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Penns Woods Bancorp, Inc. Reports Fourth Quarter 2020 Earnings

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Penns Woods Bancorp, Inc.
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WILLIAMSPORT, Pa., Jan. 29, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD) -

Penns Woods Bancorp, Inc. achieved net income of $15.2 million for the twelve months ended December 31, 2020, resulting in basic and diluted earnings per share of $2.16.

Highlights

  • Net income, as reported under GAAP, for the three and twelve months ended December 31, 2020 was $3.9 million and $15.2 million, respectively compared to $2.8 million and $15.7 million for the same periods of 2019. Results for the three and twelve months ended December 31, 2020 compared to 2019 were impacted by a decrease in after-tax securities gains of $91,000 (from a gain of $386,000 to a gain of $295,000) for the three month period and an increase in securities gains of $679,000 (from a gain of $591,000 to a gain of $1,270,000) for the twelve month period. Impacting the three and twelve months ended December 31, 2019 was a write down of assets held for sale and a loss on sale of premises and equipment that totaled $949,000.

  • Gain on sale of loans increased $719,000 and $2.4 million, respectfully, for the three and twelve months ended December 31, 2020, to $1.2 million and $4.1 million, respectively, compared to $508,000 and $1.8 million for the 2019 periods. The increase is the result of a significant increase in the number of consumers who are refinancing their mortgage due to the current low interest rate environment.

  • The provision for loan losses decreased $1.1 million and $110,000, respectfully, for the three and twelve months ended December 31, 2020, to $585,000 and $2.6 million, respectively, compared to $1.7 million and $2.7 million for the 2019 periods. The higher provision during the 2019 periods was primarily due to a commercial loan relationship that had become non-performing during the fourth quarter of 2019. The provision during 2020 remained elevated due to the economic uncertainty caused by the COVID-19 pandemic.

  • Basic and diluted earnings per share for the three and twelve months ended December 31, 2020 were $0.55 and $2.16, respectively. Basic earnings per share for the three and twelve months ended December 31, 2019 were $0.40 and $2.23, respectively, with diluted earnings per share of $0.39 and $2.20, respectively.

  • Return on average assets was 0.85% for the three months ended December 31, 2020, compared to 0.68% for the corresponding period of 2019. Return on average assets was 0.85% for the twelve months ended December 31, 2020, compared to 0.94% for the corresponding period of 2019.

  • Return on average equity was 9.55% for the three months ended December 31, 2020, compared to 7.22% for the corresponding period of 2019. Return on average equity was 9.66% for the twelve months ended December 31, 2020, compared to 10.54% for the corresponding period of 2019.

COVID-19 Activity

  • Approximately one third of employees working remotely.

  • As of December 31, 2020, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $8.7 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 December 2020.

  • Total paycheck protection program loans originated to be held on balance sheet at December 31, 2020 total $11.2 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 $3.6 million for the three months ended December 31, 2020 compared to $2.4 million for the same period of 2019. Core earnings were $13.9 million for the twelve months ended December 31, 2020, compared to $15.1 million for the same period of 2019. Core earnings per share for the three months ended December 31, 2020 were $0.51 basic and diluted, compared to $0.35 basic and $0.33 diluted core earnings per share for the same period of 2019. Core earnings per share for the twelve months ended December 31, 2020 were $1.98 basic and diluted, compared to $2.14 basic and $2.12 diluted for the same period of 2019. Core return on average assets and core return on average equity were 0.79% and 8.83% for the three months ended December 31, 2020, compared to 0.59% and 6.23% for the corresponding period of 2019. Core return on average assets and core return on average equity were 0.78% and 8.85% for the twelve months ended December 31, 2020 compared to 0.90% and 10.14% for the corresponding period of 2019. 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 twelve months ended December 31, 2020 was 2.81% and 2.94%, compared to 3.22% and 3.31% for the corresponding periods of 2019. The decrease in the net interest margin was driven by a decrease in the yield of the loan portfolio of 28 and 16 basis points ("bps"), while the investment portfolio yield declined 80 and 65 bps, respectively, for the three and twelve month periods 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 liabilities decreased over the three and twelve months ended December 31, 2020 and these rate decreases have partially offset the decline in earning asset yield.

Assets

Total assets increased $169.3 million to $1.8 billion at December 31, 2020 compared to December 31, 2019. 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 adverse and seeking safety in a bank deposit. Net loans decreased $13.1 million to $1.3 billion at December 31, 2020 compared to December 31, 2019, 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. The investment portfolio increased $15.5 million from December 31, 2019 to December 31, 2020 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 0.77% at December 31, 2020 from 0.92% at December 31, 2019 as non-performing loans have decreased to $10.3 million at December 31, 2020 from $12.4 million at December 31, 2019 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 $211,000 and $716,000 for the three and twelve months ended December 31, 2020 impacted the allowance for loan losses, which was 1.03% of total loans at December 31, 2020 compared to 0.88% at December 31, 2019.

Deposits

Deposits increased $170.4 million to $1.5 billion at December 31, 2020 compared to December 31, 2019. Noninterest-bearing deposits increased $114.6 million to $449.4 million at December 31, 2020 compared to December 31, 2019. Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk adverse and seeking safety in a bank deposit. Emphasis during 2020 has been 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.

Shareholders’ Equity

Shareholders’ equity increased $9.2 million to $164.1 million at December 31, 2020 compared to December 31, 2019. The change in accumulated other comprehensive loss from $2.8 million at December 31, 2019 to $882,000 at December 31, 2020 is a result of an increase in unrealized gains on available for sale securities (from an unrealized gain of $2.5 million at December 31, 2019 to an unrealized gain of $4.7 million at December 31, 2020). The amount of accumulated other comprehensive loss at December 31, 2020 was also impacted by the change in net excess of the projected benefit obligation over the fair value of the plan assets of the defined benefit pension plan, 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 $23.27 at December 31, 2020 compared to $22.01 at December 31, 2019, and an equity to asset ratio of 8.95% at December 31, 2020 compared to 9.31% at December 31, 2019. Dividends declared for the twelve months ended December 31, 2020 and 2019 were $1.28 per share and $1.26 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, and Union Counties, and Luzerne Bank, which operates nine 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, 2019.

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

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)

December 31,

(In Thousands, Except Share Data)

2020

2019

% Change

ASSETS:

Noninterest-bearing balances

$

31,821

$

24,725

28.70

%

Interest-bearing balances in other financial institutions

181,537

23,864

660.71

%

Total cash and cash equivalents

213,358

48,589

339.11

%

Investment debt securities, available for sale, at fair value

162,261

148,619

9.18

%

Investment equity securities, at fair value

1,288

1,261

2.14

%

Investment securities, trading

40

51

(21.57

)

%

Restricted investment in bank stock, at fair value

15,377

13,528

13.67

%

Loans held for sale

5,239

4,232

23.79

%

Loans

1,344,327

1,355,544

(0.83

)

%

Allowance for loan losses

(13,803

)

(11,894

)

16.05

%

Loans, net

1,330,524

1,343,650

(0.98

)

%

Premises and equipment, net

32,702

32,929

(0.69

)

%

Accrued interest receivable

8,394

5,246

60.01

%

Bank-owned life insurance

33,638

29,253

14.99

%

Goodwill

17,104

17,104

%

Intangibles

671

898

(25.28

)

%

Operating lease right of use asset

3,136

4,154

(24.51

)

%

Deferred tax asset

2,526

3,338

(24.33

)

%

Other assets

8,385

12,471

(32.76

)

%

TOTAL ASSETS

$

1,834,643

$

1,665,323

10.17

%

LIABILITIES:

Interest-bearing deposits

$

1,045,086

$

989,259

5.64

%

Noninterest-bearing deposits

449,357

334,746

34.24

%

Total deposits

1,494,443

1,324,005

12.87

%

Short-term borrowings

5,244

4,920

6.59

%

Long-term borrowings

153,475

161,920

(5.22

)

%

Accrued interest payable

1,112

1,671

(33.45

)

%

Operating lease liability

3,175

4,170

(23.86

)

%

Other liabilities

13,048

13,655

(4.45

)

%

TOTAL LIABILITIES

1,670,497

1,510,341

10.60

%

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; 7,532,576 and 7,520,740 shares issued; 7,052,351 and 7,040,515 shares outstanding

41,847

41,782

0.16

%

Additional paid-in capital

52,523

51,487

2.01

%

Retained earnings

82,769

76,583

8.08

%

Accumulated other comprehensive (loss) gain:

Net unrealized gain on available for sale securities

4,714

2,455

92.02

%

Defined benefit plan

(5,596

)

(5,232

)

(6.96

)

%

Treasury stock at cost, 480,225

(12,115

)

(12,115

)

%

TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY

164,142

154,960

5.93

%

Non-controlling interest

4

22

(81.82

)

%

TOTAL SHAREHOLDERS' EQUITY

164,146

154,982

5.91

%

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,834,643

$

1,665,323

10.17

%

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

Three Months Ended December 31,

Twelve Months Ended December 31,

(In Thousands, Except Per Share Data)

2020

2019

% Change

2020

2019

% Change

INTEREST AND DIVIDEND INCOME:

Loans including fees

$

13,814

$

14,789

(6.59

)

%

$

57,217

$

60,384

(5.24

)

%

Investment securities:

Taxable

820

1,098

(25.32

)

%

3,778

3,997

(5.48

)

%

Tax-exempt

166

140

18.57

%

650

660

(1.52

)

%

Dividend and other interest income

246

388

(36.60

)

%

993

1,733

(42.70

)

%

TOTAL INTEREST AND DIVIDEND INCOME

15,046

16,415

(8.34

)

%

62,638

66,774

(6.19

)

%

INTEREST EXPENSE:

Deposits

2,159

3,107

(30.51

)

%

10,565

11,443

(7.67

)

%

Short-term borrowings

6

3

100.00

%

43

793

(94.58

)

%

Long-term borrowings

914

984

(7.11

)

%

3,807

3,723

2.26

%

TOTAL INTEREST EXPENSE

3,079

4,094

(24.79

)

%

14,415

15,959

(9.67

)

%

NET INTEREST INCOME

11,967

12,321

(2.87

)

%

48,223

50,815

(5.10

)

%

PROVISION FOR LOAN LOSSES

585

1,700

(65.59

)

%

2,625

2,735

(4.02

)

%

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

11,382

10,621

7.17

%

45,598

48,080

(5.16

)

%

NON-INTEREST INCOME:

Service charges

441

635

(30.55

)

%

1,690

2,411

(29.90

)

%

Debt securities gains, available for sale

372

440

(15.45

)

%

1,592

640

148.75

%

Equity securities (losses) gains

(3

)

74

(104.05

)

%

27

89

(69.66

)

%

Securities gains (losses), trading

5

(25

)

120.00

%

(11

)

19

(157.89

)

%

Bank-owned life insurance

161

140

15.00

%

653

574

13.76

%

Gain on sale of loans

1,227

508

141.54

%

4,148

1,754

136.49

%

Insurance commissions

96

87

10.34

%

416

433

(3.93

)

%

Brokerage commissions

191

326

(41.41

)

%

970

1,358

(28.57

)

%

Debit card income

344

346

(0.58

)

%

1,280

1,378

(7.11

)

%

Other

241

376

(35.90

)

%

1,403

1,796

(21.88

)

%

TOTAL NON-INTEREST INCOME

3,075

2,907

5.78

%

12,168

10,452

16.42

%

NON-INTEREST EXPENSE:

Salaries and employee benefits

5,270

5,317

(0.88

)

%

21,632

21,829

(0.90

)

%

Occupancy

723

627

15.31

%

2,650

2,712

(2.29

)

%

Furniture and equipment

886

827

7.13

%

3,411

3,248

5.02

%

Software amortization

235

242

(2.89

)

%

978

871

12.28

%

Pennsylvania shares tax

341

285

19.65

%

1,289

1,148

12.28

%

Professional fees

474

640

(25.94

)

%

2,362

2,474

(4.53

)

%

Federal Deposit Insurance Corporation deposit insurance

289

97

197.94

%

939

578

62.46

%

Write down of assets held for sale

475

(100.00

)

%

475

(100.00

)

%

Loss on sale of premises and equipment

474

(100.00

)

%

474

(100.00

)

%

Marketing

91

192

(52.60

)

%

261

425

(38.59

)

%

Intangible amortization

53

62

(14.52

)

%

227

264

(14.02

)

%

Other

1,278

1,056

21.02

%

5,319

5,210

2.09

%

TOTAL NON-INTEREST EXPENSE

9,640

10,294

(6.35

)

%

39,068

39,708

(1.61

)

%

INCOME BEFORE INCOME TAX PROVISION

4,817

3,234

48.95

%

18,698

18,824

(0.67

)

%

INCOME TAX PROVISION

911

397

129.47

%

3,474

3,138

10.71

%

NET INCOME

$

3,906

$

2,837

37.68

%

$

15,224

$

15,686

(2.95

)

%

Earnings attributable to noncontrolling interest

5

4

25.00

%

18

14

28.57

%

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'

$

3,901

$

2,833

37.70

%

$

15,206

$

15,672

(2.97

)

%

EARNINGS PER SHARE - BASIC

$

0.55

$

0.40

37.50

%

$

2.16

$

2.23

(3.14

)

%

EARNINGS PER SHARE - DILUTED

$

0.55

$

0.39

41.03

%

$

2.16

$

2.20

(1.82

)

%

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC

7,050,389

7,039,968

0.15

%

7,044,542

7,038,714

0.08

%

WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED

7,050,389

7,338,468

(3.93

)

%

7,044,542

7,113,339

(0.97

)

%

DIVIDENDS DECLARED PER SHARE

$

0.32

$

0.32

%

$

1.28

$

1.26

1.59

%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

Three Months Ended

December 31, 2020

December 31, 2019

(Dollars in Thousands)

Average
Balance

Interest

Average
Rate

Average
Balance

Interest

Average
Rate

ASSETS:

Tax-exempt loans

$

42,882

$

303

2.81

%

$

55,727

$

446

3.21

%

All other loans

1,304,521

13,575

4.14

%

1,306,203

14,437

4.43

%

Total loans

1,347,403

13,878

4.10

%

1,361,930

14,883

4.38

%

Taxable securities

140,074

1,048

3.04

%

145,273

1,372

3.83

%

Tax-exempt securities

33,187

210

2.57

%

22,406

177

3.20

%

Total securities

173,261

1,258

2.95

%

167,679

1,549

3.75

%

Interest-bearing deposits

183,428

18

0.04

%

30,393

207

1.50

%

Total interest-earning assets

1,704,092

15,154

3.54

%

1,560,002

16,639

4.26

%

Other assets

123,352

108,235

TOTAL ASSETS

$

1,827,444

$

1,668,237

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Savings

$

206,563

47

0.09

%

$

172,573

69

0.16

%

Super Now deposits

271,600

433

0.63

%

216,535

445

0.82

%

Money market deposits

277,980

304

0.44

%

229,486

535

0.94

%

Time deposits

285,281

1,375

1.92

%

375,838

2,058

2.20

%

Total interest-bearing deposits

1,041,424

2,159

0.82

%

994,432

3,107

1.25

%

Short-term borrowings

11,068

6

0.29

%

4,781

3

0.25

%

Long-term borrowings

153,506

914

2.50

%

162,241

984

2.30

%

Total borrowings

164,574

920

2.35

%

167,022

987

2.24

%

Total interest-bearing liabilities

1,205,998

3,079

1.03

%

1,161,454

4,094

1.39

%

Demand deposits

439,841

329,873

Other liabilities

18,218

19,693

Shareholders’ equity

163,387

157,217

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,827,444

$

1,668,237

Interest rate spread

2.51

%

2.87

%

Net interest income/margin

$

12,075

2.81

%

$

12,545

3.22

%


Three Months Ended December 31,

2020

2019

Total interest income

$

15,046

$

16,415

Total interest expense

3,079

4,094

Net interest income

11,967

12,321

Tax equivalent adjustment

108

224

Net interest income (fully taxable equivalent)

$

12,075

$

12,545

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

Twelve Months Ended

December 31, 2020

December 31, 2019

(Dollars in Thousands)

Average
Balance

Interest

Average
Rate

Average
Balance

Interest

Average
Rate

ASSETS:

Tax-exempt loans

$

45,650

$

1,441

3.16

%

$

66,435

$

2,038

3.07

%

All other loans

1,304,209

56,079

4.30

%

1,309,806

58,774

4.49

%

Total loans

1,349,859

57,520

4.26

%

1,376,241

60,812

4.42

%

Taxable securities

142,714

4,630

3.30

%

134,935

5,306

3.99

%

Tax-exempt securities

28,973

823

2.89

%

25,702

835

3.29

%

Total securities

171,687

5,453

3.23

%

160,637

6,141

3.88

%

Interest-bearing deposits

140,022

141

0.10

%

21,161

310

2.00

%

Total interest-earning assets

1,661,568

63,114

3.80

%

1,558,039

67,263

4.33

%

Other assets

118,536

111,839

TOTAL ASSETS

$

1,780,104

$

1,669,878

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Savings

$

193,568

256

0.13

%

$

169,832

216

0.13

%

Super Now deposits

254,177

1,755

0.69

%

231,816

1,758

0.76

%

Money market deposits

245,633

1,529

0.62

%

239,317

2,184

0.91

%

Time deposits

338,895

7,025

2.07

%

345,635

7,285

2.11

%

Total interest-bearing deposits

1,032,273

10,565

1.02

%

986,600

11,443

1.16

%

Short-term borrowings

12,660

43

0.34

%

34,897

793

2.27

%

Long-term borrowings

162,636

3,807

2.34

%

155,841

3,723

2.25

%

Total borrowings

175,296

3,850

2.20

%

190,738

4,516

2.25

%

Total interest-bearing liabilities

1,207,569

14,415

1.19

%

1,177,338

15,959

1.34

%

Demand deposits

394,210

321,443

Other liabilities

20,858

22,379

Shareholders’ equity

157,467

148,718

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,780,104

$

1,669,878

Interest rate spread

2.61

%

2.99

%

Net interest income/margin

$

48,699

2.94

%

$

51,304

3.31

%


Twelve Months Ended December 31,

2020

2019

Total interest income

$

62,638

$

66,774

Total interest expense

14,415

15,959

Net interest income

48,223

50,815

Tax equivalent adjustment

476

489

Net interest income (fully taxable equivalent)

$

48,699

$

51,304


(Dollars in Thousands, Except Per Share Data)

Quarter Ended

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Operating Data

Net income

$

3,901

$

4,472

$

3,760

$

3,073

$

2,833

Net interest income

11,967

11,845

12,250

12,161

12,321

Provision for loan losses

585

645

645

750

1,700

Net security gains

374

1,011

196

27

489

Non-interest income, excluding net security gains

2,701

3,024

2,423

2,409

2,418

Non-interest expense

9,640

9,707

9,611

10,110

10,294

Performance Statistics

Net interest margin

2.81

%

2.76

%

3.01

%

3.19

%

3.22

%

Annualized return on average assets

0.85

%

0.97

%

0.85

%

0.74

%

0.68

%

Annualized return on average equity

9.55

%

11.05

%

9.60

%

7.83

%

7.22

%

Annualized net loan charge-offs to average loans

0.06

%

0.06

%

0.05

%

0.04

%

1.19

%

Net charge-offs

211

193

168

144

4,055

Efficiency ratio

65.36

%

64.89

%

65.10

%

68.96

%

69.42

%

Per Share Data

Basic earnings per share

$

0.55

$

0.63

$

0.53

$

0.44

$

0.40

Diluted earnings per share

0.55

0.63

0.53

0.43

0.39

Dividend declared per share

0.32

0.32

0.32

0.32

0.32

Book value

23.27

23.05

22.66

22.23

22.01

Common stock price:

High

27.30

22.83

27.75

35.36

35.58

Low

19.61

19.61

20.01

19.05

29.68

Close

26.01

19.85

22.71

24.30

35.58

Weighted average common shares:

Basic

7,050

7,045

7,042

7,041

7,040

Fully Diluted

7,050

7,045

7,042

7,103

7,338

End-of-period common shares:

Issued

7,533

7,528

7,523

7,521

7,521

Treasury

480

480

480

480

480


(Dollars in Thousands, Except Per Share Data)

Quarter Ended

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Financial Condition Data:

General

Total assets

$

1,834,643

$

1,840,779

$

1,838,364

$

1,688,508

$

1,665,323

Loans, net

1,330,524

1,335,711

1,336,370

1,336,900

1,343,650

Goodwill

17,104

17,104

17,104

17,104

17,104

Intangibles

671

724

777

836

898

Total deposits

1,494,443

1,491,810

1,474,305

1,326,734

1,324,005

Noninterest-bearing

449,357

434,248

418,324

332,759

334,746

Savings

209,924

202,781

195,964

183,929

176,732

NOW

287,775

268,463

268,348

229,919

218,605

Money Market

283,742

274,480

247,753

204,832

216,038

Time Deposits

263,645

311,838

343,915

375,295

377,884

Total interest-bearing deposits

1,045,086

1,057,562

1,055,980

993,975

989,259

Core deposits*

1,230,798

1,179,972

1,130,389

951,439

946,121

Shareholders’ equity

164,142

162,422

159,578

156,562

154,960

Asset Quality

Non-performing loans

$

10,334

$

10,553

$

11,097

$

11,300

$

12,421

Non-performing loans to total assets

0.56

%

0.57

%

0.60

%

0.67

%

0.75

%

Allowance for loan losses

13,803

13,429

12,977

12,500

11,894

Allowance for loan losses to total loans

1.03

%

1.00

%

0.96

%

0.93

%

0.88

%

Allowance for loan losses to non-performing loans

133.57

%

127.25

%

116.94

%

110.62

%

95.76

%

Non-performing loans to total loans

0.77

%

0.78

%

0.82

%

0.84

%

0.92

%

Capitalization

Shareholders’ equity to total assets

8.95

%

8.82

%

8.68

%

9.27

%

9.31

%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

Three Months Ended December 31,

Twelve Months Ended December 31,

(Dollars in Thousands, Except Per Share Data)

2020

2019

2020

2019

GAAP net income

$

3,901

$

2,833

$

15,206

$

15,672

Less: net securities gains, net of tax

295

386

1,270

591

Non-GAAP core earnings

$

3,606

$

2,447

$

13,936

$

15,081

Three Months Ended December 31,

Twelve Months Ended December 31,

2020

2019

2020

2019

Return on average assets (ROA)

0.85

%

0.68

%

0.85

%

0.94

%

Less: net securities gains, net of tax

0.06

%

0.09

%

0.07

%

0.04

%

Non-GAAP core ROA

0.79

%

0.59

%

0.78

%

0.90

%

Three Months Ended December 31,

Twelve Months Ended December 31,

2020

2019

2020

2019

Return on average equity (ROE)

9.55

%

7.22

%

9.66

%

10.54

%

Less: net securities gains, net of tax

0.72

%

0.99

%

0.81

%

0.40

%

Non-GAAP core ROE

8.83

%

6.23

%

8.85

%

10.14

%

Three Months Ended December 31,

Twelve Months Ended December 31,

2020

2019

2020

2019

Basic earnings per share (EPS)

$

0.55

$

0.40

$

2.16

$

2.23

Less: net securities gains, net of tax

0.04

0.05

0.18

0.09

Non-GAAP basic core EPS

$

0.51

$

0.35

$

1.98

$

2.14

Three Months Ended December 31,

Twelve Months Ended December 31,

2020

2019

2020

2019

Diluted EPS

$

0.55

$

0.39

$

2.16

$

2.20

Less: net securities gains, net of tax

0.04

0.06

0.18

0.08

Non-GAAP diluted core EPS

$

0.51

$

0.33

$

1.98

$

2.12

COVID-19 Loan Deferrals as of December 31, 2020

(In Thousands)

Amount

Commercial, financial, and agricultural

$

2,497

Real estate mortgage:

Residential

1,626

Commercial

4,172

Consumer automobile loans

384

Other consumer installment loans

36

Total loan deferrals

$

8,715