8-K
ISABELLA BANK CORP (ISBA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 17, 2025
ISABELLA BANK CORPORATION
(Exact name of registrant as specified in its charter)
| Michigan | 000-18415 | 38-2830092 | |||||
|---|---|---|---|---|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | 401 North Main Street | Mt. Pleasant | Michigan | 48858-1649 | |
| --- | --- | --- | --- | ||||
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (989) 772-9471
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-l2) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule l4d-2(b) under the Exchange Act (17 CFR 240.l4d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.l3e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| None | N/A | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☐ |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
On April 17, 2025, Isabella Bank Corporation issued a press release announcing its financial results for the quarter ended March 31, 2025.
A copy of the press release is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 of Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing made by the registrant under the Securities Act of 1933, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release issued April 17, 2025 |
| 104 | Cover page interactive data file - the cover page XBRL tags are embedded within the inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ISABELLA BANK CORPORATION | |||
|---|---|---|---|
| Dated: | April 17, 2025 | By: | /s/ William M. Schaefer |
| William M. Schaefer, CFO |
INDEX TO EXHIBITS
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release issued April 17, 2025 |
| 104 | Cover page interactive data file - the cover page XBRL tags are embedded within the inline XBRL document |
Document
Exhibit 99.1
Isabella Bank Corporation Reports First Quarter 2025 Results
MT. PLEASANT, MICHIGAN — April 17, 2025 — Isabella Bank Corporation (OTCQX: ISBA) (the “Company” or "we") reported first quarter 2025 net income of $3.9 million, or $0.53 per diluted share, compared to $3.1 million, or $0.42 per diluted share in the same quarter of 2024. The non-GAAP measure of core earnings in the first quarter 2025 totaled $4.3 million, or $0.57 per diluted share, compared to $3.1 million, or $0.41 per diluted share for the same quarter of 2024.
FIRST QUARTER 2025 HIGHLIGHTS (compared to first quarter 2024, unless otherwise stated)
•Return on assets (ROA) of 0.77%, up from 0.61%
•Commercial & industrial loan growth of 7%, annualized
•Non-maturity deposit growth of 14%, annualized
•Net interest margin of 3.06%, up from 2.79%
•Annualized net loan recoveries to average loans of 0.02%, compared to net charge-offs of 0.01%
“The Company had a strong first quarter as we expanded net interest margin (NIM), increased fee-based income and continued to improve credit quality,” said Jerome Schwind, Chief Executive Officer. “NIM has continued an upward trend since the first quarter of 2024 because of earning asset repricing and a lower cost of funds.
"In addition, our credit quality remains strong, and we have a successful history of collecting even when loans are charged off. In the first quarter, we recovered a significant amount of contractual interest related to nonperforming loans, which improved NIM by four basis points. Additionally, in the first week of April, we fully recovered a $1.6 million overdraft charge that was incurred in the third quarter of 2024. All loans to the overdrawn customer have been paid in full. Our ability to recover funds is a testament to our disciplined approach to credit quality and the strong relationships that we build in the communities we serve."
Schwind said the company also executed a strategy during the quarter to restructure a large portion of our bank-owned life insurance policies into a higher-yielding separate account. "While some new policies were added and accretive in the first quarter," he said, "the full transition and impact is expected by the third quarter 2025. We also have completed a study of all other components of fee-based income, and revenue enhancements are expected to launch by the end of the third quarter 2025.
“We are pleased with our start to 2025," Schwind added. "Our team is committed to our customers and communities, and we continue to focus on our fee businesses, balance sheet management, and credit performance. These strategic priorities drive all areas of revenue and expense control, expanding both return on assets and return on capital for the long term.”
FINANCIAL CONDITION (March 31, 2025 compared to December 31, 2024, unless otherwise noted)
Total assets were $2.1 billion, up $16.3 million, primarily due to an increase of $38.7 million in interest bearing cash, $19.0 million in gross securities, and $11.0 million increase in bank-owned life insurance (BOLI) assets, offset by a $60.1 million decrease in advances to mortgage brokers.
Available-for-sale (AFS) securities at fair value were $513.0 million, growing $24.0 million at the end of first quarter 2025. The increase was driven by $40.4 million in purchases of collateralized mortgage obligation securities with a weighted-average yield of 4.56%. Amortization and maturities of $21.1 million partially offset the increase from purchases. Net unrealized losses on securities totaled $21.5 million and $26.5 million at the end of the first and
fourth quarters, respectively. Net unrealized losses as a percentage of total AFS securities decreased to 4% from 5% at the end of the fourth quarter of 2024 due to the treasury portfolio rapidly approaching maturity and a decrease in market yields. The par value and corresponding book yields that are estimated to mature or pay off by year include: $54.5 million in principal with a weighted-average book yield of 2.34% over the remainder of 2025; $217.4 million at 1.17% in 2026; and $63.4 million at 1.86% in 2027. Some of these securities amortize so the actual principal paydown may differ from these estimates.
Total loans were $1.4 billion at the end of the first quarter, down $55.8 million mostly due to a $60.1 million decrease in advances to mortgage brokers. However, the decline in this non-core loan product has provided liquidity and the opportunity to refocus on loans that can be recorded on our balance sheet for longer terms and help to mitigate interest rate risk.
Core loans, which excludes advances to mortgage brokers, grew $4.2 million, driven by the commercial real estate (CRE) and commercial and industrial loan portfolios of $4.8 million and $4.3 million, respectively. Loan growth during the first quarter primarily was in the construction, real estate, and hospitality industries. The commercial pipeline is robust, with some anticipated loan closings in the first quarter extended into the second quarter 2025. Residential mortgages increased $6.5 million. Customers are favoring adjustable-rate loans, which are put on the balance sheet rather than sold in the secondary market. Core loan growth during the quarter was offset by a decline in the agricultural and consumer loan portfolios that continue to roll off amid decreasing demand, competition and our adherence to credit quality standards.
The allowance for credit losses decreased $160 thousand to $12.7 million at the end of the first quarter of 2025. The decline mostly reflects improvement in historical loss experience, driven by recoveries from three previously charged-off loans in the quarter totaling $136 thousand, which led to an $88 thousand reduction in the allowance. Nonaccrual loan balances decreased $109 thousand to $173 thousand. Past due and accruing accounts between 30 to 89 days, as a percentage of total loans, was 0.41% compared to 0.40% at the end of fourth quarter 2024.
BOLI assets increased by $11.0 million from December, mostly due to a $10.6 million investment of new policies in a separate account product at the beginning of January. The investment transaction included a surrender of $5.4 million of existing general account policies and redeployment into a separate account BOLI. As part of BOLI restructuring, another $9 million of general account policies will be exchanged for separate account BOLI, which is expected to be completed by the end of third quarter. The separate account BOLI currently yields 5.4%, compared to a weighted-average yield of 2.9% from existing general account policies.
Total deposits were $1.80 billion, increasing $50.8 million, at the end of the first quarter. The growth was driven by the interest-bearing demand, money market, and savings deposits, collectively increasing $60.4 million as we continue to deepen customer relationships. Certificates of Deposit accounts were up $2.6 million, driven by the rate environment.
Tangible book value per share was $22.58 as of March 31, 2025, compared to $21.82. Net unrealized losses on AFS securities reduced tangible book value per share by $2.30 and $2.82 for the respective periods. Share repurchases totaled 45,582 during the first quarter for a value of $1.1 million at an average price of $25.12.
RESULTS OF OPERATIONS (March 31, 2025 to March 31, 2024 quarterly comparison, unless otherwise noted)
NIM was 3.06%, an increase from 2.98% in the fourth quarter 2024 and from 2.79% in the first quarter of 2024. During the first quarter, we recovered the full contractual interest from nonaccruing loans that paid off, which contributed four basis points to NIM. The book yield from securities was 2.20% and 2.25% during the first quarters of 2025 and 2024, respectively. The yield on loans expanded to 5.71% in the first quarter, up from 5.38% in the same quarter of 2024. Excluding loan recoveries, the yield on loans was 5.65%. The expansion in loan yields was a result of higher rates on new loans and variable rate commercial loans that have, and continue to, reprice. At the end of the first quarter, approximately 39% of commercial loans were fixed at rates lower than current market rates, but the majority will contractually reprice to variable rates over the next four years. Cost of interest-bearing liabilities was 2.26%, decreasing from 2.28% in the first quarter of 2024, and 2.38% in the previous quarter, due to reductions to rates in the money market and certificate of deposit products.
The provision for credit losses in the first quarter 2025 was a credit of $107 thousand, which reflects the $160 thousand change in the allowance for credit losses on loans and net recoveries totaling $52 thousand, offset by an increase in the reserve for unfunded commitments. The provision for loan losses in the same period of 2024 was $392 thousand reflecting $265 thousand for specific reserves and $46 thousand in net charge-offs.
Noninterest income was $3.5 million in the first quarter of 2025, the same as in the first quarter of 2024. Wealth management income increased $40 thousand on relatively flat assets under management (AUM) as compared to AUM in the first quarter of 2024. AUM in the first quarter 2025 decreased 0.22% while the S&P 500 declined 4.6% in the same period. Earnings on BOLI policies increased $129 thousand over the prior year quarter due to new investments in a separate account BOLI. Other noninterest income in the first quarter 2025 included a $55 thousand loss on foreclosed assets, compared to a $69 thousand gain in the first quarter 2024.
Noninterest expenses were $13.3 million in the first quarter 2025 compared to $12.7 million in same quarter of 2024. The change mostly was due to higher compensation and benefit expenses totaling $368 thousand, which reflect annual merit increases in 2025 and more medical insurance claims compared to the first quarter of 2024. Professional services included $121 thousand in legal fees related to our previously announced Nasdaq uplisting application.
Income tax expense was $912 thousand, compared to $511 thousand in the first quarter of 2024 and the effective tax rate (ETR) was 19% and 14%, respectively. The ETR in the first quarter 2025 included a one-time expense totaling $166 thousand due to the taxes owed from the lifetime earnings on BOLI policies that were surrendered during the quarter. Excluding the one-time charge, the ETR was 15%, which is higher than the prior year quarter on higher pretax income.
About the Corporation
Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.
For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).
Contact
Lori Peterson, Director of Marketing
Phone: 989-779-6333 Fax: 989-775-5501
Forward-Looking Statements
Information in this release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result", “expect”, “plan”, “believe”, “estimate”, “anticipate”, “strategy”, “trend”, “forecast”, “outlook”, “project”, “intend”, “assume”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, or included in any subsequent filing by the Company with the Securities and Exchange Commission. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.
Non-GAAP Financial Measures
This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. A reconciliation of non-GAAP financial measures to GAAP measures is provided in this release.
| Table Index | Consolidated Financial Schedules (Unaudited) |
|---|---|
| A | Selected Financial Data |
| B | Consolidated Balance Sheets - Quarterly Trend |
| C | Consolidated Statements of Income |
| D | Consolidated Statements of Income - Quarterly Trend |
| E | Average Yields and Costs |
| F | Average Balances |
| G | Asset Quality Analysis |
| H | Consolidated Loan and Deposit Analysis |
| I | Reconciliation of Non-GAAP Financial Measures |
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands except per share amounts and ratios)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | |||||||||||
| PER SHARE | |||||||||||||||
| Basic earnings | $ | 0.53 | $ | 0.54 | $ | 0.44 | $ | 0.47 | $ | 0.42 | |||||
| Diluted earnings | 0.53 | 0.54 | 0.44 | 0.46 | 0.42 | ||||||||||
| Core diluted earnings (1) | 0.57 | 0.52 | 0.61 | 0.46 | 0.41 | ||||||||||
| Dividends | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | ||||||||||
| Book value (2) | 29.10 | 28.32 | 28.63 | 27.06 | 26.80 | ||||||||||
| Tangible book value (2) | 22.58 | 21.82 | 22.14 | 20.60 | 20.35 | ||||||||||
| Market price (2) | 23.59 | 25.99 | 21.21 | 18.20 | 19.40 | ||||||||||
| Common shares outstanding (2) (3) | 7,408,010 | 7,424,893 | 7,438,720 | 7,474,016 | 7,488,101 | ||||||||||
| Average number of diluted common shares outstanding (3) | 7,432,162 | 7,451,718 | 7,473,184 | 7,494,828 | 7,507,739 | ||||||||||
| PERFORMANCE RATIOS | |||||||||||||||
| Return on average total assets | 0.77 | % | 0.76 | % | 0.62 | % | 0.68 | % | 0.61 | % | |||||
| Core return on average total assets (1) | 0.83 | % | 0.74 | % | 0.87 | % | 0.68 | % | 0.60 | % | |||||
| Return on average shareholders' equity | 7.48 | % | 7.47 | % | 6.26 | % | 6.97 | % | 6.19 | % | |||||
| Core return on average shareholders' equity (1) | 8.05 | % | 7.29 | % | 8.70 | % | 6.96 | % | 6.08 | % | |||||
| Return on average tangible shareholders' equity | 9.65 | % | 9.66 | % | 8.15 | % | 9.19 | % | 8.12 | % | |||||
| Core return on average tangible shareholders' equity (1) | 10.40 | % | 9.43 | % | 11.32 | % | 9.17 | % | 7.97 | % | |||||
| Net interest margin yield (fully taxable equivalent) (1) | 3.06 | % | 2.98 | % | 2.96 | % | 2.82 | % | 2.79 | % | |||||
| Efficiency ratio (1) | 72.39 | % | 71.20 | % | 72.30 | % | 73.93 | % | 74.84 | % | |||||
| Gross loan to deposit ratio (2) | 76.07 | % | 81.48 | % | 79.93 | % | 80.22 | % | 77.22 | % | |||||
| Shareholders' equity to total assets (2) | 10.25 | % | 10.08 | % | 10.11 | % | 9.82 | % | 9.75 | % | |||||
| Tangible shareholders' equity to tangible assets (2) | 8.14 | % | 7.95 | % | 8.00 | % | 7.65 | % | 7.58 | % | |||||
| ASSETS UNDER MANAGEMENT | |||||||||||||||
| Wealth assets under management (2) | 656,617 | 658,042 | 679,858 | 647,850 | 660,645 | ||||||||||
| ASSET QUALITY | |||||||||||||||
| Nonaccrual loans (2) | 173 | 282 | 547 | 994 | 1,283 | ||||||||||
| Foreclosed assets (2) | 649 | 544 | 546 | 629 | 579 | ||||||||||
| Net loan charge-offs (recoveries) | (52) | 102 | 1,359 | 393 | 46 | ||||||||||
| Net loan charge-offs (recoveries) to average loans outstanding | 0.00 | % | 0.01 | % | 0.10 | % | 0.03 | % | 0.00 | % | |||||
| Nonperforming loans to gross loans (2) | 0.01 | % | 0.02 | % | 0.04 | % | 0.07 | % | 0.09 | % | |||||
| Nonperforming assets to total assets (2) | 0.04 | % | 0.04 | % | 0.06 | % | 0.08 | % | 0.09 | % | |||||
| Allowance for credit losses to gross loans (2) | 0.93 | % | 0.91 | % | 0.89 | % | 0.95 | % | 0.98 | % | |||||
| CAPITAL RATIOS (2) | |||||||||||||||
| Tier 1 leverage | 8.96 | % | 8.86 | % | 8.77 | % | 8.83 | % | 8.80 | % | |||||
| Common equity tier 1 capital | 12.48 | % | 12.21 | % | 12.08 | % | 12.37 | % | 12.36 | % | |||||
| Tier 1 risk-based capital | 12.48 | % | 12.21 | % | 12.08 | % | 12.37 | % | 12.36 | % | |||||
| Total risk-based capital | 15.37 | % | 15.06 | % | 14.90 | % | 15.29 | % | 15.31 | % |
(1) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I
(2) At end of period
(3) Whole shares
A
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||
| Cash and demand deposits due from banks | $ | 28,786 | $ | 22,830 | $ | 27,019 | $ | 22,690 | $ | 22,987 |
| Fed Funds sold and interest bearing balances due from banks | 40,393 | 1,712 | 359 | 869 | 2,231 | |||||
| Total cash and cash equivalents | 69,179 | 24,542 | 27,378 | 23,559 | 25,218 | |||||
| Available-for-sale securities, at fair value | 513,040 | 489,029 | 506,806 | 505,646 | 517,585 | |||||
| Federal Home Loan Bank stock | 5,600 | 12,762 | 12,762 | 12,762 | 12,762 | |||||
| Mortgage loans held-for-sale | 127 | 242 | 504 | 637 | 366 | |||||
| Loans | 1,367,724 | 1,423,571 | 1,424,283 | 1,381,636 | 1,365,508 | |||||
| Less allowance for credit losses | 12,735 | 12,895 | 12,635 | 13,095 | 13,390 | |||||
| Net loans | 1,354,989 | 1,410,676 | 1,411,648 | 1,368,541 | 1,352,118 | |||||
| Premises and equipment | 28,108 | 27,659 | 27,674 | 27,843 | 27,951 | |||||
| Cash surrender value of bank-owned life insurance policies | 45,833 | 34,882 | 34,625 | 34,382 | 34,131 | |||||
| Goodwill and other intangible assets | 48,282 | 48,283 | 48,283 | 48,283 | 48,284 | |||||
| Other assets | 37,429 | 38,166 | 37,221 | 38,486 | 39,161 | |||||
| Total assets | $ | 2,102,587 | $ | 2,086,241 | $ | 2,106,901 | $ | 2,060,139 | $ | 2,057,576 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Liabilities | ||||||||||
| Demand deposits | $ | 404,194 | $ | 416,373 | $ | 421,493 | $ | 412,193 | $ | 413,272 |
| Interest bearing demand deposits | 243,939 | 237,548 | 228,902 | 232,660 | 250,314 | |||||
| Money market deposits | 473,138 | 423,883 | 471,745 | 429,150 | 453,014 | |||||
| Savings | 286,399 | 281,665 | 276,095 | 279,847 | 285,564 | |||||
| Certificates of deposit | 390,239 | 387,591 | 383,597 | 368,449 | 366,143 | |||||
| Total deposits | 1,797,909 | 1,747,060 | 1,781,832 | 1,722,299 | 1,768,307 | |||||
| Short-term borrowings | 47,310 | 53,567 | 52,434 | 44,194 | 42,998 | |||||
| Federal Home Loan Bank advances | — | 30,000 | 15,000 | 45,000 | — | |||||
| Subordinated debt, net of unamortized issuance costs | 29,447 | 29,424 | 29,402 | 29,380 | 29,357 | |||||
| Total borrowed funds | 76,757 | 112,991 | 96,836 | 118,574 | 72,355 | |||||
| Other liabilities | 12,365 | 15,914 | 15,248 | 17,017 | 16,240 | |||||
| Total liabilities | 1,887,031 | 1,875,965 | 1,893,916 | 1,857,890 | 1,856,902 | |||||
| Shareholders’ equity | ||||||||||
| Common stock | 125,547 | 126,224 | 125,218 | 126,126 | 126,656 | |||||
| Shares to be issued for deferred compensation obligations | 2,508 | 2,383 | 3,981 | 3,951 | 3,890 | |||||
| Retained earnings | 104,940 | 103,024 | 101,065 | 99,808 | 98,318 | |||||
| Accumulated other comprehensive income (loss) | (17,439) | (21,355) | (17,279) | (27,636) | (28,190) | |||||
| Total shareholders’ equity | 215,556 | 210,276 | 212,985 | 202,249 | 200,674 | |||||
| Total liabilities and shareholders' equity | $ | 2,102,587 | $ | 2,086,241 | $ | 2,106,901 | $ | 2,060,139 | $ | 2,057,576 |
B
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
| Three Months Ended <br> March 31 | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Interest income | ||||
| Loans | $ | 19,348 | $ | 18,057 |
| Available-for-sale securities | 2,643 | 2,884 | ||
| Federal Home Loan Bank stock | 160 | 146 | ||
| Federal funds sold and other | 482 | 293 | ||
| Total interest income | 22,633 | 21,380 | ||
| Interest expense | ||||
| Deposits | 7,463 | 7,163 | ||
| Short-term borrowings | 341 | 321 | ||
| Federal Home Loan Bank advances | 38 | 388 | ||
| Subordinated debt | 266 | 266 | ||
| Total interest expense | 8,108 | 8,138 | ||
| Net interest income | 14,525 | 13,242 | ||
| Provision for credit losses | (107) | 392 | ||
| Net interest income after provision for credit losses | 14,632 | 12,850 | ||
| Noninterest income | ||||
| Service charges and fees | 1,974 | 1,933 | ||
| Wealth management fees | 979 | 939 | ||
| Earnings on bank-owned life insurance policies | 372 | 243 | ||
| Net gain on sale of mortgage loans | 30 | 34 | ||
| Other | 173 | 319 | ||
| Total noninterest income | 3,528 | 3,468 | ||
| Noninterest expenses | ||||
| Compensation and benefits | 7,383 | 7,015 | ||
| Occupancy and equipment | 2,600 | 2,706 | ||
| Other professional services | 711 | 513 | ||
| ATM and debit card fees | 486 | 469 | ||
| Marketing | 459 | 426 | ||
| FDIC insurance premiums | 303 | 252 | ||
| Other | 1,357 | 1,295 | ||
| Total noninterest expenses | 13,299 | 12,676 | ||
| Income before income tax expense | 4,861 | 3,642 | ||
| Income tax expense | 912 | 511 | ||
| Net income | $ | 3,949 | $ | 3,131 |
| Earnings per common share | ||||
| Basic | $ | 0.53 | $ | 0.42 |
| Diluted | 0.53 | 0.42 | ||
| Cash dividends per common share | 0.28 | 0.28 |
C
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
| Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | ||||||
| Interest income | ||||||||||
| Loans | $ | 19,348 | $ | 20,145 | $ | 20,230 | $ | 18,863 | 18,057 | |
| Available-for-sale securities | 2,643 | 2,656 | 2,749 | 2,804 | 2,884 | |||||
| Federal Home Loan Bank stock | 160 | 168 | 168 | 158 | 146 | |||||
| Federal funds sold and other | 482 | 200 | 194 | 263 | 293 | |||||
| Total interest income | 22,633 | 23,169 | 23,341 | 22,088 | 21,380 | |||||
| Interest expense | ||||||||||
| Deposits | 7,463 | 7,583 | 7,631 | 7,313 | 7,163 | |||||
| Short-term borrowings | 341 | 413 | 384 | 321 | 321 | |||||
| Federal Home Loan Bank advances | 38 | 352 | 571 | 638 | 388 | |||||
| Subordinated debt | 266 | 266 | 267 | 266 | 266 | |||||
| Total interest expense | 8,108 | 8,614 | 8,853 | 8,538 | 8,138 | |||||
| Net interest income | 14,525 | 14,555 | 14,488 | 13,550 | 13,242 | |||||
| Provision for credit losses | (107) | 376 | 946 | 170 | 392 | |||||
| Net interest income after provision for credit losses | 14,632 | 14,179 | 13,542 | 13,380 | 12,850 | |||||
| Noninterest income | ||||||||||
| Service charges and fees | 1,974 | 2,186 | 2,133 | 2,023 | 1,933 | |||||
| Wealth management fees | 979 | 1,051 | 1,003 | 1,048 | 939 | |||||
| Earnings on bank-owned life insurance policies | 372 | 259 | 252 | 253 | 243 | |||||
| Net gain on sale of mortgage loans | 30 | 75 | 37 | 67 | 34 | |||||
| Other | 173 | 401 | 103 | 217 | 319 | |||||
| Total noninterest income | 3,528 | 3,972 | 3,528 | 3,608 | 3,468 | |||||
| Noninterest expenses | ||||||||||
| Compensation and benefits | 7,383 | 7,340 | 7,251 | 6,970 | 7,015 | |||||
| Occupancy and equipment | 2,600 | 2,554 | 2,645 | 2,619 | 2,706 | |||||
| Other professional services | 711 | 584 | 588 | 527 | 513 | |||||
| ATM and debit card fees | 486 | 516 | 503 | 487 | 469 | |||||
| Marketing | 459 | 458 | 403 | 425 | 426 | |||||
| FDIC insurance premiums | 303 | 309 | 291 | 280 | 252 | |||||
| Other | 1,357 | 1,569 | 1,547 | 1,587 | 1,295 | |||||
| Total noninterest expenses | 13,299 | 13,330 | 13,228 | 12,895 | 12,676 | |||||
| Income before income tax expense | 4,861 | 4,821 | 3,842 | 4,093 | 3,642 | |||||
| Income tax expense | 912 | 825 | 561 | 612 | 511 | |||||
| Net income | $ | 3,949 | $ | 3,996 | $ | 3,281 | $ | 3,481 | $ | 3,131 |
| Earnings per common share | ||||||||||
| Basic | $ | 0.53 | $ | 0.54 | $ | 0.44 | $ | 0.47 | $ | 0.42 |
| Diluted | 0.53 | 0.54 | 0.44 | 0.46 | 0.42 | |||||
| Cash dividends per common share | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
D
AVERAGE YIELDS AND COSTS (UNAUDITED)
The following schedules present yield and daily average amounts outstanding for each major category of interest earning assets, nonearning assets, interest bearing liabilities, and noninterest bearing liabilities. For analytical purposes, interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%. Federal Reserve Bank restricted equity holdings are included in other interest earning assets.
| Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | ||||||
| INTEREST EARNING ASSETS | ||||||||||
| Loans (1) | 5.71 | % | 5.66 | % | 5.72 | % | 5.50 | % | 5.38 | % |
| Available-for-sale securities | 2.20 | % | 2.15 | % | 2.17 | % | 2.17 | % | 2.25 | % |
| Federal Home Loan Bank stock | 5.82 | % | 5.25 | % | 5.26 | % | 4.97 | % | 4.57 | % |
| Fed funds sold | 4.32 | % | 4.54 | % | 5.36 | % | 5.30 | % | 5.43 | % |
| Other | 4.06 | % | 4.94 | % | 5.18 | % | 7.38 | % | 4.66 | % |
| Total interest earning assets | 4.75 | % | 4.72 | % | 4.75 | % | 4.59 | % | 4.47 | % |
| INTEREST BEARING LIABILITIES | ||||||||||
| Interest bearing demand deposits | 0.41 | % | 0.36 | % | 0.28 | % | 0.30 | % | 0.33 | % |
| Money market deposits | 2.58 | % | 2.71 | % | 2.77 | % | 2.85 | % | 2.86 | % |
| Savings | 0.76 | % | 0.64 | % | 0.61 | % | 0.56 | % | 0.47 | % |
| Certificates of deposit | 3.93 | % | 4.07 | % | 4.13 | % | 4.01 | % | 3.84 | % |
| Short-term borrowings | 3.18 | % | 3.22 | % | 3.17 | % | 3.18 | % | 3.17 | % |
| Federal Home Loan Bank advances | 4.53 | % | 4.88 | % | 5.52 | % | 5.55 | % | 5.54 | % |
| Subordinated debt, net of unamortized issuance costs | 3.62 | % | 3.62 | % | 3.62 | % | 3.63 | % | 3.63 | % |
| Total interest bearing liabilities | 2.26 | % | 2.38 | % | 2.42 | % | 2.38 | % | 2.28 | % |
| Net yield on interest earning assets (FTE) (2) | 3.06 | % | 2.98 | % | 2.96 | % | 2.82 | % | 2.79 | % |
| Net interest spread | 2.49 | % | 2.34 | % | 2.33 | % | 2.21 | % | 2.19 | % |
(1) Includes loans held-for-sale and nonaccrual loans
(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I
E
AVERAGE BALANCES (UNAUDITED)
(Dollars in thousands)
| Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | ||||||
| INTEREST EARNING ASSETS | ||||||||||
| Loans (1) | $ | 1,370,765 | $ | 1,412,578 | $ | 1,403,810 | $ | 1,375,523 | $ | 1,348,749 |
| Available-for-sale securities (2) | 514,479 | 522,733 | 536,379 | 545,827 | 557,030 | |||||
| Federal Home Loan Bank stock | 11,011 | 12,762 | 12,762 | 12,762 | 12,762 | |||||
| Fed funds sold | 4 | 8 | 4 | 7 | 7 | |||||
| Other (3) | 47,374 | 15,905 | 14,597 | 14,054 | 25,210 | |||||
| Total interest earning assets | 1,943,633 | 1,963,986 | 1,967,552 | 1,948,173 | 1,943,758 | |||||
| NONEARNING ASSETS | ||||||||||
| Allowance for credit losses | (12,884) | (12,598) | (13,125) | (13,431) | (13,100) | |||||
| Cash and demand deposits due from banks | 23,899 | 22,800 | 25,903 | 23,931 | 24,018 | |||||
| Premises and equipment | 27,962 | 27,773 | 27,868 | 27,999 | 28,022 | |||||
| Other assets | 102,927 | 92,608 | 87,002 | 80,539 | 84,059 | |||||
| Total assets | $ | 2,085,537 | $ | 2,094,569 | $ | 2,095,200 | $ | 2,067,211 | $ | 2,066,757 |
| INTEREST BEARING LIABILITIES | ||||||||||
| Interest bearing demand deposits | $ | 240,860 | $ | 232,271 | $ | 232,018 | $ | 238,866 | $ | 245,299 |
| Money market deposits | 460,663 | 436,235 | 451,216 | 434,061 | 451,476 | |||||
| Savings | 286,364 | 276,856 | 274,828 | 283,605 | 282,971 | |||||
| Certificates of deposit | 387,820 | 386,871 | 375,936 | 366,440 | 357,541 | |||||
| Short-term borrowings | 43,563 | 50,862 | 48,304 | 40,609 | 40,623 | |||||
| Federal Home Loan Bank advances | 3,333 | 28,261 | 40,435 | 45,494 | 27,692 | |||||
| Subordinated debt, net of unamortized issuance costs | 29,433 | 29,410 | 29,388 | 29,365 | 29,342 | |||||
| Total interest bearing liabilities | 1,452,036 | 1,440,766 | 1,452,125 | 1,438,440 | 1,434,944 | |||||
| NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Demand deposits | 403,024 | 425,116 | 418,973 | 411,282 | 412,228 | |||||
| Other liabilities | 16,265 | 15,775 | 15,658 | 16,755 | 16,151 | |||||
| Shareholders’ equity | 214,212 | 212,912 | 208,444 | 200,734 | 203,434 | |||||
| Total liabilities and shareholders’ equity | $ | 2,085,537 | $ | 2,094,569 | $ | 2,095,200 | $ | 2,067,211 | $ | 2,066,757 |
(1) Includes loans held-for-sale and nonaccrual loans
(2) Average balances for available-for-sale securities are based on amortized cost
(3) Includes average interest-bearing deposits with other banks, net of Federal Reserve daily cash letter
F
ASSET QUALITY ANALYSIS (UNAUDITED)
(Dollars in thousands)
The following table outlines our quarter-to-date asset quality analysis as of, and for the three-month periods ended:
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NONPERFORMING ASSETS | |||||||||||||||
| Commercial and industrial | $ | — | $ | — | $ | 120 | $ | 271 | $ | 567 | |||||
| Commercial real estate | — | — | — | — | 234 | ||||||||||
| Agricultural | — | — | — | 167 | 189 | ||||||||||
| Residential real estate | 173 | 282 | 427 | 556 | 293 | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Total nonaccrual loans | 173 | 282 | 547 | 994 | 1,283 | ||||||||||
| Accruing loans past due 90 days or more | 26 | 19 | 64 | 15 | — | ||||||||||
| Total nonperforming loans | 199 | 301 | 611 | 1,009 | 1,283 | ||||||||||
| Foreclosed assets | 649 | 544 | 546 | 629 | 579 | ||||||||||
| Debt securities | — | — | 12 | 12 | 12 | ||||||||||
| Total nonperforming assets | $ | 848 | $ | 845 | $ | 1,169 | $ | 1,650 | $ | 1,874 | |||||
| Nonperforming loans to gross loans | 0.01 | % | 0.02 | % | 0.04 | % | 0.07 | % | 0.09 | % | |||||
| Nonperforming assets to total assets | 0.04 | % | 0.04 | % | 0.06 | % | 0.08 | % | 0.09 | % | |||||
| Allowance for credit losses as a % of nonaccrual loans (1) | N/M | N/M | N/M | N/M | N/M | ||||||||||
| ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||
| Allowance at beginning of period | $ | 12,895 | $ | 12,635 | $ | 13,095 | $ | 13,390 | $ | 13,108 | |||||
| Charge-offs | 172 | 299 | 1,767 | 527 | 191 | ||||||||||
| Recoveries | 224 | 197 | 408 | 134 | 145 | ||||||||||
| Net loan charge-offs (recoveries) | (52) | 102 | 1,359 | 393 | 46 | ||||||||||
| Provision for credit losses - loans | (212) | 362 | 899 | 98 | 328 | ||||||||||
| Allowance at end of period | $ | 12,735 | $ | 12,895 | $ | 12,635 | $ | 13,095 | $ | 13,390 | |||||
| Allowance for credit losses to gross loans | 0.93 | % | 0.91 | % | 0.89 | % | 0.95 | % | 0.98 | % | |||||
| Reserve for unfunded commitments | 617 | 512 | 498 | 450 | 379 | ||||||||||
| Provision for credit losses - unfunded commitments | 105 | 14 | 47 | 72 | 64 | ||||||||||
| Reserve to unfunded commitments | 0.14 | % | 0.15 | % | 0.15 | % | 0.14 | % | 0.11 | % | |||||
| NET LOAN CHARGE-OFFS (RECOVERIES) | |||||||||||||||
| Commercial and industrial | $ | (80) | $ | 13 | $ | (6) | $ | 334 | $ | (2) | |||||
| Commercial real estate | (2) | (2) | (318) | (29) | (6) | ||||||||||
| Agricultural | — | (4) | — | — | (2) | ||||||||||
| Residential real estate | (13) | (16) | (20) | (19) | (63) | ||||||||||
| Consumer | 43 | 111 | 1,703 | 107 | 119 | ||||||||||
| Total | $ | (52) | $ | 102 | $ | 1,359 | $ | 393 | $ | 46 | |||||
| Net (recoveries) charge-offs (Quarter to Date annualized to average loans) | (0.02) | % | 0.03 | % | 0.39 | % | 0.11 | % | 0.01 | % | |||||
| Net (recoveries) charge-offs (Year to Date annualized to average loans) | (0.02) | % | 0.14 | % | 0.17 | % | 0.00 | % | 0.01 | % | |||||
| DELINQUENT AND NONACCRUAL LOANS | |||||||||||||||
| Accruing loans 30-89 days past due | $ | 5,555 | $ | 5,682 | $ | 2,226 | $ | 1,484 | $ | 7,938 | |||||
| Accruing loans past due 90 days or more | 26 | 19 | 64 | 15 | — | ||||||||||
| Total accruing past due loans | 5,581 | 5,701 | 2,290 | 1,499 | 7,938 | ||||||||||
| Nonaccrual loans | 173 | 282 | 547 | 994 | 1,283 | ||||||||||
| Total past due and nonaccrual loans | $ | 5,754 | $ | 5,983 | $ | 2,837 | $ | 2,493 | $ | 9,221 |
(1) N/M: Not meaningful
G
CONSOLIDATED LOAN AND DEPOSIT ANALYSIS (UNAUDITED)
(Dollars in thousands)
Loan Analysis
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | Annualized Growth %<br>Quarter to Date | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Commercial and industrial | $ | 249,220 | $ | 244,894 | $ | 240,589 | $ | 238,245 | $ | 226,281 | 7.07 | % |
| Commercial real estate | 552,234 | 547,447 | 547,038 | 547,005 | 561,123 | 3.50 | % | |||||
| Advances to mortgage brokers | 3,015 | 63,080 | 76,187 | 39,300 | 29,688 | N/M | ||||||
| Agricultural | 94,359 | 99,694 | 96,794 | 94,996 | 93,695 | (21.41) | % | |||||
| Total commercial loans | 898,828 | 955,115 | 960,608 | 919,546 | 910,787 | (23.57) | % | |||||
| Residential real estate | 387,348 | 380,872 | 369,846 | 365,188 | 356,658 | 6.80 | % | |||||
| Consumer | 81,548 | 87,584 | 93,829 | 96,902 | 98,063 | (27.57) | % | |||||
| Gross loans | $ | 1,367,724 | $ | 1,423,571 | $ | 1,424,283 | $ | 1,381,636 | $ | 1,365,508 | (15.69) | % |
Deposit Analysis
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | Annualized Growth %<br>Quarter to Date | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Noninterest bearing demand deposits | $ | 404,194 | $ | 416,373 | $ | 421,493 | $ | 412,193 | $ | 413,272 | (11.70) | % |
| Interest bearing demand deposits | 243,939 | 237,548 | 228,902 | 232,660 | 250,314 | 10.76 | % | |||||
| Money market deposits | 473,138 | 423,883 | 471,745 | 429,150 | 453,014 | 46.48 | % | |||||
| Savings | 286,399 | 281,665 | 276,095 | 279,847 | 285,564 | 6.72 | % | |||||
| Certificates of deposit | 390,239 | 387,591 | 383,597 | 368,449 | 366,143 | 2.73 | % | |||||
| Total deposits | $ | 1,797,909 | $ | 1,747,060 | $ | 1,781,832 | $ | 1,722,299 | $ | 1,768,307 | 11.64 | % |
H
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands except per share amounts and ratios)
| Three Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | ||||||||||||
| Net income | $ | 3,949 | $ | 3,996 | $ | 3,281 | $ | 3,481 | $ | 3,131 | ||||||
| Nonrecurring items | ||||||||||||||||
| Net gains (losses) on foreclosed assets | (55) | 74 | 4 | 6 | 69 | |||||||||||
| Overdraft (charge-off) recoveries (1) | — | 66 | (1,622) | — | — | |||||||||||
| Profitability initiative cost | — | (23) | — | — | — | |||||||||||
| Legal fees related to Nasdaq (2) | (121) | — | — | — | — | |||||||||||
| Income tax impact | 37 | (25) | 340 | (1) | (14) | |||||||||||
| Tax expense on bank-owned life insurance surrender (3) | (166) | — | — | — | — | |||||||||||
| Total nonrecurring items | (305) | 92 | (1,278) | 5 | 55 | |||||||||||
| Core net income | (A) | $ | 4,254 | $ | 3,904 | $ | 4,559 | $ | 3,476 | $ | 3,076 | |||||
| Noninterest expenses | $ | 13,299 | $ | 13,330 | $ | 13,228 | $ | 12,895 | $ | 12,676 | ||||||
| Amortization of acquisition intangibles | 1 | 1 | — | 1 | — | |||||||||||
| Core noninterest expense | (B) | $ | 13,298 | $ | 13,329 | $ | 13,228 | $ | 12,894 | $ | 12,676 | |||||
| Net interest income | $ | 14,525 | $ | 14,555 | $ | 14,488 | $ | 13,550 | $ | 13,242 | ||||||
| Tax equivalent adjustment for net interest margin | 184 | 213 | 232 | 237 | 246 | |||||||||||
| Net interest income (FTE) | (C) | 14,709 | 14,768 | 14,720 | 13,787 | 13,488 | ||||||||||
| Noninterest income | 3,528 | 3,972 | 3,528 | 3,608 | 3,468 | |||||||||||
| Tax equivalent adjustment for efficiency ratio | 78 | 54 | 53 | 53 | 51 | |||||||||||
| Core revenue (FTE) | 18,315 | 18,794 | 18,301 | 17,448 | 17,007 | |||||||||||
| Nonrecurring items | ||||||||||||||||
| Net gains (losses) on foreclosed assets | (55) | 74 | 4 | 6 | 69 | |||||||||||
| Total nonrecurring items | (55) | 74 | 4 | 6 | 69 | |||||||||||
| Core revenue | (D) | $ | 18,370 | $ | 18,720 | $ | 18,297 | $ | 17,442 | $ | 16,938 | |||||
| Efficiency ratio | (B/D) | 72.39 | % | 71.20 | % | 72.30 | % | 73.93 | % | 74.84 | % | |||||
| Average earning assets | (E) | 1,943,633 | 1,963,986 | 1,967,552 | 1,948,173 | 1,943,758 | ||||||||||
| Net yield on interest earning assets (FTE) | (C/E) | 3.06 | % | 2.98 | % | 2.96 | % | 2.82 | % | 2.79 | % | |||||
| Average assets | (F) | 2,085,537 | 2,094,569 | 2,095,200 | 2,067,211 | 2,066,757 | ||||||||||
| Average shareholders' equity | (G) | 214,212 | 212,912 | 208,444 | 200,734 | 203,434 | ||||||||||
| Average tangible shareholders' equity | (H) | 165,929 | 164,629 | 160,161 | 152,451 | 155,150 | ||||||||||
| Average diluted shares outstanding (4) | (I) | 7,432,162 | 7,451,718 | 7,473,184 | 7,494,828 | 7,507,739 | ||||||||||
| Core diluted earnings per share | (A/I) | $ | 0.57 | $ | 0.52 | $ | 0.61 | $ | 0.46 | $ | 0.41 | |||||
| Core return on average assets | (A/F) | 0.83 | % | 0.74 | % | 0.87 | % | 0.68 | % | 0.60 | % | |||||
| Core return on average shareholders' equity | (A/G) | 8.05 | % | 7.29 | % | 8.70 | % | 6.96 | % | 6.08 | % | |||||
| Core return on average tangible shareholders' equity | (A/H) | 10.40 | % | 9.43 | % | 11.32 | % | 9.17 | % | 7.97 | % |
(1) Includes provision for credit losses related to overdrawn deposit accounts from a single customer in the third quarter of 2024
(2) Included in Other professional services in the consolidated statements of income
(3) Surrender fees related to transition from general to separate bank-owned life insurance policies
(4) Whole shares
I