We are off and running in 2021, with the first
quarter in the books. It is great that things are somewhat feeling
normal again as we approach summer.
During the first quarter we
recorded earnings of $1,152,136, compared to $965,733 for the first
quarter of 2020. Earnings per share were $0.86 for the period versus
$0.72 for last year. This was a record quarter for the company. While
net interest margins are compressed due to the low rates, PPP loan fees
and lower loan loss provisions have more than offset the margin
For comparison purposes, we have developed a new peer
group to use going forward. There are 18 banks in this group that are
mostly similar in size, asset mix and number of locations. This group
performs higher than our previous peer group, which was based solely on
banks in our market areas. In essence, we have raised the bar for our
Year-to-date the bank had a ROA of 0.79%, compared to
our local peer group of 1.05%. Our net interest margin (NIM) was at
2.89% versus, 3.15% for our peers. Our Leverage (Capital) Ratio was at
8.86%, versus 9.90% for the group.
Loans were up for the quarter and
stood at $331.8 million, versus $322.6 million for the prior quarter.
Overall loan demand has slowed due to Covid-19 effects on the economy
and the liquidity created by stimulus. The increase for the quarter can
be attributed to Paycheck Protection Program (PPP) loans during the
Total investments were up significantly at $223.6 million,
versus $206.6 million for the prior quarter and $148.6 million
year-over-year. It continues to be a challenge for banks to keep pace
with deposit growth. Our strategy is to build on our investment
portfolio for now, with the expectation of funding loan growth as demand
Total deposits were also up significantly at $484.8
million, compared to $450.9 million last quarter and $388.0 million for
the same period last year. This represents an unprecedented 25% annual
growth rate! The question that we are struggling with is how long will
these deposits be retained. Will they be spent as the economy continues
to improve post Covid?
Credit quality is much improved. Non-accrual
Loans to Loans were at 1.08%, and below peer of 1.10%. Charge-offs to
Loans were at -0.08% for the quarter, versus peer of 0.04%. Recoveries
actually exceeded charge-offs during the quarter. Loan loss reserve
balance was at 1.23% of total loans, compared with our peers at 1.40%.
The most recent common stock trade was 4,000 shares at $32.00 per
share. If you have an interest in selling or buying, please contact Kim
(309-457-6267 / email@example.com) or Chris (309-457-6227 / firstname.lastname@example.org)
with the number of shares and the selling or offering price.
excited to be hosting our annual shareholder meeting in person on May
26th and look forward to seeing many of you there.
Christopher J. Gavin
President & CEO