Fourth Quarter 2023 Highlights Over the Fourth Quarter Prior Year Include:
- Net income of
$3.9 million increased by 9.9 percent compared to the prior year with diluted Earnings Per Share (“EPS”) of$0.57 and increased 44.5 percent compared to the linked quarter. - Interest income of
$15.1 million increased by 16.9 percent from the prior year. - Loan growth of
$38.1 million , or 4.0 percent from the prior year quarter, marks the eighth consecutive quarter of expanding loans. - Strong asset quality with nonperforming assets decreasing to 25 basis points of total assets, a marked improvement from 33 basis points in the same quarter of the previous year. Delinquency levels for loans 30 days or more past due ended the year at 15 basis points of total loans.
Twelve Months Ended
- Net income decreased slightly to
$12.1 million , a 3.4 percent drop from the prior year's$12.5 million , and diluted EPS was$1.75 , down 1.13 percent from$1.77 . Adjusted EPS were up by$0.12 per share or 7.4 percent. - Deposits decreased by
$16.5 million , or 1.5 percent to$1.07 billion . - Mortgage origination volume was
$215.5 million for the trailing twelve months, with a servicing portfolio of$1.37 billion .
Earnings Highlights | Three Months Ended | Twelve Months Ended | ||||||||||||||||
($ in thousands, except per share & ratios) | % Change | % Change | ||||||||||||||||
Operating revenue | $ | 15,115 | $ | 14,613 | 3.4 | % | $ | 56,994 | $ | 57,630 | -1.1 | % | ||||||
Interest income | 15,126 | 12,937 | 16.9 | % | 58,152 | 44,569 | 30.5 | % | ||||||||||
Interest expense | 5,542 | 2,037 | 172.1 | % | 18,879 | 5,170 | 265.2 | % | ||||||||||
Net interest income | 9,584 | 10,900 | -12.1 | % | 39,273 | 39,399 | -0.3 | % | ||||||||||
Provision for credit losses | (74 | ) | - | 0.0 | % | 315 | - | 0.0 | % | |||||||||
Noninterest income | 5,531 | 3,713 | 49.0 | % | 17,721 | 18,231 | -2.8 | % | ||||||||||
Noninterest expense | 10,369 | 10,269 | 1.0 | % | 41,962 | 42,314 | -0.8 | % | ||||||||||
Net income | 3,883 | 3,533 | 9.9 | % | 12,095 | 12,521 | -3.4 | % | ||||||||||
Earnings per diluted share | 0.57 | 0.50 | 14.0 | % | 1.75 | 1.77 | -1.1 | % | ||||||||||
Return on average assets | 1.17 | % | 1.08 | % | 8.3 | % | 0.91 | % | 0.95 | % | -4.2 | % | ||||||
Return on average equity | 13.23 | % | 12.17 | % | 8.7 | % | 10.22 | % | 9.86 | % | 3.7 | % | ||||||
“We demonstrated our resilience and operational strength throughout the fourth quarter of 2023," stated
RESULTS OF OPERATIONS
Consolidated Revenue
Total operating revenue, which includes both net interest income and noninterest income, showed a notable increase of 10.3 percent compared to the linked quarter and a 3.4 percent increase over the same quarter last year. Specifically, net interest income rose by 0.5 percent from the linked quarter, although it decreased by 12.1 percent from the year-ago quarter. The net interest margin saw a slight increase of 2 basis points from the linked quarter but experienced a decrease of 50 basis points when compared to the prior-year quarter. These changes in net interest income and margin primarily resulted from higher costs associated with deposits and funding.
In terms of noninterest income, we observed significant growth, increasing by 32.9 percent from the linked quarter and by 49.0 percent from the prior year quarter, largely due to our opportunistic decision to sell equity securities , resulting in a
Mortgage Loan Business
Mortgage loan originations for the fourth quarter of 2023 stood at
For the full year of 2023,
Net mortgage banking revenue for the quarter was
"In a year marked by fluctuating interest rates and heightened market sensitivity, our mortgage loan business has showcased remarkable resilience," said
Mortgage Banking | |||||||||||||||||||
($ in thousands) | Prior Year Growth | ||||||||||||||||||
Mortgage originations | $ | 39,566 | $ | 61,200 | $ | 65,387 | $ | 49,366 | $ | 51,219 | $ | (11,653 | ) | ||||||
Mortgage sales | 33,362 | 54,085 | 47,933 | 25,803 | 23,590 | 9,772 | |||||||||||||
Mortgage servicing portfolio | 1,366,667 | 1,367,209 | 1,353,904 | 1,344,158 | 1,352,016 | 14,651 | |||||||||||||
Mortgage servicing rights | 13,906 | 13,893 | 13,723 | 13,548 | 13,503 | 403 | |||||||||||||
Mortgage servicing revenue | |||||||||||||||||||
Loan servicing fees | 855 | 850 | 844 | 844 | 851 | 4 | |||||||||||||
OMSR amortization | (282 | ) | (334 | ) | (334 | ) | (292 | ) | (310 | ) | 28 | ||||||||
Net administrative fees | 573 | 516 | 510 | 552 | 541 | 32 | |||||||||||||
OMSR valuation adjustment | (12 | ) | (78 | ) | (16 | ) | 56 | 86 | (98 | ) | |||||||||
Net loan servicing fees | 561 | 438 | 494 | 608 | 627 | (66 | ) | ||||||||||||
Gain on sale of mortgages | 747 | 1,207 | 1,056 | 599 | 550 | 197 | |||||||||||||
Mortgage banking revenue, net | $ | 1,308 | $ | 1,645 | $ | 1,550 | $ | 1,207 | $ | 1,177 | $ | 131 | |||||||
Noninterest Income and Noninterest Expense
Noninterest income for the quarter increased from the prior year quarter by 49.0 percent and increased by 32.9 percent from the linked quarter, reflective of the equity sale discussed earlier. Gain-on-sale yields on mortgage loans increased
For the fourth quarter of 2023,
"Our noninterest income, always one of our strengths, was up over the same period last year and compared to the linked quarter,"
Noninterest Income/Noninterest Expense | ||||||||||||||||||||
($ in thousands, except ratios) | Prior Year Growth | |||||||||||||||||||
Noninterest Income (NII) | $ | 5,531 | $ | 4,163 | $ | 4,361 | $ | 3,666 | $ | 3,713 | $ | 1,818 | ||||||||
NII / Total Revenue | 36.6 | % | 30.4 | % | 30.7 | % | 26.2 | % | 25.4 | % | 11.2 | % | ||||||||
NII / Average Assets | 1.7 | % | 1.2 | % | 1.3 | % | 1.1 | % | 1.1 | % | 0.6 | % | ||||||||
Total Revenue Growth | 3.4 | % | -5.3 | % | -0.5 | % | -2.0 | % | -6.7 | % | 3.4 | % | ||||||||
Noninterest Expense (NIE) | $ | 10,369 | $ | 10,481 | $ | 10,339 | $ | 10,773 | $ | 10,269 | $ | 100 | ||||||||
Efficiency Ratio | 68.4 | % | 76.4 | % | 72.7 | % | 76.9 | % | 70.2 | % | -1.8 | % | ||||||||
NIE / Average Assets | 3.1 | % | 3.1 | % | 3.1 | % | 3.2 | % | 3.1 | % | 0.0 | % | ||||||||
Net Noninterest Expense/Avg. Assets | -1.4 | % | -1.9 | % | -1.8 | % | -2.1 | % | -2.0 | % | 0.6 | % | ||||||||
Total Expense Growth | 1.0 | % | 0.9 | % | -4.3 | % | -0.8 | % | -11.2 | % | 1.0 | % | ||||||||
Balance Sheet
As of
Total shareholders’ equity increased to
"As we cap off 2023, our commitment to disciplined growth and robust asset quality has once again proven effective," said
Loan Balances | ||||||||||||||||||
($ in thousands, except ratios) | Annual Growth | |||||||||||||||||
Commercial | $ | 126,718 | $ | 120,325 | $ | 123,226 | $ | 126,066 | $ | 128,393 | $ | (1,675 | ) | |||||
% of Total | 12.7 | % | 12.2 | % | 12.5 | % | 12.9 | % | 13.3 | % | -1.3 | % | ||||||
Commercial RE | 424,041 | 421,736 | 417,412 | 419,024 | 412,809 | 11,232 | ||||||||||||
% of Total | 42.4 | % | 42.6 | % | 42.4 | % | 42.9 | % | 42.9 | % | 2.7 | % | ||||||
Agriculture | 65,657 | 60,928 | 58,222 | 57,761 | 64,505 | 1,152 | ||||||||||||
% of Total | 6.6 | % | 6.2 | % | 5.9 | % | 5.9 | % | 6.7 | % | 1.8 | % | ||||||
Residential RE | 318,123 | 320,306 | 321,365 | 309,684 | 291,368 | 26,755 | ||||||||||||
% of Total | 31.8 | % | 32.4 | % | 32.6 | % | 31.7 | % | 30.3 | % | 9.2 | % | ||||||
Consumer & Other | 65,673 | 65,726 | 64,599 | 63,777 | 65,000 | 673 | ||||||||||||
% of Total | 6.6 | % | 6.6 | % | 6.6 | % | 6.5 | % | 6.8 | % | 1.0 | % | ||||||
Total Loans | $ | 1,000,212 | $ | 989,021 | $ | 984,824 | $ | 976,312 | $ | 962,075 | $ | 38,137 | ||||||
Total Growth Percentage | 4.0 | % | ||||||||||||||||
Deposit Balances | ||||||||||||||||||
($ in thousands, except ratios) | Annual Growth | |||||||||||||||||
Non-Int DDA | $ | 228,713 | $ | 224,182 | $ | 218,411 | $ | 237,175 | $ | 256,799 | $ | (28,086 | ) | |||||
% of Total | 21.4 | % | 20.7 | % | 20.4 | % | 21.4 | % | 23.6 | % | -10.9 | % | ||||||
Interest DDA | 166,413 | 174,729 | 170,282 | 188,497 | 191,719 | (25,306 | ) | |||||||||||
% of Total | 15.5 | % | 16.1 | % | 15.9 | % | 17.0 | % | 17.6 | % | -13.2 | % | ||||||
Savings | 216,965 | 226,077 | 225,065 | 227,974 | 191,272 | 25,693 | ||||||||||||
% of Total | 20.3 | % | 20.8 | % | 21.0 | % | 20.5 | % | 17.6 | % | 13.4 | % | ||||||
Money Market | 202,605 | 216,565 | 217,681 | 222,203 | 255,995 | (53,390 | ) | |||||||||||
% of Total | 18.9 | % | 20.0 | % | 20.3 | % | 20.0 | % | 23.6 | % | -20.9 | % | ||||||
Time Deposits | 255,509 | 243,766 | 239,717 | 234,295 | 190,880 | 64,629 | ||||||||||||
% of Total | 23.9 | % | 22.5 | % | 22.4 | % | 21.1 | % | 17.6 | % | 33.9 | % | ||||||
Total Deposits | $ | 1,070,205 | $ | 1,085,319 | $ | 1,071,156 | $ | 1,110,144 | $ | 1,086,665 | $ | (16,460 | ) | |||||
Total Growth Percentage | -1.5 | % | ||||||||||||||||
Asset Quality
Furthermore, the coverage ratio for problem loans has seen a remarkable improvement, up by 185 basis points from the previous year to 560 percent. This improvement in the coverage ratio is a direct result of proactive measures in asset quality management. It includes the expansion of the allowance for credit losses, which followed a Current Expected Credit Loss (CECL) adjustment of
Nonperforming Assets | Annual Change | |||||||||||||||||
($ in thousands, except ratios) | ||||||||||||||||||
Commercial & Agriculture | $ | 748 | $ | 717 | $ | 170 | $ | 185 | $ | 114 | $ | 634 | ||||||
% of Total Com./Ag. loans | 0.39 | % | 0.40 | % | 0.09 | % | 0.10 | % | 0.06 | % | 556.1 | % | ||||||
Commercial RE | 168 | 222 | 192 | 199 | 210 | (42 | ) | |||||||||||
% of Total CRE loans | 0.04 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.05 | % | -20.0 | % | ||||||
Residential RE | 1,690 | 2,182 | 2,266 | 2,742 | 3,020 | (1,330 | ) | |||||||||||
% of Total Res. RE loans | 0.53 | % | 0.68 | % | 0.71 | % | 0.89 | % | 1.04 | % | -44.0 | % | ||||||
Consumer & Other | 212 | 208 | 282 | 270 | 338 | (126 | ) | |||||||||||
% of Total Con./Oth. loans | 0.32 | % | 0.32 | % | 0.44 | % | 0.42 | % | 0.52 | % | -37.3 | % | ||||||
Total Nonaccruing Loans | 2,818 | 3,329 | 2,910 | 3,396 | 3,682 | (864 | ) | |||||||||||
% of Total loans | 0.28 | % | 0.34 | % | 0.30 | % | 0.35 | % | 0.38 | % | -23.5 | % | ||||||
Foreclosed Assets and Other Assets | 511 | 629 | 625 | 650 | 777 | (266 | ) | |||||||||||
Total Change (%) | -34.2 | % | ||||||||||||||||
Total Nonperforming Assets | $ | 3,329 | $ | 3,958 | $ | 3,535 | $ | 4,046 | $ | 4,459 | $ | (1,130 | ) | |||||
% of Total assets | 0.25 | % | 0.30 | % | 0.26 | % | 0.30 | % | 0.33 | % | -25.34 | % | ||||||
Webcast and Conference Call
The Company will hold the fourth quarter 2023 earnings conference call and webcast on
About
Headquartered in
In
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
Investor Contact Information:
Chairman, President and
Chief Executive Officer
Mark.Klein@YourStateBank.com
Executive Vice President and
Chief Financial Officer
Tony.Cosentino@YourStateBank.com
CONSOLIDATED BALANCE SHEETS - (Unaudited) | |||||||||||||||||||||||
December | September | June | March | December | |||||||||||||||||||
($ in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and due from banks | $ | 22,965 | $ | 19,049 | $ | 20,993 | $ | 21,625 | $ | 27,817 | |||||||||||||
Interest bearing time deposits | 1,535 | 1,180 | 1,180 | 1,380 | 2,131 | ||||||||||||||||||
Available-for-sale securities | 219,708 | 212,768 | 227,996 | 237,607 | 238,780 | ||||||||||||||||||
Loans held for sale | 2,525 | 3,206 | 5,684 | 5,592 | 2,073 | ||||||||||||||||||
Loans, net of unearned income | 1,000,212 | 989,021 | 984,824 | 976,312 | 962,075 | ||||||||||||||||||
Allowance for credit losses | (15,786 | ) | (15,790 | ) | (15,795 | ) | (15,442 | ) | (13,818 | ) | |||||||||||||
Premises and equipment, net | 21,378 | 21,934 | 22,230 | 22,621 | 22,829 | ||||||||||||||||||
7,279 | 6,261 | 7,634 | 6,054 | 6,326 | |||||||||||||||||||
Foreclosed assets and other assets | 511 | 629 | 625 | 650 | 777 | ||||||||||||||||||
Interest receivable | 4,657 | 4,457 | 4,079 | 3,926 | 4,091 | ||||||||||||||||||
23,239 | 23,239 | 23,239 | 23,239 | 23,239 | |||||||||||||||||||
Cash value of life insurance | 29,121 | 29,291 | 29,183 | 29,024 | 28,870 | ||||||||||||||||||
Mortgage servicing rights | 13,906 | 13,893 | 13,723 | 13,548 | 13,503 | ||||||||||||||||||
Other assets | 11,137 | 17,336 | 15,840 | 15,157 | 16,940 | ||||||||||||||||||
Total assets | $ | 1,342,387 | $ | 1,326,474 | $ | 1,341,435 | $ | 1,341,293 | $ | 1,335,633 | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Non interest bearing demand | $ | 228,713 | $ | 224,182 | $ | 218,411 | $ | 237,175 | $ | 256,799 | |||||||||||||
Interest bearing demand | 166,413 | 174,729 | 170,282 | 188,497 | 191,719 | ||||||||||||||||||
Savings | 216,965 | 226,077 | 225,065 | 227,974 | 191,272 | ||||||||||||||||||
Money market | 202,605 | 216,565 | 217,681 | 222,203 | 255,995 | ||||||||||||||||||
Time deposits | 255,509 | 243,766 | 239,717 | 234,295 | 190,880 | ||||||||||||||||||
Total deposits | 1,070,205 | 1,085,319 | 1,071,156 | 1,110,144 | 1,086,665 | ||||||||||||||||||
Short-term borrowings | 13,387 | 16,519 | 21,118 | 15,998 | 14,923 | ||||||||||||||||||
83,600 | 59,500 | 81,300 | 44,500 | 60,000 | |||||||||||||||||||
Trust preferred securities | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||||||||||
Subordinated debt net of issuance costs | 19,642 | 19,630 | 19,618 | 19,606 | 19,594 | ||||||||||||||||||
Interest payable | 2,443 | 2,216 | 1,866 | 1,441 | 769 | ||||||||||||||||||
Other liabilities | 18,458 | 20,632 | 18,401 | 19,535 | 24,944 | ||||||||||||||||||
Total liabilities | 1,218,045 | 1,214,126 | 1,223,769 | 1,221,534 | 1,217,205 | ||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||||
Common stock | 61,319 | 61,319 | 61,319 | 61,319 | 61,319 | ||||||||||||||||||
Additional paid-in capital | 15,124 | 15,037 | 15,154 | 14,953 | 15,087 | ||||||||||||||||||
Retained earnings | 108,486 | 105,521 | 103,725 | 101,548 | 101,966 | ||||||||||||||||||
Accumulated other comprehensive loss | (29,831 | ) | (39,517 | ) | (32,894 | ) | (29,671 | ) | (32,120 | ) | |||||||||||||
(30,756 | ) | (30,012 | ) | (29,638 | ) | (28,390 | ) | (27,824 | ) | ||||||||||||||
Total shareholders' equity | 124,342 | 112,348 | 117,666 | 119,759 | 118,428 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,342,387 | $ | 1,326,474 | $ | 1,341,435 | $ | 1,341,293 | $ | 1,335,633 | |||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited) | ||||||||||||||||||||||||||
($ in thousands, except per share & ratios) | At and for the Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
December | September | June | March | December | December | December | ||||||||||||||||||||
Interest income | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Loans | ||||||||||||||||||||||||||
Taxable | $ | 13,438 | $ | 13,128 | $ | 12,715 | $ | 12,126 | $ | 11,222 | $ | 51,407 | $ | 38,238 | ||||||||||||
Tax exempt | 124 | 122 | 121 | 116 | 109 | 483 | 335 | |||||||||||||||||||
Securities | ||||||||||||||||||||||||||
Taxable | 1,526 | 1,507 | 1,524 | 1,535 | 1,559 | 6,092 | 5,798 | |||||||||||||||||||
Tax exempt | 38 | 39 | 46 | 47 | 47 | 170 | 198 | |||||||||||||||||||
Total interest income | 15,126 | 14,796 | 14,406 | 13,824 | 12,937 | 58,152 | 44,569 | |||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Deposits | 4,398 | 4,194 | 3,538 | 2,578 | 1,440 | 14,708 | 3,477 | |||||||||||||||||||
Repurchase agreements & other | 39 | 16 | 9 | 10 | 7 | 74 | 39 | |||||||||||||||||||
720 | 666 | 664 | 553 | 258 | 2,603 | 515 | ||||||||||||||||||||
Trust preferred securities | 191 | 189 | 172 | 164 | 138 | 716 | 361 | |||||||||||||||||||
Subordinated debt | 194 | 195 | 194 | 195 | 194 | 778 | 778 | |||||||||||||||||||
Total interest expense | 5,542 | 5,260 | 4,577 | 3,500 | 2,037 | 18,879 | 5,170 | |||||||||||||||||||
Net interest income | 9,584 | 9,536 | 9,829 | 10,324 | 10,900 | 39,273 | 39,399 | |||||||||||||||||||
Provision for credit losses | (74 | ) | (6 | ) | 145 | 250 | - | 315 | - | |||||||||||||||||
Net interest income after provision | ||||||||||||||||||||||||||
for loan losses | 9,658 | 9,542 | 9,684 | 10,074 | 10,900 | 38,958 | 39,399 | |||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||
Wealth management fees | 838 | 837 | 940 | 917 | 907 | 3,532 | 3,728 | |||||||||||||||||||
Customer service fees | 844 | 863 | 871 | 825 | 880 | 3,403 | 3,378 | |||||||||||||||||||
Gain on sale of mtg. loans & OMSR | 747 | 1,207 | 1,056 | 599 | 550 | 3,609 | 4,298 | |||||||||||||||||||
Mortgage loan servicing fees, net | 561 | 438 | 494 | 608 | 627 | 2,101 | 2,964 | |||||||||||||||||||
Gain on sale of non-mortgage loans | 177 | 10 | 218 | 24 | 105 | 429 | 566 | |||||||||||||||||||
Title insurance revenue | 378 | 429 | 455 | 373 | 454 | 1,635 | 2,229 | |||||||||||||||||||
Net gain on sales of securities | 1,453 | - | - | - | - | 1,453 | - | |||||||||||||||||||
Gain (loss) on sale of assets | 16 | - | 15 | (11 | ) | 18 | 20 | 61 | ||||||||||||||||||
Other | 517 | 379 | 312 | 331 | 172 | 1,539 | 1,007 | |||||||||||||||||||
Total noninterest income | 5,531 | 4,163 | 4,361 | 3,666 | 3,713 | 17,721 | 18,231 | |||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||
Salaries and employee benefits | 5,652 | 5,491 | 5,721 | 5,913 | 5,677 | 22,777 | 24,142 | |||||||||||||||||||
Net occupancy expense | 746 | 764 | 802 | 784 | 763 | 3,096 | 2,993 | |||||||||||||||||||
Equipment expense | 1,027 | 1,068 | 1,002 | 981 | 1,017 | 4,078 | 3,616 | |||||||||||||||||||
Data processing fees | 680 | 648 | 685 | 646 | 627 | 2,659 | 2,510 | |||||||||||||||||||
Professional fees | 926 | 623 | 612 | 863 | 738 | 3,024 | 3,214 | |||||||||||||||||||
Marketing expense | 182 | 189 | 213 | 198 | 258 | 782 | 911 | |||||||||||||||||||
Telephone and communication expense | 132 | 124 | 124 | 121 | 124 | 501 | 474 | |||||||||||||||||||
Postage and delivery expense | 167 | 100 | 78 | 87 | 121 | 432 | 422 | |||||||||||||||||||
State, local and other taxes | 285 | 218 | 218 | 228 | 277 | 949 | 1,082 | |||||||||||||||||||
Employee expense | 146 | 141 | 156 | 188 | 157 | 631 | 613 | |||||||||||||||||||
Other expenses | 426 | 1,115 | 728 | 764 | 510 | 3,033 | 2,337 | |||||||||||||||||||
Total noninterest expense | 10,369 | 10,481 | 10,339 | 10,773 | 10,269 | 41,962 | 42,314 | |||||||||||||||||||
Income before income tax expense | 4,820 | 3,224 | 3,706 | 2,967 | 4,345 | 14,717 | 15,315 | |||||||||||||||||||
Income tax expense | 937 | 537 | 631 | 517 | 812 | 2,622 | 2,794 | |||||||||||||||||||
Net income | $ | 3,883 | $ | 2,687 | $ | 3,075 | $ | 2,450 | $ | 3,533 | $ | 12,095 | $ | 12,521 | ||||||||||||
Common share data: | ||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.58 | $ | 0.40 | $ | 0.45 | $ | 0.35 | $ | 0.51 | $ | 1.77 | $ | 1.79 | ||||||||||||
Diluted earnings per common share | $ | 0.57 | $ | 0.39 | $ | 0.44 | $ | 0.35 | $ | 0.50 | $ | 1.75 | $ | 1.77 | ||||||||||||
Average shares outstanding (in thousands): | ||||||||||||||||||||||||||
Basic: | 6,748 | 6,791 | 6,847 | 6,933 | 6,945 | 6,829 | 7,005 | |||||||||||||||||||
Diluted: | 6,851 | 6,878 | 6,910 | 7,008 | 7,021 | 6,917 | 7,078 | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) | ||||||||||||||||||||||||||||
($ in thousands, except per share & ratios) | At and for the Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
December | September | June | March | December | December | December | ||||||||||||||||||||||
SUMMARY OF OPERATIONS | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
Net interest income | $ | 9,584 | $ | 9,536 | $ | 9,829 | $ | 10,324 | $ | 10,900 | $ | 39,273 | $ | 39,399 | ||||||||||||||
Tax-equivalent adjustment | 43 | 43 | 44 | 43 | 41 | 174 | 142 | |||||||||||||||||||||
Tax-equivalent net interest income | 9,627 | 9,579 | 9,873 | 10,367 | 10,941 | 39,447 | 39,541 | |||||||||||||||||||||
Provision for credit loss | (74 | ) | (6 | ) | 145 | 250 | - | 315 | - | |||||||||||||||||||
Noninterest income | 5,531 | 4,163 | 4,361 | 3,666 | 3,713 | 17,721 | 18,231 | |||||||||||||||||||||
Total operating revenue | 15,115 | 13,699 | 14,190 | 13,990 | 14,613 | 56,994 | 57,630 | |||||||||||||||||||||
Noninterest expense | 10,369 | 10,481 | 10,339 | 10,773 | 10,269 | 41,962 | 42,314 | |||||||||||||||||||||
Pre-tax pre-provision income | 4,746 | 3,218 | 3,851 | 3,217 | 4,344 | 15,032 | 15,316 | |||||||||||||||||||||
Pretax income | 4,820 | 3,224 | 3,706 | 2,967 | 4,344 | 14,717 | 15,316 | |||||||||||||||||||||
Net income | 3,883 | 2,687 | 3,075 | 2,450 | 3,533 | 12,095 | 12,521 | |||||||||||||||||||||
PER SHARE INFORMATION: | ||||||||||||||||||||||||||||
Basic earnings per share (EPS) | 0.58 | 0.40 | 0.45 | 0.35 | 0.51 | 1.77 | 1.79 | |||||||||||||||||||||
Diluted earnings per share | 0.57 | 0.39 | 0.44 | 0.35 | 0.50 | 1.75 | 1.77 | |||||||||||||||||||||
Common dividends | 0.135 | 0.130 | 0.130 | 0.125 | 0.125 | 0.520 | 0.480 | |||||||||||||||||||||
Book value per common share | 18.50 | 16.59 | 17.30 | 17.37 | 17.08 | 18.50 | 17.08 | |||||||||||||||||||||
Tangible book value per common share (TBV) | 14.98 | 13.09 | 13.81 | 13.93 | 13.65 | 14.98 | 13.65 | |||||||||||||||||||||
Market price per common share | 15.35 | 13.50 | 12.62 | 14.13 | 16.95 | 15.35 | 16.95 | |||||||||||||||||||||
Market price to TBV | 102.5 | % | 103.1 | % | 91.4 | % | 101.4 | % | 124.2 | % | 102.5 | % | 124.2 | % | ||||||||||||||
Market price to trailing 12 month EPS | 8.8 | 8.0 | 7.1 | 8.2 | 9.6 | 8.8 | 9.6 | |||||||||||||||||||||
PERFORMANCE RATIOS: | ||||||||||||||||||||||||||||
Return on average assets (ROAA) | 1.17 | % | 0.80 | % | 0.91 | % | 0.73 | % | 1.07 | % | 0.91 | % | 0.95 | % | ||||||||||||||
Pre-tax pre-provision ROAA | 1.43 | % | 0.96 | % | 1.14 | % | 0.96 | % | 1.32 | % | 1.21 | % | 1.25 | % | ||||||||||||||
Return on average equity | 13.23 | % | 9.25 | % | 10.32 | % | 8.22 | % | 12.17 | % | 10.22 | % | 9.86 | % | ||||||||||||||
Return on average tangible equity | 16.57 | % | 11.62 | % | 12.89 | % | 10.26 | % | 15.30 | % | 12.78 | % | 12.14 | % | ||||||||||||||
Efficiency ratio | 68.44 | % | 76.34 | % | 72.71 | % | 76.85 | % | 70.16 | % | 73.47 | % | 73.31 | % | ||||||||||||||
Earning asset yield | 4.89 | % | 4.78 | % | 4.61 | % | 4.49 | % | 4.27 | % | 4.67 | % | 3.63 | % | ||||||||||||||
Cost of interest bearing liabilities | 2.33 | % | 2.18 | % | 1.90 | % | 1.46 | % | 0.90 | % | 1.97 | % | 0.56 | % | ||||||||||||||
Net interest margin | 3.10 | % | 3.08 | % | 3.15 | % | 3.35 | % | 3.60 | % | 3.15 | % | 3.21 | % | ||||||||||||||
Tax equivalent effect | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||
Net interest margin, tax equivalent | 3.11 | % | 3.09 | % | 3.16 | % | 3.37 | % | 3.61 | % | 3.16 | % | 3.22 | % | ||||||||||||||
Non interest income/Average assets | 1.67 | % | 1.24 | % | 1.30 | % | 1.10 | % | 1.13 | % | 1.33 | % | 1.38 | % | ||||||||||||||
Non interest expense/Average assets | 3.12 | % | 3.13 | % | 3.07 | % | 3.23 | % | 3.13 | % | 3.14 | % | 3.21 | % | ||||||||||||||
Net noninterest expense/Average assets | -1.46 | % | -1.89 | % | -1.78 | % | -2.13 | % | -2.00 | % | -1.82 | % | -1.83 | % | ||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||
Gross charge-offs | 5 | 12 | 32 | 69 | 7 | 118 | 34 | |||||||||||||||||||||
Recoveries | 1 | 7 | 10 | 8 | 1 | 26 | 47 | |||||||||||||||||||||
Net charge-offs | 4 | 5 | 22 | 61 | 6 | 92 | (13 | ) | ||||||||||||||||||||
Nonperforming loans/Total loans | 0.28 | % | 0.34 | % | 0.30 | % | 0.35 | % | 0.38 | % | 0.28 | % | 0.38 | % | ||||||||||||||
Nonperforming assets/Loans & OREO | 0.33 | % | 0.40 | % | 0.36 | % | 0.41 | % | 0.46 | % | 0.33 | % | 0.46 | % | ||||||||||||||
Nonperforming assets/Total assets | 0.25 | % | 0.30 | % | 0.26 | % | 0.30 | % | 0.33 | % | 0.25 | % | 0.33 | % | ||||||||||||||
Allowance for credit loss/Nonperforming loans | 560.18 | % | 474.32 | % | 542.78 | % | 454.71 | % | 375.29 | % | 560.18 | % | 375.29 | % | ||||||||||||||
Allowance for credit loss/Total loans | 1.58 | % | 1.60 | % | 1.60 | % | 1.58 | % | 1.44 | % | 1.58 | % | 1.44 | % | ||||||||||||||
Net loan charge-offs/Average loans (ann.) | 0.00 | % | 0.00 | % | 0.01 | % | 0.03 | % | 0.00 | % | 0.01 | % | (0.00 | %) | ||||||||||||||
CAPITAL & LIQUIDITY RATIOS: | ||||||||||||||||||||||||||||
Loans/ Deposits | 93.46 | % | 91.13 | % | 91.94 | % | 87.94 | % | 88.53 | % | 93.46 | % | 88.53 | % | ||||||||||||||
Equity/ Assets | 9.26 | % | 8.47 | % | 8.77 | % | 8.93 | % | 8.87 | % | 9.26 | % | 8.87 | % | ||||||||||||||
Tangible equity/Tangible assets | 7.63 | % | 6.81 | % | 7.13 | % | 7.29 | % | 7.22 | % | 7.63 | % | 7.22 | % | ||||||||||||||
Common equity tier 1 ratio (Bank) | 13.42 | % | 13.56 | % | 13.18 | % | 13.44 | % | 13.42 | % | 13.42 | % | 13.42 | % | ||||||||||||||
END OF PERIOD BALANCES | ||||||||||||||||||||||||||||
Total assets | 1,342,387 | 1,326,474 | 1,341,435 | 1,341,293 | 1,335,633 | 1,342,387 | 1,335,633 | |||||||||||||||||||||
Total loans | 1,000,212 | 989,021 | 984,824 | 976,312 | 962,075 | 1,000,212 | 962,075 | |||||||||||||||||||||
Deposits | 1,070,205 | 1,085,319 | 1,071,156 | 1,110,144 | 1,086,665 | 1,070,205 | 1,086,665 | |||||||||||||||||||||
Shareholders equity | 124,342 | 112,348 | 117,666 | 119,759 | 118,428 | 124,342 | 118,428 | |||||||||||||||||||||
Goodwill and intangibles | 23,662 | 23,687 | 23,710 | 23,732 | 23,753 | 23,662 | 23,753 | |||||||||||||||||||||
Tangible equity | 100,680 | 88,661 | 93,956 | 96,027 | 94,675 | 100,680 | 94,675 | |||||||||||||||||||||
Mortgage servicing portfolio | 1,366,667 | 1,367,209 | 1,353,904 | 1,344,158 | 1,352,016 | 1,366,667 | 1,352,016 | |||||||||||||||||||||
Wealth/Brokerage assets under care | 501,829 | 478,236 | 499,255 | 518,009 | 507,093 | 501,829 | 507,093 | |||||||||||||||||||||
Total assets under care | 3,210,883 | 3,171,919 | 3,194,594 | 3,203,460 | 3,194,742 | 3,210,883 | 3,194,742 | |||||||||||||||||||||
Full-time equivalent employees | 251 | 252 | 253 | 255 | 268 | 251 | 268 | |||||||||||||||||||||
Period end common shares outstanding | 6,720 | 6,773 | 6,803 | 6,894 | 6,935 | 6,720 | 6,935 | |||||||||||||||||||||
Market capitalization (all) | 103,147 | 91,437 | 85,857 | 97,419 | 117,556 | 103,147 | 117,556 | |||||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||
Total assets | 1,327,415 | 1,339,870 | 1,346,010 | 1,335,056 | 1,314,419 | 1,334,644 | 1,318,781 | |||||||||||||||||||||
Total earning assets | 1,236,165 | 1,239,145 | 1,248,813 | 1,232,018 | 1,211,674 | 1,246,531 | 1,226,771 | |||||||||||||||||||||
Total loans | 992,337 | 989,089 | 988,348 | 970,813 | 937,898 | 985,217 | 888,116 | |||||||||||||||||||||
Deposits | 1,084,939 | 1,095,414 | 1,100,344 | 1,098,935 | 1,094,491 | 1,094,547 | 1,105,571 | |||||||||||||||||||||
Shareholders equity | 117,397 | 116,165 | 119,177 | 119,237 | 116,114 | 118,315 | 126,963 | |||||||||||||||||||||
Goodwill and intangibles | 23,675 | 23,698 | 23,721 | 23,743 | 23,761 | 23,709 | 23,783 | |||||||||||||||||||||
Tangible equity | 93,722 | 92,467 | 95,456 | 95,494 | 92,353 | 94,606 | 103,180 | |||||||||||||||||||||
Average basic shares outstanding | 6,748 | 6,791 | 6,847 | 6,933 | 6,945 | 6,829 | 7,005 | |||||||||||||||||||||
Average diluted shares outstanding | 6,851 | 6,878 | 6,910 | 7,008 | 7,021 | 6,917 | 7,078 | |||||||||||||||||||||
Rate Volume Analysis - (Unaudited) | ||||||||||||||||||
For the Three & Twelve Months Ended | ||||||||||||||||||
($ in thousands) | Three Months Ended | Three Months Ended | ||||||||||||||||
Average | Average | Average | Average | |||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
Taxable securities/cash | $ | 237,203 | $ | 1,526 | 2.57 | % | $ | 265,711 | $ | 1,559 | 2.35 | % | ||||||
Nontaxable securities | 6,625 | 38 | 2.29 | % | 8,065 | 47 | 2.33 | % | ||||||||||
Loans, net | 992,337 | 13,562 | 5.47 | % | 937,898 | 11,331 | 4.83 | % | ||||||||||
Total earning assets | 1,236,165 | 15,126 | 4.89 | % | 1,211,674 | 12,937 | 4.27 | % | ||||||||||
Cash and due from banks | 4,077 | 7,052 | ||||||||||||||||
Allowance for loan losses | (15,787 | ) | (13,820 | ) | ||||||||||||||
Premises and equipment | 22,205 | 23,757 | ||||||||||||||||
Other assets | 80,755 | 85,756 | ||||||||||||||||
Total assets | $ | 1,327,415 | $ | 1,314,419 | ||||||||||||||
Liabilities | ||||||||||||||||||
Savings, MMDA and interest bearing demand | $ | 601,034 | $ | 2,232 | 1.49 | % | $ | 646,498 | $ | 965 | 0.60 | % | ||||||
Time deposits | 247,382 | 2,166 | 3.50 | % | 180,678 | 475 | 1.05 | % | ||||||||||
Repurchase agreements & other | 13,359 | 39 | 1.17 | % | 18,058 | 7 | 0.16 | % | ||||||||||
Advances from | 58,330 | 720 | 4.94 | % | 29,078 | 258 | 3.55 | % | ||||||||||
Trust preferred securities | 10,310 | 191 | 7.41 | % | 10,310 | 138 | 5.35 | % | ||||||||||
Subordinated debt | 19,634 | 194 | 3.95 | % | 19,588 | 194 | 3.96 | % | ||||||||||
Total interest bearing liabilities | 950,049 | 5,542 | 2.33 | % | 904,210 | 2,037 | 0.90 | % | ||||||||||
Non interest bearing demand | 236,523 | - | 267,315 | - | ||||||||||||||
Total funding | 1,186,572 | 1.87 | % | 1,171,525 | 0.70 | % | ||||||||||||
Other liabilities | 23,446 | 26,780 | ||||||||||||||||
Total liabilities | 1,210,018 | 1,198,305 | ||||||||||||||||
Equity | 117,397 | 116,114 | ||||||||||||||||
Total liabilities and equity | $ | 1,327,415 | $ | 1,314,419 | ||||||||||||||
Net interest income | $ | 9,584 | $ | 10,900 | ||||||||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure | 3.10 | % | 3.60 | % | ||||||||||||||
Net interest income as a percent of average interest-earning assets - non GAAP | 3.11 | % | 3.61 | % | ||||||||||||||
- Computed on a fully tax equivalent (FTE) basis | ||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | |||||||||||||||||
Average | Average | Average | Average | |||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
Taxable securities/cash | $ | 254,133 | $ | 6,092 | 2.40 | % | $ | 330,549 | $ | 5,798 | 1.75 | % | ||||||
Nontaxable securities | 7,181 | 170 | 2.37 | % | 8,106 | 198 | 2.44 | % | ||||||||||
Loans, net | 985,217 | 51,890 | 5.27 | % | 888,116 | 38,573 | 4.34 | % | ||||||||||
Total earning assets | 1,246,531 | 58,152 | 4.67 | % | 1,226,771 | 44,569 | 3.63 | % | ||||||||||
Cash and due from banks | 4,035 | 7,296 | ||||||||||||||||
Allowance for loan losses | (15,478 | ) | (13,808 | ) | ||||||||||||||
Premises and equipment | 22,990 | 24,137 | ||||||||||||||||
Other assets | 76,566 | 74,385 | ||||||||||||||||
Total assets | $ | 1,334,644 | $ | 1,318,781 | ||||||||||||||
Liabilities | ||||||||||||||||||
Savings, MMDA and interest bearing demand | $ | 619,906 | $ | 7,599 | 1.23 | % | $ | 693,271 | $ | 2,258 | 0.33 | % | ||||||
Time deposits | 236,665 | 7,109 | 3.00 | % | 159,401 | 1,219 | 0.76 | % | ||||||||||
Repurchase agreements & Other | 15,765 | 74 | 0.47 | % | 20,481 | 39 | 0.19 | % | ||||||||||
Advances from | 55,044 | 2,603 | 4.73 | % | 16,420 | 515 | 3.14 | % | ||||||||||
Trust preferred securities | 10,310 | 716 | 6.94 | % | 10,310 | 361 | 3.50 | % | ||||||||||
Subordinated debt | 19,616 | 778 | 3.97 | % | 19,570 | 778 | 3.98 | % | ||||||||||
Total interest bearing liabilities | 957,306 | 18,879 | 1.97 | % | 919,453 | 5,169 | 0.56 | % | ||||||||||
Non interest bearing demand | 237,976 | 1.58 | % | 252,899 | 0.44 | % | ||||||||||||
Total funding | 1,195,282 | 1,172,352 | ||||||||||||||||
Other liabilities | 21,047 | 19,466 | ||||||||||||||||
Total liabilities | 1,216,329 | 1,191,818 | ||||||||||||||||
Equity | 118,315 | 126,963 | ||||||||||||||||
Total liabilities and equity | $ | 1,334,644 | $ | 1,318,781 | ||||||||||||||
Net interest income | $ | 39,273 | $ | 39,400 | ||||||||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure | 3.15 | % | 3.21 | % | ||||||||||||||
Net interest income as a percent of average interest-earning assets - non GAAP | 3.16 | % | 3.22 | % | ||||||||||||||
- Computed on a fully tax equivalent (FTE) basis | ||||||||||||||||||
Non-GAAP reconciliation | Three Months Ended | Twelve Months Ended | ||||||||||||||
($ in thousands, except per share & ratios) | ||||||||||||||||
Total Operating Revenue | $ | 15,115 | $ | 14,613 | $ | 56,994 | $ | 57,630 | ||||||||
Adjustment to (deduct)/add OMSR recapture/impairment * | 12 | (86 | ) | 51 | (1,279 | ) | ||||||||||
Adjusted Total Operating Revenue | 15,127 | 14,527 | 57,045 | 56,351 | ||||||||||||
Income before Income Taxes | 4,820 | 4,345 | 14,717 | 15,316 | ||||||||||||
Adjustment for OMSR * | 12 | (86 | ) | 51 | (1,279 | ) | ||||||||||
Adjusted Income before Income Taxes | 4,832 | 4,259 | 14,768 | 14,037 | ||||||||||||
Provision for Income Taxes | 937 | 812 | 2,622 | 2,795 | ||||||||||||
Adjustment for OMSR ** | 3 | (18 | ) | 11 | (269 | ) | ||||||||||
Adjusted Provision for Income Taxes | 940 | 794 | 2,633 | 2,527 | ||||||||||||
Net Income | 3,883 | 3,533 | 12,095 | 12,521 | ||||||||||||
Adjustment for OMSR * | 9 | (68 | ) | 40 | (1,010 | ) | ||||||||||
Adjusted Net Income | 3,892 | 3,465 | 12,135 | 11,511 | ||||||||||||
Diluted Earnings per Share | 0.57 | 0.50 | 1.75 | 1.77 | ||||||||||||
Adjustment for OMSR * | 0.00 | (0.01 | ) | 0.01 | (0.14 | ) | ||||||||||
Adjusted Diluted Earnings per Share | $ | 0.57 | $ | 0.49 | $ | 1.75 | $ | 1.63 | ||||||||
Return on Average Assets | 1.17 | % | 1.08 | % | 0.91 | % | 0.95 | % | ||||||||
Adjustment for OMSR * | 0.00 | % | -0.02 | % | 0.00 | % | -0.08 | % | ||||||||
Adjusted Return on Average Assets | 1.17 | % | 1.05 | % | 0.91 | % | 0.87 | % | ||||||||
*valuation adjustment to the Company's mortgage servicing rights | ||||||||||||||||
**tax effect is calculated using a 21% statutory federal corporate income tax rate | ||||||||||||||||
Source:
2024 GlobeNewswire, Inc., source