Penns Woods Bancorp, Inc. PWOD

NAS: PWOD | ISIN: US7084301032   27/03/2024
19,25 USD (+3,38%)
(+3,38%)   27/03/2024

Penns Woods Bancorp, Inc. Reports Fourth Quarter 2020 Earnings

WILLIAMSPORT, Pa., Jan. 29, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD) -

Penns Woods Bancorp, Inc. achieved net income of $15.2 million for the twelve months ended December 31, 2020, resulting in basic and diluted earnings per share of $2.16.

Highlights

  • Net income, as reported under GAAP, for the three and twelve months ended December 31, 2020 was $3.9 million and $15.2 million, respectively compared to $2.8 million and $15.7 million for the same periods of 2019. Results for the three and twelve months ended December 31, 2020 compared to 2019 were impacted by a decrease in after-tax securities gains of $91,000 (from a gain of $386,000 to a gain of $295,000) for the three month period and an increase in securities gains of $679,000 (from a gain of $591,000 to a gain of $1,270,000) for the twelve month period. Impacting the three and twelve months ended December 31, 2019 was a write down of assets held for sale and a loss on sale of premises and equipment that totaled $949,000.

  • Gain on sale of loans increased $719,000 and $2.4 million, respectfully, for the three and twelve months ended December 31, 2020, to $1.2 million and $4.1 million, respectively, compared to $508,000 and $1.8 million for the 2019 periods. The increase is the result of a significant increase in the number of consumers who are refinancing their mortgage due to the current low interest rate environment.

  • The provision for loan losses decreased $1.1 million and $110,000, respectfully, for the three and twelve months ended December 31, 2020, to $585,000 and $2.6 million, respectively, compared to $1.7 million and $2.7 million for the 2019 periods. The higher provision during the 2019 periods was primarily due to a commercial loan relationship that had become non-performing during the fourth quarter of 2019. The provision during 2020 remained elevated due to the economic uncertainty caused by the COVID-19 pandemic.

  • Basic and diluted earnings per share for the three and twelve months ended December 31, 2020 were $0.55 and $2.16, respectively. Basic earnings per share for the three and twelve months ended December 31, 2019 were $0.40 and $2.23, respectively, with diluted earnings per share of $0.39 and $2.20, respectively.

  • Return on average assets was 0.85% for the three months ended December 31, 2020, compared to 0.68% for the corresponding period of 2019. Return on average assets was 0.85% for the twelve months ended December 31, 2020, compared to 0.94% for the corresponding period of 2019.

  • Return on average equity was 9.55% for the three months ended December 31, 2020, compared to 7.22% for the corresponding period of 2019. Return on average equity was 9.66% for the twelve months ended December 31, 2020, compared to 10.54% for the corresponding period of 2019.

COVID-19 Activity

  • Approximately one third of employees working remotely.

  • As of December 31, 2020, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $8.7 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 December 2020.

  • Total paycheck protection program loans originated to be held on balance sheet at December 31, 2020 total $11.2 million.

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 $3.6 million for the three months ended December 31, 2020 compared to $2.4 million for the same period of 2019. Core earnings were $13.9 million for the twelve months ended December 31, 2020, compared to $15.1 million for the same period of 2019. Core earnings per share for the three months ended December 31, 2020 were $0.51 basic and diluted, compared to $0.35 basic and $0.33 diluted core earnings per share for the same period of 2019. Core earnings per share for the twelve months ended December 31, 2020 were $1.98 basic and diluted, compared to $2.14 basic and $2.12 diluted for the same period of 2019. Core return on average assets and core return on average equity were 0.79% and 8.83% for the three months ended December 31, 2020, compared to 0.59% and 6.23% for the corresponding period of 2019. Core return on average assets and core return on average equity were 0.78% and 8.85% for the twelve months ended December 31, 2020 compared to 0.90% and 10.14% for the corresponding period of 2019. 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 twelve months ended December 31, 2020 was 2.81% and 2.94%, compared to 3.22% and 3.31% for the corresponding periods of 2019. The decrease in the net interest margin was driven by a decrease in the yield of the loan portfolio of 28 and 16 basis points ("bps"), while the investment portfolio yield declined 80 and 65 bps, respectively, for the three and twelve month periods 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 as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing liabilities decreased over the three and twelve months ended December 31, 2020 and these rate decreases have partially offset the decline in earning asset yield.

Assets

Total assets increased $169.3 million to $1.8 billion at December 31, 2020 compared to December 31, 2019.  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 adverse and seeking safety in a bank deposit. Net loans decreased $13.1 million to $1.3 billion at December 31, 2020 compared to December 31, 2019, as the COVID-19 business and travel restrictions 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. The investment portfolio increased $15.5 million from December 31, 2019 to December 31, 2020 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 0.77% at December 31, 2020 from 0.92% at December 31, 2019 as non-performing loans have decreased to $10.3 million at December 31, 2020 from $12.4 million at December 31, 2019 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 $211,000 and $716,000 for the three and twelve months ended December 31, 2020 impacted the allowance for loan losses, which was 1.03% of total loans at December 31, 2020 compared to 0.88% at December 31, 2019.

Deposits

Deposits increased $170.4 million to $1.5 billion at December 31, 2020 compared to December 31, 2019. Noninterest-bearing deposits increased $114.6 million to $449.4 million at December 31, 2020 compared to December 31, 2019.  Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk adverse and seeking safety in a bank deposit. Emphasis during 2020 has been 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.

Shareholders’ Equity

Shareholders’ equity increased $9.2 million to $164.1 million at December 31, 2020 compared to December 31, 2019. The change in accumulated other comprehensive loss from $2.8 million at December 31, 2019 to $882,000 at December 31, 2020 is a result of an increase in unrealized gains on available for sale securities (from an unrealized gain of $2.5 million at December 31, 2019 to an unrealized gain of $4.7 million at December 31, 2020). The amount of accumulated other comprehensive loss at December 31, 2020 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 $364,000. The current level of shareholders’ equity equates to a book value per share of $23.27 at December 31, 2020 compared to $22.01 at December 31, 2019, and an equity to asset ratio of 8.95% at December 31, 2020 compared to 9.31% at December 31, 2019. Dividends declared for the twelve months ended December 31, 2020 and 2019 were $1.28 per share and $1.26 per share, respectively.

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, 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; (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, 2019.

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
   

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

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

  December 31,
(In Thousands, Except Share Data) 2020 2019 % Change
ASSETS:      
Noninterest-bearing balances $31,821   $24,725   28.70 %
Interest-bearing balances in other financial institutions 181,537   23,864   660.71 %
Total cash and cash equivalents 213,358   48,589   339.11 %
       
Investment debt securities, available for sale, at fair value 162,261   148,619   9.18 %
Investment equity securities, at fair value 1,288   1,261   2.14 %
Investment securities, trading 40   51   (21.57)%
Restricted investment in bank stock, at fair value 15,377   13,528   13.67 %
Loans held for sale 5,239   4,232   23.79 %
Loans 1,344,327   1,355,544   (0.83)%
Allowance for loan losses (13,803)  (11,894)  16.05 %
Loans, net 1,330,524   1,343,650   (0.98)%
Premises and equipment, net 32,702   32,929   (0.69)%
Accrued interest receivable 8,394   5,246   60.01 %
Bank-owned life insurance 33,638   29,253   14.99 %
Goodwill 17,104   17,104    %
Intangibles 671   898   (25.28)%
Operating lease right of use asset 3,136   4,154   (24.51)%
Deferred tax asset 2,526   3,338   (24.33)%
Other assets 8,385   12,471   (32.76)%
TOTAL ASSETS $1,834,643   $1,665,323   10.17 %
       
LIABILITIES:      
Interest-bearing deposits $1,045,086   $989,259   5.64 %
Noninterest-bearing deposits 449,357   334,746   34.24 %
Total deposits 1,494,443   1,324,005   12.87 %
       
Short-term borrowings 5,244   4,920   6.59 %
Long-term borrowings 153,475   161,920   (5.22)%
Accrued interest payable 1,112   1,671   (33.45)%
Operating lease liability 3,175   4,170   (23.86)%
Other liabilities 13,048   13,655   (4.45)%
TOTAL LIABILITIES 1,670,497   1,510,341   10.60 %
       
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; 7,532,576 and 7,520,740 shares issued; 7,052,351 and 7,040,515 shares outstanding 41,847   41,782   0.16 %
Additional paid-in capital 52,523   51,487   2.01 %
Retained earnings 82,769   76,583   8.08 %
Accumulated other comprehensive (loss) gain:      
Net unrealized gain on available for sale securities 4,714   2,455   92.02 %
Defined benefit plan (5,596)  (5,232)  (6.96)%
Treasury stock at cost, 480,225 (12,115)  (12,115)   %
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY 164,142   154,960   5.93 %
Non-controlling interest 4   22   (81.82)%
TOTAL SHAREHOLDERS' EQUITY 164,146   154,982   5.91 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,834,643   $1,665,323   10.17 %
               

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

  Three Months Ended December 31, Twelve Months Ended December 31,
(In Thousands, Except Per Share Data) 2020 2019 % Change 2020 2019 % Change
INTEREST AND DIVIDEND INCOME:            
Loans including fees $13,814   $14,789   (6.59)% $57,217   $60,384  (5.24)%
Investment securities:            
Taxable 820   1,098   (25.32)% 3,778   3,997  (5.48)%
Tax-exempt 166   140   18.57 % 650   660  (1.52)%
Dividend and other interest income 246   388   (36.60)% 993   1,733  (42.70)%
TOTAL INTEREST AND DIVIDEND INCOME 15,046   16,415   (8.34)% 62,638   66,774  (6.19)%
             
INTEREST EXPENSE:            
Deposits 2,159   3,107   (30.51)% 10,565   11,443  (7.67)%
Short-term borrowings 6   3   100.00 % 43   793  (94.58)%
Long-term borrowings 914   984   (7.11)% 3,807   3,723  2.26 %
TOTAL INTEREST EXPENSE 3,079   4,094   (24.79)% 14,415   15,959  (9.67)%
             
NET INTEREST INCOME 11,967   12,321   (2.87)% 48,223   50,815  (5.10)%
             
PROVISION FOR LOAN LOSSES 585   1,700   (65.59)% 2,625   2,735  (4.02)%
             
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 11,382   10,621   7.17 % 45,598   48,080  (5.16)%
             
NON-INTEREST INCOME:            
Service charges 441   635   (30.55)% 1,690   2,411  (29.90)%
Debt securities gains, available for sale 372   440   (15.45)% 1,592   640  148.75 %
Equity securities (losses) gains (3)  74   (104.05)% 27   89  (69.66)%
Securities gains (losses), trading 5   (25)  120.00 % (11)  19  (157.89)%
Bank-owned life insurance 161   140   15.00 % 653   574  13.76 %
Gain on sale of loans 1,227   508   141.54 % 4,148   1,754  136.49 %
Insurance commissions 96   87   10.34 % 416   433  (3.93)%
Brokerage commissions 191   326   (41.41)% 970   1,358  (28.57)%
Debit card income 344   346   (0.58)% 1,280   1,378  (7.11)%
Other 241   376   (35.90)% 1,403   1,796  (21.88)%
TOTAL NON-INTEREST INCOME 3,075   2,907   5.78 % 12,168   10,452  16.42 %
             
NON-INTEREST EXPENSE:            
Salaries and employee benefits 5,270   5,317   (0.88)% 21,632   21,829  (0.90)%
Occupancy 723   627   15.31 % 2,650   2,712  (2.29)%
Furniture and equipment 886   827   7.13 % 3,411   3,248  5.02 %
Software amortization 235   242   (2.89)% 978   871  12.28 %
Pennsylvania shares tax 341   285   19.65 % 1,289   1,148  12.28 %
Professional fees 474   640   (25.94)% 2,362   2,474  (4.53)%
Federal Deposit Insurance Corporation deposit insurance 289   97   197.94 % 939   578  62.46 %
Write down of assets held for sale    475   (100.00)%    475  (100.00)%
Loss on sale of premises and equipment    474   (100.00)%    474  (100.00)%
Marketing 91   192   (52.60)% 261   425  (38.59)%
Intangible amortization 53   62   (14.52)% 227   264  (14.02)%
Other 1,278   1,056   21.02 % 5,319   5,210  2.09 %
TOTAL NON-INTEREST EXPENSE 9,640   10,294   (6.35)% 39,068   39,708  (1.61)%
INCOME BEFORE INCOME TAX PROVISION 4,817   3,234   48.95 % 18,698   18,824  (0.67)%
INCOME TAX PROVISION 911   397   129.47 % 3,474   3,138  10.71 %
NET INCOME $3,906   $2,837   37.68 % $15,224   $15,686  (2.95)%
Earnings attributable to noncontrolling interest 5   4   25.00 % 18   14  28.57 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $3,901   $2,833   37.70 % $15,206   $15,672  (2.97)%
EARNINGS PER SHARE - BASIC $0.55   $0.40   37.50 % $2.16   $2.23  (3.14)%
EARNINGS PER SHARE - DILUTED $0.55   $0.39   41.03 % $2.16   $2.20  (1.82)%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 7,050,389   7,039,968   0.15 % 7,044,542   7,038,714  0.08 %
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 7,050,389   7,338,468   (3.93)% 7,044,542   7,113,339  (0.97)%
DIVIDENDS DECLARED PER SHARE $0.32   $0.32    % $1.28   $1.26  1.59 %
                            

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 

  Three Months Ended
  December 31, 2020 December 31, 2019
(Dollars in Thousands) Average
Balance
 Interest Average
Rate
 Average
Balance
 Interest Average
Rate
ASSETS:            
Tax-exempt loans $42,882  $303  2.81% $55,727  $446  3.21%
All other loans 1,304,521  13,575  4.14% 1,306,203  14,437  4.43%
Total loans 1,347,403  13,878  4.10% 1,361,930  14,883  4.38%
             
Taxable securities 140,074  1,048  3.04% 145,273  1,372  3.83%
Tax-exempt securities 33,187  210  2.57% 22,406  177  3.20%
Total securities 173,261  1,258  2.95% 167,679  1,549  3.75%
             
Interest-bearing deposits 183,428  18  0.04% 30,393  207  1.50%
             
Total interest-earning assets 1,704,092  15,154  3.54% 1,560,002  16,639  4.26%
             
Other assets 123,352      108,235     
             
TOTAL ASSETS $1,827,444      $1,668,237     
             
LIABILITIES AND SHAREHOLDERS’ EQUITY:            
Savings $206,563  47  0.09% $172,573  69  0.16%
Super Now deposits 271,600  433  0.63% 216,535  445  0.82%
Money market deposits 277,980  304  0.44% 229,486  535  0.94%
Time deposits 285,281  1,375  1.92% 375,838  2,058  2.20%
Total interest-bearing deposits 1,041,424  2,159  0.82% 994,432  3,107  1.25%
             
Short-term borrowings 11,068  6  0.29% 4,781  3  0.25%
Long-term borrowings 153,506  914  2.50% 162,241  984  2.30%
Total borrowings 164,574  920  2.35% 167,022  987  2.24%
             
Total interest-bearing liabilities 1,205,998  3,079  1.03% 1,161,454  4,094  1.39%
             
Demand deposits 439,841      329,873     
Other liabilities 18,218      19,693     
Shareholders’ equity 163,387      157,217     
             
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,827,444      $1,668,237     
Interest rate spread     2.51%     2.87%
Net interest income/margin   $12,075  2.81%   $12,545  3.22%
                   


  Three Months Ended December 31,
  2020 2019
Total interest income $15,046  $16,415 
Total interest expense 3,079  4,094 
Net interest income 11,967  12,321 
Tax equivalent adjustment 108  224 
Net interest income (fully taxable equivalent) $12,075  $12,545 
         

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 

  Twelve Months Ended
  December 31, 2020 December 31, 2019
(Dollars in Thousands) Average
Balance
 Interest Average
Rate
 Average
Balance
 Interest Average
Rate
ASSETS:            
Tax-exempt loans $45,650  $1,441  3.16% $66,435  $2,038  3.07%
All other loans 1,304,209  56,079  4.30% 1,309,806  58,774  4.49%
Total loans 1,349,859  57,520  4.26% 1,376,241  60,812  4.42%
             
Taxable securities 142,714  4,630  3.30% 134,935  5,306  3.99%
Tax-exempt securities 28,973  823  2.89% 25,702  835  3.29%
Total securities 171,687  5,453  3.23% 160,637  6,141  3.88%
             
Interest-bearing deposits 140,022  141  0.10% 21,161  310  2.00%
             
Total interest-earning assets 1,661,568  63,114  3.80% 1,558,039  67,263  4.33%
             
Other assets 118,536      111,839     
             
TOTAL ASSETS $1,780,104      $1,669,878     
             
LIABILITIES AND SHAREHOLDERS’ EQUITY:            
Savings $193,568  256  0.13% $169,832  216  0.13%
Super Now deposits 254,177  1,755  0.69% 231,816  1,758  0.76%
Money market deposits 245,633  1,529  0.62% 239,317  2,184  0.91%
Time deposits 338,895  7,025  2.07% 345,635  7,285  2.11%
Total interest-bearing deposits 1,032,273  10,565  1.02% 986,600  11,443  1.16%
             
Short-term borrowings 12,660  43  0.34% 34,897  793  2.27%
Long-term borrowings 162,636  3,807  2.34% 155,841  3,723  2.25%
Total borrowings 175,296  3,850  2.20% 190,738  4,516  2.25%
             
Total interest-bearing liabilities 1,207,569  14,415  1.19% 1,177,338  15,959  1.34%
             
Demand deposits 394,210      321,443     
Other liabilities 20,858      22,379     
Shareholders’ equity 157,467      148,718     
             
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,780,104      $1,669,878     
Interest rate spread     2.61%     2.99%
Net interest income/margin   $48,699  2.94%   $51,304  3.31%
                   


  Twelve Months Ended December 31,
  2020 2019
Total interest income $62,638  $66,774 
Total interest expense 14,415  15,959 
Net interest income 48,223  50,815 
Tax equivalent adjustment 476  489 
Net interest income (fully taxable equivalent) $48,699  $51,304 
         


(Dollars in Thousands, Except Per Share Data) Quarter Ended
  12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019
Operating Data          
Net income $3,901  $4,472  $3,760  $3,073  $2,833 
Net interest income 11,967  11,845  12,250  12,161  12,321 
Provision for loan losses 585  645  645  750  1,700 
Net security gains 374  1,011  196  27  489 
Non-interest income, excluding net security gains 2,701  3,024  2,423  2,409  2,418 
Non-interest expense 9,640  9,707  9,611  10,110  10,294 
           
Performance Statistics          
Net interest margin 2.81% 2.76% 3.01% 3.19% 3.22%
Annualized return on average assets 0.85% 0.97% 0.85% 0.74% 0.68%
Annualized return on average equity 9.55% 11.05% 9.60% 7.83% 7.22%
Annualized net loan charge-offs to average loans 0.06% 0.06% 0.05% 0.04% 1.19%
Net charge-offs 211  193  168  144  4,055 
Efficiency ratio 65.36% 64.89% 65.10% 68.96% 69.42%
           
Per Share Data          
Basic earnings per share $0.55  $0.63  $0.53  $0.44  $0.40 
Diluted earnings per share 0.55  0.63  0.53  0.43  0.39 
Dividend declared per share 0.32  0.32  0.32  0.32  0.32 
Book value 23.27  23.05  22.66  22.23  22.01 
Common stock price:          
High 27.30  22.83  27.75  35.36  35.58 
Low 19.61  19.61  20.01  19.05  29.68 
Close 26.01  19.85  22.71  24.30  35.58 
Weighted average common shares:          
Basic 7,050  7,045  7,042  7,041  7,040 
Fully Diluted 7,050  7,045  7,042  7,103  7,338 
End-of-period common shares:          
Issued 7,533  7,528  7,523  7,521  7,521 
Treasury 480  480  480  480  480 
                


(Dollars in Thousands, Except Per Share Data) Quarter Ended
  12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019
Financial Condition Data:          
General          
Total assets $1,834,643  $1,840,779  $1,838,364  $1,688,508  $1,665,323 
Loans, net 1,330,524  1,335,711  1,336,370  1,336,900  1,343,650 
Goodwill 17,104  17,104  17,104  17,104  17,104 
Intangibles 671  724  777  836  898 
Total deposits 1,494,443  1,491,810  1,474,305  1,326,734  1,324,005 
Noninterest-bearing 449,357  434,248  418,324  332,759  334,746 
Savings 209,924  202,781  195,964  183,929  176,732 
NOW 287,775  268,463  268,348  229,919  218,605 
Money Market 283,742  274,480  247,753  204,832  216,038 
Time Deposits 263,645  311,838  343,915  375,295  377,884 
Total interest-bearing deposits 1,045,086  1,057,562  1,055,980  993,975  989,259 
           
Core deposits* 1,230,798  1,179,972  1,130,389  951,439  946,121 
Shareholders’ equity 164,142  162,422  159,578  156,562  154,960 
           
Asset Quality          
Non-performing loans $10,334  $10,553  $11,097  $11,300  $12,421 
Non-performing loans to total assets 0.56% 0.57% 0.60% 0.67% 0.75%
Allowance for loan losses 13,803  13,429  12,977  12,500  11,894 
Allowance for loan losses to total loans 1.03% 1.00% 0.96% 0.93% 0.88%
Allowance for loan losses to non-performing loans 133.57% 127.25% 116.94% 110.62% 95.76%
Non-performing loans to total loans 0.77% 0.78% 0.82% 0.84% 0.92%
           
Capitalization          
Shareholders’ equity to total assets 8.95% 8.82% 8.68% 9.27% 9.31%
                

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

  Three Months Ended December 31, Twelve Months Ended December 31,
(Dollars in Thousands, Except Per Share Data) 2020 2019 2020 2019
GAAP net income $3,901 $2,833 $15,206  $15,672 
Less: net securities gains, net of tax 295 386  1,270   591 
Non-GAAP core earnings $3,606 $2,447 $13,936  $15,081 
         
  Three Months Ended December 31, Twelve Months Ended December 31,
  2020 2019 2020 2019
Return on average assets (ROA) 0.85% 0.68% 0.85% 0.94%
Less: net securities gains, net of tax 0.06% 0.09% 0.07% 0.04%
Non-GAAP core ROA 0.79% 0.59% 0.78% 0.90%
         
  Three Months Ended December 31, Twelve Months Ended December 31,
  2020 2019 2020 2019
Return on average equity (ROE) 9.55% 7.22% 9.66% 10.54%
Less: net securities gains, net of tax 0.72% 0.99% 0.81% 0.40%
Non-GAAP core ROE 8.83% 6.23% 8.85% 10.14%
         
  Three Months Ended December 31, Twelve Months Ended December 31,
  2020 2019 2020 2019
Basic earnings per share (EPS) $0.55  $0.40  $2.16  $2.23 
Less: net securities gains, net of tax 0.04  0.05  0.18  0.09 
Non-GAAP basic core EPS $0.51  $0.35  $1.98  $2.14 
     
  Three Months Ended December 31, Twelve Months Ended December 31,
  2020 2019 2020 2019
Diluted EPS $0.55  $0.39  $2.16  $2.20 
Less: net securities gains, net of tax 0.04  0.06  0.18  0.08 
Non-GAAP diluted core EPS $0.51  $0.33  $1.98  $2.12 
                 

COVID-19 Loan Deferrals as of December 31, 2020

(In Thousands) Amount
Commercial, financial, and agricultural $2,497 
Real estate mortgage:  
Residential 1,626 
Commercial 4,172 
Consumer automobile loans 384 
Other consumer installment loans 36 
Total loan deferrals $8,715 
     

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