Net Interest Income and Margin - Net interest income for Q3 2022 was $14.5 million, up from $13.7 million in Q3 2021, representing a 5.8% increase[241] - For the nine months ended September 30, 2022, net interest income was $41.9 million, compared to $39.3 million for the same period in 2021, reflecting a 6.6% increase[241] - The net interest margin for Q3 2022 was 3.43%, an increase from 3.34% in Q3 2021, driven by higher loan and investment yields[242] - The net interest margin for the nine months ended September 30, 2022, was 3.38%, compared to 3.29% for the same period in 2021, indicating a 2.7% increase[243] - The interest rate spread for the nine months ended September 30, 2022, was 3.21%, compared to 3.13% for the same period in 2021, indicating a slight improvement[250] - The net interest margin for the nine months ended September 30, 2022, was 3.38%, compared to 3.29% for the same period in 2021, showing an improvement in profitability[250] Loan Loss Allowance and Provision - The allowance for loan losses is based on ongoing assessments of estimated probable incurred losses in the loan portfolio[228] - The company emphasizes refining its allowance for loan losses methodology, focusing on historical performance adjusted for economic factors[229] - Total provision for loan losses for the three and nine months ended September 30, 2022, was $0.4 million and $0.8 million, respectively, compared to no provision in the same periods of 2021[259] - The allowance for loan losses was $17.4 million as of September 30, 2022, compared to $16.9 million at December 31, 2021[286] - The allowance for loan losses increased by $0.3 million to $17.2 million at September 30, 2022, representing 1.25% of loans receivable[291] - The allowance for loan losses to net charge-offs ratio was 2,734.05% for the current period, compared to 13,010.00% for the previous period[298] Nonperforming Loans and Assets - Nonperforming loans totaled $11,020 as of September 30, 2022, compared to $11,825 at December 31, 2021, indicating a decrease in nonperforming loans[298] - The total nonperforming assets decreased to $12,604 at September 30, 2022, from $13,233 at December 31, 2021[298] - The ratio of nonperforming loans to total loans was 0.80% at September 30, 2022, down from 0.90% at December 31, 2021[294] - The company recorded net loans charged off of $471,000 for the period, compared to $130,000 for the previous period[298] - Nonperforming loans decreased by $0.8 million to $11.0 million at September 30, 2022, from $13.2 million at December 31, 2021, representing a decline from 0.76% to 0.71% of total assets[304] Deposits and Funding - Total deposits for the three months ended September 30, 2022, amounted to $1,143,557 thousand, with an interest expense of $1,681 thousand, resulting in an average cost of 0.58%[247] - Total deposits increased by $46.8 million to $1.43 billion at September 30, 2022, compared to $1.39 billion at December 31, 2021[319] - Non-interest bearing demand deposits increased to $285.7 million at September 30, 2022, from $276.6 million at December 31, 2021[320] - Federal Home Loan Bank (FHLB) advances decreased by $9.0 million to $102.5 million as of September 30, 2022, compared to $111.5 million as of December 31, 2021[331] - The Bank's available and unused portion under the FHLB borrowing arrangement was approximately $278.0 million as of September 30, 2022, up from $204.2 million at December 31, 2021[339] Financial Condition and Equity - The total assets at the end of the period were $1,780,202, an increase from $1,739,628 at the end of the previous period[298] - Total stockholders' equity was $163.3 million at September 30, 2022, down from $170.9 million at December 31, 2021, primarily due to a $17.4 million decrease in accumulated other comprehensive (loss) income[334] - The Bank repurchased approximately 71 thousand shares of common stock, reducing equity by $1.0 million, as part of the share repurchase program initiated in July 2021[335] Capital Ratios and Compliance - The Bank's Tier 1 and Risk-based capital levels exceeded the necessary levels to be considered "Well Capitalized" under Prompt Corrective Action provisions as of September 30, 2022[344] - As of September 30, 2022, the total capital to risk-weighted assets ratio was 14.4%, with total capital amounting to $219,988 million[345] - The Tier 1 capital to risk-weighted assets ratio was 13.3%, with Tier 1 capital at $202,771 million as of September 30, 2022[345] - The common equity Tier 1 capital to risk-weighted assets ratio was also 13.3%, with common equity Tier 1 capital at $202,771 million[345] - The Tier 1 leverage ratio stood at 11.6%, with adjusted total assets of $202,771 million as of September 30, 2022[345] Economic Value and Interest Rate Risk - The estimated change in Economic Value of Equity (EVE) at September 30, 2022, showed a 0% change for a +300 basis points rate shock[352] - For a -200 basis points rate shock, the percent change in net interest income over one year at September 30, 2022, was -4%[354] - The Asset and Liability Management Committee (ALCO) regularly reviews economic conditions and interest rate outlook to manage interest rate risk exposure limits[349]

Financial Performance - Net interest income for Q2 2022 was $14.3 million, up from $12.8 million in Q2 2021, representing a 11.7% increase[237] - Net interest income for the first half of 2022 was $27.4 million, compared to $25.6 million for the same period in 2021, reflecting a 7.0% growth[237] - Net interest income for the three months ended June 30, 2022, was $14,267 thousand, compared to $12,831 thousand for the same period in 2021, representing an increase of 11.19%[243] - Non-interest income decreased by 37.46% to $2.372 million for the three months ended June 30, 2022, compared to $3.793 million in the prior year[261] - Total non-interest expense increased by 2.59% to $10.462 million for the three months ended June 30, 2022, compared to $10.198 million in the prior year[267] Interest Margin and Rates - The net interest margin for Q2 2022 increased to 3.46%, compared to 3.22% in Q2 2021, an increase of 24 basis points[238] - The net interest margin for the first half of 2022 was 3.35%, up from 3.26% in the same period of 2021, an increase of 9 basis points[239] - The interest rate spread improved to 3.31% for the three months ended June 30, 2022, compared to 3.06% in the same period of 2021[243] Loan and Deposit Growth - Loans for the three months ended June 30, 2022, amounted to $1,328,661 thousand, up from $1,186,439 thousand in the same period of 2021, indicating a growth of 11.97%[243] - Total deposits for the three months ended June 30, 2022, were $1,135,198 thousand, a slight increase from $1,118,950 thousand in the same period of 2021, showing a growth of 1.44%[243] - The originated loan portfolio, excluding SBA PPP loans, increased by $67.3 million in the first half of 2022[282] Allowance for Loan Losses - The allowance for loan losses is based on ongoing assessments of estimated probable incurred losses in the loan portfolio[224] - The allowance for loan losses (ALL) was $16.825 million as of June 30, 2022, compared to $16.913 million at December 31, 2021[285] - The allowance for loan losses decreased by $0.1 million to $16.8 million at June 30, 2022, representing 1.25% of loans receivable[288] Nonperforming Loans and Assets - Nonperforming loans decreased by $0.7 million to $11.1 million at June 30, 2022, from December 31, 2021[299] - Total nonperforming assets decreased to $12.6 million or 0.71% of total assets at June 30, 2022, compared to $13.2 million or 0.76% at December 31, 2021[299] - Originated nonperforming loans increased to $8.5 million at June 30, 2022, from $6.5 million at December 31, 2021[297] Securities and Investments - Investment securities for the three months ended June 30, 2022, were $285,332 thousand, with an interest income of $1,593 thousand, compared to $283,557 thousand and $1,308 thousand in the same period of 2021, showing a growth in interest income of 21.88%[243] - Securities available for sale decreased to $177.1 million at June 30, 2022, from $203.1 million at December 31, 2021, due to unrealized losses of $17.2 million[275] - Securities held to maturity increased to $99.2 million at June 30, 2022, compared to $71.1 million at December 31, 2021, primarily due to the purchase of agency mortgage-backed securities[276] Capital and Equity - As of June 30, 2022, total stockholders' equity decreased to $164.7 million from $170.9 million at December 31, 2021, primarily due to a $12.4 million decrease in accumulated other comprehensive income and a $2.7 million cash dividend payment[328] - The Bank's Tier 1 capital to risk-weighted assets ratio was 13.2% as of June 30, 2022, exceeding the required minimum of 6.0%[339] - The Bank's total capital to risk-weighted assets ratio was 14.3% as of June 30, 2022, compared to 13.4% as of December 31, 2021[339] Interest Rate Risk Management - The company focuses on originating shorter-term secured loans and variable rate loans to manage interest rate risk[344] - Interest rate risk sensitivity is assessed through net interest income shock analysis, indicating potential changes in income due to interest rate shifts[348] - The projected change in net interest income over one year at +300 basis points is 1% as of June 30, 2022, while it was a decrease of 11% at December 31, 2021[349]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $.01 par value per share CZWI NASDAQ Global Market FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $.01 par value per share CZWI NASDAQ Global Market FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $.01 par value per share CZWI NASDAQ Global Market FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commis ...

Financial Performance - Net interest income for Q2 2021 was $12.8 million, compared to $12.3 million in Q2 2020, reflecting a year-over-year increase of 4.1%[215] - For the six months ended June 30, 2021, net interest income was $25.6 million, up from $25.0 million for the same period in 2020, indicating a growth of 2.4%[215] - Net interest income for the six months ended June 30, 2021, was $25,595 thousand, compared to $24,974 thousand for the same period in 2020, reflecting a 2.5% increase[225] - Non-interest income for the three months ended June 30, 2021, was $3.793 million, a decrease of 24.34% from $5.013 million in the same period of 2020; for the six months, it was $7.969 million, down 7.51% from $8.616 million[238] Interest Margin and Rates - The net interest margin for Q2 2021 was 3.22%, a decrease from 3.34% in Q2 2020, primarily due to higher cash balances and lower yields on loans[216] - The net interest margin for the first half of 2021 was 3.26%, down from 3.48% in the same period of 2020, attributed to lower accretion from purchased credit impaired loans and Federal Reserve rate cuts[217] - The net interest margin decreased to 3.22% in Q2 2021 from 3.34% in Q2 2020, indicating a decline in profitability from interest-earning assets[221] - The average yield on loans was 4.72% in Q2 2021, compared to 4.66% in Q2 2020, showing a slight improvement in loan profitability[221] - The interest rate spread narrowed to 3.06% in Q2 2021 from 3.16% in Q2 2020, indicating tighter margins[221] Loan Portfolio and Allowance for Loan Losses - The company’s allowance for loan losses is based on ongoing assessments of probable incurred losses, considering factors such as historical loss experience and economic conditions[202] - The company’s financial condition as of June 30, 2021, reflects ongoing evaluations of its loan portfolio and adherence to regulatory guidance regarding loan loss allowances[202] - The allowance for loan losses was $16.8 million as of June 30, 2021, compared to $17.0 million at December 31, 2020[260] - The company identified impaired loans totaling $38.9 million as of June 30, 2021, a decrease from $43.4 million at December 31, 2020[264] - Total provision for loan losses for the three and six months ended June 30, 2021, was $0, compared to $1.75 million and $3.75 million for the same periods in 2020, reflecting improvements in nonperforming assets and lower loan charge-offs[234] Deposits and Funding - Total deposits rose to $1,118,950 thousand in Q2 2021, up from $1,052,638 thousand in Q2 2020, marking a 6.3% increase[221] - Total deposits increased by $76.0 million to $1.371 billion at June 30, 2021, from $1.295 billion at December 31, 2020[284] - The Bank's on-balance sheet liquidity ratio was 22.8% as of June 30, 2021, with approximately $110.5 million of certificate of deposit accounts maturing in 2021 at a weighted average cost of approximately 1.0%[300] - The company has approximately $144.7 million available under its borrowing arrangement with the Federal Home Loan Bank, an increase from $118.4 million at December 31, 2020[303] Asset Quality and Nonperforming Loans - Total nonperforming assets (NPAs) decreased by $2.7 million to $8.8 million at June 30, 2021, primarily due to reductions in acquired non-performing loans[273] - The total number of nonperforming loans (NPLs) was 8,617 as of June 30, 2021, down from 11,333 at December 31, 2020[271] - Nonperforming assets decreased to $8.8 million or 0.51% of total assets at June 30, 2021, compared to $11.5 million or 0.70% at December 31, 2020[276] - Nonaccrual loans decreased to $8.075 million at June 30, 2021, down from $8.678 million at March 31, 2021, reflecting a reduction in troubled debt restructurings[275] Capital and Equity - Total stockholders' equity increased to $164.0 million as of June 30, 2021, from $160.6 million at December 31, 2020, driven by a net income of $10.2 million and an unrealized gain of $0.57 million on available-for-sale securities[298] - The Bank's Tier 1 capital to risk-weighted assets ratio was 13.5% as of June 30, 2021, exceeding the required minimum of 6.0%[309] - The Bank's total capital to risk-weighted assets ratio was 14.7% as of June 30, 2021, consistent with the "Well Capitalized" designation under regulatory provisions[309] Economic and Interest Rate Risk Management - The Asset and Liability Management Committee (ALCO) regularly reviews economic conditions and interest rate outlook to manage interest rate risk exposure limits[315] - Strategies to manage interest rate risk include originating shorter-term loans and variable rate loans, as well as selling longer-term fixed-rate loans in the secondary market[315] - The overall interest rate sensitivity is assessed through net interest income shock analysis over the next 12 months[318] - The projected change in net interest income over a one-year horizon at +300 basis points was a decrease of 4% as of June 30, 2021, compared to an increase of 3% at December 31, 2020[318]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $.01 par value per share CZWI NASDAQ Global Market FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

Financial Performance - As of December 31, 2020, total gross outstanding loans amounted to $1.25 billion, with $797.1 million in commercial agricultural real estate loans, $273.0 million in C&I/agricultural operating loans, $137.6 million in residential mortgage loans, and $39.1 million in consumer installment loans[30]. - Total deposits reached $1.30 billion, including interest-bearing deposits of $1.06 billion and non-interest-bearing deposits of $0.24 billion as of December 31, 2020[32]. - The projected change in net interest income for a 300 basis point increase in interest rates is 3% at December 31, 2020, while it was a decrease of 5% in 2019[182]. Regulatory Environment - The company is subject to various regulations, including the Sarbanes-Oxley Act, which requires management to assess the adequacy of internal controls over financial reporting[38]. - The Dodd-Frank Act has significantly changed the regulatory structure for financial institutions, impacting lending, deposit, and investment activities[41]. - The maximum per depositor FDIC insurance amount increased from $100,000 to $250,000 under the Dodd-Frank Act[50]. - The Bank's compliance with the Community Reinvestment Act is evaluated based on actual lending service and investment performance[50]. Capital and Funding - The company’s capital conservation buffer requires a CET1 capital ratio of 7.0% to avoid restrictions on capital distributions and discretionary bonus payments[43]. - The Bank's total risk-based capital ratio is at least 10%, with a Tier 1 risk-based capital ratio of at least 8% and a CET1 capital ratio of at least 6.5%[50]. - The company’s primary sources of funds include deposits, amortization, prepayments, and maturities of outstanding loans, along with other short-term investments[32]. - The Bank is required to maintain strong capital positions above minimum supervisory levels, especially when experiencing internal growth or making acquisitions[50]. Interest Rate Risk Management - The Asset and Liability Management Committee (ALCO) regularly reviews economic conditions and interest rate outlook to manage interest rate risk exposure limits[178]. - The company has adopted strategies focusing on shorter-term secured loans and variable-rate loans to manage interest rate risk[178]. - The company monitors interest rate risk using third-party reporting software and conducts net present value of portfolio equity analysis[178]. - The assumptions for measuring interest rate risk include interest rates, loan prepayment rates, and deposit decay rates[184]. - The company’s interest rate sensitivity is assessed through net interest income shock analysis over a 12-month horizon[182]. Employee and Operational Information - The Bank has 234 full-time employees and a total of 251 employees, with no unionized staff[54]. - The company aims to reduce non-interest expenses and improve efficiency through technology enhancements[178]. Competitive Landscape - Competitive factors for attracting deposits include interest rates, personalized services, and technology, while loan competition is influenced by interest rates and loan origination fees[33][35]. - The Federal Reserve Board's monetary policies significantly affect the operating results of the Bank and its holding company[52]. Compliance and Risk Management - The Bank has implemented policies to comply with anti-money laundering laws and regulations, including the Bank Secrecy Act and the Patriot Act[46]. - The Bank's CRA rating was "Satisfactory" as of its most recent regulatory examination[50]. - The increase in EVE estimates is attributed to the growth in non-maturity deposits and a net reduction in longer-term fixed-rate loans[180]. - As of December 31, 2020, a 300 basis point increase in interest rates would result in a 15% increase in Economic Value of Equity (EVE), compared to a 1% increase in 2019[180]. Filing Status - The company has become an "accelerated filer" due to its public float exceeding $75 million, which increases the complexity and cost of compliance with SEC regulations[37]. Taxation - The Tax Cuts and Jobs Act reduced corporate Federal income tax rates from 34% to 24.5% for 2018, and to 21% for 2019 and 2020, which is expected to lower federal income tax liability in future years[51].

Financial Performance - Net interest income for Q3 2020 was $11.9 million, compared to $11.6 million in Q3 2019, and for the nine months ended September 30, 2020, it was $36.9 million, up from $31.7 million in the same period of 2019[223]. - Net interest income for the three months ended September 30, 2020, was $11,909 thousand, up from $11,593 thousand in the same period of 2019, representing an increase of 2.7%[229]. - The company reported a net interest income increase of $5,145 thousand for the nine months ended September 30, 2020, compared to the same period in 2019, totaling $36,883 thousand[232]. - Total non-interest income increased by 39.80% to $5,062 million for the three months ended September 30, 2020, compared to $3,621 million in the prior year[243]. - Loan servicing income rose by 60.22% to $1,144 million for the three months ended September 30, 2020, driven by higher mortgage loan origination fees[243]. - Gain on sale of loans increased by 192.64% to $1,987 million for the three months ended September 30, 2020, reflecting higher origination volumes[243]. Interest Margin and Rates - The net interest margin for Q3 2020 was 3.11%, down from 3.34% in Q3 2019, primarily due to the Federal Reserve's actions that lowered overnight interest rates by 125 basis points in March 2020[224]. - For the nine months ended September 30, 2020, the net interest margin was 3.36%, slightly up from 3.35% in the same period of 2019, attributed to an increase in the accretion of purchased credit impaired discounts[225]. - The net interest margin exceeded the interest rate spread due to non-interest-bearing sources of funds supporting interest-earning assets[222]. - The interest rate spread decreased to 2.92% for the three months ended September 30, 2020, down from 3.11% in the same period of 2019[229]. - The average yield on loans decreased to 4.48% for the three months ended September 30, 2020, down from 5.08% in the same period of 2019[229]. Loan and Deposit Growth - The company originated $139 million in SBA Paycheck Protection Program loans during Q3 2020, contributing to the increase in net interest income[223]. - Total deposits rose to $1,064,077 thousand for the three months ended September 30, 2020, compared to $1,005,084 thousand in the same period of 2019, marking a growth of 5.9%[229]. - Loans increased to $1,258,224 thousand for the three months ended September 30, 2020, from $1,143,252 thousand in the same period of 2019, reflecting a growth of 10.1%[229]. - Total loans outstanding increased by $53 million to $1.23 billion as of September 30, 2020, from $1.18 billion at December 31, 2019[265]. - Total loans increased to $12.579 billion as of September 30, 2020, compared to $5.396 billion at December 31, 2019, reflecting a growth of 133%[284]. Allowance for Loan Losses - The allowance for loan losses is based on ongoing assessments of estimated probable incurred losses, considering factors such as historical loss experience and prevailing economic conditions[210]. - The company continues to refine its allowance for loan losses methodology, emphasizing historical performance adjusted for economic and qualitative factors[211]. - The allowance for loan losses increased to $14.8 million at September 30, 2020, representing 1.21% of loans receivable, up from $10.3 million or 0.88% at December 31, 2019[272]. - The allowance for loan losses (ALL) increased to $14,836 million at the end of the period, up from $10,320 million at the beginning of the period, representing a 43.0% increase[279]. - The company added $5,250 million to the ALL via provision for loan losses charged to operations during the period[279]. Asset and Equity Changes - Cash and cash equivalents increased to $115.5 million at September 30, 2020, from $55.8 million at December 31, 2019, reflecting robust deposit levels and loan growth[258]. - Total assets at the end of the period were $1,622,593 million, an increase from $1,531,249 million at the end of the previous year, representing a growth of 6.0%[279]. - Total stockholders' equity rose to $157.3 million at September 30, 2020, from $150.6 million at December 31, 2019, primarily due to net income of $9.2 million[299]. Nonperforming Assets and Loan Performance - Total nonperforming assets (NPAs) decreased by $6.7 million to $14,916 million as of September 30, 2020, from $21,620 million as of December 31, 2019, primarily due to reductions in acquired non-performing loans[281]. - The ratio of nonperforming loans (NPLs) to total loans was 1.15% as of September 30, 2020, down from 1.71% a year earlier, indicating improved loan performance[279]. - Nonperforming assets decreased to $14.9 million or 0.92% of total assets at September 30, 2020, down from $21.6 million or 1.41% at December 31, 2019[284]. Capital and Liquidity - The Bank's Tier 1 capital to risk-weighted assets ratio was 13.7% as of September 30, 2020, exceeding the required minimum of 6.0%[310]. - Total capital to risk-weighted assets ratio was 15.0% as of September 30, 2020, above the minimum requirement of 8.0%[310]. - The Bank's liquidity is considered adequate, with no known events likely to materially affect liquidity[305]. - The Bank could borrow $139.2 million under the Federal Reserve's PPPLF facility as of September 30, 2020[303]. - The Company maintains a line of credit with the Federal Reserve Bank with a capacity of $1.0 million[304].

Financial Performance - Net interest income for Q2 2020 was $12.3 million, up from $10.1 million in Q2 2019, reflecting growth from the F&M acquisition and organic loan growth [215]. - For the six months ended June 30, 2020, net interest income was $25.0 million, compared to $20.1 million for the same period in 2019 [215]. - Net interest income for the three months ended June 30, 2020, was $12,303, compared to $10,083 for the same period in 2019, representing a year-over-year increase of 21.8% [220]. - The net interest income for the six months ended June 30, 2020, was $24,974, up from $20,145 in 2019, reflecting a 24.0% increase [223]. Net Interest Margin - The net interest margin for Q2 2020 was 3.34%, slightly up from 3.30% in Q2 2019, driven by increased accretion of purchased credit impaired discounts [215]. - The net interest margin for the six months ended June 30, 2020, was 3.48%, compared to 3.36% for the same period in 2019 [216]. - The company’s net interest margin for the six-month period, after adjustments, was 3.23%, compared to 3.28% for the same period in 2019 [216]. - The interest rate spread increased to 3.16% for the three months ended June 30, 2020, compared to 3.05% in 2019, while the net interest margin improved to 3.34% from 3.30% [220]. Loan and Deposit Growth - The company originated $137 million in SBA PPP loans during Q2 2020, contributing 4 basis points to the net interest margin [215]. - Total deposits for the six months ended June 30, 2020, were $1,037,658, with interest expense of $5,787, compared to $876,893 and $5,519 in 2019, marking a 18.3% increase in deposits [223]. - Deposits increased by $76.5 million to $1.272 billion at June 30, 2020, from $1.196 billion at December 31, 2019, driven by growth in retail and commercial non-maturity deposits [285]. - Total loans outstanding increased by $103.8 million to $1.28 billion as of June 30, 2020, from $1.18 billion at December 31, 2019 [257]. Allowance for Loan Losses - The allowance for loan losses is based on ongoing assessments of estimated probable incurred losses in the loan portfolio [202]. - The allowance for loan losses increased to $13.4 million at June 30, 2020, representing 1.04% of loans receivable, up from $10.3 million or 0.88% at December 31, 2019 [263]. - The provision for loan losses for the three months ended June 30, 2020, was $1,750, with $1,250 attributed to COVID-19 related impacts, indicating proactive measures in response to economic conditions [232]. - The ratio of ALL to total loans was 1.04% at June 30, 2020, up from 0.88% at December 31, 2019 [276]. Non-Interest Income and Expenses - Non-interest income for the three months ended June 30, 2020, decreased by 4.30% to $5,013 million compared to $5,238 million in the same period of 2019 [238]. - Total non-interest expense increased by 21.33% to $11,392 million for the three months ended June 30, 2020, compared to $9,389 million in the same period of 2019 [246]. - Compensation and related benefits rose by 28.32% to $5,908 million for the three months ended June 30, 2020, compared to $4,604 million in the prior year [246]. - Gain on sale of loans surged by 217.28% to $1,818 million for the three months ended June 30, 2020, compared to $573 million in the same period of 2019 [238]. Asset Quality - Nonperforming assets decreased by $4.2 million to $17.4 million at June 30, 2020, from $21.6 million at December 31, 2019 [274]. - Total nonaccrual loans amounted to $14.8 million at June 30, 2020, down from $19.1 million at March 31, 2020 [276]. - The total nonperforming loans (NPLs) were $16.7 million at June 30, 2020, down from $20.2 million at the same time last year [276]. - Impaired loans totaled $51.7 million at June 30, 2020, down from $63.2 million at December 31, 2019, with 343 impaired loans identified [262]. Capital and Liquidity - Total stockholders' equity increased to $152.8 million at June 30, 2020, from $150.6 million at December 31, 2019, largely due to net income of $5.7 million [293]. - The company was categorized as "Well Capitalized" under Prompt Corrective Action Provisions as of June 30, 2020 [306]. - The Tier 1 capital to risk-weighted assets ratio was 12.9% as of June 30, 2020, above the required 6.0% [303]. - The company reported a Tier 1 leverage ratio of 9.9% as of June 30, 2020, exceeding the minimum requirement of 4.0% [303]. Risk Management - The company’s interest rate risk is significant, with net interest income projected to change by 1% with a 300 basis point increase in interest rates as of June 30, 2020 [313]. - The company adopted asset and liability management policies to align maturities and re-pricing terms of interest-earning assets and interest-bearing liabilities [310]. - The company plans to manage funding needs by utilizing core deposits and brokered certificates of deposits to extend terms and lock in fixed interest rates [310].