John Marshall Bancorp Inc
For the period ended Jun 30, 2024. Filed Aug 13, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 13, 2024
JMSB$23.20+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001558370-24-008074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001558370-24-011986
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 152 current paragraphs.
61 unchanged; 43 reworded; 29 added; 3 removed; 3 previous and 19 current paragraphs rearranged.
Tables are not compared: 59 previous and 74 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
Results of Operations – Six Months Ended June 30, 2024 and June 30, 2023
Current report
Net income for the six months ended June 30, 2024 decreased $2.7 million or 24.9% to $8.1 million compared to $10.8 million for the same period of 2023. Diluted earnings per share for the six months ended June 30, 2024 were $0.57, a 25.0% decrease when compared to the $0.76 reported for the six months ended June 30, 2023.
Current report
Net interest income for the six months ended June 30, 2024 decreased $2.7 million or 10.0% compared to the same period of 2023, driven primarily by the increase in costs of interest-bearing liabilities outpacing the increase in yield on interest-earning assets.
Current report
The Company recorded a $1.1 million recovery of credit losses for the six months ended June 30, 2024 compared to a $1.6 million recovery of credit losses for the six month ended June 30, 2023. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Current report
Non-interest income increased $122 thousand or 9.8% during the six months ended June 30, 2024 compared to the same period of 2023. The increase in non-interest income was primarily due to an increase of $326 thousand in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans, partially offset by decreases of $203 thousand in other service charges and fees due to lower penalty fee income recognized on the early withdrawal of certificates of deposit.
Current report
Non-interest expense increased $232 thousand or 1.5% for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase in non-interest expense was primarily due to non-recurring expenses totaling $138 thousand incurred during the first quarter of 2024 in connection with a strategic opportunity that was explored and ultimately did not materialize. The remaining $93 thousand increase was due to increases in data processing expense and professional fees, partially offset by lower salaries and employee benefit expense. The decrease in salaries and employee benefits was due to lower deferred compensation expense, lower incentive accruals, and higher direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and are subsequently amortized into income to match the costs incurred with the economic benefit derived from originating a loan.
Current report
The ROAA for the six months ended June 30, 2024 and June 30, 2023 was 0.72% and 0.93%, respectively. The ROAE for the six months ended June 30, 2024 and June 30, 2023 was 6.95% and 9.85%, respectively.
Current report
The following table summarizes non-interest income for the six months ended June 30, 2024 and June 30, 2023.
Current report
thousand in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans, partially offset by decreases of $203 thousand in other service charges and fees due to lower penalty fee income recognized on the early withdrawal of certificates of deposit.
Current report
Net income for the three months ended June 30, 2024 decreased $585 thousand or 13.0% to $3.9 million compared to $4.5 million for the three months ended June 30, 2023. Diluted earnings per share for the three months ended June 30, 2024 were $0.27, a 15.6% decrease when compared to the $0.32 reported for the three months ended June 30, 2023.
Current report
Net interest income for the three months ended June 30, 2024 increased $72 thousand or 0.6% compared to the three months ended June 30, 2023, driven primarily by the increase in yield on interest-earning assets outpacing the increase in costs of interest-bearing liabilities coupled with the decrease in overall funding balances.
Current report
The Company recorded a $292 thousand recovery of provision for credit losses for the three months ended June 30, 2024 compared to a recovery of provision for credit losses of $868 thousand for the three months ended June 30, 2023. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Current report
Non-interest income decreased $130 thousand during the three months ended June 30, 2024 compared to the three months ended June 30, 2023. A portion of this decrease was due to a decrease in BOLI income of $101 thousand due to the surrender of all BOLI policies in July 2023 and a decrease of $48 thousand due to unfavorable variances associated with mark-to-market adjustments on investments related to the Company’s NQDC when compared to the second quarter of 2023. Excluding the effects from the Company’s BOLI policy surrender and mark-to market adjustments on the Company’s NQDC, non-interest income was $520 thousand for the second quarter of 2024 compared to $501 thousand for the second quarter of 2023. During the three months ended June 30, 2024, gains recorded on the sale of the guaranteed portion of SBA 7(a) loans increased $193 thousand due to increased sale activity. This increase in non-interest income was partially offset by lower service charges and fees of $149 thousand due to lower penalty fee income recognized on the early withdrawal of certificates of deposit.
Current report
Non-interest expense increased $78 thousand or 1.0% during the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to increases in data processing expense and professional fees, partially offset by lower FDIC insurance expense and lower salaries and employee benefit expense. The increase in data processing fees was primarily due to contractual increases and volume based activity. The increase in professional fees was due to increased contract costs. The decrease in salaries and employee benefits was due to lower deferred compensation expense, lower incentive accruals, and higher direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and are subsequently amortized into income to match the costs incurred with the economic benefit derived from originating a loan. The decrease in FDIC insurance expense was the result of a lower assessment base. The Company continues to analyze cost savings opportunities on existing leases and material contracts.
Current report
The ROAA for the three months ended June 30, 2024 and June 30, 2023 was 0.70% and 0.77%, respectively. The ROAE for the three
Current report
months ended June 30, 2024 and June 30, 2023 was 6.68% and 8.13%, respectively.
Current report
Tax-Equivalent Net Interest Income
Current report
Net interest income increased $72 thousand or 0.6% on a fully tax-equivalent basis for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, driven primarily by the increase in yield on and volume of interest-earning assets outpacing the increase in costs of interest-bearing liabilities coupled with the decrease in overall funding balances..
Current report
On a fully tax-equivalent basis, the net interest margin was 2.19% for the three months ended June 30, 2024, compared to 2.10% for the three months ended June 30, 2023. The increase in net interest margin was primarily due to an increase in yields on the Company’s interest-earning assets and reduction in volume of time deposits.
Current report
Rate/Volume Analysis
Current report
(1) Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory tax rate of 21%.
Current report
Interest Income
Current report
Interest Expense
Current report
Provision for Credit Losses
Current report
Non-interest Income
Current report
Non-interest income decreased $130 thousand during the three months ended June 30, 2024 compared to the same period in 2023. A portion of this decrease was due to a decrease in BOLI income of $101 thousand due to the surrender of all BOLI policies in July 2023 and a decrease of $48 thousand due to unfavorable variances associated with mark-to-market adjustments on investments related to the Company’s NQDC. In addition, the Company recorded lower service charges and fees of $149 thousand due to lower penalty fee income recognized on the early withdrawal of certificates of deposit. These decreases were partially offset by a $193 thousand increase in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to increased sale activity.
Current report
Non-interest Expense
Current report
Non-interest expense increased $78 thousand or 1.0% during the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily due to increases in data processing expense and professional fees, partially offset by lower FDIC insurance expense and lower salaries and employee benefit expense. The increase in data processing fees was primarily due to contractual increases and volume based activity. The increase in professional fees was due to increased contract costs. The decrease in salaries and employee benefits was due to lower deferred compensation expense, lower incentive accruals, and higher direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and are subsequently amortized into income to match the costs incurred with the economic benefit derived from originating a loan. The decrease in FDIC insurance expense was the result of a lower assessment base. The Company continues to analyze cost savings opportunities on existing leases and material contracts.
Removed paragraphs (3)
Previous report
The Company reported net income of $4.2 million for the three months ended March 31, 2024, a decrease of $2.1 million when compared to the three months ended March 31, 2023. Diluted earnings per share were $0.30 compared to diluted earnings per share of $0.44 for the three months ended March 31, 2023.
Previous report
due to gains recognized on the sale of certain SBA loan sales totaling $133 thousand and increases in insurance commission related revenue.
Previous report
On April 24, 2024, the Board of Directors of the Company declared an annual cash dividend of $0.25 per outstanding share of common stock, payable on July 8, 2024, to shareholders of record as of the close of business on June 28, 2024.
Reworded paragraphs (43)
Previous wording
As with most community banks, the Bank derives a significant portion of its income from interest received on loans and investments. The Bank’s primary source of funding is deposits, both interest-bearing and non-interest-bearing. To account for credit risk inherent in all loans, the Bank maintains an allowance for loan credit losses to absorb lifetime losses on existing loans. The Bank establishes and maintains this allowance by recording a provision for credit losses against earnings. In addition to net interest income, the Bank also generates income through service charges on deposits, insurance commission income, income from bank owned life insurance, merchant services fee income, swap fee income and gain on sale of the guaranteed portion of SBA 7(a) loans. In order to maintain its operations, the Bank incurs various operating expenses which are further described within the “Results of Operations” later in this section.
Current wording
As with most community banks, the Bank derives a significant portion of its income from interest received on loans and investments. The Bank’s primary source of funding is deposits, both interest-bearing and non-interest-bearing. To account for credit risk inherent in all loans, the Bank maintains an allowance for loan credit losses to absorb lifetime losses on existing loans. The Bank establishes and maintains this allowance by recording a provision for credit losses against earnings. In addition to net interest income, the Bank also generates income through service charges on deposits, insurance commission income, merchant services fee income, swap fee income and gain on sale of the guaranteed portion of SBA 7(a) loans. In order to maintain its operations, the Bank incurs various operating expenses which are further described within the “Results of Operations” later in this section.
Previous wording
As of March 31, 2024, the Company had total consolidated assets of $2.25 billion, total loans net of unearned income of $1.82 billion, total deposits of $1.90 billion and total shareholders’ equity of $234.5 million.
Current wording
As of June 30, 2024, the Company had total consolidated assets of $2.27 billion, total loans net of unearned income of $1.83 billion, total deposits of $1.91 billion and total shareholders’ equity of $235.3 million.
Previous wording
The Company’s accounting and reporting policies conform to GAAP, as well as general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements may reflect different estimates,
Current wording
The Company’s accounting and reporting policies conform to GAAP, as well as general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements may reflect different estimates, assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported.
Previous wording
The following table contains selected historical consolidated financial data as of the dates and for the periods shown. The selected balance sheet data as of March 31, 2024 and March 31, 2023 and the selected income statement data for the three months ended March 31, 2024 and March 31, 2023 have been derived from our consolidated financial statements.
Current wording
The following table contains selected historical consolidated financial data as of the dates and for the periods shown. The selected balance sheet data as of June 30, 2024 and June 30, 2023 and the selected income statement data for the three and six months ended June 30, 2024 and June 30, 2023 have been derived from our consolidated financial statements.
Previous wording
Net interest income decreased $2.7 million or 18.9% on a fully tax-equivalent basis for the three months ended March 31, 2024, compared to the three months ended March 31, 2023. The decrease in net interest income was driven by the increase in the costs of interest-bearing liabilities outpacing the increase in yield on interest-earning assets.
Current wording
Net interest income decreased $2.7 million or 10.0% on a fully tax-equivalent basis for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The decrease in net interest income was driven by the increase in the costs of interest-bearing liabilities outpacing the increase in yield on interest-earning assets.
Previous wording
On a fully tax-equivalent basis, the net interest margin was 2.11% for the three months ended March 31, 2024, compared to 2.57% for the three months ended March 31, 2023. The decrease in net interest margin was primarily due to an increase in the cost of interest-bearing liabilities, which more than offset the increase in yields on loans, investments, and interest-bearing deposits in other banks. The cost of interest-bearing liabilities was 3.81% for the first quarter of 2024 compared to 2.25% for the same quarter of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to a 1.55% increase in the cost of interest-bearing deposits resulting from the repricing of the Company’s time deposits coupled with an increase in rates offered on money market, NOW and savings deposit accounts since the first quarter of 2023. The increase in the overall cost of interest-bearing liabilities in the first quarter of 2024 relative to the same period of the prior year is largely due to Federal Reserve Bank rate increases totaling 5.25% between March 2022 and July 2023.
Current wording
On a fully tax-equivalent basis, the net interest margin was 2.15% for the six months ended June 30, 2024, compared to 2.33% for the six months ended June 30, 2023. The decrease in net interest margin was primarily due to an increase in the cost of interest-bearing liabilities, which more than offset the increase in yields on loans, investments, and interest-bearing deposits in other banks. The cost of interest-bearing liabilities was 3.81% for the six months ended June 30, 2024 compared to 2.63% for the six months ended June 30, 2023. The increase in the cost of interest-bearing liabilities was primarily due to a 117 basis points increase in the cost of interest-bearing deposits resulting from the repricing of the Company’s time deposits coupled with an increase in rates offered on money market, NOW and savings deposit accounts since the second quarter of 2023. The increase in the overall cost of interest-bearing liabilities in the first half of 2024 relative to the same period of the prior year is largely due to Federal Reserve Bank rate increases totaling 5.25% between March 2022 and July 2023.
Previous wording
The following table presents the effects of changing rates and volumes on net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects
Current wording
The following table presents the effects of changing rates and volumes on tax-equivalent net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column
Previous wording
attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to volume.
Current wording
shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to volume.
Previous wording
Fully tax-equivalent interest income on loans increased by approximately $3.2 million as a result of volume and an increase in rate. Average loans increased $63 million between the three months ended March 31, 2024 and March 31, 2023, which was primarily attributable to origination volume in the investor real estate and residential loan portfolios subsequent to March 31, 2023.
Current wording
Fully tax-equivalent interest income on loans increased by approximately $5.5 million as a result of an increase in rate and volume. Average loans increased $53.0 million between the six months ended June 30, 2024 and June 30, 2023, which was primarily attributable to origination volume in the investor real estate and residential loan portfolios subsequent to June 30, 2023.
Previous wording
Fully tax-equivalent interest income on investment securities decreased by approximately $1.0 million primarily as a result of a decrease in volume. Average investment securities decreased approximately $192.5 million between the three months ended March 31, 2024 and March 31, 2023. The decrease in investment securities was primarily due to the sale of certain low-yielding investment securities in July 2023, and to a lesser extent, the amortization of securities.
Current wording
Fully tax-equivalent interest income on investment securities decreased by approximately $2.0 million primarily as a result of a decrease in volume. Average investment securities decreased approximately $189.1 million between the six months ended June 30, 2024 and June 30, 2023, primarily due to the sale of certain low-yielding investment securities in July 2023, and to a lesser extent, the amortization of securities.
Previous wording
Interest income on interest-bearing deposits in other banks increased by $1.3 million as a result of an increase in volume and rate. Average interest-bearing deposits in other banks increased approximately $81.4 million between the three months ended March 31, 2024 and March 31, 2023. The increase in interest-bearing deposits in other banks was primarily due to the redeployment of proceeds
Current wording
Interest income on interest-bearing deposits in other banks increased by $2.2 million as a result of an increase in volume. Average interest-bearing deposits in other banks increased approximately $70.9 million between the six months ended June 30, 2024 and June 30, 2023, primarily due to the redeployment of proceeds from the sale of certain low-yielding investment securities in July 2023 to other higher-yielding assets, including interest-bearing deposits in other banks.
Previous wording
Interest expense increased by $6.2 million to $15.2 million for the three months ended March 31, 2024 compared to $9.0 million for the three months ended March 31, 2023, primarily due to an increase in rates on deposits and increase in volume on borrowings. The increase in rates on deposits was primarily a result of the repricing of the Company’s time deposits coupled with an increase in rates offered on deposit accounts subsequent to March 31, 2023 as a result of an increase in benchmark interest rates. The increase in volume on borrowings was primarily a result of the Company’s utilization of BTFP advances subsequent to March 31, 2023.
Current wording
Interest expense increased by $8.5 million to $29.9 million for the six months ended June 30, 2024 compared to $21.4 million for the six months ended June 30, 2023, primarily due to an increase in rates on deposits and increase in volume on borrowings. The increase in rates on deposits was primarily a result of the repricing of the Company’s time deposits coupled with an increase in rates offered on deposit accounts subsequent to June 30, 2023 as a result of an increase in benchmark interest rates. The increase in volume on borrowings was primarily a result of the Company’s utilization of BTFP advances.
Previous wording
The recovery of provision for credit losses during the three months ended March 31, 2024 was primarilya result of changes in the composition of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments. See “Asset Quality” below for additional information on the credit quality of the loan portfolio.
Current wording
The recovery of provision for credit losses during the six months ended June 30, 2024 was primarilya result of changes in the composition of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments. See “Asset Quality” below for additional information on the credit quality of the loan portfolio.
Previous wording
Non-interest income increased $252 thousand during the three months ended March 31, 2024 compared to the same period in 2023. The increase in non-interest income was due in part to non-recurring losses of $202 thousand recognized on the sale of certain investment securities during the first quarter of 2023, partially offset by bank-owned life insurance income of $100 thousand recognized during the prior period. As previously disclosed, the Company surrendered all of its BOLI policies in July 2023. Excluding losses from the non-recurring investment sale and BOLI income recorded during the first quarter of 2023, as well as changes in mark-to-market adjustments of non-qualified deferred compensation plan assets, non-interest income increased $115 thousand or 19.9%. The increase was primarily
Current wording
Non-interest income increased $122 thousand during the six months ended June 30, 2024 compared to the same period of 2023. As previously disclosed, the Company surrendered all of its BOLI policies in July 2023. Excluding the effects from decreased BOLI income of $201 thousand, unfavorable variances associated with mark-to-market adjustments on the Company’s nonqualified deferred compensation plan (“NQDC”) totaling $13 thousand, and non-recurring losses of $202 thousand recognized on the sale of certain investment securities during the first quarter of 2023, non-interest income was $1.2 million for the six months ended June 30, 2024 compared to $1.1 million for the same period in 2023. The increase in non-interest income was primarily due to increases of $326
Previous wording
Non-interest expense increased $154 thousand or 2.0% during the first quarter of 2024 compared to the first quarter of 2023. The increase was primarily due to non-recurring professional fees and directors costs totaling $138 thousand incurred during the first quarter of 2024 in connection with a strategic opportunity that was explored during the three months ended March 31, 2024 that ultimately did not materialize. The increase in data processing expense was primarily related to increased contract costs due to annual increases and increased volume based charges. These increases were partially offset by a decrease in salaries and employee benefits expense due to changes in staffing and a reduction in incentive compensation accruals when compared to the same period of the prior year. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors.
Current wording
Non-interest expense increased $232 thousand or 1.5% during the six months ended June 30, 2024 compared to the same period in 2023. The increase was primarily due to non-recurring professional fees and directors costs totaling $138 thousand incurred during the first quarter of 2024 in connection with a strategic opportunity that was explored during the three months ended March 31, 2024 that ultimately did not materialize. The remaining $93 thousand increase was due to increases in data processing expense and professional fees primarily related to increased contract costs due to annual increases and increased volume based charges. These increases were partially offset by a decrease in salaries and employee benefits expense due to changes in staffing and a reduction in incentive compensation accruals when compared to the same period of the prior year. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors.
Previous wording
The loan portfolio’s yield for the three months ended March 31, 2024 was 5.18% compared to 4.69% for the three months ended March 31, 2023. The increase of 0.49% was primarily attributable to an increase in yield on the Company’s variable rate loans as a result of an increase in interest rates subsequent to March 31, 2023 coupled with a higher weighted average yield on loans originated since the first quarter of 2023.
Current wording
The loan portfolio’s yield for the three months ended June 30, 2024 was 5.20% compared to 4.78% for the three months ended June 30, 2023. The increase of 42 basis points was primarily attributable to an increase in yield on the Company’s variable rate loans as a result of an increase in interest rates subsequent to June 30, 2023 coupled with a higher weighted average yield on loans originated since the second quarter of 2023.
Previous wording
The yield on interest-bearing deposits due from banks for the three months ended March 31, 2024 was 5.53% compared to 4.66% for the three months ended March 31, 2023. The increase of 0.87% was primarily due to a higher federal funds rate during the three months ended March, 2024 when compared to the same period of 2023.
Current wording
The yield on interest-bearing deposits due from banks for the three months ended June 30, 2024 was 5.53% compared to 5.15% for the three months ended June 30, 2023. The increase of 38 basis points was primarily due to a higher average balance during the three months ended June 30, 2024 when compared to the same period of 2023.
Previous wording
Interest income increased by $3.4 million or 14.7% to $27.0 million on a fully tax-equivalent basis for the three months ended March 31, 2024 compared to $23.5 million for the three months ended March 31, 2023, driven by both an increase in rates and volume on interest-earning assets. The increase in rate on interest-earning assets was primarily attributable to the Company’s loan portfolio and interest-bearing deposits due from banks. The increase in volume of average interest-earning assets was primarily attributable to interest-bearing deposits due from banks and the Company’s loan portfolio.
Current wording
Interest income increased by $2.3 million or 9.4% to $26.8 million on a fully tax-equivalent basis for the three months ended June 30, 2024 compared to $24.5 million for the three months ended June 30, 2023, driven by both an increase in rates and volume on interest earning assets. The increase in rates on interest-earning assets was primarily attributable to the Company’s loan portfolio. The increase in volume of average interest-earning assets was primarily attributable to interest-bearing deposits due from banks and the Company’s loan portfolio.
Previous wording
The increase in rates on loans, investment securities, and interest-bearing deposits in other banks was primarily attributable to an increase in benchmark interest rates since March 31, 2023.
Current wording
Interest income on interest-bearing deposits in other banks increased by $919 thousand as a result of an increase in volume. Average interest-bearing deposits in other banks increased approximately $60.5 million between the three months ended June 30, 2024 and June 30, 2023. The increase in interest-bearing deposits in other banks was primarily due to the redeployment of proceeds from the sale of certain low-yielding investment securities in July 2023 to other higher-yielding assets, including interest-bearing deposits in other banks. The increase in rates on loans, investment securities, and interest-bearing deposits in other banks was primarily attributable to an increase in benchmark interest rates since June 30, 2023.
Previous wording
The Company recorded a $776 thousand recovery of provision for credit losses for the three months ended March 31, 2024 compared to a $774 thousand recovery of provision for credit losses for the three months ended March 31, 2023. The recovery of provision for credit losses for the current period that is directly attributable to the funded loan portfolio was $873 thousand.
Current wording
The Company recorded a $292 thousand recovery of provision for credit losses for the three months ended June 30, 2024 compared to a $868 thousand recovery of provision for credit losses for the three months ended June 30, 2023. The recovery of provision for credit losses for the current period that is directly attributable to the funded loan portfolio was $239 thousand.
Previous wording
The following table summarizes non-interest expense for the the three months ended March 31, 2024 or March 31, 2023.
Current wording
The following table summarizes non-interest expense for the three months ended June 30, 2024 and June 30, 2023.
Previous wording
Income tax expense decreased $525 thousand or 30.3% to $1.2 million for the three months ended March 31, 2024 compared to $1.7 million for the three months ended March 31, 2023. Our effective tax rate for the three months ended March 31, 2024 was 22.3% compared to 21.6% for the same period ended March 31, 2023. The increase in our effective tax rate between the comparative periods was primarily due to a decrease in tax benefits associated with our BOLI policies as all policies were surrendered in July 2023.
Current wording
Income tax expense decreased $127 thousand or 10.2% to $1.1 million for the three months ended June 30, 2024 compared to $1.2 million for the three months ended June 30, 2023. Our effective tax rate for the three months ended June 30, 2024 was 22.2% compared to 21.7% for the same period ended June 30, 2023. The increase in our effective tax rate between the comparative periods was primarily due to a decrease in tax benefits associated with our BOLI policies as all policies were surrendered in July 2023.
Previous wording
The Company’s total assets increased $9.3 million or 0.4% to $2.25 billion at March 31, 2024 compared to $2.24 billion at December 31, 2023. The increase in total assets is primarily attributable to increases in interest-bearing deposits in banks of $55.7 million, partially offset by a decrease in loans, net of unearned income of $33.2 million and investments of $12.0 million.
Current wording
The Company’s total assets increased $27.2 million or 1.2% to $2.27 billion at June 30, 2024 compared to $2.24 billion at December 31, 2023. The increase in total assets is primarily attributable to increases in interest-bearing deposits in banks of $81.0 million, partially offset by a decrease in loans, net of unearned income of $32.8 million and investments of $23.9 million.
Previous wording
The Company’s total liabilities increased $4.7 million or 0.2% to $2.02 billion at March 31, 2024 compared to $2.01 billion at December 31, 2023. The increase in total liabilities was attributable to net increases of $13.0 million in borrowings, partially offset by a net decrease in deposits of $5.6 million. During the quarter ended March 31, 2024, the Company paid down its $10.0 million federal funds purchased, refinanced its $54.0 million advance and advanced an additional $23.0 million from the BTFP in January 2024 to secure lower funding costs relative to wholesale deposits and previously outstanding borrowings. Total borrowings as of March 31, 2024 consisted of subordinated debt totaling $24.7 million and the BTFP advance totaling $77.0 million. The decrease in deposits was primarily driven by an $18.9 million decrease inwholesale deposits (Brokered and QwickRate CDs) and $15.2 million decrease in certificates of deposits, partially offset by an increase in interest-bearing demand deposits of $36.6 million.
Current wording
The Company’s total liabilities increased $21.7 million or 1.1% to $2.03 billion at June 30, 2024 compared to $2.01 billion at December 31, 2023. The increase in total liabilities was primarily attributable to net increases of $13.0 million in borrowings and a net increase in deposits of $6.2 million. During the six months ended June 30, 2024, the Company paid down its $10.0 million federal funds purchased, refinanced its $54.0 million advance and advanced an additional $23.0 million from the BTFP in January 2024 to secure lower funding costs relative to wholesale deposits and previously outstanding borrowings. Total borrowings as of June 30, 2024 consisted of subordinated debt totaling $24.7 million and the BTFP advance totaling $77.0 million. The increase in deposits was primarily driven by an increase in interest bearing and non-interest bearing demand deposits of $60.0 million and $25.8 million, respectively, partially offset by decreases in time deposits of $73.4 million.
Previous wording
Shareholders’ equity increased $4.6 million or 2.0% to $234.6 million at March 31, 2024 compared to $229.9 million at December 31, 2023. The increase in shareholders’ equity was primarily attributable to an increase in net income and additional paid-in capital as a result of option exercises during the three months ended March 31, 2024, partially offset by a decrease in accumulated other comprehensive income due to unfavorable market value related adjustments on the Company’s available-for-sale investment portfolio. Book value per share was $16.51 as of March 31, 2024 compared to $16.25 as of December 31, 2023.
Current wording
Shareholders’ equity increased $5.4 million or 2.4% to $235.3 million at June 30, 2024 compared to $229.9 million at December 31, 2023. The increase in shareholders’ equity was primarily attributable to an increase in net income and additional paid-in capital as a result of option exercises during the six months ended June 30, 2024. Book value per share was $16.54 as of June 30, 2024 compared to $16.25 as of December 31, 2023.
Previous wording
The Company maintains a primarily fixed income investment securities portfolio that had a total carrying value of $253.4 million at March 31, 2024 and $265.5 million at December 31, 2023. The investment portfolio is used as a source of liquidity, interest income, and credit risk diversification, as well as to manage rate sensitivity and provide collateral for secured public funds and secured credit lines. Investment securities are classified as available-for-sale or held-to-maturity based on management’s investment strategy and management’s assessment of the intent and ability to hold the securities until maturity. Investment securities that we may sell prior to maturity in response to changes in management’s investment strategy, liquidity needs, interest rate risk profile or for other reasons are classified as available-for-sale. The Company also had restricted stock and equity securities within its investment securities portfolio with total carrying values of $5.0 million and $3.0 million, respectively, as of March 31, 2024 and $5.0 million and $2.8 million, respectively, as of December 31, 2023.
Current wording
The Company maintains a primarily fixed income investment securities portfolio that had a total carrying value of $241.6 million at June 30, 2024 and $265.5 million at December 31, 2023. The investment portfolio is used as a source of liquidity, interest income, and credit risk diversification, as well as to manage rate sensitivity and provide collateral for secured public funds and secured credit lines. Investment securities are classified as available-for-sale or held-to-maturity based on management’s investment strategy and management’s assessment of the intent and ability to hold the securities until maturity. Investment securities that we may sell prior to maturity in response to changes in management’s investment strategy, liquidity needs, interest rate risk profile or for other reasons are classified as available-for-sale. The Company also had restricted stock and equity securities within its investment securities portfolio with total carrying values of $5.0 million and $3.0 million, respectively, as of June 30, 2024 and $5.0 million and $2.8 million, respectively, as of December 31, 2023.
Previous wording
The Company did not purchase or sell investment securities during the three months ended March 31, 2024. The Company had $11.6 million in maturities and principal repayments on securities during the three months ended March 31, 2024, which was comprised of $4.6 million of mortgage-backed securities, $1.0 million of collateralized mortgage obligation securities, and $6.0 million of U.S. Treasuries.
Current wording
The Company did not purchase or sell investment securities during the three months ended June 30, 2024. The Company had $23.7 million in maturities and principal repayments on securities during the six months ended June 30, 2024, which was comprised of $9.6 million of mortgage-backed securities, $2.1 million of collateralized mortgage obligation securities, and $12.0 million of U.S. Treasuries.
Previous wording
an estimated weighted average remaining life of approximately 3.0 years and 3.0 years as of March 31, 2024 and December 31, 2023, respectively. The held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 6.5 years and 6.7 years as of March 31, 2024 and December 31, 2023, respectively.
Current wording
In the prevailing rate environments as of June 30, 2024 and December 31, 2023, the Company’s investment portfolio had an estimated weighted average remaining life of approximately 4.2 years and 4.2 years, respectively. The available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 2.9 years and 3.0 years as of June 30, 2024 and December 31, 2023, respectively. The held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 6.3 years and 6.7 years as of June 30, 2024 and December 31, 2023, respectively.
Previous wording
Gross loans, net of unearned income, decreased $34.0 million or 1.8% to $1.83 billion as of March 31, 2024 compared to $1.86 billion as of December 31, 2023. The Company continues to maintain its disciplined underwriting standards while prudently pursuing loan growth opportunities that provide acceptable risk-adjusted returns.
Current wording
Gross loans, net of unearned income, decreased $32.8 million or 1.8% to $1.83 billion as of June 30, 2024 compared to $1.86 billion as of December 31, 2023. The Company continues to maintain its disciplined underwriting standards while prudently pursuing loan growth opportunities that provide acceptable risk-adjusted returns.
Previous wording
The Company’s asset quality remained strong through the first quarter of 2024. The Company did not have any nonperforming assets, which includes nonperforming loans and OREO, as of March 31, 2024 or December 31, 2023. As a result, the Company did not have any nonperforming loans, which consists of loans that are 90 days or more past due or loans placed on nonaccrual as of March 31, 2024 or December 31, 2023.
Current wording
The Company’s asset quality remained strong through the first half of 2024. The Company did not have any nonperforming assets, which includes nonperforming loans and OREO, as of June 30, 2024 or December 31, 2023. As a result, the Company did not have any nonperforming loans, which consists of loans that are 90 days or more past due or loans placed on nonaccrual as of June 30, 2024 or December 31, 2023.
Previous wording
The Company did not have any nonaccrual loans as of March 31, 2024 or December 31, 2023 nor were there any loans placed on nonaccrual during those periods. A loan is placed on nonaccrual status when (i) the Company is advised by the borrower that scheduled principal or interest payments cannot be met, (ii) when management’s best judgment indicates that payment in full of principal and interest can no longer be expected, or (iii) when any such loan or obligation becomes delinquent for 90 days, unless it is both well-secured and in the process of collection. As a result, the Company did not have any interest income that would have been recognized on nonaccrual loans for the three months ended March 31, 2024 or March 31, 2023.
Current wording
The Company did not have any nonaccrual loans as of June 30, 2024 or December 31, 2023 nor were there any loans placed on nonaccrual during those periods. A loan is placed on nonaccrual status when (i) the Company is advised by the borrower that scheduled principal or interest payments cannot be met, (ii) when management’s best judgment indicates that payment in full of principal and
Previous wording
The Company did not make any loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2024 or March 31, 2023.
Current wording
The Company did not make any loan modifications to borrowers experiencing financial difficulty during the three or six months ended June 30, 2024 or the three or six months ended June 30, 2023.
Previous wording
The Company recorded net recoveries of $1 thousand during the three months ended March 31, 2024 and three months ended March 31, 2023. At March 31, 2024, the allowance for loan credit losses was $18.7 million or 1.02% of outstanding loans, net of unearned income, compared to $19.5 million or 1.05% of outstanding loans, net of unearned income, at December 31, 2023. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, was primarily a result of changes in the composition and volume of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
Current wording
The Company recorded no net charge-offs or recoveries during the three months ended June 30, 2024 compared to a net recovery of $1 thousand during the three months ended June 30, 2023. The Company recorded net recoveries of $1 thousand during the six months ended June 30, 2024 and $2 thousand during the six months ended June 30, 2023. At June 30, 2024, the allowance for loan credit losses was $18.4 million or 1.01% of outstanding loans, net of unearned income, compared to $19.5 million or 1.05% of outstanding loans, net of unearned income, at December 31, 2023. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, was primarily a result of changes in the composition and volume of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
Previous wording
Total deposits decreased $5.6 million or 0.3% to $1.90 billion as of March 31, 2024 compared to $1.91 billion as of December 31, 2023.
Current wording
Total deposits increased $6.2 million or 0.3% to $1.91 billion as of June 30, 2024 compared to $1.91 billion as of December 31, 2023.
Previous wording
Non-interest bearing demand deposits decreased $6.7 million or 1.6% to $404.7 million as of March 31, 2024 compared to $411.4 million at December 31, 2023. Non-interest bearing demand deposits represented 21.3% and 21.6% of total deposits at March 31, 2024 and December 31, 2023, respectively.
Current wording
Non-interest bearing demand deposits increased $25.8 million or 6.3% to $437.2 million as of June 30, 2024 compared to $411.4 million at December 31, 2023. Non-interest bearing demand deposits represented 22.9% and 21.6% of total deposits at June 30, 2024 and December 31, 2023, respectively.
Previous wording
Interest-bearing deposits, which include NOW accounts, regular savings accounts, money market accounts, and time deposits, increased $1.1 million or 0.1% to $1.50 billion as of March 31, 2024 compared to $1.50 billion as of December 31, 2023. Interest-bearing deposits represented 78.7% and 78.4% of total deposits at March 31, 2024 and December 31, 2023, respectively.
Current wording
Interest-bearing deposits, which include NOW accounts, regular savings accounts, money market accounts, and time deposits, decreased $19.5 million or 1.3% to $1.48 billion as of June 30, 2024 compared to $1.50 billion as of December 31, 2023. Interest-bearing deposits represented 77.1% and 78.4% of total deposits at June 30, 2024 and December 31, 2023, respectively.
Previous wording
The Company focuses on funding asset growth with deposit accounts, with an emphasis on core deposit growth, as its primary source of deposits. Core deposits consist of checking accounts, NOW accounts, money market accounts, regular savings accounts, time deposits, reciprocal IntraFi Demand® deposits, IntraFi Money Market® deposits and IntraFi CD® deposits. Core deposits totaled $1.59 billion or 83.6% of total deposits and $1.58 billion or 82.7% of total deposits at March 31, 2024 and December 31, 2023, respectively.
Current wording
The Company focuses on funding asset growth with deposit accounts, with an emphasis on core deposit growth, as its primary source of deposits. Core deposits consist of checking accounts, NOW accounts, money market accounts, regular savings accounts, time deposits, reciprocal IntraFi Demand® deposits, IntraFi Money Market® deposits and IntraFi CD® deposits. Core deposits totaled $1.62 billion or 84.4% of total deposits and $1.58 billion or 82.7% of total deposits at June 30, 2024 and December 31, 2023, respectively.
Previous wording
The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) was estimated at $796.4 million at March 31, 2024 and $802.8 million at December 31, 2023. Included in these amounts were $169.3 million and $168.7 million of public fund deposits that are collateralized by securities as of March 31, 2024 and December 31, 2023, respectively. Deposits that were not insured or not collateralized by securities represented 33% and 33% of total deposits, respectively, as of March 31, 2024 and December 31, 2023.
Current wording
The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) was estimated at $843.3 million at June 30, 2024 and $802.8 million at December 31, 2023. Included in these amounts were $166.3 million and $168.7 million of public fund deposits that are collateralized by securities as of June 30, 2024 and December 31, 2023, respectively. Deposits that were not insured or not collateralized by securities represented 35% and 33% of total deposits, respectively, as of June 30, 2024 and December 31, 2023.
Previous wording
Shareholders’ equity increased $4.6 million or 2.0% to $234.6 million at March 31, 2024 compared to $229.9 million at December 31, 2023. The increase in shareholders’ equity was primarily attributable to an increase in net income and additional paid-in capital as a result of option exercises during the three months ended March 31, 2024, partially offset by a decrease in accumulated other comprehensive income due to unfavorable market value related adjustments on the Company’s available-for-sale investment portfolio. Book value per share was $16.51 as of March 31, 2024 compared to $16.25 as of December 31, 2023.
Current wording
Shareholders’ equity increased $5.4 million or 2.4% to $235.3 million at June 30, 2024 compared to $229.9 million at December 31, 2023. The increase in shareholders’ equity was primarily attributable to an increase in net income and additional paid-in capital as a result of option exercises during the six months ended June 30, 2024. Book value per share was $16.54 as of June 30, 2024 compared to $16.25 as of December 31, 2023.
Previous wording
In August of 2023, the Company’s Board of Directors authorized the extension of the Company’s stock repurchase program that was originally adopted in August of 2021. Under the stock repurchase program, the Company may repurchase up to 700,000 shares of its outstanding common stock, or 5.0% of outstanding shares as of March 31, 2024. The stock repurchase program will expire on August 31, 2024 or earlier if all the authorized shares have been repurchased. The Company has not repurchased any of its outstanding common stock under the program as of March 31, 2024.
Current wording
In July of 2024, the Company’s Board of Directors authorized the extension of the Company’s stock repurchase program that was originally adopted in August of 2021. Under the stock repurchase program, the Company may repurchase up to 700,000 shares of its outstanding common stock, or 5.0% of outstanding shares as of June 30, 2024. The stock repurchase program will expire on August 31, 2025, or earlier if all the authorized shares have been repurchased. The Company repurchased 3,003 shares of its outstanding common stock under the program during the three and six months ended June 30, 2024.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (19)
Current report — wording carried from elsewhere
The following table presents the average balance for each principal balance sheet category, and the amount of interest income or expense associated with that category, as well as corresponding average yields earned and rates paid for the six months ended June 30, 2024 and June 30, 2023.
Current report — wording carried from elsewhere
The loan portfolio’s yield for the six months ended June 30, 2024 was 5.19% compared to 4.73% for the six months ended June 30, 2023. The increase of 46 basis points was primarily attributable to an increase in yield on the Company’s variable rate loans as a result of an increase in interest rates subsequent to June 30, 2023 coupled with a higher weighted average yield on loans originated since the first half of 2023.
Current report — wording carried from elsewhere
The yield on interest-bearing deposits due from banks for the six months ended June 30, 2024 was 5.53% compared to 4.96% for the six months ended June 30, 2023. The increase of 57 basis points was primarily due to a higher federal funds rate during the six months ended June 30, 2024 when compared to the same period of 2023.
Current report — wording carried from elsewhere
Interest income increased by $5.8 million or 12.0% to $53.8 million on a fully tax-equivalent basis for the six months ended June 30, 2024 compared to $48.0 million for the six months ended June 30, 2023, driven by both an increase in rates and volume on interest-earning assets. The increase in rate on interest-earning assets was primarily attributable to the Company’s loan portfolio. The increase in volume of average interest-earning assets was primarily attributable to interest-bearing deposits due from banks and the Company’s loan portfolio.
Current report — wording carried from elsewhere
The Company recorded a $1.1 million recovery of provision for credit losses for the six months ended June 30, 2024 compared to a $1.6 million recovery of provision for credit losses for the six months ended June 30, 2023. The recovery of provision for credit losses for the current period that is directly attributable to the funded loan portfolio was $1.1 million.
Current report — wording carried from elsewhere
The following table summarizes non-interest expense for the six months ended June 30, 2024 and June 30, 2023.
Current report — wording carried from elsewhere
Income tax expense decreased $652 thousand or 21.9% to $2.3 million for the six months ended June 30, 2024 compared to $3.0 million for the six months ended June 30, 2023. Our effective tax rate for the six months ended June 30, 2024 was 22.3% compared to 21.6% for the same period ended June 30, 2023. The increase in our effective tax rate between the comparative periods was primarily due to a decrease in tax benefits associated with our BOLI policies as all policies were surrendered in July 2023.
Current report — wording carried from elsewhere
Net Interest Income and Net Interest Margin
Current report — wording carried from elsewhere
Average Balance Sheets and Interest Rates on Interest-Earning Assets and Interest-Bearing Liabilities
Current report — wording carried from elsewhere
Tax-equivalent net interest margin as presented above is calculated by dividing tax-equivalent net interest income by total average earning assets. Net interest income, on a tax-equivalent basis, is a financial measure that the Company believes provides a more accurate picture of the interest margin for comparative purposes. Tax-equivalent net interest income is calculated by adding the tax benefit on certain securities and loans, whose interest is tax-exempt, to total interest income then subtracting total interest expense. The following table, “Tax-Equivalent Net Interest Income,” reconciles net interest income to tax-equivalent net interest income, which is a non-GAAP measure.
Current report — wording carried from elsewhere
The following table presents the effects of changing rates and volumes on tax-equivalent net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to volume.
Current report — wording carried from elsewhere
(2) The Company did not have any loans on nonaccrual as of June 30, 2024 or June 30, 2023.
Current report — wording carried from elsewhere
Fully tax-equivalent interest income on loans increased by approximately $2.3 million as a result of volume and an increase in rates. Average loans increased $42.9 million between the three months ended June 30, 2024 and the three months ended June 30, 2023, which was primarily attributable to origination volume in the investor real estate and residential loan portfolios subsequent to June 30, 2023.
Current report — wording carried from elsewhere
Fully tax-equivalent interest income on investment securities decreased by approximately $941 thousand primarily as a result of a decrease in volume. Average investment securities decreased approximately $185.8 million between the three months ended June 30, 2024 and June 30, 2023 primarily due to the sale of certain low-yielding investment securities in July 2023, and to a lesser extent, the amortization of securities.
Current report — wording carried from elsewhere
Interest expense increased by $2.3 million to $14.7 million for the three months ended June 30, 2024 compared to $12.4 million for the three months ended June 30, 2023, primarily due to an increase in rates on deposits and increase in volume on borrowings. The increase in rates on deposits was primarily a result of the repricing of the Company’s time deposits coupled with an increase in rates offered on deposit accounts subsequent to June 30, 2023 as a result of an increase in benchmark interest rates. The increase in borrowings was primarily a result of the Company’s BTFP advances.
Current report — wording carried from elsewhere
The recovery of provision for credit losses during the three months ended June 30, 2024 was primarily a result of changes in the composition of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments. See “Asset Quality” below for additional information on the credit quality of the loan portfolio.
Current report — wording carried from elsewhere
interest can no longer be expected, or (iii) when any such loan or obligation becomes delinquent for 90 days, unless it is both well-secured and in the process of collection. As a result, the Company did not have any interest income that would have been recognized on nonaccrual loans for the three or six months ended June 30, 2024 or the three or six months ended June 30, 2023.
Current report — wording carried from elsewhere
The following table summarizes the Company’s loan loss experience by loan portfolio for the six months ended June 30, 2024 and June 30, 2023.
Current report — wording carried from elsewhere
The following table sets forth the average balances of deposits and the average interest rates paid for the six months ended June 30, 2024 and June 30, 2023.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported.
Previous report — wording carried elsewhere
from the sale of certain low-yielding investment securities in July 2023 to other higher-yielding assets, including interest-bearing deposits in other banks.
Previous report — wording carried elsewhere
In the prevailing rate environments as of March 31, 2024 and December 31, 2023, the Company’s investment portfolio had an estimated weighted average remaining life of approximately 4.3 years and 4.2 years, respectively. The available-for-sale investment portfolio had