Penns Woods Bancorp, Inc. Reports Third Quarter 2016 Earnings

| Source: Penns Woods Bancorp, Inc. Penns Woods Bancorp, Inc.

WILLIAMSPORT, Pa., Oct. 21, 2016 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ:PWOD)

Penns Woods Bancorp, Inc. continued its solid earnings, supported by loan and deposit growth, achieving net income of $9,529,000 for the nine months ended September 30, 2016 resulting in basic and dilutive earnings per share of $2.01.

Highlights 

  • Net income from core operations (“operating earnings”), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains, was $2,887,000 for the three months ended September 30, 2016 compared to $3,039,000 for the same period of 2015. Operating earnings decreased to $8,719,000 for the nine months ended September 30, 2016 compared to $9,046,000 for the same period of 2015.  The 2015 nine month period included non-recurring gains on the sale of other real estate owned of $175,000 above the 2016 level. Nine month 2016 expenses were negatively impacted by a mass replacement of debit cards to implement EMV card technology to better protect the security of our customers.  The 2016 period also included expenses related to a data breach at a national restaurant chain that impacted our customer base.  In addition, the investment portfolio has declined $61,599,000 from September 30, 2015 to September 30, 2016 as part of our strategy to position the balance sheet for a rising rate environment.

  • Operating earnings per share for the three months ended September 30, 2016 were $0.61 for both basic and dilutive, a decrease from $0.64 for the same period of 2015.  Operating earnings per share for the nine months ended September 30, 2016 were $1.84 basic and dilutive compared to $1.89 basic and dilutive for the same period of 2015.

  • Return on average assets was 0.91% for the three months ended September 30, 2016 compared to 1.04% for the corresponding period of 2015.  Return on average assets was 0.95% for the nine months ended September 30, 2016 compared to 1.06% for the corresponding period of 2015.

  • Return on average equity was 8.69% for the three months ended September 30, 2016 compared to 9.89% for the corresponding period of 2015.  Return on average equity was 9.14% for the nine months ended September 30, 2016 compared to 9.90% for the corresponding period of 2015.

“During 2016 we have maintained our focus on building balance sheet strength by adding quality earning assets and continuing to shift earning assets from the investment portfolio to the loan portfolio.  The quality assets being added are centered on home equity products that are variable rate and provide protection to a rising rate environment.  The shift from investments to loans is being undertaken to reduce interest rate and market risk and to reduce the level of regulatory risk weighted assets which allows for better capital utilization,” said Richard A. Grafmyre, CFP®, President and CEO.

A reconciliation of the non-GAAP financial measures of operating earnings, operating return on assets, operating return on equity, and operating earnings per share, described in the highlights, to the comparable GAAP financial measures is included at the end of this press release.

Net Income

Net income, as reported under GAAP, for the three and nine months ended September 30, 2016 was $3,059,000 and $9,529,000 compared to $3,364,000 and $10,152,000 for the same period of 2015. Results for the three and nine months ended September 30, 2016 compared to 2015 were impacted by a decrease in after-tax securities gains of $153,000 (from a gain of $325,000 to a gain of $172,000) for the three month periods and a decrease in after-tax securities gains of $296,000 (from a gain of $1,106,000 to a gain of $810,000) for the nine month periods. Basic and dilutive earnings per share for the three and nine months ended September 30, 2016 were $0.65 and $2.01 compared to $0.71 and $2.12 for the corresponding periods of 2015.  Return on average assets and return on average equity were 0.91% and 8.69% for the three months ended September 30, 2016 compared to 1.04% and 9.89% for the corresponding period of 2015. Return on average assets and return on average equity were 0.95% and 9.14% for the nine months ended September 30, 2016 compared to 1.06% and 9.90% for the corresponding period of 2015.

Net Interest Margin

The net interest margin for the three and nine months ended September 30, 2016 was 3.37% and 3.45% compared to 3.55% and 3.63% for the corresponding periods of 2015.  The decline in the net interest margin was driven by a decreasing yield on the investment portfolio due to the continued low rate environment that limits the yield that we can acquire into the portfolio and our strategic decision to continue repositioning the portfolio through active management in anticipation of a rising rate environment.  The impact of the declining investment portfolio yield and decreasing investment portfolio balance was partially offset by a 6.77% growth in gross loans from September 30, 2015 to September 30, 2016.  The loan growth was funded by an increase in core deposits and a decrease in the investment portfolio.  Core deposits represent a lower cost funding source than time deposits and comprise 79.60% of total deposits at September 30, 2016 and 78.02% at September 30, 2015. 

Assets

Total assets increased $48,120,000 to $1,347,412,000 at September 30, 2016 compared to September 30, 2015.  Net loans increased $66,598,000 to $1,056,762,000 at September 30, 2016 compared to September 30, 2015 primarily due to campaigns related to increasing home equity product market share during 2015 and 2016, growth in the commercial loan portfolio, and the introduction of indirect auto lending during the third quarter of 2016.  The investment portfolio decreased $61,599,000 from September 30, 2015 to September 30, 2016 due to our strategy to reduce the investment portfolio duration through the selective selling of bonds as opportunities develop.  The combination of loan portfolio growth and a decrease in the size of the investment portfolio has resulted in a shortening of the overall earning asset portfolio duration consistent with a strategy to reduce the interest rate and market risk exposure to a rising rate environment.

Non-performing Loans

The non-performing loans to total loans ratio increased to 1.08% at September 30, 2016 from 0.86% at September 30, 2015. This change was primarily the result of a large commercial real estate loan that was placed on non-accrual status causing non-performing loans to increase to $11,530,000 at September 30, 2016 from $8,608,000 at September 30, 2015. The majority of non-performing loans are centered on several 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 $192,000 for the nine months ended September 30, 2016 minimally impacted the allowance for loan losses which was 1.19% of total loans at September 30, 2016.  The majority of the loans charged-off had a specific allowance within the allowance for loan losses.

Deposits

Deposits increased $83,496,000 to $1,088,297,000 at September 30, 2016 compared to September 30, 2015.  Core deposits (total deposits excluding time deposits) increased $82,335,000 due to our commitment to building complete banking relationships with our customers.  Noninterest-bearing deposits increased $47,751,000 to $295,599,000 at September 30, 2016 compared to September 30, 2015.  Driving this growth is our commitment to easy-to-use products, community involvement, and emphasis on customer service.  While deposit gathering efforts have centered on core deposits, the lengthening of the time deposit portfolio continues to move forward as part of the strategy to build balance sheet protection in a rising rate environment.

Shareholders’ Equity

Shareholders’ equity increased $4,358,000 to $139,935,000 at September 30, 2016 compared to September 30, 2015.  Since September 30, 2015, treasury stock purchases of $727,000 for 18,308 shares were completed as part of the stock repurchase plan.  The change in accumulated other comprehensive loss from $3,100,000 at September 30, 2015 to $2,491,000 at September 30, 2016 is a result of an increase in unrealized gains on available for sale securities from an unrealized gain of $1,418,000 at September 30, 2015 to an unrealized gain of $1,489,000 at September 30, 2016.  The amount of accumulated other comprehensive loss at September 30, 2016 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 a decrease in the net loss of $538,000 to $3,980,000 at September 30, 2016.  The current level of shareholders’ equity equates to a book value per share of $29.56 at September 30, 2016 compared to $28.54 at September 30, 2015 and an equity to asset ratio of 10.39% at September 30, 2016 compared to 10.43% at September 30, 2015.  Excluding goodwill and intangibles, book value per share was $25.55 at September 30, 2016 compared to $24.66 at September 30, 2015.  Dividends declared for each of the three and nine months ended September 30, 2016 and 2015 were $0.47 and $1.41 per share.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates fifteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, and Union Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

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 certain of these 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, 2015.

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.

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

 
PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
 
  September 30,
(In Thousands, Except Share Data) 2016 2015 % Change
ASSETS      
Noninterest-bearing balances $23,487  $17,304  35.73%
Interest-bearing balances in other financial institutions 36,694  951  3,758.46%
Total cash and cash equivalents 60,181  18,255  229.67%
        
Investment securities, available for sale, at fair value 141,057  202,593  (30.37)%
Investment securities, trading —  63  (100.00)%
Loans held for sale 2,160  1,029  109.91%
Loans 1,069,480  1,001,653  6.77%
Allowance for loan losses (12,718) (11,489) 10.70%
Loans, net 1,056,762  990,164  6.73%
Premises and equipment, net 22,985  21,433  7.24%
Accrued interest receivable 3,800  4,093  (7.16)%
Bank-owned life insurance 27,176  26,499  2.55%
Investment in limited partnerships 658  1,064  (38.16)%
Goodwill 17,104  17,104  —%
Intangibles 1,889  1,316  43.54%
Deferred tax asset 7,404  8,618  (14.09)%
Other assets 6,236  7,061  (11.68)%
TOTAL ASSETS $1,347,412  $1,299,292  3.70%
        
LIABILITIES       
Interest-bearing deposits $792,698  $756,953  4.72%
Noninterest-bearing deposits 295,599  247,848  19.27%
Total deposits 1,088,297  1,004,801  8.31%
        
Short-term borrowings 11,579  51,690  (77.60)%
Long-term borrowings 91,025  91,051  (0.03)%
Accrued interest payable 481  460  4.57%
Other liabilities 16,095  15,713  2.43%
TOTAL LIABILITIES 1,207,477  1,163,715  3.76%
        
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; 5,006,601 and 5,004,372 shares issued 41,721  41,702  0.05%
Additional paid-in capital 50,050  49,959  0.18%
Retained earnings 60,889  56,523  7.72%
Accumulated other comprehensive loss:       
Net unrealized gain on available for sale securities 1,489  1,418  5.01%
Defined benefit plan (3,980) (4,518) 11.91%
Treasury stock at cost, 272,452 and 254,144 shares (10,234) (9,507) 7.65%
TOTAL SHAREHOLDERS’ EQUITY 139,935  135,577  3.21%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,347,412  $1,299,292  3.70%
            


PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
 
  Three Months Ended September 30, Nine Months Ended September 30,
(In Thousands, Except Per Share Data) 2016 2015 % Change 2016 2015 % Change
INTEREST AND DIVIDEND INCOME:            
Loans including fees $10,541  $9,862  6.89% $31,362  $28,937  8.38%
Investment securities:                  
Taxable 601  829  (27.50)% 1,825  2,728  (33.10)%
Tax-exempt 329  676  (51.33)% 1,203  2,187  (44.99)%
Dividend and other interest income 189  156  21.15% 666  597  11.56%
TOTAL INTEREST AND DIVIDEND INCOME 11,660  11,523  1.19% 35,056  34,449  1.76%
                       
INTEREST EXPENSE:                      
Deposits 909  800  13.63% 2,624  2,328  12.71%
Short-term borrowings 7  31  (77.42)% 41  78  (47.44)%
Long-term borrowings 497  458  8.52% 1,481  1,476  0.34%
TOTAL INTEREST EXPENSE 1,413  1,289  9.62% 4,146  3,882  6.80%
                       
NET INTEREST INCOME 10,247  10,234  0.13% 30,910  30,567  1.12%
                       
PROVISION FOR LOAN LOSSES 258  520  (50.38)% 866  1,820  (52.42)%
                       
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 9,989  9,714  2.83% 30,044  28,747  4.51%
                       
NON-INTEREST INCOME:                      
Service charges 585  621  (5.80)% 1,678  1,772  (5.30)%
Securities gains, available for sale 253  526  (51.90)% 1,174  1,713  (31.47)%
Securities gains (losses), trading 8  (33) 124.24% 54  (37) 245.95%
Bank-owned life insurance 172  182  (5.49)% 516  541  (4.62)%
Gain on sale of loans 658  524  25.57% 1,691  1,305  29.58%
Insurance commissions 198  185  7.03% 604  623  (3.05)%
Brokerage commissions 290  297  (2.36)% 817  836  (2.27)%
Other 918  835  9.94% 2,723  2,701  0.81%
TOTAL NON-INTEREST INCOME 3,082  3,137  (1.75)% 9,257  9,454  (2.08)%
                       
NON-INTEREST EXPENSE:                      
Salaries and employee benefits 4,507  4,302  4.77% 13,433  13,073  2.75%
Occupancy 544  529  2.84% 1,630  1,721  (5.29)%
Furniture and equipment 662  686  (3.50)% 2,042  1,924  6.13%
Pennsylvania shares tax 220  244  (9.84)% 698  711  (1.83)%
Amortization of investments in limited partnerships 46  165  (72.12)% 266  496  (46.37)%
Federal Deposit Insurance Corporation deposit insurance 202  209  (3.35)% 670  654  2.45%
Marketing 173  160  8.13% 568  434  30.88%
Intangible amortization 90  73  23.29% 276  235  17.45%
Other 2,295  2,162  6.15% 6,882  6,171  11.52%
TOTAL NON-INTEREST EXPENSE 8,739  8,530  2.45% 26,465  25,419  4.12%
INCOME BEFORE INCOME TAX PROVISION 4,332  4,321  0.25% 12,836  12,782  0.42%
INCOME TAX PROVISION 1,273  957  33.02% 3,307  2,630  25.74%
NET INCOME $3,059  $3,364  (9.07)% $9,529  $10,152  (6.14)%
                       
EARNINGS PER SHARE - BASIC AND DILUTED $0.65  $0.71  (8.45)% $2.01  $2.12  (5.19)%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED 4,733,800  4,761,576  (0.58)% 4,735,844  4,780,776  (0.94)%
DIVIDENDS DECLARED PER SHARE $0.47  $0.47  —% $1.41  $1.41  —%
                       


PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES
 
  Three Months Ended
  September 30, 2016 September 30, 2015
(Dollars in Thousands) Average
Balance		 Interest Average
Rate		 Average
Balance		 Interest Average
Rate
ASSETS:            
Tax-exempt loans $45,715  $452  3.93% $43,562  $423  3.85%
All other loans 1,011,393  10,243  4.03% 947,665  9,583  4.01%
Total loans 1,057,108  10,695  4.02% 991,227  10,006  4.00%
                   
Taxable securities 93,893  725  3.09% 125,618  982  3.13%
Tax-exempt securities 49,231  498  4.05% 80,535  1,024  5.09%
Total securities 143,124  1,223  3.42% 206,153  2,006  3.89%
                   
Interest-bearing deposits 48,125  65  0.54% 3,216  3  0.37%
                   
Total interest-earning assets 1,248,357  11,983  3.82% 1,200,596  12,015  3.98%
                   
Other assets 101,312       97,363        
                   
TOTAL ASSETS $1,349,669       $1,297,959        
                   
LIABILITIES AND SHAREHOLDERS’ EQUITY:                  
Savings $151,464  15  0.04% $143,353  14  0.04%
Super Now deposits 184,440  107  0.23% 193,659  126  0.26%
Money market deposits 245,643  170  0.28% 210,029  145  0.27%
Time deposits 223,082  617  1.10% 219,306  515  0.93%
Total interest-bearing deposits 804,629  909  0.45% 766,347  800  0.41%
                   
Short-term borrowings 15,748  7  0.18% 40,801  31  0.30%
Long-term borrowings 91,025  497  2.14% 81,880  458  2.19%
Total borrowings 106,773  504  1.85% 122,681  489  1.56%
                   
Total interest-bearing liabilities 911,402  1,413  0.61% 889,028  1,289  0.57%
                   
Demand deposits 281,586       256,264      
Other liabilities 15,916       16,619      
Shareholders’ equity 140,765       136,048      
               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,349,669       $1,297,959      
Interest rate spread     3.21%     3.41%
Net interest income/margin   $10,570  3.37%   $10,726  3.55%
                   


  Three Months Ended September 30,
  2016 2015
Total interest income $11,660  $11,523 
Total interest expense 1,413  1,289 
Net interest income 10,247  10,234 
Tax equivalent adjustment 323  492 
Net interest income (fully taxable equivalent) $10,570  $10,726 
         


  Nine Months Ended
  September 30, 2016 September 30, 2015
(Dollars in Thousands) Average
Balance		 Interest Average
Rate		 Average
Balance		 Interest Average
Rate
ASSETS:            
Tax-exempt loans $49,204  $1,432  3.89% $39,901  $1,194  4.00%
All other loans 999,685  30,417  4.06% 920,675  28,149  4.09%
Total loans 1,048,889  31,849  4.06% 960,576  29,343  4.08%
                   
Taxable securities 95,652  2,344  3.27% 133,191  3,316  3.32%
Tax-exempt securities 56,291  1,823  4.32% 85,263  3,314  5.18%
Total securities 151,943  4,167  3.66% 218,454  6,630  4.05%
                   
Interest-bearing deposits 38,411  147  0.51% 4,500  9  0.27%
                   
Total interest-earning assets 1,239,243  36,163  3.90% 1,183,530  35,982  4.06%
               
Other assets 99,295       97,151      
               
TOTAL ASSETS $1,338,538       $1,280,681      
               
LIABILITIES AND SHAREHOLDERS’ EQUITY:              
Savings $151,158  43  0.04% $142,812  43  0.04%
Super Now deposits 190,190  356  0.25% 190,653  379  0.27%
Money market deposits 234,918  471  0.27% 208,317  424  0.27%
Time deposits 221,676  1,754  1.06% 218,987  1,482  0.90%
Total interest-bearing deposits 797,942  2,624  0.44% 760,769  2,328  0.41%
                   
Short-term borrowings 20,273  41  0.27% 36,111  78  0.29%
Long-term borrowings 91,025  1,481  2.14% 82,597  1,476  2.36%
Total borrowings 111,298  1,522  1.80% 118,708  1,554  1.73%
                   
Total interest-bearing liabilities 909,240  4,146  0.61% 879,477  3,882  0.59%
               
Demand deposits 274,488       247,130      
Other liabilities 15,775       17,327      
Shareholders’ equity 139,035       136,747      
               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,338,538       $1,280,681      
Interest rate spread     3.29%     3.47%
Net interest income/margin   $32,017  3.45%   $32,100  3.63%
                   


  Nine Months Ended September 30,
  2016 2015
Total interest income $35,056  $34,449 
Total interest expense 4,146  3,882 
Net interest income 30,910  30,567 
Tax equivalent adjustment 1,107  1,533 
Net interest income (fully taxable equivalent) $32,017  $32,100 
         


(Dollars in Thousands, Except Per Share Data) Quarter Ended
  9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/302015
Operating Data          
Net income $3,059  $3,390  $3,078  $3,746  $3,364 
Net interest income 10,247  10,288  10,374  10,338  10,234 
Provision for loan losses 258  258  350  480  520 
Net security gains 261  492  475  894  493 
Non-interest income, excluding net security gains 2,821  2,686  2,522  2,417  2,644 
Non-interest expense 8,739  8,666  9,061  8,317  8,530 
           
Performance Statistics          
Net interest margin 3.37% 3.42% 3.57% 3.55% 3.55%
Annualized return on average assets 0.91% 1.00% 0.94% 1.15% 1.04%
Annualized return on average equity 8.69% 9.77% 8.95% 10.73% 9.89%
Annualized net loan charge-offs (recoveries) to average loans 0.02% 0.05% —% (0.03)% 0.12%
Net charge-offs (recoveries) 57  123  12  (75) 296 
Efficiency ratio 66.2% 66.0% 69.6% 64.6% 65.7%
           
Per Share Data          
Basic earnings per share $0.65  $0.72  $0.65  $0.79  $0.71 
Diluted earnings per share 0.65  0.72  0.65  0.79  0.71 
Dividend declared per share 0.47  0.47  0.47  0.47  0.47 
Book value 29.56  29.45  29.09  28.71  28.54 
Common stock price:          
High 44.75  44.70  41.32  45.28  44.56 
Low 40.34  37.82  36.73  40.47  40.41 
Close 44.46  41.99  38.54  42.46  40.92 
Weighted average common shares:          
Basic 4,734  4,733  4,741  4,747  4,762 
Fully Diluted 4,734  4,733  4,741  4,747  4,762 
End-of-period common shares:          
Issued 5,007  5,006  5,006  5,005  5,004 
Treasury 272  272  272  258  254 
                


(Dollars in Thousands, Except Per Share Data) Quarter Ended
  9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015
Financial Condition Data:          
General          
Total assets $1,347,412  $1,346,482  $1,318,137  $1,320,057  $1,299,292 
Loans, net 1,056,762  1,041,602  1,028,870  1,033,163  990,164 
Goodwill 17,104  17,104  17,104  17,104  17,104 
Intangibles 1,889  1,979  2,078  1,240  1,316 
Total deposits 1,088,297  1,084,867  1,059,581  1,031,880  1,004,801 
Noninterest-bearing 295,599  274,002  269,362  280,083  247,848 
           
Savings 150,822  152,540  153,217  144,561  143,224 
NOW 175,767  190,890  190,168  176,078  188,444 
Money Market 244,138  246,712  226,659  209,782  204,475 
Time Deposits 221,971  220,723  220,175  221,376  220,810 
Total interest-bearing deposits 792,698  810,865  790,219  751,797  756,953 
           
Core deposits* 866,326  864,145  839,406  810,504  783,991 
Shareholders’ equity 139,935  139,394  137,663  136,279  135,577 
           
Asset Quality          
Non-performing loans $11,530  $11,626  $11,648  $9,446  $8,608 
Non-performing loans to total assets 0.86% 0.86% 0.88% 0.72% 0.66%
Allowance for loan losses 12,718  12,517  12,382  12,044  11,489 
Allowance for loan losses to total loans 1.19% 1.19% 1.19% 1.15% 1.15%
Allowance for loan losses to non-performing loans 110.30% 107.66% 106.30% 127.50% 133.47%
Non-performing loans to total loans 1.08% 1.10% 1.12% 0.90% 0.86%
                     
Capitalization                    
Shareholders’ equity to total assets 10.39% 10.35% 10.44% 10.32% 10.43%
                

* Core deposits are defined as total deposits less time deposits

 
Reconciliation of GAAP and Non-GAAP Financial Measures
 
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
(Dollars in Thousands, Except Per Share Data) 2016 2015 2016 2015
GAAP net income $3,059  $3,364  $9,529  $10,152 
Less: net securities gains, net of tax 172  325  810  1,106 
Non-GAAP operating earnings $2,887  $3,039  $8,719  $9,046 
         
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2016 2015 2016 2015
Return on average assets (ROA) 0.91% 1.04% 0.95% 1.06%
Less: net securities gains, net of tax 0.05% 0.10% 0.08% 0.12%
Non-GAAP operating ROA 0.86% 0.94% 0.87% 0.94%
         
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2016 2015 2016 2015
Return on average equity (ROE) 8.69% 9.89% 9.14% 9.90%
Less: net securities gains, net of tax 0.49% 0.95% 0.78% 1.08%
Non-GAAP operating ROE 8.20% 8.94% 8.36% 8.82%
         
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2016 2015 2016 2015
Basic earnings per share (EPS) $0.65  $0.71  $2.01  $2.12 
Less: net securities gains, net of tax 0.04  0.07  0.17  0.23 
Non-GAAP basic operating EPS $0.61  $0.64  $1.84  $1.89 
     
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2016 2015 2016 2015
Dilutive EPS $0.65  $0.71  $2.01  $2.12 
Less: net securities gains, net of tax 0.04  0.07  0.17  0.23 
Non-GAAP dilutive operating EPS $0.61  $0.64  $1.84  $1.89 
                 

 


            








        

            

                

                    
Tags

                            
                                EARNINGS
                            

                



        




    

        

        
Contact Data