The information for the three months ended March 31, 2023 and 2022 is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2023 or any other period.
Emerging Growth Company Status
The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as the Company is an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies. An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, but must make such election when the company is first required to file a registration statement. The Company has elected to use the extended transition period described above and intends to maintain its emerging growth company status as allowed under the JOBS Act.
Comparison of Financial Condition at March 31, 2023 and December 31, 2022
Total Assets. Total assets increased $2.9 million, or 0.8%, to $389.2 million at March 31, 2023 from $386.3 million at December 31, 2022. The increase resulted primarily from increases in net loans of $4.5 million and pension plan assets of $543,000, partially offset by a decrease in cash and cash equivalents of $2.0 million.
Net Loans. Net loans increased $4.5 million, or 1.5%, to $308.4 million at March 31, 2023 from $303.9 million at December 31, 2022. The increase resulted from increases in one- to four-family residential real estate loans of $5.7 million, or 4.1%, manufactured home loans of $837,000, or 1.6%, other consumer loans of $302,000, or 4.2%, and automobile loans of $218,000, or 0.9%, partially offset by decreases in recreational vehicle loans of $954,000, or 3.6%, nonresidential loans of $461,000, or 2.8%, and home equity loans and lines of credit of $343,000, or 3.0%.
Net deferred fees decreased $279,000, or 1.7%, during the three months ended March 31, 2023, representing primarily fees paid for purchased loans net of amortization, which is over the estimated loan lives.
Consistent with our business strategy, we intend to continue the purchase and origination of residential mortgage, automobile, and manufactured home loans. During the three months ended March 31, 2023, we purchased $6.7 million of residential mortgage loans, $2.7 million of automobile loans, and $1.9 million of manufactured home loans.
Pension Plan Assets. Pension plan assets increased $543,000, or 5.1%, to $11.2 million at March 31, 2023 from $10.7 million at December 31, 2022. The increase resulted from estimated returns on pension assets of $397,000 and employer contributions of $361,000, partially offset by estimated benefits paid of $63,000 and interest costs of $152,000.
Cash and Cash Equivalents. Cash and cash equivalents decreased $2.0 million, or 24.5%, to $6.0 million at March 31, 2023 from $8.0 million at December 31, 2022 as a result of increased loan originations along with repayments of our FHLB advances.
Deposits. Deposits increased $19.4 million, or 6.1%, to $337.0 million at March 31, 2023 from $317.7 million at December 31, 2022. Interest-bearing accounts increased $21.4 million, or 8.2%, to $284.5 million at March 31, 2023 from $263.1 million at December 31, 2022. The largest increase in interest-bearing deposits was in certificates of deposit which increased $29.5 million, or 27.8%, to $135.3 million at March 31, 2023 from $105.8 million at December 31, 2022 as customers shifted funds from lower yielding core deposit accounts into higher yielding certificate of deposit specials. Interest-bearing checking accounts decreased $2.9 million, or 7.7%, to $35.2 million at March 31, 2023 from $38.1 million at December 31, 2022. Savings accounts decreased $2.7 million, or 2.9%, to $90.0 million at March 31, 2023 from $92.6 million at December 31, 2022. Money market accounts decreased $2.4 million, or 9.0%, to $24.1 million at March 31, 2023 from $26.5 million at December 31, 2022. Noninterest-bearing deposits decreased $2.1 million, or 3.8%, to $52.5 million at March 31, 2023 from $54.6 million at December 31, 2022.