Cullman Bancorp(CULL) - 2023 Q2 - Quarterly Report

Financial Position - Total assets decreased by $5.3 million, or 1.3%, to $417.9 million as of June 30, 2023, from $423.2 million at December 31, 2022[152]. - Cash and cash equivalents decreased by $10.4 million, or 28.6%, to $26.2 million at June 30, 2023, from $36.6 million at December 31, 2022[153]. - Total deposits decreased by $17.7 million, or 6.1%, to $275.2 million at June 30, 2023, from $292.9 million at December 31, 2022[156]. - Stockholders' equity increased by $1.5 million, or 1.6%, to $101.7 million at June 30, 2023, from $100.2 million at December 31, 2022[157]. - Borrowings increased to $35.0 million at June 30, 2023, from $25.0 million at December 31, 2022[156]. Loan and Interest Metrics - Gross loans held for investment increased by $4.6 million, or 1.4%, to $337.4 million at June 30, 2023, from $332.8 million at December 31, 2022[154]. - Average balance of loans (excluding PPP loans) increased by $48.0 million, or 16.6%, to $336.6 million for the three months ended June 30, 2023, compared to $288.6 million for the same period in 2022[167]. - The average balance of loans increased by $61.4 million or 22.3% to $336.4 million for the six months ended June 30, 2023, from $275.0 million for the same period in 2022[178]. - The weighted average yield on loans (excluding PPP loans) decreased by 26 basis points to 5.02% for the three months ended June 30, 2023, compared to 5.28% for the same period in 2022[167]. Interest Income and Expense - Interest income increased by $674,000, or 16.5%, to $4.8 million for the three months ended June 30, 2023, compared to $4.1 million for the same period in 2022[166]. - Interest income increased by $1.7 million or 22.9% to $9.4 million for the six months ended June 30, 2023, compared to $7.7 million for the same period in 2022[178]. - Interest expense rose by $817,000, or 378.2%, to $1.0 million for the three months ended June 30, 2023, compared to $216,000 for the same period in 2022, driven by higher borrowing balances and deposit expenses[168]. - Interest expense rose by $1.3 million or 293.9% to $1.8 million for the six months ended June 30, 2023, compared to $455,000 for the same period in 2022[179]. Net Income and Margins - Net income for the three months ended June 30, 2023, was $1.0 million, a decrease from $1.3 million for the same period in 2022, primarily due to increased interest expenses[165]. - Net income for the six months ended June 30, 2023, was $2.0 million, down from $2.3 million for the same period in 2022, primarily due to increased non-interest expenses[177]. - Net interest income for the three months ended June 30, 2023, was $3.731 million, compared to $3.874 million for the same period in 2022[160]. - Net interest income decreased by $143,000, or 3.7%, to $3.7 million for the three months ended June 30, 2023, from $3.8 million for the same period in 2022[171]. - Net interest income increased by $420,000 or 5.8% to $7.6 million for the six months ended June 30, 2023, from $7.2 million for the same period in 2022[183]. - Net interest margin decreased to 3.81% for the three months ended June 30, 2023, from 4.33% for the same period in 2022[160]. Non-Interest Income and Expenses - Non-interest income increased by $88,000 to $522,000 for the three months ended June 30, 2023, from $434,000 for the same period in 2022, attributed to increased service charges and a gain on the restructure of advances[174]. - Non-interest income increased by $40,000 to $894,000 for the six months ended June 30, 2023, from $854,000 for the same period in 2022[185]. - Non-interest expense increased by $395,000, or 15.4%, to $3.0 million for the three months ended June 30, 2023, compared to $2.6 million for the same period in 2022, mainly due to higher salaries and employee benefits[175]. - Non-interest expense increased by $829,000 or 16.7% to $5.8 million for the six months ended June 30, 2023, compared to $5.0 million for the same period in 2022[186]. Provisions for Credit Losses - Provisions for credit losses totaled $17,000 for the three months ended June 30, 2023, compared to $115,000 for the same period in 2022, with an allowance for credit losses of $3.1 million at June 30, 2023[172]. - Provisions for credit losses totaled $23,000 for the six months ended June 30, 2023, compared to $155,000 for the same period in 2022[184]. - The allowance for credit losses was $3.11 million at June 30, 2023, compared to $2.39 million at June 30, 2022, with a ratio of allowance for credit losses to total loans at 0.92%[184]. Regulatory Capital - At June 30, 2023, the company exceeded all regulatory capital requirements and was categorized as well capitalized[193].