Penns Woods Bancorp, Inc. Reports Third Quarter 2021 Earnings

Williamsport, Pennsylvania, UNITED STATES


WILLIAMSPORT, Pa., Oct. 22, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $11.2 million for the nine months ended September 30, 2021, resulting in basic and diluted earnings per share of $1.58.

Highlights

  • Net income, as reported under GAAP, for the three and nine months ended September 30, 2021 was $4.1 million and $11.2 million, respectively, compared to $4.5 million and $11.3 million for the same periods of 2020. Results for the three and nine months ended September 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $767,000 (from a gain of $799,000 to a gain of $32,000) for the three month period and a decrease in after-tax securities gains of $739,000 (from a gain of $975,000 to a gain of $236,000) for the nine month period.

  • The provision for loan losses decreased $570,000 and $1.1 million, respectively, for the three and nine months ended September 30, 2021, to $75,000 and $940,000 compared to $645,000 and $2.0 million for the 2020 periods. The provision for loan losses was elevated in 2020 due primarily to the uncertainty caused by the COVID-19 pandemic.

  • Basic and diluted earnings per share for the three and nine months ended September 30, 2021 were $0.58 and $1.58, respectively. Basic and diluted earnings per share for the three and nine months ended September 30, 2020 were $0.63 and $1.61, respectively.

  • Return on average assets was 0.86% for three months ended September 30, 2021, compared to 0.97% for the corresponding period of 2020. Return on average assets was 0.79% for the nine months ended September 30, 2021, compared to 0.85% for the corresponding period of 2020.

  • Return on average equity was 9.85% for the three months ended September 30, 2021, compared to 11.05% for the corresponding period of 2020. Return on average equity was 9.17% for the nine months ended September 30, 2021, compared to 9.57% for the corresponding period of 2020.

COVID-19 Activity

  • Approximately one third of employees working remotely.

  • As of September 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $1.3 million in loan principal remaining in deferral.

  • All COVID-19 related loan deferrals meet the requirements to not be considered a troubled debt restructuring.

  • Participated in the Paycheck Protection Program ("PPP") by primarily utilizing third parties to service and place the loans.

  • Significantly reduced deposit rates during the latter half of March 2020 continuing through September 2021.

  • Total paycheck protection program loans originated to be held on balance sheet totaled $30.6 million with $10.6 million remaining on the balance sheet at September 30, 2021.

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 $4.1 million for the three months ended September 30, 2021 compared to $3.7 million for the same period of 2020. Core earnings were $10.9 million for the nine months ended September 30, 2021, compared to $10.3 million for the same period of 2020. Core earnings per share for the three months ended September 30, 2021 were $0.58 basic and diluted, compared to $0.52 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the nine months ended September 30, 2021 were $1.55 basic and diluted, compared to $1.47 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.86% and 9.78% for the three months ended September 30, 2021, compared to 0.79% and 9.08% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.77% and 8.98% for the nine months ended September 30, 2021 compared to 0.78% and 8.75% for the corresponding period of 2020. 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 nine months ended September 30, 2021 was 2.85% and 2.84%, compared to 2.76% and 2.97% for the corresponding period of 2020. The increase in the net interest margin for the nine month period was driven by a decrease in the yield of the loan portfolio of 19 and 32 basis points ("bps"), while the investment portfolio yield declined 51 and 59 bps, respectively, during the current low interest rate environment. Further compressing the net interest margin was the significant increase of interest-bearing deposits. These deposits carry a current yield of a few basis points and have increased in average balance as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing deposit liabilities decreased 48 and 53 bps as rates paid were decreased significantly during 2020 due to the economic impact of COVID-19 prolonging the low interest rate environment. These deposit rate decreases have partially offset the decline in earning asset yield.

Assets

Total assets increased $70.0 million to $1.9 billion at September 30, 2021 compared to September 30, 2020.  Cash and cash equivalents increased significantly due to deposit growth resulting from the various economic recovery programs instituted at the state and federal levels that impacted both commercial and retail customers, coupled with customers becoming more risk averse and seeking safety in a bank deposit. Net loans decreased $3.0 million to $1.3 billion at September 30, 2021 compared to September 30, 2020, as the COVID-19 business and travel restrictions and supply chain interruptions curtailed various lending activities such as indirect auto, home equity, and commercial. Lending activity began to rebound as business and travel restrictions were lessened during the second half of 2020 and continues to rebound in 2021. The investment portfolio increased $16.7 million from September 30, 2020 to September 30, 2021 as a portion of the excess cash liquidity was invested into short-term municipal bonds.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.58% at September 30, 2021 from 0.78% at September 30, 2020 as non-performing loans have decreased to $7.8 million at September 30, 2021 from $10.6 million at September 30, 2020, primarily due to a commercial loan relationship that was paid-off during the fourth quarter of 2020. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $186,000 for the nine months ended September 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at September 30, 2021 compared to 1.00% at September 30, 2020.

Deposits

Deposits increased $101.2 million to $1.6 billion at September 30, 2021 compared to September 30, 2020. Noninterest-bearing deposits increased $47.6 million to $481.9 million at September 30, 2021 compared to September 30, 2020.  Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk averse and seeking safety in a bank deposit. Emphasis remains on increasing the utilization of electronic (internet and mobile) deposit banking among our customers. Utilization of internet and mobile banking has increased since the start of 2020 due to these efforts coupled with a change in consumer behavior due to the business and travel restrictions caused by the COVID-19 pandemic. The increased level of deposits has allowed for a decrease in short and long-term borrowings.

Shareholders’ Equity

Shareholders’ equity increased $6.1 million to $168.5 million at September 30, 2021 compared to September 30, 2020.  Accumulated other comprehensive loss of $2.0 million at September 30, 2021 increased from a loss of $678,000 at September 30, 2020 primarily as a result of a decrease of $936,000 in the net unrealized gain on available for sale securities. The current level of shareholders’ equity equates to a book value per share of $23.84 at September 30, 2021 compared to $23.05 at September 30, 2020, and an equity to asset ratio of 8.82% at September 30, 2021 and September 30, 2020. Dividends declared for the nine months ended September 30, 2021 and 2020 were $0.96 per share..

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates eighteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products.  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 these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; or (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

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
 570-322-1111e-mail: pwod@pwod.com
   
   

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

  September 30,
(In Thousands, Except Share Data) 2021 2020 % Change
ASSETS:      
Noninterest-bearing balances $35,523   $34,987   1.53 %
Interest-bearing balances in other financial institutions 206,124   191,285   7.76 %
Federal funds sold 40,000      n/a
Total cash and cash equivalents 281,647   226,272   24.47 %
       
Investment debt securities, available for sale, at fair value 166,760   149,675   11.41 %
Investment equity securities, at fair value 1,263   1,291   (2.17)%
Investment securities, trading 40   35   14.29 %
Restricted investment in bank stock, at fair value 14,649   15,006   (2.38)%
Loans held for sale 3,246   6,647   (51.17)%
Loans 1,347,225   1,349,140   (0.14)%
Allowance for loan losses (14,557)  (13,429)  8.40 %
Loans, net 1,332,668   1,335,711   (0.23)%
Premises and equipment, net 34,434   32,886   4.71 %
Accrued interest receivable 8,529   8,540   (0.13)%
Bank-owned life insurance 33,836   33,474   1.08 %
Investment in limited partnerships 5,014   2,524   98.65 %
Goodwill 17,104   17,104    %
Intangibles 524   724   (27.62)%
Operating lease right of use asset 2,899   3,184   (8.95)%
Deferred tax asset 4,049   3,409   18.77 %
Other assets 4,129   4,297   (3.91)%
TOTAL ASSETS $1,910,791   $1,840,779   3.80 %
       
LIABILITIES:      
Interest-bearing deposits $1,111,144   $1,057,562   5.07 %
Noninterest-bearing deposits 481,875   434,248   10.97 %
Total deposits 1,593,019   1,491,810   6.78 %
       
Short-term borrowings 9,404   15,009   (37.34)%
Long-term borrowings 126,007   153,534   (17.93)%
Accrued interest payable 828   1,491   (44.47)%
Operating lease liability 2,947   3,219   (8.45)%
Other liabilities 10,105   13,287   (23.95)%
TOTAL LIABILITIES 1,742,310   1,678,350   3.81 %
       
SHAREHOLDERS’ EQUITY:      
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued       n/a
Common stock, par value $5.55, 22,500,000 shares authorized; 7,545,922 and 7,527,605 shares issued; 7,065,697 and 7,047,380 shares outstanding 41,921   41,820   0.24 %
Additional paid-in capital 53,508   52,268   2.37 %
Retained earnings 87,146   81,127   7.42 %
Accumulated other comprehensive gain (loss):      
Net unrealized gain on available for sale securities 3,504   4,440   (21.08)%
Defined benefit plan (5,486)  (5,118)  7.19 %
Treasury stock at cost, 480,225 (12,115)  (12,115)   %
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY 168,478   162,422   3.73 %
Non-controlling interest 3   7   (57.14)%
TOTAL SHAREHOLDERS' EQUITY 168,481   162,429   3.73 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,910,791   $1,840,779   3.80 %
               

   
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) 2021 2020 % Change 2021 2020 % Change
INTEREST AND DIVIDEND INCOME:            
Loans including fees $13,382   $14,080   (4.96)% $39,826   $43,403   (8.24)%
Investment securities:            
Taxable 834   925   (9.84)% 2,491   2,958   (15.79)%
Tax-exempt 160   170   (5.88)% 495   484   2.27 %
Dividend and other interest income 338   212   59.43 % 903   747   20.88 %
TOTAL INTEREST AND DIVIDEND INCOME 14,714   15,387   (4.37)% 43,715   47,592   (8.15)%
             
INTEREST EXPENSE:            
Deposits 1,308   2,569   (49.09)% 4,481   8,406   (46.69)%
Short-term borrowings 3   8   (62.50)% 7   37   (81.08)%
Long-term borrowings 771   965   (20.10)% 2,430   2,893   (16.00)%
TOTAL INTEREST EXPENSE 2,082   3,542   (41.22)% 6,918   11,336   (38.97)%
             
NET INTEREST INCOME 12,632   11,845   6.64 % 36,797   36,256   1.49 %
             
PROVISION FOR LOAN LOSSES 75   645   (88.37)% 940   2,040   (53.92)%
             
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 12,557   11,200   12.12 % 35,857   34,216   4.80 %
             
NON-INTEREST INCOME:            
Service charges 456   388   17.53 % 1,218   1,249   (2.48)%
Debt securities gains, available for sale 48   1,013   (95.26)% 323   1,220   (73.52)%
Equity securities (losses) gains (6)     n/a (25)  30   (183.33)%
Securities (losses) gains, trading (2)  (2)   % 1   (16)  106.25 %
Bank-owned life insurance 279   156   78.85 % 614   492   24.80 %
Gain on sale of loans 456   1,449   (68.53)%.2,034   2,921   (30.37)%
Insurance commissions 129   101   27.72 % 436   320   36.25 %
Brokerage commissions 237   224   5.80 % 663   779   (14.89)%
Debit card income 388   352   10.23 % 1,166   936   24.57 %
Other 966   354   172.88 % 2,044   1,162   75.90 %
TOTAL NON-INTEREST INCOME 2,951   4,035   (26.86)% 8,474   9,093   (6.81)%
             
NON-INTEREST EXPENSE:            
Salaries and employee benefits 5,837   5,465   6.81 % 17,107   16,362   4.55 %
Occupancy 745   599   24.37 % 2,438   1,927   26.52 %
Furniture and equipment 883   837   5.50 % 2,663   2,525   5.47 %
Software amortization 226   257   (12.06)% 632   743   (14.94)%
Pennsylvania shares tax 373   340   9.71 % 1,097   948   15.72 %
Professional fees 615   608   1.15 % 1,882   1,888   (0.32)%
Federal Deposit Insurance Corporation deposit insurance 220   271   (18.82)% 705   650   8.46 %
Marketing 231   61   278.69 % 434   170   155.29 %
Intangible amortization 44   53   (16.98)% 147   174   (15.52)%
Other 1,273   1,216   4.69 % 3,541   4,041   (12.37)%
TOTAL NON-INTEREST EXPENSE 10,447   9,707   7.62 % 30,646   29,428   4.14 %
INCOME BEFORE INCOME TAX PROVISION 5,061   5,528   (8.45)% 13,685   13,881   (1.41)%
INCOME TAX PROVISION 932   1,051   (11.32)% 2,516   2,563   (1.83)%
NET INCOME $4,129   $4,477   (7.77)% $11,169   $11,318   (1.32)%
Earnings attributable to noncontrolling interest 4   5   (20.00)% 15   13   15.38 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $4,125   $4,472   (7.76)% $11,154   $11,305   (1.34)%
EARNINGS PER SHARE - BASIC $0.58   $0.63   (7.94)% $1.58   $1.61   (1.86)%
EARNINGS PER SHARE - DILUTED $0.58   $0.63   (7.94)% $1.58   $1.61   (1.86)%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 7,063,994   7,045,336   0.26 % 7,059,625   7,042,578   0.24 %
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 7,063,994   7,045,336   0.26 % 7,059,625   7,042,578   0.24 %
DIVIDENDS DECLARED PER SHARE $0.32   $0.32    % $0.96   $0.96    %
                             

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 

  Three Months Ended
  September 30, 2021 September 30, 2020
(Dollars in Thousands) Average 
Balance
 Interest Average 
Rate
 Average 
Balance
 Interest Average 
Rate
ASSETS:            
Tax-exempt loans $46,193  $307  2.64% $42,047  $386  3.65%
All other loans 1,296,790  13,139  4.02% 1,313,474  13,775  4.17%
Total loans 1,342,983  13,446  3.97% 1,355,521  14,161  4.16%
             
Federal funds sold 40,000  72  0.71%     %
             
Taxable securities 150,308  1,022  2.76% 140,695  1,116  3.23%
Tax-exempt securities 37,069  203  2.22% 30,587  216  2.87%
Total securities 187,377  1,225  2.65% 171,282  1,332  3.16%
             
Interest-bearing deposits 205,715  78  0.15% 203,817  21  0.04%
             
Total interest-earning assets 1,776,075  14,821  3.32% 1,730,620  15,514  3.57%
             
Other assets 132,820      121,901     
             
TOTAL ASSETS $1,908,895      $1,852,521     
             
LIABILITIES AND SHAREHOLDERS’ EQUITY:            
Savings $228,255  22  0.04% $199,420  51  0.10%
Super Now deposits 308,591  219  0.28% 273,190  489  0.71%
Money market deposits 306,177  238  0.31% 263,926  330  0.50%
Time deposits 248,649  829  1.32% 329,190  1,699  2.05%
Total interest-bearing deposits 1,091,672  1,308  0.48% 1,065,726  2,569  0.96%
             
Short-term borrowings 8,696  3  0.14% 17,517  8  0.18%
Long-term borrowings 133,536  771  2.29% 165,064  965  2.33%
Total borrowings 142,232  774  2.16% 182,581  973  2.12%
             
Total interest-bearing liabilities 1,233,904  2,082  0.67% 1,248,307  3,542  1.13%
             
Demand deposits 490,500      424,753     
Other liabilities 17,027      17,644     
Shareholders’ equity 167,464      161,817     
             
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,908,895      $1,852,521     
Interest rate spread     2.65%     2.44%
Net interest income/margin   $12,739  2.85%   $11,972  2.76%
                   


  Three Months Ended September 30,
  2021 2020
Total interest income $14,714  $15,387 
Total interest expense 2,082  3,542 
Net interest income 12,632  11,845 
Tax equivalent adjustment 107  127 
Net interest income (fully taxable equivalent) $12,739  $11,972 
         


  Nine Months Ended
  September 30, 2021 September 30, 2020
(Dollars in Thousands) Average 
Balance
 Interest Average 
Rate
 Average 
Balance
 Interest Average 
Rate
ASSETS:            
Tax-exempt loans $46,217  $991  2.87% $46,476  $1,138  3.27%
All other loans 1,292,028  39,043  4.04% 1,304,207  42,504  4.35%
Total loans 1,338,245  40,034  4.00% 1,350,683  43,642  4.32%
             
Federal funds sold 21,993  117  0.71%     %
             
Taxable securities 147,942  3,105  2.84% 143,601  3,582  3.38%
Tax-exempt securities 36,638  627  2.31% 27,558  613  3.02%
Total securities 184,580  3,732  2.73% 171,159  4,195  3.32%
             
Interest-bearing deposits 206,895  172  0.11% 125,447  123  0.13%
             
Total interest-earning assets 1,751,713  44,055  3.37% 1,647,289  47,960  3.89%
             
Other assets 128,567      116,868     
             
TOTAL ASSETS $1,880,280      $1,764,157     
             
LIABILITIES AND SHAREHOLDERS’ EQUITY:            
Savings $222,889  94  0.06% $189,205  209  0.15%
Super Now deposits 294,570  694  0.31% 248,327  1,322  0.71%
Money market deposits 307,309  761  0.33% 234,772  1,225  0.70%
Time deposits 253,130  2,932  1.55% 356,897  5,650  2.11%
Total interest-bearing deposits 1,077,898  4,481  0.56% 1,029,201  8,406  1.09%
             
Short-term borrowings 7,152  7  0.13% 13,195  37  0.37%
Long-term borrowings 138,669  2,430  2.34% 165,702  2,893  2.33%
Total borrowings 145,821  2,437  2.23% 178,897  2,930  2.19%
             
Total interest-bearing liabilities 1,223,719  6,918  0.76% 1,208,098  11,336  1.25%
             
Demand deposits 473,088      378,889     
Other liabilities 21,327      19,682     
Shareholders’ equity 162,146      157,488     
             
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,880,280      $1,764,157     
Interest rate spread     2.61%     2.64%
Net interest income/margin   $37,137  2.84%   $36,624  2.97%
                   


  Nine Months Ended September 30,
  2021 2020
Total interest income $43,715  $47,592 
Total interest expense 6,918  11,336 
Net interest income 36,797  36,256 
Tax equivalent adjustment 340  368 
Net interest income (fully taxable equivalent) $37,137  $36,624 
         


(Dollars in Thousands, Except Per Share Data) Quarter Ended
  9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
Operating Data          
Net income $4,125   $3,588  $3,441  $3,901  $4,472 
Net interest income 12,632   12,095  12,070  11,967  11,845 
Provision for loan losses 75   350  515  585  645 
Net security gains 40   140  119  374  1,011 
Non-interest income, excluding net security gains 2,911   2,769  2,495  2,701  3,024 
Non-interest expense 10,447   10,248  9,951  9,640  9,707 
           
Performance Statistics          
Net interest margin 2.85 % 2.78% 2.88% 2.81% 2.76%
Annualized return on average assets 0.86 % 0.76% 0.75% 0.85% 0.97%
Annualized return on average equity 9.85 % 8.70% 8.59% 9.55% 11.05%
Annualized net loan charge-offs (recoveries) to average loans (0.01)% 0.03% 0.04% 0.06% 0.06%
Net charge-offs (recoveries) (44)  114  116  211  193 
Efficiency ratio 66.93 % 68.61% 67.96% 65.36% 64.89%
           
Per Share Data          
Basic earnings per share $0.58   $0.51  $0.49  $0.55  $0.63 
Diluted earnings per share 0.58   0.51  0.49  0.55  0.63 
Dividend declared per share 0.32   0.32  0.32  0.32  0.32 
Book value 23.84   23.63  23.25  23.27  23.05 
Common stock price:  21.12    21.12       
High 24.42   26.51  27.78  27.30  22.83 
Low 22.78   23.03  20.55  19.61  19.61 
Close 23.92   23.82  24.09  26.01  19.85 
Weighted average common shares:          
Basic 7,064   7,060  7,055  7,050  7,045 
Fully Diluted 7,064   7,060  7,055  7,050  7,045 
End-of-period common shares:          
Issued 7,546   7,542  7,537  7,533  7,528 
Treasury 480   480  480  480  480 
           


(Dollars in Thousands, Except Per Share Data) Quarter Ended
  9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
Financial Condition Data:          
General          
Total assets $1,910,791  $1,894,870  $1,896,192  $1,834,643  $1,840,779 
Loans, net 1,332,668  1,323,509  1,321,697  1,330,524  1,335,711 
Goodwill 17,104  17,104  17,104  17,104  17,104 
Intangibles 524  568  618  671  724 
Total deposits 1,593,019  1,563,696  1,564,364  1,494,443  1,491,810 
Noninterest-bearing 481,875  477,344  478,916  449,357  434,248 
Savings 231,189  226,573  224,890  209,924  202,781 
NOW 340,441  296,450  290,355  287,775  268,463 
Money Market 305,156  301,405  324,207  283,742  274,480 
Time Deposits 234,358  261,924  245,996  263,645  311,838 
Total interest-bearing deposits 1,111,144  1,086,352  1,085,448  1,045,086  1,057,562 
           
Core deposits* 1,358,661  1,301,772  1,318,368  1,230,798  1,179,972 
Shareholders’ equity 168,478  166,830  164,059  164,142  162,422 
           
Asset Quality          
Non-performing loans $7,763  $7,931  $9,272  $10,334  $10,553 
Non-performing loans to total assets 0.41% 0.42% 0.49% 0.56% 0.57%
Allowance for loan losses 14,557  14,438  14,202  13,803  13,429 
Allowance for loan losses to total loans 1.08% 1.08% 1.06% 1.03% 1.00%
Allowance for loan losses to non-performing loans 187.52% 182.05% 153.17% 133.57% 127.25%
Non-performing loans to total loans 0.58% 0.59% 0.69% 0.77% 0.78%
           
Capitalization          
Shareholders’ equity to total assets 8.82% 8.80% 8.65% 8.95% 8.82%

* 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) 2021 2020 2021 2020
GAAP net income $4,125 $4,472 $11,154 $11,305
Less: net securities gains, net of tax 32 799 236 975
Non-GAAP core earnings $4,093 $3,673 $10,918 $10,330
         
  Three Months Ended September 30, Nine Months Ended September 30,
  2021 2020 2021 2020
Return on average assets (ROA) 0.86% 0.97% 0.79% 0.85%
Less: net securities gains, net of tax % 0.18% 0.02% 0.07%
Non-GAAP core ROA 0.86% 0.79% 0.77% 0.78%
         
  Three Months Ended September 30, Nine Months Ended September 30,
  2021 2020 2021 2020
Return on average equity (ROE) 9.85% 11.05% 9.17% 9.57%
Less: net securities gains, net of tax 0.07% 1.97% 0.19% 0.82%
Non-GAAP core ROE 9.78% 9.08% 8.98% 8.75%
         
  Three Months Ended September 30, Nine Months Ended September 30,
  2021 2020 2021 2020
Basic earnings per share (EPS) $0.58  $0.63  $1.58  $1.61 
Less: net securities gains, net of tax   0.11  0.03  0.14 
Non-GAAP basic core EPS $0.58  $0.52  $1.55  $1.47 
     
  Three Months Ended September 30, Nine Months Ended September 30,
  2021 2020 2021 2020
Diluted EPS $0.58  $0.63  $1.58  $1.61 
Less: net securities gains, net of tax   0.11  0.03  0.14 
Non-GAAP diluted core EPS $0.58  $0.52  $1.55  $1.47 
                 

COVID-19 Loan Deferrals as of September 30, 2021

(In Thousands) Amount
Commercial, financial, and agricultural $ 
Real estate mortgage:  
Residential 1,066 
Commercial 271 
Consumer automobile loans  
Other consumer installment loans 9 
Total loan deferrals $1,346