Penns Woods Bancorp, Inc. Reports Second Quarter 2022 Earnings
Published
WILLIAMSPORT, Pa., July 21, 2022 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)Penns Woods Bancorp, Inc. achieved net income of $7.7 million for the six months ended June 30, 2022, resulting in basic and diluted earnings per share of $1.08.
*Highlights*
· Net income, as reported under GAAP, for the three and six months ended June 30, 2022 was $4.2 million and $7.7 million, respectively, compared to $3.6 million and $7.0 million for the same periods of 2021. Results for the three and six months ended June 30, 2022 compared to 2021 were impacted by an increase in after-tax securities losses of $154,000 (from a gain of $111,000 to a loss of $43,000) for the three month period and an increase in after-tax securities losses of $296,000 (from a gain of $205,000 to a loss of $91,000) for the six month period. Results for the three and six months ended June 30, 2022 were impacted by additional compensation expense of $183,000 (after-tax $145,000) associated with the voluntary cash settlement of 346,725 outstanding stock options. In addition, an after-tax loss of $201,000 related to a branch closure negatively impacted results for the six months ended June 30, 2022.· The provision for loan losses decreased $20,000 and $385,000 for the three and six months ended June 30, 2022 to $330,000 and $480,000, respectively, compared to $350,000 and $865,000 for the 2021 periods. The provision for loan losses was elevated during 2021 due primarily to the uncertainty caused by the COVID-19 pandemic.· Basic and diluted earnings per share for the three and six months ended June 30, 2022 were $0.60 and $1.08. Basic and diluted earnings per share for the three and six months ended June 30, 2021 were $0.51 and $1.00.· Annualized return on average assets was 0.88% for three months ended June 30, 2022, compared to 0.76% for the corresponding period of 2021. Annualized return on average assets was 0.80% for the six months ended June 30, 2022, compared to 0.75% for the corresponding period of 2021.· Annualized return on average equity was 10.15% for the three months ended June 30, 2022, compared to 8.70% for the corresponding period of 2021. Annualized return on average equity was 9.20% for the six months ended June 30, 2022, compared to 8.69% for the corresponding period of 2021.*Net Income*
Net income from core operations (“core earnings”), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains or losses, was $4.3 million for the three months ended June 30, 2022 compared to $3.5 million for the same period of 2021. Core earnings were $7.8 million for the six months ended June 30, 2022, compared to $6.8 million for the same period of 2021. Core earnings per share for the three months ended June 30, 2022 were $0.61 basic and diluted, compared to $0.49 basic and diluted core earnings per share for the same period of 2021. Core earnings per share for the six months ended June 30, 2022 were $1.10 basic and diluted, compared to $0.97 basic and diluted for the same period of 2021. Core return on average assets and core return on average equity were 0.89% and 10.25% for the three months ended June 30, 2022, compared to 0.74% and 8.43% for the corresponding period of 2021. Core return on average assets and core return on average equity were 0.81% and 9.31% for the six months ended June 30, 2022 compared to 0.73% and 8.44% for the corresponding period of 2021. Core earnings for the three and six months ended June 30, 2022 were impacted negatively by an after-tax compensation expense of $145,000 relating to the voluntary cash settlement of 346,725 stock options while the six month period ended June 30, 2022 was also impacted negatively by an after-tax loss of $201,000 relating to a branch closure. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, and core earnings per share described in this press release to the comparable GAAP financial measures is included at the end of this press release.
*Net Interest Margin*
The net interest margin for the three and six months ended June 30, 2022 was 3.12% and 3.03%, compared to 2.78% and 2.83% for the corresponding periods of 2021. The increase in the net interest margin for the three and six month periods was driven by a decline in the rate paid on interest-bearing deposits of 29 and 33 basis points ("bps") as rates paid decreased throughout 2021 and remained at historically low levels during 2022. Leading the decline in the rate paid on interest-bearing deposits were decreases of 98 and 95 bps in the rate paid on time deposits as time deposits issued prior to the COVID-19 pandemic matured. The increase in the earning asset yield was driven by an increase in yield on federal funds sold and interest-bearing deposits due to the rate increases enacted by the Federal Open Market Committee ("FOMC"). For the three and six months ended June 30, 2022 there was an increase in rate on federal funds sold of 57 and 30 bps, respectively, while the rate on interest bearing deposits increased 57 and 26 bps.
*Assets*
Total assets decreased $3.1 million to $1.9 billion at June 30, 2022 compared to June 30, 2021. Cash and cash equivalents decreased $176.1 million as interest-bearing accounts in other financial institutions decreased $174.9 million. Net loans increased $151.2 million to $1.5 billion at June 30, 2022 compared to June 30, 2021, as an emphasis was placed on commercial loan growth and customers focused on obtaining funding prior to additional FOMC rate increases. The investment portfolio increased $18.9 million from June 30, 2021 to June 30, 2022 as a portion of the excess cash liquidity was invested primarily into short-term municipal bonds with a maturity of five years or less.
*Non-performing Loans*
The ratio of non-performing loans to total loans ratio decreased to 0.34% at June 30, 2022 from 0.59% at June 30, 2021 as non-performing loans have decreased to $5.1 million at June 30, 2022 from $7.9 million at June 30, 2021. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $263,000 for the six months ended June 30, 2022 impacted the allowance for loan losses, which was 0.97% of total loans at June 30, 2022 compared to 1.08% at June 30, 2021.
*Deposits*
Deposits increased $25.9 million to $1.6 billion at June 30, 2022 compared to June 30, 2021. Noninterest-bearing deposits increased $46.9 million to $524.3 million at June 30, 2022 compared to June 30, 2021. Driving deposit growth was the continued emphasis on increasing the utilization of electronic (internet and mobile) deposit banking among our customers. Utilization of internet and mobile banking has increased since the start of 2020 due to these efforts coupled with a change in consumer behavior due to the business and travel restrictions caused by the COVID-19 pandemic. Interest-bearing deposits decreased due to the maturity of higher cost time deposits. The increased level of deposits has allowed for a $28.2 million decrease in long-term borrowings.
*Shareholders’ Equity*
Shareholders’ equity decreased $781,000 to $166.1 million at June 30, 2022 compared to June 30, 2021. Accumulated other comprehensive loss of $9.7 million at June 30, 2022 increased from a loss of $1.4 million at June 30, 2021 as a result of a $6.2 million net unrealized loss on available for sale securities at June 30, 2022 compared to a unrealized gain of $4.1 million at June 30, 2021 coupled with a decrease in loss of $2.1 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $23.56 at June 30, 2022 compared to $23.63 at June 30, 2021, and an equity to asset ratio of 8.78% at June 30, 2022 and 8.80% at June 30, 2021. Dividends declared for the six months ended June 30, 2022 and 2021 were $0.64 per share.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products. Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.
NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; or (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies. For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A. Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.
Contact: Richard A. Grafmyre, Chief Executive Officer 110 Reynolds Street Williamsport, PA 17702 570-322-1111 e-mail: pwod@pwod.com
*PENNS WOODS BANCORP, INC.*
*CONSOLIDATED BALANCE SHEET*
*(UNAUDITED)*
* * *June 30,*
*(In Thousands, Except Share and Per Share Data)* *2022* *2021* *% Change*
ASSETS:
Noninterest-bearing balances $ 26,540 $ 27,731 (4.29 )%
Interest-bearing balances in other financial institutions 24,452 199,389 (87.74 )%
Federal funds sold 40,000 40,000 — %
Total cash and cash equivalents 90,992 267,120 (65.94 )%
Investment debt securities, available for sale, at fair value 192,438 171,783 12.02 %
Investment equity securities, at fair value 1,153 1,269 (9.14 )%
Investment securities, trading 33 43 (23.26 )%
Restricted investment in bank stock, at fair value 13,458 15,120 (10.99 )%
Loans held for sale 3,857 4,927 (21.72 )%
Loans 1,489,132 1,337,947 11.30 %
Allowance for loan losses (14,393 ) (14,438 ) 0.31 %
Loans, net 1,474,739 1,323,509 11.43 %
Premises and equipment, net 32,671 34,629 (5.65 )%
Accrued interest receivable 8,246 8,363 (1.40 )%
Bank-owned life insurance 34,115 34,005 0.32 %
Investment in limited partnerships 4,901 4,795 2.21 %
Goodwill 17,104 17,104 — %
Intangibles 396 568 (30.28 )%
Operating lease right of use asset 2,747 2,946 (6.75 )%
Deferred tax asset 5,689 3,624 56.98 %
Other assets 9,267 5,065 82.96 %
TOTAL ASSETS $ 1,891,806 $ 1,894,870 (0.16 )%
LIABILITIES:
Interest-bearing deposits $ 1,065,291 $ 1,086,352 (1.94 )%
Noninterest-bearing deposits 524,288 477,344 9.83 %
Total deposits 1,589,579 1,563,696 1.66 %
Short-term borrowings 5,464 7,520 (27.34 )%
Long-term borrowings 112,874 141,051 (19.98 )%
Accrued interest payable 452 961 (52.97 )%
Operating lease liability 2,800 2,992 (6.42 )%
Other liabilities 14,583 11,815 23.43 %
TOTAL LIABILITIES 1,725,752 1,728,035 (0.13 )%
SHAREHOLDERS’ EQUITY:
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued — — n/a
Common stock, par value $5.55, 22,500,000 shares authorized; 7,559,165 and 7,541,627 shares issued; 7,048,940 and 7,061,042 shares outstanding 41,995 41,897 0.23 %
Additional paid-in capital 53,651 53,205 0.84 %
Retained earnings 92,903 85,281 8.94 %
Accumulated other comprehensive (loss) gain:
Net unrealized (loss) gain on available for sale securities (6,222 ) 4,085 (252.31 )%
Defined benefit plan (3,458 ) (5,523 ) 37.39 %
Treasury stock at cost, 510,225 and 480,225 (12,815 ) (12,115 ) 5.78 %
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY 166,054 166,830 (0.47 )%
Non-controlling interest — 5 (100.00 )%
TOTAL SHAREHOLDERS' EQUITY 166,054 166,835 (0.47 )%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,891,806 $ 1,894,870 (0.16 )%
*PENNS WOODS BANCORP, INC.*
*CONSOLIDATED STATEMENT OF INCOME*
*(UNAUDITED)*
*Three Months Ended June 30,* *Six Months Ended June 30,*
*(In Thousands, Except Share and Per Share Data)* *2022* *2021* *% Change* *2022* *2021* *% Change*
INTEREST AND DIVIDEND INCOME:
Loans including fees $ 13,620 $ 13,099 3.98 % $ 26,658 $ 26,444 0.81 %
Investment securities:
Taxable 864 838 3.10 % 1,601 1,657 (3.38 )%
Tax-exempt 194 164 18.29 % 358 335 6.87 %
Dividend and other interest income 506 305 65.90 % 842 565 49.03 %
TOTAL INTEREST AND DIVIDEND INCOME 15,184 14,406 5.40 % 29,459 29,001 1.58 %
INTEREST EXPENSE:
Deposits 710 1,489 (52.32 )% 1,498 3,173 (52.79 )%
Short-term borrowings 2 2 — % 3 4 (25.00 )%
Long-term borrowings 625 820 (23.78 )% 1,258 1,659 (24.17 )%
TOTAL INTEREST EXPENSE 1,337 2,311 (42.15 )% 2,759 4,836 (42.95 )%
NET INTEREST INCOME 13,847 12,095 14.49 % 26,700 24,165 10.49 %
PROVISION FOR LOAN LOSSES 330 350 (5.71 )% 480 865 (44.51 )%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 13,517 11,745 15.09 % 26,220 23,300 12.53 %
NON-INTEREST INCOME:
Service charges 509 379 34.30 % 1,004 762 31.76 %
Debt securities (losses) gains, available for sale (10 ) 137 (107.30 )% (12 ) 275 (104.36 )%
Equity securities (losses) gains (41 ) 4 (1,125.00 )% (99 ) (19 ) (421.05 )%
Securities (losses) gains, trading (3 ) (1 ) (200.00 )% (4 ) 3 (233.33 )%
Bank-owned life insurance 161 162 (0.62 )% 331 335 (1.19 )%
Gain on sale of loans 266 670 (60.30 )% . 611 1,578 (61.28 )%
Insurance commissions 107 150 (28.67 )% 277 307 (9.77 )%
Brokerage commissions 158 207 (23.67 )% 358 426 (15.96 )%
Loan broker income 371 238 55.88 % 912 677 34.71 %
Debit card income 391 398 (1.76 )% 736 778 (5.40 )%
Other 228 565 (59.65 )% 435 401 8.48 %
TOTAL NON-INTEREST INCOME 2,137 2,909 (26.54 )% 4,549 5,523 (17.64 )%
NON-INTEREST EXPENSE:
Salaries and employee benefits 6,141 5,672 8.27 % 12,405 11,270 10.07 %
Occupancy 740 717 3.21 % 1,650 1,693 (2.54 )%
Furniture and equipment 746 971 (23.17 )% 1,638 1,780 (7.98 )%
Software amortization 219 208 5.29 % 472 406 16.26 %
Pennsylvania shares tax 396 372 6.45 % 785 724 8.43 %
Professional fees 582 684 (14.91 )% 1,120 1,267 (11.60 )%
Federal Deposit Insurance Corporation deposit insurance 228 264 (13.64 )% 430 485 (11.34 )%
Marketing 220 140 57.14 % 284 203 39.90 %
Intangible amortization 41 50 (18.00 )% 85 103 (17.48 )%
Other 1,107 1,170 (5.38 )% 2,558 2,268 12.79 %
TOTAL NON-INTEREST EXPENSE 10,420 10,248 1.68 % 21,427 20,199 6.08 %
INCOME BEFORE INCOME TAX PROVISION 5,234 4,406 18.79 % 9,342 8,624 8.33 %
INCOME TAX PROVISION 1,003 813 23.37 % 1,679 1,584 6.00 %
NET INCOME $ 4,231 $ 3,593 17.76 % $ 7,663 $ 7,040 8.85 %
Earnings attributable to noncontrolling interest — 5 (100.00 )% — 11 (100.00 )%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $ 4,231 $ 3,588 17.92 % $ 7,663 $ 7,029 9.02 %
EARNINGS PER SHARE - BASIC $ 0.60 $ 0.51 17.65 % $ 1.08 $ 1.00 8.00 %
EARNINGS PER SHARE - DILUTED $ 0.60 $ 0.51 17.65 % $ 1.08 $ 1.00 8.00 %
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 7,059,045 7,059,667 (0.01 )% 7,065,772 7,057,404 0.12 %
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 7,059,045 7,059,667 (0.01 )% 7,065,772 7,057,404 0.12 %
*PENNS WOODS BANCORP, INC.*
*AVERAGE BALANCES AND INTEREST RATES *
*(UNAUDITED)*
* * *Three Months Ended*
* * *June 30, 2022* *June 30, 2021*
*(Dollars in Thousands)* *Average *
*Balance* *Interest* *Average *
*Rate* *Average *
*Balance* *Interest* *Average *
*Rate*
ASSETS:
Tax-exempt loans $ 52,886 $ 331 2.51 % $ 46,926 $ 334 2.85 %
All other loans 1,394,631 13,358 3.84 % 1,285,853 12,835 4.00 %
Total loans 1,447,517 13,689 3.79 % 1,332,779 13,169 3.96 %
Federal funds sold 48,352 154 1.28 % 25,538 45 0.71 %
Taxable securities 154,484 1,048 2.75 % 148,415 1,051 2.87 %
Tax-exempt securities 45,824 245 2.17 % 36,469 208 2.31 %
Total securities 200,308 1,293 2.62 % 184,884 1,259 2.76 %
Interest-bearing deposits 102,172 168 0.66 % 218,868 48 0.09 %
Total interest-earning assets 1,798,349 15,304 3.42 % 1,762,069 14,521 3.31 %
Other assets 131,117 128,402
TOTAL ASSETS $ 1,929,466 $ 1,890,471
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings $ 248,063 24 0.04 % $ 225,625 28 0.05 %
Super Now deposits 388,002 239 0.25 % 285,672 208 0.29 %
Money market deposits 304,636 210 0.28 % 309,749 256 0.33 %
Time deposits 164,301 237 0.58 % 256,345 997 1.56 %
Total interest-bearing deposits 1,105,002 710 0.26 % 1,077,391 1,489 0.55 %
Short-term borrowings 5,636 2 0.14 % 7,047 2 0.11 %
Long-term borrowings 112,901 625 2.22 % 141,076 820 2.33 %
Total borrowings 118,537 627 2.12 % 148,123 822 2.23 %
Total interest-bearing liabilities 1,223,539 1,337 0.44 % 1,225,514 2,311 0.76 %
Demand deposits 518,467 482,513
Other liabilities 20,708 17,384
Shareholders’ equity 166,752 165,060
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,929,466 $ 1,890,471
Interest rate spread 2.98 % 2.55 %
Net interest income/margin $ 13,967 3.12 % $ 12,210 2.78 %
*Three Months Ended June 30,*
* * *2022* *2021*
Total interest income $ 15,184 $ 14,406
Total interest expense 1,337 2,311
Net interest income (GAAP) 13,847 12,095
Tax equivalent adjustment 120 115
Net interest income (fully taxable equivalent) (non-GAAP) $ 13,967 $ 12,210
*PENNS WOODS BANCORP, INC.*
*AVERAGE BALANCES AND INTEREST RATES *
*(UNAUDITED)*
*Six Months Ended*
* * *June 30, 2022* *June 30, 2021*
*(Dollars in Thousands)* *Average *
*Balance* *Interest* *Average *
*Rate* *Average *
*Balance* *Interest* *Average *
*Rate*
ASSETS:
Tax-exempt loans $ 50,775 $ 639 2.54 % $ 46,177 $ 684 2.99 %
All other loans 1,372,810 26,153 3.84 % 1,289,660 25,904 4.05 %
Total loans 1,423,585 26,792 3.80 % 1,335,837 26,588 4.01 %
Federal funds sold 49,171 247 1.01 % 12,840 45 0.71 %
Taxable securities 149,489 1,968 2.67 % 146,740 2,083 2.88 %
Tax-exempt securities 43,416 453 2.12 % 36,420 424 2.36 %
Total securities 192,905 2,421 2.54 % 183,160 2,507 2.78 %
Interest-bearing deposits 129,704 228 0.35 % 207,495 94 0.09 %
Total interest-earning assets 1,795,365 29,688 3.34 % 1,739,332 29,234 3.39 %
Other assets 128,624 126,418
TOTAL ASSETS $ 1,923,989 $ 1,865,750
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings $ 244,528 46 0.04 % $ 220,161 72 0.07 %
Super Now deposits 379,496 434 0.23 % 287,444 475 0.33 %
Money market deposits 301,744 396 0.26 % 307,885 523 0.34 %
Time deposits 177,487 622 0.71 % 255,408 2,103 1.66 %
Total interest-bearing deposits 1,103,255 1,498 0.27 % 1,070,898 3,173 0.60 %
Short-term borrowings 5,416 3 0.11 % 6,368 4 0.13 %
Long-term borrowings 114,077 1,258 2.23 % 141,279 1,659 2.37 %
Total borrowings 119,493 1,261 2.13 % 147,647 1,663 2.27 %
Total interest-bearing liabilities 1,222,748 2,759 0.46 % 1,218,545 4,836 0.80 %
Demand deposits 512,441 464,237
Other liabilities 22,184 21,227
Shareholders’ equity 166,616 161,741
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,923,989 $ 1,865,750
Interest rate spread 2.88 % 2.59 %
Net interest income/margin $ 26,929 3.03 % $ 24,398 2.83 %
*Six Months Ended June 30,*
* * *2022* *2021*
Total interest income $ 29,459 $ 29,001
Total interest expense 2,759 4,836
Net interest income 26,700 24,165
Tax equivalent adjustment 229 233
Net interest income (fully taxable equivalent) $ 26,929 $ 24,398
*(Dollars in Thousands, Except Per Share Data, Unaudited)* *Quarter Ended* *6/30/2022* *3/31/2022* *12/31/2021* *9/30/2021* *6/30/2021*
*Operating Data*
Net income $ 4,231 $ 3,432 $ 4,879 $ 4,125 $ 3,588
Net interest income 13,847 12,853 12,921 12,632 12,095
Provision for loan losses 330 150 (300 ) 75 350
Net security (losses) gains (54 ) (61 ) 360 40 140
Non-interest income, excluding net security gains 2,191 2,473 2,835 2,911 2,769
Non-interest expense 10,420 11,007 10,259 10,447 10,248
*Performance Statistics*
Net interest margin 3.12 % 2.93 % 2.90 % 2.85 % 2.78 %
Annualized return on average assets 0.88 % 0.72 % 1.02 % 0.86 % 0.76 %
Annualized return on average equity 10.15 % 8.17 % 11.59 % 9.85 % 8.70 %
Annualized net loan (recoveries) charge-offs to average loans (0.01 )% 0.09 % 0.02 % (0.01 )% 0.03 %
Net (recoveries) charge-offs (40 ) 303 81 (44 ) 114
Efficiency ratio 64.72 % 71.53 % 64.83 % 66.93 % 68.61 %
*Per Share Data*
Basic earnings per share $ 0.60 $ 0.49 $ 0.69 $ 0.58 $ 0.51
Diluted earnings per share 0.60 0.49 0.69 0.58 0.51
Dividend declared per share 0.32 0.32 0.32 0.32 0.32
Book value 23.56 23.81 24.37 23.84 23.63
Common stock price:
High 24.35 24.67 24.65 24.42 26.51
Low 22.34 23.64 23.50 22.78 23.03
Close 23.09 24.43 23.65 23.92 23.82
Weighted average common shares:
Basic 7,059 7,073 7,068 7,064 7,060
Fully Diluted 7,059 7,073 7,068 7,064 7,060
End-of-period common shares:
Issued 7,559 7,555 7,550 7,546 7,542
Treasury (510 ) (480 ) (480 ) (480 ) (480 )
*(Dollars in Thousands, Except Per Share Data, Unaudited)* *Quarter Ended* *6/30/2022* *3/31/2022* *12/31/2021* *9/30/2021* *6/30/2021*
*Financial Condition Data:*
*General*
Total assets $ 1,891,806 $ 1,916,809 $ 1,940,809 $ 1,910,791 $ 1,894,870
Loans, net 1,474,739 1,391,943 1,377,971 1,332,668 1,323,509
Goodwill 17,104 17,104 17,104 17,104 17,104
Intangibles 396 437 480 524 568
Total deposits 1,589,579 1,612,395 1,621,315 1,593,019 1,563,696
Noninterest-bearing 524,288 514,130 494,360 481,875 477,344
Savings 249,057 245,661 236,312 231,189 226,573
NOW 353,102 379,838 366,399 340,441 296,450
Money Market 309,453 299,166 318,877 305,156 301,405
Time Deposits 153,679 173,600 205,367 234,358 261,924
Total interest-bearing deposits 1,065,291 1,098,265 1,126,955 1,111,144 1,086,352
Core deposits* 1,435,900 1,438,795 1,415,948 1,358,661 1,301,772
Shareholders’ equity 166,054 168,427 172,274 168,478 166,830
*Asset Quality*
Non-performing loans $ 5,100 $ 5,281 $ 6,250 $ 7,763 $ 7,931
Non-performing loans to total assets 0.27% 0.28% 0.32% 0.41% 0.42%
Allowance for loan losses 14,393 14,023 14,176 14,557 14,438
Allowance for loan losses to total loans 0.97% 1.00% 1.02% 1.08% 1.08%
Allowance for loan losses to non-performing loans 282.22% 265.54% 226.82% 187.52% 182.05%
Non-performing loans to total loans 0.34% 0.38% 0.45% 0.58% 0.59%
*Capitalization*
Shareholders’ equity to total assets 8.78% 8.79% 8.88% 8.82% 8.80%
* Core deposits are defined as total deposits less time deposits
*Reconciliation of GAAP and Non-GAAP Financial Measures*
*(UNAUDITED)*
*Three Months Ended
June 30,* *Six Months Ended
June 30,*
*(Dollars in Thousands, Except Per Share Data)* *2022* *2021* *2022* *2021*
GAAP net income $ 4,231 $ 3,588 $ 7,663 $ 7,029
Less: net securities (losses) gains, net of tax (43 ) 111 (91 ) 205
Non-GAAP core earnings $ 4,274 $ 3,477 $ 7,754 $ 6,824
* * *Three Months Ended
June 30,* *Six Months Ended
June 30,*
* * *2022* *2021* *2022* *2021*
Return on average assets (ROA) 0.88 % 0.76 % 0.80 % 0.75 %
Less: net securities (losses) gains, net of tax (0.01 )% 0.02 % (0.01 )% 0.02 %
Non-GAAP core ROA 0.89 % 0.74 % 0.81 % 0.73 %
* * *Three Months Ended
June 30,* *Six Months Ended
June 30,*
* * *2022* *2021* *2022* *2021*
Return on average equity (ROE) 10.15 % 8.70 % 9.20 % 8.69 %
Less: net securities (losses) gains, net of tax (0.10 )% 0.27 % (0.11 )% 0.25 %
Non-GAAP core ROE 10.25 % 8.43 % 9.31 % 8.44 %
* * *Three Months Ended
June 30,* *Six Months Ended
June 30,*
* * *2022* *2021* *2022* *2021*
Basic earnings per share (EPS) $ 0.60 $ 0.51 $ 1.08 $ 1.00
Less: net securities (losses) gains, net of tax (0.01 ) 0.02 (0.02 ) 0.03
Non-GAAP basic core EPS $ 0.61 $ 0.49 $ 1.10 $ 0.97
* * *Three Months Ended
June 30,* *Six Months Ended
June 30,*
* * *2022* *2021* *2022* *2021*
Diluted EPS $ 0.60 $ 0.51 $ 1.08 $ 1.00
Less: net securities (losses) gains, net of tax (0.01 ) 0.02 (0.02 ) 0.03
Non-GAAP diluted core EPS $ 0.61 $ 0.49 $ 1.10 $ 0.97