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Penns Woods Bancorp, Inc. Reports Third Quarter 2021 Earnings
Source: Nasdaq GlobeNewswire / 22 Oct 2021 12:54:27 America/New_York
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 570-322-1111 e-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 RATESThree Months Ended September 30, 2021 September 30, 2020 (Dollars in Thousands) Average
BalanceInterest Average
RateAverage
BalanceInterest Average
RateASSETS: 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
BalanceInterest Average
RateAverage
BalanceInterest Average
RateASSETS: 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 
- 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.