Exchange Bank (EXSR) Q1 2025 earnings summary

Executive summary

• Net income after taxes for Q1 2025 was $5.6 million, up 15.2% year-over-year and 14.3% sequentially from Q4 2024.

• Non-interest income rose 12% year-over-year, driven by a one-time $450,000 trust settlement fee.

• Paid off $100 million Federal Reserve borrowing in January 2025, not replaced due to strong liquidity and deposit growth.

Financial highlights

• Net interest income increased 3.0% year-over-year to $20.9 million, mainly from lower borrowing costs.

• Net interest margin improved to 2.73% from 2.59% year-over-year.

• Total assets were $3.27 billion, down 1.9% from a year ago.

• Gross loans grew by $14.0 million to $1.61 billion; deposits increased by $79.1 million to $2.89 billion.

• Book equity rose 19.3% year-over-year to $301.1 million.

Outlook and guidance

• Management expects $165 million in investment portfolio paydowns through the rest of 2025 based on current rate conditions.

• Forward-looking statements note risks from economic, legislative, and regulatory changes.