- Fourth quarter net income of
$5.5 million compared to net income of$7.9 million in the quarter endedDecember 31, 2022 , and$5.9 million in the quarter endedSeptember 30, 2023 ; - Net income of
$25.0 million for the year endedDecember 31, 2023 , compared to net income of$20.1 million for the year endedDecember 31, 2022 ; - Net interest margin of 3.76% for the year ended
December 31, 2023 , a 37-basis point increase from the net interest margin of 3.39% for the year endedDecember 31, 2022 ; - Year-to-date efficiency ratio of 65.75%; return on average assets of 1.15%; and return on equity of 13.47%;
- Continued improvement in credit metrics with nonperforming assets to total loans of 0.23% at
December 31, 2023 , a decrease of 67.1% from the ratio atDecember 31, 2022 ; - Cash dividend of
$0.17 per common share payable onFebruary 13, 2024 , to common stock holders of record onJanuary 23, 2024 . - On
December 12, 2023 ,Codorus Valley Bancorp Inc. (NASDAQ: CVLY) andOrrstown Financial Services Inc. (NASDAQ: ORRF) (“Orrstown”) announced that the companies entered into an Agreement and Plan of Merger to effect a merger of equals (the “Merger”) later this year. As a result, the Corporation realized merger-related expenses of$956,000 in the fourth quarter 2023.
(1) Net income excluding merger-related expenses, diluted earnings per share excluding merger-related expenses, tangible book value per share and tangible book value per share without accumulated other comprehensive loss are non-GAAP financial measures. Please see Financial Highlights for disclosure and reconciliation of non-GAAP financial measures.
"Our robust performance in the fourth quarter is a testament to the dedicated efforts of our team over the past several years, resulting in
REVIEW OF RESULTS
Balance Sheet
Loans
Loans increased
Borrowings
FHLB advances and other short-term borrowings increased
Deposits
Total Deposits decreased
Income Statement
The Corporation’s net interest income for the three months ended
The Corporation’s provision for credit losses, which includes provision for credit losses on unfunded commitments in 2023, for the three months ended
Noninterest income for the three months ended
Noninterest expense was
Income tax expense for the quarter ended
Capital
Shareholders’ equity totaled
Book value per share was
Liquidity Risk Management
The Bank maintains a well-diversified deposit base and has a comparatively low level of uninsured deposits. At
The overall deposit and liquidity position of the Bank and the Corporation remain positive, with overall deposits exceeding the level at
Although the Bank had not utilized the Federal Reserve’s Bank Term Funding Facility as of
The Bank is a member of the IntraFi Network®, which provides reciprocal deposit alternatives allowing our clients to have the benefit of additional
Dividend Declared
On
Agreement and Plan of Merger with
On
Certain Accounting Matters
Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements when filed with the
The Corporation uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this Press Release. The Corporation’s management believes that the supplemental non-GAAP information provided in this press release is utilized by market analysts and others to evaluate the Corporation’s financial condition and results of operations and, therefore, such information is useful to investors. These measures have limitations as analytical tools and should not be considered a substitute for analysis of results under GAAP. These non-GAAP financial measures are reconciled to the most comparable measures following the “Financial Highlights” section of this press release.
Annualized, proforma, projected, and estimated numbers used herein are for illustrative purposes only, are not forecasts and may not reflect actual results.
About
Cautionary Note Regarding Forward-looking Statements
This Press Release may contain forward-looking statements by
Forward-looking statements are not historical facts, nor should they be relied upon as providing assurance of future performance. Forward-looking statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation’s business, including its pending merger (the “Merger”) with
- changes or volatility in market interest rates and the persistence of an inflationary environment in the
U.S. and our market areas and the potential for an economic downturn or recession; - the effects of financial challenges at other banking institutions that could lead to depositor concerns that spread within the banking industry causing disruptive deposit outflows and other destabilizing results;
- legislative and regulatory changes, and the uncertain impact of new laws and regulations;
- monetary and fiscal policies of the federal government;
- the effects of changes in accounting policies and practices;
- ineffectiveness of the Corporation’s business strategy due to changes in current or future market conditions;
- changes in deposit flows, the cost of funds, demand for loan products and the demand for financial services;
- the remaining effects of the COVID-19 pandemic, including on the Corporation’s credit quality and operations as well as its impact on general economic conditions;
- competition; market volatility, market downturns, changes in consumer behavior, business closures;
- adverse changes in the quality or composition of the Corporation’s loan, investment and mortgage-backed securities portfolios, including from the effects of the recent inflationary environment;
- geographic concentration of the Corporation’s business;
- deterioration of commercial real estate values;
- the adequacy of loan loss reserves;
- deterioration in the credit quality of borrowers;
- the Corporation’s ability to attract and retain key personnel, especially in light of the pending Merger with
Orrstown ; - the impact of operational risks, including the risk of human error, failure or disruption of internal processes and systems, including of the Corporation’s information and other technology systems;
- failure or circumvention of our internal controls;
- the Corporation’s ability to keep pace with technological changes;
- breaches of security or failures of the Corporation to identify and adequately address cybersecurity and data breaches;
- changes in government regulation and supervision and the potential for negative consequences resulting from regulatory examinations, investigations and violations, in particular, the effect that such occurrences could have on the pending Merger with Orrstown;
- the effects of adverse outcomes from claims and litigation;
- occurrence of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond the Corporation's control, and the Corporation’s ability to deal effectively with disruptions caused by the foregoing; and
- economic, competitive, governmental and technological factors affecting the Corporation’s operations, markets, products, services and fees.
In addition to the foregoing factors with respect to the Corporation’s business, the following factors and uncertainties exist with respect to the pending Merger with
- the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive agreement and plan of merger between the Corporation and
Orrstown ; - the outcome of any legal proceedings that may be instituted against the Corporation or
Orrstown ; - delays in completing the proposed Merger;
- the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed Merger) or shareholder approvals;
- the failure to satisfy any of the other conditions to the proposed Merger on a timely basis or at all, including the ability of the Corporation or
Orrstown to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed Merger; - the possibility that the anticipated benefits of the proposed Merger are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Corporation and
Orrstown do business; - the possibility that the proposed Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events;
- the possibility that revenues following the proposed Merger may be lower than expected; the impact of certain restrictions during the pendency of the proposed Merger on the parties’ ability to pursue certain business opportunities and strategic transactions;
- diversion of management’s attention from ongoing business operations and opportunities;
- potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or the completion of the proposed Merger;
- the ability to complete the proposed Merger and integration of the Corporation and
Orrstown successfully; - the dilution caused by Orrstown’s issuance of additional shares of its capital stock in connection with the proposed Merger; and
- the potential impact of general economic, political or market factors on the companies or the proposed Merger and other factors that may affect future results of the Corporation or
Orrstown .
The Corporation does not commit to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Corporation to reflect events or circumstances occurring after the date of this report. Further information regarding Codorus Valley,
No Offer or Solicitation
This communication is not a proxy statement or solicitation or a proxy, consent or authorization with respect to any securities or in respect of the proposed Merger and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of
Additional Information About the Merger and Where to Find It
In connection with the proposed Merger,
INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE JOINT PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS.
Investors and security holders will be able to obtain these documents, and any other documents
Participants in the Solicitation
The directors, executive officers and certain other members of management and employees of
The directors, executive officers and certain other members of management and employees of Codorus Valley may also be deemed to be participants in the solicitation of proxies in connection with the proposed Merger from the shareholders of Codorus Valley. Information about the directors and executive officers of Codorus Valley is included in the proxy statement for its 2023 annual meeting of Codorus Valley shareholders, which was filed with the
Additional information regarding the interests of those participants and other persons who may be deemed participants in the proposed Merger may be obtained by reading the joint proxy statement/prospectus regarding the proposed Merger when it becomes available. Free copies of this document may be obtained as described above.
Questions or comments concerning this Press Release should be directed to:
Craig L. Kauffman | |
President and CEO | Chief Financial Officer |
717-747-1501 | 717-747-1502 |
ckauffman@peoplesbanknet.com | lpickett@peoplesbanknet.com |
Consolidated Balance Sheets (Unaudited) | |||||||
(Dollars in thousands, except share and per share data) | 2023 | 2022 | |||||
Assets | |||||||
Interest bearing deposits with banks | $ | 10,882 | $ | 99,777 | |||
Cash and due from banks | 22,809 | 20,662 | |||||
Total cash and cash equivalents | 33,691 | 120,439 | |||||
Securities, available-for-sale, at fair value (amortized cost | |||||||
and | 349,767 | 345,457 | |||||
Restricted investment in bank stocks, at cost | 3,146 | 955 | |||||
Loans held for sale | 822 | 154 | |||||
Loans (net of deferred fees of | 1,705,608 | 1,632,857 | |||||
Less-allowance for credit losses (1) | (20,506 | ) | (20,736 | ) | |||
Net loans | 1,685,102 | 1,612,121 | |||||
Premises and equipment, net | 19,563 | 21,136 | |||||
Operating leases right-of-use assets | 2,746 | 3,072 | |||||
2,301 | 2,301 | ||||||
Other assets | 94,656 | 89,417 | |||||
Total assets | $ | 2,191,794 | $ | 2,195,052 | |||
Liabilities | |||||||
Deposits | |||||||
Noninterest bearing | $ | 379,288 | $ | 463,853 | |||
Interest bearing | 1,494,054 | 1,479,366 | |||||
Total deposits | 1,873,342 | 1,943,219 | |||||
Short-term borrowings | 56,541 | 11,605 | |||||
Long-term debt and junior subordinated debt | 11,520 | 11,550 | |||||
Subordinated notes - face amount | |||||||
issuance cost of | 30,845 | 30,764 | |||||
Operating leases liabilities | 2,848 | 3,204 | |||||
Allowance for credit losses on off-balance sheet credit exposures | 2,278 | 0 | |||||
Other liabilities | 14,815 | 17,410 | |||||
Total liabilities | 1,992,189 | 2,017,752 | |||||
Shareholders' equity | |||||||
Preferred stock, par value | |||||||
1,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | |||||
Common stock, par value | |||||||
shares issued: 9,883,660 at | |||||||
and shares outstanding: 9,642,851 at | 24,709 | 24,709 | |||||
Additional paid-in capital | 142,633 | 141,896 | |||||
Retained earnings | 68,633 | 52,146 | |||||
Accumulated other comprehensive loss | (31,082 | ) | (34,764 | ) | |||
and 302,430 at | (5,288 | ) | (6,687 | ) | |||
Total shareholders' equity | 199,605 | 177,300 | |||||
Total liabilities and shareholders' equity | $ | 2,191,794 | $ | 2,195,052 | |||
(1) Beginning | |||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||
(dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Interest income | |||||||||||||||||||
Loans, including fees | $ | 26,967 | $ | 26,000 | $ | 21,676 | $ | 100,804 | $ | 73,139 | |||||||||
Investment securities: | |||||||||||||||||||
Taxable | 2,781 | 2,562 | 2,374 | 10,292 | 7,455 | ||||||||||||||
Tax-exempt | 108 | 106 | 110 | 414 | 427 | ||||||||||||||
Dividends | (90 | ) | 44 | 14 | 22 | 44 | |||||||||||||
Other | 176 | 361 | 1,226 | 1,766 | 3,588 | ||||||||||||||
Total interest income | 29,942 | 29,073 | 25,400 | 113,298 | 84,653 | ||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 9,800 | 8,740 | 3,382 | 30,754 | 7,261 | ||||||||||||||
Federal funds purchased and other short-term borrowings | 385 | 377 | 13 | 1,237 | 48 | ||||||||||||||
Long-term debt and junior subordinated debt | 222 | 215 | 175 | 839 | 616 | ||||||||||||||
Subordinated notes | 369 | 369 | 369 | 1,476 | 1,476 | ||||||||||||||
Total interest expense | 10,776 | 9,701 | 3,939 | 34,306 | 9,401 | ||||||||||||||
Net interest income | 19,166 | 19,372 | 21,461 | 78,992 | 75,252 | ||||||||||||||
(Recovery of) provision for credit losses - loans (1) | (833 | ) | 128 | (544 | ) | (244 | ) | 2,890 | |||||||||||
Provision for credit losses - unfunded commitments (1) | 66 | 123 | 0 | 389 | 0 | ||||||||||||||
Net interest income after provision for credit losses | 19,933 | 19,121 | 22,005 | 78,847 | 72,362 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Trust and investment services fees | 1,261 | 1,293 | 1,109 | 5,031 | 4,549 | ||||||||||||||
Income from mutual fund, annuity and insurance sales | 299 | 315 | 289 | 1,306 | 1,247 | ||||||||||||||
Service charges on deposit accounts | 1,529 | 1,598 | 1,458 | 6,153 | 5,503 | ||||||||||||||
Income from bank owned life insurance | 405 | 396 | 315 | 1,452 | 1,256 | ||||||||||||||
Other income | 773 | 549 | 401 | 2,771 | 1,880 | ||||||||||||||
Gain on sale of loans held for sale | 27 | 42 | 4 | 75 | 625 | ||||||||||||||
(Loss) gain on sale of assets held for sale | (54 | ) | 0 | 13 | 64 | (87 | ) | ||||||||||||
Loss on sales of securities | 0 | 0 | (119 | ) | (388 | ) | (119 | ) | |||||||||||
Total noninterest income | 4,240 | 4,193 | 3,470 | 16,464 | 14,854 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Personnel | 10,031 | 9,412 | 8,937 | 37,974 | 35,061 | ||||||||||||||
Occupancy of premises, net | 926 | 853 | 1,004 | 3,637 | 3,848 | ||||||||||||||
Furniture and equipment | 924 | 798 | 851 | 3,438 | 3,402 | ||||||||||||||
Professional and legal | 444 | 549 | 345 | 1,839 | 2,626 | ||||||||||||||
Marketing | 304 | 347 | 592 | 1,314 | 1,932 | ||||||||||||||
244 | 245 | 148 | 983 | 765 | |||||||||||||||
Debit card processing | 520 | 546 | 481 | 1,976 | 1,703 | ||||||||||||||
Charitable donations | 644 | 62 | 600 | 1,637 | 1,571 | ||||||||||||||
External data processing | 1,015 | 974 | 1,064 | 4,042 | 3,884 | ||||||||||||||
Settlement expenses | 0 | 0 | 1,000 | 0 | 1,000 | ||||||||||||||
Merger-related expenses | 956 | 0 | 0 | 956 | 0 | ||||||||||||||
(Recovery of) impaired loan carrying cost | (119 | ) | 107 | 34 | (348 | ) | 546 | ||||||||||||
Other | 1,396 | 2,003 | 291 | 6,020 | 5,230 | ||||||||||||||
Total noninterest expense | 17,285 | 15,896 | 15,347 | 63,468 | 61,568 | ||||||||||||||
Income before income taxes | 6,888 | 7,418 | 10,128 | 31,843 | 25,648 | ||||||||||||||
Provision for income taxes | 1,435 | 1,501 | 2,196 | 6,870 | 5,556 | ||||||||||||||
Net income | $ | 5,453 | $ | 5,917 | $ | 7,932 | $ | 24,973 | $ | 20,092 | |||||||||
Net income per share, basic | 0.57 | 0.62 | 0.83 | 2.60 | 2.11 | ||||||||||||||
Net income per share, diluted | 0.57 | 0.61 | 0.83 | 2.59 | 2.10 | ||||||||||||||
(1) Beginning | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||||||||||
Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
Quarterly | Year-to-Date | ||||||||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||||||||||
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 2023 | 2022 | |||||||||||||||||||||
Earnings and Per Share Data (1) | |||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||
Net income | $ | 5,453 | $ | 5,917 | $ | 6,611 | $ | 6,992 | $ | 7,932 | $ | 24,973 | $ | 20,092 | |||||||||||||
Basic earnings per share | $ | 0.57 | $ | 0.62 | $ | 0.69 | $ | 0.73 | $ | 0.83 | $ | 2.60 | $ | 2.11 | |||||||||||||
Diluted earnings per share | $ | 0.57 | $ | 0.61 | $ | 0.69 | $ | 0.73 | $ | 0.83 | $ | 2.59 | $ | 2.10 | |||||||||||||
Cash dividends paid per share | $ | 0.17 | $ | 0.17 | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.66 | $ | 0.60 | |||||||||||||
Book value per share | $ | 20.70 | $ | 19.06 | $ | 19.34 | $ | 19.28 | $ | 18.51 | $ | 20.70 | $ | 18.51 | |||||||||||||
Tangible book value per share (2) | $ | 20.46 | $ | 18.82 | $ | 19.10 | $ | 19.04 | $ | 18.27 | $ | 20.46 | $ | 18.27 | |||||||||||||
Tangible book value per share without AOCI (8) | $ | 23.68 | $ | 23.28 | $ | 22.81 | $ | 22.26 | $ | 21.90 | $ | 23.68 | $ | 21.90 | |||||||||||||
Average shares outstanding | 9,629 | 9,616 | 9,600 | 9,585 | 9,566 | 9,608 | 9,532 | ||||||||||||||||||||
Average diluted shares outstanding | 9,644 | 9,631 | 9,610 | 9,612 | 9,589 | 9,625 | 9,560 | ||||||||||||||||||||
Performance Ratios (%) | |||||||||||||||||||||||||||
Return on average assets (3) | 1.00 | 1.08 | 1.22 | 1.29 | 1.43 | 1.15 | 0.87 | ||||||||||||||||||||
Return on average equity (3) | 11.69 | 12.64 | 14.17 | 15.45 | 18.50 | 13.47 | 11.08 | ||||||||||||||||||||
Net interest margin (4) | 3.61 | 3.64 | 3.81 | 4.00 | 3.98 | 3.76 | 3.39 | ||||||||||||||||||||
Efficiency ratio (5) | 73.28 | 66.95 | 64.19 | 59.05 | 60.87 | 65.75 | 67.79 | ||||||||||||||||||||
Net overhead ratio (3)(6) | 2.40 | 2.14 | 2.10 | 1.93 | 2.13 | 2.14 | 2.02 | ||||||||||||||||||||
Asset Quality Ratios (%) | |||||||||||||||||||||||||||
Net loan charge-offs to average loans (3) | 0.03 | (0.15 | ) | 0.20 | 0.15 | 0.24 | 0.05 | 0.31 | |||||||||||||||||||
Allowance for credit losses to total loans (7) | 1.20 | 1.26 | 1.23 | 1.31 | 1.27 | 1.20 | 1.27 | ||||||||||||||||||||
Nonperforming assets to total loans | |||||||||||||||||||||||||||
and foreclosed real estate | 0.23 | 0.47 | 0.70 | 0.55 | 0.70 | 0.23 | 0.70 | ||||||||||||||||||||
Capital Ratios (%) | |||||||||||||||||||||||||||
Average equity to average assets | 8.57 | 8.55 | 8.58 | 8.38 | 7.75 | 8.52 | 7.87 | ||||||||||||||||||||
Tier 1 leverage capital ratio | 10.75 | 10.50 | 10.38 | 10.20 | 9.77 | 10.75 | 9.77 | ||||||||||||||||||||
Common equity Tier 1 capital ratio | 12.81 | 12.52 | 12.37 | 12.19 | 12.04 | 12.81 | 12.04 | ||||||||||||||||||||
Tier 1 risk-based capital ratio | 13.37 | 13.08 | 12.94 | 12.76 | 12.61 | 13.37 | 12.61 | ||||||||||||||||||||
Total risk-based capital ratio | 16.26 | 16.01 | 15.85 | 15.75 | 15.57 | 16.26 | 15.57 | ||||||||||||||||||||
(1) per share amounts and shares outstanding were adjusted for stock dividends | |||||||||||||||||||||||||||
(2) non-GAAP measure - book value less goodwill and core deposit intangibles; see reconciliation below | |||||||||||||||||||||||||||
(3) annualized for the quarterly periods presented | |||||||||||||||||||||||||||
(4) net interest income (tax-equivalent) as a percentage of average interest earning assets | |||||||||||||||||||||||||||
(5) noninterest expense as a percentage of net interest income and noninterest income (tax-equivalent) | |||||||||||||||||||||||||||
(6) noninterest expense less noninterest income as a percentage of average assets | |||||||||||||||||||||||||||
(7) excludes loans held for sale | |||||||||||||||||||||||||||
(8) non-GAAP measure - book value less accumulated other comprehensive income; see reconciliation below | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures (Tangible Book Value and Tangible Book Value without AOCI and Adjusted Net Income) | |||||||||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||||||||||
(in thousands, except per share data) | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | ||||||||||||||||||||||
Total Shareholders' Equity | $ | 199,605 | $ | 183,363 | $ | 185,869 | $ | 184,946 | $ | 177,300 | |||||||||||||||||
Less: | (2,301 | ) | (2,302 | ) | (2,302 | ) | (2,303 | ) | (2,303 | ) | |||||||||||||||||
Tangible Shareholders' Equity | $ | 197,304 | $ | 181,061 | $ | 183,567 | $ | 182,643 | $ | 174,997 | |||||||||||||||||
Add: Accumulated Other Comprehensive Loss | 31,082 | 42,869 | 35,650 | 30,941 | 34,764 | ||||||||||||||||||||||
Tangible Shareholders' Equity without AOCI | $ | 228,386 | $ | 223,930 | $ | 219,217 | $ | 213,584 | $ | 209,761 | |||||||||||||||||
Common Shares Outstanding | 9,644 | 9,619 | 9,611 | 9,594 | 9,581 | ||||||||||||||||||||||
Book Value Per Share | $ | 20.70 | $ | 19.06 | $ | 19.34 | $ | 19.28 | $ | 18.51 | |||||||||||||||||
Effect of Intangible Assets | (0.24 | ) | (0.24 | ) | (0.24 | ) | (0.24 | ) | (0.24 | ) | |||||||||||||||||
Tangible Book Value Per Share | $ | 20.46 | $ | 18.82 | $ | 19.10 | $ | 19.04 | $ | 18.27 | |||||||||||||||||
Book Value Per Share | $ | 20.70 | $ | 19.06 | $ | 19.34 | $ | 19.28 | $ | 18.51 | |||||||||||||||||
Effect of Intangible Assets and AOCI | (3.46 | ) | (4.70 | ) | (3.95 | ) | (3.47 | ) | (3.87 | ) | |||||||||||||||||
Tangible Book Value Per Share without AOCI | $ | 17.24 | $ | 14.37 | $ | 15.39 | $ | 15.81 | $ | 21.90 | |||||||||||||||||
Quarterly | Year-to-Date | ||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||
(in thousands, except per share data) | 4th Qtr | 4th Qtr | 2023 | 2022 | |||||||||||||||||||||||
Average Diluted Shares Outstanding | 9,644 | 9,589 | 9,625 | 9,560 | |||||||||||||||||||||||
Net Income | $ | 5,453 | $ | 7,932 | 24,973 | 20,092 | |||||||||||||||||||||
Plus: Merger-related expenses | 956 | - | 956 | - | |||||||||||||||||||||||
Less: Related tax effect | 200 | - | 200 | - | |||||||||||||||||||||||
Adjusted Net Income | $ | 6,209 | $ | 7,932 | $ | 25,729 | $ | 20,092 | |||||||||||||||||||
Adjusted Diluted Earnings Per Share | $ | 0.64 | $ | 0.83 | $ | 2.67 | $ | 2.10 | |||||||||||||||||||
This report contains certain financial information determined by methods other than in accordance with GAAP. This non-GAAP disclosure has limitation as an analytical tool | |||||||||||||||||||||||||||
and should not be considered in isolation or as a substitute for the analysis of the Corporation's results as reported under GAAP, nor is it necessarily comparable to non-GAAP | |||||||||||||||||||||||||||
performance measures that may be presented by other companies. Our management uses this non-GAAP measure in its analysis of our performance because it believes this measure | |||||||||||||||||||||||||||
is material and will be used as a measure of our performance by investors. | |||||||||||||||||||||||||||
ANALYSIS OF NET INTEREST INCOME | ||||||||||||||||||||||||||||||
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Taxable-Equivalent Interest | Taxable-Equivalent Rate | Average Balance | Taxable-Equivalent Interest | Taxable-Equivalent Rate | Average Balance | Taxable-Equivalent Interest | Taxable-Equivalent Rate | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Interest bearing deposits with banks | $ | 12,724 | $ | 176 | 5.46 | % | $ | 26,772 | $ | 361 | 5.35 | % | $ | 132,772 | $ | 1,226 | 3.66 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||
Taxable | 371,949 | 2,691 | 2.87 | 371,603 | 2,606 | 2.78 | 366,923 | 2,388 | 2.58 | |||||||||||||||||||||
Tax-exempt | 22,476 | 132 | 2.33 | 22,523 | 128 | 2.25 | 25,601 | 137 | 2.13 | |||||||||||||||||||||
Total investment securities | 394,426 | 2,822 | 2.84 | 394,126 | 2,734 | 2.75 | 392,524 | 2,524 | 2.55 | |||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||
Taxable (1) | 1,682,403 | 26,797 | 6.32 | 1,677,117 | 25,829 | 6.11 | 1,598,206 | 21,499 | 5.34 | |||||||||||||||||||||
Tax-exempt | 21,359 | 210 | 3.90 | 21,721 | 213 | 3.89 | 22,829 | 222 | 3.85 | |||||||||||||||||||||
Total loans | 1,703,762 | 27,007 | 6.29 | 1,698,838 | 26,042 | 6.08 | 1,621,035 | 21,721 | 5.32 | |||||||||||||||||||||
Total earning assets | 2,110,913 | 30,005 | 5.64 | 2,119,736 | 29,137 | 5.45 | 2,146,331 | 25,471 | 4.71 | |||||||||||||||||||||
Other assets (2) | 65,067 | 71,008 | 66,173 | |||||||||||||||||||||||||||
Total assets | $ | 2,175,980 | $ | 2,190,744 | $ | 2,212,504 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||
Interest bearing demand | $ | 914,832 | 5,918 | 2.57 | % | $ | 917,983 | 5,542 | 2.40 | % | $ | 942,286 | 2,561 | 1.08 | % | |||||||||||||||
Savings | 136,622 | 11 | 0.03 | 146,038 | 11 | 0.03 | 163,184 | 12 | 0.03 | |||||||||||||||||||||
Time | 447,884 | 3,873 | 3.43 | 435,439 | 3,187 | 2.90 | 383,013 | 808 | 0.84 | |||||||||||||||||||||
Total interest bearing deposits | 1,499,338 | 9,800 | 2.59 | 1,499,460 | 8,740 | 2.31 | 1,488,483 | 3,382 | 0.90 | |||||||||||||||||||||
Short-term borrowings | 36,836 | 385 | 4.15 | 38,726 | 377 | 3.86 | 12,605 | 13 | 0.40 | |||||||||||||||||||||
Long-term debt and junior subordinated debt | 14,395 | 222 | 6.12 | 14,356 | 215 | 5.94 | 14,858 | 175 | 4.68 | |||||||||||||||||||||
Subordinated notes | 30,838 | 369 | 4.75 | 30,818 | 369 | 4.75 | 30,757 | 369 | 4.76 | |||||||||||||||||||||
Total interest bearing liabilities | 1,581,406 | 10,776 | 2.70 | 1,583,360 | 9,701 | 2.43 | 1,546,703 | 3,939 | 1.01 | |||||||||||||||||||||
Noninterest bearing deposits | 388,589 | 401,734 | 476,347 | |||||||||||||||||||||||||||
Other liabilities | 19,473 | 18,439 | 17,974 | |||||||||||||||||||||||||||
Shareholders' equity | 186,511 | 187,211 | 171,480 | |||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,175,980 | $ | 2,190,744 | $ | 2,212,504 | ||||||||||||||||||||||||
Net interest income (tax equivalent basis) | $ | 19,229 | $ | 19,436 | $ | 21,533 | ||||||||||||||||||||||||
Net interest margin (3) | 3.61 | % | 3.64 | % | 3.98 | % | ||||||||||||||||||||||||
Tax equivalent adjustment | (63 | ) | (64 | ) | (72 | ) | ||||||||||||||||||||||||
Net interest income | $ | 19,166 | $ | 19,372 | $ | 21,461 | ||||||||||||||||||||||||
(1) Average balances include nonaccrual loans. | ||||||||||||||||||||||||||||||
(2) Average balances include bank owned life insurance and foreclosed real estate. | ||||||||||||||||||||||||||||||
(3) Net interest income (tax-equivalent basis) annualized as a percentage of average interest earning assets. | ||||||||||||||||||||||||||||||
ANALYSIS OF NET INTEREST INCOME | ||||||||||||||||||||
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited) | ||||||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||
(Dollars in thousands) | Average Balance | Taxable-Equivalent Interest | Taxable-Equivalent Rate | Average Balance | Taxable-Equivalent Interest | Taxable-Equivalent Rate | ||||||||||||||
Assets | ||||||||||||||||||||
Interest bearing deposits with banks | $ | 35,542 | $ | 1,766 | 4.97 | % | $ | 300,922 | $ | 3,588 | 1.19 | % | ||||||||
Investment securities: | ||||||||||||||||||||
Taxable | 370,774 | 10,314 | 2.78 | 323,011 | 7,499 | 2.32 | ||||||||||||||
Tax-exempt | 22,776 | 506 | 2.22 | 25,545 | 536 | 2.10 | ||||||||||||||
Total investment securities | 393,550 | 10,820 | 2.75 | 348,556 | 8,035 | 2.31 | ||||||||||||||
Loans: | ||||||||||||||||||||
Taxable (1) | 1,654,614 | 100,114 | 6.05 | 1,557,289 | 72,558 | 4.66 | ||||||||||||||
Tax-exempt | 21,988 | 854 | 3.88 | 18,200 | 730 | 4.01 | ||||||||||||||
Total loans | 1,676,602 | 100,968 | 6.02 | 1,575,489 | 73,288 | 4.65 | ||||||||||||||
Total earning assets | 2,105,694 | 113,554 | 5.39 | 2,224,967 | 84,911 | 3.82 | ||||||||||||||
Other assets (2) | 70,027 | 79,891 | ||||||||||||||||||
Total assets | $ | 2,175,721 | $ | 2,304,858 | ||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest bearing demand | $ | 908,860 | 19,532 | 2.15 | % | $ | 975,583 | $ | 4,562 | 0.47 | % | |||||||||
Savings | 148,395 | 45 | 0.03 | 162,701 | 49 | 0.03 | ||||||||||||||
Time | 422,276 | 11,177 | 2.65 | 414,784 | 2,650 | 0.64 | ||||||||||||||
Total interest bearing deposits | 1,479,531 | 30,754 | 2.08 | 1,553,068 | 7,261 | 0.47 | ||||||||||||||
Short-term borrowings | 33,229 | 1,237 | 3.72 | 11,987 | 48 | 0.40 | ||||||||||||||
Long-term debt | 14,489 | 839 | 5.79 | 18,741 | 616 | 3.29 | ||||||||||||||
Subordinated debentures | 30,808 | 1,476 | 4.79 | 30,727 | 1,476 | 4.80 | ||||||||||||||
Total interest bearing liabilities | 1,558,057 | 34,306 | 2.20 | 1,614,523 | 9,401 | 0.58 | ||||||||||||||
Noninterest bearing deposits | 413,126 | 494,969 | ||||||||||||||||||
Other liabilities | 19,186 | 14,073 | ||||||||||||||||||
Shareholders' equity | 185,352 | 181,293 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,175,721 | $ | 2,304,858 | ||||||||||||||||
Net interest income (tax equivalent basis) | $ | 79,248 | $ | 75,510 | ||||||||||||||||
Net interest margin (3) | 3.76 | % | 3.39 | % | ||||||||||||||||
Tax equivalent adjustment | (256 | ) | (258 | ) | ||||||||||||||||
Net interest income | $ | 78,992 | $ | 75,252 | ||||||||||||||||
(1) Average balances include nonaccrual loans. | ||||||||||||||||||||
(2) Average balances include bank owned life insurance and foreclosed real estate. | ||||||||||||||||||||
(3) Net interest income (tax-equivalent basis) annualized as a percentage of average interest earning assets. |
Source:
2024 GlobeNewswire, Inc., source