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Financial report summary
?Management Discussion
- Net income for the year ended December 31, 2023 was $24,137, compared to $46,399 for the year ended December 31, 2022. Basic and diluted earnings per common share for 2023 were $1.44 and $1.44, respectively, and were $2.79 and $2.76, respectively for 2022.
- The decrease in net income in 2023 compared to 2022 was primarily due to the decrease in net interest income. Net interest income declined $22,709, or 24.7 percent, in 2023 compared to 2022. The decrease in net interest income was due to an increase in interest expense on deposits and borrowings that exceeded an increase in interest income on loans and securities, primarily due to rapidly rising short-term interest rates, an inverted yield curve and changes in funding mix.
- The Company recorded a credit loss expense of $700 in 2023 compared to a credit loss expense of negative $2,500 in 2022. The credit loss expense recorded in 2023 was primarily due to loan growth. The negative credit loss expense recorded in 2022 was due to the reversal of a specific reserve on an impaired loan and the reduction of certain qualitative factors resulting from the sustained performance of loans after the expiration of COVID-19 modifications and continued improvement in classified loans. The credit loss expense recorded in 2023 was made under the current expected credit losses, or CECL, model, while the negative credit loss expense recorded in 2022 was made under the previous incurred loss model.