
Financial Performance - The Company reported net income of $2.2 million, or $0.36 per diluted common share, for the three months ended September 30, 2024, compared to $2.1 million, or $0.33 per diluted common share, for the same period in 2023[179]. - For the nine months ended September 30, 2024, net interest income totaled $27.4 million, a decrease of $0.8 million, or 3.0%, from $28.2 million for the same period in 2023[182]. - For the three months ended September 30, 2024, net interest income was $9,185 million, with a net interest margin of 3.60%[197]. - Non-interest income increased by $0.1 million to $2.601 million for the nine months ended September 30, 2024, compared to $2.465 million in 2023[205]. - Total non-interest expense decreased to $21.4 million for the nine months ended September 30, 2024, from $21.7 million in the same period of 2023[206]. Asset and Loan Management - Total assets increased by 2.5% to $1,100.2 million as of September 30, 2024, compared to $1,072.9 million as of December 31, 2023[185]. - Total loans decreased by $18.5 million, or 2.2%, as of September 30, 2024, primarily due to payoffs of construction loans[186]. - Average total loans were $821.0 million for the nine months ended September 30, 2024, compared to $795.0 million during the same period in 2023[186]. - Total loans amounted to $3.281 billion as of September 30, 2024, with an allowance for credit losses of $10.116 million, representing 1.26% of total loans[218]. - The total loan portfolio decreased by $18.5 million, or 2.2%, as of September 30, 2024, compared to December 31, 2023[215]. Credit Quality - Nonperforming assets increased to $6.6 million, or 0.60% of total assets, as of September 30, 2024, compared to $3.0 million, or 0.28% of total assets, as of December 31, 2023[187]. - The provision for credit losses totaled $0.2 million for the nine months ended September 30, 2024, down from $0.8 million for the same period in 2023[183]. - The company's allowance for credit losses (ACL) on loans and leases was 1.26% of total loans as of September 30, 2024, slightly down from 1.28% at the end of 2023[203]. - The allowance for credit losses on loans and leases was $10.1 million as of September 30, 2024, compared to $11.4 million as of September 30, 2023[215]. Deposits and Equity - Deposits totaled $981.1 million as of September 30, 2024, an increase from $950.2 million as of December 31, 2023, driven by increased interest-bearing time and demand deposits[188]. - Shareholders' equity increased by $7.9 million, or 8.7%, as of September 30, 2024, primarily due to earnings net of dividends paid and share repurchases[190]. - Total deposits rose to $981.1 million, a 3.3% increase from $950.2 million as of December 31, 2023, with core deposits making up 85.0% of total deposits[222]. - The Company declared cash dividends of $0.15 per share during both the nine months ended September 30, 2024 and 2023[191]. Capital and Liquidity - As of September 30, 2024, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.45%, with a total capital ratio of 12.63% and a Tier 1 leverage ratio of 9.49%[192]. - The Company reported total readily available liquidity of $431.3 million as of September 30, 2024, compared to $375.3 million as of December 31, 2023[235]. - The Company had $165.2 million in borrowing capacity with the FRB's discount window as of September 30, 2024, compared to $161.7 million as of December 31, 2023[233]. - Management believes the Company has adequate sources of liquidity to cover its contractual obligations over the next twelve months[239]. Operational Developments - During the nine months ended September 30, 2024, the Company opened a new banking center in Knoxville, Tennessee, and commenced renovation of a banking center in Daphne, Alabama, expected to open in 2025[194]. - The Company repurchased 106,500 shares of common stock at an average price of $10.67 per share during the nine months ended September 30, 2024[227].