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

    Source: Nasdaq GlobeNewswire / 21 Jul 2021 11:01:58   America/New_York

    WILLIAMSPORT, Pa., July 21, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

    Penns Woods Bancorp, Inc. achieved net income of $7.0 million for the six months ended June 30, 2021, resulting in basic and diluted earnings per share of $1.00.

    Highlights

    • Net income, as reported under GAAP, for the three and six months ended June 30, 2021 was $3.6 million and $7.0 million, respectively, compared to $3.8 million and $6.8 million for the same period of 2020. Results for the three and six months ended June 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $45,000 (from a gain of $156,000 to a gain of $111,000) for the three month period and an increase in after-tax securities gains of $27,000 (from a gain of $178,000 to a gain of $205,000) for the six month period.

    • The provision for loan losses decreased $295,000 and $530,000, respectfully, for the three and six months ended June 30, 2021, to $350,000 and $865,000 compared to $645,000 and $1.4 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 six months ended June 30, 2021 were $0.51 and $1.00. Basic and diluted earnings per share for the three and six months ended June 30, 2020 were $0.53 and $0.97.

    • Return on average assets was 0.76% for three months ended June 30, 2021, compared to 0.85% for the corresponding period of 2020. Return on average assets was 0.75% for the six months ended June 30, 2021, compared to 0.79% for the corresponding period of 2020.

    • Return on average equity was 8.70% for the three months ended June 30, 2021, compared to 9.59% for the corresponding period of 2020. Return on average equity was 8.69% for the six months ended June 30, 2021, compared to 8.75% for the corresponding period of 2020.

    COVID-19 Activity

    • Approximately one third of employees working remotely.

    • As of June 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $7.9 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 June 2021.

    • Total paycheck protection program loans originated to be held on balance sheet at June 30, 2021 total $21.6 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 $3.5 million for the three months ended June 30, 2021 compared to $3.6 million for the same period of 2020. Core earnings were $6.8 million for the six months ended June 30, 2021, compared to $6.7 million for the same period of 2020. Core earnings per share for the three months ended June 30, 2021 were $0.49 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 six months ended June 30, 2021 were $0.97 basic and diluted, compared to $0.95 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.74% and 8.43% for the three months ended June 30, 2021, compared to 0.81% and 9.19% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.73% and 8.44% for the six months ended June 30, 2021 compared to 0.77% and 8.52% 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 six months ended June 30, 2021 was 2.78% and 2.83%, compared to 3.01% and 3.09% for the corresponding period of 2020. The decrease in the net interest margin was driven by a decrease in the yield of the loan portfolio of 47 and 39 basis points ("bps"), while the investment portfolio yield declined 50 and 62 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 as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing deposit liabilities decreased 54 and 56 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 $56.5 million to $1.9 billion at June 30, 2021 compared to June 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 $12.9 million to $1.3 billion at June 30, 2021 compared to June 30, 2020, 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 and continues to rebound in 2021. The investment portfolio increased $7.7 million from June 30, 2020 to June 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 0.59% at June 30, 2021 from 0.82% at June 30, 2020 as non-performing loans have decreased to $7.9 million at June 30, 2021 from $11.1 million at June 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 $230,000 for the six months ended June 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at June 30, 2021 compared to 0.96% at June 30, 2020.

    Deposits

    Deposits increased $89.4 million to $1.6 billion at June 30, 2021 compared to June 30, 2020. Noninterest-bearing deposits increased $59.0 million to $477.3 million at June 30, 2021 compared to June 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 have allowed for a decrease in short and long-term borrowings.

    Shareholders’ Equity

    Shareholders’ equity increased $7.3 million to $166.8 million at June 30, 2021 compared to June 30, 2020.  Accumulated other comprehensive loss of $1.4 million at June 30, 2021 increased from a loss of $1.0 million at June 30, 2020 primarily as a result of a change in the net excess of the projected benefit obligations under the defined benefit plan over the fair value of the plan’s assets, 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 $23.63 at June 30, 2021 compared to $22.66 at June 30, 2020, and an equity to asset ratio of 8.80% at June 30, 2021 compared to 8.68% at June 30, 2020. Dividends declared for the six months ended June 30, 2021 and 2020 were $0.64 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, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group. 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, 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)

      June 30,
    (In Thousands, Except Share Data) 2021 2020 % Change
    ASSETS:      
    Noninterest-bearing balances         $27,731  $26,932  2.97%
    Interest-bearing balances in other financial institutions         199,389  188,242  5.92%
    Federal funds sold         40,000    n/a 
    Total cash and cash equivalents         267,120  215,174  24.14%
           
    Investment debt securities, available for sale, at fair value         171,783  164,369  4.51%
    Investment equity securities, at fair value         1,269  1,291  (1.70)%
    Investment securities, trading         43  37  16.22%
    Restricted investment in bank stock, at fair value          15,120  14,849  1.83%
    Loans held for sale         4,927  5,146  (4.26)%
    Loans         1,337,947  1,349,347  (0.84)%
    Allowance for loan losses         (14,438) (12,977) 11.26%
    Loans, net         1,323,509  1,336,370  (0.96)%
    Premises and equipment, net         34,629  32,873  5.34%
    Accrued interest receivable         8,363  8,068  3.66%
    Bank-owned life insurance         34,005  29,368  15.79%
    Investment in limited partnerships         4,795  1,596  200.44%
    Goodwill         17,104  17,104  %
    Intangibles         568  777  (26.90)%
    Operating lease right of use asset         2,946  3,231  (8.82)%
    Deferred tax asset         3,624  3,284  10.35%
    Other assets         5,065  4,827  4.93%
    TOTAL ASSETS         $1,894,870  $1,838,364  3.07%
           
    LIABILITIES:      
    Interest-bearing deposits         $1,086,352  $1,055,981  2.88%
    Noninterest-bearing deposits         477,344  418,324  14.11%
    Total deposits         1,563,696  1,474,305  6.06%
           
    Short-term borrowings         7,520  15,133  (50.31)%
    Long-term borrowings         141,051  171,885  (17.94)%
    Accrued interest payable         961  1,530  (37.19)%
    Operating lease liability         2,992  3,263  (8.31)%
    Other liabilities         11,815  12,640  (6.53)%
    TOTAL LIABILITIES         1,728,035  1,678,756  2.94%
           
    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; 7,541,627 and 7,522,573 shares issued; 7,061,402 and 7,042,348 shares outstanding         41,897  41,792  0.25%
    Additional paid-in capital         53,205  51,956  2.40%
    Retained earnings         85,281  78,910  8.07%
    Accumulated other comprehensive gain (loss):      
    Net unrealized gain on available for sale securities         4,085  4,194  (2.60)%
    Defined benefit plan         (5,523) (5,159) (7.06)%
    Treasury stock at cost, 480,225          (12,115) (12,115) %
    TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY         166,830  159,578  4.54%
    Non-controlling interest         5  30  (83.33)%
    TOTAL SHAREHOLDERS' EQUITY         166,835  159,608  4.53%
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY         $1,894,870  $1,838,364  3.07%


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

      Three Months Ended June 30, Six Months Ended June 30,
    (In Thousands, Except Per Share Data) 2021 2020 % Change 2021 2020 % Change
    INTEREST AND DIVIDEND INCOME:            
    Loans including fees         $13,099  $14,666  (10.68)% $26,444  $29,323  (9.82)%
    Investment securities:            
    Taxable         838  1,023  (18.08)% 1,657  2,033  (18.49)%
    Tax-exempt         164  169  (2.96)% 335  314  6.69%
    Dividend and other interest income         305  186  63.98% 565  535  5.61%
    TOTAL INTEREST AND DIVIDEND INCOME         14,406  16,044  (10.21)% 29,001  32,205  (9.95)%
                 
    INTEREST EXPENSE:            
    Deposits         1,489  2,802  (46.86)% 3,173  5,837  (45.64)%
    Short-term borrowings         2  7  (71.43)% 4  29  (86.21)%
    Long-term borrowings         820  985  (16.75)% 1,659  1,928  (13.95)%
    TOTAL INTEREST EXPENSE         2,311  3,794  (39.09)% 4,836  7,794  (37.95)%
                 
    NET INTEREST INCOME         12,095  12,250  (1.27)% 24,165  24,411  (1.01)%
                 
    PROVISION FOR LOAN LOSSES         350  645  (45.74)% 865  1,395  (37.99)%
                 
    NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES         11,745  11,605  1.21% 23,300  23,016  1.23%
                 
    NON-INTEREST INCOME:            
    Service charges         379  312  21.47% 762  861  (11.50)%
    Debt securities gains, available for sale         137  186  (26.34)% 275  207  32.85%
    Equity securities gains (losses)         4  10  (60.00% (19) 30  (163.33)%
    Securities (losses) gains, trading         (1)   n/a  3  (14) 121.43%
    Bank-owned life insurance         162  144  12.50% 335  336  (0.30)%
    Gain on sale of loans         670  1,028  (34.82)% 1,578  1,472  7.20%
    Insurance commissions         150  92  63.04% 307  219  40.18%
    Brokerage commissions         207  186  11.29% 426  555  (23.24)%
    Debit card income         398  310  28.39% 778  584  33.22%
    Other         803  353  127.48% 1,078  808  33.42%
    TOTAL NON-INTEREST INCOME         2,909  2,621  10.99% 5,523  5,058  9.19%
                 
    NON-INTEREST EXPENSE:            
    Salaries and employee benefits         5,672  5,230  8.45% 11,270  10,897  3.42%
    Occupancy         717  626  14.54% 1,693  1,328  27.48%
    Furniture and equipment         971  828  17.27% 1,780  1,688  5.45%
    Software amortization         208  236  (11.86)% 406  486  (16.46)%
    Pennsylvania shares tax         372  323  15.17% 724  608  19.08%
    Professional fees         684  658  3.95% 1,267  1,280  (1.02)%
    Federal Deposit Insurance Corporation deposit insurance         264  185  42.70% 485  379  27.97%
    Marketing         140  56  150.00% 203  109  86.24%
    Intangible amortization         50  59  (15.25)% 103  121  (14.88)%
    Other         1,170  1,410  (17.02)% 2,268  2,825  (19.72)%
    TOTAL NON-INTEREST EXPENSE         10,248  9,611  6.63% 20,199  19,721  2.42%
    INCOME BEFORE INCOME TAX PROVISION         4,406  4,615  (4.53)% 8,624  8,353  3.24%
    INCOME TAX PROVISION         813  851  (4.47)% 1,584  1,512  4.76%
    NET INCOME         $3,593  $3,764  (4.54)% $7,040  $6,841  2.91%
    Earnings attributable to noncontrolling interest         5  4  25.00% 11  8  37.50%
    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $3,588  $3,760  (4.57)% $7,029  $6,833  2.87%
    EARNINGS PER SHARE - BASIC          $0.51  $0.53  (3.77)% $1.00  $0.97  3.09%
    EARNINGS PER SHARE - DILUTED         $0.51  $0.53  (3.77)% $1.00  $0.97  3.09%
    WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC         7,059,667  7,041,629  0.26% 7,057,404  7,041,185  0.23%
    WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED         7,059,667  7,041,629  0.26% 7,057,404  7,041,185  0.23%
    DIVIDENDS DECLARED PER SHARE         $0.32  $0.32  % $0.64  $0.64  %


    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 

      Three Months Ended
      June 30, 2021 June 30, 2020
    (Dollars in Thousands) Average 
    Balance
     Interest Average 
    Rate
     Average 
    Balance
     Interest Average 
    Rate
    ASSETS:            
    Tax-exempt loans         $46,926  $334  2.85% $44,916  $348  3.12%
    All other loans         1,285,853  12,835  4.00% 1,294,745  14,391  4.47%
    Total loans         1,332,779  13,169  3.96% 1,339,661  14,739  4.43%
                 
    Federal funds sold         25,538  45  0.71%     %
                 
    Taxable securities         148,415  1,051  2.87% 147,352  1,193  3.29%
    Tax-exempt securities         36,469  208  2.31% 28,280  213  3.06%
    Total securities         184,884  1,259  2.76% 175,632  1,406  3.26%
                 
    Interest-bearing deposits         218,868  48  0.09% 144,948  16  0.04%
                 
    Total interest-earning assets         1,762,069  14,521  3.31% 1,660,241  16,161  3.92%
                 
    Other assets         128,402      116,750     
                 
    TOTAL ASSETS         $1,890,471      $1,776,991     
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY:            
    Savings         $225,625  28  0.05% $190,243  67  0.14%
    Super Now deposits         285,672  208  0.29% 251,691  409  0.65%
    Money market deposits         309,749  256  0.33% 229,362  418  0.73%
    Time deposits         256,345  997  1.56% 362,545  1,908  2.12%
    Total interest-bearing deposits         1,077,391  1,489  0.55% 1,033,841  2,802  1.09%
                 
    Short-term borrowings         7,047  2  0.11% 11,174  7  0.83%
    Long-term borrowings         141,076  820  2.33% 171,895  985  2.21%
    Total borrowings         148,123  822  2.23% 183,069  992  2.12%
                 
    Total interest-bearing liabilities         1,225,514  2,311  0.76% 1,216,910  3,794  1.24%
                 
    Demand deposits         482,513      384,591     
    Other liabilities         17,384      18,583     
    Shareholders’ equity         165,060      156,907     
                 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY         $1,890,471      $1,776,991     
    Interest rate spread             2.55%     2.68%
    Net interest income/margin           $12,210  2.78%   $12,367  3.01%


      Three Months Ended June 30,
      2021 2020
    Total interest income         $14,406  $16,044 
    Total interest expense         2,311  3,794 
    Net interest income         12,095  12,250 
    Tax equivalent adjustment         115  117 
    Net interest income (fully taxable equivalent)         $12,210  $12,367 


      Six Months Ended
      June 30, 2021 June 30, 2020
    (Dollars in Thousands) Average 
    Balance
     Interest Average 
    Rate
     Average 
    Balance
     Interest Average 
    Rate
    ASSETS:            
    Tax-exempt loans         $46,177  $684  2.99% $48,346  $752  3.13%
    All other loans         1,289,660  25,904  4.05% 1,299,893  28,729  4.44%
    Total loans         1,335,837  26,588  4.01% 1,348,239  29,481  4.40%
                 
    Federal funds sold         12,840  45  0.71%     %
                 
    Taxable securities         146,740  2,083  2.88% 145,070  2,466  3.46%
    Tax-exempt securities         36,420  424  2.36% 26,027  397  3.10%
    Total securities         183,160  2,507  2.78% 171,097  2,863  3.40%
                 
    Interest-bearing deposits         207,495  94  0.09% 85,832  102  0.24%
                 
    Total interest-earning assets         1,739,332  29,234  3.39% 1,605,168  32,446  4.07%
                 
    Other assets         126,418      114,085     
                 
    TOTAL ASSETS         $1,865,750      $1,719,253     
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY:            
    Savings         $220,161  72  0.07% $184,042  158  0.17%
    Super Now deposits         287,444  475  0.33% 235,758  833  0.71%
    Money market deposits         307,885  523  0.34% 220,035  895  0.82%
    Time deposits         255,408  2,103  1.66% 370,902  3,951  2.14%
    Total interest-bearing deposits         1,070,898  3,173  0.60% 1,010,737  5,837  1.16%
                 
    Short-term borrowings         6,368  4  0.13% 11,011  29  0.53%
    Long-term borrowings         141,279  1,659  2.37% 166,024  1,928  2.34%
    Total borrowings         147,647  1,663  2.27% 177,035  1,957  2.22%
                 
    Total interest-bearing liabilities         1,218,545  4,836  0.80% 1,187,772  7,794  1.32%
                 
    Demand deposits         464,237      355,704     
    Other liabilities         21,227      19,551     
    Shareholders’ equity         161,741      156,226     
                 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY         $1,865,750      $1,719,253     
    Interest rate spread             2.59%     2.75%
    Net interest income/margin           $24,398  2.83%   $24,652  3.09%


      Six Months Ended June 30,
      2021 2020
    Total interest income         $29,001  $32,205 
    Total interest expense         4,836  7,794 
    Net interest income         24,165  24,411 
    Tax equivalent adjustment         233  241 
    Net interest income (fully taxable equivalent)         $24,398  $24,652 


    (Dollars in Thousands, Except Per Share Data) Quarter Ended
      6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020
    Operating Data          
    Net income         $3,588  $3,441  $3,901  $4,472  $3,760 
    Net interest income         12,095  12,070  11,967  11,845  12,250 
    Provision for loan losses         350  515  585  645  645 
    Net security gains         140  119  374  1,011  196 
    Non-interest income, excluding net security gains         2,769  2,495  2,701  3,024  2,423 
    Non-interest expense         10,248  9,951  9,640  9,707  9,611 
               
    Performance Statistics          
    Net interest margin         2.78% 2.88% 2.81% 2.76% 3.01%
    Annualized return on average assets         0.76% 0.75% 0.85% 0.97% 0.85%
    Annualized return on average equity         8.70% 8.59% 9.55% 11.05% 9.60%
    Annualized net loan charge-offs to average loans         0.03% 0.04% 0.06% 0.06% 0.05%
    Net charge-offs         114  116  211  193  168 
    Efficiency ratio         68.61% 67.96% 65.36% 64.89% 65.10%
               
    Per Share Data          
    Basic earnings per share         $0.51  $0.49  $0.55  $0.63  $0.53 
    Diluted earnings per share         0.51  0.49  0.55  0.63  0.53 
    Dividend declared per share         0.32  0.32  0.32  0.32  0.32 
    Book value         23.63  23.25  23.27  23.05  22.66 
    Common stock price:          
    High         26.51  27.78  27.30  22.83  27.75 
    Low         23.03  20.55  19.61  19.61  20.01 
    Close         23.82  24.09  26.01  19.85  22.71 
    Weighted average common shares:          
    Basic         7,060  7,055  7,050  7,045  7,042 
    Fully Diluted         7,060  7,055  7,050  7,045  7,042 
    End-of-period common shares:          
    Issued         7,542  7,537  7,533  7,528  7,523 
    Treasury         480  480  480  480  480 


    (Dollars in Thousands, Except Per Share Data) Quarter Ended
      6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020
    Financial Condition Data:          
    General          
    Total assets         $1,894,870  $1,896,192  $1,834,643  $1,840,779  $1,838,364 
    Loans, net         1,323,509  1,321,697  1,330,524  1,335,711  1,336,370 
    Goodwill         17,104  17,104  17,104  17,104  17,104 
    Intangibles         568  618  671  724  777 
    Total deposits         1,563,696  1,564,364  1,494,443  1,491,810  1,474,305 
    Noninterest-bearing         477,344  478,916  449,357  434,248  418,324 
    Savings         226,573  224,890  209,924  202,781  195,964 
    NOW         296,450  290,355  287,775  268,463  268,348 
    Money Market         301,405  324,207  283,742  274,480  247,753 
    Time Deposits         261,924  245,996  263,645  311,838  343,915 
    Total interest-bearing deposits         1,086,352  1,085,448  1,045,086  1,057,562  1,055,980 
               
    Core deposits*         1,301,772  1,318,368  1,230,798  1,179,972  1,130,389 
    Shareholders’ equity         166,830  164,059  164,142  162,422  159,578 
               
    Asset Quality          
    Non-performing loans         $7,931  $9,272  $10,334  $10,553  $11,097 
    Non-performing loans to total assets         0.42% 0.49% 0.56% 0.57% 0.60%
    Allowance for loan losses         14,438  14,202  13,803  13,429  12,977 
    Allowance for loan losses to total loans         1.08% 1.06% 1.03% 1.00% 0.96%
    Allowance for loan losses to non-performing loans         182.05% 153.17% 133.57% 127.25% 116.94%
    Non-performing loans to total loans         0.59% 0.69% 0.77% 0.78% 0.82%
               
    Capitalization          
    Shareholders’ equity to total assets         8.80% 8.65% 8.95% 8.82% 8.68%

    * Core deposits are defined as total deposits less time deposits

    Reconciliation of GAAP and Non-GAAP Financial Measures

      Three Months Ended June 30, Six Months Ended June 30,
    (Dollars in Thousands, Except Per Share Data) 2021 2020 2021 2020
    GAAP net income         $3,588  $3,760  $7,029  $6,833 
    Less: net securities gains, net of tax          111   156   205   178 
    Non-GAAP core earnings         $3,477  $3,604  $6,824  $6,655 
             
      Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Return on average assets (ROA)         0.76% 0.85% 0.75% 0.79%
    Less: net securities gains, net of tax         0.02% 0.04% 0.02% 0.02%
    Non-GAAP core ROA         0.74% 0.81% 0.73% 0.77%
             
      Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Return on average equity (ROE)         8.70% 9.59% 8.69% 8.75%
    Less: net securities gains, net of tax         0.27% 0.40% 0.25% 0.23%
    Non-GAAP core ROE         8.43% 9.19% 8.44% 8.52%
             
      Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Basic earnings per share (EPS)         $0.51  $0.53  $1.00  $0.97 
    Less: net securities gains, net of tax         0.02  0.02  0.03  0.02 
    Non-GAAP basic core EPS         $0.49  $0.51  $0.97  $0.95 
         
      Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Diluted EPS         $0.51  $0.53  $1.00  $0.97 
    Less: net securities gains, net of tax         0.02  0.02  0.03  0.02 
    Non-GAAP diluted core EPS         $0.49  $0.51  $0.97  $0.95 


    COVID-19 Loan Deferrals as of June 30, 2021

    (In Thousands) Amount
    Commercial, financial, and agricultural         $140 
    Real estate mortgage:  
    Residential         892 
    Commercial         6,890 
    Consumer automobile loans          
    Other consumer installment loans         9 
    Total loan deferrals          $7,931 


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