
Financial Performance - Total interest income for Q3 2024 was $15.017 million, an increase from $14.546 million in Q2 2024, and $13.945 million in Q3 2023[1] - Net interest income after provision for credit losses was $9.033 million in Q3 2024, compared to $9.176 million in Q2 2024 and $9.299 million in Q3 2023[1] - Net income for Q3 2024 was $2.222 million, up from $2.127 million in Q2 2024 and $2.113 million in Q3 2023[1] - Diluted net income per share for Q3 2024 was $0.36, compared to $0.34 in Q2 2024 and $0.33 in Q3 2023[1] - Net interest income for 3Q2024 was $9.1 million, a decrease of $0.3 million or 3.1% compared to 3Q2023, with a net interest margin of 3.60%[4] - Net interest income for the nine months ended September 30, 2024 was $27,401,000, down from $28,240,000 in the same period of 2023[17] - Net income for the third quarter of 2024 was $2,222 thousand, up from $2,113 thousand in the same quarter of 2023, reflecting a growth of 5.2%[22] - Basic net income per share increased to $0.38 for the third quarter of 2024, compared to $0.35 for the same period in 2023, a rise of 8.6%[22] Asset and Loan Management - Total loans decreased by $15.8 million, or 1.9%, in Q3 2024, primarily due to payoffs of construction loans[3] - Average total loans for the nine months ended September 30, 2024, were $821.0 million, compared to $795.0 million during the same period in 2023, reflecting a year-over-year increase[3] - Total loans for Q3 2024 were $821,444,000 with an annualized yield of 6.40%, compared to $821,294,000 and 6.08% in Q3 2023[16] - For the nine months ended September 30, 2024, total loans were $821,008,000 with an annualized yield of 6.34%, compared to $795,033,000 and 5.94% in the same period of 2023[17] Deposits and Funding - Total deposits increased by $26.7 million, or 2.8%, during 3Q2024, with core deposits totaling $833.5 million, representing 85.0% of total deposits[5] - Total deposits rose to $981,149 thousand as of September 30, 2024, an increase of 3.3% from $950,191 thousand on December 31, 2023[19] - Total deposits increased to $962,334,000 in Q3 2024, with interest-bearing deposits at $809,163,000, up from $775,296,000 in Q3 2023[16] - Demand deposits for Q3 2024 were $209,322,000, with an interest rate of 1.08%, compared to $206,540,000 and 0.34% in Q3 2023[16] - Time deposits increased to $355,819,000 in Q3 2024, with an interest rate of 3.91%, up from $323,824,000 and 3.03% in Q3 2023[16] - Total funding costs for Q3 2024 were $974,103,000, with an average cost of 2.38%, compared to 1.83% in Q3 2023[16] Capital and Equity - Total assets increased to $1,100.235 million in Q3 2024 from $1,083.313 million in Q2 2024[1] - Shareholders' equity increased to $98.5 million, or 8.95% of total assets, as of September 30, 2024, compared to $90.6 million, or 8.44% of total assets, as of December 31, 2023[10] - As of September 30, 2024, the Bank's common equity Tier 1 capital ratio was 11.46%, maintaining higher levels than required for a "well-capitalized" institution[11] - Tangible common equity increased to $90,989 thousand as of September 30, 2024, from $86,304 thousand in the previous quarter[32] - Tangible book value per common share rose to $15.92 as of September 30, 2024, compared to $15.03 in the previous quarter[32] - Total shareholders' equity increased to $98,491 thousand as of September 30, 2024, up from $90,593 thousand on December 31, 2023, representing a growth of 8.3%[19] Efficiency and Management - The efficiency ratio improved to 69.3% in Q3 2024, down from 72.6% in Q2 2024[2] - The Tier 1 leverage ratio was 9.49% in Q3 2024, slightly up from 9.46% in Q2 2024[2] - The company is focused on sound growth strategies to enhance profitability and strengthen its balance sheet[2] - Management emphasizes the importance of tangible common equity measures for assessing capital adequacy in comparison to other organizations[30] - The Company’s calculations of tangible equity may not be comparable with those of other organizations due to the lack of standardized definitions[31] Non-Interest Income and Expenses - Noninterest income totaled $0.9 million in 3Q2024, an increase from $0.8 million in both 2Q2024 and 3Q2023[8] - Non-interest expense decreased to $7.0 million in 3Q2024, down from $7.3 million in both 2Q2024 and 3Q2023[9] - Non-interest income for the three months ended September 30, 2024, was $901 thousand, compared to $837 thousand for the same period in 2023, a growth of 7.7%[22] - Total non-interest expense decreased to $6,990 thousand for the third quarter of 2024, down from $7,319 thousand in the same quarter of 2023, a reduction of 4.5%[22] Credit Quality - The provision for credit losses was $0.2 million for both 3Q2024 and 3Q2023, with a total provision of $0.2 million for the nine months ended September 30, 2024, down from $0.8 million in the same period of 2023[7] - Nonperforming assets increased to $6.6 million as of September 30, 2024, representing 0.60% of total assets, compared to 0.28% as of December 31, 2023[8] - Provision for credit losses was $152 thousand for the three months ended September 30, 2024, compared to $184 thousand for the same period in 2023, a decrease of 17.4%[22] Liquidity - Total liquidity from cash, federal funds sold, and securities purchased under reverse repurchase agreements reached $97,833 thousand as of September 30, 2024, compared to $59,754 thousand on December 31, 2023, an increase of 63.7%[26] - The Company’s liquidity measures indicate strong capability to fund obligations in a stressed liquidity environment[27] - As of September 30, 2024, the Company had total remaining credit availability with the FHLB of $294.8 million, up from $279.4 million as of December 31, 2023[27] - Estimated uninsured deposits totaled $233.4 million, representing 23.8% of total deposits as of September 30, 2024, an increase from $200.3 million or 21.1% as of December 31, 2023[28] Expansion and Development - The Company opened a new banking center in Knoxville, Tennessee, and commenced renovation of a banking center in Daphne, Alabama, expected to open in early 2025[13]