• Penns Woods Bancorp, Inc. Reports Fourth Quarter 2021 Earnings

    Source: Nasdaq GlobeNewswire / 26 Jan 2022 11:32:24   America/New_York

    WILLIAMSPORT, Pa., Jan. 26, 2022 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

    Penns Woods Bancorp, Inc. achieved net income of $16.0 million for the twelve months ended December 31, 2021, resulting in basic and diluted earnings per share of $2.27.

    Highlights

    • Net income, as reported under GAAP, for the three and twelve months ended December 31, 2021 was $4.9 million and $16.0 million, respectively, compared to $3.9 million and $15.2 million for the same periods of 2020. Results for the three and twelve months ended December 31, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $11,000 (from a gain of $295,000 to a gain of $284,000) for the three month period and a decrease in after-tax securities gains of $749,000 (from a gain of $1.3 million to a gain of $521,000) for the twelve month period.

    • The provision for loan losses decreased $885,000 and $2.0 million, respectively, for the three and twelve months ended December 31, 2021, to ($300,000) and $640,000 compared to $585,000 and $2.6 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 twelve months ended December 31, 2021 were $0.69 and $2.27, respectively. Basic and diluted earnings per share for the three and twelve months ended December 31, 2020 were $0.55 and $2.16, respectively.

    • Return on average assets was 1.02% for three months ended December 31, 2021, compared to 0.85% for the corresponding period of 2020. Return on average assets was 0.85% for the twelve months ended December 31, 2021, compared to 0.85% for the corresponding period of 2020.

    • Return on average equity was 11.59% for the three months ended December 31, 2021, compared to 9.55% for the corresponding period of 2020. Return on average equity was 9.93% for the twelve months ended December 31, 2021, compared to 9.66% for the corresponding period of 2020.

    COVID-19 Activity

    • Approximately one third of employees working remotely.

    • As of December 31, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $379,000 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 2021.

    • Total paycheck protection program loans originated to be held on balance sheet totaled $30.6 million with $4.0 million remaining on the balance sheet at December 31, 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 $4.6 million for the three months ended December 31, 2021 compared to $3.6 million for the same period of 2020. Core earnings were $15.5 million for the twelve months ended December 31, 2021, compared to $13.9 million for the same period of 2020. Core earnings per share for the three months ended December 31, 2021 were $0.65 basic and diluted, compared to $0.51 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the twelve months ended December 31, 2021 were $2.20 basic and diluted, compared to $1.98 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.96% and 10.92% for the three months ended December 31, 2021, compared to 0.79% and 8.83% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.82% and 9.61% for the twelve months ended December 31, 2021 compared to 0.78% and 8.85% 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 twelve months ended December 31, 2021 was 2.90% and 2.85%, compared to 2.81% and 2.94% for the corresponding period of 2020. The increase in the net interest margin for the three month period and decrease for the twelve month period was driven by a decrease in the yield of the loan portfolio of 19 and 28 basis points ("bps"), while the investment portfolio yield declined 38 and 54 bps, respectively, during the current low interest rate environment. Offsetting the decline in yield on the earning asset portfolio was a decline in rate paid on interest-bearing deposits of 44 and 51 bps for the three and twelve month periods as rates paid were decreased significantly during 2020 and 2021 due to the economic impact of COVID-19 prolonging the low interest rate environment.

    Assets

    Total assets increased $106.2 million to $1.9 billion at December 31, 2021 compared to December 31, 2020.  Cash and cash equivalents increased significantly as federal funds sold increased $50 million 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 increased $47.4 million to $1.4 billion at December 31, 2021 compared to December 31, 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 continued to rebound in 2021 in particular the fourth quarter. The investment portfolio increased $3.3 million from December 31, 2020 to December 31, 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 0.45% at December 31, 2021 from 0.77% at December 31, 2020 as non-performing loans have decreased to $6.3 million at December 31, 2021 from $10.3 million at December 31, 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 $267,000 for the twelve months ended December 31, 2021 impacted the allowance for loan losses, which was 1.02% of total loans at December 31, 2021 compared to 1.03% at December 31, 2020.

    Deposits

    Deposits increased $126.9 million to $1.6 billion at December 31, 2021 compared to December 31, 2020. Noninterest-bearing deposits increased $45.0 million to $494.4 million at December 31, 2021 compared to December 31, 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 long-term borrowings.

    Shareholders’ Equity

    Shareholders’ equity increased $8.1 million to $172.3 million at December 31, 2021 compared to December 31, 2020.  Accumulated other comprehensive loss of $1.1 million at December 31, 2021 increased from a loss of $882,000 at December 31, 2020 as a result of a decrease of $2.3 million in the net unrealized gain on available for sale securities and a change in the defined benefit plan of $2.1 million. The current level of shareholders’ equity equates to a book value per share of $24.37 at December 31, 2021 compared to $23.27 at December 31, 2020, and an equity to asset ratio of 8.88% at December 31, 2021 and 8.95% at December 31, 2020. Dividends declared for the twelve months ended December 31, 2021 and 2020 were $1.28 per share.

    Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, 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)

      December 31,
    (In Thousands, Except Share Data)  2021   2020  % Change
    ASSETS:      
    Noninterest-bearing balances $19,233  $31,821  (39.56)%
    Interest-bearing balances in other financial institutions  194,629   181,537  7.21%
    Federal funds sold  50,000   —  n/a
    Total cash and cash equivalents  263,862   213,358  23.67%
           
    Investment debt securities, available for sale, at fair value  166,410   162,261  2.56%
    Investment equity securities, at fair value  1,251   1,288  (2.87)%
    Investment securities, trading  37   40  (7.50)%
    Restricted investment in bank stock, at fair value  14,531   15,377  (5.50)%
    Loans held for sale  3,725   5,239  (28.90)%
    Loans  1,392,147   1,344,327  3.56%
    Allowance for loan losses  (14,176)  (13,803) 2.70%
    Loans, net  1,377,971   1,330,524  3.57%
    Premises and equipment, net  34,025   32,702  4.05%
    Accrued interest receivable  8,048   8,394  (4.12)%
    Bank-owned life insurance  33,768   33,638  0.39%
    Investment in limited partnerships  4,607   3,944  16.81%
    Goodwill  17,104   17,104  —%
    Intangibles  480   671  (28.46)%
    Operating lease right of use asset  2,851   3,136  (9.09)%
    Deferred tax asset  2,946   2,526  16.63%
    Other assets  9,193   4,441  107.00%
    TOTAL ASSETS $1,940,809  $1,834,643  5.79%
           
    LIABILITIES:      
    Interest-bearing deposits $1,126,955  $1,045,086  7.83%
    Noninterest-bearing deposits  494,360   449,357  10.01%
    Total deposits  1,621,315   1,494,443  8.49%
           
    Short-term borrowings  5,747   5,244  9.59%
    Long-term borrowings  125,963   153,475  (17.93)%
    Accrued interest payable  651   1,112  (41.46)%
    Operating lease liability  2,898   3,175  (8.72)%
    Other liabilities  11,961   13,048  (8.33)%
    TOTAL LIABILITIES  1,768,535   1,670,497  5.87%
           
    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; 7,550,272 and 7,532,576 shares issued; 7,070,047 and 7,052,351 shares outstanding  41,945   41,847  0.23%
    Additional paid-in capital  53,795   52,523  2.42%
    Retained earnings  89,761   82,769  8.45%
    Accumulated other comprehensive gain (loss):      
    Net unrealized gain on available for sale securities  2,373   4,714  (49.66)%
    Defined benefit plan  (3,485)  (5,596) (37.72)%
    Treasury stock at cost, 480,225  (12,115)  (12,115) —%
    TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY  172,274   164,142  4.95%
    Non-controlling interest  —   4  (100.00)%
    TOTAL SHAREHOLDERS' EQUITY  172,274   164,146  4.95%
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,940,809  $1,834,643  5.79%
               

       
    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)  2021   2020  % Change  2021   2020  % Change
    INTEREST AND DIVIDEND INCOME:            
    Loans including fees $13,406  $13,814  (2.95)% $53,232  $57,217  (6.96)%
    Investment securities:            
    Taxable  790   820  (3.66)%  3,281   3,778  (13.16)%
    Tax-exempt  160   166  (3.61)%  655   650  0.77%
    Dividend and other interest income  343   246  39.43%  1,246   993  25.48%
    TOTAL INTEREST AND DIVIDEND INCOME  14,699   15,046  (2.31)%  58,414   62,638  (6.74)%
                 
    INTEREST EXPENSE:            
    Deposits  1,064   2,159  (50.72)%  5,545   10,565  (47.52)%
    Short-term borrowings  2   6  (66.67)%  9   43  (79.07)%
    Long-term borrowings  712   914  (22.10)%  3,142   3,807  (17.47)%
    TOTAL INTEREST EXPENSE  1,778   3,079  (42.25)%  8,696   14,415  (39.67)%
                 
    NET INTEREST INCOME  12,921   11,967  7.97%  49,718   48,223  3.10%
                 
    PROVISION FOR LOAN LOSSES  (300)  585  (151.28)%  640   2,625  (75.62)%
                 
    NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES  13,221   11,382  16.16%  49,078   45,598  7.63%
                 
    NON-INTEREST INCOME:            
    Service charges  485   441  9.98%  1,703   1,690  0.77%
    Debt securities gains, available for sale  376   372  1.08%  699   1,592  (56.09)%
    Equity securities (losses) gains  (12)  (3) (300.00)%  (37)  27  (237.04)%
    Securities (losses) gains, trading  (4)  5  (180.00)%  (3)  (11) 72.73%
    Bank-owned life insurance  302   161  87.58%  916   653  40.28%
    Gain on sale of loans  440   1,227  (64.14)%. 2,474   4,148  (40.36)%
    Insurance commissions  117   96  21.88%  553   416  32.93%
    Brokerage commissions  188   191  (1.57)%  851   970  (12.27)%
    Debit card income  345   344  0.29%  1,511   1,280  18.05%
    Other  958   241  297.51%  3,002   1,403  113.97%
    TOTAL NON-INTEREST INCOME  3,195   3,075  3.90%  11,669   12,168  (4.10)%
                 
    NON-INTEREST EXPENSE:            
    Salaries and employee benefits  5,907   5,270  12.09%  23,014   21,632  6.39%
    Occupancy  771   723  6.64%  3,209   2,650  21.09%
    Furniture and equipment  859   886  (3.05)%  3,522   3,411  3.25%
    Software amortization  236   235  0.43%  868   978  (11.25)%
    Pennsylvania shares tax  253   341  (25.81)%  1,350   1,289  4.73%
    Professional fees  550   474  16.03%  2,432   2,362  2.96%
    Federal Deposit Insurance Corporation deposit insurance  258   289  (10.73)%  963   939  2.56%
    Marketing  111   91  21.98%  545   261  108.81%
    Intangible amortization  44   53  (16.98)%  191   227  (15.86)%
    Other  1,270   1,278  (0.63)%  4,811   5,319  (9.55)%
    TOTAL NON-INTEREST EXPENSE  10,259   9,640  6.42%  40,905   39,068  4.70%
    INCOME BEFORE INCOME TAX PROVISION  6,157   4,817  27.82%  19,842   18,698  6.12%
    INCOME TAX PROVISION  1,278   911  40.29%  3,794   3,474  9.21%
    NET INCOME $4,879  $3,906  24.91% $16,048  $15,224  5.41%
    Earnings attributable to noncontrolling interest  —   5  (100.00)%  15   18  (16.67)%
    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $4,879  $3,901  25.07% $16,033  $15,206  5.44%
    EARNINGS PER SHARE - BASIC $0.69  $0.55  25.45% $2.27  $2.16  5.09%
    EARNINGS PER SHARE - DILUTED $0.69  $0.55  25.45% $2.27  $2.16  5.09%
    WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC  7,068,327   7,050,389  0.25%  7,061,818   7,044,542  0.25%
    WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED  7,068,327   7,050,389  0.25%  7,061,818   7,044,542  0.25%
    DIVIDENDS DECLARED PER SHARE $0.32  $0.32  —% $1.28  $1.28  —%
                           

    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 
    (UNAUDITED)

      Three Months Ended
      December 31, 2021 December 31, 2020
    (Dollars in Thousands) Average 
    Balance    		 Interest Average 
    Rate    		 Average 
    Balance    		 Interest Average 
    Rate
    ASSETS:            
    Tax-exempt loans $46,583 $317 2.70% $42,882 $303 2.81%
    All other loans  1,320,972  13,156 3.95%  1,304,521  13,575 4.14%
    Total loans  1,367,555  13,473 3.91%  1,347,403  13,878 4.10%
                 
    Federal funds sold  47,391  85 0.71%  —  — —%
                 
    Taxable securities  148,434  978 2.67%  140,074  1,048 3.04%
    Tax-exempt securities  38,043  202 2.15%  33,187  210 2.57%
    Total securities  186,477  1,180 2.57%  173,261  1,258 2.95%
                 
    Interest-bearing deposits  184,591  70 0.15%  183,428  18 0.04%
                 
    Total interest-earning assets  1,786,014  14,808 3.30%  1,704,092  15,154 3.54%
                 
    Other assets  130,859      123,352    
                 
    TOTAL ASSETS $1,916,873     $1,827,444    
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY:            
    Savings $233,791  22 0.04% $206,563  47 0.09%
    Super Now deposits  345,653  206 0.24%  271,600  433 0.63%
    Money market deposits  301,651  211 0.28%  277,980  304 0.44%
    Time deposits  218,260  625 1.14%  285,281  1,375 1.92%
    Total interest-bearing deposits  1,099,355  1,064 0.38%  1,041,424  2,159 0.82%
                 
    Short-term borrowings  7,255  2 0.11%  11,068  6 0.29%
    Long-term borrowings  125,991  712 2.25%  153,506  914 2.50%
    Total borrowings  133,246  714 2.13%  164,574  920 2.35%
                 
    Total interest-bearing liabilities  1,232,601  1,778 0.57%  1,205,998  3,079 1.03%
                 
    Demand deposits  496,478      439,841    
    Other liabilities  19,463      18,218    
    Shareholders’ equity  168,331      163,387    
                 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,916,873     $1,827,444    
    Interest rate spread     2.73%     2.51%
    Net interest income/margin   $13,030 2.90%   $12,075 2.81%
                     


      Three Months Ended December 31,
       2021  2020
    Total interest income $14,699 $15,046
    Total interest expense  1,778  3,079
    Net interest income  12,921  11,967
    Tax equivalent adjustment  109  108
    Net interest income (fully taxable equivalent) $13,030 $12,075
           

    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 
    (UNAUDITED)

      Twelve Months Ended
      December 31, 2021 December 31, 2020
    (Dollars in Thousands) Average 
    Balance    		 Interest Average 
    Rate    		 Average 
    Balance    		 Interest Average 
    Rate
    ASSETS:            
    Tax-exempt loans $46,312 $1,308 2.82% $45,650 $1,441 3.16%
    All other loans  1,299,321  52,199 4.02%  1,304,209  56,079 4.30%
    Total loans  1,345,633  53,507 3.98%  1,349,859  57,520 4.26%
                 
    Federal funds sold  28,395  202 0.71%  —  — —%
                 
    Taxable securities  148,066  4,083 2.80%  142,714  4,630 3.30%
    Tax-exempt securities  36,993  829 2.27%  28,973  823 2.89%
    Total securities  185,059  4,912 2.69%  171,687  5,453 3.23%
                 
    Interest-bearing deposits  201,273  242 0.12%  140,022  141 0.10%
                 
    Total interest-earning assets  1,760,360  58,863 3.35%  1,661,568  63,114 3.80%
                 
    Other assets  129,582      118,536    
                 
    TOTAL ASSETS $1,889,942     $1,780,104    
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY:            
    Savings $225,637  116 0.05% $193,568  256 0.13%
    Super Now deposits  307,446  900 0.29%  254,177  1,755 0.69%
    Money market deposits  305,883  972 0.32%  245,633  1,529 0.62%
    Time deposits  244,341  3,557 1.46%  338,895  7,025 2.07%
    Total interest-bearing deposits  1,083,307  5,545 0.51%  1,032,273  10,565 1.02%
                 
    Short-term borrowings  7,178  9 0.13%  12,660  43 0.34%
    Long-term borrowings  135,474  3,142 2.32%  162,636  3,807 2.34%
    Total borrowings  142,652  3,151 2.21%  175,296  3,850 2.20%
                 
    Total interest-bearing liabilities  1,225,959  8,696 0.71%  1,207,569  14,415 1.19%
                 
    Demand deposits  478,984      394,210    
    Other liabilities  23,568      20,858    
    Shareholders’ equity  161,431      157,467    
                 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,889,942     $1,780,104    
    Interest rate spread     2.64%     2.61%
    Net interest income/margin   $50,167 2.85%   $48,699 2.94%
                     


      Twelve Months Ended December 31,
       2021  2020
    Total interest income $58,414 $62,638
    Total interest expense  8,696  14,415
    Net interest income  49,718  48,223
    Tax equivalent adjustment  449  476
    Net interest income (fully taxable equivalent) $50,167 $48,699
           


    (Dollars in Thousands, Except Per Share Data, Unaudited) Quarter Ended
      12/31/2021
    		 9/30/2021
    		 6/30/2021
    		 3/31/2021
    		 12/31/2020
    Operating Data                    
    Net income         $4,879  $4,125  $3,588  $3,441  $3,901 
    Net interest income          12,921   12,632   12,095   12,070   11,967 
    Provision for loan losses          (300)  75   350   515   585 
    Net security gains  360   40   140   119   374 
    Non-interest income, excluding net security gains  2,835   2,911   2,769   2,495   2,701 
    Non-interest expense  10,259   10,447   10,248   9,951   9,640 
               
    Performance Statistics          
    Net interest margin  2.90%  2.85%  2.78%  2.88%  2.81%
    Annualized return on average assets  1.02%  0.86%  0.76%  0.75%  0.85%
    Annualized return on average equity  11.59%  9.85%  8.70%  8.59%  9.55%
    Annualized net loan charge-offs (recoveries) to average loans  0.02%  (0.01)%  0.03%  0.04%  0.06%
    Net charge-offs (recoveries)  81   (44)  114   116   211 
    Efficiency ratio  64.83%  66.93%  68.61%  67.96%  65.36%
               
    Per Share Data          
    Basic earnings per share $0.69  $0.58  $0.51  $0.49  $0.55 
    Diluted earnings per share  0.69   0.58   0.51   0.49   0.55 
    Dividend declared per share  0.32   0.32   0.32   0.32   0.32 
    Book value  24.37   23.84   23.63   23.25   23.27 
    Common stock price:          
    High  24.65   24.42   26.51   27.78   27.30 
    Low  23.50   22.78   23.03   20.55   19.61 
    Close  23.65   23.92   23.82   24.09   26.01 
    Weighted average common shares:          
    Basic  7,068   7,064   7,060   7,055   7,050 
    Fully Diluted  7,068   7,064   7,060   7,055   7,050 
    End-of-period common shares:          
    Issued  7,550   7,546   7,542   7,537   7,533 
    Treasury  480   480   480   480   480 
               


    (Dollars in Thousands, Except Per Share Data, Unautdited) Quarter Ended
      12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
    Financial Condition Data:          
    General          
    Total assets $1,940,809  $1,910,791  $1,894,870  $1,896,192  $1,834,643 
    Loans, net  1,377,971   1,332,668   1,323,509   1,321,697   1,330,524 
    Goodwill  17,104   17,104   17,104   17,104   17,104 
    Intangibles  480   524   568   618   671 
    Total deposits  1,621,315   1,593,019   1,563,696   1,564,364   1,494,443 
    Noninterest-bearing  494,360   481,875   477,344   478,916   449,357 
    Savings  236,312   231,189   226,573   224,890   209,924 
    NOW  366,399   340,441   296,450   290,355   287,775 
    Money Market  318,877   305,156   301,405   324,207   283,742 
    Time Deposits  205,367   234,358   261,924   245,996   263,645 
    Total interest-bearing deposits  1,126,955   1,111,144   1,086,352   1,085,448   1,045,086 
               
    Core deposits*  1,415,948   1,358,661   1,301,772   1,318,368   1,230,798 
    Shareholders’ equity  172,274   168,478   166,830   164,059   164,142 
               
    Asset Quality          
    Non-performing loans $6,250  $7,763  $7,931  $9,272  $10,334 
    Non-performing loans to total assets  0.32%  0.41%  0.42%  0.49%  0.56%
    Allowance for loan losses  14,176   14,557   14,438   14,202   13,803 
    Allowance for loan losses to total loans  1.02%  1.08%  1.08%  1.06%  1.03%
    Allowance for loan losses to non-performing loans  226.82%  187.52%  182.05%  153.17%  133.57%
    Non-performing loans to total loans  0.45%  0.58%  0.59%  0.69%  0.77%
               
    Capitalization          
    Shareholders’ equity to total assets  8.88%  8.82%  8.80%  8.65%  8.95%

    * Core deposits are defined as total deposits less time deposits

    Reconciliation of GAAP and Non-GAAP Financial Measures
    (UNAUDITED)

      Three Months Ended December 31, Twelve Months Ended December 31,
    (Dollars in Thousands, Except Per Share Data)  2021   2020   2021   2020 
    GAAP net income $4,879  $3,901  $16,033  $15,206 
    Less: net securities gains, net of tax  284   295   521   1,270 
    Non-GAAP core earnings $4,595  $3,606  $15,512  $13,936 
             
      Three Months Ended December 31, Twelve Months Ended December 31,
       2021   2020   2021   2020 
    Return on average assets (ROA)  1.02%  0.85%  0.85%  0.85%
    Less: net securities gains, net of tax  0.06%  0.06%  0.03%  0.07%
    Non-GAAP core ROA  0.96%  0.79%  0.82%  0.78%
             
      Three Months Ended December 31, Twelve Months Ended December 31,
       2021   2020   2021   2020 
    Return on average equity (ROE)  11.59%  9.55%  9.93%  9.66%
    Less: net securities gains, net of tax  0.67%  0.72%  0.32%  0.81%
    Non-GAAP core ROE  10.92%  8.83%  9.61%  8.85%
             
      Three Months Ended December 31, Twelve Months Ended December 31,
       2021   2020   2021   2020 
    Basic earnings per share (EPS) $0.69  $0.55  $2.27  $2.16 
    Less: net securities gains, net of tax  0.04   0.04   0.07   0.18 
    Non-GAAP basic core EPS $0.65  $0.51  $2.20  $1.98 
         
      Three Months Ended December 31, Twelve Months Ended December 31,
       2021   2020   2021   2020 
    Diluted EPS $0.69  $0.55  $2.27  $2.16 
    Less: net securities gains, net of tax  0.04   0.04   0.07   0.18 
    Non-GAAP diluted core EPS $0.65  $0.51  $2.20  $1.98 

    COVID-19 Loan Deferrals as of December 31, 2021

    (In Thousands, Unaudited) Amount
    Commercial, financial, and agricultural         $—
    Real estate mortgage:  
    Residential          192
    Commercial          158
    Consumer automobile loans          20
    Other consumer installment loans          9
    Total loan deferrals          $379

     


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