
Financial Performance - Net income for the three months ended March 31, 2025, was $4.47 million, an increase from $3.70 million in the same period of 2024[122] - Diluted earnings per share rose to $0.31, compared to $0.29 for the three months ended March 31, 2024[123] - Net interest income increased by $1.1 million, or 10%, to $11.9 million for the three months ended March 31, 2025[138] - Noninterest income rose to $5.5 million in Q1 2025, a 127.2% increase from $2.4 million in Q1 2024, driven by significant growth in loan servicing income and net interchange fees[148] - Income tax expense was $1.2 million for Q1 2025, a 10% increase from $1.1 million in Q1 2024, primarily due to higher pre-tax earnings[158] - Stockholders' equity increased by 4% to $146.6 million as of March 31, 2025, driven by net income generated during the first quarter[190] Asset and Loan Growth - Total assets increased by 6% to $1.190 billion at March 31, 2025, compared to $1.122 billion at December 31, 2024, primarily due to a $27.4 million increase in net loans[159] - Total loans, net of deferred loan costs, increased by 3% to $843.4 million at March 31, 2025, compared to $816.0 million at December 31, 2024[165] - Loan growth was $27.4 million, representing a 3% increase compared to the previous year[123] - As of March 31, 2025, total loans amounted to $843.4 million, an increase from $816.0 million at December 31, 2024[166] Non-Performing Assets - Non-performing assets increased to $20.4 million, representing 1.71% of total assets, up from $14.2 million at December 31, 2024[129] - Non-performing loans increased to $20.4 million as of March 31, 2025, compared to $14.2 million at December 31, 2024[177] Interest and Deposits - Net interest margin decreased to 4.47% from 4.85% year-over-year[122] - Interest income increased by $2.0 million due to a $184.0 million increase in average interest-earning assets over the twelve-month period ending March 31, 2025[139] - Interest-bearing deposits totaled $715.5 million, with a cost of 4.10%[138] - Total deposits rose by 7% to $995.9 million at March 31, 2025, up from $935.1 million at December 31, 2024[184] - As of March 31, 2025, total deposits increased to $934.4 million, up from $781.7 million as of December 31, 2024, reflecting a growth of approximately 19.5%[185] Expenses and Liabilities - Noninterest expense increased by 30% to $10.9 million for Q1 2025, compared to $8.4 million for Q1 2024, driven by higher salaries and employee benefits[153] - The company’s total liabilities increased by $61.7 million, or 6%, to $1.043 billion at March 31, 2025[183] - Other liabilities decreased by 4% to $15.0 million, driven by a reduction in accrued interest payable[189] Capital and Liquidity - The Company's Tier 1 Capital Leverage Ratio improved to 14.23% as of March 31, 2025, up from 12.90% at the end of 2024[194] - Total primary liquidity sources amounted to $259.8 million as of March 31, 2025, compared to $222.4 million at December 31, 2024, indicating a liquidity increase of 16.8%[198] - Unused borrowing capacity with the FHLB of San Francisco increased to approximately $90.0 million as of March 31, 2025, from $85.0 million at the end of 2024[198] - The Company had no short-term borrowings as of March 31, 2025, maintaining a stable debt position[187] Other Assets and Operations - Cash and cash equivalents increased by 18% from $124.1 million at December 31, 2024, to $147.0 million at March 31, 2025[160] - Operating lease right of use asset increased by $1.4 million to $6.0 million at March 31, 2025, due to lease modifications[179] - Loan servicing assets increased by $255 thousand to $9.2 million at March 31, 2025, primarily due to the addition of servicing rights[180] - Other assets totaled $21.0 million at March 31, 2025, reflecting a 9% increase compared to $19.4 million at December 31, 2024[182]