John Marshall Bancorp, Inc.
For the period ended Mar 31, 2025. Filed May 13, 2025.
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.
Mar 31, 2025 · Filed May 13, 2025
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 2024-09-30; filed 2024-11-13.
0001558370-24-015445
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001558370-25-007505
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 156 previous paragraphs and 100 current paragraphs.
59 unchanged; 34 reworded; 7 added; 50 removed; 13 previous and 0 current paragraphs rearranged.
Tables are not compared: 88 previous and 59 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 (7)
Current report
The Company reported net income of $4.8 million for the three months ended March 31, 2025, an increase of $0.6 million when compared to the three months ended March 31, 2024. Diluted earnings per share were $0.34 for the three months ended March 31, 2025, compared to diluted earnings per share of $0.30 for the three months ended March 31, 2024.
Current report
Net interest income increased $2.4 million or 20.0% on a fully tax-equivalent basis for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, driven primarily by the increase in loan yields, reduction in the average balance of maturing deposits and borrowings, and the increase in the average balance of loans.
Current report
During the quarter ending March 31, 2025, our funded construction and land development loans grew by $8.3 million which resulted in a $277 thousand increase to the reserve. This increase was partially offset by a decrease in our funded commercial loans of $8.4 million which resulted in a decrease of $113 thousand to the reserve.
Current report
Non-interest income was $505 thousand for the first quarter of 2025 compared to $818 thousand for the first quarter of 2024. The $313 thousand decrease in non-interest income was primarily attributable to a decrease of $100 thousand due to unfavorable mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan (“NQDC”), a $97 thousand decrease in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to decreased sale activity, a $64 thousand decrease in swap fee income and a $39 thousand decrease in insurance commissions.
Current report
Non-interest expense increased $324 thousand or 4.1% during the first quarter of 2025 compared to the first quarter of 2024 primarily as a result of an increase in salary and employee benefit expense. The $289 thousand or 6.0% increase in salary and employee benefit expense stemmed from the hiring of additional personnel. The Company hired three business development officers during the three months ended March 31, 2025. The Company’s occupancy expense decreased $44 thousand or 9.8% when comparing the three months ended March 31, 2025 to the same period in 2024. The decrease resulted from relocating a branch to a lower cost and more favorable location. Furniture and equipment expenses increased $19 thousand or 6.4% for the three months ended March 31, 2025 versus the comparable quarter a year ago. The increase resulted from investment in and maintenance of technology. Other expenses for the three months ended March 31, 2025 increased $60 thousand or 2.5% when compared to the three months ended March 31, 2024. Increases primarily in data processing and marketing were partially offset by a reduction in professional fees.
Current report
Income tax expense increased $0.2 million to $1.4 million for the three months ended March 31, 2025 compared to $1.2 million for the three months ended March 31, 2024.
Current report
Total deposits increased $29.8 million or 1.6% to $1.92 billion as of March 31, 2025 compared to $1.89 billion as of December 31, 2024.
Removed paragraphs (50)
Previous report
Results of Operations – Nine Months Ended September 30, 2024 and September 30, 2023
Previous report
Net income for the nine months ended September 30, 2024 increased $11.7 million to $12.3 million compared to $0.7 million for the same period of 2023. This increase was primarily attributable to the Company selling certain lower-yielding available-for-sale investment securities with a total par value of $161.2 million and selling $21.4 million of BOLI contracts during the third quarter of 2023 (the “Restructuring”), which resulted in a non-recurring, after-tax loss of $14.6 million. Core net income (Non-GAAP), defined as net income less the after tax loss stemming from the Restructuring, was $15.3 million for the nine months ended September 30, 2023. Diluted earnings per share for the nine months ended September 30, 2024 were $0.87, an increase when compared to the $0.05 reported for the nine months ended September 30, 2023.
Previous report
Net interest income for the nine months ended September 30, 2024 decreased $1.5 million or 3.8% 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.
Previous report
The Company recorded a $0.7 million recovery of credit losses for the nine months ended September 30, 2024 compared to a $2.5 million recovery of credit losses for the nine month ended September 30, 2023. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Previous report
Non-interest income was $2.0 million for the nine months ended September 30, 2024 compared to a loss of $15.6 million for the nine months ended September 30, 2023. Core non-interest income (Non-GAAP), defined as reported non-interest income excluding the $17.1 million loss stemming from the bond sale portion of the Restructuring, was $1.6 million for the nine months ended September 30, 2023. The 28.3% increase in non-interest income compared to non-interest income (Non-GAAP) of $440 thousand was primarily attributable to a $459 thousand increase in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to increased sale activity.
Previous report
Non-interest expense increased $602 thousand or 2.6% during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was primarily due to a $322 thousand non-recurring reversal of a litigation reserve during the third quarter of 2023 and previously disclosed non-recurring expenses totaling $138 thousand incurred during the first quarter of 2024. The first quarter 2024 non-recurring expenses were incurred in connection with a strategic opportunity that was explored and ultimately did not materialize. Excluding the effects of the $322 thousand reversal in 2023 and non-recurring expenses totaling $138 thousand incurred during 2024, non-interest expense increased $142 thousand or 0.6% during the adjusted nine months ended September 30, 2024 when compared to adjusted nine months ended September 30, 2023. The increase was primarily due to increases in professional fees and data processing expense, partially offset by lower salaries and employee benefit expense. The increase in professional fees was due to increased contract costs and services. The increase in data processing fees was primarily due to contractual increases and volume based activity. The decrease in salaries and employee benefits was due to lower incentive accruals and higher direct loan origination costs when compared to the same period of the prior year, partially offset by higher deferred compensation expense as result of mark-to-market fluctuations on the Company’s nonqualified deferred compensation plan (“NQDC”).
Previous report
The ROAA for the nine months ended September 30, 2024 and September 30, 2023 was 0.73% and 0.04%, respectively. Core ROAA (Non-GAAP), defined as average assets divided by the annualized core net income (Non-GAAP) by the average assets, for the nine months ended September 30, 2023 was 0.87%. The ROAE for the nine months ended September 30, 2024 and September 30, 2023 was 6.97% and 0.40%, respectively. Core ROAE (Non-GAAP), defined as average equity divided by the annualized net income by the average equity, for the nine months ended September 30, 2023 was 9.25%.
Previous report
The following table reconciles net income to core net income, which is a non-GAAP measure, and outlines reported (GAAP) and core (Non-GAAP) diluted earnings per share, annualized ROAA and annualized ROAE as follows:
Previous report
Management’s discussion contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental non-GAAP information provides a better comparison of the impact of the Restructuring where the Company sold certain lower-yielding available-for-sale investment securities with a total par value of $161.2 million and surrendered $21.4 million BOLI contracts, resulting in a non-recurring, after-tax loss of $14.6 million. The sale of the available-for-sale securities did not impact book-value-per-share as the after-tax loss of $13.5 million was already reflected in accumulated other comprehensive loss as of June 30, 2023. The remaining $1.1 million after-tax loss stems from the taxation on the gain associated with the expected cash payout from the BOLI policies. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in management discussion consist of the following:
Previous report
Non-interest income, income before taxes, income tax expense, net income, earnings per share (basic and diluted), return on average assets (annualized), return on average equity (annualized). These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Please refer to the Reconciliation of Certain Non-GAAP Financial Measures table for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
Previous report
Net interest income decreased $1.5 million or 4.0% on a fully tax-equivalent basis for the nine months ended September 30, 2024, compared to the nine months ended September 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 report
On a fully tax-equivalent basis, the net interest margin was 2.20% for the nine months ended September 30, 2024, compared to 2.24% for the nine months ended September 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 3.83% for the nine months ended September 30, 2024 compared to 2.89% for the nine months ended September 30, 2023. The increase in the cost of interest-bearing liabilities was primarily due to a 94 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 third quarter of 2023. The increase in the overall cost of interest-bearing liabilities during the first three quarters 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 report
The loan portfolio’s yield for the nine months ended September 30, 2024 was 5.24% compared to 4.78% for the nine months ended September 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 September 30, 2023 coupled with a higher weighted average yield on loans originated since the third quarter of 2023.
Previous report
The yield on interest-bearing deposits due from banks for the nine months ended September 30, 2024 was 5.50% compared to 5.23% for the nine months ended September 30, 2023. The increase of 27 basis points was primarily due to a higher federal funds rate during the nine months ended September 30, 2024 when compared to the same period of 2023.
Previous report
Interest income increased by $7.9 million or 10.6% to $82.3 million on a fully tax-equivalent basis for the nine months ended September 30, 2024 compared to $74.4 million for the nine months ended September 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.
Previous report
Fully tax-equivalent interest income on loans increased by approximately $7.9 million as a result of an increase in rate and volume. Average loans increased $44.5 million between the nine months ended September 30, 2024 and September 30, 2023, which was primarily attributable to origination volume in the investor real estate and residential loan portfolios subsequent to September 30, 2023. That was partially offset by loan payoffs in commercial owner-occupied real estate loans subsequent to September 30, 2023.
Previous report
Fully tax-equivalent interest income on investment securities decreased by approximately $2.3 million primarily as a result of a decrease in volume. Average investment securities decreased approximately $145.7 million between the nine months ended September 30, 2024 and September 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 report
Interest income on interest-bearing deposits in other banks increased by $2.3 million as a result of an increase in volume. Average interest-bearing deposits in other banks increased approximately $50.0 million between the nine months ended September 30, 2024 and September 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 report
Interest expense increased by $9.4 million to $45.2 million for the nine months ended September 30, 2024 compared to $35.7 million for the nine months ended September 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 September 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 report
The Company recorded a $0.7 million recovery of provision for credit losses for the nine months ended September 30, 2024 compared to a $2.5 million recovery of provision for credit losses for the nine months ended September 30, 2023. The recovery of and provision for credit losses for the current period that is directly attributable to the funded and unfunded loan portfolio was $(1.1) million and $0.4 million, respectively.
Previous report
The Company’s recurring sources of non-interest income consist primarily of interchange income, gains on sale of government guaranteed loans, service charges on deposit accounts and insurance commissions. Generally speaking, loan fees are included in interest income on the loan portfolio and not reported as non-interest income.
Previous report
The following table summarizes non-interest income for the nine months ended September 30, 2024 and September 30, 2023.
Previous report
Non-interest income increased $17.5 million during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. As previously disclosed, the Company recorded a loss on the sale of certain available-for-sale bonds of $17.1 million during the third quarter 2023. Core non-interest income (Non-GAAP) for the nine months ended September 30, 2023 was $1.5 million. The 28.3% increase in non-interest income compared to core non-interest income (Non-GAAP) of $440 thousand was primarily attributable to a $459 thousand increase in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to increased sale activity.
Previous report
Generally, non-interest expense is composed of all employee expenses and costs associated with operating our facilities, obtaining and retaining customer relationships and providing banking services. The largest component of non-interest expense is salaries and employee benefits. Non-interest expense also includes operational expenses, such as occupancy and equipment expenses, data processing expenses, professional fees, advertising expenses and other general and administrative expenses, including FDIC assessments, and Virginia state franchise taxes.
Previous report
Non-interest expense increased $602 thousand or 2.6% during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was primarily due to a $322 thousand non-recurring reversal of a litigation reserve during the third quarter of 2023 and previously disclosed non-recurring expenses totaling $138 thousand incurred during the first quarter of 2024. The first quarter 2024 non-recurring expenses were incurred in connection with a strategic opportunity that was explored and ultimately did not materialize. Excluding the effects of the $322 thousand reversal in 2023 and non-recurring expenses totaling $138 thousand incurred during 2024, non-interest expense increased $142 thousand or 0.6% during the adjusted nine months ended September 30, 2024 when compared to adjusted nine months ended September 30, 2023. The increase was primarily due to increases in professional fees and data processing expense, partially offset by lower salaries and employee benefit expense. The increase in professional fees was due to increased contract costs and services. The increase in data processing fees was primarily due to contractual increases and volume based activity. The decrease in salaries and employee benefits was due to lower incentive accruals and higher direct loan origination costs when compared to the same period of the prior year, partially offset by higher deferred compensation expense as result of mark-to-market fluctuations on the Company’s NQDC.
Previous report
Income tax expense increased $2.0 million or 137.2% to $3.4 million for the nine months ended September 30, 2024 compared to $1.4 million for the nine months ended September 30, 2023. Our effective tax rate for the nine months ended September 30, 2024 was 21.7% compared to 20.5% for the nine months ended September 30, 2023, when excluding the impact of the Restructuring (Non-GAAP).
Previous report
Overview
Previous report
Net income for the three months ended September 30, 2024 increased $14.3 million to $4.2 million compared to a net loss of $10.1 million for the three months ended September 30, 2023. The previously disclosed Restructuring, whereby the Company sold certain lower-yielding available-for-sale investment securities with a total par value of $161.2 million and agreed to surrender $21.4 million of BOLI contracts, resulted in a non-recurring, after-tax loss of $14.6 million that was recorded during the third quarter of 2023. Core net income (Non-GAAP), defined as reported net income excluding the non-recurring after-tax loss and taxes paid in conjunction with the Restructuring, was $4.5 million for the third quarter of 2023. Diluted earnings per share for the three months ended September 30, 2024 were $0.30, an increase of $1.02 when compared to the $(0.72) reported for the three months ended September 30, 2023. Core diluted earnings per share (Non GAAP) for the three months ended September 30, 2023 was $0.32.
Previous report
Net interest income for the three months ended September 30, 2024 increased $1.2 million or 9.8% compared to the three months ended September 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.
Previous report
The Company recorded a $400 thousand provision for credit losses for the three months ended September 30, 2024 compared to a recovery of provision for credit losses of $829 thousand for the three months ended September 30, 2023. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Previous report
Non-interest income was $617 thousand for the third quarter of 2024 compared to a loss of $16.8 million for the third quarter of 2023. Core non-interest income (Non-GAAP), defined as reported non-interest income excluding the $17.1 million loss stemming from the bond sale portion of the Restructuring, was $299 thousand for the third quarter 2023. The increase in non-interest income compared to core non-interest income (Non-GAAP) of $318 thousand was primarily attributable to an increase of $199 thousand due to favorable mark-to-market adjustments on investments related to the Company’s NQDC and a $133 thousand increase in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to increased sale activity. These increases were partially offset by a decrease in BOLI income of $23 thousand due to the surrender of all BOLI policies in July 2023.
Previous report
Non-interest expense increased $371 thousand or 4.8% during the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily due to a $322 thousand non-recurring reversal of a litigation reserve during the third quarter of 2023. Excluding the effects of the $322 thousand reversal in 2023, non-interest expense increased $49 thousand or 0.6% during the third quarter of 2024 when compared to adjusted third quarter of 2023. The increase was primarily due to increases in professional fees and data processing expense, partially offset by lower salaries and employee benefit expense. The increase in professional fees was due to increased contract costs and services. The increase in data processing fees was primarily due to contractual increases and volume based activity. The decrease in salaries and employee benefits was due to lower incentive accruals and higher direct loan origination costs when compared to the same period of the prior year, partially offset by higher deferred compensation expense as result of mark-to-market fluctuations on the Company’s NQDC. The Company continues to analyze cost savings opportunities on existing leases and material contracts.
Previous report
The ROAA for the three months ended September 30, 2024 and September 30, 2023 was 0.73% and (1.73)%, respectively. Core ROAA (Non-GAAP) for the three months ended September 30, 2023 was 0.76%. The ROAE for the three months ended September 30, 2024 and September 30, 2023 was 7.00% and (18.24)%, respectively. Core ROAE (Non-GAAP) for the three months ended September 30, 2023 was 8.07%
Previous report
The following table reconciles net income to core net income, which is a non-GAAP measure, and outlines reported (GAAP) and core (Non-GAAP) diluted earnings per share, annualized ROAA and annualized ROAE as follows:
Previous report
Tax-Equivalent Net Interest Income
Previous report
Net interest income increased $1.2 million or 9.8% on a fully tax-equivalent basis for the three months ended September 30, 2024, compared to the three months ended September 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.
Previous report
The yield on interest-bearing deposits due from banks for the three months ended September 30, 2024 was 5.46% compared to 5.43% for the three months ended September 30, 2023. The increase of 3 basis points was primarily due to a higher average balance during the three months ended September 30, 2024 when compared to the same period of 2023.
Previous report
Rate/Volume Analysis
Previous report
Interest Income
Previous report
Interest Expense
Showing the first 40 of 50 passages. Open the source sections for the rest.
Reworded paragraphs (34)
Previous wording
This discussion and analysis contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this report consist of core net income, core non-interest income, core return on average assets (annualized), core return on average equity (annualized), core dilutive earnings per share, tax-equivalent net interest income and tax-equivalent net interest margin.
Current wording
This discussion and analysis contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this report consist of tax-equivalent net interest income and tax-equivalent net interest margin.
Previous wording
These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Where the non-GAAP financial measure is used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure, as well as a statement of the company’s reasons for utilizing the non-GAAP financial measure, can be found within this discussion and analysis.
Current wording
These disclosures should not be viewed as a substitute for or more important than financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Where the non-GAAP financial measure is used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure, as well as a statement of the company’s reasons for utilizing the non-GAAP financial measure, can be found within this discussion and analysis.
Previous wording
As of September 30, 2024, the Company had total consolidated assets of $2.27 billion, total loans net of unearned income of $1.82 billion, total deposits of $1.94 billion and total shareholders’ equity of $243.1 million.
Current wording
As of March 31, 2025, the Company had total consolidated assets of $2.27 billion, total loans net of unearned income of $1.87 billion, total deposits of $1.92 billion and total shareholders’ equity of $253.0 million.
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 September 30, 2024 and September 30, 2023 and the selected income statement data for the three and nine months ended September 30, 2024 and September 30, 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 March 31, 2025 and March 31, 2024 and the selected income statement data for the three months ended March 31, 2025 and March 31, 2024 have been derived from our consolidated financial statements.
Previous wording
On a fully tax-equivalent basis, the net interest margin was 2.30% for the three months ended September 30, 2024, compared to 2.08% for the three months ended September 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 wording
On a fully tax-equivalent basis, the net interest margin was 2.58% for the three months ended March 31, 2025, compared to 2.11% for the three months ended March 31, 2024. The increase in net interest margin was primarily due to an increase in yields on the Company’s interest-earning assets and reduction in rates on deposits in addition to a reduction of volume of time deposits.
Previous wording
The loan portfolio’s yield for the three months ended September 30, 2024 was 5.33% compared to 4.87% for the three months ended September 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 elevated interest rates subsequent to September 30, 2023 coupled with a higher weighted average yield on loans originated since the third quarter of 2023.
Current wording
The loan portfolio’s yield for the three months ended March 31, 2025 was 5.39% compared to 5.18% for the three months ended March 31, 2024. The increase of 21 basis points was primarily attributable to an increase in yield on the Company’s commercial real estate portfolio.
Previous wording
(2)The Company did not have any loans on nonaccrual as of September 30, 2024 or September 30, 2023.
Current wording
(2) The Company did not have any loans on nonaccrual as of March 31, 2025 or March 31, 2024.
Previous wording
Interest income increased by $2.2 million or 8.1% to $28.5 million on a fully tax-equivalent basis for the three months ended September 30, 2024 compared to $26.3 million for the three months ended September 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 the Company’s loan portfolio and interest-bearing deposits due from banks.
Current wording
Interest income increased by $0.4 million or 1.4% to $27.3 million on a fully tax-equivalent basis for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, 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.
Previous wording
Fully tax-equivalent interest income on loans increased by approximately $2.4 million as a result of volume and an increase in rates. Average loans increased $27.8 million between the three months ended September 30, 2024 and the three months ended September 30, 2023, which was primarily attributable to origination volume in the investor real estate and residential loan portfolios subsequent to September 30, 2023.
Current wording
Fully tax-equivalent interest income on loans increased by approximately $1.2 million as a result of volume and an increase in rates. Average loans increased $32.3 million between the three months ended March 31, 2025 and the three months ended March 31, 2024, which was primarily attributable to origination volume in the investor real estate and residential loan portfolios subsequent to March 31, 2024.
Previous wording
Fully tax-equivalent interest income on investment securities decreased by approximately $349 thousand primarily as a result of a decrease in volume. Average investment securities decreased approximately $61.1 million between the three months ended September 30, 2024 and September 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 wording
Fully tax-equivalent interest income on investment securities decreased by approximately $196 thousand primarily as a result of a decrease in volume. Average investment securities decreased approximately $39.3 million between the three months ended March 31, 2025 and March 31, 2024 primarily due to maturities and amortization.
Previous wording
Interest income on interest-bearing deposits in other banks increased by $132 thousand as a result of an increase in volume. Average interest-bearing deposits in other banks increased approximately $9.1 million between the three months ended September 30, 2024 and September 30, 2023. The increase in interest-bearing deposits in other banks was primarily due to a decrease in investments.
Current wording
Interest income on interest-bearing deposits in other banks decreased by $602 thousand primarily as a result of a decrease in rates, coupled with a decrease in volume. Average interest-bearing deposits in other banks decreased approximately $19.9 million between the three months ended March 31, 2025 and March 31, 2024.
Previous wording
Interest expense increased by $1.0 million to $15.2 million for the three months ended September 30, 2024 compared to $14.2 million for the three months ended September 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 September 30, 2023 as a result of an increase in benchmark interest rates. The increase in borrowings was primarily a result of the Company’s FHLB advances.
Current wording
Interest expense decreased by $2.0 million to $13.2 million for the three months ended March 31, 2025 compared to $15.2 million for the three months ended March 31, 2024, primarily due to a decrease in rates on deposits and decrease in volume on borrowings. The decrease in rates on deposits was primarily a result of the repricing of the Company’s deposits accounts in conjunction with the decrease in benchmark interest rates that took place starting in September of 2024.
Previous wording
The Company recorded a $400 thousand provision for credit losses for the three months ended September 30, 2024 compared to a $829 thousand recovery of provision for credit losses for the three months ended September 30, 2023. The provision for credit losses for the current period that is directly attributable to the funded and unfunded loan portfolios was $48 thousand and $352 thousand, respectively.
Current wording
The Company recorded a $170 thousand provision for credit losses for the first quarter of 2025 compared to a recovery of provision for credit losses of $776 thousand for the first quarter of 2024. The provision for credit losses for the current period that is directly attributable to the funded and unfunded loan portfolios was $111 thousand and $59 thousand, respectively.
Previous wording
The provision for credit losses during the three months ended September 30, 2024 was primarily a result of changes in the Company’s loss driver analysis, resulting from a periodic review of our assumptions. The review resulted in a higher modeled probability of default, changes in prepayment and curtailment rates, and an assessment of management’s considerations of existing economic versus historical conditions 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 provision for credit losses during the three months ended March 31, 2025 was primarily a result of changes in the Company’s loss driver analysis and assumptions, changes in the composition of the loan portfolio, and considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
Previous wording
The recovery of provision for credit losses during the nine months ended September 30, 2024 was primarily a result of changes in the Company’s loss driver analysis, resulting from a periodic review of our assumptions. The review resulted in a higher modeled probability of default, changes in prepayment and curtailment rates, and an assessment of management’s considerations of existing economic versus historical conditions 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
See “Asset Quality” section below for additional information on the credit quality of the loan portfolio.
Previous wording
The Company’s total assets increased $31.8 million or 1.4% to $2.27 billion at September 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 $78.2 million, partially offset by a decrease in investments of $25.3 million and loans, net of unearned income of $17.4 million.
Current wording
The Company’s total assets increased $37.5 million or 1.7% to $2.27 billion at March 31, 2025 compared to $2.23 billion at December 31, 2024. The increase in total assets is primarily attributable to increases in interest-bearing deposits in banks of $42.0 million, partially offset by a decrease in investments of $5.8 million.
Previous wording
The Company’s total liabilities increased $18.6 million or 0.9% to $2.03 billion at September 30, 2024 compared to $2.01 billion at December 31, 2023. The increase in total liabilities was primarily attributable to a net increase in deposits of $29.5 million partially offset by a reduction of borrowings of $8.0 million. During the nine months ended September 30, 2024, the Company paid off 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. In September, the Company paid off its BTFP. Total borrowings as of September 30, 2024 consisted of subordinated debt totaling $24.7 million and three FHLB advances totaling $56.0 million. The increase in deposits was primarily driven by an increase in interest bearing and non-interest bearing demand deposits of $77.4 million and $61.0 million, respectively, partially offset by decreases in time deposits of $100.6 million.
Current wording
The Company’s total liabilities increased $31.1 million or 1.6% to $2.02 billion at March 31, 2025 compared to $1.99 billion at December 31, 2024. The increase in total liabilities was primarily attributable to a net increase in deposits of $29.8 million.
Previous wording
Shareholders’ equity increased $13.2 million or 5.7% to $243.1 million at September 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 a decrease in accumulated other comprehensive loss due to lower interest rates during the nine months ended September 30, 2024. The increases in equity were partially offset by the $3.6 million in cash dividends paid. Book value per share was $17.07 as of September 30, 2024 compared to $16.25 as of December 31, 2023.
Current wording
Shareholders’ equity increased $6.3 million or 2.6% to $253.0 million at March 31, 2025 compared to $246.6 million at December 31, 2024. The increase in shareholders’ equity was primarily attributable to an increase in net income and a decrease in accumulated other comprehensive loss due to lower interest rates during the three months ended March 31, 2025. Book value per share was $17.72 as of March 31, 2025 compared to $17.28 as of December 31, 2024.
Previous wording
The Company maintains a primarily fixed income investment securities portfolio that had a total carrying value of $237.5 million at September 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 $7.6 million and $2.7 million, respectively, as of September 30, 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 $215.6 million at March 31, 2025 and $222.3 million at December 31, 2024. The investment portfolio provides liquidity, interest income, credit risk diversification, means to manage rate sensitivity and 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 $7.6 million and $2.9 million, respectively, as of March 31, 2025 and $7.6 million and $2.8 million, respectively, as of December 31, 2024.
Previous wording
The Company did not purchase or sell fixed income investment securities during the nine months ended September 30, 2024. The Company had $32.1 million in maturities and principal repayments on securities during the nine months ended September 30, 2024, which was comprised of $14.3 million of mortgage-backed securities, $14.0 million of U.S. Treasuries, $3.5 million of collateralized mortgage obligation securities and $0.3 of Municipal securities.
Current wording
The Company purchased $3.6 million of investment securities during the three months ended March 31, 2025, which were comprised of $2.6 million of agency mortgage-backed securities and $1.0 million of agency collateralized mortgage obligation securities. The Company did not sell any fixed income investment securities during the three months ended March 31, 2025. The Company had $12.1 million in maturities and principal repayments on securities during the three months ended March 31, 2025, which was comprised of $4.8 million of U.S. Treasuries, $4.3 million of U.S. agency mortgage-backed securities, $2.0 million of U.S. government and federal agencies securities and $1.0 million of U.S. agency collateralized mortgage obligation securities.
Previous wording
In the prevailing rate environments as of September 30, 2024 and December 31, 2023, the Company’s investment portfolio had an estimated weighted average remaining life of approximately 4.0 years and 4.2 years, respectively. The available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 2.8 years and 3.0 years as of September 30, 2024 and December 31, 2023, respectively. The held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 6.0 years and 6.7 years as of September 30, 2024 and December 31, 2023, respectively.
Current wording
In the prevailing rate environments as of March 31, 2025 and December 31, 2024, 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 3.1 years and 3.1 years as of March 31, 2025 and December 31, 2024, respectively. The held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 5.8 years and 6.0 years as of March 31, 2025 and December 31, 2024, respectively.
Previous wording
Gross loans, net of unearned income, decreased $17.4 million or 0.9% to $1.84 billion as of September 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.
Current wording
Gross loans, net of unearned income, decreased $1.7 million to $1.87 billion as of March 31, 2025 compared to $1.87 billion as of December 31, 2024. 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 three quarters of 2024. The Company did not have any nonperforming assets, which includes nonperforming loans and OREO, as of September 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 September 30, 2024 or December 31, 2023.
Current wording
The Company’s asset quality remained strong through the first quarter of 2025. The Company did not have any nonperforming assets, which includes nonperforming loans, OREO, or loans classified as substandard as of March 31, 2025. The Company had one loan that was 90 days past due and still accruing interest as of December 31, 2024. The loan paid off, in full, on January 7, 2025. 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, 2025.
Previous wording
The Company did not have any nonaccrual loans as of September 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
Current wording
The Company did not have any nonaccrual loans as of March 31, 2025 or December 31, 2024 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, 2025 or the three months ended March 31, 2024.
Previous wording
The Company recorded no net charge-offs and a net recovery of $1 thousand during the three months ended September 30, 2024 compared to no net charge-offs or recoveries during the three months ended September 30, 2023. The Company recorded net recoveries of $2 thousand during the nine months ended September 30, 2024 and $2 thousand during the nine months ended September 30, 2023. At September 30, 2024, the allowance for loan credit losses was $18.5 million or 1.00% 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 Company’s loss driver analysis, resulting from a periodic review of our assumptions. The review resulted in a higher modeled probability of default, changes in prepayment and curtailment rates, and an assessment of management’s considerations of existing economic versus historical conditions 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 March 31, 2025 compared to no net charge-offs and a $1 thousand recovery during the three months ended March 31, 2024. At March 31, 2025, the allowance for loan credit losses was $18.8 million or 1.01% of outstanding loans, net of unearned income, compared to $18.7 million or 1.00% of outstanding loans, net of unearned income, at December 31, 2024. The increase in the allowance as a percentage of outstanding loans, net of unearned income, was primarily a result of changes in the composition of the loan portfolio and considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
Previous wording
Management believes that the allowance for loan credit losses is adequate to absorb lifetime credit losses inherent in the portfolio as of September 30, 2024. There can be no assurance, however, that adjustments to the provision for (recovery of) credit losses will not be required in the future. Changes in the economic assumptions underlying management’s estimates and judgments; adverse developments in the economy, on a national basis or in the Company’s market area; or changes in the circumstances of particular borrowers are criteria that could change and make adjustments to the provision for (recovery of) credit losses necessary.
Current wording
Management believes that the allowance for loan credit losses is adequate to absorb lifetime expected credit losses inherent in the portfolio as of March 31, 2025. There can be no assurance, however, that adjustments to the provision for (recovery of) credit losses will not be required in the future. Changes in the economic assumptions underlying management’s estimates and judgments; adverse developments in the economy, on a national basis or in the Company’s market area; or changes in the circumstances of particular borrowers are criteria that could change and make adjustments to the provision for (recovery of) credit losses necessary.
Previous wording
Non-interest bearing demand deposits increased $61.0 million or 14.8% to $472.4 million as of September 30, 2024 compared to $411.4 million at December 31, 2023. Non-interest bearing demand deposits represented 24.4% and 21.6% of total deposits at September 30, 2024 and December 31, 2023, respectively.
Current wording
Non-interest bearing demand deposits increased $4.5 million or 1.0% to $437.8 million as of March 31, 2025 compared to $433.3 million at December 31, 2024. Non-interest bearing demand deposits represented 22.8% and 22.9% of total deposits at March 31, 2025 and December 31, 2024, respectively.
Previous wording
Interest-bearing deposits, which include NOW accounts, regular savings accounts, money market accounts, and time deposits, decreased $31.5 million or 2.1% to $1.46 billion as of September 30, 2024 compared to $1.50 billion as of December 31, 2023. Interest-bearing deposits represented 75.6% and 78.4% of total deposits at September 30, 2024 and December 31, 2023, respectively.
Current wording
Interest-bearing deposits, which include NOW accounts, regular savings accounts, money market accounts, and time deposits, increased $25.2 million or 1.7% to $1.48 billion as of March 31, 2025 compared to $1.46 billion as of December 31, 2024. Interest-bearing deposits represented 77.2% and 77.1% of total deposits at March 31, 2025 and December 31, 2024, 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 $1.65 billion or 85.5% of total deposits and $1.58 billion or 82.7% of total deposits at September 30, 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 $1.63 billion or 84.8% of total deposits and $1.62 billion or 85.4% of total deposits at March 31, 2025 and December 31, 2024, 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 $882.0 million at September 30, 2024 and $802.8 million at December 31, 2023. Included in these amounts were $167.8 million and $168.7 million of public fund deposits that are collateralized as of September 30, 2024 and December 31, 2023, respectively. Deposits that were not insured or not collateralized represented 37% and 33% of total deposits, respectively, as of September 30, 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 $819.1 million at March 31, 2025 and $816.7 million at December 31, 2024. Included in these amounts were $167.8 million and $157.4 million of public fund deposits that are collateralized as of March 31, 2025 and December 31, 2024, respectively. Deposits that were not insured or not collateralized represented 37% and 35% of total deposits, respectively, as of March 31, 2025 and December 31, 2024.
Previous wording
Shareholders’ equity increased $13.2 million or 5.7% to $243.1 million at September 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 a decrease in accumulated other comprehensive loss due to lower interest rates during the nine months ended September 30, 2024. The increases in equity were partially offset by the $3.6 million in cash dividends paid. Book value per share was $17.07 as of September 30, 2024 compared to $16.25 as of December 31, 2023.
Current wording
Shareholders’ equity increased $6.3 million or 2.6% to $253.0 million at March 31, 2025 compared to $246.6 million at December 31, 2024. The increase in shareholders’ equity was primarily attributable to an increase in net income and a decrease in accumulated other comprehensive loss due to lower interest rates during the three months ended March 31, 2025. Book value per share was $17.72 as of March 31, 2025 compared to $17.28 as of December 31, 2024.
Previous 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 September 30, 2024. The stock repurchase program will expire on August 31, 2025, or earlier if all the authorized shares have been repurchased. The Company did not repurchase any shares of its outstanding common stock under the program during the three months ended September 30, 2024. The Company repurchased 3,003 shares of its outstanding common stock under the program during the nine months ended September 30, 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 September 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 2,639 shares of its outstanding common stock under the program during the three months ended March 31, 2025.
Previous wording
The Company’s principal source of liquidity and funding is its deposit base. The level of deposits necessary to support the Company’s lending and investment activities is determined through monitoring loan demand. In addition to the liquidity provided by balance sheet cash flows, the Company supplements its liquidity with additional sources such as secured borrowing credit lines with the FHLB and the Reserve Bank. Specifically, the Company has pledged a portion of its commercial real estate and residential real estate loan portfolios to the FHLB and the Reserve Bank. Based on collateral pledged as of September 30, 2024, the total FHLB available borrowing capacity was $373.2 million. Additional borrowing capacity with the Reserve Bank was approximately $101.6 million as of September 30, 2024.
Current wording
The Company’s principal source of liquidity and funding is its deposit base. The level of deposits necessary to support the Company’s lending and investment activities is determined through monitoring loan demand. In addition to the liquidity provided by balance sheet cash flows, the Company supplements its liquidity with additional sources such as secured borrowing credit lines with the FHLB and the Reserve Bank. Specifically, the Company has pledged a portion of its commercial real estate and residential real estate loan portfolios to the FHLB and the Reserve Bank. Based on collateral pledged as of March 31, 2025, the total FHLB available borrowing capacity was $401.0 million. Additional borrowing capacity with the Reserve Bank was approximately $107.1 million as of March 31, 2025.
Previous wording
Total liquidity, defined as cash and cash equivalents, unencumbered securities at fair value, and available secured borrowing capacity, was $775.5 million at September 30, 2024 compared to $638.9 million at December 31, 2023.
Current wording
Total liquidity, defined as cash and cash equivalents, unencumbered securities at fair value, and available secured borrowing capacity, was $786.9 million at March 31, 2025 compared to $727.3 million at December 31, 2024.
Rearranged previous paragraphs (13)
Previous report — wording carried elsewhere
Explanation of Non-GAAP Financial Measures
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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 nine months ended September 30, 2024 and September 30, 2023.
Previous report — wording carried 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
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
(1)Tax benefit was calculated using the federal statutory tax rate of 21%.
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The following table summarizes non-interest expense for the nine months ended September 30, 2024 and September 30, 2023.
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Net Interest Income and Net Interest Margin
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Average Balance Sheets and Interest Rates on Interest-Earning Assets and Interest-Bearing Liabilities
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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.
Previous report — wording carried elsewhere
(2) The Company did not have any loans on nonaccrual as of September 30, 2024 or 30, 2023.
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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 and nine months ended September 30, 2024 or the three and nine months ended September 30, 2023.
Previous report — wording carried elsewhere
The following table summarizes the Company’s loan loss experience by loan portfolio for the nine months ended September 30, 2024 and September 30, 2023.
Previous report — wording carried elsewhere
The following table sets forth the average balances of deposits and the average interest rates paid for the nine months ended September 30, 2024 and September 30, 2023.