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Q1 Financial Position Demonstrates Bank’s Strength


Q1 2023 Financials

By Christine Haugen, Executive Vice President and Chief Financial Officer

Consolidated earnings were $462,000, or $0.26 per share, for the quarter ended March 31, 2023 compared to $374,000, or $0.21 per share, for the comparative period in 2022. Current quarter consolidated earnings of $0.26 per share were attributable entirely to core operations, whereas prior quarter consolidated earnings of $0.21 per share were comprised of $0.18 per share attributable to core operations and $0.03 per share due to impacts from the Paycheck Protection Program. This represents an increase of 44% in earnings from core banking operations quarter-over-quarter.

Total assets ended the quarter at $252.2 million. The largest component of this asset balance is the loan portfolio totaling $165.4 million as of March 31, 2023, which represents an increase of $2.4 million or 1.5% from December 31, 2022. The Company experienced a natural lull in loan production for the first quarter of 2023 after record loan growth exceeded $20 million in the fourth quarter of 2022.

Also significant in asset size is the Company’s bond portfolio totaling $53.8 million as of March 31, 2023, in which 78% of the portfolio is classified as available-for-sale and recorded at market value. The Company’s available-for-sale bond portfolio experienced an 8% improvement in its valuation since December 31, 2022 reducing unrealized losses recorded in equity to $2.1 million, which represents less than 10% of consolidated gross equity. The Company has sufficient liquidity to meet its operating needs, and, as such, has the capability to hold these bonds and will not need to liquidate the portfolio and recognize the losses.

Deposits ended the quarter at $225.7 million, an increase of $22.4 million or 11% since year-end. During the quarter, the Company gathered short-term deposits to bolster earnings by taking advantage of the current interest rate spread. While these funds are short-term in nature, management prioritized liquidity in its 2023 strategic plan and has deployed additional resources into deposit production for the year.

The Bank remains Well Capitalized with a 10.70% leverage capital ratio and maintains its Bauer five-star rating.