SIMILAR CHALLENGES; NEW OPPORTUNITIES IN 2023

The new year is off to a great start. I’m excited to serve our customers and banking team as we all look forward to the opportunities of 2023.

Bank Expansion

2022 saw the opening of two new branches of Adams Bank & Trust. We opened our third branch in Colorado Springs on Interquest Parkway, and we opened our first branch in Greeley, Colorado. The bank’s position is strong, and we plan to continue to expand our footprint in the coming year.

it’s fuel, seed, fertilizer or animal feed, inflation is hitting farmers and ranchers where it hurts.

Several years of drought conditions are still having an impact. Stressed pastures produce less forage and feed costs are higher. Cow/calf producers must make difficult decisions. Do you keep herds intact and pay higher feed bills or do you sell cows to reduce expenses? Ranchers still aren’t expanding herds, and cattle numbers are still dropping.

by STEVE KRAUSE president

Mortgage

We saw a sharp increase in home prices in 2022, but values have leveled out and have even begun to decline in many areas. Higher interest rates mean fewer buyers qualify for loans, making the environment less competitive. What should home buyers keep in mind? It’s still important to keep housing needs versus wants in perspective. You don’t want to overspend the budget that makes sense for your household.

Opportunities

We may be growing, but our vision remains the same. Adams Bank & Trust is here to serve customers through a personal banking relationship that is centered on your unique needs.

Challenges

As we look at the overall economy and business environment, it’s “second verse, same as the first” in many ways. As we saw in 2022, inflation and higher interest rates continue to be the headwinds that impact every sector.

Agriculture

The positive news is that prices for commodities have been good, and the overall ag economy continues to improve. However, input costs are higher across the board. Whether

Business

Businesses continue to navigate inflation and higher input costs, as well. Construction costs have gone up, and the higher interest rates influence decisions about expansion and improvement of facilities and equipment.

The biggest elephant in the room remains the problem of finding and retaining staff. If you’re facing this challenge in your business, you’re not alone. We hear this from nearly all our business customers.

Businesses that need in-person workers are having to make adjustments, including hours of operation. It’s a complex problem, and all industries are having to approach it with flexibility and creativity.

Despite ongoing challenges, there are always opportunities if you keep your powder dry. Here are some things to think about: Is your idea affordable? Does it “cash flow?” And does it provide a return on your investment? If you’re stretched too thin, you limit your ability to respond to other opportunities and circumstances in the future.

Despite ongoing challenges, there are always opportunities if you keep your powder dry.

Details are still coming out on programs associated with the Inflation Reduction Act that passed last year. Businesses may be able to receive tax credits for making green energy improvements. Farmers and ranchers may have incentives for participating in conservation programs. The bank is monitoring the rollout closely for any opportunities that could benefit our customers.

NEBRASKA

BRULE

308.287.2344

CHAPPELL

308.874.2800

GRANT

308.352.2114

IMPERIAL 308.882.4286

INDIANOLA 308.364.2215

LODGEPOLE 308.483.5211

MADRID 308.326.4223

NORTH PLATTE 308.532.5936

OGALLALA 308.284.4071

SUTHERLAND 308.386.4345

COLORADO

BERTHOUD 970.532.1800

COLORADO

SPRINGS

719.448.0707

FIRESTONE 303.833.3575

FORT COLLINS 970.667.4308

GREELEY 970.330.8018

LONGMONT 303.651.9053

STERLING 970.522.0698

KANSAS COLBY 785.460.7868

TOLL FREE 800.422.3488

ABTBANK.COM

ADAMS BANK & TRUST BALANCE SHEET AS OF DECEMBER 31, 2022

Total of all money loaned to customers for all types of loans, such as agriculture, commercial and consumer.

Book value (after depreciation) of buildings, computers, equipment, etc.

Interest on loans earned but not collected, expenses that have been prepaid, etc.

Money on deposit by customers of the bank in the form of checking accounts, savings accounts, and certificates of deposit.

Borrowings by the bank, interest on deposits that has accrued, payable at a future date, other expenses accrued but not yet paid, deferred taxes, etc.

Par value of the investment of the stockholders for the purchase of stock.

Additional money contributed by stockholders to provide extra financial strength.

UNDIVIDED PROFITS AND RESERVES

Bank earnings left in the bank to provide added strength to meet possible future losses on loans and to replace buildings and equipment as they wear out.