Executive Summary

Q4 2024 EPS was $0.73 with net income of $6.008M; net interest margin (tax-equivalent, non-GAAP) was 4.00% and the efficiency ratio (GAAP) was 59.91% .
Quarter-over-quarter earnings decreased versus Q3 2024 ($0.89 EPS) primarily because Q3 benefited from $1.62M of reversed ACL provisions tied to loan recoveries; year-over-year EPS increased from $0.71 due to a $1.13M credit loss provision taken in Q4 2023 .
Loans grew $31.4M QoQ and $90.0M YoY; deposits increased $5.4M QoQ and $45.2M YoY; non-performing assets remained at zero, and ACL/gross loans was 1.04% .
The Board declared a $0.30 dividend payable Feb 14, 2025, up from a $0.225 Q3 dividend—potential near-term sentiment catalyst for yield-oriented investors .

What Went Well and What Went Wrong

Strong loan growth: +$31.4M QoQ and +$90.0M YoY; management reiterated stable CRE credit quality and reserves at acceptable levels under CECL .
Credit metrics pristine: NPA remained at 0.00% and ACL/gross loans 1.04% at quarter-end, underscoring high asset quality .
Management tone constructive: “We are pleased to report another solid year of earnings...” (CEO Chris Courtney), emphasizing relationship banking and sound credit standards .

Margin pressure: NIM fell to 4.00% vs 4.04% in Q3 and 4.15% in Q4 2023 as deposit interest expense rose; average cost of funds increased to 0.78% in 2024 vs 0.28% in 2023 .
Non-interest income declined QoQ (to $1.430M) on unrealized market value changes in equity securities; efficiency ratio worsened to 59.91% vs 58.07% in Q3 .
Operating expenses elevated: Q4 non-interest expense rose to $11.548M on audit, data processing, consulting and broader operating costs, pressuring profitability .

Metric	Q4 2023	Q3 2024	Q4 2024
Net Interest Income ($USD Millions)	$17.914	$17.655	$17.846
Non-Interest Income ($USD Millions)	$1.755	$1.846	$1.430
Net Income ($USD Millions)	$5.865	$7.324	$6.008
Diluted EPS ($USD)	$0.71	$0.89	$0.73
Net Interest Margin (tax-equivalent, %)	4.15%	4.04%	4.00%
Efficiency Ratio (GAAP, %)	54.71%	58.07%	59.91%

Notes: NIM is non-GAAP (tax-equivalent). Efficiency ratio methodology changed to GAAP basis in Q4 2024; prior periods restated .

Metric	Q4 2023	Q3 2024	Q4 2024
ROAA (%)	1.27%	1.56%	1.25%
ROAE (%)	16.44%	16.54%	12.86%

Metric	Q4 2023	Q3 2024	Q4 2024
Total Assets ($USD Billions)	$1.842	$1.900	$1.901
Gross Loans ($USD Billions)	$1.017	$1.075	$1.107
Deposits ($USD Billions)	$1.651	$1.690	$1.696
NPA / Total Assets (%)	0.00%	0.00%	0.00%
ACL / Gross Loans (%)	1.07%	1.07%	1.04%
Book Value per Share ($)	$20.03	$22.18	$21.95

Segment	Q4 2024	Notes
N/A	N/A	No segment reporting disclosed in press release/8-K .

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q1 2025 (paid Feb 14, 2025)	$0.225 (Q3 2024 dividend paid)	$0.30	Raised
Revenue/NIM/OpEx/Tax Rate	N/A	Not provided	Not provided	Maintained (no formal guidance)

Notes: Company did not issue quantitative guidance for revenue, margins, OpEx, OI&E or tax rate in the Q4 materials .

No Q4 2024 earnings call transcript was available in our document catalog; themes below track narrative across Q2, Q3, and Q4 press releases.

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Funding costs & NIM	Cost of funds 0.73%; NIM 4.11%	Cost of funds 0.83%; NIM 4.04%	FY cost of funds 0.78%; NIM 4.00%	Gradual NIM compression; funding costs elevated vs 2023
Loan growth	+$30.5M QoQ; +$119.5M YoY	+$5.1M QoQ; +$103.9M YoY	+$31.4M QoQ; +$90.0M YoY	Consistent growth; stronger QoQ in Q4
Deposits	+$32.3M QoQ; new checking acquisition program launch	+$45.6M QoQ	+$5.4M QoQ	Growth moderating in Q4
Liquidity	Cash & equivalents $180.3M	$213.9M	$168.8M	Still strong; down QoQ in Q4
Credit quality / CECL	NPA 0.00%; ACL/gross loans 1.04%; no provision	NPA 0.00%; ACL/gross loans 1.07%; $1.62M ACL reversal on recoveries	NPA 0.00%; ACL/gross loans 1.04%; favorable CECL output	Stable/pristine; provisioning dynamics normalize after Q3 reversal
Dividend policy	Declared $0.225 (paid Aug 9)	Dividends paid $0.225 in Q3	Declared $0.30 (paid Feb 14, 2025)	Increasing payout

“We are pleased to report another solid year of earnings and commend our team on their commitment to a culture of relationship banking built on a foundation of sound credit quality standards.” — Chris Courtney, CEO .
“Our strong core deposits have helped manage funding costs and maintain a healthy net interest margin. Loan growth is crucial to minimizing future margin compression amid possible interest rate drops.” — Rick McCarty, President & COO .
“Our earnings performance reflects our consistent and prudent approach to managing our business. We continue to focus on relationship-based core deposit growth which enables us to maintain our lending activity and enhance profitability.” — Rick McCarty, President & COO .

No earnings call transcript was available for Q4 2024; the company communicated results via press release/8-K without disclosed Q&A .
Guidance clarifications were not provided beyond dividend declaration and qualitative comments on credit quality and funding costs .

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of analysis due to data access limits; therefore, we cannot quantify beats/misses versus consensus. Values would be retrieved from S&P Global when accessible.*
Given continued NIM compression and higher deposit costs, estimate models may need to reflect persistent funding cost pressure and elevated OpEx levels, while incorporating ongoing loan growth and strong credit quality (NPA at 0.00%) .

Loan growth remains robust (+$31.4M QoQ, +$90.0M YoY), supporting earning asset expansion despite margin pressure .
Funding costs remain the key headwind (FY 2024 average cost of funds 0.78% vs 0.28% in 2023) driving NIM compression to 4.00%; watch deposit repricing and competitive dynamics .
Credit quality is pristine (NPA 0.00%) and ACL/gross loans at 1.04% appears adequate under CECL—reduces tail risk perception in CRE .
Efficiency ratio deterioration (59.91% vs 58.07% in Q3) and higher OpEx warrant monitoring; execution on expense control could be a catalyst for margin stabilization .
Dividend increased to $0.30 (from $0.225), enhancing total return profile and potentially attracting yield-focused flows near term .
Liquidity remains strong ($168.8M cash & equivalents), providing flexibility amid rate transitions; however, QoQ drawdown suggests prudent balance sheet deployment .
Near-term trading: dividend hike and zero NPAs are supportive; medium-term thesis hinges on sustaining core deposit growth, disciplined OpEx, and managing NIM through rate cycle normalization .