Financial Performance - Net income for the fourth quarter of 2024 was 1.62million,down23.22.11 million in the same quarter of 2023, while full-year net income decreased to 7.94millionfrom8.70 million [2][12]. - Net income decreased by 8.73% to 7,944,000in2024comparedto8,704,000 in 2023 [40]. - Return on average assets decreased to 0.63% in 2024 from 0.87% in 2023, a decline of 0.24 percentage points [42]. - Return on average equity fell to 9.39% in 2024 compared to 16.69% in 2023, a decrease of 7.30 percentage points [42]. Income and Revenue - Total interest income for 2024 increased by 13% to 44.64millioncomparedto39.36 million in 2023, driven by higher commercial loan interest rates and new loans [12][14]. - Noninterest income rose 18% year-over-year to 15.14millionin2024,supportedbygainsonloansalesandwealthmanagementfees[5][18].−Totalinterestincomeincreasedby13.4244,643,000 in 2024 from 39,362,000in2023[39].−Noninterestincomegrewby17.6415,137,000 in 2024 from 12,867,000in2023[41].LoansandAssets−Totalloans,netofallowanceforcreditlosses,increasedby6636.55 million at December 31, 2024, with commercial real estate loans growing by 9% [6][22]. - Loans, net increased by 5.75% to 636,552,000asofDecember31,2024,upfrom601,921,000 in 2023 [41]. - Total assets increased by 1.02% to 979,244,000asofDecember31,2024,from969,371,000 in 2023 [41]. - Loans held for sale increased significantly by 187.44% to 3,616,000in2024from1,258,000 in 2023 [41]. Deposits and Equity - Total deposits increased to 882.40millionatDecember31,2024,upfrom878.46 million a year earlier, reflecting a focus on core deposits [9][27]. - Total deposits rose by 0.45% to 882,404,000in2024from878,459,000 in 2023 [41]. - Stockholders' equity rose by 8% to 64.87millionatDecember31,2024,withbookvaluepershareincreasingto14.28 from 13.21ayearearlier[10][28].−Stockholders′equityincreasedby8.0464,865,000 in 2024 compared to 60,039,000in2023[41].−Bookvaluepershareimprovedto14.28 in 2024 from 13.21in2023,reflectinga1.07 increase [41]. Expenses and Efficiency - Noninterest expense for the full year of 2024 was 35.11million,upfrom32.51 million in 2023, impacted by a one-time payment related to a debit card processing contract [20][12]. - Interest expense surged by 60.12% to 15,407,000in2024from9,622,000 in 2023 [41]. - The efficiency ratio increased to 82.62% in 2024, up from 79.64% in 2023, reflecting a rise of 2.98 percentage points [42]. Credit Quality - The ratio of nonperforming loans to total loans was 0.25% at December 31, 2024, indicating strong asset quality management [26]. - Total nonperforming loans surged by 319.44% to 1,640millionin2024from391 million in 2023 [42]. - Nonperforming loans to total loans ratio increased to 0.25% in 2024 from 0.06% in 2023, an increase of 0.19 percentage points [42]. - The allowance for credit losses for loans to total loans decreased to 1.09% in 2024 from 1.22% in 2023, a change of -0.12 percentage points [42]. - The ending balance of allowance for credit losses dropped by 4.96% to 7,044millionin2024from7,412 million in 2023 [42]. - Provision for credit losses showed a recovery of 39millionin2024comparedtoaprovisionof123 million in 2023, a change of -131.71% [42]. - Charge-offs were recorded at 0millionin2024,asignificantdecreasefrom40 million in 2023, marking a -100.00% change [42]. Future Outlook - The company anticipates recognizing up to 438,000inincentivepaymentsfromanewcardprocessingcontract,withexpectedlong−termbenefitsof2.1 million [12].
