Exchange Bank (EXSR) Q4 2024 earnings summary

Executive summary

• Net income after tax for 2024 was $23.85 million, up from $20.19 million in 2023, with Q4 2024 net income at $8.8 million.

• Total assets stood at $3.30 billion as of December 31, 2024, a decrease of $66.93 million from the prior year, mainly due to cash decreases from borrowing paydowns.

• Loan balances increased by $23.90 million (1.5%) year-over-year, with strong loan quality and nonaccrual loans under 0.70% of gross loans.

Financial highlights

• Net interest income fell 10.2% to $81.26 million in 2024, driven by higher deposit and borrowing costs.

• Non-interest income was $23.39 million, down $0.27 million from 2023; $10.33 million came from wealth management fees.

• Non-interest expense dropped 11.07% to $76.87 million, reflecting the absence of a one-time pension plan termination charge from 2023.

• Net interest margin declined to 2.59% from 2.86% year-over-year.

• Total deposits were $2.83 billion, nearly flat year-over-year, with non-interest-bearing deposits at 32% of the total.

Outlook and guidance

• Management expects over $200 million in investment portfolio cashflow through 2025, with the portfolio's average life at 4.1 years and effective duration at 3.6 years.

• Forward-looking statements caution that actual results may differ due to risks and uncertainties beyond management's control.