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CST: 19/08/2019 01:21:37   

Penns Woods Bancorp, Inc. Reports Second Quarter 2019 Earnings

26 Days ago

WILLIAMSPORT, Pa., July 23, 2019 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc., supported by loan and deposit growth, achieved net income of $8.2 million for the six months ended June 30, 2019, resulting in basic and diluted earnings per share of $1.75.

Highlights

  • Net income, as reported under GAAP, for the three and six months ended June 30, 2019 was $4.2 million and $8.2 million, compared to $3.5 million and  $6.7 million for the same periods of 2018.  Results for the three and six months ended June 30, 2019 compared to 2018 were impacted by an increase in after-tax securities gains of $6,000 (from a gain of $12,000 to a gain of $18,000) for the three month periods and $90,000 (from a loss of $20,000 to a gain of $70,000) for the six month periods.
  • Basic and diluted earnings per share for the three and six months ended June 30, 2019 was $0.91 and $1.75, respectively, an increase in basic and diluted earnings per share of $0.17 and $0.32 as compared to the three and six months ended June 30, 2018.
  • Return on average assets was 1.02% for the three months ended June 30, 2019, compared to 0.91% for the corresponding period of 2018. Return on average assets was 0.99% for the six months ended June 30, 2019, compared to 0.89% for the corresponding period of 2018.
  • Return on average equity was 11.42% for the three months ended June 30, 2019, compared to 10.07% for the corresponding period of 2018. Return on average equity was 11.27% for the six months ended June 30, 2019, compared to 9.68% for the corresponding period of 2018.

Net Income

Net income from core operations (“core earnings”), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains or losses, was $4.2 million for the three months ended June 30, 2019 compared to $3.5 million for the same period of 2018. Core earnings increased to $8.2 million for the six months ended June 30, 2019, compared to $6.7 million for the same period of 2018. Core earnings per share for the three months ended June 30, 2019 was $0.90 basic and diluted, an increase from $0.74 basic and diluted core earnings per share for the same period of 2018. core earnings per share for the six months ended June 30, 2019 was $1.73 basic and diluted, compared to $1.43 basic and diluted for the same period of 2018. Core return on average assets and core return on average equity were 1.01% and 11.37% for the three months ended June 30, 2019, compared to 0.90% and 10.04% for the corresponding period of 2018.  Core return on average assets and core return on average equity were 0.98% and 11.18% for the six months ended June 30, 2019 compared to 0.89% and 9.71% for the corresponding period of 2018. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, and core earnings per share described in this press release to the comparable GAAP financial measures is included at the end of this press release.

Net Interest Margin

The net interest margin for the three and six months ended June 30, 2019 was 3.39% and 3.37%, compared to 3.32% and 3.31% for the corresponding periods of 2018. The increase in the net interest margin was driven by an increase in the yield on earning assets of 40 and 44 basis points ("bps") for the three and six month periods. The impact of the increase in yield on earning assets was limited by the increase in rate paid on interest-bearing liabilities of 42 bps and 45 bps for the three and six month periods. The increase in the yield on earning assets was driven by an increase in the loan portfolio yield in conjunction with an increase in the average loan portfolio of $83.4 million and $103.5 million, respectively. The loan growth for the three and six month periods was primarily funded by an increase in average total deposits of $119.2 million and $108.0 million, respectively.

Assets

Total assets increased $108.2 million to $1.7 billion at June 30, 2019 compared to June 30, 2018.  Net loans increased $47.2 million to $1.4 billion at June 30, 2019 compared to June 30, 2018, primarily due to campaigns related to increasing home equity product market share and indirect auto lending. The investment portfolio increased $24.4 million from June 30, 2018 to June 30, 2019 due to increases in the taxable municipal portfolio.

Non-performing Loans

The ratio of non-performing loans to total loans ratio increased to 1.12% at June 30, 2019 from 0.54% at June 30, 2018 as non-performing loans have increased to $15.4 million at June 30, 2019 from $7.1 million at June 30, 2018 primarily due to a commercial loan relationship that became non-performing during the fourth quarter of 2018. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $106,000 and $511,000 for the three and  six months ended June 30, 2019 minimally impacted the allowance for loan losses, which was 1.02% of total loans at June 30, 2019. The majority of the loans charged-off had a specific allowance within the allowance for loan losses.

Deposits

Deposits increased $136.1 million to $1.3 billion at June 30, 2019 compared to June 30, 2018.  Noninterest-bearing deposits increased $11.6 million to $322.8 million at June 30, 2019 compared to June 30, 2018.  Driving deposit growth is our commitment to easy-to-use products, community involvement, and emphasis on customer service.  Deposit gathering efforts have centered on core deposits as building customer relationships remains the focus.  The time deposit portfolio has increased as time deposits have been used as a customer attraction tool.  This has led to the average maturity of the time deposit portfolio being lengthened.

Shareholders’ Equity

Shareholders’ equity increased $12.4 million to $151.5 million at June 30, 2019 compared to June 30, 2018. The change in accumulated other comprehensive loss from $6.9 million at June 30, 2018 to $2.8 million at June 30, 2019 is a result of an increase in unrealized gains on available for sale securities (from an unrealized loss of $2.1 million at June 30, 2018 to an unrealized gain of $2.4 million at June 30, 2019). The amount of accumulated other comprehensive loss at June 30, 2019 was also impacted by the change in net excess of the projected benefit obligation over the fair value of the plan assets of the defined benefit pension plan, resulting in an increase in the net loss of $349,000. The current level of shareholders’ equity equates to a book value per share of $32.30 at June 30, 2019 compared to $29.66 at June 30, 2018, and an equity to asset ratio of 8.85% at June 30, 2019 compared to 8.68% at June 30, 2018. Dividends declared for the six months ended June 30, 2019 and 2018 were $0.94 per share.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, and Union Counties, and Luzerne Bank, which operates nine branch offices providing financial services in Luzerne County.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.  Insurance products are offered through United Insurance Solutions, LLC, a joint venture that is a subsidiary of the holding company.

NOTE:  This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).  Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses.  Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.

       
Contact:   Richard A. Grafmyre, Chief Executive Officer
    110 Reynolds Street  
    Williamsport, PA 17702  
    570-322-1111 e-mail: pwod@pwod.com


THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT


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

    June 30,
(In Thousands, Except Share Data)   2019   2018   % Change
ASSETS:            
Noninterest-bearing balances   $ 21,102     $ 26,134     (19.25 )%
Interest-bearing balances in other financial institutions   58,423     29,873     95.57 %
Total cash and cash equivalents   79,525     56,007     41.99 %
             
Investment debt securities, available for sale, at fair value   145,689     118,876     22.56 %
Investment equity securities, at fair value   1,841     2,438     (24.49 )%
Investment securities, trading   44     243     (81.89 )%
Restricted investment in bank stock, at fair value   15,087     16,716     (9.75 )%
Loans held for sale   2,880     2,118     35.98 %
Loans   1,379,285     1,331,073     3.62 %
Allowance for loan losses   (14,001 )   (13,034 )   7.42 %
Loans, net   1,365,284     1,318,039     3.58 %
Premises and equipment, net   33,573     27,385     22.60 %
Accrued interest receivable   5,708     4,618     23.60 %
Bank-owned life insurance   28,955     28,315     2.26 %
Goodwill   17,104     17,104     %
Intangibles   1,022     1,304     (21.63 )%
Operating lease right of use asset   4,239         n/a  
Deferred tax asset   3,712     4,941     (24.87 )%
Other assets   6,837     5,169     32.27 %
TOTAL ASSETS   $ 1,711,500     $ 1,603,273     6.75 %
               
LIABILITIES:              
Interest-bearing deposits   $ 1,004,331     $ 879,825     14.15 %
Noninterest-bearing deposits   322,755     311,194     3.72 %
Total deposits   1,327,086     1,191,019     11.42 %
               
Short-term borrowings   59,453     134,637     (55.84 )%
Long-term borrowings   154,597     123,970     24.71 %
Accrued interest payable   1,482     896     65.40 %
Operating lease liability   4,241         n/a  
Other liabilities   13,100     13,616     (3.79 )%
TOTAL LIABILITIES   1,559,959     1,464,138     6.54 %
               
SHAREHOLDERS’ EQUITY:              
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued           n/a  
Common stock, par value $8.33, 15,000,000 shares authorized; 5,012,898 and 5,010,535 shares issued; 4,692,748 and 4,690,385 outstanding   41,773     41,753     0.05 %
Additional paid-in capital   51,087     50,225     1.72 %
Retained earnings   73,565     66,181     11.16 %
Accumulated other comprehensive loss:              
Net unrealized gain (loss) on available for sale securities   2,419     (2,057 )   217.60 %
Defined benefit plan   (5,202 )   (4,853 )   (7.19 )%
Treasury stock at cost, 320,150   (12,115 )   (12,115 )   %
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY   151,527     139,134     8.91 %
Non-controlling interest   14     1     1,300.00 %
TOTAL SHAREHOLDERS' EQUITY   151,541     139,135     8.92 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 1,711,500     $ 1,603,273     6.75 %


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

    Three Months Ended June 30,   Six Months Ended June 30,
(In Thousands, Except Per Share Data)   2019   2018   % Change   2019   2018   % Change
INTEREST AND DIVIDEND INCOME:                        
Loans including fees.   $ 15,300     $ 12,997     17.72 %   $ 30,169     $ 25,190     19.77 %
Investment securities:                            
Taxable   967     639     51.33 %   1,901     1,185     60.42 %
Tax-exempt   179     230     (22.17 )%   353     471     (25.05 )%
Dividend and other interest income   395     245     61.22 %   852     466     82.83 %
TOTAL INTEREST AND DIVIDEND INCOME   16,841     14,111     19.35 %   33,275     27,312     21.83 %
                             
INTEREST EXPENSE:                            
Deposits   2,871     1,490     92.68 %   5,171     2,712     90.67 %
Short-term borrowings   178     252     (29.37 )%   783     476     64.50 %
Long-term borrowings   879     666     31.98 %   1,730     1,268     36.44 %
TOTAL INTEREST EXPENSE   3,928     2,408     63.12 %   7,684     4,456     72.44 %
                             
NET INTEREST INCOME   12,913     11,703     10.34 %   25,591     22,856     11.97 %
                             
PROVISION FOR LOAN LOSSES   315     335     (5.97 )%   675     495     36.36 %
                             
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   12,598     11,368     10.82 %   24,916     22,361     11.43 %
                             
NON-INTEREST INCOME:                            
Service charges   592     592     %   1,154     1,143     0.96 %
Debt securities (losses) gains, available for sale   (2 )   14     (114.29 )%   11     5     120.00 %
Equity securities gains (losses)   22     6     266.67 %   65     (28 )   332.14 %
Securities gains (losses), trading   3     (5 )   160.00 %   13     (2 )   750.00 %
Bank-owned life insurance   123     158     (22.15 )%   291     331     (12.08 )%
Gain on sale of loans   347     400     (13.25 )%   663     655     1.22 %
Insurance commissions   119     64     85.94 %   253     181     39.78 %
Brokerage commissions   356     330     7.88 %   679     673     0.89 %
Debit card income   389     373     4.29 %   699     706     (0.99 )%
Other   520     430     20.93 %   895     779     14.89 %
TOTAL NON-INTEREST INCOME   2,469     2,362     4.53 %   4,723     4,443     6.30 %
                             
NON-INTEREST EXPENSE:                            
Salaries and employee benefits   5,523     4,919     12.28 %   11,024     9,967     10.60 %
Occupancy   668     699     (4.43 )%   1,447     1,440     0.49 %
Furniture and equipment   784     801     (2.12 )%   1,536     1,548     (0.78 )%
Software amortization   188     231     (18.61 )%   395     296     33.45 %
Pennsylvania shares tax   285     278     2.52 %   578     555     4.14 %
Professional Fees   727     649     12.02 %   1,249     1,215     2.80 %
Federal Deposit Insurance Corporation deposit insurance   236     200     18.00 %   504     402     25.37 %
Marketing   33     268     (87.69 )%   135     519     (73.99 )%
Intangible amortization   69     78     (11.54 )%   140     158     (11.39 )%
Other   1,546     1,394     10.90 %   2,865     2,694     6.35 %
TOTAL NON-INTEREST EXPENSE   10,059     9,517     5.70 %   19,873     18,794     5.74 %
INCOME BEFORE INCOME TAX PROVISION   5,008     4,213     18.87 %   9,766     8,010     21.92 %
INCOME TAX PROVISION   759     733     3.55 %   1,571     1,322     18.84 %
NET INCOME   $ 4,249     $ 3,480     22.10 %   $ 8,195     $ 6,688     22.53 %
Earnings attributable to noncontrolling interest   4         n/a     6     (1 )   700.00 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'   $ 4,245     $ 3,480     21.98 %   $ 8,189     $ 6,689     22.42 %
EARNINGS PER SHARE - BASIC   $ 0.91     $ 0.74     22.97 %   $ 1.75     $ 1.43     22.38 %
EARNINGS PER SHARE - DILUTED   $ 0.91     $ 0.74     22.97 %   $ 1.75     $ 1.43     22.38 %
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC   4,692,335     4,689,932     0.05 %   4,692,045     4,689,656     0.05 %
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED   4,692,335     4,703,339     (0.23 )%   4,692,045     4,689,656     0.05 %
DIVIDENDS DECLARED PER SHARE   $ 0.47     $ 0.47     %   $ 0.47     $ 0.47     %


    Three Months Ended
    June 30, 2019   June 30, 2018
(Dollars in Thousands)   Average
Balance
  Interest   Average
Rate
  Average
Balance
  Interest   Average
Rate
ASSETS:                        
Tax-exempt loans   $ 71,193     $ 548     3.09 %   $ 75,859     $ 563     2.98 %
All other loans   1,313,388     14,867     4.54 %   1,225,343     12,552     4.11 %
Total loans   1,384,581     15,415     4.47 %   1,301,202     13,115     4.04 %
                             
Taxable securities   130,802     1,300     4.03 %   93,024     871     3.75 %
Tax-exempt securities   27,971     227     3.29 %   40,300     291     2.89 %
Total securities   158,773     1,527     3.90 %   133,324     1,162     3.49 %
                             
Interest-bearing deposits   10,431     62     2.38 %   3,034     13     1.72 %
                             
Total interest-earning assets   1,553,785     17,004     4.39 %   1,437,560     14,290     3.99 %
                             
Other assets   113,443               97,034            
                             
TOTAL ASSETS   $ 1,667,228               $ 1,534,594            
                             
LIABILITIES AND SHAREHOLDERS’ EQUITY:                            
Savings   $ 170,142     51     0.12 %   $ 165,231     16     0.04 %
Super Now deposits   246,454     453     0.74 %   234,731     242     0.41 %
Money market deposits   249,169     596     0.96 %   243,771     290     0.48 %
Time deposits   335,721     1,771     2.12 %   253,398     942     1.49 %
Total interest-bearing deposits   1,001,486     2,871     1.15 %   897,131     1,490     0.67 %
                             
Short-term borrowings   32,086     178     2.23 %   56,530     252     1.76 %
Long-term borrowings   147,571     879     2.24 %   123,970     666     2.12 %
Total borrowings   179,657     1,057     2.23 %   180,500     918     2.01 %
                             
Total interest-bearing liabilities   1,181,143     3,928     1.31 %   1,077,631     2,408     0.89 %
                             
Demand deposits   317,623               302,742            
Other liabilities   19,747               16,024            
Shareholders’ equity   148,715               138,197            
                           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 1,667,228             $ 1,534,594            
Interest rate spread           3.08 %           3.10 %
Net interest income/margin       $ 13,076     3.39 %       $ 11,882     3.32 %


    Three Months Ended June 30,
    2019   2018
Total interest income   $ 16,841     $ 14,111  
Total interest expense   3,928     2,408  
Net interest income   12,913     11,703  
Tax equivalent adjustment   163     179  
Net interest income (fully taxable equivalent)   $ 13,076     $ 11,882  


PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

    Six Months Ended
    June 30, 2019   June 30, 2018
(Dollars in Thousands)   Average
Balance
  Interest   Average
Rate
  Average
Balance
  Interest   Average
Rate
ASSETS:                        
Tax-exempt loans   $ 71,874     $ 1,087     3.05 %   $ 75,548     $ 1,130     3.02 %
All other loans   1,313,121     29,310     4.50 %   1,205,945     24,297     4.06 %
Total loans   1,384,995     30,397     4.43 %   1,281,493     25,427     4.00 %
                             
Taxable securities   128,431     2,650     4.18 %   88,670     1,630     3.68 %
Tax-exempt securities   27,344     447     3.31 %   41,225     596     2.89 %
Total securities   155,775     3,097     4.03 %   129,895     2,226     3.43 %
                             
Interest-bearing deposits   8,493     103     2.45 %   2,603     21     1.63 %
                             
Total interest-earning assets   1,549,263     33,597     4.38 %   1,413,991     27,674     3.94 %
                             
Other assets   112,806               97,318            
                             
TOTAL ASSETS   $ 1,662,069               $ 1,511,309            
                             
LIABILITIES AND SHAREHOLDERS’ EQUITY:                            
Savings   $ 168,543     81     0.10 %   $ 164,140     32     0.04 %
Super Now deposits   239,022     832     0.70 %   230,930     449     0.39 %
Money market deposits   245,307     1,068     0.88 %   240,127     500     0.42 %
Time deposits   317,782     3,190     2.02 %   244,805     1,731     1.43 %
Total interest-bearing deposits   970,654     5,171     1.07 %   880,002     2,712     0.62 %
                             
Short-term borrowings   63,881     783     2.47 %   59,152     476     1.60 %
Long-term borrowings   145,890     1,730     2.24 %   119,274     1,268     2.11 %
Total borrowings   209,771     2,513     2.31 %   178,426     1,744     1.94 %
                             
Total interest-bearing liabilities   1,180,425     7,684     1.29 %   1,058,428     4,456     0.84 %
                             
Demand deposits   315,380               298,011            
Other liabilities   20,953               16,645            
Shareholders’ equity   145,311               138,225            
                             
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 1,662,069               $ 1,511,309            
Interest rate spread           3.09 %           3.00 %
Net interest income/margin       $ 25,913     3.37 %       $ 23,218     3.31 %


    Six Months Ended June 30,
    2019   2018
Total interest income   $ 33,275     $ 27,312  
Total interest expense   7,684     4,456  
Net interest income   25,591     22,856  
Tax equivalent adjustment   322     362  
Net interest income (fully taxable equivalent)   $ 25,913     $ 23,218  


(Dollars in Thousands, Except Per Share Data)   Quarter Ended
    6/30/2019   3/31/2019   12/31/2018   9/30/2018   6/30/2018
Operating Data                    
Net income   $ 4,245     $ 3,944     $ 4,189     $ 3,826     $ 3,480  
Net interest income   12,913     12,678     12,699     12,255     11,703  
Provision for loan losses   315     360     760     480     335  
Net security gains (losses)   23     66     (165 )   (24 )   15  
Non-interest income, ex. net security gains (losses)   2,446     2,188     2,594     2,613     2,347  
Non-interest expense   10,059     9,814     9,532     9,681     9,517  
                     
Performance Statistics                    
Net interest margin   3.39 %   3.37 %   3.33 %   3.30 %   3.32 %
Annualized return on average assets   1.02 %   0.95 %   1.02 %   0.96 %   0.91 %
Annualized return on average equity   11.42 %   10.93 %   11.77 %   10.94 %   10.07 %
Annualized net loan charge-offs to average loans   0.03 %   0.12 %   0.08 %   0.05 %   0.04 %
Net charge-offs   106     405     266     171     137  
Efficiency ratio   65.0 %   65.5 %   61.9 %   64.6 %   67.2 %
                     
Per Share Data                    
Basic earnings per share   $ 0.91     $ 0.84     $ 0.89     $ 0.82     $ 0.74  
Diluted earnings per share   0.91     0.84     0.89     0.82     0.74  
Dividend declared per share   0.47     0.47     0.47     0.47     0.47  
Book value   32.30     31.33     30.59     29.96     29.66  
Common stock price:                    
High   45.25     44.50     44.18     46.27     46.92  
Low   39.04     34.84     38.66     43.22     41.29  
Close   45.25     41.10     40.24     43.45     44.78  
Weighted average common shares:                    
Basic   4,692     4,692     4,691     4,691     4,690  
Fully Diluted   4,692     4,692     4,691     4,691     4,703  
End-of-period common shares:                    
Issued   5,012     5,012     5,012     5,011     5,011  
Treasury   320     320     320     320     320  


(Dollars in Thousands, Except Per Share Data)   Quarter Ended
    6/30/2019   3/31/2019   12/31/2018   9/30/2018   6/30/2018
Financial Condition Data:                    
General                    
Total assets   $ 1,711,500     $ 1,704,708     $ 1,684,771     $ 1,670,348     $ 1,603,273  
Loans, net   1,365,284     1,370,678     1,370,920     1,355,762     1,318,039  
Goodwill   17,104     17,104     17,104     17,104     17,104  
Intangibles   1,022     1,091     1,162     1,233     1,304  
Total deposits   1,327,086     1,309,061     1,219,903     1,210,477     1,191,019  
Noninterest-bearing   322,755     321,657     320,814     313,111     311,194  
Savings   171,992     170,005     166,063     164,449     166,183  
NOW   238,410     253,475     207,819     223,963     216,109  
Money Market   238,352     244,753     238,596     238,131     245,081  
Time Deposits   355,577     319,171     286,611     270,823     252,452  
Total interest-bearing deposits   1,004,331     987,404     899,089     897,366     879,825  
                     
Core deposits*   971,509     989,890     933,292     939,654     938,567  
Shareholders’ equity   151,527     147,026     143,536     140,538     139,134  
                     
Asset Quality                    
Non-performing loans   $ 15,386     $ 15,794     $ 16,572     $ 8,739     $ 7,132  
Non-performing loans to total assets   0.90 %   0.93 %   0.98 %   0.52 %   0.44 %
Allowance for loan losses   14,001     13,792     13,837     13,343     13,034  
Allowance for loan losses to total loans   1.02 %   1.00 %   1.00 %   0.97 %   0.98 %
Allowance for loan losses to non-performing loans   91.00 %   87.32 %   83.50 %   152.68 %   182.75 %
Non-performing loans to total loans   1.12 %   1.14 %   1.20 %   0.64 %   0.54 %
                                         
Capitalization                                        
Shareholders’ equity to total assets   8.85 %   8.62 %   8.52 %   8.41 %   8.68 %

* Core deposits are defined as total deposits less time deposits


Reconciliation of GAAP and Non-GAAP Financial Measures

    Three Months Ended June 30,   Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data)   2019   2018   2019   2018
GAAP net income   $ 4,245     $ 3,480     $ 8,189     $ 6,689  
Less: net securities gains (losses), net of tax   18     12     70     (20 )
Non-GAAP core earnings   $ 4,227     $ 3,468     $ 8,119     $ 6,709  
                 
    Three Months Ended June 30,   Six Months Ended June 30,
    2019   2018   2019   2018
Return on average assets (ROA)   1.02 %   0.91 %   0.99 %   0.89 %
Less: net securities gains (losses), net of tax   0.01 %   0.01 %   0.01 %   %
Non-GAAP core ROA   1.01 %   0.90 %   0.98 %   0.89 %
                 
    Three Months Ended June 30,   Six Months Ended June 30,
    2019   2018   2019   2018
Return on average equity (ROE)   11.42 %   10.07 %   11.27 %   9.68 %
Less: net securities gains (losses), net of tax   0.05 %   0.03 %   0.09 %   (0.03 )%
Non-GAAP core ROE   11.37 %   10.04 %   11.18 %   9.71 %
                 
    Three Months Ended June 30,   Six Months Ended June 30,
    2019   2018   2019   2018
Basic earnings per share (EPS)   $ 0.91     $ 0.74     $ 1.75     $ 1.43  
Less: net securities gains (losses), net of tax   0.01         0.02      
Non-GAAP basic core EPS   $ 0.90     $ 0.74     $ 1.73     $ 1.43  
         
    Three Months Ended June 30,   Six Months Ended June 30,
    2019   2018   2019   2018
Diluted EPS   $ 0.91     $ 0.74     $ 1.75     $ 1.43  
Less: net securities gains (losses), net of tax   0.01         0.02      
Non-GAAP diluted core EPS   $ 0.90     $ 0.74     $ 1.73     $ 1.43  

 

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