CBFV CB Financial Services Inc

CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”), today announced its third quarter and year-to-date 2024 financial results.

 

Three Months Ended

 

Nine Months Ended

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

 

9/30/24

9/30/23

(Dollars in thousands, except per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP)

$

3,219

 

$

2,650

$

4,196

 

$

12,966

 

$

2,672

 

$

10,065

 

$

9,586

 

Net Income Adjustments

 

(293

)

 

24

 

(1,000

)

 

(9,905

)

 

29

 

 

(1,269

)

 

(20

)

Adjusted Net Income (Non-GAAP) (1)

$

2,926

 

$

2,674

$

3,196

 

$

3,061

 

$

2,701

 

$

8,796

 

$

9,566

 

 

 

 

 

 

 

 

 

 

Earnings per Common Share - Diluted (GAAP)

$

0.60

 

$

0.51

$

0.82

 

$

2.52

 

$

0.52

 

$

1.89

 

$

1.87

 

Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)

$

0.55

 

$

0.52

$

0.62

 

$

0.60

 

$

0.53

 

$

1.65

 

$

1.87

 

(1)

Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted as presented later in this Press Release.

2024 Third Quarter Financial Highlights

(Comparisons to three months ended September 30, 2023 unless otherwise noted)

• Net income was $3.2 million, compared to $2.7 million. Results were impacted by the December 2023 sale of the Bank’s subsidiary insurance agency, Exchange Underwriters (“EU”), which drove decreases in noninterest income and noninterest expense.
• Earnings per diluted common share (EPS) increased to $0.60 from $0.52.
• Return on average assets (annualized) was 0.84%, compared to 0.75%.
• Return on average equity (annualized) was 8.80%, compared to 9.03%.
• Net interest and dividend income was $11.5 million, compared to $10.7 million.
• Noninterest income decreased to $1.2 million, compared to $2.4 million. The significant decrease in noninterest income was driven by a $1.4 million decrease in insurance commissions due to the sale of EU.
• Noninterest expense decreased to $8.8 million, compared to $9.5 million, due to decreases in compensation and benefits and intangible amortization expenses also driven by the sale of EU, partially offset by increases in contracted services, data processing, occupancy and Pennsylvania shares tax expenses.

(Amounts at September 30, 2024; comparisons to December 31, 2023, unless otherwise noted)

• Total assets increased $105.7 million, or 7.3%, to $1.6 billion from $1.5 billion.
• Total loans decreased $44.6 million, or 4.0%, to $1.07 billion compared to $1.11 billion, and included decreases in consumer, residential real estate, commercial real estate and commercial and industrial loans of $31.6 million, $8.9 million, $2.8 million and $2.7 million, respectively. The consumer loan portfolio is primarily comprised of indirect automobile loans and decreased as a result of the discontinuation of that product as of June 30, 2023. Excluding the $31.8 million decrease in indirect automobile loans, total loans decreased $12.8 million, or 1.2%. In total, $95.5 million of loans have paid off since December 31, 2023.
• Nonperforming loans to total loans was 0.19% at September 30, 2024, compared to 0.20% at December 31, 2023.
• Total deposits were $1.35 billion, an increase of $86.7 million, compared to $1.27 billion.
• Book value per share was $29.07, compared to $27.79 as of June 30, 2024 and $27.32 as of December 31, 2023.
• Tangible book value per share (Non-GAAP) was $27.16, compared to $25.83 as of June 30, 2024 and $25.23 as of December 31, 2023. The year-to-date change was due to an increase in stockholders’ equity primarily related to current period net income of $10.1 million and a $2.8 million decrease in accumulated other comprehensive loss, partially offset by the payment of $3.9 million in dividends since December 31, 2023.

Management Commentary

President and CEO John H. Montgomery commented, “Funding costs continued to increase from the prior period, maintaining pressure on our net interest margin. However, relief from this ongoing trend appears to be on the horizon with prevailing market deposit costs beginning to soften. Our balance sheet strategies and continued focus on quality, relationship-driven loan production continue to strengthen the fundamentals of our bank.

During the quarter, our loan portfolio decreased $12.9 million, or 1.2%, with the previously exited Indirect Lending Portfolio declining $10.4 million. Commercial real estate loans increased $5.6 million, while residential real estate loans declined $3.8 million, results that are consistent with the purposeful repositioning of our loan portfolio. Notably, our asset quality remains robust, with nonperforming loans remaining stable at $2.0 million (0.19% of total loans) from $2.2 million (0.20% of total loans) at year end 2023.

Overall, deposit movements continued during the quarter, shifting from non-interest and low interest-bearing accounts to higher-cost time deposits. Total deposits remained relatively stable, with a slight increase, largely due to growth in our interest-bearing demand deposits and time deposits.

During the quarter, we continued progress on our strategic initiatives by implementing our Specialty Treasury Payments & Services strategy. This strategy includes development of a platform that will provide Treasury Management payments, products and an exceptional client experience to our traditional Commercial Treasury Clients and Multiple Deposit Niche markets. This targeted Specialized Treasury Management program will allow us to enter into new markets with a proven and differentiated approach, focusing on specific industries that are deposit rich, need high levels of service, and require access to highly efficient money movement systems.

Additionally, we completed the construction and celebrated the opening of a state-of-the-art branch office in Uniontown, PA, continuing the service we have provided to Fayette County for many decades.

We are confident that sustained investment in our franchise, unwavering commitment to our long-term strategy, and dedication to providing an exceptional client experience will benefit all stakeholders.”

Dividend Declaration

The Company’s Board of Directors declared a $0.25 quarterly cash dividend per outstanding share of common stock, payable on or about November 29, 2024, to stockholders of record as of the close of business on November 15, 2024.

2024 Third Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income increased $757,000, or 7.1%, to $11.5 million for the three months ended September 30, 2024 compared to $10.7 million for the three months ended September 30, 2023.

• Net Interest Margin (NIM) (GAAP) decreased to 3.11% for the three months ended September 30, 2024 compared to 3.13% for the three months ended September 30, 2023. Fully tax equivalent (FTE) NIM (Non-GAAP) decreased 2 basis points (“bps”) to 3.12% for the three months ended September 30, 2024 compared to 3.14% for the three months ended September 30, 2023.
• Interest and dividend income increased $3.9 million, or 24.6%, to $19.8 million for the three months ended September 30, 2024 compared to $15.9 million for the three months ended September 30, 2023.
  • Interest income on loans increased $896,000, or 6.4%, to $14.9 million for the three months ended September 30, 2024 compared to $14.0 million for the three months ended September 30, 2023. The average yield on loans increased 47 bps to 5.60% compared to 5.13% resulting in a $1.3 million increase in interest income on loans. The average balance of loans decreased $24.7 million to $1.06 billion from $1.09 billion, causing a $357,000 decrease in interest income on loans. The increase in loan yield has been driven by a reduction in lower yielding consumer loans due to the discontinuation of the indirect automobile loan product with the redeployment of those funds into higher yielding commercial loan products.
  • Interest income on taxable investment securities increased $2.3 million, or 249.9%, to $3.3 million for the three months ended September 30, 2024 compared to $940,000 for the three months ended September 30, 2023 driven by a 272 bp increase in average yield coupled with a $83.4 million increase in average balances. The increase in the average yield was the result of the Bank implementing a balance sheet repositioning strategy of its portfolio of available-for-sale securities during the fourth quarter of 2023. The Bank sold $69.3 million in market value of its lower yielding U.S. government agency, mortgage-backed and municipal securities with an average yield of 1.89% and purchased $69.3 million of higher yielding mortgage-backed and collateralized mortgage obligation securities with an average yield of 5.49%. The increase in volume was driven by a $99.9 million increase in the average balance of collateralized loan obligation (“CLO”) securities as the Bank executed a leverage strategy to purchase these assets funded with brokered certificates of deposits.
  • Interest income on interest-earning deposits at other banks increased $698,000 to $1.4 million for the three months ended September 30, 2024 compared to $750,000 for the three months ended September 30, 2023 driven by a $58.7 million increase in average balances, partially offset by a 51 bp decrease in the average yield. The volume increase was due in part to $30.5 million in cash received from the December 2023 sale of EU.
• Interest expense increased $3.1 million, or 60.9%, to $8.3 million for the three months ended September 30, 2024 compared to $5.2 million for the three months ended September 30, 2023.
  • Interest expense on deposits increased $3.1 million, or 66.1%, to $7.9 million for the three months ended September 30, 2024 compared to $4.8 million for the three months ended September 30, 2023. Rising market interest rates led to the repricing of interest-bearing demand and money market deposits and a shift in deposits from noninterest-bearing and interest-bearing demand deposits into money market and time deposits which resulted in a 93 bp, or 46.3%, increase in the average cost of interest-bearing deposits compared to the three months ended September 30, 2023. This accounted for a $2.4 million increase in interest expense. Additionally, interest-bearing deposit balances increased $130.0 million, or 13.9%, to $1.1 billion as of September 30, 2024 compared to $937.8 million as of September 30, 2023, accounting for a $716,000 increase in interest expense.

Provision for Credit Losses

The provision for credit losses recorded for the three months ended September 30, 2024 was a net recovery of $41,000. The provision for credit losses - loans was $25,000 and was primarily due to changes in qualitative factors partially offset by changes in loan portfolio concentrations and an improvement in loss rates. The provision for credit losses - unfunded commitments was a recovery of $66,000 and was due to a decrease in the unfunded commitments and in the loss rate on construction loans. This compared to a $406,000 provision for credit losses recorded for the three months ended September 30, 2023 and was required primarily due to loan growth coupled with a modeled slowdown in loan prepayment speeds.

Noninterest Income

Noninterest income decreased $1.2 million, or 48.9%, to $1.2 million for the three months ended September 30, 2024, compared to $2.4 million for the three months ended September 30, 2023. This decrease resulted primarily from a $1.4 million decrease in insurance commissions as no income was recognized for the three months ended September 30, 2024 due to the December 2023 sale of EU, compared to a full quarter of income recognized for the three months ended September 30, 2023.

Noninterest Expense

Noninterest expense decreased $705,000, or 7.4%, to $8.8 million for the three months ended September 30, 2024 compared to $9.5 million for the three months ended September 30, 2023. Salaries and benefits decreased $808,000, or 15.0%, to $4.6 million primarily due to no expense related to EU recognized for the three months ended September 30, 2024 due to the December 2023 sale, compared to $878,000 of expense recognized for the three months ended September 30, 2023, partially offset by merit increases and revenue producing staff additions. Intangible amortization decreased $181,000 as a portion of the Bank’s core deposit intangible was fully amortized in February 2024 and EU intangible amortization of $47,000 was realized during the three months ended September 30, 2023. Data processing expense increased $58,000 due to costs associated with the implementation of a new loan origination system and financial dashboard platform. Occupancy expense increased $57,000 due to $130,000 of environmental remediation costs related to a construction project on one of the Bank’s office locations, partially offset by $44,000 of EU occupancy expense realized during the three months ended September 30, 2023. Pennsylvania shares tax expense increased $48,000 due to a higher taxable base due to the increase in equity resulting from the sale of EU.

Statement of Financial Condition Review

Assets

Total assets increased $105.7 million, or 7.3%, to $1.6 billion at September 30, 2024, compared to $1.5 billion at December 31, 2023.

• Cash and due from banks increased $79.1 million, or 115.9%, to $147.3 million at September 30, 2024, compared to $68.2 million at December 31, 2023.
• Securities increased $63.8 million, or 30.8%, to $270.9 million at September 30, 2024, compared to $207.1 million at December 31, 2023. The securities balance was primarily impacted by the purchase of $69.8 million of CLO securities, partially offset by $10.7 million of principal repayments on amortizing securities.

Loans and Credit Quality

• Total loans decreased $44.6 million, or 4.0%, to $1.07 billion at September 30, 2024 compared to $1.11 billion at December 31, 2023. This was driven by decreases in consumer, residential real estate, commercial real estate and commercial and industrial loans of $31.6 million, $8.9 million, $2.8 million and $2.7 million, respectively, partially offset by increases in other loans and construction loans of $1.0 million and $399,000, respectively. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to rising market interest rates and the discontinuation of this product offering as of June 30, 2023. This portfolio is expected to continue to decline as resources are allocated and production efforts are focused on more profitable commercial products. In total, $95.5 million of loans have paid off since December 31, 2023.
• The allowance for credit losses (ACL) was $9.5 million at September 30, 2024 and $9.7 million at December 31, 2023. As a result, the ACL to total loans was 0.89% at September 30, 2024 and 0.87% at December 31, 2023. During the current year, the Company recorded a net recovery of credit losses of $114,000.
• Net charge-offs for the three months ended September 30, 2024 were $73,000, or 0.03% of average loans on an annualized basis. Net charge-offs for the three months ended September 30, 2023 were $109,000, or 0.04% of average loans on an annualized basis. Net charge-offs for the nine months ended September 30, 2024 were $123,000. Net recoveries for the nine months ended September 30, 2023 were $551,000 primarily due to recoveries totaling $750,000 related to a prior year $2.7 million charged-off commercial and industrial loan.
• Nonperforming loans, which include nonaccrual loans and accruing loans past due 90 days or more, were $2.0 million at September 30, 2024 and $2.2 million at December 31, 2023. Nonperforming loans to total loans ratio was 0.19% at September 30, 2024 and 0.20% at December 31, 2023.

Other

• Accrued interest and other assets increased $7.8 million or 32.1%, to $32.1 million at September 30, 2024, compared to $24.3 million at December 31, 2023 due primarily to a $6.0 million investment in a low-income housing tax credit project.

Total liabilities increased $96.3 million, or 7.3%, to $1.4 billion at September 30, 2024 compared to $1.3 billion at December 31, 2023.

Deposits

• Total deposits increased $86.7 million to $1.35 billion as of September 30, 2024 compared to $1.27 billion at December 31, 2023. Time deposits increased $136.5 million and money market deposits increased $19.7 million while interest-bearing demand, savings and non interest-bearing demand deposits decreased $36.5 million, $22.3 million and $10.7 million, respectively. Deposit changes were primarily the result of the current interest rate environment causing a shift in deposit products to higher priced money market and time deposits. Additionally, the Bank added $70.6 million of brokered certificates of deposit during the period. Brokered certificates of deposit totaled $99.6 million as of September 30, 2024 compared to $29.0 million at December 31, 2023, all mature within three months and were utilized to fund the purchase of floating rate CLO securities. At September 30, 2024, FDIC insured deposits totaled approximately 62.4% of total deposits while an additional 15.9% of total deposits were collateralized with investment securities.

Accrued Interest Payable and Other Liabilities

• Accrued interest payable and other liabilities increased $9.7 million, or 67.3%, to $24.1 million at September 30, 2024, compared to $14.4 million at December 31, 2023 primarily due to the purchase of $6.0 million of syndicated loans which were unfunded at the end of the period and a $5.4 million unfunded commitment related to a low-income housing tax credit project.

Stockholders’ Equity

Stockholders’ equity increased $9.3 million, or 6.7%, to $149.1 million at September 30, 2024, compared to $139.8 million at December 31, 2023. The key factor positively impacting stockholders’ equity was $10.1 million of net income for the current period and a $2.8 million decrease in accumulated other comprehensive loss, partially offset by the payment of $3.9 million in dividends since December 31, 2023.

Book value per share

Book value per common share was $29.07 at September 30, 2024 compared to $27.32 at December 31, 2023, an increase of $1.75.

Tangible book value per common share (Non-GAAP) was $27.16 at September 30, 2024, compared to $25.23 at December 31, 2023, an increase of $1.93.

Refer to “Explanation of Use of Non-GAAP Financial Measures” at the end of this Press Release.

About CB Financial Services, Inc.

CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services.

For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.

Statement About Forward-Looking Statements

Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

CB FINANCIAL SERVICES, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Condition Data

9/30/24

 

6/30/24

 

3/31/24

 

12/31/23

 

9/30/23

Assets

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

147,325

 

 

$

142,600

 

 

$

73,691

 

 

$

68,223

 

 

$

52,597

 

Securities

 

270,881

 

 

 

268,769

 

 

 

232,276

 

 

 

207,095

 

 

 

172,904

 

Loans Held for Sale

 

428

 

 

 

632

 

 

 

200

 

 

 

—

 

 

 

—

 

Loans

 

 

 

 

 

 

 

 

 

Real Estate:

 

 

 

 

 

 

 

 

 

Residential

 

338,926

 

 

 

342,689

 

 

 

346,938

 

 

 

347,808

 

 

 

346,485

 

Commercial

 

464,354

 

 

 

458,724

 

 

 

470,430

 

 

 

467,154

 

 

 

466,910

 

Construction

 

43,515

 

 

 

44,038

 

 

 

44,323

 

 

 

43,116

 

 

 

41,874

 

Commercial and Industrial

 

108,554

 

 

 

112,395

 

 

 

103,313

 

 

 

111,278

 

 

 

100,873

 

Consumer

 

80,004

 

 

 

90,357

 

 

 

100,576

 

 

 

111,643

 

 

 

122,516

 

Other

 

30,402

 

 

 

30,491

 

 

 

30,763

 

 

 

29,397

 

 

 

23,856

 

Total Loans

 

1,065,755

 

 

 

1,078,694

 

 

 

1,096,343

 

 

 

1,110,396

 

 

 

1,102,514

 

Allowance for Credit Losses

 

(9,479

)

 

 

(9,527

)

 

 

(9,582

)

 

 

(9,707

)

 

 

(10,848

)

Loans, Net

 

1,056,276

 

 

 

1,069,167

 

 

 

1,086,761

 

 

 

1,100,689

 

 

 

1,091,666

 

Premises and Equipment, Net

 

20,838

 

 

 

20,326

 

 

 

19,548

 

 

 

19,704

 

 

 

18,524

 

Bank-Owned Life Insurance

 

24,057

 

 

 

23,910

 

 

 

23,763

 

 

 

25,378

 

 

 

25,227

 

Goodwill

 

9,732

 

 

 

9,732

 

 

 

9,732

 

 

 

9,732

 

 

 

9,732

 

Intangible Assets, Net

 

88

 

 

 

353

 

 

 

617

 

 

 

958

 

 

 

2,177

 

Accrued Interest Receivable and Other Assets

 

32,116

 

 

 

24,770

 

 

 

26,501

 

 

 

24,312

 

 

 

26,665

 

Total Assets

$

1,561,741

 

 

$

1,560,259

 

 

$

1,473,089

 

 

$

1,456,091

 

 

$

1,399,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Noninterest-Bearing Demand Accounts

$

267,022

 

 

$

269,964

 

 

$

275,182

 

 

$

277,747

 

 

$

305,145

 

Interest-Bearing Demand Accounts

 

326,505

 

 

 

324,688

 

 

 

323,134

 

 

 

362,994

 

 

 

357,381

 

Money Market Accounts

 

220,789

 

 

 

229,998

 

 

 

208,375

 

 

 

201,074

 

 

 

189,187

 

Savings Accounts

 

172,354

 

 

 

179,081

 

 

 

190,206

 

 

 

194,703

 

 

 

207,148

 

Time Deposits

 

367,150

 

 

 

346,037

 

 

 

265,597

 

 

 

230,641

 

 

 

177,428

 

Total Deposits

 

1,353,820

 

 

 

1,349,768

 

 

 

1,262,494

 

 

 

1,267,159

 

 

 

1,236,289

 

 

 

 

 

 

 

 

 

 

 

Other Borrowings

 

34,708

 

 

 

34,698

 

 

 

34,688

 

 

 

34,678

 

 

 

34,668

 

Accrued Interest Payable and Other Liabilities

 

24,073

 

 

 

32,911

 

 

 

34,317

 

 

 

14,420

 

 

 

13,689

 

Total Liabilities

 

1,412,601

 

 

 

1,417,377

 

 

 

1,331,499

 

 

 

1,316,257

 

 

 

1,284,646

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

149,140

 

 

 

142,882

 

 

 

141,590

 

 

 

139,834

 

 

 

114,846

 

Total Liabilities and Stockholders’ Equity

$

1,561,741

 

 

$

1,560,259

 

 

$

1,473,089

 

 

$

1,456,091

 

 

$

1,399,492

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

Selected Operating Data

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

Interest and Dividend Income:

 

 

 

 

 

 

 

Loans, Including Fees

$

14,945

 

$

14,670

 

$

14,838

 

$

14,804

 

$

14,049

 

$

44,453

 

$

39,846

 

Securities:

 

 

 

 

 

 

 

Taxable

 

3,289

 

 

2,844

 

 

2,303

 

 

1,164

 

 

940

 

 

8,437

 

 

2,853

 

Tax-Exempt

 

—

 

 

—

 

 

—

 

 

33

 

 

41

 

 

—

 

 

124

 

Dividends

 

28

 

 

27

 

 

27

 

 

32

 

 

25

 

 

82

 

 

74

 

Other Interest and Dividend Income

 

1,511

 

 

1,398

 

 

818

 

 

872

 

 

819

 

 

3,727

 

 

2,424

 

Total Interest and Dividend Income

 

19,773

 

 

18,939

 

 

17,986

 

 

16,905

 

 

15,874

 

 

56,699

 

 

45,321

 

Interest Expense:

 

 

 

 

 

 

 

Deposits

 

7,892

 

 

7,065

 

 

5,991

 

 

5,336

 

 

4,750

 

 

20,948

 

 

11,097

 

Short-Term Borrowings

 

—

 

 

—

 

 

—

 

 

26

 

 

—

 

 

—

 

 

5

 

Other Borrowings

 

407

 

 

404

 

 

404

 

 

407

 

 

407

 

 

1,215

 

 

800

 

Total Interest Expense

 

8,299

 

 

7,469

 

 

6,395

 

 

5,769

 

 

5,157

 

 

22,163

 

 

11,902

 

Net Interest and Dividend Income

 

11,474

 

 

11,470

 

 

11,591

 

 

11,136

 

 

10,717

 

 

34,536

 

 

33,419

 

Provision (Recovery) for Credit Losses - Loans

 

25

 

 

12

 

 

(143

)

 

(1,147

)

 

291

 

 

(105

)

 

863

 

(Recovery) Provision for Credit Losses - Unfunded Commitments

 

(66

)

 

(48

)

 

106

 

 

(273

)

 

115

 

 

(9

)

 

54

 

Net Interest and Dividend Income After Net (Recovery) Provision for Credit Losses

 

11,515

 

 

11,506

 

 

11,628

 

 

12,556

 

 

10,311

 

 

34,650

 

 

32,502

 

Noninterest Income:

 

 

 

 

 

 

 

Service Fees

 

451

 

 

354

 

 

415

 

 

460

 

 

466

 

 

1,220

 

 

1,359

 

Insurance Commissions

 

1

 

 

1

 

 

2

 

 

969

 

 

1,436

 

 

4

 

 

4,870

 

Other Commissions

 

104

 

 

22

 

 

62

 

 

60

 

 

94

 

 

188

 

 

462

 

Net Gain (Loss) on Sales of Loans

 

18

 

 

9

 

 

22

 

 

2

 

 

—

 

 

49

 

 

(3

)

Net Gain (Loss) on Securities

 

245

 

 

(31

)

 

(166

)

 

(9,830

)

 

(37

)

 

49

 

 

(369

)

Net Gain on Purchased Tax Credits

 

12

 

 

12

 

 

12

 

 

7

 

 

7

 

 

37

 

 

22

 

Gain on Sale of Subsidiary

 

138

 

 

—

 

 

—

 

 

24,578

 

 

—

 

 

138

 

 

—

 

Net Gain on Disposal of Premises and Equipment

 

—

 

 

—

 

 

274

 

 

—

 

 

—

 

 

274

 

 

11

 

Income from Bank-Owned Life Insurance

 

147

 

 

147

 

 

148

 

 

151

 

 

145

 

 

442

 

 

425

 

Net Gain on Bank-Owned Life Insurance Claims

 

—

 

 

—

 

 

915

 

 

—

 

 

—

 

 

915

 

 

303

 

Other Income

 

117

 

 

174

 

 

232

 

 

121

 

 

301

 

 

523

 

 

413

 

Total Noninterest Income

 

1,233

 

 

688

 

 

1,916

 

 

16,518

 

 

2,412

 

 

3,839

 

 

7,493

 

Noninterest Expense:

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

4,561

 

 

4,425

 

 

4,576

 

 

6,224

 

 

5,369

 

 

13,563

 

 

15,679

 

Occupancy

 

755

 

 

940

 

 

749

 

 

810

 

 

698

 

 

2,444

 

 

2,188

 

Equipment

 

280

 

 

298

 

 

264

 

 

298

 

 

265

 

 

842

 

 

766

 

Data Processing

 

772

 

 

1,011

 

 

692

 

 

726

 

 

714

 

 

2,476

 

 

2,289

 

Federal Deposit Insurance Corporation Assessment

 

177

 

 

161

 

 

129

 

 

189

 

 

189

 

 

467

 

 

565

 

Pennsylvania Shares Tax

 

265

 

 

297

 

 

297

 

 

217

 

 

217

 

 

860

 

 

672

 

Contracted Services

 

431

 

 

390

 

 

281

 

 

299

 

 

286

 

 

1,102

 

 

868

 

Legal and Professional Fees

 

297

 

 

208

 

 

212

 

 

434

 

 

320

 

 

717

 

 

748

 

Advertising

 

141

 

 

78

 

 

129

 

 

158

 

 

114

 

 

348

 

 

268

 

Other Real Estate Owned (Income)

 

2

 

 

37

 

 

(23

)

 

(36

)

 

(8

)

 

16

 

 

(80

)

Amortization of Intangible Assets

 

264

 

 

264

 

 

341

 

 

430

 

 

445

 

 

870

 

 

1,336

 

Other Expense

 

837

 

 

875

 

 

781

 

 

1,016

 

 

878

 

 

2,492

 

 

2,718

 

Total Noninterest Expense

 

8,782

 

 

8,984

 

 

8,428

 

 

10,765

 

 

9,487

 

 

26,197

 

 

28,017

 

Income Before Income Tax Expense

 

3,966

 

 

3,210

 

 

5,116

 

 

18,309

 

 

3,236

 

 

12,292

 

 

11,978

 

Income Tax Expense

 

747

 

 

560

 

 

920

 

 

5,343

 

 

564

 

 

2,227

 

 

2,392

 

Net Income

$

3,219

 

$

2,650

 

$

4,196

 

$

12,966

 

$

2,672

 

$

10,065

 

$

9,586

 

 

Three Months Ended

Nine Months Ended

Per Common Share Data

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

Dividends Per Common Share

$

0.25

$

0.25

$

0.25

$

0.25

$

0.25

$

0.75

$

0.75

Earnings Per Common Share - Basic

 

0.63

 

0.52

 

0.82

 

2.53

 

0.52

 

1.96

 

1.88

Earnings Per Common Share - Diluted

 

0.60

 

0.51

 

0.82

 

2.52

 

0.52

 

1.89

 

1.87

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding - Basic

 

5,137,586

 

5,142,139

 

5,129,903

 

5,119,184

 

5,115,026

 

5,136,546

 

5,112,223

Weighted Average Common Shares Outstanding - Diluted

 

5,346,750

 

5,152,657

 

5,142,286

 

5,135,997

 

5,126,546

 

5,328,610

 

5,118,279

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

Common Shares Outstanding

 

5,129,921

 

 

5,141,911

 

 

5,142,901

 

 

5,118,713

 

 

5,120,678

 

Book Value Per Common Share

$

29.07

 

$

27.79

 

$

27.53

 

$

27.32

 

$

22.43

 

Tangible Book Value per Common Share (1)

 

27.16

 

 

25.83

 

 

25.52

 

 

25.23

 

 

20.10

 

Stockholders’ Equity to Assets

 

9.5

%

 

9.2

%

 

9.6

%

 

9.6

%

 

8.2

%

Tangible Common Equity to Tangible Assets (1)

 

9.0

 

 

8.6

 

 

9.0

 

 

8.9

 

 

7.4

 

 

Three Months Ended

Nine Months Ended

Selected Financial Ratios (2)

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

Return on Average Assets

0.84

%

0.71

%

1.17

%

3.62

%

0.75

%

0.90

%

0.91

%

Return on Average Equity

8.80

 

7.58

 

12.03

 

44.99

 

9.03

 

9.45

 

10.98

 

Average Interest-Earning Assets to Average Interest-Bearing Liabilities

133.26

 

135.69

 

137.07

 

138.67

 

139.65

 

135.28

 

143.07

 

Average Equity to Average Assets

9.54

 

9.36

 

9.72

 

8.04

 

8.32

 

9.54

 

8.33

 

Net Interest Rate Spread

2.36

 

2.44

 

2.67

 

2.56

 

2.54

 

2.48

 

2.80

 

Net Interest Rate Spread (FTE) (1)

2.38

 

2.46

 

2.68

 

2.57

 

2.55

 

2.50

 

2.81

 

Net Interest Margin

3.11

 

3.18

 

3.36

 

3.19

 

3.13

 

3.21

 

3.31

 

Net Interest Margin (FTE) (1)

3.12

 

3.19

 

3.37

 

3.21

 

3.14

 

3.22

 

3.32

 

Net Charge-Offs (Recoveries) to Average Loans

0.03

 

0.02

 

(0.01

)

—

 

0.04

 

0.02

 

(0.07

)

Efficiency Ratio

69.11

 

73.89

 

62.40

 

38.93

 

72.26

 

68.27

 

68.48

 

Asset Quality Ratios

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

Allowance for Credit Losses to Total Loans

0.89

%

0.88

%

0.87

%

0.87

%

0.98

%

Allowance for Credit Losses to Nonperforming Loans (3)

463.07

 

513.03

 

437.73

 

433.35

 

330.13

 

Delinquent and Nonaccrual Loans to Total Loans (4)

0.98

 

0.53

 

0.63

 

0.62

 

0.73

 

Nonperforming Loans to Total Loans (3)

0.19

 

0.17

 

0.20

 

0.20

 

0.30

 

Nonperforming Assets to Total Assets (5)

0.14

 

0.13

 

0.15

 

0.16

 

0.23

 

Capital Ratios (6)

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

Common Equity Tier 1 Capital (to Risk Weighted Assets)

14.79

%

14.62

%

14.50

%

13.64

%

12.77

%

Tier 1 Capital (to Risk Weighted Assets)

14.79

 

14.62

 

14.50

 

13.64

 

12.77

 

Total Capital (to Risk Weighted Assets)

15.76

 

15.61

 

15.51

 

14.61

 

13.90

 

Tier 1 Leverage (to Adjusted Total Assets)

9.96

 

9.98

 

10.28

 

10.19

 

9.37

 

(1)

Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(2)

Interim period ratios are calculated on an annualized basis.

(3)

Nonperforming loans consist of all nonaccrual loans and accruing loans that are 90 days or more past due.

(4)

Delinquent loans consist of accruing loans that are 30 days or more past due.

(5)

Nonperforming assets consist of nonperforming loans and other real estate owned.

(6)

Capital ratios are for Community Bank only.

Certain items previously reported may have been reclassified to conform with the current reporting period’s format.

AVERAGE BALANCES AND YIELDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

Average Balance

Interest and Dividends

Yield / Cost (1)

 

Average Balance

Interest and Dividends

Yield / Cost (1)

 

Average Balance

Interest and Dividends

Yield / Cost (1)

 

Average Balance

Interest and Dividends

Yield / Cost (1)

 

Average Balance

Interest and Dividends

Yield / Cost (1)

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net (2)

$

1,063,946

$

14,987

5.60

%

 

$

1,076,455

$

14,711

5.50

%

 

$

1,087,889

$

14,877

5.50

%

 

$

1,098,284

$

14,840

5.36

%

 

$

1,088,691

$

14,081

5.13

%

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

288,208

 

3,289

4.56

 

 

 

266,021

 

2,844

4.28

 

 

 

235,800

 

2,303

3.91

 

 

 

206,702

 

1,164

2.25

 

 

 

204,848

 

940

1.84

 

Tax-Exempt

 

—

 

—

—

 

 

 

—

 

—

—

 

 

 

—

 

—

—

 

 

 

4,833

 

42

3.48

 

 

 

6,013

 

52

3.46

 

Equity Securities

 

2,693

 

28

4.16

 

 

 

2,693

 

27

4.01

 

 

 

2,693

 

27

4.01

 

 

 

2,693

 

32

4.75

 

 

 

2,693

 

25

3.71

 

Interest-Earning Deposits at Banks

 

111,131

 

1,448

5.21

 

 

 

101,277

 

1,313

5.19

 

 

 

58,887

 

733

4.98

 

 

 

67,450

 

808

4.79

 

 

 

52,466

 

750

5.72

 

Other Interest-Earning Assets

 

3,108

 

63

8.06

 

 

 

3,154

 

85

10.84

 

 

 

3,235

 

85

10.57

 

 

 

3,387

 

64

7.50

 

 

 

3,292

 

69

8.32

 

Total Interest-Earning Assets

 

1,469,086

 

19,815

5.37

 

 

 

1,449,600

 

18,980

5.27

 

 

 

1,388,504

 

18,025

5.22

 

 

 

1,383,349

 

16,950

4.86

 

 

 

1,358,003

 

15,917

4.65

 

Noninterest-Earning Assets

 

57,602

 

 

 

 

53,564

 

 

 

 

54,910

 

 

 

 

38,464

 

 

 

 

52,885

 

 

Total Assets

$

1,526,688

 

 

 

$

1,503,164

 

 

 

$

1,443,414

 

 

 

$

1,421,813

 

 

 

$

1,410,888

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Demand Accounts

$

316,301

$

1,923

2.42

%

 

$

325,069

$

1,858

2.30

%

 

$

334,880

$

1,794

2.15

%

 

$

362,018

$

1,965

2.15

%

 

$

363,997

$

2,003

2.18

%

Money Market Accounts

 

217,148

 

1,726

3.16

 

 

 

214,690

 

1,646

3.08

 

 

 

203,867

 

1,514

2.99

 

 

 

205,060

 

1,441

2.79

 

 

 

187,012

 

1,141

2.42

 

Savings Accounts

 

175,753

 

46

0.10

 

 

 

184,944

 

52

0.11

 

 

 

191,444

 

59

0.12

 

 

 

200,737

 

57

0.11

 

 

 

212,909

 

54

0.10

 

Time Deposits

 

358,498

 

4,197

4.66

 

 

 

308,956

 

3,509

4.57

 

 

 

248,118

 

2,624

4.25

 

 

 

193,188

 

1,873

3.85

 

 

 

173,832

 

1,552

3.54

 

Total Interest-Bearing Deposits

 

1,067,700

 

7,892

2.94

 

 

 

1,033,659

 

7,065

2.75

 

 

 

978,309

 

5,991

2.46

 

 

 

961,003

 

5,336

2.20

 

 

 

937,750

 

4,750

2.01

 

Short-Term Borrowings

 

—

 

—

—

 

 

 

2

 

—

—

 

 

 

—

 

—

—

 

 

 

1,902

 

26

5.42

 

 

 

—

 

—

—

 

Other Borrowings

 

34,702

 

407

4.67

 

 

 

34,692

 

404

4.68

 

 

 

34,682

 

404

4.69

 

 

 

34,673

 

407

4.66

 

 

 

34,662

 

407

4.66

 

Total Interest-Bearing Liabilities

 

1,102,402

 

8,299

2.99

 

 

 

1,068,353

 

7,469

2.81

 

 

 

1,012,991

 

6,395

2.54

 

 

 

997,578

 

5,769

2.29

 

 

 

972,412

 

5,157

2.10

 

Noninterest-Bearing Demand Deposits

 

263,650

 

 

 

 

272,280

 

 

 

 

278,691

 

 

 

 

305,789

 

 

 

 

312,016

 

 

Total Funding and Cost of Funds

 

1,366,052

 

2.42

 

 

 

1,340,633

 

2.24

 

 

 

1,291,682

 

1.99

 

 

 

1,303,367

 

1.76

 

 

 

1,284,428

 

1.59

 

Other Liabilities

 

15,043

 

 

 

 

21,867

 

 

 

 

11,441

 

 

 

 

4,119

 

 

 

 

9,025

 

 

Total Liabilities

 

1,381,095

 

 

 

 

1,362,500

 

 

 

 

1,303,123

 

 

 

 

1,307,486

 

 

 

 

1,293,453

 

 

Stockholders' Equity

 

145,593

 

 

 

 

140,664

 

 

 

 

140,291

 

 

 

 

114,327

 

 

 

 

117,435

 

 

Total Liabilities and Stockholders' Equity

$

1,526,688

 

 

 

$

1,503,164

 

 

 

$

1,443,414

 

 

 

$

1,421,813

 

 

 

$

1,410,888

 

 

Net Interest Income (FTE)

(Non-GAAP) (3)

 

$

11,516

 

 

 

$

11,511

 

 

 

$

11,630

 

 

 

$

11,181

 

 

 

$

10,760

 

Net Interest-Earning Assets (4)

 

366,684

 

 

 

 

381,247

 

 

 

 

375,513

 

 

 

 

385,771

 

 

 

 

385,591

 

 

Net Interest Rate Spread (FTE)

(Non-GAAP) (3) (5)

 

 

2.38

%

 

 

 

2.46

%

 

 

 

2.68

%

 

 

 

2.57

%

 

 

 

2.55

%

Net Interest Margin (GAAP) (6)

 

 

3.11

 

 

 

 

3.18

 

 

 

 

3.36

 

 

 

 

3.19

 

 

 

 

3.13

 

Net Interest Margin (FTE)

(Non-GAAP) (3)(6)

 

 

3.12

 

 

 

 

3.19

 

 

 

 

3.37

 

 

 

 

3.21

 

 

 

 

3.14

 

(1)

Annualized based on three months ended results.

(2)

Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.

(3)

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(4)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(6)

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

AVERAGE BALANCES AND YIELDS

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

September 30, 2024

 

September 30, 2023

 

Average Balance

 

Interest and Dividends

 

Yield /Cost (1)

 

Average Balance

 

Interest and Dividends

 

Yield / Cost (1)

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

Loans, Net (2)

$

1,076,052

 

$

44,571

 

5.53

%

 

$

1,069,729

 

$

39,924

 

4.99

%

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

263,433

 

 

8,437

 

4.27

 

 

 

209,069

 

 

2,853

 

1.82

 

Exempt From Federal Tax

 

—

 

 

—

 

—

 

 

 

6,154

 

 

157

 

3.40

 

Marketable Equity Securities

 

2,693

 

 

82

 

4.06

 

 

 

2,693

 

 

74

 

3.66

 

Interest-Earning Deposits at Banks

 

90,507

 

 

3,493

 

5.15

 

 

 

60,474

 

 

2,276

 

5.02

 

Other Interest-Earning Assets

 

3,166

 

 

234

 

9.87

 

 

 

2,905

 

 

148

 

6.81

 

Total Interest-Earning Assets

 

1,435,851

 

 

56,817

 

5.29

 

 

 

1,351,024

 

 

45,432

 

4.50

 

Noninterest-Earning Assets

 

55,366

 

 

 

 

 

 

51,018

 

 

 

 

Total Assets

$

1,491,217

 

 

 

 

 

$

1,402,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Demand Accounts

$

325,383

 

$

5,576

 

2.29

%

 

$

351,379

 

$

4,776

 

1.82

%

Savings Accounts

 

184,017

 

 

157

 

0.11

 

 

 

226,686

 

 

145

 

0.09

 

Money Market Accounts

 

211,921

 

 

4,885

 

3.08

 

 

 

198,243

 

 

3,113

 

2.10

 

Time Deposits

 

305,386

 

 

10,330

 

4.52

 

 

 

143,881

 

 

3,063

 

2.85

 

Total Interest-Bearing Deposits

 

1,026,707

 

 

20,948

 

2.73

 

 

 

920,189

 

 

11,097

 

1.61

 

Short-Term Borrowings

 

1

 

 

—

 

—

 

 

 

604

 

 

5

 

1.11

 

Other Borrowings

 

34,692

 

 

1,215

 

4.68

 

 

 

23,516

 

 

800

 

4.55

 

Total Interest-Bearing Liabilities

 

1,061,400

 

 

22,163

 

2.79

 

 

 

944,309

 

 

11,902

 

1.69

 

Noninterest-Bearing Demand Deposits

 

271,511

 

 

 

 

 

 

333,356

 

 

 

 

Total Funding and Cost of Funds

 

1,332,911

 

 

 

2.22

 

 

 

1,277,665

 

 

 

1.25

 

Other Liabilities

 

16,045

 

 

 

 

 

 

7,655

 

 

 

 

Total Liabilities

 

1,348,956

 

 

 

 

 

 

1,285,320

 

 

 

 

Stockholders' Equity

 

142,261

 

 

 

 

 

 

116,722

 

 

 

 

Total Liabilities and Stockholders' Equity

$

1,491,217

 

 

 

 

 

$

1,402,042

 

 

 

 

Net Interest Income (FTE) (Non-GAAP) (3)

 

 

 

34,654

 

 

 

 

 

 

33,530

 

 

Net Interest-Earning Assets (4)

 

374,451

 

 

 

 

 

 

406,715

 

 

 

 

Net Interest Rate Spread (FTE) (Non-GAAP) (3)(5)

 

 

 

 

2.50

%

 

 

 

 

 

2.81

%

Net Interest Margin (FTE) (Non-GAAP) (3)(6)

 

 

 

 

3.22

 

 

 

 

 

 

3.32

 

(1)

Annualized based on nine months ended results.

(2)

Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.

(3)

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(4)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(6)

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

Explanation of Use of Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company’s business and in analyzing the Company’s operating results on the same basis as that applied by management. Although we believe that these Non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with similar Non-GAAP measures which may be presented by other companies. Where Non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein.

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Total Assets (GAAP)

$

1,561,741

 

$

1,560,259

 

$

1,473,089

 

$

1,456,091

 

$

1,399,492

 

Goodwill and Intangible Assets, Net

 

(9,820

)

 

(10,085

)

 

(10,349

)

 

(10,690

)

 

(11,909

)

Tangible Assets (Non-GAAP) (Numerator)

$

1,551,921

 

$

1,550,174

 

$

1,462,740

 

$

1,445,401

 

$

1,387,583

 

Stockholders' Equity (GAAP)

$

149,140

 

$

142,882

 

$

141,590

 

$

139,834

 

$

114,846

 

Goodwill and Intangible Assets, Net

 

(9,820

)

 

(10,085

)

 

(10,349

)

 

(10,690

)

 

(11,909

)

Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)

$

139,320

 

$

132,797

 

$

131,241

 

$

129,144

 

$

102,937

 

Stockholders’ Equity to Assets (GAAP)

 

9.5

%

 

9.2

%

 

9.6

%

 

9.6

%

 

8.2

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

9.0

%

 

8.6

%

 

9.0

%

 

8.9

%

 

7.4

%

Common Shares Outstanding (Denominator)

 

5,129,921

 

 

5,141,911

 

 

5,142,901

 

 

5,118,713

 

 

5,120,678

 

Book Value per Common Share (GAAP)

$

29.07

 

$

27.79

 

$

27.53

 

$

27.32

 

$

22.43

 

Tangible Book Value per Common Share (Non-GAAP)

$

27.16

 

$

25.83

 

$

25.52

 

$

25.23

 

$

20.10

 

 

Three Months Ended

Nine Months Ended

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP)

$

3,219

 

$

2,650

 

$

4,196

 

$

12,966

 

$

2,672

 

$

10,065

 

$

9,586

 

Amortization of Intangible Assets, Net

 

264

 

 

264

 

 

341

 

 

430

 

 

445

 

 

870

 

 

1,336

 

Adjusted Net Income (Non-GAAP) (Numerator)

$

3,483

 

$

2,914

 

$

4,537

 

$

13,396

 

$

3,117

 

$

10,935

 

$

10,922

 

Annualization Factor

 

3.98

 

 

4.02

 

 

4.02

 

 

3.97

 

 

3.97

 

 

1.34

 

 

1.34

 

Average Stockholders' Equity (GAAP)

$

145,593

 

$

140,664

 

$

140,291

 

$

114,327

 

$

117,435

 

$

142,261

 

$

116,722

 

Average Goodwill and Intangible Assets, Net

 

(9,987

)

 

(10,242

)

 

(10,553

)

 

(11,829

)

 

(12,185

)

 

(10,260

)

 

(12,627

)

Average Tangible Common Equity (Non-GAAP) (Denominator)

$

135,606

 

$

130,422

 

$

129,738

 

$

102,498

 

$

105,250

 

$

132,001

 

$

104,095

 

Return on Average Equity (GAAP)

 

8.80

%

 

7.58

%

 

12.03

%

 

44.99

%

 

9.03

%

 

9.45

%

 

10.98

%

Return on Average Tangible Common Equity (Non-GAAP)

 

10.22

%

 

8.99

%

 

14.07

%

 

51.85

%

 

11.75

%

 

11.07

%

 

14.03

%

 

Three Months Ended

Nine Months Ended

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (GAAP)

$

19,773

 

$

18,939

 

$

17,986

 

$

16,905

 

$

15,874

 

$

56,699

 

$

45,321

 

Adjustment to FTE Basis

 

42

 

 

41

 

 

39

 

 

45

 

 

43

 

 

118

 

 

111

 

Interest Income (FTE) (Non-GAAP)

 

19,815

 

 

18,980

 

 

18,025

 

 

16,950

 

 

15,917

 

 

56,817

 

 

45,432

 

Interest Expense (GAAP)

 

8,299

 

 

7,469

 

 

6,395

 

 

5,769

 

 

5,157

 

 

22,163

 

 

11,902

 

Net Interest Income (FTE) (Non-GAAP)

$

11,516

 

$

11,511

 

$

11,630

 

$

11,181

 

$

10,760

 

$

34,654

 

$

33,530

 

 

 

 

 

 

 

 

 

Net Interest Rate Spread (GAAP)

 

2.36

%

 

2.44

%

 

2.67

%

 

2.56

%

 

2.54

%

 

2.48

%

 

2.80

%

Adjustment to FTE Basis

 

0.02

 

 

0.02

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.02

 

 

0.01

 

Net Interest Rate Spread (FTE) (Non-GAAP)

 

2.38

%

 

2.46

%

 

2.68

%

 

2.57

%

 

2.55

%

 

2.50

%

 

2.81

%

 

 

 

 

 

 

 

 

Net Interest Margin (GAAP)

 

3.11

%

 

3.18

%

 

3.36

%

 

3.19

%

 

3.13

%

 

3.21

%

 

3.31

%

Adjustment to FTE Basis

 

0.01

 

 

0.01

 

 

0.01

 

 

0.02

 

 

0.01

 

 

0.01

 

 

0.01

 

Net Interest Margin (FTE) (Non-GAAP)

 

3.12

%

 

3.19

%

 

3.37

%

 

3.21

%

 

3.14

%

 

3.22

%

 

3.32

%

 

Three Months Ended

Nine Months Ended

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Tax Expense (GAAP)

$

3,966

 

$

3,210

 

$

5,116

 

$

18,309

 

$

3,236

 

$

12,292

 

$

11,978

 

Net (Recovery) Provision for Credit Losses

 

(41

)

 

(36

)

 

(37

)

 

(1,420

)

 

406

 

 

(114

)

 

917

 

Adjustments

 

 

 

 

 

 

 

Net (Gain) Loss on Securities

 

(245

)

 

31

 

 

166

 

 

9,830

 

 

37

 

 

(49

)

 

369

 

Gain on Sale of Subsidiary

 

(138

)

 

—

 

 

—

 

 

(24,578

)

 

—

 

 

(138

)

 

—

 

Net Gain on Disposal of Premises and Equipment

 

—

 

 

—

 

 

(274

)

 

—

 

 

—

 

 

(274

)

 

(11

)

Net Gain on Bank-Owned Life Insurance Claims

 

—

 

 

—

 

 

(915

)

 

—

 

 

—

 

 

(915

)

 

(303

)

Adjusted PPNR (Non-GAAP) (Numerator)

$

3,542

 

$

3,205

 

$

4,056

 

$

2,141

 

$

3,679

 

$

10,802

 

$

12,950

 

Annualization Factor

 

3.98

 

 

4.02

 

 

4.02

 

 

3.97

 

 

3.97

 

 

1.34

 

 

1.34

 

Average Assets (Denominator)

$

1,526,688

 

$

1,503,164

 

$

1,443,414

 

$

1,421,813

 

$

1,410,888

 

$

1,491,217

 

$

1,402,042

 

Adjusted PPNR Return on Average Assets (Non-GAAP)

 

0.92

%

 

0.86

%

 

1.13

%

 

0.60

%

 

1.04

%

 

0.97

%

 

1.24

%

 

Three Months Ended

Nine Months Ended

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP)

$

3,219

 

$

2,650

 

$

4,196

 

$

12,966

 

$

2,672

 

$

10,065

 

$

9,586

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

Net (Gain) Loss on Securities

 

(245

)

 

31

 

 

166

 

 

9,830

 

 

37

 

 

(49

)

 

369

 

Gain on Sale of Subsidiary

 

(138

)

 

—

 

 

—

 

 

(24,578

)

 

—

 

 

(138

)

 

—

 

Net Gain on Disposal of Premises and Equipment

 

—

 

 

—

 

 

(274

)

 

—

 

 

—

 

 

(274

)

 

(11

)

Net Gain on Bank-Owned Life Insurance Claims

 

—

 

 

—

 

 

(915

)

 

—

 

 

—

 

 

(915

)

 

(303

)

Tax effect

 

90

 

 

(7

)

 

23

 

 

4,843

 

 

(8

)

 

107

 

 

(75

)

Adjusted Net Income (Non-GAAP)

$

2,926

 

$

2,674

 

$

3,196

 

$

3,061

 

$

2,701

 

$

8,796

 

$

9,566

 

Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding

 

5,346,750

 

 

5,152,657

 

 

5,142,286

 

 

5,135,997

 

 

5,126,546

 

 

5,328,610

 

 

5,118,279

 

Earnings per Common Share - Diluted (GAAP)

$

0.60

 

$

0.51

 

$

0.82

 

$

2.52

 

$

0.52

 

$

1.89

 

$

1.87

 

Adjusted Earnings per Common Share - Diluted (Non-GAAP)

$

0.55

 

$

0.52

 

$

0.62

 

$

0.60

 

$

0.53

 

$

1.65

 

$

1.87

 

Net Income (GAAP) (Numerator)

$

3,219

 

$

2,650

 

$

4,196

 

$

12,966

 

$

2,672

 

$

10,065

 

$

9,586

 

Annualization Factor

 

3.98

 

 

4.02

 

 

4.02

 

 

3.97

 

 

3.97

 

 

1.34

 

 

1.34

 

Average Assets (Denominator)

 

1,526,688

 

 

1,503,164

 

 

1,443,414

 

 

1,421,813

 

 

1,410,888

 

 

1,491,217

 

 

1,402,042

 

Return on Average Assets (GAAP)

 

0.84

%

 

0.71

%

 

1.17

%

 

3.62

%

 

0.75

%

 

0.90

%

 

0.91

%

Adjusted Net Income (Non-GAAP) (Numerator)

$

2,926

 

$

2,674

 

$

3,196

 

$

3,061

 

$

2,701

 

$

8,796

 

$

9,566

 

Annualization Factor

 

3.98

 

 

4.02

 

 

4.02

 

 

3.97

 

 

3.97

 

 

1.34

 

 

1.34

 

Average Assets (Denominator)

 

1,526,688

 

 

1,503,164

 

 

1,443,414

 

 

1,421,813

 

 

1,410,888

 

 

1,491,217

 

 

1,402,042

 

Adjusted Return on Average Assets (Non-GAAP)

 

0.76

%

 

0.72

%

 

0.89

%

 

0.85

%

 

0.76

%

 

0.79

%

 

0.91

%

 

Three Months Ended

Nine Months Ended

 

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

9/30/24

9/30/23

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (GAAP) (Numerator)

$

3,219

 

$

2,650

 

$

4,196

 

$

12,966

 

$

2,672

 

$

10,065

 

$

9,586

 

Annualization Factor

 

3.98

 

 

4.02

 

 

4.02

 

 

3.97

 

 

3.97

 

 

1.34

 

 

1.34

 

Average Equity (GAAP) (Denominator)

 

145,593

 

 

140,664

 

 

140,291

 

 

114,327

 

 

117,435

 

 

142,261

 

 

116,722

 

Return on Average Equity (GAAP)

 

8.80

%

 

7.58

%

 

12.03

%

 

44.99

%

 

9.03

%

 

9.45

%

 

10.98

%

Adjusted Net Income (Non-GAAP) (Numerator)

$

2,926

 

$

2,674

 

$

3,196

 

$

3,061

 

$

2,701

 

$

8,796

 

$

9,566

 

Annualization Factor

 

3.98

 

 

4.02

 

 

4.02

 

 

3.97

 

 

3.97

 

 

1.34

 

 

1.34

 

Average Equity (GAAP) (Denominator)

 

145,593

 

 

140,664

 

 

140,291

 

 

114,327

 

 

117,435

 

 

142,261

 

 

116,722

 

Adjusted Return on Average Equity (Non-GAAP)

 

8.00

%

 

7.65

%

 

9.16

%

 

10.62

%

 

9.12

%

 

8.26

%

 

10.96

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241025393060/en/

John H. Montgomery President and Chief Executive Officer Phone: (724) 223-8317