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Penns Woods Bancorp, Inc. Reports Second Quarter 2021 Earnings

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WILLIAMSPORT, Pa., July 21, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $7.0 million for the six months ended June 30, 2021, resulting in basic and diluted earnings per share of $1.00.

Highlights

  • Net income, as reported under GAAP, for the three and six months ended June 30, 2021 was $3.6 million and $7.0 million, respectively, compared to $3.8 million and $6.8 million for the same period of 2020. Results for the three and six months ended June 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $45,000 (from a gain of $156,000 to a gain of $111,000) for the three month period and an increase in after-tax securities gains of $27,000 (from a gain of $178,000 to a gain of $205,000) for the six month period.

  • The provision for loan losses decreased $295,000 and $530,000, respectfully, for the three and six months ended June 30, 2021, to $350,000 and $865,000 compared to $645,000 and $1.4 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 six months ended June 30, 2021 were $0.51 and $1.00. Basic and diluted earnings per share for the three and six months ended June 30, 2020 were $0.53 and $0.97.

  • Return on average assets was 0.76% for three months ended June 30, 2021, compared to 0.85% for the corresponding period of 2020. Return on average assets was 0.75% for the six months ended June 30, 2021, compared to 0.79% for the corresponding period of 2020.

  • Return on average equity was 8.70% for the three months ended June 30, 2021, compared to 9.59% for the corresponding period of 2020. Return on average equity was 8.69% for the six months ended June 30, 2021, compared to 8.75% for the corresponding period of 2020.

COVID-19 Activity

  • Approximately one third of employees working remotely.

  • As of June 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $7.9 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 June 2021.

  • Total paycheck protection program loans originated to be held on balance sheet at June 30, 2021 total $21.6 million.

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 $3.5 million for the three months ended June 30, 2021 compared to $3.6 million for the same period of 2020. Core earnings were $6.8 million for the six months ended June 30, 2021, compared to $6.7 million for the same period of 2020. Core earnings per share for the three months ended June 30, 2021 were $0.49 basic and diluted, compared to $0.51 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the six months ended June 30, 2021 were $0.97 basic and diluted, compared to $0.95 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.74% and 8.43% for the three months ended June 30, 2021, compared to 0.81% and 9.19% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.73% and 8.44% for the six months ended June 30, 2021 compared to 0.77% and 8.52% 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 six months ended June 30, 2021 was 2.78% and 2.83%, compared to 3.01% and 3.09% for the corresponding period of 2020. The decrease in the net interest margin was driven by a decrease in the yield of the loan portfolio of 47 and 39 basis points ("bps"), while the investment portfolio yield declined 50 and 62 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 as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing deposit liabilities decreased 54 and 56 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 $56.5 million to $1.9 billion at June 30, 2021 compared to June 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 $12.9 million to $1.3 billion at June 30, 2021 compared to June 30, 2020, as the COVID-19 business and travel restrictions 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 $7.7 million from June 30, 2020 to June 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 0.59% at June 30, 2021 from 0.82% at June 30, 2020 as non-performing loans have decreased to $7.9 million at June 30, 2021 from $11.1 million at June 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 $230,000 for the six months ended June 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at June 30, 2021 compared to 0.96% at June 30, 2020.

Deposits

Deposits increased $89.4 million to $1.6 billion at June 30, 2021 compared to June 30, 2020. Noninterest-bearing deposits increased $59.0 million to $477.3 million at June 30, 2021 compared to June 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 have allowed for a decrease in short and long-term borrowings.

Shareholders’ Equity

Shareholders’ equity increased $7.3 million to $166.8 million at June 30, 2021 compared to June 30, 2020. Accumulated other comprehensive loss of $1.4 million at June 30, 2021 increased from a loss of $1.0 million at June 30, 2020 primarily as a result of a change in the net excess of the projected benefit obligations under the defined benefit plan over the fair value of the plan’s assets, resulting in an increase in the net loss of $364,000. The current level of shareholders’ equity equates to a book value per share of $23.63 at June 30, 2021 compared to $22.66 at June 30, 2020, and an equity to asset ratio of 8.80% at June 30, 2021 compared to 8.68% at June 30, 2020. Dividends declared for the six months ended June 30, 2021 and 2020 were $0.64 per share, respectively.

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. Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group. Insurance products are offered through United Insurance Solutions, LLC, a joint venture that is a subsidiary of the holding company.

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)

June 30,

(In Thousands, Except Share Data)

2021

2020

% Change

ASSETS:

Noninterest-bearing balances

$

27,731

$

26,932

2.97

%

Interest-bearing balances in other financial institutions

199,389

188,242

5.92

%

Federal funds sold

40,000

n/a

Total cash and cash equivalents

267,120

215,174

24.14

%

Investment debt securities, available for sale, at fair value

171,783

164,369

4.51

%

Investment equity securities, at fair value

1,269

1,291

(1.70

)%

Investment securities, trading

43

37

16.22

%

Restricted investment in bank stock, at fair value

15,120

14,849

1.83

%

Loans held for sale

4,927

5,146

(4.26

)%

Loans

1,337,947

1,349,347

(0.84

)%

Allowance for loan losses

(14,438

)

(12,977

)

11.26

%

Loans, net

1,323,509

1,336,370

(0.96

)%

Premises and equipment, net

34,629

32,873

5.34

%

Accrued interest receivable

8,363

8,068

3.66

%

Bank-owned life insurance

34,005

29,368

15.79

%

Investment in limited partnerships

4,795

1,596

200.44

%

Goodwill

17,104

17,104

%

Intangibles

568

777

(26.90

)%

Operating lease right of use asset

2,946

3,231

(8.82

)%

Deferred tax asset

3,624

3,284

10.35

%

Other assets

5,065

4,827

4.93

%

TOTAL ASSETS

$

1,894,870

$

1,838,364

3.07

%

LIABILITIES:

Interest-bearing deposits

$

1,086,352

$

1,055,981

2.88

%

Noninterest-bearing deposits

477,344

418,324

14.11

%

Total deposits

1,563,696

1,474,305

6.06

%

Short-term borrowings

7,520

15,133

(50.31

)%

Long-term borrowings

141,051

171,885

(17.94

)%

Accrued interest payable

961

1,530

(37.19

)%

Operating lease liability

2,992

3,263

(8.31

)%

Other liabilities

11,815

12,640

(6.53

)%

TOTAL LIABILITIES

1,728,035

1,678,756

2.94

%

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; 7,541,627 and 7,522,573 shares issued; 7,061,402 and 7,042,348 shares outstanding

41,897

41,792

0.25

%

Additional paid-in capital

53,205

51,956

2.40

%

Retained earnings

85,281

78,910

8.07

%

Accumulated other comprehensive gain (loss):

Net unrealized gain on available for sale securities

4,085

4,194

(2.60

)%

Defined benefit plan

(5,523

)

(5,159

)

(7.06

)%

Treasury stock at cost, 480,225

(12,115

)

(12,115

)

%

TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY

166,830

159,578

4.54

%

Non-controlling interest

5

30

(83.33

)%

TOTAL SHAREHOLDERS' EQUITY

166,835

159,608

4.53

%

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,894,870

$

1,838,364

3.07

%


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

Three Months Ended June 30,

Six Months Ended June 30,

(In Thousands, Except Per Share Data)

2021

2020

% Change

2021

2020

% Change

INTEREST AND DIVIDEND INCOME:

Loans including fees

$

13,099

$

14,666

(10.68

)%

$

26,444

$

29,323

(9.82

)%

Investment securities:

Taxable

838

1,023

(18.08

)%

1,657

2,033

(18.49

)%

Tax-exempt

164

169

(2.96

)%

335

314

6.69

%

Dividend and other interest income

305

186

63.98

%

565

535

5.61

%

TOTAL INTEREST AND DIVIDEND INCOME

14,406

16,044

(10.21

)%

29,001

32,205

(9.95

)%

INTEREST EXPENSE:

Deposits

1,489

2,802

(46.86

)%

3,173

5,837

(45.64

)%

Short-term borrowings

2

7

(71.43

)%

4

29

(86.21

)%

Long-term borrowings

820

985

(16.75

)%

1,659

1,928

(13.95

)%

TOTAL INTEREST EXPENSE

2,311

3,794

(39.09

)%

4,836

7,794

(37.95

)%

NET INTEREST INCOME

12,095

12,250

(1.27

)%

24,165

24,411

(1.01

)%

PROVISION FOR LOAN LOSSES

350

645

(45.74

)%

865

1,395

(37.99

)%

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

11,745

11,605

1.21

%

23,300

23,016

1.23

%

NON-INTEREST INCOME:

Service charges

379

312

21.47

%

762

861

(11.50

)%

Debt securities gains, available for sale

137

186

(26.34

)%

275

207

32.85

%

Equity securities gains (losses)

4

10

(60.00

%

(19

)

30

(163.33

)%

Securities (losses) gains, trading

(1

)

n/a

3

(14

)

121.43

%

Bank-owned life insurance

162

144

12.50

%

335

336

(0.30

)%

Gain on sale of loans

670

1,028

(34.82

)%

1,578

1,472

7.20

%

Insurance commissions

150

92

63.04

%

307

219

40.18

%

Brokerage commissions

207

186

11.29

%

426

555

(23.24

)%

Debit card income

398

310

28.39

%

778

584

33.22

%

Other

803

353

127.48

%

1,078

808

33.42

%

TOTAL NON-INTEREST INCOME

2,909

2,621

10.99

%

5,523

5,058

9.19

%

NON-INTEREST EXPENSE:

Salaries and employee benefits

5,672

5,230

8.45

%

11,270

10,897

3.42

%

Occupancy

717

626

14.54

%

1,693

1,328

27.48

%

Furniture and equipment

971

828

17.27

%

1,780

1,688

5.45

%

Software amortization

208

236

(11.86

)%

406

486

(16.46

)%

Pennsylvania shares tax

372

323

15.17

%

724

608

19.08

%

Professional fees

684

658

3.95

%

1,267

1,280

(1.02

)%

Federal Deposit Insurance Corporation deposit insurance

264

185

42.70

%

485

379

27.97

%

Marketing

140

56

150.00

%

203

109

86.24

%

Intangible amortization

50

59

(15.25

)%

103

121

(14.88

)%

Other

1,170

1,410

(17.02

)%

2,268

2,825

(19.72

)%

TOTAL NON-INTEREST EXPENSE

10,248

9,611

6.63

%

20,199

19,721

2.42

%

INCOME BEFORE INCOME TAX PROVISION

4,406

4,615

(4.53

)%

8,624

8,353

3.24

%

INCOME TAX PROVISION

813

851

(4.47

)%

1,584

1,512

4.76

%

NET INCOME

$

3,593

$

3,764

(4.54

)%

$

7,040

$

6,841

2.91

%

Earnings attributable to noncontrolling interest

5

4

25.00

%

11

8

37.50

%

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'

$

3,588

$

3,760

(4.57

)%

$

7,029

$

6,833

2.87

%

EARNINGS PER SHARE - BASIC

$

0.51

$

0.53

(3.77

)%

$

1.00

$

0.97

3.09

%

EARNINGS PER SHARE - DILUTED

$

0.51

$

0.53

(3.77

)%

$

1.00

$

0.97

3.09

%

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC

7,059,667

7,041,629

0.26

%

7,057,404

7,041,185

0.23

%

WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED

7,059,667

7,041,629

0.26

%

7,057,404

7,041,185

0.23

%

DIVIDENDS DECLARED PER SHARE

$

0.32

$

0.32

%

$

0.64

$

0.64

%


PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

Three Months Ended

June 30, 2021

June 30, 2020

(Dollars in Thousands)

Average
Balance

Interest

Average
Rate

Average
Balance

Interest

Average
Rate

ASSETS:

Tax-exempt loans

$

46,926

$

334

2.85

%

$

44,916

$

348

3.12

%

All other loans

1,285,853

12,835

4.00

%

1,294,745

14,391

4.47

%

Total loans

1,332,779

13,169

3.96

%

1,339,661

14,739

4.43

%

Federal funds sold

25,538

45

0.71

%

%

Taxable securities

148,415

1,051

2.87

%

147,352

1,193

3.29

%

Tax-exempt securities

36,469

208

2.31

%

28,280

213

3.06

%

Total securities

184,884

1,259

2.76

%

175,632

1,406

3.26

%

Interest-bearing deposits

218,868

48

0.09

%

144,948

16

0.04

%

Total interest-earning assets

1,762,069

14,521

3.31

%

1,660,241

16,161

3.92

%

Other assets

128,402

116,750

TOTAL ASSETS

$

1,890,471

$

1,776,991

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Savings

$

225,625

28

0.05

%

$

190,243

67

0.14

%

Super Now deposits

285,672

208

0.29

%

251,691

409

0.65

%

Money market deposits

309,749

256

0.33

%

229,362

418

0.73

%

Time deposits

256,345

997

1.56

%

362,545

1,908

2.12

%

Total interest-bearing deposits

1,077,391

1,489

0.55

%

1,033,841

2,802

1.09

%

Short-term borrowings

7,047

2

0.11

%

11,174

7

0.83

%

Long-term borrowings

141,076

820

2.33

%

171,895

985

2.21

%

Total borrowings

148,123

822

2.23

%

183,069

992

2.12

%

Total interest-bearing liabilities

1,225,514

2,311

0.76

%

1,216,910

3,794

1.24

%

Demand deposits

482,513

384,591

Other liabilities

17,384

18,583

Shareholders’ equity

165,060

156,907

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,890,471

$

1,776,991

Interest rate spread

2.55

%

2.68

%

Net interest income/margin

$

12,210

2.78

%

$

12,367

3.01

%


Three Months Ended June 30,

2021

2020

Total interest income

$

14,406

$

16,044

Total interest expense

2,311

3,794

Net interest income

12,095

12,250

Tax equivalent adjustment

115

117

Net interest income (fully taxable equivalent)

$

12,210

$

12,367


Six Months Ended

June 30, 2021

June 30, 2020

(Dollars in Thousands)

Average
Balance

Interest

Average
Rate

Average
Balance

Interest

Average
Rate

ASSETS:

Tax-exempt loans

$

46,177

$

684

2.99

%

$

48,346

$

752

3.13

%

All other loans

1,289,660

25,904

4.05

%

1,299,893

28,729

4.44

%

Total loans

1,335,837

26,588

4.01

%

1,348,239

29,481

4.40

%

Federal funds sold

12,840

45

0.71

%

%

Taxable securities

146,740

2,083

2.88

%

145,070

2,466

3.46

%

Tax-exempt securities

36,420

424

2.36

%

26,027

397

3.10

%

Total securities

183,160

2,507

2.78

%

171,097

2,863

3.40

%

Interest-bearing deposits

207,495

94

0.09

%

85,832

102

0.24

%

Total interest-earning assets

1,739,332

29,234

3.39

%

1,605,168

32,446

4.07

%

Other assets

126,418

114,085

TOTAL ASSETS

$

1,865,750

$

1,719,253

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Savings

$

220,161

72

0.07

%

$

184,042

158

0.17

%

Super Now deposits

287,444

475

0.33

%

235,758

833

0.71

%

Money market deposits

307,885

523

0.34

%

220,035

895

0.82

%

Time deposits

255,408

2,103

1.66

%

370,902

3,951

2.14

%

Total interest-bearing deposits

1,070,898

3,173

0.60

%

1,010,737

5,837

1.16

%

Short-term borrowings

6,368

4

0.13

%

11,011

29

0.53

%

Long-term borrowings

141,279

1,659

2.37

%

166,024

1,928

2.34

%

Total borrowings

147,647

1,663

2.27

%

177,035

1,957

2.22

%

Total interest-bearing liabilities

1,218,545

4,836

0.80

%

1,187,772

7,794

1.32

%

Demand deposits

464,237

355,704

Other liabilities

21,227

19,551

Shareholders’ equity

161,741

156,226

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,865,750

$

1,719,253

Interest rate spread

2.59

%

2.75

%

Net interest income/margin

$

24,398

2.83

%

$

24,652

3.09

%


Six Months Ended June 30,

2021

2020

Total interest income

$

29,001

$

32,205

Total interest expense

4,836

7,794

Net interest income

24,165

24,411

Tax equivalent adjustment

233

241

Net interest income (fully taxable equivalent)

$

24,398

$

24,652


(Dollars in Thousands, Except Per Share Data)

Quarter Ended

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

Operating Data

Net income

$

3,588

$

3,441

$

3,901

$

4,472

$

3,760

Net interest income

12,095

12,070

11,967

11,845

12,250

Provision for loan losses

350

515

585

645

645

Net security gains

140

119

374

1,011

196

Non-interest income, excluding net security gains

2,769

2,495

2,701

3,024

2,423

Non-interest expense

10,248

9,951

9,640

9,707

9,611

Performance Statistics

Net interest margin

2.78

%

2.88

%

2.81

%

2.76

%

3.01

%

Annualized return on average assets

0.76

%

0.75

%

0.85

%

0.97

%

0.85

%

Annualized return on average equity

8.70

%

8.59

%

9.55

%

11.05

%

9.60

%

Annualized net loan charge-offs to average loans

0.03

%

0.04

%

0.06

%

0.06

%

0.05

%

Net charge-offs

114

116

211

193

168

Efficiency ratio

68.61

%

67.96

%

65.36

%

64.89

%

65.10

%

Per Share Data

Basic earnings per share

$

0.51

$

0.49

$

0.55

$

0.63

$

0.53

Diluted earnings per share

0.51

0.49

0.55

0.63

0.53

Dividend declared per share

0.32

0.32

0.32

0.32

0.32

Book value

23.63

23.25

23.27

23.05

22.66

Common stock price:

High

26.51

27.78

27.30

22.83

27.75

Low

23.03

20.55

19.61

19.61

20.01

Close

23.82

24.09

26.01

19.85

22.71

Weighted average common shares:

Basic

7,060

7,055

7,050

7,045

7,042

Fully Diluted

7,060

7,055

7,050

7,045

7,042

End-of-period common shares:

Issued

7,542

7,537

7,533

7,528

7,523

Treasury

480

480

480

480

480


(Dollars in Thousands, Except Per Share Data)

Quarter Ended

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

Financial Condition Data:

General

Total assets

$

1,894,870

$

1,896,192

$

1,834,643

$

1,840,779

$

1,838,364

Loans, net

1,323,509

1,321,697

1,330,524

1,335,711

1,336,370

Goodwill

17,104

17,104

17,104

17,104

17,104

Intangibles

568

618

671

724

777

Total deposits

1,563,696

1,564,364

1,494,443

1,491,810

1,474,305

Noninterest-bearing

477,344

478,916

449,357

434,248

418,324

Savings

226,573

224,890

209,924

202,781

195,964

NOW

296,450

290,355

287,775

268,463

268,348

Money Market

301,405

324,207

283,742

274,480

247,753

Time Deposits

261,924

245,996

263,645

311,838

343,915

Total interest-bearing deposits

1,086,352

1,085,448

1,045,086

1,057,562

1,055,980

Core deposits*

1,301,772

1,318,368

1,230,798

1,179,972

1,130,389

Shareholders’ equity

166,830

164,059

164,142

162,422

159,578

Asset Quality

Non-performing loans

$

7,931

$

9,272

$

10,334

$

10,553

$

11,097

Non-performing loans to total assets

0.42

%

0.49

%

0.56

%

0.57

%

0.60

%

Allowance for loan losses

14,438

14,202

13,803

13,429

12,977

Allowance for loan losses to total loans

1.08

%

1.06

%

1.03

%

1.00

%

0.96

%

Allowance for loan losses to non-performing loans

182.05

%

153.17

%

133.57

%

127.25

%

116.94

%

Non-performing loans to total loans

0.59

%

0.69

%

0.77

%

0.78

%

0.82

%

Capitalization

Shareholders’ equity to total assets

8.80

%

8.65

%

8.95

%

8.82

%

8.68

%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in Thousands, Except Per Share Data)

2021

2020

2021

2020

GAAP net income

$

3,588

$

3,760

$

7,029

$

6,833

Less: net securities gains, net of tax

111

156

205

178

Non-GAAP core earnings

$

3,477

$

3,604

$

6,824

$

6,655

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Return on average assets (ROA)

0.76

%

0.85

%

0.75

%

0.79

%

Less: net securities gains, net of tax

0.02

%

0.04

%

0.02

%

0.02

%

Non-GAAP core ROA

0.74

%

0.81

%

0.73

%

0.77

%

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Return on average equity (ROE)

8.70

%

9.59

%

8.69

%

8.75

%

Less: net securities gains, net of tax

0.27

%

0.40

%

0.25

%

0.23

%

Non-GAAP core ROE

8.43

%

9.19

%

8.44

%

8.52

%

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Basic earnings per share (EPS)

$

0.51

$

0.53

$

1.00

$

0.97

Less: net securities gains, net of tax

0.02

0.02

0.03

0.02

Non-GAAP basic core EPS

$

0.49

$

0.51

$

0.97

$

0.95

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Diluted EPS

$

0.51

$

0.53

$

1.00

$

0.97

Less: net securities gains, net of tax

0.02

0.02

0.03

0.02

Non-GAAP diluted core EPS

$

0.49

$

0.51

$

0.97

$

0.95


COVID-19 Loan Deferrals as of June 30, 2021

(In Thousands)

Amount

Commercial, financial, and agricultural

$

140

Real estate mortgage:

Residential

892

Commercial

6,890

Consumer automobile loans

Other consumer installment loans

9

Total loan deferrals

$

7,931