Core Insights - The company reported a net income of $2.70 million for the second quarter of 2025, an increase from $2.15 million in the same period of 2024, with earnings per share rising to $0.60 from $0.47 [2][9] - Total interest income increased by 6% to $11.64 million in the second quarter of 2025 compared to $10.94 million a year earlier, driven by higher loan yields and growth in commercial real estate [9][12] - The company successfully retired approximately $10 million in capital notes, expected to reduce annual interest expenses by about $327,000, enhancing its financial position [7][9] Financial Performance - Net interest income for the second quarter of 2025 was $8.25 million, up 16% from $7.09 million in the second quarter of 2024 [11][36] - The net interest margin improved to 3.45% in the second quarter of 2025, compared to 3.02% in the same quarter of 2024 [4][16] - Total noninterest income was $4.08 million in the second quarter of 2025, slightly down from $4.19 million in the same period of 2024 [17] Asset Quality and Growth - Loans, net of the allowance for credit losses, increased to $649.09 million at June 30, 2025, from $636.55 million at December 31, 2024 [19][22] - The ratio of nonperforming loans to total loans was 0.28% at June 30, 2025, indicating strong asset quality [23][24] - Total assets reached $1.04 billion at June 30, 2025, up from $979.24 million at December 31, 2024, reflecting growth in both loans and securities [19][26] Shareholder Value - Stockholders' equity rose to $71.67 million at June 30, 2025, from $64.87 million at December 31, 2024, with a book value per share increasing to $15.77 from $14.28 [26][9] - The company declared a quarterly dividend of $0.10 per common share, payable on September 26, 2025 [9][8] Strategic Initiatives - The company emphasized a balanced revenue stream from various sources, including commercial and retail banking, which has provided financial stability amid economic challenges [6][9] - The focus on maintaining high-quality interest-earning assets and diligent credit management has supported sound margins and quality earnings [5][6]

Core Insights - The company reported a net income of $842,000 for Q1 2025, a significant decrease from $2.19 million in Q1 2024, resulting in earnings per share of $0.19 compared to $0.48 a year earlier [2][14] - The decrease in earnings was primarily due to a one-time expense of approximately $1 million related to a consultant for negotiating a contract with the core service provider, which is expected to yield long-term cost savings [4][10] - The company maintained a strong cash position, allowing it to pay off approximately $10 million of capital notes without raising new capital, which will reduce annual interest expenses by about $327,000 [5] Financial Performance - Total interest income increased by 6.90% to $11.23 million in Q1 2025 from $10.51 million in Q1 2024, driven by higher yields on loans and growth in commercial real estate loans [12][14] - Net interest income after provision for credit losses rose to $7.58 million, compared to $7.50 million a year earlier, with a net interest margin improvement to 3.25% from 3.02% [11][15] - Noninterest income was stable at $3.28 million, with contributions from commercial treasury services and wealth management activities [16][14] Asset Quality and Growth - Total assets grew by 3% to $1.01 billion at March 31, 2025, from $979.24 million at December 31, 2024, with loans net of allowance for credit losses increasing to $642.39 million [18][24] - The ratio of nonperforming loans to total loans was 0.28%, indicating strong asset quality, with total nonperforming loans at $1.80 million [22][24] - The company added two experienced commercial relationship managers to enhance its commercial lending capabilities and expand market share [8][9] Shareholder Value - Stockholders' equity increased to $68.35 million at March 31, 2025, up from $64.87 million at December 31, 2024, with a book value per share rising to $15.04 from $14.28 [24][14] - The board of directors approved a quarterly dividend of $0.10 per common share, reflecting the company's commitment to returning value to shareholders [14]