] - Net income for the year ended December 31, 2024, was $10.22 million, compared to $10.82 million in 2023, a decrease of 5.55%[32] - Basic and diluted earnings per share for the year ended December 31, 2024, were $1.14, compared to $1.20 in 2023, a decrease of 5.00%[32] - Forecasted earnings for 2025 are in the range of $1.72 to $1.82 per share, up from $1.14 per share in 2024, driven by an improved net interest margin[26] Loan and Interest Income - Loan interest income increased by $1.8 million in Q4 2024 compared to Q4 2023, primarily due to higher average interest rates and loan portfolio growth[6] - Net interest margin for Q4 2024 was 2.38%, up from 2.15% in Q4 2023, driven by increased loan volume and yield[6] - Net interest income for the year ended December 31, 2024, was $44.98 million, compared to $44.63 million in 2023, an increase of 0.78%[32] - Total interest and dividend income for the year ended December 31, 2024, was $82.61 million, compared to $74.30 million in 2023, an increase of 11.18%[32] - Total interest expense for the year ended December 31, 2024, was $37.63 million, compared to $29.68 million in 2023, an increase of 26.79%[32] Noninterest Income and Expense - Noninterest income for Q4 2024 totaled $2.6 million, a 15.0% increase from Q4 2023, primarily due to growth in wealth management income[8] - Total noninterest income for the year ended December 31, 2024, was $9.84 million, compared to $9.22 million in 2023, an increase of 6.75%[32] - Total noninterest expense for the year ended December 31, 2024, was $41.98 million, compared to $40.16 million in 2023, an increase of 4.53%[32] Assets and Liabilities - Total assets as of December 31, 2024, were $2.13 billion, a decrease of $22.3 million from December 31, 2023, mainly due to a decrease in securities available-for-sale[16] - Total assets decreased from $2,155.48 million in 2023 to $2,133.18 million in 2024, a decline of 1.03%[30] - Net loans increased to $1.30 billion as of December 31, 2024, up 2.0% from $1.28 billion in 2023, driven by growth in residential real estate and agricultural operating loan portfolios[18] - Loans receivable, net increased from $1,277.81 million in 2023 to $1,303.92 million in 2024, a growth of 2.04%[30] - Deposits totaled $1.85 billion as of December 31, 2024, a 1.9% increase from $1.81 billion in 2023, primarily due to growth in time deposits and public funds[20] - Total deposits increased from $1,811.83 million in 2023 to $1,846.68 million in 2024, a growth of 1.92%[30] Share Repurchase and Dividends - The company repurchased 43,057 shares of common stock in Q4 2024 at an average price of $16.35 per share, totaling $704 thousand[23] - The company declared a quarterly cash dividend of $0.20 per share, payable on February 14, 2025[25]

Company Analysis - Ames National Corporation's stock price has significantly declined due to the announcement of a dividend cut [1] - The company is expected to recover its earnings moving forward, which may stabilize the dividend policy [1] - No further dividend cuts are anticipated as earnings are projected to improve [1] Market Context - The article does not provide specific industry or market-related data or trends [1][2] Disclosure and Author Context - The author has no financial positions in Ames National Corporation or related companies [1] - The article reflects the author's personal opinions and is not influenced by any business relationships [1] - Seeking Alpha's disclosure emphasizes that past performance does not guarantee future results and no specific investment advice is provided [2]

Net Income and Earnings - Net income for Q3 2024 was $2.2 million, or $0.25 per share, compared to $2.9 million, or $0.33 per share, in Q3 2023, primarily due to increased credit loss expense and consultant fees[118] - Net interest income (GAAP) for Q3 2024 was $11.077 million, up from $10.689 million in Q3 2023, with a tax-equivalent adjustment of $128 thousand[125] - Net interest margin on an FTE basis (non-GAAP) for Q3 2024 was 2.21%, up from 2.11% in Q3 2023[125] - Net interest income for Q3 2024 increased to $11.1 million, up from $10.7 million in Q3 2023, with a net interest margin of 2.21% compared to 2.11% in the same period last year[133] - Net interest income for the nine months ended September 30, 2024 was $32.9 million, with a net interest margin of 2.16%, compared to $33.7 million and 2.21% in the same period last year[149] Credit Loss and Loan Performance - Credit loss expense for Q3 2024 was $371 thousand, compared to a credit loss benefit of $274 thousand in Q3 2023, driven by loan growth and a specific reserve on a commercial loan[119] - Net loan charge-offs for Q3 2024 totaled $10 thousand, compared to net loan recoveries of $4 thousand in Q3 2023[119] - Credit loss expense for Q3 2024 was $371 thousand, compared to a credit loss benefit of $274 thousand in Q3 2023, mainly due to increased specific reserves in the commercial loan portfolio[137] - Credit loss expense for the nine months ended September 30, 2024 was $722 thousand, a significant increase from $34 thousand in the same period in 2023, primarily due to loan growth and increased specific reserves[153] - Problem loans as a percentage of total loans increased to 1.33% as of September 30, 2024, up from 1.08% at the end of 2023, primarily due to downgrades in commercial real estate and operating loan portfolios[168] - Substandard-impaired loans increased by $3.7 million to $16.9 million as of September 30, 2024, driven by downgrades in commercial real estate and commercial operating loan portfolios[169] - Nonaccrual loans totaled $17.5 million as of September 30, 2024, compared to $13.8 million as of December 31, 2023[172] - Loans past due 30 days or more totaled $9.8 million as of September 30, 2024, compared to $4.3 million as of December 31, 2023[173] - Watch and special mention loans classified as agricultural real estate and operating totaled $27.5 million as of September 30, 2024, compared to $19.9 million as of December 31, 2023[174] - Watch and special mention loans classified as commercial real estate totaled $41.0 million as of September 30, 2024, compared to $73.3 million as of December 31, 2023[175] - The allowance for credit losses as a percentage of outstanding loans was 1.34% as of September 30, 2024, compared to 1.30% at December 31, 2023[176] Interest Income and Expense - Interest income for Q3 2024 rose by $2.0 million (10.4%) compared to Q3 2023, driven by higher average rates and loan portfolio growth[134] - Interest expense for Q3 2024 increased by $1.6 million (19.3%) compared to Q3 2023, primarily due to customers shifting to higher-rate deposit products[136] - For the nine months ended September 30, 2024, interest income increased by $6.9 million (12.7%) compared to the same period in 2023, driven by higher average rates and loan portfolio growth[150] - Interest expense for the nine months ended September 30, 2024 increased by $7.7 million (37.1%) compared to the same period in 2023, due to higher market interest rates and customer shifts to higher-rate deposit products[152] Noninterest Income and Expense - Noninterest income for Q3 2024 increased by 2.2% to $2.41 million compared to $2.36 million in Q3 2023[138] - Noninterest expense for Q3 2024 rose by 7.2% to $10.5 million compared to $9.8 million in Q3 2023, driven by higher salaries and benefits and consultant fees[139] - Noninterest income increased by 4.0% to $7.2 million for the nine months ended September 30, 2024, driven by higher wealth management income, partially offset by securities sale losses[154] - Noninterest expense rose by 4.3% to $31.4 million for the nine months ended September 30, 2024, mainly due to increased employee numbers, salary and benefit costs, and $799 thousand in consultant fees[155] Tax and Equity - Income tax expense for Q3 2024 was $397 thousand, with an effective tax rate of 15%, down from 17% in Q3 2023, due to tax-exempt interest income and New Markets Tax Credits[140] - Income tax expense decreased to $1.2 million for the nine months ended September 30, 2024, with an effective tax rate of 15%, down from 17% in 2023, due to tax-exempt interest income and New Markets Tax Credits[156] - The Company's total stockholders' equity as of September 30, 2024 totaled $183.4 million, an increase of $17.6 million from December 31, 2023[192] Loan and Investment Portfolio - Total loans (including fees) for Q3 2024 averaged $1.303 billion, with an average yield of 5.14%, up from $1.251 billion and 4.67% in Q3 2023[129] - Real estate loans for Q3 2024 averaged $1.074 billion, with an average yield of 4.75%, up from $1.049 billion and 4.34% in Q3 2023[129] - Investment securities for Q3 2024 averaged $687.362 million, with an average yield of 2.09%, up from $756.366 million and 2.03% in Q3 2023[129] - Interest-bearing deposits with banks and federal funds sold for Q3 2024 averaged $39.456 million, with an average yield of 5.02%, up from $42.382 million and 4.49% in Q3 2023[129] - The loan portfolio increased to $1.296 billion as of September 30, 2024, up from $1.278 billion at the end of 2023, driven by growth in residential real estate, multi-family real estate, and agricultural operating loans[165] - Commercial real estate and multi-family real estate represent approximately 42% of the loan portfolio as of September 30, 2024[178] - Total investments as of September 30, 2024 were $688.6 million compared to $736.4 million as of December 31, 2023[185] Deposits and Cash Flow - Deposits decreased to $1.80 billion as of September 30, 2024, from $1.81 billion at the end of 2023, due to lower balances in noninterest-bearing accounts, partially offset by increases in time deposits and public funds[166] - Net cash provided by operating activities for the nine months ended September 30, 2024 totaled $8.4 million compared to $12.8 million for the nine months ended September 30, 2023[186] - Net cash provided by investing activities for the nine months ended September 30, 2024 was $51.6 million compared to $38.8 million for the nine months ended September 30, 2023[187] Stock Repurchase and Controls - No shares were repurchased in July, August, or September 2024, with 100,000 shares remaining under the Stock Repurchase Plan as of September 30, 2024[197][199] - The company's disclosure controls and procedures were deemed effective as of the end of the reporting period[195] - There were no material changes in the company's internal control over financial reporting during the last fiscal quarter[196] - The company's risk factors remained unchanged from those disclosed in the Form 10-K filed on March 8, 2024[196] Asset and Liability Management - Total assets decreased by $32.3 million to $2.1 billion as of September 30, 2024, primarily due to a reduction in securities available-for-sale, partially offset by loan growth[158] - The investment portfolio decreased by $47.8 million to $688.6 million as of September 30, 2024, mainly due to maturities exceeding purchases and a decrease in unrealized losses[158]

Net Income and Earnings - Net income for Q3 2024 was $2.2 million, a decrease from $2.9 million in Q3 2023, primarily due to increased credit loss expense and consultant fees[2] - Net income for the three months ended September 2024 was $2.22 million, down from $2.92 million in the same period in 2023[24] - Basic and diluted earnings per share for the three months ended September 2024 were $0.25, down from $0.33 in the same period in 2023[24] Net Interest Income - Net interest income for Q3 2024 increased by $0.4 million (3.6%) to $11.1 million compared to Q3 2023, driven by higher loan interest income[7] - Net interest income for the three months ended September 2024 was $11.08 million, compared to $10.69 million in the same period in 2023[24] - Total interest and dividend income for the three months ended September 2024 was $20.71 million, up from $18.76 million in the same period in 2023[24] Credit Loss Expense - Credit loss expense for Q3 2024 was $371 thousand, compared to a credit loss benefit of $274 thousand in Q3 2023, mainly due to increased specific reserves in the commercial loan portfolio[8] Noninterest Income and Expense - Noninterest income for Q3 2024 increased by 2.2% to $2.41 million compared to Q3 2023, driven by higher wealth management income[8] - Total noninterest income for the three months ended September 2024 was $2.41 million, compared to $2.36 million in the same period in 2023[24] - Total noninterest expense for the three months ended September 2024 was $10.51 million, up from $9.80 million in the same period in 2023[24] - The efficiency ratio for Q3 2024 was 77.87%, compared to 75.12% in Q3 2023, reflecting higher noninterest expenses[8] Total Assets and Loans - Total assets as of September 30, 2024, decreased by $30.9 million to $2.1 billion compared to September 30, 2023, primarily due to a decrease in interest-bearing deposits and securities available-for-sale[13] - Net loans increased by 5.2% to $1.30 billion as of September 30, 2024, compared to $1.23 billion in 2023, driven by growth in agriculture, residential, and commercial real estate loan portfolios[14] - Total assets decreased to $2,123.17 million in September 2024 from $2,154.05 million in September 2023[22] - Loans receivable, net increased to $1,295.77 million in September 2024 from $1,231.89 million in September 2023[22] Deposits - Deposits decreased by 1.5% to $1.80 billion as of September 30, 2024, compared to $1.83 billion in 2023, due to customers shifting to higher-rate deposit products[16] - Total deposits decreased to $1,801.72 million in September 2024 from $1,828.68 million in September 2023[22] Stockholders' Equity and Dividends - Stockholders' equity increased by $36.8 million to $183.4 million as of September 30, 2024, primarily due to a decrease in unrealized losses on the investment portfolio[17] - The company declared a quarterly cash dividend of $0.20 per share, payable on November 15, 2024[18] - Dividends declared per share for the three months ended September 2024 were $0.20, compared to $0.27 in the same period in 2023[24]

Net Income and Earnings Per Share - Net income for Q2 2024 was $2.2 million, or $0.24 per share, compared to $2.6 million, or $0.28 per share, in Q2 2023, primarily due to higher interest expenses on deposits[142] Interest Income and Expense - Interest income on loans increased due to higher rates and loan portfolio growth, while interest expense on deposits rose due to higher market rates[142] - Net interest income on an FTE basis (non-GAAP) was $11.007 million for Q2 2024, compared to $11.458 million in Q2 2023[149] - Net interest margin on an FTE basis (non-GAAP) was 2.14% for Q2 2024, down from 2.20% in Q2 2023[149] - Net interest income for Q2 2024 was $10.9 million, down from $11.3 million in Q2 2023, with a net interest margin of 2.14% compared to 2.20% in the same period last year[158] - Interest income increased by $2.0 million (11.1%) in Q2 2024 compared to Q2 2023, driven by higher average rates and loan portfolio growth[158] - Interest expense rose by $2.5 million (34.5%) in Q2 2024 compared to Q2 2023, primarily due to higher market interest rates and customer shifts to higher-rate deposit products[160] - Net interest income for the first six months of 2024 was $21.8 million, down from $23.0 million in the same period in 2023, with a net interest margin of 2.14% compared to 2.26%[172] - Interest income for the first six months of 2024 increased by $5.0 million (13.9%) compared to the same period in 2023, driven by higher average rates and loan portfolio growth[172] - Interest expense for the first six months of 2024 increased by $6.2 million (48.4%) compared to the same period in 2023, due to higher market rates and increased borrowings[174] Loan Portfolio and Credit Losses - No net loan charge-offs in Q2 2024, compared to $23 thousand in Q2 2023, with credit loss expense at $182 thousand in Q2 2024 versus $33 thousand in Q2 2023[142] - Credit loss expense for Q2 2024 was $182 thousand, up from $33 thousand in Q2 2023, mainly due to loan growth[160] - Credit loss expense for the first six months of 2024 was $351 thousand, up from $308 thousand in the same period in 2023, primarily due to loan growth and increased risks in commercial real estate collateral[175] - The loan portfolio increased slightly to $1.281 billion as of June 30, 2024, driven by growth in agriculture and multifamily loan portfolios[187] - Substandard-Impaired loans decreased by $1.2 million to $12.0 million as of June 30, 2024, primarily due to payments received during the year[192] - Nonaccrual loans totaled $12.6 million as of June 30, 2024, compared to $13.8 million as of December 31, 2023[195] - Loans past due 90 days and still accruing were $390 thousand as of June 30, 2024, compared to $109 thousand as of December 31, 2023[195] - Watch and special mention loans classified as agricultural real estate and operating totaled $31.1 million as of June 30, 2024, up from $19.9 million as of December 31, 2023[196] - Watch and special mention loans classified as commercial real estate totaled $51.4 million as of June 30, 2024, down from $73.3 million as of December 31, 2023[196] - The allowance for credit losses as a percentage of outstanding loans was 1.32% as of June 30, 2024, compared to 1.30% as of December 31, 2023[197] Noninterest Income and Expense - Noninterest income increased by 13.1% to $2.6 million in Q2 2024, driven by higher estate fees in wealth management income[160] - Noninterest expense rose by 1.7% to $10.7 million in Q2 2024, primarily due to increased employee numbers, salaries, and $300 thousand in consultant fees[161] - Noninterest income for the six months ended June 30, 2024 increased by 5.0% to $4.8 million compared to $4.6 million in the same period in 2023, driven by higher estate fees in wealth management income[176] - Noninterest expense for the six months ended June 30, 2024 increased by 2.9% to $20.9 million, primarily due to higher employee salaries, benefits, and $350 thousand in consultant fees[177] Assets and Investments - Total loans (including fees) averaged $1.292 billion in Q2 2024, with an average yield of 5.02%, compared to $1.242 billion and 4.51% in Q2 2023[154] - Total interest-earning assets averaged $2.055 billion in Q2 2024, with an average yield of 4.02%, compared to $2.079 billion and 3.59% in Q2 2023[154] - Commercial loans averaged $86.998 million in Q2 2024, with an average yield of 6.30%, compared to $86.477 million and 5.54% in Q2 2023[154] - Agricultural loans averaged $118.579 million in Q2 2024, with an average yield of 7.60%, compared to $92.094 million and 6.85% in Q2 2023[154] - Real estate loans averaged $1.069 billion in Q2 2024, with an average yield of 4.63%, compared to $1.046 billion and 4.22% in Q2 2023[154] - Total assets decreased by $29.2 million to $2.1 billion as of June 30, 2024, primarily due to proceeds from maturing investments used to reduce borrowings[179] - The investment portfolio decreased by $45.6 million to $690.8 million as of June 30, 2024, mainly due to maturities exceeding purchases[179] - Gross unrealized losses in the investment portfolio totaled $60.2 million as of June 30, 2024, attributed to the interest rate environment and not credit-related issues[180] - Total investments were $690.8 million as of June 30, 2024, compared to $736.4 million as of December 31, 2023[202] Deposits and Borrowings - Deposits increased to $1.82 billion as of June 30, 2024, with $603 million in estimated uninsured deposits, of which $166 million were collateralized[188] - Other borrowings decreased to $85.9 million as of June 30, 2024, with Bank Term Funding Program borrowings at $37.75 million and an average rate of 5.27%[189] Cash Flow and Equity - Net cash provided by operating activities for the six months ended June 30, 2024 totaled $5.3 million, down from $10.5 million for the same period in 2023[203] - Net cash provided by investing activities for the six months ended June 30, 2024 was $36.6 million, up from $28.8 million for the same period in 2023[203] - Total stockholders' equity as of June 30, 2024 totaled $167.1 million, up from $165.8 million as of December 31, 2023[208] Stock Repurchase Plan - The company approved a Stock Repurchase Plan in November 2023, allowing for the repurchase of up to 100,000 shares of common stock, with 100,000 shares remaining to be purchased as of June 30, 2024[213] - No shares were repurchased during the periods from April 1, 2024, to June 30, 2024, under the Stock Repurchase Plan[214] Internal Controls and Risk Factors - The company's disclosure controls and procedures were evaluated and deemed effective as of the end of the reporting period[211] - There were no material changes in the company's internal control over financial reporting during the last fiscal quarter[212] - The company's management concluded that there were no material changes in the risk factors disclosed in the Form 10-K filed on March 8, 2024[212] Tax Expense - Income tax expense for the six months ended June 30, 2024 decreased to $0.8 million from $1.1 million in 2023, with an effective tax rate of 15% compared to 16% in 2023[178] Liquid Assets - Liquid assets totaled $63.4 million as of June 30, 2024, compared to $55.1 million as of December 31, 2023[200]

Net Income and Earnings - Net income for Q2 2024 was $2.2 million, a decrease from $2.6 million in Q2 2023, primarily due to higher interest expenses on deposits and other borrowed funds[2] - Net income for the six months ended June 2024 was $4.5 million, compared to $5.8 million in the same period in 2023[26] - Basic and diluted earnings per share for the six months ended June 2024 were $0.50, down from $0.64 in the same period in 2023[26] - Management anticipates that the company will not meet its 2024 forecasted earnings due to higher-than-expected interest expenses on deposits and other borrowings[21] Interest Income and Net Interest Margin - Loan interest income increased by $2.2 million in Q2 2024 compared to Q2 2023, driven by higher average interest rates and loan portfolio growth[7] - Net interest margin for Q2 2024 was 2.14%, down from 2.20% in Q2 2023, due to market interest rate increases and faster deposit repricing[7] - Net interest income for the six months ended June 2024 was $21.8 million, down from $23.0 million in the same period in 2023[26] - Total interest and dividend income for the six months ended June 2024 was $40.6 million, up from $35.7 million in the same period in 2023[26] Noninterest Income and Expense - Noninterest income for Q2 2024 totaled $2.6 million, a 13.1% increase from Q2 2023, primarily due to higher estate fees in wealth management income[8] - Total noninterest income for the six months ended June 2024 was $4.8 million, up from $4.6 million in the same period in 2023[26] - Total noninterest expense for the six months ended June 2024 was $20.9 million, up from $20.3 million in the same period in 2023[26] Assets and Liabilities - Total assets as of June 30, 2024, were $2.1 billion, a decrease of $47.9 million from June 30, 2023, mainly due to lower interest-bearing deposits and securities available-for-sale[15] - Total assets decreased from $2,174.3 million in June 2023 to $2,126.3 million in June 2024[25] - Net loans increased by 3.9% to $1.28 billion as of June 30, 2024, driven by growth in agriculture, commercial real estate, and multifamily loan portfolios[16] - Loans receivable, net increased from $1,232.8 million in June 2023 to $1,281.2 million in June 2024[25] - Deposits decreased by 2.3% to $1.82 billion as of June 30, 2024, due to lower balances in noninterest-bearing accounts as customers sought higher interest rates[18] - Total deposits decreased from $1,863.3 million in June 2023 to $1,821.1 million in June 2024[25] Stockholders' Equity and Dividends - Stockholders' equity increased by $11.7 million to $167.1 million as of June 30, 2024, primarily due to a decrease in unrealized losses on the investment portfolio[19] - Total stockholders' equity increased from $155.4 million in June 2023 to $167.1 million in June 2024[25] - The company declared a quarterly cash dividend of $0.27 per share, payable on August 15, 2024[20]

Net Income and Earnings - Net income for Q1 2024 was $2.3 million, or $0.26 per share, compared to $3.2 million, or $0.36 per share, in Q1 2023, primarily due to higher interest expenses on deposits[129] Loan Performance and Credit Losses - Net loan recoveries totaled $4 thousand in Q1 2024, compared to net loan charge-offs of $158 thousand in Q1 2023[129] - Credit loss expense for Q1 2024 was $169 thousand, down from $275 thousand in Q1 2023[129] - Credit loss expense decreased to $169 thousand in Q1 2024 from $275 thousand in Q1 2023, with net loan recoveries of $4 thousand compared to net loan charge-offs of $158 thousand[147] - Problem loans as a percentage of total loans decreased to 1.03% as of March 31, 2024, from 1.08% as of December 31, 2023[163] - Substandard-impaired loans decreased to $12.6 million as of March 31, 2024, from $13.2 million as of December 31, 2023[164] - Nonaccrual loans totaled $13.2 million as of March 31, 2024, down from $13.8 million as of December 31, 2023[167] - The allowance for credit losses as a percentage of outstanding loans increased to 1.31% as of March 31, 2024, from 1.30% as of December 31, 2023[170] Net Interest Income and Margin - Net interest income (GAAP) for Q1 2024 was $10.9 million, compared to $11.7 million in Q1 2023[136] - Net interest margin on an FTE basis (non-GAAP) for Q1 2024 was 2.13%, down from 2.32% in Q1 2023[136] - Net interest margin adjusted for tax-exempt income was 2.13% in Q1 2024, down from 2.32% in Q1 2023[144] Loan Portfolio and Interest Income - Total loans (including fees) averaged $1.28 billion in Q1 2024, with an average yield of 4.93%, up from $1.22 billion and 4.28% in Q1 2023[140] - Interest income on loans increased to $15.8 million in Q1 2024, up from $13.1 million in Q1 2023, driven by higher rates and loan portfolio growth[129] - Interest income increased by $2.9 million (17%) in Q1 2024 compared to Q1 2023, driven by higher average rates and loan portfolio growth[144] - The loan portfolio decreased to $1.273 billion as of March 31, 2024, primarily due to reduced commercial real estate loan demand[160] Interest Expense and Deposits - Interest expense on deposits and other borrowings increased in Q1 2024 due to higher market rates and customer demand for higher interest rate options[129] - Interest expense increased by $3.7 million (67%) in Q1 2024 compared to Q1 2023, due to higher market interest rates and customer shifts to higher-rate deposit products[146] - Total deposits decreased to $1.467 billion in Q1 2024 from $1.491 billion in Q1 2023, with a total interest-bearing liabilities increase to $1.623 billion from $1.576 billion[143] - Deposits increased to $1.87 billion as of March 31, 2024, up from $1.81 billion as of December 31, 2023, driven by higher yielding accounts[161] - Estimated uninsured deposits were $637 million as of March 31, 2024, with $153 million collateralized by pledged assets[161] - Other borrowings decreased to $90.3 million as of March 31, 2024, from $110.6 million as of December 31, 2023, due to increased deposits[162] Noninterest Income and Expense - Noninterest income decreased by 3% to $2.2 million in Q1 2024, primarily due to losses on the sale of securities[148] - Noninterest expense increased by 4% to $10.2 million in Q1 2024, driven by higher FDIC assessments and salary/benefit increases[148] Asset and Liability Management - Total interest-earning assets averaged $2.07 billion in Q1 2024, with an average yield of 3.91%, up from $2.04 billion and 3.40% in Q1 2023[140] - Total assets increased by $36.4 million to $2.19 billion as of March 31, 2024, primarily due to growth in interest-bearing deposits and federal funds sold[151] - The investment portfolio decreased by $13.2 million to $723.2 million as of March 31, 2024, mainly due to maturities of investments[151] Cash Flow and Equity - Net cash provided by operating activities for Q1 2024 was $1.4 million, down from $6.5 million in Q1 2023[176] - Total stockholders' equity decreased to $165.5 million as of March 31, 2024, from $165.8 million as of December 31, 2023[181] Regulatory and Capital Compliance - The company's capital levels exceed regulatory guidelines to be considered "well capitalized" as of March 31, 2024[181] - No material changes in risk factors disclosed in the Company's Form 10-K filed with the SEC on March 8, 2024[187] - Maximum number of shares that may yet be purchased under the plan remains at 100,000 for January, February, and March 2024[189] - Company's disclosure controls and procedures are effective as of the end of the period covered by the report[185] - No change in the Company's internal control over financial reporting during the last fiscal quarter[186]

Financial Performance - Net income for Q1 2024 was $2.3 million, a decrease of 28.2% compared to $3.2 million in Q1 2023[1][2] - Net income declined from $3,197 thousand in 2023 to $2,304 thousand in 2024[23] - Basic and diluted earnings per share decreased from $0.36 in 2023 to $0.26 in 2024[23] Interest Income and Expense - Loan interest income increased by $2.8 million in Q1 2024 compared to Q1 2023, driven by higher average interest rates and loan portfolio growth[6] - Deposit interest expense increased by $2.9 million in Q1 2024 due to higher market interest rates and customer shifts to higher-rate deposit products[6] - Net interest margin decreased to 2.13% in Q1 2024 from 2.32% in Q1 2023, primarily due to higher deposit rates exceeding rate increases on interest-earning assets[6] - Net interest income decreased from $11,669 thousand in 2023 to $10,906 thousand in 2024[23] - Total interest and dividend income rose from $17,196 thousand in 2023 to $20,111 thousand in 2024[23] Asset and Liability Changes - Total assets increased to $2.19 billion as of March 31, 2024, up $2.2 million from March 31, 2023, driven by loan growth and interest-bearing deposits[10] - Net loans increased by 4% to $1.27 billion as of March 31, 2024, compared to $1.22 billion in the same period last year[11] - Deposits decreased by 1% to $1.87 billion as of March 31, 2024, due to declines in noninterest-bearing accounts as customers sought higher interest rates[12] - Other borrowings increased to $90.3 million as of March 31, 2024, up from $78.6 million in the same period last year, primarily due to loan growth and deposit declines[13] - Total assets increased slightly from $2,189,651 thousand in 2023 to $2,191,842 thousand in 2024[20] - Total deposits decreased from $1,896,793 thousand in 2023 to $1,872,123 thousand in 2024[20] - Loans receivable, net increased from $1,224,045 thousand in 2023 to $1,272,580 thousand in 2024[20] Noninterest Income and Expense - Total noninterest income decreased slightly from $2,254 thousand in 2023 to $2,177 thousand in 2024[23] - Total noninterest expense increased from $9,780 thousand in 2023 to $10,194 thousand in 2024[23] Stockholders' Equity and Dividends - Stockholders' equity increased to $165.5 million as of March 31, 2024, up from $159.1 million in the same period last year, driven by reduced unrealized losses on investments[14] - The company declared a quarterly cash dividend of $0.27 per share, payable on May 15, 2024[15] - Total stockholders' equity increased from $159,082 thousand in 2023 to $165,540 thousand in 2024[20]

Financial Performance and Key Metrics - Net income for 2023 was $10.8 million, a 44% decrease compared to $19.3 million in 2022, primarily due to higher interest expenses and increased credit loss expenses[165] - Earnings per share for 2023 were $1.20, down from $2.14 in 2022[165] - Return on average equity for 2023 was 7.05%, compared to 11.43% in 2022[165] - Return on average assets for 2023 was 0.51%, compared to 0.90% in 2022[165] - Net interest income for 2023 was $44.6 million, down from $53.2 million in 2022[160] - Total assets for 2023 were $2.16 billion, slightly up from $2.13 billion in 2022[160] - Net loans for 2023 were $1.28 billion, up from $1.23 billion in 2022[160] - Deposits for 2023 were $1.81 billion, down from $1.90 billion in 2022[160] - Equity to assets ratio for 2023 was 7.69%, up from 6.98% in 2022[160] - Net interest income (FTE) decreased to $45,234 million in 2023 from $53,934 million in 2022, with a net interest margin (FTE) of 2.20% compared to 2.62% in 2022[193] - Net interest income decreased by 15.9% to $44.6 million in 2023 compared to $53.2 million in 2022, primarily due to higher market interest rates on deposits[198] - Noninterest income decreased to $9.2 million in 2023 from $9.7 million in 2022, mainly due to fewer gains on residential loan sales and lower wealth management income[199] - Noninterest expense increased to $40.2 million in 2023 from $38.6 million in 2022, driven by a $523 thousand wire fraud loss, higher FDIC assessments, and salary increases[200] - Total assets grew by 1.0% to $2.16 billion in 2023, primarily due to interest-bearing deposit and loan growth[201] - Net loans increased by 4.2% to $1.28 billion in 2023, driven by growth in commercial, construction, and multi-family loan portfolios[202] - Gross loans totaled $1.29 billion in 2023, representing 71.4% of total deposits and 60.0% of total assets[203] - Total investments decreased by 6.4% to $736.4 million in 2023, primarily due to maturities exceeding purchases[215] - Loans held for sale decreased to $124 thousand in 2023 from $154 thousand in 2022, with no significant impact expected on total assets[214] - The investment portfolio comprised 34% of total assets in 2023, down from 37% in 2022[215] - Total deposits decreased by $86.1 million to $1.81 billion as of December 31, 2023, primarily due to decreases in savings and money market accounts[223] - Total borrowed funds increased to $164.6 million in 2023, up 106.2% from $79.8 million in 2022, with an average rate of 4.04%[233] - The loan portfolio grew by 4.2% to $1.28 billion in 2023, representing 59% of total assets[237] - Non-performing assets decreased by 5% to $13.9 million in 2023, with non-performing loans representing 1.08% of total loans[237] - The allowance for credit losses increased to $118 thousand in 2023, up 24.2% from $95 thousand in 2022[241] - Net charge-offs to average loans ratio increased to 0.02% in 2023 from 0.00% in 2022, with total net charge-offs of $213 thousand[246] - The ratio of allowance for credit losses to nonaccrual loans improved to 121.47% in 2023 from 106.62% in 2022[240] - Interest income on nonaccrual loans under original terms was $768 thousand in 2023, up 4.8% from $733 thousand in 2022[241] - The average balance of impaired loans decreased to $12.7 million in 2023 from $13.0 million in 2022[241] - Specific reserve on loans individually evaluated for credit losses increased by 24% to $118 million in 2023 compared to $95 million in 2022[249] - Loans individually evaluated for credit losses decreased by 4% to $13,794 million in 2023 from $14,386 million in 2022[249] - The allowance for credit losses allocated to 1-4 family residential loans increased to 22% ($3,333 million) in 2023 from 21% ($2,752 million) in 2021[250] - Liquid assets increased to $55.1 million in 2023 from $27.9 million in 2022, primarily due to increased deposits at the Federal Reserve Bank[252] - Total investments decreased to $736.4 million in 2023 from $786.4 million in 2022, with pretax net unrealized losses of $62.3 million in 2023[253] - Net cash provided by operating activities decreased to $19.5 million in 2023 from $21.2 million in 2022, primarily due to higher interest expense on deposits[254] - The company's total stockholders' equity increased to $165.8 million in 2023 from $149.1 million in 2022, representing 7.7% of total assets[259] - Commitments to extend credit totaled $262.7 million as of December 31, 2023, compared to $262.9 million at the end of 2022[258] - The company's investment portfolio has pretax net unrealized losses of $62.3 million as of December 31, 2023, compared to $83.6 million in 2022[253] - Dividends from the banks amounted to $10.0 million in 2023, slightly down from $10.2 million in 2022[256] - The company's allowance for credit losses on loans (ACL) was $16.78 million as of December 31, 2023[280] - Total assets increased to $2,155.481 million in 2023 from $2,134.926 million in 2022[287] - Net interest income decreased to $44.625 million in 2023 from $53.244 million in 2022[290] - Net income declined to $10.817 million in 2023 compared to $19.293 million in 2022[290] - Total deposits decreased to $1,811.831 million in 2023 from $1,897.957 million in 2022[287] - Interest expense on deposits rose significantly to $24.471 million in 2023 from $7.316 million in 2022[290] - Noninterest income slightly decreased to $9.215 million in 2023 from $9.687 million in 2022[290] - Total noninterest expense increased to $40.162 million in 2023 from $38.644 million in 2022[290] - Comprehensive income improved to $27.000 million in 2023 from a loss of $46.641 million in 2022[292] - Loans receivable, net increased to $1,277.812 million in 2023 from $1,226.011 million in 2022[287] - Securities available-for-sale decreased to $736.389 million in 2023 from $786.438 million in 2022[287] Interest Rates and Inflation Impact - Consumer inflation increased by 3.4% and 6.5% for the years ended December 31, 2023, and 2022, respectively, creating upward pressure on operating expenses and interest rates[98] - The FOMC raised the federal funds rate to a target range of 5.25% to 5.5% in 2022 and 2023 to curb inflation, which may decrease the company's net interest income[108] - Approximately 12% of deposits are tied to external indexes, with deposit interest expense increasing more quickly in a rising interest rate environment[223] - Net interest margin on an FTE basis (non-GAAP) decreased to 2.20% in 2023 from 2.62% in 2022[188] - The company's average interest-earning assets in 2023 were $2,059,506 thousand, slightly lower than $2,060,959 thousand in 2022[188] - Real estate loan interest income increased by $7.4 million in 2023, driven by a $2.4 million increase due to volume and a $5.0 million increase due to higher interest rates[194] - Total deposits decreased to $1,468,064 million in 2023 from $1,503,904 million in 2022, with a yield increase from 0.49% to 1.67%[193] - Other borrowed funds increased to $132,918 million in 2023 from $55,874 million in 2022, with a yield increase from 1.78% to 3.92%[193] - Total interest-bearing liabilities increased to $1,600,982 million in 2023 from $1,559,778 million in 2022, with a yield increase from 0.53% to 1.85%[193] - Net interest income-earning assets decreased by $8,700 million in 2023, with a $839 million decrease due to volume and a $7,861 million decrease due to yield/rate[195] - The company's non-GAAP net interest margin was 2.20% in 2023, down from 2.62% in 2022[197] - Credit loss expense was $789 thousand in 2023, compared to a credit loss benefit of ($874) thousand in 2022, driven by loan portfolio growth and agricultural loan charge-offs[198] - The company's securities portfolio had a fair value of $736.4 million as of December 31, 2023, with an unrealized loss of $62.3 million primarily due to increased interest rates[106] Loan Portfolio and Credit Risk - Commercial real estate loans constituted a significant portion of the company's total loan portfolio as of December 31, 2023, with risks tied to fluctuating collateral values[100] - The company's agricultural loan portfolio is exposed to risks from low commodity and livestock prices, poor weather conditions, and changes in government trade policies[105] - The company's allowance for credit losses reflects management's estimate of expected credit losses over the contractual life of the loan portfolio, subject to economic and regulatory conditions[102] - The company adopted the CECL methodology for credit loss estimation starting January 1, 2023, which requires estimating expected credit losses over the life of the loan portfolio[174] - The allowance for credit losses is adjusted by a credit loss expense recognized in earnings and reduced by charge-offs, net of recoveries[180] - The company uses a model to estimate credit loss assumptions for loan pools based on loan type and purpose, calculating an expected life-of-loan loss percentage for each category[177] - The allowance for credit losses considers factors such as economic conditions, lending policies, and collateral value to adjust historical loss rates[178] - The company employs a two-component methodology for establishing the allowance for credit losses: asset-specific and pooled components[175] - Total loans increased to $1,243,239 million in 2023, up from $1,169,157 million in 2022, with a yield of 4.57% compared to 3.93% in 2022[191] - Real estate loans contributed $44,792 million in revenue in 2023, up from $37,342 million in 2022, with a yield increase from 3.79% to 4.28%[191] - Total interest-earning assets generated $74,910 million in revenue in 2023, up from $62,243 million in 2022, with a yield increase from 3.02% to 3.64%[191] - Commercial real estate loans have the largest pooled reserve at 1.50% of outstanding balances as of December 31, 2023[246] - The company's ACL estimation process involves qualitative factor adjustments based on management's expectation of future conditions[280] - The company's ACL estimation process includes evaluating loans that do not share similar risk characteristics on an individual basis[280] - The company's ACL estimation process considers historical loss rates of similar peers for loans that share similar risk characteristics[280] - The company's ACL estimation process reduces adjustments on a straight-line basis over one year for loans extending beyond the forecast period[280] - The company's ACL estimation process involves significant judgment and subjectivity in identifying and measuring qualitative factor adjustments[281] Cybersecurity and Operational Risks - The company faces operational risks, including data processing system failures, data security breaches, and employee or customer fraud[112] - Cybersecurity risks have increased due to greater reliance on remote working and are expected to remain high due to evolving threats[117] - A breach of information security or compliance by third-party vendors could negatively affect the company's reputation and business[130] - The company's information security program is designed to continuously adapt to emerging threats, with regular testing through internal and external audits, penetration tests, and disaster recovery tests[143][144] - The company's cybersecurity strategy is integrated within its overall risk management strategy, with regular oversight by the Board of Directors and executive officers[147][148] - The company maintains insurance coverage for cybersecurity risks, but there is no assurance that liabilities or losses will be fully covered[144] - The company's cybersecurity program is designed to be consistent with the FFIEC Information Security IT Examination Handbook and other regulatory frameworks[145] Regulatory and Compliance Risks - The company relies on dividends and payments from its banks for substantially all of its revenue, which could be limited by federal and state regulations[110] - Compliance with the Dodd-Frank Act and other regulations has resulted in additional costs, with potential future regulatory changes impacting earnings[138] - The company's ability to pay dividends is subject to federal regulatory considerations, including capital adequacy guidelines, and may be reduced or eliminated in the future[140] - The company adopted Topic 326 effective January 1, 2023, changing its method of accounting for the allowance for credit losses[276] - The company's financial statements for 2023 were audited and found to be in conformity with accounting principles generally accepted in the United States[275] - The company's financial statements for 2022 were audited and found to be in conformity with accounting principles generally accepted in the United States[283] Market and Economic Risks - The company's earnings are highly dependent on the business environment, including economic growth, low inflation, and strong business earnings[96] - The company's operations are concentrated in central, north-central, and south-central Iowa, making it vulnerable to local economic conditions[125] - The company faces competition from larger financial institutions and non-bank financial services providers with greater resources[133] - Federal government spending and increases in monetary supply could strain the company's capital ratios and contribute to inflation[134] - Severe weather, natural disasters, pandemics, or acts of terrorism could significantly impact the company's business and financial condition[139] - Acquisitions involve risks such as integration difficulties, unexpected liabilities, and potential loss of key employees or customers[136] Dividends and Shareholder Information - The company declared aggregate annual cash dividends of approximately $9.7 million or $1.08 per share in 2023 and 2022, with a quarterly cash dividend of approximately $2.4 million or $0.27 per share declared in February 2024[153] - The company's common stock closed at $18.46 on February 28, 2024, with approximately 249 shareholders of record and 3,298 beneficial owners[153] - The company approved a Stock Repurchase Plan in November 2023, authorizing the purchase of up to 100,000 shares, with no shares purchased under this plan during November or December 2023[155][156] - The company's stock trading volume on the NASDAQ Capital Market is relatively limited, making it more susceptible to price volatility compared to more actively traded companies[141] Investment Portfolio and Securities - The company's securities portfolio had a fair value of $736.4 million as of December 31, 2023, with an unrealized loss of $62.3 million primarily due to increased interest rates[106] - The company's securities available-for-sale portfolio is carried at fair value, with declines below cost evaluated for credit losses and reflected in earnings[183][184] - The company's total investment portfolio amounted to $736.4 million, with U.S. government treasuries making up $200.1 million, U.S. government agencies $92.6 million, and U.S. government mortgage-backed securities $101.9 million[217] - The weighted average yield for the total investment portfolio was 1.87%, with U.S. government treasuries yielding 1.15%, U.S. government agencies 1.95%, and U.S. government mortgage-backed securities 1.23%[217] - The company's investment portfolio had an expected duration of 3.55 years as of December 31, 2023, compared to 4.06 years in 2022[218] - The company's investment securities portfolio included securities issued by 272 government municipalities and agencies with a fair value of $269.9 million as of December 31, 2023[218] Liquidity and Funding - The company's liquidity is primarily maintained through customer deposits and short-term funding sources, with potential risks from changes in governmental programs or economic conditions[109] - The company had $6.9 million of brokered deposits and approximately $590 million of estimated uninsured deposits as of December 31, 2023[224] - The average balance for non-interest bearing checking deposits was $373.7 million with a 0.00% interest rate, while interest-bearing checking deposits averaged $610.0 million with a 1.61% interest rate in 2023[226] - Time certificates of deposit with balances exceeding the FDIC insurance limit of $250,000 totaled $68.2 million as of December 31, 2023, up from $42.9 million in 2022[228] - Uninsured time certificates of deposit totaled $59.2 million as of December 31, 2023, an increase of 93.4% from $30.6 million in 2022[230] Accounting Policies and Good