For the year ended December 31, 2021, net income totaled $3.6 million, representing an increase of $700 thousand or 24.4% compared to net income of $2.9 million for the year ended December 31, 2020. Basic and diluted earnings per common share were $12.93 and $10.30 for the years ended 2021 and 2020, respectively. Return on average assets and return on average equity were 0.87% and 11.43%, respectively, in 2021 compared to 0.82% and 9.67%, respectively, in 2020.
“We are pleased to report another year of record earnings driven by strong deposit growth, increased consumer loan activity, well controlled expenses and improved credit quality metrics,” said Cindy Kitner, President and Chief Executive Officer. “Our continued success reflects the execution of strategic initiatives and the dedication and commitment of our employees and board of directors. I am proud of our team who deliver our products and services every day with a focus on building relationships and supporting our customers and communities. We look to continue the momentum we are building and remain focused on driving long-term value to our shareholders,” said Cindy Kitner, President and Chief Executive Officer.
The Bank’s total assets were $426.8 million as of December 31, 2021, an increase of $46.1 million or 12.1% from total assets of $380.7 million as of December 31, 2020. Loans, net of reserve, totaled $244.8 million as of December 31, 2021, representing an increase of $4.9 million or 2.1% from $239.9 million as of December 31, 2020. Total loans, net of the reserve and Paycheck Protection Program (PPP) loans, increased by $9.4 million or 4.2%. At December 31, 2021, the total gross outstanding balance of PPP loans was $9.9 million compared to $14.3 million at December 31, 2020. The reserve for loan losses totaled $2.8 million or 1.1% of total loans and 1.2% of total loans excluding PPP loans. For the year ended December 31, 2021, provisions for loan losses totaled $80 thousand compared to $800 thousand for the year ended December 31, 2020. This reduction in expense is primarily attributed to strong loan quality metrics with low net charge-offs and nonperforming loans.
Total deposits increased by $44.3 million or 12.8% to $390.7 million as of December 31, 2021 compared to $346.4 million as of December 31, 2020. Total shareholders’ equity increased by $2.0 million for the year ended December 31, 2021, resulting in an increase in book value per share to $119.52, or 7.7% at December 31, 2021 compared to $111.02 per share at December 31, 2020.