CB Financial Services, Inc. Announces Third Quarter and Year-to-Date 2022 Financial Results and Declares Quarterly Cash Dividend

WASHINGTON, Pa.--()--CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”) and Exchange Underwriters, Inc. (“EU”), a wholly-owned insurance subsidiary of the Bank, today announced its third quarter and year-to-date 2022 financial results.

 

 

Three Months Ended

 

Nine Months Ended

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

(Dollars in thousands, except per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP)

 

$

3,929

 

 

$

118

 

$

3,047

 

$

6,965

 

 

$

1,983

 

 

$

7,094

 

 

$

4,605

Non-Recurring Items

 

 

(310

)

 

 

157

 

 

12

 

 

(4,122

)

 

 

(17

)

 

 

(141

)

 

 

3,070

Adjusted Net Income (Non-GAAP) (1)

 

$

3,619

 

 

$

275

 

$

3,059

 

$

2,843

 

 

$

1,966

 

 

$

6,953

 

 

$

7,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Common Share - Diluted (GAAP)

 

$

0.77

 

 

$

0.02

 

$

0.58

 

$

1.31

 

 

$

0.37

 

 

$

1.37

 

 

$

0.85

Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)

 

$

0.71

 

 

$

0.05

 

$

0.59

 

$

0.53

 

 

$

0.36

 

 

$

1.35

 

 

$

1.42

(1)

 

Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted in this Press Release.

2022 Third Quarter Financial Highlights
(Comparisons to three months ended September 30, 2021 unless otherwise noted)

  • Net income was $3.9 million, compared to net income of $2.0 million. Current period results were driven by net Interest Margin expansion coupled with a reduction of noninterest expense of $946,000 for the three months ended September 30, 2022 compared to the three months ended September 30, 2021.
    • Adjusted net income (Non-GAAP) was $3.6 million, compared to $2.0 million.
  • Earnings per diluted common share (EPS) increased to $0.77 from $0.37.
    • Adjusted earnings per common share - diluted (Non-GAAP) was $0.71, compared to $0.36.
  • Return on average assets (annualized) of 1.12%, compared to average assets (annualized) of 0.54%.
    • Adjusted return on average assets (annualized) (Non-GAAP) of 1.03%, compared to 0.53%.
  • Return on average equity (annualized) of 13.60%, compared to 5.93% (annualized).
    • Adjusted return on average equity (annualized) (Non-GAAP) of 12.53%, compared to 5.88%.
  • Net interest margin (NIM) improved to 3.29% from 2.88%.
  • Net interest and dividend income was $11.0 million, compared to $10.0 million.
  • Noninterest income increased to $2.7 million, compared to $2.2 million. The most significant changes in noninterest income were a $439,000 gain recognized as a result of the sale of assets of two former branch locations that were part of our consolidation measures and an increase of $174,000 in insurance commissions. The increase in insurance commissions was primarily driven by contingency income which resulted from the higher than lock-in amounts received and core business including commercial and personal insurance lines.

(Amounts at September 30, 2022; comparisons to December 31, 2021, unless otherwise noted)

  • Total loans, including Payroll Protection Program (“PPP”) loans, were $1.04 billion, an increase of $22.1 million from $1.02 billion.
    • Total loans held for investment, excluding PPP loans, increased $45.9 million, or 6.1% annualized, to $1.04 billion compared to $996.3 million, and included increases of $28.5 million, or 31.1% annualized, in consumer loans, and $40.4 million, or 13.8% annualized, growth in commercial real estate loans, partially offset by decreases of $35.5 million in construction real estate and $26.8 million in commercial and industrial loans. Compared to September 30, 2021, loans held for investment, excluding PPP loans, increased $73.3 million, or 7.6%, primarily from increases of $52.9 million in commercial real estate loans and $38.5 million in consumer loans as noted above, partially offset by decreases of $28.6 million in construction real estate loans and $40.2 million in commercial and industrial loans.
  • Nonperforming loans to total loans was 0.56%, a decrease of 15 basis points (“bps”), compared to 0.71%.
  • Total deposits were $1.28 billion, an increase of $49.2 million, compared to $1.23 billion.
  • Total assets remained level at $1.43 billion.
  • Book value per share was $20.94, compared to $22.18 as of June 30, 2022 and $25.31 as of December 31, 2021.
    • Tangible book value per share (Non-GAAP) decreased to $18.25, compared to $19.43 as of June 30, 2022 and $22.45 as of December 31, 2021, reflecting impact to Accumulated Other Comprehensive Income from unrealized losses on securities portfolios.

Management Commentary
President and CEO John H. Montgomery stated, “We delivered solid third quarter results, driven by continued growth in our loan portfolio coupled with expanded margins and expense control. Rising interest rates underpinned a 17 basis point expansion of our net interest margin compared with the second quarter and a 41 basis point improvement from the year-ago quarter. Noninterest expense continued to run at levels well below last year’s amounts due to the optimization efforts we undertook during 2021. As a result, our Adjusted Efficiency Ratio during the third quarter was 63.0%, compared with 77.3% a year ago. While the Federal Reserve has made it clear they will accept a recession in order to control inflation, we continue to believe the southwestern Pennsylvania market in which we operate possesses a variety of demographic attributes that have muted economic volatility in the past. In addition, we have a veteran credit team with successful experience underwriting through the last recession.”

Mr. Montgomery continued, “We remain focused on growing our business and have continued to make targeted additions to our team to do so. During the third quarter we added a business banking team and are also in the process of adding to our commercial banking team. We are very excited to have these new team members come aboard and look forward to their contributions. Continuing our commitment to CB shareholders, we repurchased 30,271 shares during the third quarter under the current $10.0 million share repurchase program announced last quarter, in addition to payment of our regular quarterly dividend of $0.24 per share. We remain well-capitalized with the ability to support growth along with these shareholder-friendly actions.”

Dividend Information
The Company’s Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about November 30, 2022, to stockholders of record as of the close of business on November 18, 2022.

Stock Repurchase Program
On April 21, 2022, CB announced a program to repurchase up to $10.0 million of the Company’s outstanding shares of common stock. Based on the Company’s closing stock price on October 19, 2022, the repurchase program, if fully completed, would encompass 461,463 shares, or approximately 9.1% of the shares currently outstanding.

2022 Third Quarter Financial Review

Net Interest and Dividend Income
Net interest and dividend income increased $1.0 million, or 10.0%, to $11.0 million for the three months ended September 30, 2022 compared to $10.0 million for the three months ended September 30, 2021.

  • Net interest margin (GAAP) increased to 3.29% for the three months ended September 30, 2022 compared to 2.88% for the three months ended September 30, 2021. Fully Tax Equivalent (“FTE”) net interest margin (Non-GAAP) increased 41 bps to 3.30% for the three months ended September 30, 2022 compared to 2.89% for the three months ended September 30, 2021.
  • Interest and dividend income increased $1.5 million, or 13.9%, to $12.3 million for the three months ended September 30, 2022 compared to $10.8 million for the three months ended September 30, 2021.
    • Interest income on loans increased $1.1 million, or 11.3%, to $10.8 million for the three months ended September 30, 2022 compared to $9.7 million for the three months ended September 30, 2021. The average balance of loans increased $19.9 million to $1.02 billion from $1.00 billion and the average yield increased 35 bps to 4.20% compared to 3.85%. Interest and fee income on PPP loans was $123,000 for the three months ended September 30, 2022 and contributed 4 bps to loan yield, compared to $484,000 for the three months ended September 30, 2021, which contributed 4 bps to loan yield. The impact of the accretion of the credit mark on acquired loan portfolios was $47,000 for the three months ended September 30, 2022 compared to $94,000 for the three months ended September 30, 2021, or 2 bps in the current period compared to 4 bps in the prior period.
    • Interest income on taxable investment securities increased $142,000, or 16.8%, to $985,000 for the three months ended September 30, 2022 compared to $843,000 for the three months ended September 30, 2021 driven by a $24.3 million increase in average balance partially coupled with a 6 bps increase in average yield.
  • Interest expense increased $496,000, or 63.9%, to $1.3 million for the three months ended September 30, 2022 compared to $776,000 for the three months ended September 30, 2021.
    • Interest expense on deposits increased $364,000, or 50.9%, to $1.1 million for the three months ended September 30, 2022 compared to $715,000 for the three months ended September 30, 2021. While average interest-earning deposit balances decreased $51.7 million, or 5.8%, to $842.4 million as of September 30, 2022 compared to $894.0 million as of September 30, 2021 , rising interest rates led to the repricing of higher-cost demand and money market deposits and resulted in a 19 bps, or 59.9%, increase in average cost compared to the three months ended September 30, 2021. In addition, the average balance of time deposits and the related average cost decreased $45.2 million and 11 bps, respectively. These decreases are partially offset by an increase in average other borrowings of $11.6 million or 193.7% to $17.6 million as of September 30, 2022 compared to $6.0 million as of September 30, 2021, which was driven by an increase in subordinated debt balance.

Provision for Loan Losses
There was no provision for loan losses for the three months ended September 30, 2022 or for the three months ended September 30, 2021.

Noninterest income
Noninterest income increased $541,000, or 24.6%, to $2.7 million for the three months ended September 30, 2022, compared to $2.2 million for the three months ended September 30, 2021. The increase was largely due to a gain of $439,000 on the disposal of fixed assets during the three months ended September 30, 2022 due to the sale of the land and buildings of the former Pioneer and Bellaire bank branches. During the quarter, the Bank also recorded a $174,000 increase in insurance commissions. The increase in insurance commissions was primarily driven by contingency income which resulted from the higher than lock-in amounts received and core business including commercial and personal insurance lines. In addition, net gain on sale of loans decreased $49,000 as there were no loans sold during the three months ended September 30, 2022.

Noninterest Expense
Noninterest expense decreased $946,000, or 9.7%, to $8.8 million for the three months ended September 30, 2022 compared to $9.8 million for the three months ended September 30, 2021. Salaries and benefits decreased $48,000 and contracted services decreased $1.2 million to $288,000 for the three months ended September 30, 2022 compared to $1.4 million for the three months ended September 30, 2021. This was a result of branch optimization initiatives completed in the prior year. These decreases were partially offset by an increase in occupancy expenses of $153,000.

Statement of Financial Condition Review

Assets
Total assets increased $441,000, or 0.03%, to $1.43 billion at both September 30, 2022, and December 31, 2021.

  • Cash and due from banks increased $3.1 million, or 2.6%, to $122.8 million at September 30, 2022, compared to $119.7 million at December 31, 2021. The change is primarily due to an increase in deposits as further described below in the Liabilities section.
  • Securities decreased $31.1 million, or 13.8%, to $193.8 million at September 30, 2022, compared to $225.0 million at December 31, 2021. Current period activity included $26.8 million of purchases, and $24.9 million of pay downs. The purchases were made to earn a higher yield on excess cash. In addition, there was a $32.8 million decrease in the market value of the debt securities portfolio, primarily due to the increase in market interest rates, and a $252,000 decline in market value in the equity securities portfolio, which is primarily comprised of bank stocks.

Payroll Protection Program Update

  • PPP loans decreased $23.8 million to $768,000 at September 30, 2022 compared to $24.5 million at December 31, 2021.
  • $27,000 of net PPP loan origination fees were unearned at September 30, 2022 compared to $678,000 at December 31, 2021. $117,000 of net PPP loan origination fees were earned in the three months ended September 30, 2022 compared to $130,000 for the three months ended June 30, 2022.

Loans and Credit Quality

  • Total loans held for investment increased $22.1 million, or 2.17%, to $1.04 billion at September 30, 2022 compared to $1.02 billion at December 31, 2021. Excluding the net decline of $23.8 million in PPP loans in the current period, loans increased $45.9 million.
  • The allowance for loan losses was $12.9 million at September 30, 2022 and $11.6 million at December 31, 2021. As a result, the allowance for loan losses to total loans was 1.23% at September 30, 2022 compared to 1.13% at December 31, 2021. The allowance for loan losses to total loans, excluding PPP loans, was 1.23% at September 30, 2022 compared to 1.16% at December 31, 2021. The change in the allowance for loan losses was primarily due to adjustments to historical loss factors and changes in qualitative factors in particular economic and industry conditions since December 31, 2021.
  • Net recoveries for the three months ended September 30, 2022 were $21,000, or 0.01% of average loans on an annualized basis. Net recoveries for the three months ended September 30, 2021 were $37,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the nine months ended September 30, 2022 were $2.5 million, or 0.33% of average loans on an annualized basis. Net recoveries for the nine months ended September 30, 2021 were $10,000, and had an immaterial effect on ratios for the period.
  • Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $5.9 million at September 30, 2022 compared to $7.3 million at December 31, 2021. Current nonperforming loans to total loans ratio was 0.56% compared to 0.71% at December 31, 2021.

Other

  • Intangible assets decreased $1.3 million, or 24.6%, to $4.0 million at September 30, 2022 compared to $5.3 million at December 31, 2021 due to amortization expense recognized during the period.
  • Accrued interest receivable and other assets increased $8.8 million, or 68.4%; to $21.7 million at September 30, 2022, compared to $12.9 million at December 31, 2021. This change was primarily driven by deferred taxes as a result of the increase in market interest rate conditions and the corresponding decrease in the market value of the mostly fixed rate securities portfolio.

Liabilities
Total liabilities increased $26.9 million, or 2.1%, to $1.32 billion at September 30, 2022 compared to $1.29 billion at December 31, 2021.

Deposits

  • Total deposits increased $49.2 million to $1.28 billion as of September 30, 2022 compared to $1.23 billion at December 31, 2021, an annualized increase of 5.3%. Interest-bearing and non interest-bearing demand deposits increased $26.2 million and $15.8 million, respectively, partially offset by a decrease in time deposits of $15.8 million. Average total deposits increased $15.4 million, primarily in both interest-bearing and non interest -bearing demand deposits for the three months ended September 30, 2022 compared to the three months ended June 30, 2022,

Borrowed Funds

  • Short-term borrowings decreased $21.2 million, or 53.9%, to $18.1 million at September 30, 2022, compared to $39.3 million at December 31, 2021. At September 30, 2022 and December 31, 2021, short-term borrowings were comprised entirely of securities sold under agreements to repurchase, which are related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank’s investment portfolio under an agreement to repurchase. A portion of this decrease is due to accounts that were being transitioned into other deposit products and account for most of the interest-bearing demand deposit increase.

Stockholders’ Equity
Stockholders’ equity decreased $26.4 million, or 19.8%, to $106.7 million at September 30, 2022, compared to $133.1 million at December 31, 2021. Since December 31, 2021, the Company has paid $3.7 million in dividends. On February 15, 2022, the Company completed its stock repurchase program that was implemented on June 10, 2021. On April 21, 2022, a new $10 million repurchase program was authorized, with the Company repurchasing 57,710 shares at an average price of $22.51 per share since the inception of the plan. In total, the Company has repurchased $4.7 million since December 31, 2021. In addition, accumulated other comprehensive loss increased $25.7 million primarily due to the effect of rising market interest rates on the Bank’s debt securities. This was partially offset by $7.1 million of net income.

Book value per share
Book value per common share was $20.94 at September 30, 2022 compared to $25.31 at December 31, 2021, a decrease of $4.37.

Tangible book value per common share (Non-GAAP) was $18.25 at September 30, 2022, compared to $22.45 at December 31, 2021, a decrease of $4.20.

Refer to “Explanation of Use of Non-GAAP Financial Measures” at the end of this Press Release.

About CB Financial Services, Inc.
CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary.

For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.

Statement About Forward-Looking Statements
Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, the scope and duration of economic contraction as a result of the COVID-19 pandemic and its effects on the Company’s business and that of the Company’s customers, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

CB FINANCIAL SERVICES, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Condition Data

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

Assets

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

 

$

122,801

 

 

$

81,121

 

 

$

123,588

 

 

$

119,674

 

 

$

173,523

 

Securities

 

 

193,846

 

 

 

213,505

 

 

 

231,097

 

 

 

224,974

 

 

 

221,351

 

Loans Held for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,407

 

Loans

 

 

 

 

 

 

 

 

 

 

Real Estate:

 

 

 

 

 

 

 

 

 

 

Residential

 

 

328,248

 

 

 

325,138

 

 

 

317,254

 

 

 

320,798

 

 

 

317,373

 

Commercial

 

 

432,516

 

 

 

426,105

 

 

 

427,227

 

 

 

392,124

 

 

 

379,621

 

Construction

 

 

49,502

 

 

 

41,277

 

 

 

54,227

 

 

 

85,028

 

 

 

78,075

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

61,428

 

 

 

62,054

 

 

 

59,601

 

 

 

64,487

 

 

 

69,657

 

PPP

 

 

768

 

 

 

3,853

 

 

 

8,242

 

 

 

24,523

 

 

 

32,703

 

Consumer

 

 

150,615

 

 

 

148,921

 

 

 

143,422

 

 

 

122,152

 

 

 

112,087

 

Other

 

 

19,865

 

 

 

20,621

 

 

 

10,669

 

 

 

11,684

 

 

 

12,083

 

Total Loans

 

 

1,042,942

 

 

 

1,027,969

 

 

 

1,020,642

 

 

 

1,020,796

 

 

 

1,001,599

 

Allowance for Loan Losses

 

 

(12,854

)

 

 

(12,833

)

 

 

(11,595

)

 

 

(11,582

)

 

 

(11,581

)

Loans, Net

 

 

1,030,088

 

 

 

1,015,136

 

 

 

1,009,047

 

 

 

1,009,214

 

 

 

990,018

 

Premises and Equipment Held for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

795

 

Premises and Equipment, Net

 

 

18,064

 

 

 

18,196

 

 

 

18,349

 

 

 

18,399

 

 

 

18,502

 

Bank-Owned Life Insurance

 

 

25,750

 

 

 

25,610

 

 

 

25,468

 

 

 

25,332

 

 

 

25,190

 

Goodwill

 

 

9,732

 

 

 

9,732

 

 

 

9,732

 

 

 

9,732

 

 

 

9,732

 

Intangible Assets, Net

 

 

3,959

 

 

 

4,404

 

 

 

4,850

 

 

 

5,295

 

 

 

5,740

 

Accrued Interest and Other Assets

 

 

21,680

 

 

 

18,757

 

 

 

16,539

 

 

 

12,859

 

 

 

12,560

 

Total Assets

 

$

1,425,920

 

 

$

1,386,461

 

 

$

1,438,670

 

 

$

1,425,479

 

 

$

1,474,818

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Deposits Held for Sale

 

$

 

 

$

 

 

$

 

 

$

 

 

$

102,647

 

Deposits

 

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Demand Deposits

 

 

407,107

 

 

 

389,127

 

 

 

400,105

 

 

 

385,775

 

 

 

373,320

 

Interest Bearing Demand Accounts

 

 

298,755

 

 

 

265,347

 

 

 

280,455

 

 

 

272,518

 

 

 

244,004

 

Money Market Accounts

 

 

198,715

 

 

 

185,308

 

 

 

192,929

 

 

 

192,125

 

 

 

190,426

 

Savings Accounts

 

 

250,378

 

 

 

250,226

 

 

 

247,589

 

 

 

239,482

 

 

 

232,679

 

Time Deposits

 

 

120,879

 

 

 

125,182

 

 

 

129,235

 

 

 

136,713

 

 

 

144,727

 

Total Deposits

 

 

1,275,834

 

 

 

1,215,190

 

 

 

1,250,313

 

 

 

1,226,613

 

 

 

1,185,156

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

 

18,108

 

 

 

32,178

 

 

 

39,219

 

 

 

39,266

 

 

 

42,623

 

Other Borrowings

 

 

17,627

 

 

 

17,618

 

 

 

17,607

 

 

 

17,601

 

 

 

6,000

 

Accrued Interest Payable and Other Liabilities

 

 

7,645

 

 

 

7,703

 

 

 

9,375

 

 

 

8,875

 

 

 

7,405

 

Total Liabilities

 

 

1,319,214

 

 

 

1,272,689

 

 

 

1,316,514

 

 

 

1,292,355

 

 

 

1,343,831

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

$

106,706

 

 

$

113,772

 

 

$

122,156

 

 

$

133,124

 

 

$

130,987

 

Total Liabilities and Stockholders’ Equity

 

$

1,425,920

 

 

$

1,386,461

 

 

$

1,438,670

 

 

$

1,425,479

 

 

$

1,474,818

 

 

 

Three Months Ended

 

Nine Months Ended

Selected Operating Data

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

Interest and Dividend Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Including Fees

 

$

10,815

 

 

$

9,733

 

 

$

9,551

 

 

$

9,904

 

 

$

9,718

 

 

$

30,098

 

 

$

29,800

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

985

 

 

 

988

 

 

 

905

 

 

 

866

 

 

 

843

 

 

 

2,878

 

 

 

2,124

 

Tax-Exempt

 

 

49

 

 

 

57

 

 

 

66

 

 

 

66

 

 

 

71

 

 

 

172

 

 

 

223

 

Dividends

 

 

21

 

 

 

20

 

 

 

22

 

 

 

21

 

 

 

19

 

 

 

64

 

 

 

63

 

Other Interest and Dividend Income

 

 

417

 

 

 

160

 

 

 

72

 

 

 

106

 

 

 

135

 

 

 

649

 

 

 

384

 

Total Interest and Dividend Income

 

 

12,287

 

 

 

10,958

 

 

 

10,616

 

 

 

10,963

 

 

 

10,786

 

 

 

33,861

 

 

 

32,594

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,079

 

 

 

604

 

 

 

530

 

 

 

636

 

 

 

715

 

 

 

2,214

 

 

 

2,489

 

Short-Term Borrowings

 

 

19

 

 

 

18

 

 

 

19

 

 

 

26

 

 

 

25

 

 

 

56

 

 

 

72

 

Other Borrowings

 

 

174

 

 

 

173

 

 

 

174

 

 

 

70

 

 

 

36

 

 

 

522

 

 

 

112

 

Total Interest Expense

 

 

1,272

 

 

 

795

 

 

 

723

 

 

 

732

 

 

 

776

 

 

 

2,792

 

 

 

2,673

 

Net Interest and Dividend Income

 

 

11,015

 

 

 

10,163

 

 

 

9,893

 

 

 

10,231

 

 

 

10,010

 

 

 

31,069

 

 

 

29,921

 

Provision (Recovery) for Loan Losses

 

 

 

 

 

3,784

 

 

 

 

 

 

75

 

 

 

 

 

 

3,784

 

 

 

(1,200

)

Net Interest and Dividend Income After Provision (Recovery) for Loan Losses

 

 

11,015

 

 

 

6,379

 

 

 

9,893

 

 

 

10,156

 

 

 

10,010

 

 

 

27,285

 

 

 

31,121

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Fees

 

 

544

 

 

 

559

 

 

 

526

 

 

 

569

 

 

 

602

 

 

 

1,629

 

 

 

1,762

 

Insurance Commissions

 

 

1,368

 

 

 

1,369

 

 

 

1,798

 

 

 

1,618

 

 

 

1,194

 

 

 

4,535

 

 

 

3,998

 

Other Commissions

 

 

244

 

 

 

179

 

 

 

89

 

 

 

90

 

 

 

93

 

 

 

512

 

 

 

431

 

Net Gain on Sales of Loans

 

 

 

 

 

 

 

 

 

 

 

977

 

 

 

49

 

 

 

 

 

 

166

 

Net (Loss) Gain on Securities

 

 

(46

)

 

 

(199

)

 

 

(7

)

 

 

44

 

 

 

24

 

 

 

(252

)

 

 

482

 

Net Gain on Purchased Tax Credits

 

 

14

 

 

 

14

 

 

 

14

 

 

 

17

 

 

 

18

 

 

 

43

 

 

 

53

 

Gain on Sale of Branches

 

 

 

 

 

 

 

 

 

 

 

5,203

 

 

 

 

 

 

 

 

 

 

Net Gain (Loss) on Disposal of Fixed Assets

 

 

439

 

 

 

 

 

 

(8

)

 

 

 

 

 

 

 

 

431

 

 

 

(3

)

Income from Bank-Owned Life Insurance

 

 

140

 

 

 

142

 

 

 

136

 

 

 

142

 

 

 

138

 

 

 

418

 

 

 

411

 

Other Income

 

 

36

 

 

 

41

 

 

 

65

 

 

 

29

 

 

 

80

 

 

 

143

 

 

 

291

 

Total Noninterest Income

 

 

2,739

 

 

 

2,105

 

 

 

2,613

 

 

 

8,689

 

 

 

2,198

 

 

 

7,459

 

 

 

7,591

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

 

4,739

 

 

 

4,539

 

 

 

4,565

 

 

 

5,181

 

 

 

4,787

 

 

 

13,843

 

 

 

14,757

 

Occupancy

 

 

768

 

 

 

776

 

 

 

686

 

 

 

619

 

 

 

615

 

 

 

2,230

 

 

 

2,349

 

Equipment

 

 

170

 

 

 

182

 

 

 

210

 

 

 

252

 

 

 

205

 

 

 

561

 

 

 

782

 

Data Processing

 

 

540

 

 

 

446

 

 

 

485

 

 

 

488

 

 

 

541

 

 

 

1,471

 

 

 

1,666

 

FDIC Assessment

 

 

147

 

 

 

128

 

 

 

209

 

 

 

222

 

 

 

293

 

 

 

484

 

 

 

792

 

PA Shares Tax

 

 

240

 

 

 

240

 

 

 

240

 

 

 

173

 

 

 

224

 

 

 

721

 

 

 

714

 

Contracted Services

 

 

288

 

 

 

348

 

 

 

587

 

 

 

1,133

 

 

 

1,441

 

 

 

1,223

 

 

 

2,878

 

Legal and Professional Fees

 

 

334

 

 

 

389

 

 

 

152

 

 

 

206

 

 

 

180

 

 

 

876

 

 

 

788

 

Advertising

 

 

131

 

 

 

115

 

 

 

116

 

 

 

191

 

 

 

225

 

 

 

362

 

 

 

558

 

Other Real Estate Owned (Income)

 

 

(38

)

 

 

(37

)

 

 

(38

)

 

 

(30

)

 

 

(89

)

 

 

(113

)

 

 

(153

)

Amortization of Intangible Assets

 

 

445

 

 

 

446

 

 

 

445

 

 

 

445

 

 

 

446

 

 

 

1,336

 

 

 

1,481

 

Intangible Assets and Goodwill Impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,178

 

Writedown of Fixed Assets

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

2

 

 

 

 

 

 

2,270

 

Other

 

 

1,063

 

 

 

838

 

 

 

999

 

 

 

1,069

 

 

 

903

 

 

 

2,899

 

 

 

2,830

 

Total Noninterest Expense

 

 

8,827

 

 

 

8,410

 

 

 

8,656

 

 

 

9,972

 

 

 

9,773

 

 

 

25,893

 

 

 

32,890

 

Income Before Income Tax Expense (Benefit)

 

 

4,927

 

 

 

74

 

 

 

3,850

 

 

 

8,873

 

 

 

2,435

 

 

 

8,851

 

 

 

5,822

 

Income Tax Expense (Benefit)

 

 

998

 

 

 

(44

)

 

 

803

 

 

 

1,908

 

 

 

452

 

 

 

1,757

 

 

 

1,217

 

Net Income

 

$

3,929

 

 

$

118

 

 

$

3,047

 

 

$

6,965

 

 

$

1,983

 

 

$

7,094

 

 

$

4,605

 

 

 

Three Months Ended

 

Nine Months Ended

Per Common Share Data

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

Dividends Per Common Share

 

$

0.24

 

$

0.24

 

$

0.24

 

$

0.24

 

$

0.24

 

$

0.72

 

$

0.72

Earnings Per Common Share - Basic

 

 

0.77

 

 

0.02

 

 

0.59

 

 

1.32

 

 

0.37

 

 

1.38

 

 

0.85

Earnings Per Common Share - Diluted

 

 

0.77

 

 

0.02

 

 

0.58

 

 

1.31

 

 

0.37

 

 

1.37

 

 

0.85

Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1)

 

 

0.71

 

 

0.05

 

 

0.59

 

 

0.53

 

 

0.36

 

 

1.35

 

 

1.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding - Basic

 

 

5,106,861

 

 

5,147,846

 

 

5,198,194

 

 

5,291,795

 

 

5,373,032

 

 

5,150,632

 

 

5,412,989

Weighted Average Common Shares Outstanding - Diluted

 

 

5,118,627

 

 

5,156,975

 

 

5,220,887

 

 

5,314,537

 

 

5,390,128

 

 

5,165,376

 

 

5,420,792

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

Common Shares Outstanding

 

 

5,096,672

 

 

 

5,128,333

 

 

 

5,156,897

 

 

 

5,260,672

 

 

 

5,330,401

 

Book Value Per Common Share

 

$

20.94

 

 

$

22.18

 

 

$

23.69

 

 

$

25.31

 

 

$

24.57

 

Tangible Book Value per Common Share (1)

 

 

18.25

 

 

 

19.43

 

 

 

20.86

 

 

 

22.45

 

 

 

21.67

 

Stockholders’ Equity to Assets

 

 

7.5

%

 

 

8.2

%

 

 

8.5

%

 

 

9.3

%

 

 

8.9

%

Tangible Common Equity to Tangible Assets (1)

 

 

6.6

 

 

 

7.3

 

 

 

7.6

 

 

 

8.4

 

 

 

7.9

 

 

 

Three Months Ended

 

Nine Months Ended

Selected Financial Ratios (2)

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

Return on Average Assets

 

1.12

%

 

0.03

%

 

0.87

%

 

1.87

%

 

0.54

%

 

0.68

%

 

0.42

%

Adjusted Return on Average Assets (1)

 

1.03

 

 

0.08

 

 

0.87

 

 

0.76

 

 

0.53

 

 

0.66

 

 

0.70

 

Return on Average Equity

 

13.60

 

 

0.40

 

 

9.50

 

 

20.95

 

 

5.93

 

 

7.85

 

 

4.59

 

Adjusted Return on Average Equity (1)

 

12.53

 

 

0.93

 

 

9.54

 

 

8.55

 

 

5.88

 

 

7.69

 

 

7.65

 

Average Interest-Earning Assets to Average Interest-Bearing Liabilities

 

149.41

 

 

149.03

 

 

144.48

 

 

145.09

 

 

146.78

 

 

147.64

 

 

145.56

 

Average Equity to Average Assets

 

8.20

 

 

8.49

 

 

9.14

 

 

8.93

 

 

9.03

 

 

8.61

 

 

9.19

 

Net Interest Rate Spread

 

3.10

 

 

3.00

 

 

2.98

 

 

2.85

 

 

2.77

 

 

3.03

 

 

2.80

 

Net Interest Rate Spread (FTE) (1)

 

3.11

 

 

3.01

 

 

2.99

 

 

2.86

 

 

2.78

 

 

3.04

 

 

2.81

 

Net Interest Margin

 

3.29

 

 

3.12

 

 

3.08

 

 

2.95

 

 

2.88

 

 

3.17

 

 

2.92

 

Net Interest Margin (FTE) (1)

 

3.30

 

 

3.13

 

 

3.10

 

 

2.96

 

 

2.89

 

 

3.18

 

 

2.93

 

Net (Recoveries) Charge-offs to Average Loans

 

(0.01

)

 

1.01

 

 

(0.01

)

 

0.03

 

 

(0.01

)

 

0.33

 

 

 

Efficiency Ratio

 

64.18

 

 

68.55

 

 

69.21

 

 

52.71

 

 

80.05

 

 

67.21

 

 

87.68

 

Adjusted Efficiency Ratio (1)

 

63.02

 

 

64.18

 

 

65.88

 

 

69.73

 

 

77.27

 

 

64.33

 

 

75.92

 

Asset Quality Ratios

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

Allowance for Loan Losses to Total Loans

 

1.23

%

 

1.25

%

 

1.14

%

 

1.13

%

 

1.16

%

Allowance for Loan Losses to Total Loans, Excluding PPP Loans(1)

 

1.23

 

 

1.25

 

 

1.15

 

 

1.16

 

 

1.20

 

Allowance for Loan Losses to Nonperforming Loans (3)

 

218.61

 

 

219.89

 

 

158.88

 

 

159.40

 

 

106.18

 

Allowance for Loan Losses to Noncurrent Loans (4)

 

318.96

 

 

329.47

 

 

218.28

 

 

233.37

 

 

135.37

 

Delinquent and Nonaccrual Loans to Total Loans (4) (5)

 

0.46

 

 

0.45

 

 

0.79

 

 

0.78

 

 

0.97

 

Nonperforming Loans to Total Loans (3)

 

0.56

 

 

0.57

 

 

0.72

 

 

0.71

 

 

1.09

 

Noncurrent Loans to Total Loans (4)

 

0.39

 

 

0.38

 

 

0.52

 

 

0.49

 

 

0.85

 

Nonperforming Assets to Total Assets (6)

 

0.41

 

 

0.42

 

 

0.51

 

 

0.51

 

 

0.74

 

Capital Ratios (7)

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

Common Equity Tier 1 Capital (to Risk Weighted Assets)

 

12.02

%

 

11.83

%

 

11.99

%

 

11.95

%

 

11.53

%

Tier 1 Capital (to Risk Weighted Assets)

 

12.02

 

 

11.83

 

 

11.99

 

 

11.95

 

 

11.53

 

Total Capital (to Risk Weighted Assets)

 

13.27

 

 

13.08

 

 

13.20

 

 

13.18

 

 

12.77

 

Tier 1 Leverage (to Adjusted Total Assets)

 

8.51

 

 

8.33

 

 

8.19

 

 

7.76

 

 

7.38

 

(1)

 

Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(2)

 

Interim period ratios are calculated on an annualized basis.

(3)

 

Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans.

(4)

 

Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due.

(5)

 

Delinquent loans consist of accruing loans that are 30 days or more past due.

(6)

 

Nonperforming assets consist of nonperforming loans and other real estate owned.

(7)

 

Capital ratios are for Community Bank only.

Certain items previously reported may have been reclassified to conform with the current reporting period’s format.

AVERAGE BALANCES AND YIELDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 2022

 

June 30, 2022

 

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost
(1)

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost
(1)

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost
(1)

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost
(1)

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost
(1)

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net (2)

 

$

1,024,363

 

$

10,833

 

4.20

%

 

$

1,007,874

 

$

9,751

 

3.88

%

 

$

1,009,210

 

$

9,573

 

3.85

%

 

$

1,004,827

 

$

9,927

 

3.92

%

 

$

1,004,474

 

$

9,740

 

3.85

%

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

222,110

 

 

985

 

1.77

 

 

 

228,315

 

 

988

 

1.73

 

 

 

215,906

 

 

905

 

1.68

 

 

 

205,328

 

 

866

 

1.69

 

 

 

197,763

 

 

843

 

1.71

 

Exempt From Federal Tax

 

 

7,998

 

 

62

 

3.10

 

 

 

9,109

 

 

73

 

3.21

 

 

 

10,195

 

 

84

 

3.30

 

 

 

10,477

 

 

84

 

3.21

 

 

 

11,647

 

 

90

 

3.09

 

Equity Securities

 

 

2,693

 

 

21

 

3.12

 

 

 

2,693

 

 

20

 

2.97

 

 

 

2,693

 

 

22

 

3.27

 

 

 

2,693

 

 

21

 

3.12

 

 

 

2,655

 

 

19

 

2.86

 

Interest Bearing Deposits at Banks

 

 

67,870

 

 

378

 

2.23

 

 

 

56,379

 

 

122

 

0.87

 

 

 

59,296

 

 

33

 

0.22

 

 

 

150,102

 

 

61

 

0.16

 

 

 

160,935

 

 

92

 

0.23

 

Other Interest-Earning Assets

 

 

2,784

 

 

39

 

5.56

 

 

 

3,235

 

 

38

 

4.71

 

 

 

3,483

 

 

39

 

4.54

 

 

 

3,475

 

 

45

 

5.14

 

 

 

3,512

 

 

43

 

4.86

 

Total Interest-Earning Assets

 

 

1,327,818

 

 

12,318

 

3.68

 

 

 

1,307,605

 

 

10,992

 

3.37

 

 

 

1,300,783

 

 

10,656

 

3.32

 

 

 

1,376,902

 

 

11,004

 

3.17

 

 

 

1,380,986

 

 

10,827

 

3.11

 

Noninterest-Earning Assets

 

 

68,796

 

 

 

 

 

 

84,323

 

 

 

 

 

 

122,288

 

 

 

 

 

 

100,607

 

 

 

 

 

 

88,291

 

 

 

 

Total Assets

 

$

1,396,614

 

 

 

 

 

$

1,391,928

 

 

 

 

 

$

1,423,071

 

 

 

 

 

$

1,477,509

 

 

 

 

 

$

1,469,277

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Demand Deposits (3)

 

$

278,412

 

$

393

 

0.56

%

 

$

260,655

 

$

111

 

0.17

%

 

$

276,603

 

$

48

 

0.07

 

 

$

278,546

 

$

51

 

0.07

 

 

$

275,411

 

$

48

 

0.07

%

Savings (3)

 

 

251,148

 

 

20

 

0.03

 

 

 

248,356

 

 

20

 

0.03

 

 

 

243,786

 

 

19

 

0.03

 

 

 

252,387

 

 

20

 

0.03

 

 

 

251,801

 

 

21

 

0.03

 

Money Market (3)

 

 

189,371

 

 

269

 

0.56

 

 

 

188,804

 

 

61

 

0.13

 

 

 

192,425

 

 

41

 

0.09

 

 

 

209,572

 

 

57

 

0.11

 

 

 

198,167

 

 

55

 

0.11

 

Time Deposits (3)

 

 

123,438

 

 

397

 

1.28

 

 

 

127,832

 

 

412

 

1.29

 

 

 

132,015

 

 

422

 

1.30

 

 

 

154,342

 

 

508

 

1.31

 

 

 

168,654

 

 

591

 

1.39

 

Total Interest-Bearing Deposits (3)

 

 

842,369

 

 

1,079

 

0.51

 

 

 

825,647

 

 

604

 

0.29

 

 

 

844,829

 

 

530

 

0.25

 

 

 

894,847

 

 

636

 

0.28

 

 

 

894,033

 

 

715

 

0.32

 

Short-Term Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities Sold Under Agreements to Repurchase

 

 

28,738

 

 

19

 

0.26

 

 

 

34,135

 

 

18

 

0.21

 

 

 

37,884

 

 

19

 

0.20

 

 

 

44,709

 

 

26

 

0.23

 

 

 

40,818

 

 

25

 

0.24

 

Other Borrowings

 

 

17,621

 

 

174

 

3.92

 

 

 

17,611

 

 

173

 

3.94

 

 

 

17,604

 

 

174

 

4.01

 

 

 

9,474

 

 

70

 

2.93

 

 

 

6,000

 

 

36

 

2.38

 

Total Interest-Bearing Liabilities

 

 

888,728

 

 

1,272

 

0.57

 

 

 

877,393

 

 

795

 

0.36

 

 

 

900,317

 

 

723

 

0.33

 

 

 

949,030

 

 

732

 

0.31

 

 

 

940,851

 

 

776

 

0.33

 

Noninterest-Bearing Demand Deposits

 

 

390,658

 

 

 

 

 

 

391,975

 

 

 

 

 

 

384,188

 

 

 

 

 

 

388,787

 

 

 

 

 

 

387,746

 

 

 

 

Other Liabilities

 

 

2,636

 

 

 

 

 

 

4,415

 

 

 

 

 

 

8,554

 

 

 

 

 

 

7,800

 

 

 

 

 

 

8,019

 

 

 

 

Total Liabilities

 

 

1,282,022

 

 

 

 

 

 

1,273,783

 

 

 

 

 

 

1,293,059

 

 

 

 

 

 

1,345,617

 

 

 

 

 

 

1,336,616

 

 

 

 

Stockholders' Equity

 

 

114,592

 

 

 

 

 

 

118,145

 

 

 

 

 

 

130,012

 

 

 

 

 

 

131,892

 

 

 

 

 

 

132,661

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

1,396,614

 

 

 

 

 

$

1,391,928

 

 

 

 

 

$

1,423,071

 

 

 

 

 

$

1,477,509

 

 

 

 

 

$

1,469,277

 

 

 

 

Net Interest Income (FTE)

(Non-GAAP) (4)

 

 

 

$

11,046

 

 

 

 

 

$

10,197

 

 

 

 

 

$

9,933

 

 

 

 

 

$

10,272

 

 

 

 

 

$

10,051

 

 

Net Interest-Earning Assets (5)

 

 

439,090

 

 

 

 

 

 

430,212

 

 

 

 

 

 

400,466

 

 

 

 

 

 

427,872

 

 

 

 

 

 

440,135

 

 

 

 

Net Interest Rate Spread (FTE)

(Non-GAAP) (4) (6)

 

 

 

 

 

3.11

%

 

 

 

 

 

3.01

%

 

 

 

 

 

2.99

 

 

 

 

 

 

2.86

 

 

 

 

 

 

2.78

%

Net Interest Margin (FTE)

(Non-GAAP) (4)(7)

 

 

 

 

 

3.30

 

 

 

 

 

 

3.13

 

 

 

 

 

 

3.10

 

 

 

 

 

 

2.96

 

 

 

 

 

 

2.89

 

PPP Loans

 

 

2,424

 

 

123

 

20.13

 

 

 

5,546

 

 

144

 

10.41

 

 

 

14,673

 

 

445

 

12.30

 

 

 

29,067

 

 

391

 

5.34

 

 

 

40,313

 

 

484

 

4.76

 

(1)

 

Annualized based on three months ended results.

(2)

 

Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.

(3)

 

Includes Deposits Held for Sale that were sold in December 2021.

(4)

 

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(5)

 

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(6)

 

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(7)

 

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

AVERAGE BALANCES AND YIELDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30, 2022

 

September 30, 2021

 

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost (1)

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost (1)

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net (2)

 

$

1,013,871

 

$

30,157

 

3.98

%

 

$

1,017,632

 

$

29,872

 

3.92

%

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

222,132

 

 

2,878

 

1.73

 

 

 

148,718

 

 

2,124

 

1.90

 

Exempt From Federal Tax

 

 

9,093

 

 

218

 

3.20

 

 

 

12,284

 

 

282

 

3.06

 

Marketable Equity Securities

 

 

2,693

 

 

64

 

3.17

 

 

 

2,645

 

 

63

 

3.18

 

Interest Bearing Deposits at Banks

 

 

61,213

 

 

534

 

1.16

 

 

 

187,093

 

 

243

 

0.17

 

Other Interest-Earning Assets

 

 

3,165

 

 

115

 

4.86

 

 

 

3,820

 

 

141

 

4.93

 

Total Interest-Earning Assets

 

 

1,312,167

 

 

33,966

 

3.46

 

 

 

1,372,192

 

 

32,725

 

3.19

 

Noninterest-Earning Assets

 

 

91,607

 

 

 

 

 

 

87,863

 

 

 

 

Total Assets

 

$

1,403,774

 

 

 

 

 

$

1,460,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Demand Deposits (3)

 

$

271,897

 

 

554

 

0.27

%

 

$

270,136

 

 

181

 

0.09

%

Savings (3)

 

 

247,790

 

 

58

 

0.03

 

 

 

246,340

 

 

78

 

0.04

 

Money Market (3)

 

 

190,189

 

 

371

 

0.26

 

 

 

198,408

 

 

223

 

0.15

 

Time Deposits (3)

 

 

127,732

 

 

1,231

 

1.29

 

 

 

177,690

 

 

2,007

 

1.51

 

Total Interest-Bearing Deposits (3)

 

 

837,608

 

 

2,214

 

0.35

 

 

 

892,574

 

 

2,489

 

0.37

 

Short-Term Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

Securities Sold Under Agreements to Repurchase

 

 

33,553

 

 

56

 

0.22

 

 

 

43,745

 

 

72

 

0.22

 

Other Borrowings

 

 

17,612

 

 

522

 

3.96

 

 

 

6,396

 

 

112

 

2.34

 

Total Interest-Bearing Liabilities

 

 

888,773

 

 

2,792

 

0.42

 

 

 

942,715

 

 

2,673

 

0.38

 

Noninterest-Bearing Demand Deposits

 

 

388,964

 

 

 

 

 

 

374,865

 

 

 

 

Other Liabilities

 

 

5,177

 

 

 

 

 

 

8,293

 

 

 

 

Total Liabilities

 

 

1,282,914

 

 

 

 

 

 

1,325,873

 

 

 

 

Stockholders' Equity

 

 

120,860

 

 

 

 

 

 

134,182

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

1,403,774

 

 

 

 

 

$

1,460,055

 

 

 

 

Net Interest Income (FTE) (Non-GAAP) (4)

 

 

 

 

31,174

 

 

 

 

 

 

30,052

 

 

Net Interest-Earning Assets (5)

 

 

423,394

 

 

 

 

 

 

429,477

 

 

 

 

Net Interest Rate Spread (FTE) (Non-GAAP) (4)(6)

 

 

 

 

 

3.04

%

 

 

 

 

 

2.81

%

Net Interest Margin (FTE) (Non-GAAP) (4)(7)

 

 

 

 

 

3.18

 

 

 

 

 

 

2.93

 

PPP Loans

 

 

7,503

 

 

712

 

12.69

 

 

 

51,579

 

 

1,797

 

4.66

 

(1)

 

Annualized based on nine months ended results.

(2)

 

Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.

(3)

 

Includes Deposits Held for Sale that were sold in December 2021.

(4)

 

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(5)

 

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(6)

 

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(7)

 

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

Explanation of Use of Non-GAAP Financial Measures
In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company’s business and in analyzing the Company’s operating results on the same basis as that applied by management. Although we believe that these Non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with Non-GAAP measures which may be presented by other companies. Where Non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein.

 

 

Three Months Ended

 

Nine Months Ended

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP)

 

$

3,929

 

 

$

118

 

 

$

3,047

 

 

$

6,965

 

 

$

1,983

 

 

$

7,094

 

 

$

4,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss (Gain) on Securities

 

 

46

 

 

 

199

 

 

 

7

 

 

 

(44

)

 

 

(24

)

 

 

252

 

 

 

(482

)

Gain on Sale of Branches

 

 

 

 

 

 

 

 

 

 

 

(5,203

)

 

 

 

 

 

 

 

 

 

(Gain) Loss on Disposal of Fixed Assets

 

 

(439

)

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

(431

)

 

 

3

 

Tax effect

 

 

83

 

 

 

(42

)

 

 

(3

)

 

 

1,102

 

 

 

5

 

 

 

38

 

 

 

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Cash Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible Assets and Goodwill Impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,178

 

Writedown on Fixed Assets

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

2

 

 

 

 

 

 

2,270

 

Tax Effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Non-GAAP)

 

$

3,619

 

 

$

275

 

 

$

3,059

 

 

$

2,843

 

 

$

1,966

 

 

$

6,953

 

 

$

7,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding

 

 

5,118,627

 

 

 

5,156,975

 

 

 

5,220,887

 

 

 

5,314,537

 

 

 

5,390,128

 

 

 

5,165,376

 

 

 

5,420,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Common Share - Diluted (GAAP)

 

$

0.77

 

 

$

0.02

 

 

$

0.58

 

 

$

1.31

 

 

$

0.37

 

 

$

1.37

 

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings per Common Share - Diluted (Non-GAAP)

 

$

0.71

 

 

$

0.05

 

 

$

0.59

 

 

$

0.53

 

 

$

0.36

 

 

$

1.35

 

 

$

1.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP) (Numerator)

 

$

3,929

 

 

$

118

 

 

$

3,047

 

 

$

6,965

 

 

$

1,983

 

 

$

7,094

 

 

$

4,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

 

3.97

 

 

 

4.01

 

 

 

4.06

 

 

 

3.97

 

 

 

3.97

 

 

 

1.34

 

 

 

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets (Denominator)

 

 

1,396,614

 

 

 

1,391,928

 

 

 

1,423,071

 

 

 

1,477,509

 

 

 

1,469,277

 

 

 

1,403,774

 

 

 

1,460,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (GAAP)

 

 

1.12

%

 

 

0.03

%

 

 

0.87

%

 

 

1.87

%

 

 

0.54

%

 

 

0.68

%

 

 

0.42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Non-GAAP) (Numerator)

 

$

3,619

 

 

$

275

 

 

$

3,059

 

 

$

2,843

 

 

$

1,966

 

 

$

6,953

 

 

$

7,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

 

3.97

 

 

 

4.01

 

 

 

4.06

 

 

 

3.97

 

 

 

3.97

 

 

 

1.34

 

 

 

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets (Denominator)

 

 

1,396,614

 

 

 

1,391,928

 

 

 

1,423,071

 

 

 

1,477,509

 

 

 

1,469,277

 

 

 

1,407,413

 

 

 

1,455,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Return on Average Assets (Non-GAAP)

 

 

1.03

%

 

 

0.08

%

 

 

0.87

%

 

 

0.76

%

 

 

0.53

%

 

 

0.66

%

 

 

0.70

%

 

 

Three Months Ended

 

Nine Months Ended

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP) (Numerator)

 

$

3,929

 

 

$

118

 

 

$

3,047

 

 

$

6,965

 

 

$

1,983

 

 

$

7,094

 

 

$

4,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

 

3.97

 

 

 

4.01

 

 

 

4.06

 

 

 

3.97

 

 

 

3.97

 

 

 

1.34

 

 

 

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Equity (GAAP) (Denominator)

 

 

114,592

 

 

 

118,145

 

 

 

130,012

 

 

 

131,892

 

 

 

132,661

 

 

 

120,860

 

 

 

134,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Equity (GAAP)

 

 

13.60

%

 

 

0.40

%

 

 

9.50

%

 

 

20.95

%

 

 

5.93

%

 

 

7.85

%

 

 

4.59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Non-GAAP) (Numerator)

 

$

3,619

 

 

$

275

 

 

$

3,059

 

 

$

2,843

 

 

$

1,966

 

 

$

6,953

 

 

$

7,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

 

3.97

 

 

 

4.01

 

 

 

4.06

 

 

 

3.97

 

 

 

3.97

 

 

 

1.34

 

 

 

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Equity (GAAP) (Denominator)

 

 

114,592

 

 

 

118,145

 

 

 

130,012

 

 

 

131,892

 

 

 

132,661

 

 

 

120,860

 

 

 

134,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Return on Average Equity (Non-GAAP)

 

 

12.53

%

 

 

0.93

%

 

 

9.54

%

 

 

8.55

%

 

 

5.88

%

 

 

7.69

%

 

 

7.65

%

Tangible book value per common share is a Non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a Non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these Non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company’s total value.

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets (GAAP)

 

$

1,425,920

 

 

$

1,386,461

 

 

$

1,438,670

 

 

$

1,425,479

 

 

$

1,474,818

 

Goodwill and Intangible Assets, Net

 

 

(13,691

)

 

 

(14,136

)

 

 

(14,582

)

 

 

(15,027

)

 

 

(15,472

)

Tangible Assets (Non-GAAP) (Numerator)

 

$

1,412,229

 

 

$

1,372,325

 

 

$

1,424,088

 

 

$

1,410,452

 

 

$

1,459,346

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity (GAAP)

 

$

106,706

 

 

$

113,772

 

 

$

122,156

 

 

$

133,124

 

 

$

130,987

 

Goodwill and Intangible Assets, Net

 

 

(13,691

)

 

 

(14,136

)

 

 

(14,582

)

 

 

(15,027

)

 

 

(15,472

)

Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)

 

$

93,015

 

 

$

99,636

 

 

$

107,574

 

 

$

118,097

 

 

$

115,515

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity to Assets (GAAP)

 

 

7.5

%

 

 

8.2

%

 

 

8.5

%

 

 

9.3

%

 

 

8.9

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

 

6.6

%

 

 

7.3

%

 

 

7.6

%

 

 

8.4

%

 

 

7.9

%

 

 

 

 

 

 

 

 

 

 

 

Common Shares Outstanding (Denominator)

 

 

5,096,672

 

 

 

5,128,333

 

 

 

5,156,897

 

 

 

5,260,672

 

 

 

5,330,401

 

 

 

 

 

 

 

 

 

 

 

 

Book Value per Common Share (GAAP)

 

$

20.94

 

 

$

22.18

 

 

$

23.69

 

 

$

25.31

 

 

$

24.57

 

Tangible Book Value per Common Share (Non-GAAP)

 

$

18.25

 

 

$

19.43

 

 

$

20.86

 

 

$

22.45

 

 

$

21.67

 

Interest income on interest-earning assets, net interest rate spread and net interest margin are presented on a fully tax-equivalent (“FTE”) basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and securities using the federal statutory income tax rate of 21 percent. We believe the presentation of net interest income on a FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income, net interest spread and net interest margin on a FTE basis for the periods indicated:

 

 

Three Months Ended

 

Nine Months Ended

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (GAAP)

 

$

12,287

 

 

$

10,958

 

 

$

10,616

 

 

$

10,963

 

 

$

10,786

 

 

$

33,861

 

 

$

32,594

 

Adjustment to FTE Basis

 

 

31

 

 

 

34

 

 

 

40

 

 

 

41

 

 

 

41

 

 

 

105

 

 

 

131

 

Interest Income (FTE) (Non-GAAP)

 

 

12,318

 

 

 

10,992

 

 

 

10,656

 

 

 

11,004

 

 

 

10,827

 

 

 

33,966

 

 

 

32,725

 

Interest Expense (GAAP)

 

 

1,272

 

 

 

795

 

 

 

723

 

 

 

732

 

 

 

776

 

 

 

2,792

 

 

 

2,673

 

Net Interest Income (FTE) (Non-GAAP)

 

$

11,046

 

 

$

10,197

 

 

$

9,933

 

 

$

10,272

 

 

$

10,051

 

 

$

31,174

 

 

$

30,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Rate Spread (GAAP)

 

 

3.10

%

 

 

3.00

%

 

 

2.98

%

 

 

2.85

%

 

 

2.77

%

 

 

3.03

%

 

 

2.80

%

Adjustment to FTE Basis

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

Net Interest Rate Spread (FTE) (Non-GAAP)

 

 

3.11

 

 

 

3.01

 

 

 

2.99

 

 

 

2.86

 

 

 

2.78

 

 

 

3.04

 

 

 

2.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin (GAAP)

 

 

3.29

%

 

 

3.12

%

 

 

3.08

%

 

 

2.95

%

 

 

2.88

%

 

 

3.17

%

 

 

2.92

%

Adjustment to FTE Basis

 

 

0.01

 

 

 

0.01

 

 

 

0.02

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

Net Interest Margin (FTE) (Non-GAAP)

 

 

3.30

 

 

 

3.13

 

 

 

3.10

 

 

 

2.96

 

 

 

2.89

 

 

 

3.18

 

 

 

2.93

 

Adjusted efficiency ratio excludes the effect of certain non-recurring or non-cash items and represents adjusted noninterest expense divided by adjusted operating revenue. The Company evaluates its operational efficiency based on its adjusted efficiency ratio and believes it provides additional perspective on its ongoing performance as well as peer comparability.

 

 

Three Months Ended

 

Nine Months Ended

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

9/30/22

 

9/30/21

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense (GAAP) (Numerator)

 

$

8,827

 

 

$

8,410

 

 

$

8,656

 

 

$

9,972

 

 

$

9,773

 

 

$

25,893

 

 

$

32,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest and Dividend Income (GAAP)

 

$

11,015

 

 

$

10,163

 

 

$

9,893

 

 

$

10,231

 

 

$

10,010

 

 

$

31,069

 

 

$

29,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income (GAAP)

 

 

2,739

 

 

 

2,105

 

 

 

2,613

 

 

 

8,689

 

 

 

2,198

 

 

 

7,459

 

 

 

7,591

 

Operating Revenue (GAAP) (Denominator)

 

$

13,754

 

 

$

12,268

 

 

$

12,506

 

 

$

18,920

 

 

$

12,208

 

 

$

38,528

 

 

$

37,512

 

Efficiency Ratio (GAAP)

 

 

64.18

%

 

 

68.55

%

 

 

69.21

%

 

 

52.71

%

 

 

80.05

%

 

 

67.21

%

 

 

87.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense (GAAP)

 

$

8,827

 

 

$

8,410

 

 

$

8,656

 

 

$

9,972

 

 

$

9,773

 

 

$

25,893

 

 

$

32,890

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Real Estate Owned (Income)

 

 

(38

)

 

 

(37

)

 

 

(38

)

 

 

(30

)

 

 

(89

)

 

 

(113

)

 

 

(153

)

Amortization of Intangible Assets

 

 

445

 

 

 

446

 

 

 

445

 

 

 

445

 

 

 

446

 

 

 

1,336

 

 

 

1,481

 

Intangible Assets and Goodwill Impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,178

 

Writedown on Fixed Assets

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

2

 

 

 

 

 

 

2,270

 

Adjusted Noninterest Expense (Non-GAAP) (Numerator)

 

$

8,420

 

 

$

8,001

 

 

$

8,249

 

 

$

9,534

 

 

$

9,414

 

 

$

24,670

 

 

$

28,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest and Dividend Income (GAAP)

 

$

11,015

 

 

$

10,163

 

 

$

9,893

 

 

$

10,231

 

 

$

10,010

 

 

$

31,069

 

 

$

29,921

 

Noninterest Income (GAAP)

 

 

2,739

 

 

 

2,105

 

 

 

2,613

 

 

 

8,689

 

 

 

2,198

 

 

 

7,459

 

 

 

7,591

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Gain on Securities

 

 

(46

)

 

 

(199

)

 

 

(7

)

 

 

44

 

 

 

24

 

 

 

(252

)

 

 

482

 

Gain on Sale of Branches

 

 

 

 

 

 

 

 

 

 

 

5,203

 

 

 

 

 

 

 

 

 

 

Net Gain (Loss) on Disposal of Fixed Assets

 

 

439

 

 

 

 

 

 

(8

)

 

 

 

 

 

 

 

 

431

 

 

 

(3

)

Adjusted Noninterest Income (Non-GAAP)

 

$

2,346

 

 

$

2,304

 

 

$

2,628

 

 

$

3,442

 

 

$

2,174

 

 

$

7,280

 

 

$

7,112

 

Adjusted Operating Revenue (Non-GAAP) (Denominator)

 

$

13,361

 

 

$

12,467

 

 

$

12,521

 

 

$

13,673

 

 

$

12,184

 

 

$

38,349

 

 

$

37,033

 

Adjusted Efficiency Ratio (Non-GAAP)

 

 

63.02

%

 

 

64.18

%

 

 

65.88

%

 

 

69.73

%

 

 

77.27

%

 

 

64.33

%

 

 

75.92

%

Allowance for loan losses to total loans, excluding PPP loans, is a Non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans.

 

 

9/30/22

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (Numerator)

 

$

12,854

 

 

$

12,833

 

 

$

11,595

 

 

$

11,582

 

 

$

11,581

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans

 

 

1,042,942

 

 

$

1,027,969

 

 

 

1,020,642

 

 

$

1,020,796

 

 

$

1,001,599

 

PPP Loans

 

 

(768

)

 

 

(3,853

)

 

 

(8,242

)

 

 

(24,523

)

 

 

(32,703

)

Total Loans, Excluding PPP Loans (Non-GAAP) (Denominator)

 

$

1,042,174

 

 

$

1,024,116

 

 

$

1,012,400

 

 

$

996,273

 

 

$

968,896

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP)

 

 

1.23

%

 

 

1.25

%

 

 

1.15

%

 

 

1.16

%

 

 

1.20

%

 

Contacts

Company:
John H. Montgomery
President and Chief Executive Officer
(724) 225-2400

Investor Relations:
Jeremy Hellman, Vice President
The Equity Group Inc.
(212) 836-9626
jhellman@equityny.com

Contacts

Company:
John H. Montgomery
President and Chief Executive Officer
(724) 225-2400

Investor Relations:
Jeremy Hellman, Vice President
The Equity Group Inc.
(212) 836-9626
jhellman@equityny.com