Fentura Financial, Inc. Announces Second Quarter 2024 Earnings (Unaudited)
Fentura Financial (OTCQX: FETM) reported second quarter 2024 net income of $1,980K and first half 2024 net income of $4,770K. Total deposits increased by 3.4%, and borrowed funds decreased by 11.0% compared to the prior year. The company maintained strong asset quality with a tangible book value increase of 9.9% year-over-year to a record $29.84 per share. However, the quarterly net income fell from $3,226K in Q2 2023 to $1,980K in Q2 2024. Return on average assets is down to 0.45% compared to 0.76% a year ago. Despite these challenges, the company highlighted the stability in gross loans and the increase in total assets to $1,756,629K.
Fentura Financial (OTCQX: FETM) ha riportato un utile netto per il secondo trimestre 2024 di $1,980K e un utile netto per il primo semestre 2024 di $4,770K. I depositi totali sono aumentati del 3,4%, mentre i fondi presi in prestito sono diminuiti dell'11,0% rispetto all'anno precedente. L'azienda ha mantenuto una forte qualità degli attivi con un aumento del valore contabile tangibile del 9,9% su base annua, raggiungendo un record di $29,84 per azione. Tuttavia, l'utile netto trimestrale è sceso da $3,226K nel Q2 2023 a $1,980K nel Q2 2024. Il rendimento medio sugli attivi è sceso allo 0,45% rispetto allo 0,76% dell'anno scorso. Nonostante queste sfide, l'azienda ha evidenziato la stabilità nei prestiti lordi e l'aumento totale degli attivi a $1,756,629K.
Fentura Financial (OTCQX: FETM) reportó un ingreso neto del segundo trimestre 2024 de $1,980K y un ingreso neto de la primera mitad de 2024 de $4,770K. Los depósitos totales aumentaron un 3.4%, y los fondos prestados disminuyeron un 11.0% en comparación con el año anterior. La compañía mantuvo una sólida calidad de activos con un incremento del valor contable tangible del 9.9% interanual, alcanzando un récord de $29.84 por acción. Sin embargo, el ingreso neto trimestral cayó de $3,226K en el Q2 2023 a $1,980K en el Q2 2024. El retorno sobre activos promedio ha bajado al 0.45% en comparación con el 0.76% del año pasado. A pesar de estos desafíos, la compañía destacó la estabilidad en los préstamos brutos y el aumento en los activos totales a $1,756,629K.
펜투라 파이낸셜 (OTCQX: FETM)은 2024년 2분기 순이익으로 $1,980K, 2024년 상반기 순이익으로 $4,770K을 보고했습니다. 총 예금은 3.4% 증가했으며, 차입금은 전년 대비 11.0% 감소했습니다. 이 회사는 자산의 질을 확보하여, 주당 $29.84의 기록적인 수준으로 9.9%의 유보 가치 증가를 유지했습니다. 그러나 분기 순이익은 2023년 2분기의 $3,226K에서 2024년 2분기의 $1,980K로 감소했습니다. 평균 자산 수익률은 작년의 0.76%에서 0.45%로 하락했습니다. 이러한 도전에도 불구하고, 회사는 총 대출의 안정성과 총 자산이 $1,756,629K로 증가한 점을 강조했습니다.
Fentura Financial (OTCQX: FETM) a rapporté un résultat net pour le deuxième trimestre 2024 de $1,980K et un résultat net pour le premier semestre 2024 de $4,770K. Les dépôts totaux ont augmenté de 3,4%, tandis que les fonds empruntés ont diminué de 11,0% par rapport à l'année précédente. L'entreprise a maintenu une solide qualité d'actifs avec une augmentation de la valeur comptable tangible de 9,9% par rapport à l'année précédente, atteignant un record de $29,84 par action. Cependant, le résultat net trimestriel est tombé de $3,226K au T2 2023 à $1,980K au T2 2024. Le rendement moyen des actifs a chuté à 0,45% par rapport à 0,76% l'année dernière. Malgré ces défis, l'entreprise a mis en avant la stabilité des prêts bruts et l'augmentation des actifs totaux à $1,756,629K.
Fentura Financial (OTCQX: FETM) berichtete über ein Nettoeinkommen im zweiten Quartal 2024 von $1.980K und ein Nettoeinkommen der ersten Hälfte 2024 von $4.770K. Die Gesamteinlagen stiegen um 3,4%, während die geliehenen Mittel im Vergleich zum Vorjahr um 11,0% sanken. Das Unternehmen hielt eine hohe Vermögensqualität aufrecht, mit einem Anstieg des materiellen Buchwerts um 9,9% im Jahresvergleich auf einen Rekordwert von $29,84 pro Aktie. Das vierteljährliche Nettoeinkommen fiel jedoch von $3.226K im Q2 2023 auf $1.980K im Q2 2024. Die durchschnittliche Eigenkapitalrendite fiel auf 0,45% im Vergleich zu 0,76% im Vorjahr. Trotz dieser Herausforderungen hob das Unternehmen die Stabilität bei den Bruttodarlehen und den Anstieg der Gesamta aktive auf $1.756.629K hervor.
- Tangible book value increased by 9.9% year-over-year to $29.84 per share.
- Total deposits increased by 3.4%.
- Borrowed funds decreased by 11.0% compared to the prior year.
- Quarterly net income decreased from $3,226K in Q2 2023 to $1,980K in Q2 2024.
- Net interest income declined from $13,084K in Q2 2023 to $11,837K in Q2 2024.
- Return on average assets fell to 0.45% from 0.76% a year ago.
Dollars in thousands except per share amounts. Certain items in the prior period financial statements have been reclassified to conform with the June 30, 2024 presentation.
FENTON, Mich., July 25, 2024 (GLOBE NEWSWIRE) -- Fentura Financial, Inc. (OTCQX: FETM) announces quarterly net income results of
Ronald L. Justice, President and CEO, stated, “Our second quarter results are in line with our expectations as we pursue near-term strategies aimed at navigating a difficult banking environment. We continue to focus on strengthening our balance sheet by controlling loan growth, managing our cost of funds, and maintaining robust asset quality. During the first half, gross loans remained stable as a result of higher home equity loans, consistent commercial and industrial loans, and lower CRE and residential mortgage loans. In addition, total deposits increased
Mr. Justice concluded, “While we believe the challenging macro conditions will continue to impact profitability during the remainder of 2024, we are excited by the strength of our banking franchise and the long-term strategies we are pursuing to create value for our shareholders. Finally, I am proud of the hard work and dedication of our employees, and their unwavering commitment to serve our small business, commercial, and retail customers throughout our local Michigan communities.”
Following is a discussion of our financial performance as of, and for the three and six months ended June 30, 2024. At the end of this document is a list of abbreviations and acronyms.
Results of Operations (unaudited)
The following table outlines our QTD results of operations and provides certain performance measures as of, and for the three months ended:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||||||
| Interest income | $ | 21,487 | $ | 21,541 | $ | 21,033 | $ | 20,416 | $ | 19,553 | ||||||||||
| Interest expense | 9,650 | 9,315 | 8,526 | 7,757 | 6,469 | |||||||||||||||
| Net interest income | 11,837 | 12,226 | 12,507 | 12,659 | 13,084 | |||||||||||||||
| Credit loss expense (reversal) | 796 | (43 | ) | (190 | ) | (309 | ) | 205 | ||||||||||||
| Noninterest income | 2,314 | 2,355 | 2,145 | 2,338 | 2,460 | |||||||||||||||
| Noninterest expenses | 10,921 | 11,166 | 10,121 | 10,594 | 11,320 | |||||||||||||||
| Federal income tax expense | 454 | 668 | 937 | 937 | 793 | |||||||||||||||
| Net income | $ | 1,980 | $ | 2,790 | $ | 3,784 | $ | 3,775 | $ | 3,226 | ||||||||||
| PER SHARE | ||||||||||||||||||||
| Earnings | $ | 0.44 | $ | 0.63 | $ | 0.85 | $ | 0.85 | $ | 0.73 | ||||||||||
| Dividends | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||||
| Tangible book value(1) | $ | 29.84 | $ | 29.38 | $ | 28.92 | $ | 27.64 | $ | 27.16 | ||||||||||
| Quoted market value | ||||||||||||||||||||
| High | $ | 24.39 | $ | 27.20 | $ | 27.20 | $ | 23.74 | $ | 21.21 | ||||||||||
| Low | $ | 22.33 | $ | 24.00 | $ | 22.26 | $ | 19.10 | $ | 18.70 | ||||||||||
| Close(1) | $ | 22.50 | $ | 24.40 | $ | 27.20 | $ | 23.74 | $ | 19.35 | ||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets | 0.45 | % | 0.63 | % | 0.86 | % | 0.86 | % | 0.76 | % | ||||||||||
| Return on average shareholders' equity | 5.59 | % | 7.98 | % | 11.11 | % | 11.27 | % | 9.89 | % | ||||||||||
| Return on average tangible shareholders' equity | 5.98 | % | 8.55 | % | 11.94 | % | 12.14 | % | 10.67 | % | ||||||||||
| Efficiency ratio | 77.17 | % | 76.58 | % | 69.08 | % | 70.64 | % | 72.83 | % | ||||||||||
| Yield on average earning assets (FTE) | 5.18 | % | 5.15 | % | 5.06 | % | 4.92 | % | 4.85 | % | ||||||||||
| Rate on interest bearing liabilities | 3.22 | % | 3.11 | % | 2.90 | % | 2.66 | % | 2.35 | % | ||||||||||
| Net interest margin to average earning assets (FTE) | 2.85 | % | 2.92 | % | 3.01 | % | 3.05 | % | 3.25 | % | ||||||||||
| BALANCE SHEET DATA(1) | ||||||||||||||||||||
| Total investment securities | $ | 100,167 | $ | 103,210 | $ | 107,615 | $ | 109,543 | $ | 117,563 | ||||||||||
| Gross loans | $ | 1,459,929 | $ | 1,461,465 | $ | 1,473,471 | $ | 1,483,720 | $ | 1,472,288 | ||||||||||
| Allowance for credit losses | $ | 15,300 | $ | 15,300 | $ | 15,400 | $ | 15,400 | $ | 15,400 | ||||||||||
| Total assets | $ | 1,756,629 | $ | 1,764,629 | $ | 1,738,952 | $ | 1,744,939 | $ | 1,718,819 | ||||||||||
| Total deposits | $ | 1,427,059 | $ | 1,438,408 | $ | 1,394,182 | $ | 1,401,797 | $ | 1,380,192 | ||||||||||
| Borrowed funds | $ | 178,397 | $ | 178,500 | $ | 198,500 | $ | 201,050 | $ | 200,550 | ||||||||||
| Total shareholders' equity | $ | 143,301 | $ | 141,074 | $ | 138,702 | $ | 132,902 | $ | 130,690 | ||||||||||
| Net loans to total deposits | 101.23 | % | 100.54 | % | 104.58 | % | 104.75 | % | 105.56 | % | ||||||||||
| Common shares outstanding | 4,490,087 | 4,484,447 | 4,470,871 | 4,466,221 | 4,460,053 | |||||||||||||||
| QTD BALANCE SHEET AVERAGES | ||||||||||||||||||||
| Total assets | $ | 1,762,651 | $ | 1,771,614 | $ | 1,740,526 | $ | 1,739,510 | $ | 1,706,147 | ||||||||||
| Earning assets | $ | 1,669,862 | $ | 1,683,708 | $ | 1,649,091 | $ | 1,646,848 | $ | 1,617,593 | ||||||||||
| Interest bearing liabilities | $ | 1,204,370 | $ | 1,205,162 | $ | 1,165,064 | $ | 1,156,835 | $ | 1,105,807 | ||||||||||
| Total shareholders' equity | $ | 142,577 | $ | 140,574 | $ | 135,157 | $ | 132,860 | $ | 130,860 | ||||||||||
| Total tangible shareholders' equity | $ | 133,252 | $ | 131,204 | $ | 125,723 | $ | 123,349 | $ | 121,274 | ||||||||||
| Earned common shares outstanding | 4,461,580 | 4,449,376 | 4,443,463 | 4,437,415 | 4,427,890 | |||||||||||||||
| Unvested stock grants | 26,500 | 31,821 | 26,018 | 26,668 | 29,916 | |||||||||||||||
| Total common shares outstanding | 4,488,080 | 4,481,197 | 4,469,481 | 4,464,083 | 4,457,806 | |||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Nonperforming loans to gross loans (1) | 0.66 | % | 0.39 | % | 0.38 | % | 0.24 | % | 0.16 | % | ||||||||||
| Nonperforming assets to total assets (1) | 0.56 | % | 0.34 | % | 0.35 | % | 0.23 | % | 0.16 | % | ||||||||||
| Allowance for credit losses to gross loans (1) | 1.05 | % | 1.05 | % | 1.05 | % | 1.04 | % | 1.05 | % | ||||||||||
| Net charge-offs (recoveries) to QTD average gross loans | 0.05 | % | — | % | (0.01) % | (0.03) % | — | % | ||||||||||||
| Credit loss expense (reversal) to QTD average gross loans | 0.05 | % | — | % | (0.01) % | (0.02) % | 0.01 | % | ||||||||||||
| CAPITAL RATIOS(1) | ||||||||||||||||||||
| Total capital to risk weighted assets | 12.38 | % | 12.27 | % | 11.91 | % | 11.59 | % | 11.31 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 11.28 | % | 11.17 | % | 10.82 | % | 10.51 | % | 10.23 | % | ||||||||||
| CET1 capital to risk weighted assets | 10.28 | % | 10.17 | % | 9.83 | % | 9.53 | % | 9.25 | % | ||||||||||
| Tier 1 leverage ratio | 8.92 | % | 8.78 | % | 8.77 | % | 8.58 | % | 8.55 | % | ||||||||||
| (1)At end of period | ||||||||||||||||||||
The following table outlines our YTD results of operations and provides certain performance measures as of, and for the six months ended (unaudited):
| 6/30/2024 | 6/30/2023 | 6/30/2022 | 6/30/2021 | 6/30/2020 | ||||||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||||||
| Interest income | $ | 43,028 | $ | 38,232 | $ | 25,712 | $ | 23,577 | $ | 22,285 | ||||||||||
| Interest expense | 18,965 | 11,804 | 1,384 | 1,438 | 3,763 | |||||||||||||||
| Net interest income | 24,063 | 26,428 | 24,328 | 22,139 | 18,522 | |||||||||||||||
| Credit loss expense (reversal) | 753 | 441 | 1,027 | 218 | 3,543 | |||||||||||||||
| Noninterest income | 4,669 | 4,788 | 5,602 | 8,173 | 9,985 | |||||||||||||||
| Noninterest expenses | 22,087 | 21,953 | 20,727 | 18,342 | 15,675 | |||||||||||||||
| Federal income tax expense | 1,122 | 1,752 | 1,616 | 2,370 | 1,894 | |||||||||||||||
| Net income | $ | 4,770 | $ | 7,070 | $ | 6,560 | $ | 9,382 | $ | 7,395 | ||||||||||
| PER SHARE | ||||||||||||||||||||
| Earnings | $ | 1.07 | $ | 1.60 | $ | 1.48 | $ | 2.02 | $ | 1.59 | ||||||||||
| Dividends | $ | 0.22 | $ | 0.20 | $ | 0.18 | $ | 0.16 | $ | 0.15 | ||||||||||
| Tangible book value(1) | $ | 29.84 | $ | 27.16 | $ | 24.53 | $ | 25.73 | $ | 22.44 | ||||||||||
| Quoted market value | ||||||||||||||||||||
| High | $ | 27.20 | $ | 24.10 | $ | 29.25 | $ | 27.40 | $ | 26.00 | ||||||||||
| Low | $ | 22.33 | $ | 18.70 | $ | 24.40 | $ | 21.90 | $ | 12.55 | ||||||||||
| Close(1) | $ | 22.50 | $ | 19.35 | $ | 25.00 | $ | 26.00 | $ | 17.35 | ||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets | 0.54 | % | 0.84 | % | 0.91 | % | 1.47 | % | 1.32 | % | ||||||||||
| Return on average shareholders' equity | 6.78 | % | 11.08 | % | 11.05 | % | 15.75 | % | 14.13 | % | ||||||||||
| Return on average tangible shareholders' equity | 7.25 | % | 11.98 | % | 12.05 | % | 16.25 | % | 14.69 | % | ||||||||||
| Efficiency ratio | 76.87 | % | 70.33 | % | 69.25 | % | 60.51 | % | 54.99 | % | ||||||||||
| Yield on average earning assets (FTE) | 5.16 | % | 4.80 | % | 3.83 | % | 3.89 | % | 4.20 | % | ||||||||||
| Rate on interest bearing liabilities | 3.17 | % | 2.19 | % | 0.34 | % | 0.39 | % | 1.09 | % | ||||||||||
| Net interest margin to average earning assets (FTE) | 2.89 | % | 3.32 | % | 3.63 | % | 3.65 | % | 3.49 | % | ||||||||||
| BALANCE SHEET DATA(1) | ||||||||||||||||||||
| Total investment securities | $ | 100,167 | $ | 117,563 | $ | 136,725 | $ | 129,944 | $ | 75,526 | ||||||||||
| Gross loans | $ | 1,459,929 | $ | 1,472,288 | $ | 1,232,892 | $ | 986,358 | $ | 1,044,564 | ||||||||||
| Allowance for credit losses | $ | 15,300 | $ | 15,400 | $ | 11,000 | $ | 10,800 | $ | 8,991 | ||||||||||
| Total assets | $ | 1,756,629 | $ | 1,718,819 | $ | 1,471,454 | $ | 1,309,685 | $ | 1,237,694 | ||||||||||
| Total deposits | $ | 1,427,059 | $ | 1,380,192 | $ | 1,231,543 | $ | 1,126,496 | $ | 1,018,287 | ||||||||||
| Borrowed funds | $ | 178,397 | $ | 200,550 | $ | 111,000 | $ | 49,500 | $ | 96,217 | ||||||||||
| Total shareholders' equity | $ | 143,301 | $ | 130,690 | $ | 118,566 | $ | 122,986 | $ | 108,969 | ||||||||||
| Net loans to total deposits | 101.23 | % | 105.56 | % | 99.22 | % | 86.60 | % | 101.70 | % | ||||||||||
| Common shares outstanding | 4,490,087 | 4,460,053 | 4,429,357 | 4,638,594 | 4,680,920 | |||||||||||||||
| YTD BALANCE SHEET AVERAGES | ||||||||||||||||||||
| Total assets | $ | 1,767,127 | $ | 1,696,660 | $ | 1,449,212 | $ | 1,284,534 | $ | 1,125,064 | ||||||||||
| Earning assets | $ | 1,676,786 | $ | 1,606,599 | $ | 1,354,652 | $ | 1,225,641 | $ | 1,068,847 | ||||||||||
| Interest bearing liabilities | $ | 1,204,768 | $ | 1,089,115 | $ | 828,955 | $ | 744,434 | $ | 692,035 | ||||||||||
| Total shareholders' equity | $ | 141,568 | $ | 128,673 | $ | 119,711 | $ | 120,134 | $ | 105,276 | ||||||||||
| Total tangible shareholders' equity | $ | 132,220 | $ | 119,050 | $ | 109,776 | $ | 116,432 | $ | 101,233 | ||||||||||
| Earned common shares outstanding | 4,455,478 | 4,424,737 | 4,434,527 | 4,654,863 | 4,662,113 | |||||||||||||||
| Unvested stock grants | 29,160 | 29,461 | 25,963 | 21,297 | 13,844 | |||||||||||||||
| Total common shares outstanding | 4,484,638 | 4,454,198 | 4,460,490 | 4,676,160 | 4,675,957 | |||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Nonperforming loans to gross loans (1) | 0.66 | % | 0.16 | % | 0.16 | % | 0.87 | % | 0.10 | % | ||||||||||
| Nonperforming assets to total assets (1) | 0.56 | % | 0.16 | % | 0.16 | % | 0.66 | % | 0.08 | % | ||||||||||
| Allowance for credit losses to gross loans (1) | 1.05 | % | 1.05 | % | 0.89 | % | 1.09 | % | 0.86 | % | ||||||||||
| Net charge-offs (recoveries) to YTD average gross loans | 0.06 | % | — | % | 0.05 | % | 0.03 | % | 0.04 | % | ||||||||||
| Credit loss expense (reversal) to YTD average gross loans | 0.05 | % | 0.03 | % | 0.09 | % | 0.02 | % | 0.38 | % | ||||||||||
| CAPITAL RATIOS(1) | ||||||||||||||||||||
| Total capital to risk weighted assets | 12.38 | % | 11.31 | % | 11.36 | % | 14.35 | % | 15.06 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 11.28 | % | 10.23 | % | 10.50 | % | 13.27 | % | 14.00 | % | ||||||||||
| CET1 capital to risk weighted assets | 10.28 | % | 9.25 | % | 9.39 | % | 11.87 | % | 12.34 | % | ||||||||||
| Tier 1 leverage ratio | 8.92 | % | 8.55 | % | 9.30 | % | 10.19 | % | 9.90 | % | ||||||||||
| (1)At end of period | ||||||||||||||||||||
Income Statement Breakdown and Analysis
| Quarter to Date | ||||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| Net income | $ | 1,980 | $ | 2,790 | $ | 3,784 | $ | 3,775 | $ | 3,226 | ||||||||||
| Acquisition related items (net of tax) | ||||||||||||||||||||
| Amortization of core deposit intangibles | 34 | 36 | 60 | 60 | 60 | |||||||||||||||
| Total acquisition related items (net of tax) | 34 | 36 | 60 | 60 | 60 | |||||||||||||||
| Other nonrecurring items (net of tax) | ||||||||||||||||||||
| Proxy contest related expenses | — | — | — | — | 413 | |||||||||||||||
| Prepayment penalties collected | (40 | ) | (58 | ) | (85 | ) | (29 | ) | (95 | ) | ||||||||||
| Total other nonrecurring items (net of tax) | (40 | ) | (58 | ) | (85 | ) | (29 | ) | 318 | |||||||||||
| Adjusted net income from operations | $ | 1,974 | $ | 2,768 | $ | 3,759 | $ | 3,806 | $ | 3,604 | ||||||||||
| Net interest income | $ | 11,837 | $ | 12,226 | $ | 12,507 | $ | 12,659 | $ | 13,084 | ||||||||||
| Prepayment penalties collected | (51 | ) | (73 | ) | (107 | ) | (37 | ) | (120 | ) | ||||||||||
| Adjusted net interest income | $ | 11,786 | $ | 12,153 | $ | 12,400 | $ | 12,622 | $ | 12,964 | ||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Based on adjusted net income from operations | ||||||||||||||||||||
| Earnings per share | $ | 0.44 | $ | 0.62 | $ | 0.85 | $ | 0.86 | $ | 0.81 | ||||||||||
| Return on average assets | 0.45 | % | 0.63 | % | 0.86 | % | 0.87 | % | 0.85 | % | ||||||||||
| Return on average shareholders' equity | 5.57 | % | 7.92 | % | 11.03 | % | 11.37 | % | 11.05 | % | ||||||||||
| Return on average tangible shareholders' equity | 5.96 | % | 8.49 | % | 11.86 | % | 12.24 | % | 11.92 | % | ||||||||||
| Efficiency ratio | 77.15 | % | 76.65 | % | 69.06 | % | 70.31 | % | 69.51 | % | ||||||||||
| Based on adjusted net interest income | ||||||||||||||||||||
| Yield on average earning assets (FTE) | 5.17 | % | 5.13 | % | 5.03 | % | 4.91 | % | 4.82 | % | ||||||||||
| Rate on interest bearing liabilities | 3.22 | % | 3.11 | % | 2.90 | % | 2.66 | % | 2.35 | % | ||||||||||
| Net interest margin to average earning assets (FTE) | 2.84 | % | 2.90 | % | 2.98 | % | 3.04 | % | 3.22 | % | ||||||||||
| Year to Date June 30 | Variance | ||||||||||||||
| 2024 | 2023 | Amount | % | ||||||||||||
| Net income | $ | 4,770 | $ | 7,070 | $ | (2,300 | ) | (32.53 | )% | ||||||
| Acquisition related items (net of tax) | |||||||||||||||
| Amortization of core deposit intangibles | 70 | 120 | (50 | ) | (41.67 | )% | |||||||||
| Total acquisition related items (net of tax) | 70 | 120 | (50 | ) | (41.67 | )% | |||||||||
| Other nonrecurring items (net of tax) | |||||||||||||||
| Proxy contest related expenses | — | 413 | (413 | ) | (100.00 | )% | |||||||||
| Prepayment penalties collected | (98 | ) | (104 | ) | 6 | (5.77 | )% | ||||||||
| Total other nonrecurring items (net of tax) | (98 | ) | 309 | (407 | ) | (131.72 | )% | ||||||||
| Adjusted net income from operations | $ | 4,742 | $ | 7,499 | $ | (2,757 | ) | (36.76 | )% | ||||||
| Net interest income | $ | 24,063 | $ | 26,428 | $ | (2,365 | ) | (8.95 | )% | ||||||
| Prepayment penalties collected | (124 | ) | (132 | ) | 8 | (6.06 | )% | ||||||||
| Adjusted net interest income | $ | 23,939 | $ | 26,296 | $ | (2,357 | ) | (8.96 | )% | ||||||
| PERFORMANCE RATIOS | |||||||||||||||
| Based on adjusted net income from operations | |||||||||||||||
| Earnings per share | $ | 1.06 | $ | 1.69 | $ | (0.63 | ) | (37.28 | )% | ||||||
| Return on average assets | 0.54 | % | 0.89 | % | (0.35 | )% | |||||||||
| Return on average shareholders' equity | 6.74 | % | 11.75 | % | (5.01 | )% | |||||||||
| Return on average tangible shareholders' equity | 7.21 | % | 12.70 | % | (5.49 | )% | |||||||||
| Efficiency ratio | 76.90 | % | 68.45 | % | 8.45 | % | |||||||||
| Based on adjusted net interest income | |||||||||||||||
| Yield on average earning assets (FTE) | 5.15 | % | 4.78 | % | 0.37 | % | |||||||||
| Rate on interest bearing liabilities | 3.17 | % | 2.19 | % | 0.98 | % | |||||||||
| Net interest margin to average earning assets (FTE) | 2.88 | % | 3.30 | % | (0.42 | )% | |||||||||
Average Balances, Interest Rate, and Net Interest Income
The following tables present the daily average amount outstanding for each major category of interest earning assets, nonearning assets, interest bearing liabilities, and noninterest bearing liabilities. These tables also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a FTE basis using a federal income tax rate of
Net interest income is the amount by which interest income on earning assets exceeds the interest expenses on interest bearing liabilities. Net interest income, which includes loan fees, is influenced by changes in the balance and mix of assets and liabilities and market interest rates. We exert some control over these factors; however, FRB monetary policy and competition have a significant impact. For analytical purposes, net interest income is adjusted to a FTE basis by adding the income tax savings from interest on tax exempt loans, and nontaxable investment securities, thus making period-to-period comparisons more meaningful.
| Three Months Ended | ||||||||||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||
| Average Balance | Tax Equivalent Interest | Average Yield/ Rate | Average Balance | Tax Equivalent Interest | Average Yield / Rate | Average Balance | Tax Equivalent Interest | Average Yield / Rate | ||||||||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||||||||||
| Total loans | $ | 1,462,362 | $ | 19,550 | 5.38 | % | $ | 1,471,130 | $ | 19,609 | 5.36 | % | $ | 1,470,156 | $ | 18,725 | 5.11 | % | ||||||||||||
| Taxable investment securities | 89,751 | 350 | 1.57 | % | 94,199 | 359 | 1.53 | % | 107,256 | 418 | 1.56 | % | ||||||||||||||||||
| Nontaxable investment securities | 11,059 | 62 | 2.25 | % | 11,963 | 67 | 2.25 | % | 13,253 | 76 | 2.30 | % | ||||||||||||||||||
| Interest earning cash and cash equivalents | 97,511 | 1,331 | 5.49 | % | 97,237 | 1,319 | 5.46 | % | 15,552 | 208 | 5.36 | % | ||||||||||||||||||
| Federal Home Loan Bank stock | 9,179 | 207 | 9.07 | % | 9,179 | 201 | 8.81 | % | 11,376 | 143 | 5.04 | % | ||||||||||||||||||
| Total earning assets | 1,669,862 | 21,500 | 5.18 | % | 1,683,708 | 21,555 | 5.15 | % | 1,617,593 | 19,570 | 4.85 | % | ||||||||||||||||||
| Nonearning assets | ||||||||||||||||||||||||||||||
| Allowance for credit losses | (15,300 | ) | (15,400 | ) | (15,220 | ) | ||||||||||||||||||||||||
| Premises and equipment, net | 13,964 | 14,392 | 15,363 | |||||||||||||||||||||||||||
| Accrued income and other assets | 94,125 | 88,914 | 88,411 | |||||||||||||||||||||||||||
| Total assets | $ | 1,762,651 | $ | 1,771,614 | $ | 1,706,147 | ||||||||||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||||||||||||
| Interest bearing demand deposits | $ | 429,141 | $ | 3,745 | 3.51 | % | $ | 421,597 | $ | 3,559 | 3.40 | % | $ | 380,224 | $ | 2,619 | 2.76 | % | ||||||||||||
| Savings deposits | 266,731 | 408 | 0.62 | % | 272,296 | 413 | 0.61 | % | 306,195 | 434 | 0.57 | % | ||||||||||||||||||
| Time deposits | 330,024 | 3,756 | 4.58 | % | 326,747 | 3,644 | 4.49 | % | 175,607 | 1,303 | 2.98 | % | ||||||||||||||||||
| Borrowed funds | 178,474 | 1,741 | 3.92 | % | 184,522 | 1,699 | 3.70 | % | 243,781 | 2,113 | 3.48 | % | ||||||||||||||||||
| Total interest bearing liabilities | 1,204,370 | 9,650 | 3.22 | % | 1,205,162 | 9,315 | 3.11 | % | 1,105,807 | 6,469 | 2.35 | % | ||||||||||||||||||
| Noninterest bearing liabilities | ||||||||||||||||||||||||||||||
| Noninterest bearing deposits | 405,985 | 417,089 | 455,123 | |||||||||||||||||||||||||||
| Accrued interest and other liabilities | 9,719 | 8,789 | 14,357 | |||||||||||||||||||||||||||
| Shareholders' equity | 142,577 | 140,574 | 130,860 | |||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,762,651 | $ | 1,771,614 | $ | 1,706,147 | ||||||||||||||||||||||||
| Net interest income (FTE) | $ | 11,850 | $ | 12,240 | $ | 13,101 | ||||||||||||||||||||||||
| Net interest margin to earning assets (FTE) | 2.85 | % | 2.92 | % | 3.25 | % | ||||||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | |||||||||||||||||||
| Average Balance | Tax Equivalent Interest | Average Yield /Rate | Average Balance | Tax Equivalent Interest | Average Yield / Rate | |||||||||||||||
| Interest earning assets | ||||||||||||||||||||
| Total loans | $ | 1,466,747 | $ | 39,159 | 5.37 | % | $ | 1,458,766 | $ | 36,579 | 5.06 | % | ||||||||
| Taxable investment securities | 91,975 | 709 | 1.55 | % | 108,463 | 853 | 1.59 | % | ||||||||||||
| Nontaxable investment securities | 11,511 | 129 | 2.25 | % | 13,769 | 157 | 2.30 | % | ||||||||||||
| Interest earning cash and cash equivalents | 97,374 | 2,650 | 5.47 | % | 14,794 | 361 | 4.92 | % | ||||||||||||
| Federal Home Loan Bank stock | 9,179 | 408 | 8.94 | % | 10,807 | 316 | 5.90 | % | ||||||||||||
| Total earning assets | 1,676,786 | 43,055 | 5.16 | % | 1,606,599 | 38,266 | 4.80 | % | ||||||||||||
| Nonearning assets | ||||||||||||||||||||
| Allowance for credit losses | (15,350 | ) | (15,183 | ) | ||||||||||||||||
| Premises and equipment, net | 14,179 | 15,407 | ||||||||||||||||||
| Accrued income and other assets | 91,512 | 89,837 | ||||||||||||||||||
| Total assets | $ | 1,767,127 | $ | 1,696,660 | ||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||
| Interest bearing demand deposits | $ | 425,370 | $ | 7,304 | 3.45 | % | $ | 369,723 | $ | 4,697 | 2.56 | % | ||||||||
| Savings deposits | 269,514 | 821 | 0.61 | % | 323,675 | 907 | 0.57 | % | ||||||||||||
| Time deposits | 328,386 | 7,400 | 4.53 | % | 171,064 | 2,315 | 2.73 | % | ||||||||||||
| Borrowed funds | 181,498 | 3,440 | 3.81 | % | 224,653 | 3,885 | 3.49 | % | ||||||||||||
| Total interest bearing liabilities | 1,204,768 | 18,965 | 3.17 | % | 1,089,115 | 11,804 | 2.19 | % | ||||||||||||
| Noninterest bearing liabilities | ||||||||||||||||||||
| Noninterest bearing deposits | 411,537 | 464,905 | ||||||||||||||||||
| Accrued interest and other liabilities | 9,254 | 13,967 | ||||||||||||||||||
| Shareholders' equity | 141,568 | 128,673 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,767,127 | $ | 1,696,660 | ||||||||||||||||
| Net interest income (FTE) | $ | 24,090 | $ | 26,462 | ||||||||||||||||
| Net interest margin to earning assets (FTE) | 2.89 | % | 3.32 | % | ||||||||||||||||
Volume and Rate Variance Analysis
The following table sets forth the effect of volume and rate changes on interest income and expense for the periods indicated. For the purpose of this table, changes in interest due to volume and rate were determined as follows:
Volume - change in volume multiplied by the previous period's rate.
Rate - change in the FTE rate multiplied by the previous period's volume.
The change in interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.
| Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2024 | June 30, 2024 | June 30, 2024 | ||||||||||||||||||||||||||||||||||
| Compared To | Compared To | Compared To | ||||||||||||||||||||||||||||||||||
| March 31, 2024 | June 30, 2023 | June 30, 2023 | ||||||||||||||||||||||||||||||||||
| Increase (Decrease) Due to | Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||||||||||||||
| Volume | Rate | Net | Volume | Rate | Net | Volume | Rate | Net | ||||||||||||||||||||||||||||
| Changes in interest income | ||||||||||||||||||||||||||||||||||||
| Total loans | $ | (398 | ) | $ | 339 | $ | (59 | ) | $ | (648 | ) | $ | 1,473 | $ | 825 | $ | 212 | $ | 2,368 | $ | 2,580 | |||||||||||||||
| Taxable investment securities | (55 | ) | 46 | (9 | ) | (87 | ) | 19 | (68 | ) | (124 | ) | (20 | ) | (144 | ) | ||||||||||||||||||||
| Nontaxable investment securities | (5 | ) | — | (5 | ) | (12 | ) | (2 | ) | (14 | ) | (25 | ) | (3 | ) | (28 | ) | |||||||||||||||||||
| Interest earning cash and cash equivalents | 4 | 8 | 12 | 1,118 | 5 | 1,123 | 2,244 | 45 | 2,289 | |||||||||||||||||||||||||||
| Federal Home Loan Bank stock | — | 6 | 6 | (166 | ) | 230 | 64 | (128 | ) | 220 | 92 | |||||||||||||||||||||||||
| Total changes in interest income | (454 | ) | 399 | (55 | ) | 205 | 1,725 | 1,930 | 2,179 | 2,610 | 4,789 | |||||||||||||||||||||||||
| Changes in interest expense | ||||||||||||||||||||||||||||||||||||
| Interest bearing demand deposits | 66 | 120 | 186 | 362 | 764 | 1,126 | 788 | 1,819 | 2,607 | |||||||||||||||||||||||||||
| Savings deposits | (33 | ) | 28 | (5 | ) | (198 | ) | 172 | (26 | ) | (243 | ) | 157 | (86 | ) | |||||||||||||||||||||
| Time deposits | 37 | 75 | 112 | 1,523 | 930 | 2,453 | 2,962 | 2,123 | 5,085 | |||||||||||||||||||||||||||
| Borrowed funds | (274 | ) | 316 | 42 | (1,711 | ) | 1,339 | (372 | ) | (1,275 | ) | 830 | (445 | ) | ||||||||||||||||||||||
| Total changes in interest expense | (204 | ) | 539 | 335 | (24 | ) | 3,205 | 3,181 | 2,232 | 4,929 | 7,161 | |||||||||||||||||||||||||
| Net change in net interest income (FTE) | $ | (250 | ) | $ | (140 | ) | $ | (390 | ) | $ | 229 | $ | (1,480 | ) | $ | (1,251 | ) | $ | (53 | ) | $ | (2,319 | ) | $ | (2,372 | ) | ||||||||||
| Average Yield/Rate for the Three Months Ended | ||||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| Total earning assets | 5.18 | % | 5.15 | % | 5.06 | % | 4.92 | % | 4.85 | % | ||||||||||
| Total interest bearing liabilities | 3.22 | % | 3.11 | % | 2.90 | % | 2.66 | % | 2.35 | % | ||||||||||
| Net interest margin to earning assets (FTE) | 2.85 | % | 2.92 | % | 3.01 | % | 3.05 | % | 3.25 | % | ||||||||||
| Quarter to Date Net Interest Income (FTE) | ||||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| Interest income | $ | 21,487 | $ | 21,541 | $ | 21,033 | $ | 20,416 | $ | 19,553 | ||||||||||
| FTE adjustment | 13 | 14 | 14 | 14 | 17 | |||||||||||||||
| Total interest income (FTE) | 21,500 | 21,555 | 21,047 | 20,430 | 19,570 | |||||||||||||||
| Total interest expense | 9,650 | 9,315 | 8,526 | 7,757 | 6,469 | |||||||||||||||
| Net interest income (FTE) | $ | 11,850 | $ | 12,240 | $ | 12,521 | $ | 12,673 | $ | 13,101 | ||||||||||
Noninterest Income
| Three Months Ended | ||||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| Service charges and fees | ||||||||||||||||||||
| Trust and investment services | 607 | 641 | 433 | 572 | 583 | |||||||||||||||
| ATM and debit card | 545 | 512 | 549 | 568 | 570 | |||||||||||||||
| Service charges on deposit accounts | 162 | 140 | 211 | 244 | 224 | |||||||||||||||
| Total | 1,314 | 1,293 | 1,193 | 1,384 | 1,377 | |||||||||||||||
| Net gain on sales of commercial loans | 98 | 296 | 226 | — | 95 | |||||||||||||||
| Net gain on sales of residential mortgage loans | 177 | 143 | 96 | 164 | 198 | |||||||||||||||
| Change in fair value of equity investments | (3 | ) | (10 | ) | 42 | (28 | ) | (16 | ) | |||||||||||
| Changes in the fair value of MSR | (44 | ) | (96 | ) | (108 | ) | 119 | (8 | ) | |||||||||||
| Other | ||||||||||||||||||||
| Mortgage servicing fees | 386 | 394 | 398 | 398 | 406 | |||||||||||||||
| Change in cash surrender value of corporate owned life insurance | 207 | 204 | 192 | 181 | 178 | |||||||||||||||
| Other | 179 | 131 | 106 | 120 | 230 | |||||||||||||||
| Total | 772 | 729 | 696 | 699 | 814 | |||||||||||||||
| Total noninterest income | $ | 2,314 | $ | 2,355 | $ | 2,145 | $ | 2,338 | $ | 2,460 | ||||||||||
| Memo items: | ||||||||||||||||||||
| Residential mortgage operations | $ | 519 | $ | 441 | $ | 386 | $ | 681 | $ | 596 | ||||||||||
| Six Months Ended June 30 | Variance | ||||||||||||||
| 2024 | 2023 | Amount | % | ||||||||||||
| Service charges and fees | |||||||||||||||
| Trust and investment services | $ | 1,248 | $ | 1,132 | $ | 116 | 10.25 | % | |||||||
| ATM and debit card | 1,057 | 1,101 | (44 | ) | (4.00 | )% | |||||||||
| Service charges on deposit accounts | 302 | 442 | (140 | ) | (31.67 | )% | |||||||||
| Total | 2,607 | 2,675 | (68 | ) | (2.54 | )% | |||||||||
| Net gain on sales of commercial loans | 394 | 95 | 299 | 314.74 | % | ||||||||||
| Net gain on sales of residential mortgage loans | 320 | 359 | (39 | ) | (10.86 | )% | |||||||||
| Change in fair value of equity investments | (13 | ) | (1 | ) | (12 | ) | 1200.00 | % | |||||||
| Changes in the fair value of MSR | (140 | ) | 99 | (239 | ) | (241.41 | )% | ||||||||
| Other | |||||||||||||||
| Mortgage servicing fees | 780 | 812 | (32 | ) | (3.94 | )% | |||||||||
| Change in cash surrender value of corporate owned life insurance | 411 | 350 | 61 | 17.43 | % | ||||||||||
| Other | 310 | 399 | (89 | ) | (22.31 | )% | |||||||||
| Total | 1,501 | 1,561 | (60 | ) | (3.84 | )% | |||||||||
| Total noninterest income | $ | 4,669 | $ | 4,788 | $ | (119 | ) | (2.49 | )% | ||||||
| Memo items: | |||||||||||||||
| Residential mortgage operations | $ | 960 | $ | 1,270 | $ | (310 | ) | (24.41 | )% | ||||||
Residential Mortgage Operations
Residential mortgage operations includes net gains on sales of loans, net mortgage servicing rights income, and mortgage servicing fees.
Net gain on sales of residential mortgage loans represents the income earned on the sale of residential mortgage loans into the secondary market. Although increases in interest rates and limited inventories have significantly driven down the volume of new originations and refinancing activity, we continue to actively sell residential mortgage loans into the secondary market. During the second quarter of 2024, residential mortgage originations sold into the secondary market totaled
Changes in the fair value of MSR are highly correlated to changes in interest rates and prepayment speeds. During the second quarter of 2024, the fair value of the servicing portfolio decreased primarily due to a decline in the size of the servicing portfolio as the portfolio declined by
Mortgage servicing fees includes the fees earned for servicing loans that have been sold into the secondary market. The annual decrease in mortgage servicing fees is directly related to the size of the serviced portfolio. Due to reduced levels of secondary market originations and prepayments, the serviced loan portfolio declined by
All Other Noninterest Income
Trust and investment services includes income earned from contracts with customers to manage assets for investment and/or to transact on their accounts through the wealth management and trust department. Trust services and wealth management fees are subject to market fluctuations and interest rate changes. We expect trust and investment services fees to modestly increase in future periods.
ATM and debit card income represents fees earned on ATM and debit card transactions. We expect these fees to approximate current levels in 2024.
Service charges on deposit accounts includes fees earned from deposit customers for transaction-based charges, account maintenance and overdraft services. These charges have declined in 2024 due to a reduced level of NSF fees charged to customers based on regulatory guidance and overall industry trends. Service charges on deposit accounts are expected to approximate current levels throughout the remainder of the year.
Net gain on sales of commercial loans represents the income earned from the sale of commercial loans into the secondary market. During the first and second quarters of 2024, we sold the guaranteed portion of select SBA loans. We anticipate this strategy to continue throughout the remainder of the year.
Change in cash surrender value of corporate owned life insurance is expected to modestly increase throughout 2024.
Other includes miscellaneous other income items, none of which are individually significant.
Noninterest Expenses
| Three Months Ended | |||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Compensation and benefits | $ | 5,842 | $ | 6,066 | $ | 5,521 | $ | 5,592 | $ | 5,492 | |||||
| Professional services | 963 | 894 | 695 | 726 | 1,237 | ||||||||||
| Furniture and equipment | 689 | 727 | 696 | 668 | 685 | ||||||||||
| Occupancy | 605 | 623 | 610 | 591 | 589 | ||||||||||
| Data processing | 490 | 547 | 505 | 576 | 565 | ||||||||||
| Loan and collection | 425 | 322 | 301 | 232 | 457 | ||||||||||
| Advertising and promotional | 337 | 348 | 139 | 506 | 509 | ||||||||||
| Other | |||||||||||||||
| FDIC insurance premiums | 327 | 299 | 270 | 330 | 330 | ||||||||||
| ATM and debit card | 188 | 171 | 158 | 153 | 179 | ||||||||||
| Telephone and communication | 86 | 109 | 103 | 115 | 100 | ||||||||||
| Amortization of core deposit intangibles | 44 | 45 | 76 | 75 | 76 | ||||||||||
| Other general and administrative | 925 | 1,015 | 1,047 | 1,030 | 1,101 | ||||||||||
| Total | 1,570 | 1,639 | 1,654 | 1,703 | 1,786 | ||||||||||
| Total noninterest expenses | $ | 10,921 | $ | 11,166 | $ | 10,121 | $ | 10,594 | $ | 11,320 | |||||
| Six Months Ended June 30 | Variance | ||||||||||||
| 2024 | 2023 | Amount | % | ||||||||||
| Compensation and benefits | $ | 11,908 | $ | 11,284 | $ | 624 | 5.53 | % | |||||
| Professional services | 1,857 | 2,003 | (146 | ) | (7.29 | )% | |||||||
| Furniture and equipment | 1,416 | 1,411 | 5 | 0.35 | % | ||||||||
| Occupancy | 1,228 | 1,224 | 4 | 0.33 | % | ||||||||
| Data processing | 1,037 | 1,078 | (41 | ) | (3.80 | )% | |||||||
| Loan and collection | 747 | 697 | 50 | 7.17 | % | ||||||||
| Advertising and promotional | 685 | 960 | (275 | ) | (28.65 | )% | |||||||
| Other | |||||||||||||
| FDIC insurance premiums | 626 | 531 | 95 | 17.89 | % | ||||||||
| ATM and debit card | 359 | 340 | 19 | 5.59 | % | ||||||||
| Telephone and communication | 195 | 219 | (24 | ) | (10.96 | )% | |||||||
| Amortization of core deposit intangibles | 89 | 152 | (63 | ) | (41.45 | )% | |||||||
| Other general and administrative | 1,940 | 2,054 | (114 | ) | (5.55 | )% | |||||||
| Total | 3,209 | 3,296 | (87 | ) | (2.64 | )% | |||||||
| Total noninterest expenses | $ | 22,087 | $ | 21,953 | $ | 134 | 0.61 | % | |||||
Compensation and benefits includes salaries, commissions and incentives, employee benefits, and payroll taxes. Compensation and benefits has increased in 2024 due to an increase in the size of the organization, merit increases, and market based adjustments. We expect a modest increase in overall compensation and benefits throughout the remainder of 2024.
Professional services include expenses relating to third-party professional services. These services include, but are not limited to, regulatory, auditing, consulting, and legal. Professional services expenses are expected to approximate current levels in future periods.
Furniture and equipment and occupancy expenses primarily consist of depreciation, repairs and maintenance, certain service contracts, and other related items. These expenses are expected to approximate current levels throughout 2024.
Data processing primarily includes the expenses relating to our core data processor. Data processing expenses are expected to modestly increase throughout 2024 due to annual contractual increases from our core data processor.
Loan and collection includes expenses related to the origination and collection of loans. The increase in such expenses in 2024 is due to increased levels of home ownership grants. Loan and collection expenses are expected to approximate current levels in future periods as loan growth is expected to approximate current levels.
Advertising and promotional expenses includes media costs and any donations or sponsorships. These expenses also include marketing efforts to attract new and expand existing customer loan and deposit account relationships. Total advertising and promotional expenses are expected to decline in 2024 due to the expiration of certain long-term sponsorship commitments.
FDIC insurance premiums typically fluctuate each period based on the size of the balance sheet, capital position and overall risk profile. These expenses have increased due to the FDIC increasing its assessment rate for all insured institutions effective January 1, 2023. FDIC insurance premiums are expected to approximate current levels.
ATM and debit card expenses fluctuate based on customer and non-customer utilization of ATMs and customer debit card volumes. We expect these fees to approximate current levels in future periods.
Telephone and communication includes expenses relating to our communication systems. These expenses are expected to approximate current levels in future periods.
Amortization of core deposit intangibles relates to the core deposits acquired from Community Bancorp, Inc. on December 31, 2016 and FSB on December 1, 2021. These core deposit intangibles are being amortized using an accelerated sum-of-years-digits method over their estimated useful lives of seven years. The core deposit intangibles associated with the acquisition of Community Bancorp, Inc. were fully amortized as of December 31, 2023. The core deposit intangibles associated with the acquisition of FSB will be amortized through 2028.
Other general and administrative includes miscellaneous other expense items. Other general and administrative expenses are expected to approximate current levels in future periods.
Balance Sheet Breakdown and Analysis
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 128,590 | $ | 132,349 | $ | 90,661 | $ | 83,365 | $ | 59,181 | |||||
| Total investment securities | 100,167 | 103,210 | 107,615 | 109,543 | 117,563 | ||||||||||
| Residential mortgage loans held-for-sale, at fair value | 2,440 | 1,067 | 747 | 1,037 | 1,106 | ||||||||||
| Gross loans | 1,459,929 | 1,461,465 | 1,473,471 | 1,483,720 | 1,472,288 | ||||||||||
| Less allowance for credit losses | 15,300 | 15,300 | 15,400 | 15,400 | 15,400 | ||||||||||
| Net loans | 1,444,629 | 1,446,165 | 1,458,071 | 1,468,320 | 1,456,888 | ||||||||||
| All other assets | 80,803 | 81,838 | 81,858 | 82,674 | 84,081 | ||||||||||
| Total assets | $ | 1,756,629 | $ | 1,764,629 | $ | 1,738,952 | $ | 1,744,939 | $ | 1,718,819 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| Total deposits | $ | 1,427,059 | $ | 1,438,408 | $ | 1,394,182 | $ | 1,401,797 | $ | 1,380,192 | |||||
| Total borrowed funds | 178,397 | 178,500 | 198,500 | 201,050 | 200,550 | ||||||||||
| Accrued interest payable and other liabilities | 7,872 | 6,647 | 7,568 | 9,190 | 7,387 | ||||||||||
| Total liabilities | 1,613,328 | 1,623,555 | 1,600,250 | 1,612,037 | 1,588,129 | ||||||||||
| Total shareholders' equity | 143,301 | 141,074 | 138,702 | 132,902 | 130,690 | ||||||||||
| Total liabilities and shareholders' equity | $ | 1,756,629 | $ | 1,764,629 | $ | 1,738,952 | $ | 1,744,939 | $ | 1,718,819 | |||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | |||||||||||||
| Variance | Variance | |||||||||||||
| Amount | % | Amount | % | |||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | (3,759 | ) | (2.84 | )% | $ | 69,409 | 117.28 | % | |||||
| Total investment securities | (3,043 | ) | (2.95 | )% | (17,396 | ) | (14.80 | )% | ||||||
| Residential mortgage loans held-for-sale, at fair value | 1,373 | 128.68 | % | 1,334 | 120.61 | % | ||||||||
| Gross loans | (1,536 | ) | (0.11 | )% | (12,359 | ) | (0.84 | )% | ||||||
| Less allowance for credit losses | — | — | % | (100 | ) | (0.65 | )% | |||||||
| Net loans | (1,536 | ) | (0.11 | )% | (12,259 | ) | (0.84 | )% | ||||||
| All other assets | (1,035 | ) | (1.26 | )% | (3,278 | ) | (3.90 | )% | ||||||
| Total assets | $ | (8,000 | ) | (0.45 | )% | $ | 37,810 | 2.20 | % | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Total deposits | $ | (11,349 | ) | (0.79 | )% | $ | 46,867 | 3.40 | % | |||||
| Total borrowed funds | (103 | ) | (0.06 | )% | (22,153 | ) | (11.05 | )% | ||||||
| Accrued interest payable and other liabilities | 1,225 | 18.43 | % | 485 | 6.57 | % | ||||||||
| Total liabilities | (10,227 | ) | (0.63 | )% | 25,199 | 1.59 | % | |||||||
| Total shareholders' equity | 2,227 | 1.58 | % | 12,611 | 9.65 | % | ||||||||
| Total liabilities and shareholders' equity | $ | (8,000 | ) | (0.45 | )% | $ | 37,810 | 2.20 | % | |||||
Cash and due from banks
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||
| Cash and due from banks | ||||||||||||||||||
| Noninterest bearing | $ | 35,437 | $ | 26,128 | $ | 29,997 | $ | 35,121 | $ | 33,028 | ||||||||
| Interest bearing | 93,153 | 106,221 | 60,664 | 48,244 | 26,153 | |||||||||||||
| Total | $ | 128,590 | $ | 132,349 | $ | 90,661 | $ | 83,365 | $ | 59,181 | ||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | |||||||||||||||||
| Variance | Variance | |||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||
| Cash and due from banks | ||||||||||||||||||
| Noninterest bearing | $ | 9,309 | 35.63 | % | $ | 2,409 | 7.29 | % | ||||||||||
| Interest bearing | (13,068 | ) | (12.30 | )% | 67,000 | 256.18 | % | |||||||||||
| Total | $ | (3,759 | ) | (2.84 | )% | $ | 69,409 | 117.28 | % | |||||||||
Cash and due from banks fluctuates from period to period based on loan demand and variances in deposit account balances.
Primary and secondary liquidity sources
The following table outlines our primary and secondary sources of liquidity as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Cash and cash equivalents | $ | 128,590 | $ | 132,349 | $ | 90,661 | $ | 83,365 | $ | 59,181 | |||||
| Fair value of unpledged investment securities | 74,775 | 73,680 | 80,247 | 82,103 | 82,041 | ||||||||||
| FHLB borrowing availability | 190,000 | 190,000 | 170,000 | 170,000 | 170,000 | ||||||||||
| Unsecured lines of credit | 23,000 | 23,000 | 20,000 | 20,000 | 20,000 | ||||||||||
| Funds available through the Fed Discount Window | 106 | 107 | 111 | 110 | 119 | ||||||||||
| Parent company line of credit | 11,000 | 3,500 | 3,500 | 950 | 1,450 | ||||||||||
| Total liquidity sources | $ | 427,471 | $ | 422,636 | $ | 364,519 | $ | 356,528 | $ | 332,791 | |||||
The increase in cash and cash equivalents as of June 30, 2024 was due to an increase in total deposits (see "Total deposits" below). The increase in FHLB borrowing availability during the first quarter of 2024 was due to less utilization of FHLB advances as loan growth has moderated in recent periods.
In addition to the above liquidity sources, we also have the option of utilizing wholesale funding sources, such as brokered NOW accounts, brokered time deposits, and internet time deposits. Although wholesale funding sources are typically more expensive than core deposits and other liquidity sources, they are an integral part of our overall asset and liability management strategy.
Investment securities
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| Available-for-sale | ||||||||||||||||||||
| U.S. Government and federal agency | $ | 20,430 | $ | 20,427 | $ | 22,425 | $ | 23,420 | $ | 24,411 | ||||||||||
| State and municipal | 19,108 | 20,403 | 20,460 | 20,992 | 21,110 | |||||||||||||||
| Mortgage backed residential | 45,808 | 47,505 | 49,076 | 50,786 | 52,704 | |||||||||||||||
| Certificates of deposit | 2,481 | 2,729 | 2,728 | 3,956 | 6,679 | |||||||||||||||
| Collateralized mortgage obligations - agencies | 22,213 | 22,778 | 23,320 | 24,062 | 24,680 | |||||||||||||||
| Unrealized gain/(loss) on available-for-sale securities | (12,179 | ) | (13,027 | ) | (12,760 | ) | (15,958 | ) | (14,536 | ) | ||||||||||
| Total available-for-sale | 97,861 | 100,815 | 105,249 | 107,258 | 115,048 | |||||||||||||||
| Held-to-maturity state and municipal | 791 | 877 | 878 | 879 | 1,081 | |||||||||||||||
| Equity securities | 1,515 | 1,518 | 1,488 | 1,406 | 1,434 | |||||||||||||||
| Total investment securities | $ | 100,167 | $ | 103,210 | $ | 107,615 | $ | 109,543 | $ | 117,563 | ||||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | |||||||||||||||||||
| Variance | Variance | |||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||
| Available-for-sale | ||||||||||||||||||||
| U.S. Government and federal agency | 3 | 0.01 | % | $ | (3,981 | ) | (16.31 | )% | ||||||||||||
| State and municipal | (1,295 | ) | (6.35 | )% | (2,002 | ) | (9.48 | )% | ||||||||||||
| Mortgage backed residential | (1,697 | ) | (3.57 | )% | (6,896 | ) | (13.08 | )% | ||||||||||||
| Certificates of deposit | (248 | ) | (9.09 | )% | (4,198 | ) | (62.85 | )% | ||||||||||||
| Collateralized mortgage obligations - agencies | (565 | ) | (2.48 | )% | (2,467 | ) | (10.00 | )% | ||||||||||||
| Unrealized gain/(loss) on available-for-sale securities | 848 | (6.51 | )% | 2,357 | (16.21 | )% | ||||||||||||||
| Total available-for-sale | (2,954 | ) | (2.93 | )% | (17,187 | ) | (14.94 | )% | ||||||||||||
| Held-to-maturity state and municipal | (86 | ) | (9.81 | )% | (290 | ) | (26.83 | )% | ||||||||||||
| Equity securities | (3 | ) | (0.20 | )% | 81 | 5.65 | % | |||||||||||||
| Total investment securities | $ | (3,043 | ) | (2.95 | )% | $ | (17,396 | ) | (14.80 | )% | ||||||||||
The amortized cost and fair value of AFS investment securities as of June 30, 2024 were as follows:
| Maturing | ||||||||||||||||||
| Due in One Year or Less | After One Year But Within Five Years | After Five Years But Within Ten Years | After Ten Years | Securities with Variable Monthly Payments or Noncontractual Maturities | Total | |||||||||||||
| U.S. Government and federal agency | $ | 7,483 | $ | 12,947 | $ | — | $ | — | $ | — | $ | 20,430 | ||||||
| State and municipal | 1,655 | 15,219 | 1,114 | 1,120 | — | 19,108 | ||||||||||||
| Mortgage backed residential | — | 45,808 | 45,808 | |||||||||||||||
| Certificates of deposit | 2,481 | — | — | — | — | 2,481 | ||||||||||||
| Collateralized mortgage obligations - agencies | — | — | — | — | 22,213 | 22,213 | ||||||||||||
| Total amortized cost | $ | 11,619 | $ | 28,166 | $ | 1,114 | $ | 1,120 | $ | 68,021 | $ | 110,040 | ||||||
| Fair value | $ | 11,206 | $ | 25,863 | $ | 987 | $ | 1,024 | $ | 58,781 | $ | 97,861 | ||||||
The amortized cost and fair value of HTM investment securities as of June 30, 2024 were as follows:
| Maturing | ||||||||||||||||||
| Due in One Year or Less | After One Year But Within Five Years | After Five Years But Within Ten Years | After Ten Years | Securities with Variable Monthly Payments or Noncontractual Maturities | Total | |||||||||||||
| State and municipal | $ | 341 | $ | 295 | $ | 155 | $ | — | $ | — | $ | 791 | ||||||
| Fair value | $ | 338 | $ | 282 | $ | 147 | $ | — | $ | — | $ | 767 | ||||||
Total investment securities have declined in recent periods primarily due to maturities and prepayments. As a result of the current liquidity environment and overall market conditions, we have not replenished maturing securities with new purchases.
Residential mortgage loans held-for-sale, at fair value
Loans HFS represent the fair value of loans that have been committed to be sold to the secondary market, but have not yet been delivered. The level of loans HFS fluctuates based on loan demand as well as the timing of loan deliveries to the secondary market.
Loans and allowance for credit losses
As outlined in the following tables, our loan portfolio has moderated throughout the past 12 months. As a result of current market conditions, we expect minimal loan growth throughout the remainder of 2024. Specifically, our commercial pipeline has declined significantly, and the requests that are being presented are lower dollar balances and often carry an SBA guarantee.
The following tables outline the composition and changes in the loan portfolio as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| Commercial and industrial | $ | 120,331 | $ | 114,772 | $ | 118,089 | $ | 125,330 | $ | 120,985 | ||||||||||
| Commercial real estate | 864,200 | 867,270 | 870,693 | 874,870 | 870,761 | |||||||||||||||
| Total commercial loans | 984,531 | 982,042 | 988,782 | 1,000,200 | 991,746 | |||||||||||||||
| Residential mortgage | 418,403 | 426,762 | 431,836 | 431,740 | 430,065 | |||||||||||||||
| Home equity | 53,133 | 48,568 | 48,380 | 47,069 | 45,689 | |||||||||||||||
| Total residential real estate loans | 471,536 | 475,330 | 480,216 | 478,809 | 475,754 | |||||||||||||||
| Consumer | 3,862 | 4,093 | 4,473 | 4,711 | 4,788 | |||||||||||||||
| Gross loans | 1,459,929 | 1,461,465 | 1,473,471 | 1,483,720 | 1,472,288 | |||||||||||||||
| Allowance for credit losses | (15,300 | ) | (15,300 | ) | (15,400 | ) | (15,400 | ) | (15,400 | ) | ||||||||||
| Loans, net | $ | 1,444,629 | $ | 1,446,165 | $ | 1,458,071 | $ | 1,468,320 | $ | 1,456,888 | ||||||||||
| Memo items: | ||||||||||||||||||||
| Residential mortgage loans serviced for others | $ | 613,854 | $ | 619,160 | $ | 624,765 | $ | 631,697 | $ | 632,018 | ||||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | |||||||||||||||||||
| Variance | Variance | |||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||
| Commercial and industrial | $ | 5,559 | 4.84 | % | $ | (654 | ) | (0.54 | )% | |||||||||||
| Commercial real estate | (3,070 | ) | (0.35 | )% | (6,561 | ) | (0.75 | )% | ||||||||||||
| Total commercial loans | 2,489 | 0.25 | % | (7,215 | ) | (0.73 | )% | |||||||||||||
| Residential mortgage | (8,359 | ) | (1.96 | )% | (11,662 | ) | (2.71 | )% | ||||||||||||
| Home equity | 4,565 | 9.40 | % | 7,444 | 16.29 | % | ||||||||||||||
| Total residential real estate loans | (3,794 | ) | (0.80 | )% | (4,218 | ) | (0.89 | )% | ||||||||||||
| Consumer | (231 | ) | (5.64 | )% | (926 | ) | (19.34 | )% | ||||||||||||
| Gross loans | (1,536 | ) | (0.11 | )% | (12,359 | ) | (0.84 | )% | ||||||||||||
| Allowance for credit losses | — | — | % | 100 | (0.65 | )% | ||||||||||||||
| Loans, net | $ | (1,536 | ) | (0.11 | )% | $ | (12,259 | ) | (0.84 | )% | ||||||||||
| Memo items: | ||||||||||||||||||||
| Residential mortgage loans serviced for others | $ | (5,306 | ) | (0.86 | )% | $ | (18,164 | ) | (2.87 | )% | ||||||||||
The following table presents historical loan balances by portfolio segment as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Loans collectively evaluated | |||||||||||||||
| Commercial and industrial | $ | 113,254 | $ | 112,542 | $ | 115,665 | $ | 124,860 | $ | 120,854 | |||||
| Commercial real estate | 864,026 | 867,270 | 870,524 | 874,701 | 870,580 | ||||||||||
| Residential mortgage | 416,130 | 423,881 | 429,109 | 428,927 | 428,147 | ||||||||||
| Home equity | 53,056 | 48,388 | 48,136 | 46,898 | 45,535 | ||||||||||
| Consumer | 3,862 | 4,093 | 4,473 | 4,711 | 4,788 | ||||||||||
| Subtotal | 1,450,328 | 1,456,174 | 1,467,907 | 1,480,097 | 1,469,904 | ||||||||||
| Loans individually evaluated | |||||||||||||||
| Commercial and industrial | 7,077 | 2,230 | 2,424 | 470 | 131 | ||||||||||
| Commercial real estate | 174 | — | 169 | 169 | 181 | ||||||||||
| Residential mortgage | 2,273 | 2,881 | 2,727 | 2,813 | 1,918 | ||||||||||
| Home equity | 77 | 180 | 244 | 171 | 154 | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Subtotal | 9,601 | 5,291 | 5,564 | 3,623 | 2,384 | ||||||||||
| Gross Loans | $ | 1,459,929 | $ | 1,461,465 | $ | 1,473,471 | $ | 1,483,720 | $ | 1,472,288 | |||||
The following table presents historical allowance for credit losses allocations by portfolio segment as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Allowance for credit losses for collectively evaluated loans | |||||||||||||||
| Commercial and industrial | $ | 1,434 | $ | 1,300 | $ | 1,407 | $ | 1,362 | $ | 1,488 | |||||
| Commercial real estate | 8,903 | 8,359 | 8,467 | 8,703 | 8,991 | ||||||||||
| Residential mortgage | 4,133 | 4,202 | 4,409 | 4,439 | 4,453 | ||||||||||
| Home equity | 327 | 305 | 321 | 315 | 325 | ||||||||||
| Consumer | 80 | 38 | 44 | 36 | 40 | ||||||||||
| Unallocated | — | 670 | 355 | 294 | 49 | ||||||||||
| Subtotal | 14,877 | 14,874 | 15,003 | 15,149 | 15,346 | ||||||||||
| Allowance for credit losses for individually evaluated loans | |||||||||||||||
| Commercial and industrial | 423 | 423 | 363 | 248 | 15 | ||||||||||
| Commercial real estate | — | — | — | — | — | ||||||||||
| Residential mortgage | — | 3 | 34 | 3 | 39 | ||||||||||
| Home equity | — | — | — | — | — | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Unallocated | — | — | — | — | — | ||||||||||
| Subtotal | 423 | 426 | 397 | 251 | 54 | ||||||||||
| Allowance for credit losses | $ | 15,300 | $ | 15,300 | $ | 15,400 | $ | 15,400 | $ | 15,400 | |||||
| Commercial and industrial | $ | 1,857 | $ | 1,723 | $ | 1,770 | $ | 1,610 | $ | 1,503 | |||||
| Commercial real estate | 8,903 | 8,359 | 8,467 | 8,703 | 8,991 | ||||||||||
| Residential mortgage | 4,133 | 4,205 | 4,443 | 4,442 | 4,492 | ||||||||||
| Home equity | 327 | 305 | 321 | 315 | 325 | ||||||||||
| Consumer | 80 | 38 | 44 | 36 | 40 | ||||||||||
| Unallocated | — | 670 | 355 | 294 | 49 | ||||||||||
| Allowance for credit losses | $ | 15,300 | $ | 15,300 | $ | 15,400 | $ | 15,400 | $ | 15,400 | |||||
Loan concentration analysis
As a result of current economic conditions, there continues to be a heightened focus in the financial industry for non-owner occupied commercial real estate loans, most specifically retail and office space industries. While we continue to monitor various industries that have been impacted by the pandemic, we also continue to monitor the effects of inflation, supply chain disruption, rising interest rates, and office space usage associated with an increased remote workforce. The overall credit quality indicators of non-owner occupied commercial real estate loan portfolio have remained strong. Performance is based on debt service coverage ratio, loan to value ratio and payment trends. As of June 30, 2024, there were no delinquencies in the non-owner occupied commercial real estate loan portfolio. We expect the non-owner occupied commercial real estate loan portfolio to experience insignificant growth, if any, in future periods.
We have exposure in our loan portfolio to Rite Aid in the net lease and retail strip center non-owner occupied commercial real estate pools. During the fourth quarter of 2023, Rite Aid, which operates over 2,000 retail pharmacies across 17 states, has filed for Chapter 11 bankruptcy protection. Exposure in the net lease pool whereas Rite Aid is a single tenant consists of five loans totaling
With the ongoing pressures on the office sector due to remote work capabilities and less required office space, we continue to monitor the office pool more closely for potential deterioration. It is not expected that there will be much, if any, impact on portfolio performance in this pool in the near future due to existing lease terms, tenant mix, office size, and strong underwriting at origination. Due to current economic uncertainty and the pressures noted above, it is unlikely that we will seek new loan originations in the non-owner occupied office pool in 2024.
Below is a description of each industry pool within the non-owner occupied commercial real estate loan portfolio:
Net lease: Loans in this pool represent national credit tenants (or franchisees of the same) or large regional tenants with excellent credit. These loans are typically single tenant net lease credits with strong debt service coverage ratios and lease terms that extend beyond the maturity of the loan.
Retail strip centers: Loans in this pool represent loans collateralized by retail strip centers. The tenant base within this pool consists primarily of retail space whose average lease periods run between one and ten years. Larger strip centers are usually anchored by a national or regional tenant. Guarantors in this category typically have large liquid reserves.
Office: Loans in this pool represent loans collateralized by non-owner occupied office buildings. The tenant base includes legal and other professional services whose average lease periods run from three to fifteen years.
Special use: Loans in this pool represent loans collateralized by special use buildings, which include hotels, motels, assisted living and nursing homes that are not classified as construction or SBA loans.
Industrial: Loans in this pool represent investment properties used for manufacturing and production.
Medical office: Loans in this pool represent loans collateralized by non-owner occupied medical office buildings. The tenant base includes medical services whose average lease periods run from three to fifteen years.
Self storage: Loans in this pool represent self storage buildings. Loan terms are generally five years or less and the lease terms of the units are typically on a month-to-month basis.
Mixed use: Loans in this pool represent loans collateralized by mixed use real estate. The tenant base within this pool consists primarily of office-retail, office-residential or retail-residential space. The properties are most often purchased by individuals for investment purposes.
Retail: Loans in this pool represent loans collateralized by single tenant retail buildings whose average lease periods run over five years.
The following tables present the composition of current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| Net lease | $ | 141,064 | $ | 147,103 | $ | 149,056 | $ | 160,077 | $ | 159,199 | |||||||||
| Retail strip centers | 106,631 | 107,834 | 98,588 | 96,567 | 96,310 | ||||||||||||||
| Office | 62,237 | 61,657 | 61,822 | 62,959 | 62,062 | ||||||||||||||
| Special use | 71,006 | 58,278 | 58,710 | 57,612 | 57,978 | ||||||||||||||
| Industrial | 23,107 | 22,575 | 28,380 | 28,906 | 28,661 | ||||||||||||||
| Medical office | 24,818 | 25,380 | 25,842 | 28,591 | 28,752 | ||||||||||||||
| Self storage | 32,502 | 25,660 | 23,455 | 21,993 | 22,169 | ||||||||||||||
| Mixed use | 16,980 | 17,174 | 17,335 | 19,833 | 19,412 | ||||||||||||||
| Retail | 17,191 | 12,533 | 12,981 | 14,115 | 14,998 | ||||||||||||||
| Total non-owner occupied commercial real estate loans | $ | 495,536 | $ | 478,194 | $ | 476,169 | $ | 490,653 | $ | 489,541 | |||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | ||||||||||||||||||
| Variance | Variance | ||||||||||||||||||
| Amount | % | Amount | % | ||||||||||||||||
| Net lease | $ | (6,039 | ) | (4.11 | )% | $ | (18,135 | ) | (11.39 | )% | |||||||||
| Retail strip centers | (1,203 | ) | (1.12 | )% | 10,321 | 10.72 | % | ||||||||||||
| Office | 580 | 0.94 | % | 175 | 0.28 | % | |||||||||||||
| Special use | 12,728 | 21.84 | % | 13,028 | 22.47 | % | |||||||||||||
| Industrial | 532 | 2.36 | % | (5,554 | ) | (19.38 | )% | ||||||||||||
| Medical office | (562 | ) | (2.21 | )% | (3,934 | ) | (13.68 | )% | |||||||||||
| Self storage | 6,842 | 26.66 | % | 10,333 | 46.61 | % | |||||||||||||
| Mixed use | (194 | ) | (1.13 | )% | (2,432 | ) | (12.53 | )% | |||||||||||
| Retail | 4,658 | 37.17 | % | 2,193 | 14.62 | % | |||||||||||||
| Total non-owner occupied commercial real estate loans | $ | 17,342 | 3.63 | % | $ | 5,995 | 1.22 | % | |||||||||||
The following table presents the average loan size of current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Net lease | $ | 1,291 | $ | 1,311 | $ | 1,316 | $ | 1,300 | $ | 1,292 | |||||
| Retail strip centers | 2,197 | 2,231 | 2,135 | 2,115 | 2,081 | ||||||||||
| Office | 1,363 | 1,296 | 1,297 | 1,294 | 1,332 | ||||||||||
| Special use | 2,546 | 2,064 | 2,079 | 2,134 | 2,342 | ||||||||||
| Industrial | 925 | 941 | 1,092 | 1,072 | 1,025 | ||||||||||
| Medical office | 1,128 | 1,103 | 1,078 | 1,145 | 1,159 | ||||||||||
| Self storage | 1,926 | 1,509 | 1,380 | 1,692 | 1,583 | ||||||||||
| Mixed use | 1,334 | 1,321 | 1,333 | 1,240 | 1,294 | ||||||||||
| Retail | 513 | 447 | 461 | 429 | 450 | ||||||||||
| Total non-owner occupied commercial real estate loans | $ | 1,448 | $ | 1,392 | $ | 1,379 | $ | 1,362 | $ | 1,366 | |||||
The following table presents current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool as a percentage of gross loans:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Net lease | 9.66 | % | 10.07 | % | 10.12 | % | 10.79 | % | 10.81 | % | |||||
| Retail strip centers | 7.30 | % | 7.38 | % | 6.69 | % | 6.51 | % | 6.54 | % | |||||
| Office | 4.26 | % | 4.22 | % | 4.20 | % | 4.24 | % | 4.22 | % | |||||
| Special use | 4.86 | % | 3.99 | % | 3.98 | % | 3.88 | % | 3.94 | % | |||||
| Industrial | 1.58 | % | 1.54 | % | 1.93 | % | 1.95 | % | 1.95 | % | |||||
| Medical office | 1.70 | % | 1.74 | % | 1.75 | % | 1.93 | % | 1.95 | % | |||||
| Self storage | 2.23 | % | 1.76 | % | 1.59 | % | 1.48 | % | 1.51 | % | |||||
| Mixed use | 1.16 | % | 1.18 | % | 1.18 | % | 1.34 | % | 1.32 | % | |||||
| Retail | 1.18 | % | 0.86 | % | 0.88 | % | 0.95 | % | 1.02 | % | |||||
| Total non-owner occupied commercial real estate loans to gross loans | 33.93 | % | 32.74 | % | 32.32 | % | 33.07 | % | 33.26 | % | |||||
Asset quality
The following table summarizes our current, past due, and nonaccrual loans as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Accruing interest | |||||||||||||||
| Current | $ | 1,445,780 | $ | 1,451,432 | $ | 1,463,668 | $ | 1,477,386 | $ | 1,466,354 | |||||
| Past due 30-89 days | 4,534 | 4,344 | 4,239 | 2,711 | 3,550 | ||||||||||
| Past due 90 days or more | 14 | 398 | — | — | — | ||||||||||
| Total accruing interest | 1,450,328 | 1,456,174 | 1,467,907 | 1,480,097 | 1,469,904 | ||||||||||
| Nonaccrual | 9,601 | 5,291 | 5,564 | 3,623 | 2,384 | ||||||||||
| Total loans | $ | 1,459,929 | $ | 1,461,465 | $ | 1,473,471 | $ | 1,483,720 | $ | 1,472,288 | |||||
| Total loans past due and in nonaccrual status | $ | 14,149 | $ | 10,033 | $ | 9,803 | $ | 6,334 | $ | 5,934 | |||||
The following table summarizes the our nonperforming assets as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Nonaccrual loans | $ | 9,601 | $ | 5,291 | $ | 5,564 | $ | 3,623 | $ | 2,384 | |||||
| Accruing loans past due 90 days or more | 14 | 398 | — | — | — | ||||||||||
| Total nonperforming loans | 9,615 | 5,689 | 5,564 | 3,623 | 2,384 | ||||||||||
| Other real estate owned | 293 | 345 | 597 | 345 | 345 | ||||||||||
| Total nonperforming assets | $ | 9,908 | $ | 6,034 | $ | 6,161 | $ | 3,968 | $ | 2,729 | |||||
The following table summarizes our charge-offs, recoveries and provision for loan losses as of, and for the three-month periods ended:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||
| Total charge-offs | $ | 814 | $ | 86 | $ | 110 | $ | 16 | $ | 41 | ||||||||
| Total recoveries | 18 | 29 | 300 | 455 | 16 | |||||||||||||
| Net charge-offs (recoveries) | $ | 796 | $ | 57 | $ | (190 | ) | $ | (439 | ) | $ | 25 | ||||||
| Provision for loan losses | $ | 796 | $ | (43 | ) | $ | (190 | ) | $ | (309 | ) | $ | 205 | |||||
During the second quarter of 2024, we charged down one commercial loan by
The following table summarizes the our primary asset quality measures as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Nonperforming loans to gross loans | 0.66 | % | 0.39 | % | 0.38 | % | 0.24 | % | 0.16 | % | |||||
| Nonperforming assets to total assets | 0.56 | % | 0.34 | % | 0.35 | % | 0.23 | % | 0.16 | % | |||||
| Allowance for credit losses to gross loans | 1.05 | % | 1.05 | % | 1.05 | % | 1.04 | % | 1.05 | % | |||||
| Net charge-offs (recoveries) to QTD average gross loans | 0.05 | % | — | % | (0.01 | )% | (0.03 | )% | — | % | |||||
| Credit loss expense (reversal) to QTD average gross loans | 0.05 | % | — | % | (0.01 | )% | (0.02 | )% | 0.01 | % | |||||
The following table summarizes the average loan size as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||
| Commercial and industrial | $ | 343 | $ | 326 | $ | 334 | $ | 353 | $ | 346 | |||||
| Commercial real estate | 906 | 900 | 905 | 896 | 885 | ||||||||||
| Total commercial loans | 754 | 746 | 752 | 751 | 743 | ||||||||||
| Residential mortgage | 234 | 234 | 236 | 234 | 234 | ||||||||||
| Home equity | 56 | 53 | 53 | 52 | 51 | ||||||||||
| Total residential real estate loans | 173 | 174 | 175 | 174 | 174 | ||||||||||
| Consumer | 13 | 13 | 13 | 12 | 12 | ||||||||||
| Gross loans | $ | 337 | $ | 336 | $ | 337 | $ | 335 | $ | 333 | |||||
All other assets
The following tables outline the composition and changes in other assets as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| Premises and equipment, net | $ | 13,661 | $ | 14,111 | $ | 14,561 | $ | 14,928 | $ | 15,345 | |||||||||
| Federal Home Loan Bank stock | 9,179 | 9,179 | 9,179 | 9,179 | 11,498 | ||||||||||||||
| Corporate owned life insurance | 27,877 | 27,670 | 27,466 | 27,274 | 27,047 | ||||||||||||||
| Mortgage servicing rights | 8,636 | 8,680 | 8,776 | 8,884 | 8,765 | ||||||||||||||
| Accrued interest receivable | 4,747 | 4,869 | 4,472 | 4,485 | 3,992 | ||||||||||||||
| Goodwill | 8,853 | 8,853 | 8,853 | 8,853 | 8,853 | ||||||||||||||
| Other assets | |||||||||||||||||||
| Core deposit intangibles | 444 | 488 | 533 | 609 | 684 | ||||||||||||||
| Right-of-use assets | 1,142 | 1,237 | 1,333 | 1,426 | 1,510 | ||||||||||||||
| Other real estate owned | 293 | 345 | 597 | 345 | 345 | ||||||||||||||
| Other | 5,971 | 6,406 | 6,088 | 6,691 | 6,042 | ||||||||||||||
| Total | 7,850 | 8,476 | 8,551 | 9,071 | 8,581 | ||||||||||||||
| All other assets | $ | 80,803 | $ | 81,838 | $ | 81,858 | $ | 82,674 | $ | 84,081 | |||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | ||||||||||||||||||
| Variance | Variance | ||||||||||||||||||
| Amount | % | Amount | % | ||||||||||||||||
| Premises and equipment, net | $ | (450 | ) | (3.19 | )% | $ | (1,684 | ) | (10.97 | )% | |||||||||
| Federal Home Loan Bank stock | — | — | % | (2,319 | ) | (20.17 | )% | ||||||||||||
| Corporate owned life insurance | 207 | 0.75 | % | 830 | 3.07 | % | |||||||||||||
| Mortgage servicing rights | (44 | ) | (0.51 | )% | (129 | ) | (1.47 | )% | |||||||||||
| Accrued interest receivable | (122 | ) | (2.51 | )% | 755 | 18.91 | % | ||||||||||||
| Goodwill | — | — | % | — | — | % | |||||||||||||
| Other assets | |||||||||||||||||||
| Core deposit intangibles | (44 | ) | (9.02 | )% | (240 | ) | (35.09 | )% | |||||||||||
| Right-of-use assets | (95 | ) | (7.68 | )% | (368 | ) | (24.37 | )% | |||||||||||
| Other real estate owned | (52 | ) | (15.07 | )% | (52 | ) | (15.07 | )% | |||||||||||
| Other | (435 | ) | (6.79 | )% | (71 | ) | (1.18 | )% | |||||||||||
| Total | (626 | ) | (7.39 | )% | (731 | ) | (8.52 | )% | |||||||||||
| All other assets | $ | (1,035 | ) | (1.26 | )% | $ | (3,278 | ) | (3.90 | )% | |||||||||
The annual decrease in premises and equipment was due to depreciation on our existing premises and equipment.
The annual decrease in FHLB stock was due to our participation in a voluntary repurchase program offered by the FHLB. We anticipate our FHLB stock balance will remain consistent in future periods.
Total deposits
The following tables outline the composition and changes in the deposit portfolio as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| Noninterest bearing demand | $ | 404,521 | $ | 401,518 | $ | 423,019 | $ | 425,820 | $ | 457,204 | |||||||||
| Interest bearing | |||||||||||||||||||
| Savings | 262,538 | 274,922 | 273,302 | 293,310 | 301,872 | ||||||||||||||
| Money market demand | 230,304 | 229,584 | 223,827 | 225,138 | 221,686 | ||||||||||||||
| NOW | |||||||||||||||||||
| Retail NOW | 205,383 | 203,614 | 178,892 | 198,271 | 161,765 | ||||||||||||||
| Brokered NOW | — | — | — | — | — | ||||||||||||||
| Total NOW Accounts | 205,383 | 203,614 | 178,892 | 198,271 | 161,765 | ||||||||||||||
| Time deposits | |||||||||||||||||||
| Other time deposits | 264,009 | 268,466 | 234,838 | 198,509 | 176,280 | ||||||||||||||
| Brokered time deposits | 60,304 | 60,304 | 60,304 | 60,251 | 60,395 | ||||||||||||||
| Internet time deposits | — | — | — | 498 | 990 | ||||||||||||||
| Total time deposits | 324,313 | 328,770 | 295,142 | 259,258 | 237,665 | ||||||||||||||
| Total deposits | $ | 1,427,059 | $ | 1,438,408 | $ | 1,394,182 | $ | 1,401,797 | $ | 1,380,192 | |||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | ||||||||||||||||||
| Variance | Variance | ||||||||||||||||||
| Amount | % | Amount | % | ||||||||||||||||
| Noninterest bearing demand | $ | 3,003 | 0.75 | % | $ | (52,683 | ) | (11.52 | )% | ||||||||||
| Interest bearing | |||||||||||||||||||
| Savings | (12,384 | ) | (4.50 | )% | (39,334 | ) | (13.03 | )% | |||||||||||
| Money market demand | 720 | 0.31 | % | 8,618 | 3.89 | % | |||||||||||||
| NOW | |||||||||||||||||||
| Retail NOW | 1,769 | 0.87 | % | 43,618 | 26.96 | % | |||||||||||||
| Brokered NOW | — | — | % | — | — | % | |||||||||||||
| Total NOW Accounts | 1,769 | 0.87 | % | 43,618 | 26.96 | % | |||||||||||||
| Time deposits | |||||||||||||||||||
| Other time deposits | (4,457 | ) | (1.66 | )% | 87,729 | 49.77 | % | ||||||||||||
| Brokered time deposits | — | — | % | (91 | ) | (0.15 | )% | ||||||||||||
| Internet time deposits | — | — | % | (990 | ) | (100.00 | )% | ||||||||||||
| Total time deposits | (4,457 | ) | (1.36 | )% | 86,648 | 36.46 | % | ||||||||||||
| Total deposits | $ | (11,349 | ) | (0.79 | )% | $ | 46,867 | 3.40 | % | ||||||||||
Beginning in March 2022, the FOMC began raising its target federal funds rate in order to combat rising inflation. Since then, the FOMC has raised its target federal funds rate 11 times, from a target range of 0.00
Total borrowed funds
The following tables outline the composition and changes in borrowed funds as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| Federal Home Loan Bank borrowings | $ | 160,000 | $ | 160,000 | $ | 180,000 | $ | 180,000 | $ | 180,000 | |||||||||
| Subordinated debentures | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | ||||||||||||||
| Other borrowings | 4,397 | 4,500 | 4,500 | 7,050 | 6,550 | ||||||||||||||
| Total borrowed funds | $ | 178,397 | $ | 178,500 | $ | 198,500 | $ | 201,050 | $ | 200,550 | |||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | ||||||||||||||||||
| Variance | Variance | ||||||||||||||||||
| Amount | % | Amount | % | ||||||||||||||||
| Federal Home Loan Bank borrowings | $ | — | — | % | $ | (20,000 | ) | (11.11 | )% | ||||||||||
| Subordinated debentures | — | — | % | — | — | % | |||||||||||||
| Other borrowings | (103 | ) | (2.29 | )% | (2,153 | ) | (32.87 | )% | |||||||||||
| Total borrowed funds | $ | (103 | ) | (0.06 | )% | $ | (22,153 | ) | (11.05 | )% | |||||||||
We utilize a mix of borrowed funds and organic deposit growth to fund loan demand. As loan growth has slowed in recent periods, our reliance on FHLB advances has declined.
Wholesale funding sources
Although we have been successful at growing market deposits, we utilize wholesale funding sources when necessary to fill gaps when asset growth outpaces deposit growth. Our wholesale funding sources include Federal Home Loan Bank borrowings, correspondent Fed Funds lines and brokered deposits. Although wholesale funding sources are typically more expensive than core deposits, they are an integral part of our funding.
The following tables outline the composition and changes in wholesale funding sources as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| Federal Home Loan Bank borrowings | $ | 160,000 | $ | 160,000 | $ | 180,000 | $ | 180,000 | $ | 180,000 | |||||||||
| Subordinated debentures | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | ||||||||||||||
| Other borrowings | 4,397 | 4,500 | 4,500 | 7,050 | 6,550 | ||||||||||||||
| Brokered NOW accounts | — | — | — | — | — | ||||||||||||||
| Brokered time deposits | 60,304 | 60,304 | 60,304 | 60,251 | 60,395 | ||||||||||||||
| Internet time deposits | — | — | — | 498 | 990 | ||||||||||||||
| Total wholesale funds | $ | 238,701 | $ | 238,804 | $ | 258,804 | $ | 261,799 | $ | 261,935 | |||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | ||||||||||||||||||
| Variance | Variance | ||||||||||||||||||
| Amount | % | Amount | % | ||||||||||||||||
| Federal Home Loan Bank borrowings | $ | — | — | % | (20,000 | ) | (11.11 | )% | |||||||||||
| Subordinated debentures | — | — | % | — | — | % | |||||||||||||
| Other borrowings | (103 | ) | (2.29 | )% | (2,153 | ) | (32.87 | )% | |||||||||||
| Brokered NOW accounts | — | N/A | — | N/A | |||||||||||||||
| Brokered time deposits | — | — | % | (91 | ) | (0.15 | )% | ||||||||||||
| Internet time deposits | — | N/A | (990 | ) | (100.00 | )% | |||||||||||||
| Total wholesale funds | $ | (103 | ) | (0.04 | )% | $ | (23,234 | ) | (8.87 | )% | |||||||||
Accrued interest payable and other liabilities
Accrued interest payable and other liabilities includes accrued interest payable, federal income taxes payable, deferred federal income taxes payable, and all other liabilities (none of which are individually significant).
Total shareholders' equity
We are considered a “well-capitalized” institution, as our capital ratios exceed the minimum designated standards necessary in accordance with Basel III guidelines. As of June 30, 2024, the Bank's total capital ratio was
The following tables outline the composition and changes in shareholders' equity as of:
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||||||||
| Common stock | $ | 74,690 | $ | 74,555 | $ | 74,230 | $ | 74,118 | $ | 73,993 | ||||||||||
| Retained earnings | 78,094 | 76,607 | 74,309 | 70,972 | 67,643 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (9,483 | ) | (10,088 | ) | (9,837 | ) | (12,188 | ) | (10,946 | ) | ||||||||||
| Total shareholders' equity | $ | 143,301 | $ | 141,074 | $ | 138,702 | $ | 132,902 | $ | 130,690 | ||||||||||
| 6/30/2024 vs 3/31/2024 | 6/30/2024 vs 6/30/2023 | |||||||||||||||||||
| Variance | Variance | |||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||
| Common stock | $ | 135 | 0.18 | % | $ | 697 | 0.94 | % | ||||||||||||
| Retained earnings | 1,487 | 1.94 | % | 10,451 | 15.45 | % | ||||||||||||||
| Accumulated other comprehensive (loss) income | 605 | (6.00 | )% | 1,463 | (13.37 | )% | ||||||||||||||
| Total shareholders' equity | $ | 2,227 | 1.58 | % | $ | 12,611 | 9.65 | % | ||||||||||||
The Board of Directors has authorized the repurchase of up to
Stock Performance
The following table compares the cumulative total shareholder return on our common stock for the year-to-date, 1 year, 3 year, and 5 year periods ended June 30, 2024. The National OTC Peer Group was developed by selecting all OTC traded bank holding companies with total assets between
| # in Peer Group | YTD | 1 Year | 3 Year | 5 Year | |||||||||
| Fentura Financial, Inc. (OTCQX:FETM) | (16.54 | )% | 18.38 | % | (9.19 | )% | 17.90 | % | |||||
| National OTC Peers | 43 | (1.01 | )% | (3.49 | )% | 2.11 | % | 8.44 | % | ||||
| Fentura Ranking out of 44 | 42 | 6 | 23 | 14 | |||||||||
| Midwest / Great Lakes OTC Peers | 17 | (1.97 | )% | (5.16 | )% | (1.63 | )% | 1.35 | % | ||||
| Fentura Ranking out of 18 | 16 | 1 | 8 | 4 | |||||||||
Abbreviations and Acronyms
| ABA: American Bankers Association | FTE: Fully taxable equivalent |
| ACH: Automated Clearing House | GAAP: Generally Accepted Accounting Principles |
| ACL: Allowance for credit losses | HFS: Held-for-sale |
| AFS: Available-for-sale | HTM: Held-to-maturity |
| AIR: Accrued interest receivable | HFS: Held-for-sale |
| AOCI: Accumulated other comprehensive income | HTM: Held-to-maturity |
| ARRC: Alternative Reference Rates Committee | IRA: Individual retirement account |
| ASC: Accounting Standards Codification | ITM: Interactive Teller Machine |
| ASU: Accounting Standards Update | LIBOR: London Interbank Offered Rate |
| ATM: Automated teller machine | MSR: Mortgage servicing rights |
| CDI: Core deposit intangible | N/M: Not meaningful |
| CET1: Common equity tier 1 | NASDAQ: National Association of Securities Dealers Automated Quotations |
| COLI: Corporate owned life insurance | NOW: Negotiable order of withdrawal |
| DRIP: Dividend Reinvestment Plan | NSF: Non-sufficient funds |
| EPS: Earnings Per Common Share | OCI: Other comprehensive income |
| ESOP: Employee Stock Ownership Plan | OIS: Overnight Index Swap |
| FASB: Financial Accounting Standards Board | OREO: Other real estate owned |
| FDIC: Federal Deposit Insurance Corporation | OTTI: Other-than-temporary impairment |
| FHLB: Federal Home Loan Bank | QTD: Quarter-to-date |
| FHLLC: Fentura Holdings LLC | SAB: Staff Accounting Bulletin |
| FHLMC: Federal Home Loan Mortgage Corporation | SBA: U.S. Small Business Administration |
| FNMA: Federal National Mortgage Association | SEC: Securities and Exchange Commission |
| FOMC: Federal Open Market Committee | SERP: Supplemental Executive Retirement Plan |
| FRB: Federal Reserve Bank | SOFR: Secured Overnight Funding Rate |
| FSB: Farmers State Bank of Munith | TLM: Troubled loan modifications |
About Fentura Financial, Inc. and The State Bank
Fentura Financial, Inc. is the holding company for The State Bank. It was formed in 1987 and is traded on the OTCQX exchange under the symbol FETM, and has been recognized as one of the Top 50 performing stocks on that exchange.
The State Bank is a commercial, retail and trust bank headquartered in Fenton, Michigan. It currently operates 20 full-service offices and one loan production center serving Bay, Genesee, Ingham, Jackson, Livingston, Oakland, Saginaw, and Shiawassee counties. The State Bank believes in the potential of banking to help create better lives, better businesses, and better communities, and works to achieve this through its full array of consumer, mortgage, SBA, commercial and wealth management banking and advisory services, together with philanthropic and volunteer support to organizations and groups within the communities it serves. More information can be found at www.thestatebank.com or www.fentura.com.
Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in earning assets and net income. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
| Contacts: | Ronald L. Justice | Aaron D. Wirsing | ||
| President & CEO | Chief Financial Officer | |||
| Fentura Financial, Inc. | Fentura Financial, Inc. | |||
| 810.714.3902 | 810.714.3925 | |||
| ron.justice@thestatebank.com | aaron.wirsing@thestatebank.com | |||
FAQ
What were Fentura Financial's Q2 2024 net income results?
How did Fentura Financial's total deposits change in the first half of 2024?
What was the year-over-year change in Fentura Financial's tangible book value?
How much did Fentura Financial's borrowed funds decrease in the first half of 2024?
What was Fentura Financial's return on average assets for Q2 2024?
