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Penns Woods Bancorp, Inc. Reports Third Quarter 2021 Earnings

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WILLIAMSPORT, Pa., Oct. 22, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $11.2 million for the nine months ended September 30, 2021, resulting in basic and diluted earnings per share of $1.58.

Highlights

  • Net income, as reported under GAAP, for the three and nine months ended September 30, 2021 was $4.1 million and $11.2 million, respectively, compared to $4.5 million and $11.3 million for the same periods of 2020. Results for the three and nine months ended September 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $767,000 (from a gain of $799,000 to a gain of $32,000) for the three month period and a decrease in after-tax securities gains of $739,000 (from a gain of $975,000 to a gain of $236,000) for the nine month period.

  • The provision for loan losses decreased $570,000 and $1.1 million, respectively, for the three and nine months ended September 30, 2021, to $75,000 and $940,000 compared to $645,000 and $2.0 million for the 2020 periods. The provision for loan losses was elevated in 2020 due primarily to the uncertainty caused by the COVID-19 pandemic.

  • Basic and diluted earnings per share for the three and nine months ended September 30, 2021 were $0.58 and $1.58, respectively. Basic and diluted earnings per share for the three and nine months ended September 30, 2020 were $0.63 and $1.61, respectively.

  • Return on average assets was 0.86% for three months ended September 30, 2021, compared to 0.97% for the corresponding period of 2020. Return on average assets was 0.79% for the nine months ended September 30, 2021, compared to 0.85% for the corresponding period of 2020.

  • Return on average equity was 9.85% for the three months ended September 30, 2021, compared to 11.05% for the corresponding period of 2020. Return on average equity was 9.17% for the nine months ended September 30, 2021, compared to 9.57% for the corresponding period of 2020.

COVID-19 Activity

  • Approximately one third of employees working remotely.

  • As of September 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $1.3 million in loan principal remaining in deferral.

  • All COVID-19 related loan deferrals meet the requirements to not be considered a troubled debt restructuring.

  • Participated in the Paycheck Protection Program ("PPP") by primarily utilizing third parties to service and place the loans.

  • Significantly reduced deposit rates during the latter half of March 2020 continuing through September 2021.

  • Total paycheck protection program loans originated to be held on balance sheet totaled $30.6 million with $10.6 million remaining on the balance sheet at September 30, 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 $4.1 million for the three months ended September 30, 2021 compared to $3.7 million for the same period of 2020. Core earnings were $10.9 million for the nine months ended September 30, 2021, compared to $10.3 million for the same period of 2020. Core earnings per share for the three months ended September 30, 2021 were $0.58 basic and diluted, compared to $0.52 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the nine months ended September 30, 2021 were $1.55 basic and diluted, compared to $1.47 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.86% and 9.78% for the three months ended September 30, 2021, compared to 0.79% and 9.08% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.77% and 8.98% for the nine months ended September 30, 2021 compared to 0.78% and 8.75% for the corresponding period of 2020. 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 nine months ended September 30, 2021 was 2.85% and 2.84%, compared to 2.76% and 2.97% for the corresponding period of 2020. The increase in the net interest margin for the nine month period was driven by a decrease in the yield of the loan portfolio of 19 and 32 basis points ("bps"), while the investment portfolio yield declined 51 and 59 bps, respectively, during the current low interest rate environment. Further compressing the net interest margin was the significant increase of interest-bearing deposits. These deposits carry a current yield of a few basis points and have increased in average balance as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing deposit liabilities decreased 48 and 53 bps as rates paid were decreased significantly during 2020 due to the economic impact of COVID-19 prolonging the low interest rate environment. These deposit rate decreases have partially offset the decline in earning asset yield.

Assets

Total assets increased $70.0 million to $1.9 billion at September 30, 2021 compared to September 30, 2020. Cash and cash equivalents increased significantly due to deposit growth resulting from the various economic recovery programs instituted at the state and federal levels that impacted both commercial and retail customers, coupled with customers becoming more risk averse and seeking safety in a bank deposit. Net loans decreased $3.0 million to $1.3 billion at September 30, 2021 compared to September 30, 2020, as the COVID-19 business and travel restrictions and supply chain interruptions curtailed various lending activities such as indirect auto, home equity, and commercial. Lending activity began to rebound as business and travel restrictions were lessened during the second half of 2020 and continues to rebound in 2021. The investment portfolio increased $16.7 million from September 30, 2020 to September 30, 2021 as a portion of the excess cash liquidity was invested into short-term municipal bonds.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.58% at September 30, 2021 from 0.78% at September 30, 2020 as non-performing loans have decreased to $7.8 million at September 30, 2021 from $10.6 million at September 30, 2020, primarily due to a commercial loan relationship that was paid-off during the fourth quarter of 2020. 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 $186,000 for the nine months ended September 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at September 30, 2021 compared to 1.00% at September 30, 2020.

Deposits

Deposits increased $101.2 million to $1.6 billion at September 30, 2021 compared to September 30, 2020. Noninterest-bearing deposits increased $47.6 million to $481.9 million at September 30, 2021 compared to September 30, 2020. Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk averse and seeking safety in a bank deposit. Emphasis remains 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. The increased level of deposits has allowed for a decrease in short and long-term borrowings.

Shareholders’ Equity

Shareholders’ equity increased $6.1 million to $168.5 million at September 30, 2021 compared to September 30, 2020. Accumulated other comprehensive loss of $2.0 million at September 30, 2021 increased from a loss of $678,000 at September 30, 2020 primarily as a result of a decrease of $936,000 in the net unrealized gain on available for sale securities. The current level of shareholders’ equity equates to a book value per share of $23.84 at September 30, 2021 compared to $23.05 at September 30, 2020, and an equity to asset ratio of 8.82% at September 30, 2021 and September 30, 2020. Dividends declared for the nine months ended September 30, 2021 and 2020 were $0.96 per share..

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates eighteen 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, 2020.

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)

September 30,

(In Thousands, Except Share Data)

2021

2020

% Change

ASSETS:

Noninterest-bearing balances

$

35,523

$

34,987

1.53

%

Interest-bearing balances in other financial institutions

206,124

191,285

7.76

%

Federal funds sold

40,000

n/a

Total cash and cash equivalents

281,647

226,272

24.47

%

Investment debt securities, available for sale, at fair value

166,760

149,675

11.41

%

Investment equity securities, at fair value

1,263

1,291

(2.17

)

%

Investment securities, trading

40

35

14.29

%

Restricted investment in bank stock, at fair value

14,649

15,006

(2.38

)

%

Loans held for sale

3,246

6,647

(51.17

)

%

Loans

1,347,225

1,349,140

(0.14

)

%

Allowance for loan losses

(14,557

)

(13,429

)

8.40

%

Loans, net

1,332,668

1,335,711

(0.23

)

%

Premises and equipment, net

34,434

32,886

4.71

%

Accrued interest receivable

8,529

8,540

(0.13

)

%

Bank-owned life insurance

33,836

33,474

1.08

%

Investment in limited partnerships

5,014

2,524

98.65

%

Goodwill

17,104

17,104

%

Intangibles

524

724

(27.62

)

%

Operating lease right of use asset

2,899

3,184

(8.95

)

%

Deferred tax asset

4,049

3,409

18.77

%

Other assets

4,129

4,297

(3.91

)

%

TOTAL ASSETS

$

1,910,791

$

1,840,779

3.80

%

LIABILITIES:

Interest-bearing deposits

$

1,111,144

$

1,057,562

5.07

%

Noninterest-bearing deposits

481,875

434,248

10.97

%

Total deposits

1,593,019

1,491,810

6.78

%

Short-term borrowings

9,404

15,009

(37.34

)

%

Long-term borrowings

126,007

153,534

(17.93

)

%

Accrued interest payable

828

1,491

(44.47

)

%

Operating lease liability

2,947

3,219

(8.45

)

%

Other liabilities

10,105

13,287

(23.95

)

%

TOTAL LIABILITIES

1,742,310

1,678,350

3.81

%

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; 7,545,922 and 7,527,605 shares issued; 7,065,697 and 7,047,380 shares outstanding

41,921

41,820

0.24

%

Additional paid-in capital

53,508

52,268

2.37

%

Retained earnings

87,146

81,127

7.42

%

Accumulated other comprehensive gain (loss):

Net unrealized gain on available for sale securities

3,504

4,440

(21.08

)

%

Defined benefit plan

(5,486

)

(5,118

)

7.19

%

Treasury stock at cost, 480,225

(12,115

)

(12,115

)

%

TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY

168,478

162,422

3.73

%

Non-controlling interest

3

7

(57.14

)

%

TOTAL SHAREHOLDERS' EQUITY

168,481

162,429

3.73

%

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,910,791

$

1,840,779

3.80

%


PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(In Thousands, Except Per Share Data)

2021

2020

% Change

2021

2020

% Change

INTEREST AND DIVIDEND INCOME:

Loans including fees

$

13,382

$

14,080

(4.96

)

%

$

39,826

$

43,403

(8.24

)

%

Investment securities:

Taxable

834

925

(9.84

)

%

2,491

2,958

(15.79

)

%

Tax-exempt

160

170

(5.88

)

%

495

484

2.27

%

Dividend and other interest income

338

212

59.43

%

903

747

20.88

%

TOTAL INTEREST AND DIVIDEND INCOME

14,714

15,387

(4.37

)

%

43,715

47,592

(8.15

)

%

INTEREST EXPENSE:

Deposits

1,308

2,569

(49.09

)

%

4,481

8,406

(46.69

)

%

Short-term borrowings

3

8

(62.50

)

%

7

37

(81.08

)

%

Long-term borrowings

771

965

(20.10

)

%

2,430

2,893

(16.00

)

%

TOTAL INTEREST EXPENSE

2,082

3,542

(41.22

)

%

6,918

11,336

(38.97

)

%

NET INTEREST INCOME

12,632

11,845

6.64

%

36,797

36,256

1.49

%

PROVISION FOR LOAN LOSSES

75

645

(88.37

)

%

940

2,040

(53.92

)

%

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

12,557

11,200

12.12

%

35,857

34,216

4.80

%

NON-INTEREST INCOME:

Service charges

456

388

17.53

%

1,218

1,249

(2.48

)

%

Debt securities gains, available for sale

48

1,013

(95.26

)

%

323

1,220

(73.52

)

%

Equity securities (losses) gains

(6

)

n/a

(25

)

30

(183.33

)

%

Securities (losses) gains, trading

(2

)

(2

)

%

1

(16

)

106.25

%

Bank-owned life insurance

279

156

78.85

%

614

492

24.80

%

Gain on sale of loans

456

1,449

(68.53

)

%

.

2,034

2,921

(30.37

)

%

Insurance commissions

129

101

27.72

%

436

320

36.25

%

Brokerage commissions

237

224

5.80

%

663

779

(14.89

)

%

Debit card income

388

352

10.23

%

1,166

936

24.57

%

Other

966

354

172.88

%

2,044

1,162

75.90

%

TOTAL NON-INTEREST INCOME

2,951

4,035

(26.86

)

%

8,474

9,093

(6.81

)

%

NON-INTEREST EXPENSE:

Salaries and employee benefits

5,837

5,465

6.81

%

17,107

16,362

4.55

%

Occupancy

745

599

24.37

%

2,438

1,927

26.52

%

Furniture and equipment

883

837

5.50

%

2,663

2,525

5.47

%

Software amortization

226

257

(12.06

)

%

632

743

(14.94

)

%

Pennsylvania shares tax

373

340

9.71

%

1,097

948

15.72

%

Professional fees

615

608

1.15

%

1,882

1,888

(0.32

)

%

Federal Deposit Insurance Corporation deposit insurance

220

271

(18.82

)

%

705

650

8.46

%

Marketing

231

61

278.69

%

434

170

155.29

%

Intangible amortization

44

53

(16.98

)

%

147

174

(15.52

)

%

Other

1,273

1,216

4.69

%

3,541

4,041

(12.37

)

%

TOTAL NON-INTEREST EXPENSE

10,447

9,707

7.62

%

30,646

29,428

4.14

%

INCOME BEFORE INCOME TAX PROVISION

5,061

5,528

(8.45

)

%

13,685

13,881

(1.41

)

%

INCOME TAX PROVISION

932

1,051

(11.32

)

%

2,516

2,563

(1.83

)

%

NET INCOME

$

4,129

$

4,477

(7.77

)

%

$

11,169

$

11,318

(1.32

)

%

Earnings attributable to noncontrolling interest

4

5

(20.00

)

%

15

13

15.38

%

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'

$

4,125

$

4,472

(7.76

)

%

$

11,154

$

11,305

(1.34

)

%

EARNINGS PER SHARE - BASIC

$

0.58

$

0.63

(7.94

)

%

$

1.58

$

1.61

(1.86

)

%

EARNINGS PER SHARE - DILUTED

$

0.58

$

0.63

(7.94

)

%

$

1.58

$

1.61

(1.86

)

%

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC

7,063,994

7,045,336

0.26

%

7,059,625

7,042,578

0.24

%

WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED

7,063,994

7,045,336

0.26

%

7,059,625

7,042,578

0.24

%

DIVIDENDS DECLARED PER SHARE

$

0.32

$

0.32

%

$

0.96

$

0.96

%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

Three Months Ended

September 30, 2021

September 30, 2020

(Dollars in Thousands)

Average
Balance

Interest

Average
Rate

Average
Balance

Interest

Average
Rate

ASSETS:

Tax-exempt loans

$

46,193

$

307

2.64

%

$

42,047

$

386

3.65

%

All other loans

1,296,790

13,139

4.02

%

1,313,474

13,775

4.17

%

Total loans

1,342,983

13,446

3.97

%

1,355,521

14,161

4.16

%

Federal funds sold

40,000

72

0.71

%

%

Taxable securities

150,308

1,022

2.76

%

140,695

1,116

3.23

%

Tax-exempt securities

37,069

203

2.22

%

30,587

216

2.87

%

Total securities

187,377

1,225

2.65

%

171,282

1,332

3.16

%

Interest-bearing deposits

205,715

78

0.15

%

203,817

21

0.04

%

Total interest-earning assets

1,776,075

14,821

3.32

%

1,730,620

15,514

3.57

%

Other assets

132,820

121,901

TOTAL ASSETS

$

1,908,895

$

1,852,521

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Savings

$

228,255

22

0.04

%

$

199,420

51

0.10

%

Super Now deposits

308,591

219

0.28

%

273,190

489

0.71

%

Money market deposits

306,177

238

0.31

%

263,926

330

0.50

%

Time deposits

248,649

829

1.32

%

329,190

1,699

2.05

%

Total interest-bearing deposits

1,091,672

1,308

0.48

%

1,065,726

2,569

0.96

%

Short-term borrowings

8,696

3

0.14

%

17,517

8

0.18

%

Long-term borrowings

133,536

771

2.29

%

165,064

965

2.33

%

Total borrowings

142,232

774

2.16

%

182,581

973

2.12

%

Total interest-bearing liabilities

1,233,904

2,082

0.67

%

1,248,307

3,542

1.13

%

Demand deposits

490,500

424,753

Other liabilities

17,027

17,644

Shareholders’ equity

167,464

161,817

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,908,895

$

1,852,521

Interest rate spread

2.65

%

2.44

%

Net interest income/margin

$

12,739

2.85

%

$

11,972

2.76

%


Three Months Ended September 30,

2021

2020

Total interest income

$

14,714

$

15,387

Total interest expense

2,082

3,542

Net interest income

12,632

11,845

Tax equivalent adjustment

107

127

Net interest income (fully taxable equivalent)

$

12,739

$

11,972


Nine Months Ended

September 30, 2021

September 30, 2020

(Dollars in Thousands)

Average
Balance

Interest

Average
Rate

Average
Balance

Interest

Average
Rate

ASSETS:

Tax-exempt loans

$

46,217

$

991

2.87

%

$

46,476

$

1,138

3.27

%

All other loans

1,292,028

39,043

4.04

%

1,304,207

42,504

4.35

%

Total loans

1,338,245

40,034

4.00

%

1,350,683

43,642

4.32

%

Federal funds sold

21,993

117

0.71

%

%

Taxable securities

147,942

3,105

2.84

%

143,601

3,582

3.38

%

Tax-exempt securities

36,638

627

2.31

%

27,558

613

3.02

%

Total securities

184,580

3,732

2.73

%

171,159

4,195

3.32

%

Interest-bearing deposits

206,895

172

0.11

%

125,447

123

0.13

%

Total interest-earning assets

1,751,713

44,055

3.37

%

1,647,289

47,960

3.89

%

Other assets

128,567

116,868

TOTAL ASSETS

$

1,880,280

$

1,764,157

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Savings

$

222,889

94

0.06

%

$

189,205

209

0.15

%

Super Now deposits

294,570

694

0.31

%

248,327

1,322

0.71

%

Money market deposits

307,309

761

0.33

%

234,772

1,225

0.70

%

Time deposits

253,130

2,932

1.55

%

356,897

5,650

2.11

%

Total interest-bearing deposits

1,077,898

4,481

0.56

%

1,029,201

8,406

1.09

%

Short-term borrowings

7,152

7

0.13

%

13,195

37

0.37

%

Long-term borrowings

138,669

2,430

2.34

%

165,702

2,893

2.33

%

Total borrowings

145,821

2,437

2.23

%

178,897

2,930

2.19

%

Total interest-bearing liabilities

1,223,719

6,918

0.76

%

1,208,098

11,336

1.25

%

Demand deposits

473,088

378,889

Other liabilities

21,327

19,682

Shareholders’ equity

162,146

157,488

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,880,280

$

1,764,157

Interest rate spread

2.61

%

2.64

%

Net interest income/margin

$

37,137

2.84

%

$

36,624

2.97

%


Nine Months Ended September 30,

2021

2020

Total interest income

$

43,715

$

47,592

Total interest expense

6,918

11,336

Net interest income

36,797

36,256

Tax equivalent adjustment

340

368

Net interest income (fully taxable equivalent)

$

37,137

$

36,624


(Dollars in Thousands, Except Per Share Data)

Quarter Ended

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Operating Data

Net income

$

4,125

$

3,588

$

3,441

$

3,901

$

4,472

Net interest income

12,632

12,095

12,070

11,967

11,845

Provision for loan losses

75

350

515

585

645

Net security gains

40

140

119

374

1,011

Non-interest income, excluding net security gains

2,911

2,769

2,495

2,701

3,024

Non-interest expense

10,447

10,248

9,951

9,640

9,707

Performance Statistics

Net interest margin

2.85

%

2.78

%

2.88

%

2.81

%

2.76

%

Annualized return on average assets

0.86

%

0.76

%

0.75

%

0.85

%

0.97

%

Annualized return on average equity

9.85

%

8.70

%

8.59

%

9.55

%

11.05

%

Annualized net loan charge-offs (recoveries) to average loans

(0.01

)

%

0.03

%

0.04

%

0.06

%

0.06

%

Net charge-offs (recoveries)

(44

)

114

116

211

193

Efficiency ratio

66.93

%

68.61

%

67.96

%

65.36

%

64.89

%

Per Share Data

Basic earnings per share

$

0.58

$

0.51

$

0.49

$

0.55

$

0.63

Diluted earnings per share

0.58

0.51

0.49

0.55

0.63

Dividend declared per share

0.32

0.32

0.32

0.32

0.32

Book value

23.84

23.63

23.25

23.27

23.05

Common stock price:

21.12

21.12

High

24.42

26.51

27.78

27.30

22.83

Low

22.78

23.03

20.55

19.61

19.61

Close

23.92

23.82

24.09

26.01

19.85

Weighted average common shares:

Basic

7,064

7,060

7,055

7,050

7,045

Fully Diluted

7,064

7,060

7,055

7,050

7,045

End-of-period common shares:

Issued

7,546

7,542

7,537

7,533

7,528

Treasury

480

480

480

480

480


(Dollars in Thousands, Except Per Share Data)

Quarter Ended

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Financial Condition Data:

General

Total assets

$

1,910,791

$

1,894,870

$

1,896,192

$

1,834,643

$

1,840,779

Loans, net

1,332,668

1,323,509

1,321,697

1,330,524

1,335,711

Goodwill

17,104

17,104

17,104

17,104

17,104

Intangibles

524

568

618

671

724

Total deposits

1,593,019

1,563,696

1,564,364

1,494,443

1,491,810

Noninterest-bearing

481,875

477,344

478,916

449,357

434,248

Savings

231,189

226,573

224,890

209,924

202,781

NOW

340,441

296,450

290,355

287,775

268,463

Money Market

305,156

301,405

324,207

283,742

274,480

Time Deposits

234,358

261,924

245,996

263,645

311,838

Total interest-bearing deposits

1,111,144

1,086,352

1,085,448

1,045,086

1,057,562

Core deposits*

1,358,661

1,301,772

1,318,368

1,230,798

1,179,972

Shareholders’ equity

168,478

166,830

164,059

164,142

162,422

Asset Quality

Non-performing loans

$

7,763

$

7,931

$

9,272

$

10,334

$

10,553

Non-performing loans to total assets

0.41

%

0.42

%

0.49

%

0.56

%

0.57

%

Allowance for loan losses

14,557

14,438

14,202

13,803

13,429

Allowance for loan losses to total loans

1.08

%

1.08

%

1.06

%

1.03

%

1.00

%

Allowance for loan losses to non-performing loans

187.52

%

182.05

%

153.17

%

133.57

%

127.25

%

Non-performing loans to total loans

0.58

%

0.59

%

0.69

%

0.77

%

0.78

%

Capitalization

Shareholders’ equity to total assets

8.82

%

8.80

%

8.65

%

8.95

%

8.82

%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in Thousands, Except Per Share Data)

2021

2020

2021

2020

GAAP net income

$

4,125

$

4,472

$

11,154

$

11,305

Less: net securities gains, net of tax

32

799

236

975

Non-GAAP core earnings

$

4,093

$

3,673

$

10,918

$

10,330

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Return on average assets (ROA)

0.86

%

0.97

%

0.79

%

0.85

%

Less: net securities gains, net of tax

%

0.18

%

0.02

%

0.07

%

Non-GAAP core ROA

0.86

%

0.79

%

0.77

%

0.78

%

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Return on average equity (ROE)

9.85

%

11.05

%

9.17

%

9.57

%

Less: net securities gains, net of tax

0.07

%

1.97

%

0.19

%

0.82

%

Non-GAAP core ROE

9.78

%

9.08

%

8.98

%

8.75

%

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Basic earnings per share (EPS)

$

0.58

$

0.63

$

1.58

$

1.61

Less: net securities gains, net of tax

0.11

0.03

0.14

Non-GAAP basic core EPS

$

0.58

$

0.52

$

1.55

$

1.47

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Diluted EPS

$

0.58

$

0.63

$

1.58

$

1.61

Less: net securities gains, net of tax

0.11

0.03

0.14

Non-GAAP diluted core EPS

$

0.58

$

0.52

$

1.55

$

1.47

COVID-19 Loan Deferrals as of September 30, 2021

(In Thousands)

Amount

Commercial, financial, and agricultural

$

Real estate mortgage:

Residential

1,066

Commercial

271

Consumer automobile loans

Other consumer installment loans

9

Total loan deferrals

$

1,346


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