Exchange Bank (EXSR) Q2 2024 earnings summary

Executive summary

• Net income after taxes for Q2 2024 was $5.2 million, up from $4.9 million in Q1 2024 and a net loss of $2.1 million in Q2 2023, which included a one-time $9.1 million pension plan termination expense.

• Year-to-date net income through June 2024 was $10.1 million, compared to $7.1 million for the same period in 2023.

Financial highlights

• Net interest income for Q2 2024 was $20.3 million, down 10.9% year-over-year, but up $0.6 million sequentially; year-to-date net interest income was $40.6 million, down from $47.6 million in 2023.

• Non-interest income for Q2 2024 was $5.7 million, nearly flat year-over-year and sequentially; year-to-date non-interest income was $11.4 million, slightly down from $11.8 million in 2023.

• Non-interest expense for Q2 2024 was $19.2 million, consistent with prior periods; year-to-date non-interest expense was $38.8 million, up from $37.3 million in 2023.

• Total assets as of June 30, 2024 were $3.31 billion, down $11.5 million from a year ago.

Outlook and guidance

• Net interest margin is expected to continue decreasing in the near term due to elevated funding costs.