A Letter from BBOK CEO Calvin Coady

Thank you to all of our customers who recently made the move from ABIL to PATH, our new Payments Access and Transaction Hub. We appreciate the time you spent training and preparing to make a successful transition. PATH creates a stronger foundation for future technology, including instant payments, which the next payments milestone for BBOK. Our payments team is working to implement the final pieces to be ready to support our customers with the launch of the FedNow® Service.

There are a couple of items to mention on our first half of the years’ financials. Net interest income is up and the offset, earnings credit lowered other income. The good news, is the net of those two totals are up $621,000. However, operating expenses were up $770,000, primarily related to salary expenses for staff transitions, as well as the investment to implement PATH, including conversion expenses. We also bolstered our provision for loan losses by $160,000 more than last year. We experienced more losses in our credit card portfolio, which is primarily driven by program growth and the stress of inflation on consumer repayment. Our credit card losses continue to remain well below the industry averages.

The summer is flying by and I hope you will save the date for our annual customer golf tournament and BBOK update in October! I look forward to seeing everyone on the course and hope you can join us.

Second Quarter 2023 Financials

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