AB&T experienced an increase in Net Income for 1Q23 of 185.1% when compared to 1Q22. The increase is the result of improved Net Interest Margin due to loan growth and higher interest rates on earning assets. 

Average Deposits were 0.3% higher in 1Q23 compared to 1Q22, as yield pressure and business cash utilization increased. With clients seeking yield, Average Non-Interest-Bearing Demand Deposits decreased 14.8% for 1Q23 compared to 1Q22. 

Operating expenses rose in the 1Q23 compared to 1Q22. Our year-to-date 2023 non-interest expenses of $1,462 million represent an increase of 7.6% from the same period in 2022, primarily related to contractual operating cost increases. 

The Bank’s asset quality again remained strong in 1Q23, with Non-Performing Assets as a Percent of Total Assets improving to 0.00% from 1.26% in 1Q22. The bank’s Allowance for Losses on Loans and Leases as a Percent of Total Loans is 1.25%. 

Average Stockholders’ Equity increased to 11.2% in 1Q23 compared to 1Q22. The Bank’s leverage ratio improved to 10.12% at the end of March. The Common Equity Tier 1 Capital Ratio and the Total Capital Ratio increased to 14.91% and 16.16%, respectively. 

For the quarter ending March 31, 2023, the Bank reported Diluted Earnings per Share of $0.84. Fully Diluted Book Value per share at quarter-end was $17.90. 

First Quarter 2023 Highlights: 

• Net Income increased 185.1% in 1Q23 compared to 1Q22. 

• The Efficiency Ratio improved to 51.01% for 1Q23 compared to 73.82% for 1Q22. 

• In 1Q23, Net Revenue grew 55.7% compared to 1Q22. 

• Non-Interest Expense rose 7.6% in 1Q23 compared to 1Q22. 

• Average Loans increased 4.1% compared to the first quarter of 2022. 

• Average Deposits held steady from 1Q22 to 1Q23. 

• Average Non-Interest-Bearing Demand Deposits were down 14.8% during that same period. 

• Asset Quality remained strong with a 1.25% Allowance for Losses on Loans and Leases as a Percent of Total Loans at March 31, 2023, and Non-Performing Assets as a % of Total Assets at 0.00%. 

• Diluted Earnings Per Share increased to $0.84 up from $0.30 in 1Q22. 

• Fully Diluted Book Value Per Share stood at $17.90 at quarter end, an increase of 10.9% from 1Q22. 

Through the recent backdrop of events in the financial sector and forthcoming economic changes, our anchor remains relationship banking. Intentional relationships, built on mutual trust and an enduring commitment, continue to fuel our success and passion in serving as the Gold Standard of banking in this community. Our team stands resolute and poised, ready to honor our pledge to our clients.