Peoples Bancorp Of North Carolina Inc 10-Q for FY2024 Q1

Peoples Bancorp Of North Carolina Inc (PEBK)

10-Q 2024-05-02 For: 2024-03-31

Added on April 12, 2026

About this 10-Q

Peoples Bancorp Of North Carolina Inc filed this 10-Q on May 2, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $3.95M; up 24.5% from net income of $3.17M a year earlier
Diluted EPS: $0.72; up 28.6% from $0.56 a year earlier

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North Carolina		56-2132396
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

518 West C Street, Newton, North Carolina		28658
(Address of principal executive offices)		(Zip Code)

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

		PAGE(S)
Item 1.	Financial Statements

	Consolidated Balance Sheets at March 31, 2024 (Unaudited) and December 31, 2023 (Audited)	4

	Consolidated Statements of Earnings for the three months ended March 31, 2024 and 2023 (Unaudited)	5

	Consolidated Statements of Comprehensive Income for the three and months ended March 31, 2024 and 2023 (Unaudited)	6

	Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2024 and 2023 (Unaudited)	7

	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (Unaudited)	8-9

	Notes to Consolidated Financial Statements (Unaudited)	10-28

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29-38

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39

Item 4.	Controls and Procedures	39

Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults upon Senior Securities	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
Signatures		42
Certifications

	March 31,			December 31,
Assets	2024			2023
	(Unaudited)			(Audited)

Cash and due from banks	$	26,272			32,819
Interest-bearing deposits		71,824			49,556
Cash and cash equivalents		98,096			82,375

Investment securities available for sale		394,664			391,924
Other investments		2,858			2,874
Total securities		397,522			394,798

Mortgage loans held for sale		1,292			686

Loans		1,106,670			1,093,066
Less allowance for credit losses		(10,847	)		(11,041	)
Net loans		1,095,823			1,082,025

Premises and equipment, net		16,330			16,702
Cash surrender value of life insurance		18,250			18,134
Right of use lease asset		4,553			4,731
Accrued interest receivable and other assets		37,694			36,459
Total assets	$	1,669,560			1,635,910

Liabilities and Shareholders' Equity

Deposits:
Noninterest-bearing demand	$	462,966			432,687
Interest-bearing demand, MMDA & savings		633,740			620,244
Time, over $250,000		148,819			148,904
Other time		206,839			190,210
Total deposits		1,452,364			1,392,045

Securities sold under agreements to repurchase		59,216			86,715
Junior subordinated debentures		15,464			15,464
Lease liability		4,660			4,832
Accrued interest payable and other liabilities		16,764			15,838
Total liabilities		1,548,468			1,514,894

Commitments and contingencies

Shareholders' equity:
Preferred stock, no par value; authorized 5,000,000 shares; no shares issued and outstanding		-			-
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,455,999 shares at March 31, 2024 and 5,534,499 shares at December 31, 2023		48,627			50,625
Common stock held by deferred compensation trust, at cost; 164,970 shares at March 31, 2024 and 158,356 shares at December 31, 2023		(1,943	)		(1,910	)
Deferred compensation		1,943			1,910
Retained earnings		111,775			109,756
Accumulated other comprehensive loss		(39,310	)		(39,365	)
Total shareholders' equity		121,092			121,016
Total liabilities and shareholders' equity	$	1,669,560			1,635,910

													Common Stock
													Held By			Accumulated
													Deferred			Other
	Common Stock						Retained			Deferred			Compensation			Comprehensive
	Shares			Amount			Earnings			Compensation			Trust			Income (Loss)			Total
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Balance, December 31, 2023		5,534,499		$	50,625			109,756			1,910			(1,910	)		(39,365	)		121,016

Common stock repurchase		(78,500	)		(1,998	)		-			-			-			-			(1,998	)
Cash dividends declared on
common stock		-			-			(1,929	)		-			-			-			(1,929	)
Equity incentive plan, net		-			-			-			33			(33	)		-			-
Net earnings		-			-			3,948			-			-			-			3,948
Change in accumulated other
comprehensive income (loss), net of tax		-			-			-			-			-			55			55
Balance, March 31, 2024		5,455,999		$	48,627			111,775			1,943			(1,943	)		(39,310	)		121,092

Balance, December 31, 2022		5,636,830		$	52,636			100,156			2,181			(2,181	)		(47,597	)		105,195

Adoption of new accounting
standard, net of tax		-			-			(838	)		-			-			-			(838	)
Cash dividends declared on
common stock		-			-			(1,925	)		-			-			-			(1,925	)
Restricted stock units exercised		191			6			-			-			-			-			6
Equity incentive plan, net		-			-			-			(344	)		344			-			-
Net earnings		-			-			3,172			-			-			-			3,172
Change in accumulated other
comprehensive income (loss), net of tax		-			-			-			-			-			9,173			9,173
Balance, March 31, 2023		5,637,021		$	52,642			100,565			1,837			(1,837	)		(38,424	)		114,783

ASU	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2023-07 Segment Reporting (Topic 280)	The ASU provides amendments to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses	January 1, 2025	The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.
ASU 2024-01 Compensation—Stock Compensation (Topic 718)	The ASU adds an illustrative example (with four fact patterns) on how an entity would apply Accounting Standards Codification (ASC) 718 scope guidance.	January 1, 2025	The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.
ASU 2024-02 Codification Improvements Amendments to Remove References to Concepts Statements	The ASU removes references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references are a substitute for actual wording from a Concepts Statement. In most cases, the ASU is not intended to result in significant accounting changes for most entities.	January 1, 2025	The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.

	For the three months ended
(dollars in thousands)	March 31, 2024			March 31, 2023

Beginning balance	$	(39,365	)	$	(47,597	)
Other comprehensive loss before reclassifications, net		55			9,173
Amounts reclassified from accumulated other comprehensive loss, net		-			-
Net current period other comprehensive loss		55			9,173
Ending balance	$	(39,310	)	$	(38,424	)

For the three months ended March 31, 2024
	Net Earnings (Dollars in thousands)		Weighted Average Number of Shares		Per Share Amount
Basic earnings per share	$	3,948		5,318,671	$	0.74
Effect of dilutive securities:
Restricted stock units - unvested				18,143
Shares held in deferred comp plan
by deferred compensation trust				164,336
Diluted earnings per share	$	3,948		5,501,150	$	0.72

(Dollars in thousands)
	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,977		-		891		7,086
U.S. Government sponsored enterprises		10,669		-		625		10,044
GSE - Mortgage-backed securities		259,899		204		22,987		237,116
Private label mortgage-backed securities		37,294		6		1,948		35,352
State and political subdivisions		129,859		-		24,793		105,066
Total	$	445,698		210		51,244		394,664

(Dollars in thousands)
	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	10,974		-		830		10,144
U.S. Government sponsored enterprises		11,111		-		596		10,515
GSE - Mortgage-backed securities		257,705		185		22,988		234,902
Private label mortgage-backed securities		33,317		16		2,063		31,270
State and political subdivisions		129,922		-		24,829		105,093
Total	$	443,029		201		51,306		391,924

(Dollars in thousands)
	March 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		7,086		891		7,086		891
U.S. government sponsored enterprises		-		-		10,044		625		10,044		625
GSE -Mortgage-backed securities		21,715		550		199,648		22,437		221,363		22,987
Private label mortgage-backed securities		8,142		35		26,089		1,913		34,231		1,948
State and political subdivisions		-		-		105,066		24,793		105,066		24,793
Total	$	29,857		585		347,933		50,659		377,790		51,244

(Dollars in thousands)
	March 31, 2024			December 31, 2023
Real estate loans:
Construction and land development	$	129,284			136,401
Single-family residential		375,621			372,825
Commercial		438,683			425,820
Multifamily and farmland		71,545			63,042
Total real estate loans		1,015,133			998,088

Loans not secured by real estate:
Commercial		68,138			70,544
Farm		534			550
Consumer		6,643			6,966
All other		16,222			16,918

Total loans		1,106,670			1,093,066

Less allowance for credit losses		(10,847	)		(11,041	)

Total net loans	$	1,095,823			1,082,025

	·	Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral.

	·	Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.

	·	Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over the loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property.

	·	Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business.

	·	Multifamily and farmland loans – Decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.

March 31, 2024
(Dollars in thousands)
	Loans 30- 89 Days Past Due		Nonaccrual		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	-		43		43		129,241		129,284		-
Single-family residential		5,787		3,323		9,110		366,511		375,621		-
Commercial		915		-		915		437,768		438,683		-
Multifamily and farmland		-		72		72		71,473		71,545		-
Total real estate loans		6,702		3,438		10,140		1,004,993		1,015,133		-

Loans not secured by real estate:
Commercial		143		552		695		67,443		68,138		-
Farm		-		-		-		534		534		-
Consumer		29		1		30		6,613		6,643		-
All other		-		-		-		16,222		16,222		-
Total loans	$	6,874		3,991		10,865		1,095,805		1,106,670		-


	2024		2023
	(Unaudited)		(Unaudited)

Interest income:
Interest and fees on loans	$	15,138		12,883
Interest on due from banks		907		383
Interest on investment securities:
U.S. Government sponsored enterprises		2,591		2,230
State and political subdivisions		695		862
Other		479		443
Total interest income		19,810		16,801

Interest expense:
Interest-bearing demand, MMDA & savings deposits		2,060		1,488
Time deposits		3,681		516
Junior subordinated debentures		284		248
Other		481		211
Total interest expense		6,506		2,463

Net interest income		13,304		14,338

Provision for credit losses		91		224

Net interest income after provision for credit losses		13,213		14,114

Non-interest income:
Service charges		1,340		1,341
Other service charges and fees		184		182
Loss on sale of securities, net		-		(2,488	)
Mortgage banking income		51		93
Insurance and brokerage commissions		246		228
Appraisal management fee income		2,414		2,094
Miscellaneous		1,803		2,161
Total non-interest income		6,038		3,611

Non-interest expense:
Salaries and employee benefits		6,980		6,500
Occupancy		2,111		2,014
Professional fees		392		399

	March 31, 2024
	Nonaccrual Loans		Nonaccrual Loans		Total
	With No		With		Nonaccrual
(Dollars in thousands)	Allowance		Allowance		Loans
Real estate loans:
Construction and land development	$	43		-		43
Single-family residential		3,197		126		3,323
Commercial		-		-		-
Multifamily and farmland		72		-		72
Total real estate loans		3,312		126		3,438

Loans not secured by real estate:
Commercial		254		298		552
Consumer		1		-		1
Total	$	3,567		424		3,991

(Dollars in thousands)
	Term Extension
	Amortized Cost Basis at March 31, 2024		% of Loan Class
Loan class:
Commercial not secured by real estate		73		0.11	%
Total	$	73

(Dollars in thousands)
	Term Extension
	Amortized Cost Basis at March 31, 2023		% of Loan Class
Loan class:
Commercial real estate		686		0.17	%
Total	$	686

March 31, 2024

Term Extension
Loan Class		Financial Effect
Commercial real estate		Line of credit converted to amortizing term loan.

March 31, 2024
(Dollars in thousands)
	Payment Status (Amortized Cost Basis)
	Current		30 - 89 Days Past Due		90 + Days Past Due
Loan type:
Commercial real estate		73		-		-
Total	$	73		-		-

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential		Commercial			Multifamily and Farmland		Commercial			Farm		Consumer and All Other			Total
Three months ended March 31, 2024
Allowance for credit losses:
Beginning balance	$	3,913			3,484		2,317			268		812			2		245			11,041
Charge-offs		-			-		-			-		(446	)		-		(210	)		(656	)
Recoveries		-			56		201			-		6			-		36			299
Provision (recovery) for
loan losses (1)		(233	)		57		(173	)		45		300			-		167			163
Ending balance	$	3,680			3,597		2,345			313		672			2		238			10,847
Allowance for credit loss-loans	$	3,680			3,597		2,345			313		672			2		238			10,847
Allowance for credit losses
loan commitments		1,692			5		-			-		-			-		1			1,698
Total allowance for credit losses	$	5,372			3,602		2,345			313		672			2		239			12,545

	·	Pass – Includes loans ranging from excellent quality with a minimal amount of credit risk to loans with higher risk and servicing needs but still are considered to be acceptable. The higher risk loans in this category are not problem credits presently, but may be in the future if the borrower is unable to change its present course.

	·	Watch – These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date.

	·	Substandard – A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

	·	Doubtful – Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.

	·	Loss – Loans classified Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future.

	Term Loans by Origination Year														Revolving
															Loans
													Revolving		Converted to		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Loans		Term Loans		Loans
March 31, 2024
Real Estate Loans
Construction and land
development
Pass	$	8,151		41,527		56,601		9,869		6,571		5,110		924		-		128,753
Watch		-		-		-		447		-		-		-		-		447
Substandard		-		-		-		-		-		84		-		-		84
Total Construction and
land development	$	8,151		41,527		56,601		10,316		6,571		5,194		924		-		129,284
Single family
Pass	$	5,227		32,390		79,539		46,367		23,390		75,395		106,257		-		368,565
Watch		-		-		-		-		-		1,462		860		-		2,322
Substandard		-		-		370		-		-		3,991		373		-		4,734
Total single family	$	5,227		32,390		79,909		46,367		23,390		80,848		107,490		-		375,621
Commercial
Pass	$	19,992		46,189		113,557		77,096		61,101		113,221		1,890		-		433,046
Watch		-		230		-		-		115		4,884		-		-		5,229
Substandard		-		-		-		-		408		-		-		-		408
Total commercial	$	19,992		46,419		113,557		77,096		61,624		118,105		1,890		-		438,683
Multifamily and farmland
Pass	$	216		8,892		21,451		21,335		6,467		12,725		340		-		71,426
Watch		-		-		-		-		-		46		-		-		46
Substandard		-		-		-		-		-		73		-		-		73
Total multifamily and
farmland	$	216		8,892		21,451		21,335		6,467		12,844		340		-		71,545
Total real estate loans	$	33,586		129,228		271,518		155,114		98,052		216,991		110,644		-		1,015,133
Loans not secured by real estate
Commercial
Pass	$	2,464		8,737		13,570		4,332		2,381		13,711		21,270		-		66,465
Watch		-		627		-		73		286		134		1		-		1,121
Substandard		-		31		521		-		-		-		-		-		552
Total Commercial	$	2,464		9,395		14,091		4,405		2,667		13,845		21,271		-		68,138
Farm
Pass	$	-		195		40		68		-		19		212		-		534
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total farm	$	-		195		40		68		-		19		212		-		534
Consumer
Pass	$	453		1,967		1,150		306		178		116		2,467		-		6,637
Watch		-		-		-		-		-		-		1		-		1
Substandard		-		-		-		1		-		1		3		-		5
Total consumer	$	453		1,967		1,150		307		178		117		2,471		-		6,643
All other
Pass	$	392		-		6,360		450		257		3,422		5,206		-		16,087
Watch		-		-		-		-		-		73		62		-		135
Substandard		-		-		-		-		-		-		-		-		-
Total all other	$	392		-		6,360		450		257		3,495		5,268		-		16,222
Total loans not secured
by real estate	$	3,309		11,557		21,641		5,230		3,102		17,476		29,222		-		91,537
Total loans	$	36,895		140,785		293,159		160,344		101,154		234,467		139,866		-		1,106,670

	Gross Loan Charge-offs by Origination Year														Revolving
															Loans
													Revolving		Converted to		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Loans		Term Loans		Loans
Real estate loans:
Construction and land development	$	-		-		-		-		-		-		-		-		-
Single-family residential		-		-		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-		-		-
Multifamily and farmland		-		-		-		-		-		-		-		-		-
Total real estate loans		-		-		-		-		-		-		-		-		-
Loans not secured by real estate:
Commercial		-		347		99		-		-		-		-		-		446
Consumer		-		-		4		-		-		99		-		-		103
All other		-		-		-		-		-		107		-		-		107

Total gross charge-offs	$	-		347		103		-		-		206		-		-		656

2024	$	615
2025		773
2026		650
2027		612
2028		510
Thereafter		2,115
Total		5,275
Less: Imputed Interest		(615	)
Operating Lease Liability	$	4,660

(Dollars in thousands)
	Contractual Amount
	3/31/24		12/31/23
Financial instruments whose contract amount represent credit risk:

Commitments to extend credit	$	370,525		367,482

Standby letters of credit	$	3,328		3,721

	·	Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
	·	Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
	·	Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

(Dollars in thousands)
	Fair Value Measurements March 31, 2024		Level 1 Valuation		Level 2 Valuation		Level 3 Valuation
Individually evaluated loans	$	467		-		-		467

(Dollars in thousands)
			Fair Value Measurements at March 31, 2024
	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	98,096		98,096		-		-		98,096
Investment securities available for sale		394,664		-		394,664		-		394,664
Other investments		2,858		-		-		2,858		2,858
Mortgage loans held for sale		1,292		-		1,292		-		1,292
Loans, net		1,095,823		-		-		1,083,635		1,083,635
Mutual funds held in deferred
compensation trust		2,394		2,394		-		-		2,394

Liabilities:
Deposits	$	1,452,364		-		1,456,401		-		1,456,401
Securities sold under agreements
to repurchase		59,216		-		59,216		-		59,216
Junior subordinated debentures		15,464		-		15,464		-		15,464

(Dollars in thousands)
			Fair Value Measurements at December 31, 2023
	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	82,375		82,375		-		-		82,375
Investment securities available for sale		391,924		-		391,924		-		391,924
Other investments		2,874		-		-		2,874		2,874
Mortgage loans held for sale		686		-		686		-		686
Loans, net		1,082,025		-		-		1,071,178		1,071,178
Mutual funds held in deferred
compensation trust		2,171		2,171		-		-		2,171

Liabilities:
Deposits	$	1,392,045		-		1,397,351		-		1,397,351
Securities sold under agreements
to repurchase		86,715		-		86,715		-		86,715
Junior subordinated debentures		15,464		-		15,464		-		15,464

(Dollars in thousands)
	Banking
	Operations		CBRES		Other			Consolidated
As of and for the three months ended March 31, 2024
Interest income	$	19,801	$	-	$	9		$	19,810
Interest expense		6,222		-		284			6,506
Net interest income		13,579		-		(275	)		13,304
Provision for credit losses		91		-		-			91
Noninterest income		3,624		-		-			3,624
Appraisal management fee income		-		2,414		-			2,414
Noninterest expense		12,106		344		162			12,612
Appraisal management fee expense		-		1,904		-			1,904
Income tax expense (benefit)		841		38		(92	)		787
Net income (loss)	$	4,165	$	128	$	(345	)	$	3,948
Total assets	$	1,665,209	$	3,847	$	504		$	1,669,560
As of and for the three months ended March 31, 2023
Interest income	$	16,793	$	-	$	8		$	16,801
Interest expense		2,215		-		248			2,463
Net interest income		14,578		-		(240	)		14,338
Provision for credit losses		224		-		-			224
Noninterest income		1,517		-		-			1,517
Appraisal management fee income		-		2,094		-			2,094
Noninterest expense		11,564		334		154			12,052
Appraisal management fee expense		-		1,650		-			1,650
Income tax expense (benefit)		909		25		(83	)		851
Net income (loss)	$	3,398	$	85	$	(311	)	$	3,172
Total assets	$	1,598,863	$	3,329	$	500		$	1,602,692

		Three months ended March 31, 2024							Three months ended March 31, 2023
(Dollars in thousands)		Average Balance			Interest	Yield / Rate			Average Balance			Interest	Yield / Rate
Interest-earning assets:

Loans receivable	$	1,092,658		$	15,138	5.57	%	$	1,037,124		$	12,883	5.04	%
Investments - taxable		310,014			3,008	3.90	%		340,536			2,829	3.37	%
Investments - nontaxable*		136,791			763	2.24	%		138,819			754	2.20	%
Due from banks		66,518			907	5.48	%		32,453			383	4.79	%

Total interest-earning assets		1,605,981			19,816	4.96	%		1,548,932			16,849	4.41	%

Non-interest earning assets:
Cash and due from banks		32,045							37,515
Allowance for credit losses		(11,062	)						(10,443	)
Other assets		20,838							20,784

Total assets	$	1,647,802						$	1,596,788

Interest-bearing liabilities:

Interest-bearing demand, MMDA & savings deposits	$	648,306		$	2,060	1.28	%	$	775,101		$	1,488	0.78	%
Time deposits		352,247			3,681	4.20	%		118,763			516	1.76	%
Junior subordinated debentures		15,464			284	7.39	%		15,464			248	6.50	%
Other		72,695			481	2.66	%		42,233			211	2.03	%

Total interest-bearing liabilities		1,088,712			6,506	2.40	%		951,561			2,463	1.05	%

Non-interest bearing liabilities and shareholders' equity:
Demand deposits		427,752							523,544
Other liabilities		13,814							12,433
Shareholders' equity		117,524							109,250

Total liabilities and shareholders' equity	$	1,647,802						$	1,596,788

Net interest spread				$	13,310	2.56	%				$	14,386	3.36	%

Net yield on interest-earning assets						3.33	%						3.77	%

Taxable equivalent adjustment
Investment securities				$	6						$	48

Net interest income				$	13,304						$	14,338

	Three months ended March 31, 2024 compared to three months ended March 31, 2023									Three months ended March 31, 2023 compared to three months ended March 31, 2022
(Dollars in thousands)	Changes in average volume			Changes in average rates			Total Increase (Decrease)			Changes in average volume			Changes in average rates		Total Increase (Decrease)
Interest income:
Loans: Net of unearned income	$	730			1,525			2,255			1,780			1,361		3,141
Investments - taxable		(275	)		454			179			307			1,517		1,824
Investments - nontaxable		(11	)		20			9			49			144		193
Due from banks		433			91			524			(1,389	)		1,661		272
Total interest income		877			2,090			2,967			747			4,683		5,430

Interest expense:
Interest-bearing demand,
MMDA & savings deposits		(323	)		895			572			(29	)		1,114		1,085
Time deposits		1,727			1,438			3,165			53			316		369
Junior subordinated debentures		-			36			36			-			173		173
Other		177			93			270			11			162		173
Total interest expense		1,581			2,462			4,043			35			1,765		1,800
Net interest income	$	(704	)		(372	)		(1,076	)		712			2,918		3,630

Period	Total Number of Shares Purchased (1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (3)

January 1 - 31, 2024		-	$	-		-	$	2,003,184

February 1 - 29, 2024		79,690	$	25.48		78,500	$	5,147

March 1 - 31, 2024		750	$	27.51		-	$	5,147

Total		80,440	$	25.50		78,500

(1)	The Company purchased 1,940 shares on the open market in the three months ended March 31, 2024 for its deferred compensation plan. All purchases were funded by participant contributions to the plan.

(2)	Reflects shares purchased under the Company's publicly announced stock repurchase program.

(3)	Reflects dollar value of balance available for repurchase at end of period under the Company's stock repurchase program, which was authorized in March 2023 and December 2023. The stock repurchase program expired in March 2024.