Mid Penn Bancorp, Inc. Reports First Quarter Earnings Beat and Declares 54th Consecutive Quarterly Dividend
Key Highlights of the First Quarter of 2024:
-
Loan growth for the first quarter of 2024 was
$64.7 million , or 6.1% (annualized). Total loans increased$706.1 million compared to the first quarter of 2023. Excluding the Brunswick loans of$324.5 million acquired in 2023, organic loan growth for the quarter endedMarch 31, 2024 , from the quarter endedMarch 31, 2023 was$381.6 million or 10.6%.
-
Deposits increased
$32.9 million , or 3.0% (annualized), for the first quarter of 2024. Organic deposits increased$219.6 million , or 5.7% (excluding Brunswick acquisition deposits in 2023 of$281.4 million ) for the quarter endedMarch 31, 2024 , compared to the quarter endedMarch 31, 2023 .
-
Net income available to common shareholders increased 0.3% to
$12.1 million , or$0.73 per diluted common share, for the first quarter of 2024, compared to net income of$12.1 million , or$0.73 per diluted common share for the fourth quarter of 2023. Net income available to common shareholders increased 8.07% to$12.1 million , or$0.73 per diluted common share, for the first quarter of 2024, compared to net income of$11.2 million , or$0.71 per diluted common share, for the first quarter of 2023.
-
Tangible book value per common share increased to
$25.23 for the quarter endedMarch 31, 2024 , compared to$24.67 and$24.52 for the periods endedDecember 31, 2023 andMarch 31, 2023 , respectively.
-
Return on average assets was 0.92% and return on average equity was 8.94% for the quarter ended
March 31, 2024 , compared to return on average assets of 0.92% and return on average equity of 8.93% in the fourth quarter of 2023.
-
The Board declared a cash dividend of
$0.20 per share, payableMay 27, 2024 , to shareholders of record as ofMay 10, 2024 .
“With the continuation of the inverted yield curve, persistent escalation in funding costs and additional regional bank asset quality issues, we entered the first quarter expecting a daily fight simply to meet analyst expectations. The team at Mid Penn once again delivered with
Ritrievi continued, “At the time I am writing this, however, we are already almost a full month into another challenging quarter. While inflation persists, interest rate reductions - which could help normalize the interest rate curve - have been delayed. Now over 500 days inverted, the shape of the interest rate curve is a real concern for positive economic activity. It certainly has an impact on a community bank like Mid Penn, in that our net interest margin remains under considerable pressure. Adding to that concern are significant geopolitical tensions with conflicts in
“Throughout the current quarter and the rest of the year, Mid Penn will continue to execute the specific strategic plan I outlined three months ago. We will continue our focus on restrained growth while also restraining operating expenses," Ritrievi added. "Our laser focus on asset quality preservation never changes. It is a core tenet of how we do business. Even in the face of significant external trade winds, we are cautiously optimistic that we will continue to build on our first quarter success and ultimately deliver a 2024 performance in line with analysts' expectations.”
For the first quarter of 2024, the Board is pleased to announce a quarterly cash dividend of
Net Interest Income
For the three months ended
The yield on interest-earning assets increased to 5.51% for the quarter ended
Average Balances
Average loans increased
Deposits were
Asset Quality
The total provision for credit losses, including provision for credit losses on off-balance sheet credit exposures, was
The provision for credit losses on loans was
Total nonperforming assets were
Capital
Shareholders’ equity increased
On
Noninterest Income
For the three months ended
For the three months ended
Noninterest Expense
Total noninterest expense increased
For the three months ended
The efficiency ratio(1) was 68.8% in the first quarter of 2024, compared to 66.2% in the fourth quarter of 2023, and 62.6% in the first quarter of 2023. The change in the efficiency ratio during the first quarter of 2024 compared to the fourth quarter of 2023 was the result of higher noninterest income and slightly higher noninterest expenses, partially offset by lower net interest income, driven by the current interest rate environment. The change compared to the first quarter of 2023 was driven by growth in noninterest expense outpacing growth in net interest income, again due to the current rate environment. Mid Penn continues to evaluate levels of noninterest expense for opportunities to reduce operating costs throughout the organization.
Subsequent Events
Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the
(1) |
Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document. |
SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn’s portfolio; legislation affecting the financial services industry as a whole, and
For a more detailed description of these and other factors which would affect our results, please see Mid Penn’s filings with the
SUMMARY FINANCIAL HIGHLIGHTS (Unaudited):
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
||||||||||
Ending Balances: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
$ |
615,061 |
|
|
$ |
623,121 |
|
|
$ |
620,636 |
|
|
$ |
634,287 |
|
|
$ |
633,831 |
|
Loans, net of unearned interest |
|
4,317,449 |
|
|
|
4,252,792 |
|
|
|
4,145,657 |
|
|
|
4,034,510 |
|
|
|
3,611,347 |
|
Total assets |
|
5,330,379 |
|
|
|
5,290,792 |
|
|
|
5,214,718 |
|
|
|
5,087,568 |
|
|
|
4,583,465 |
|
Total deposits |
|
4,379,105 |
|
|
|
4,346,212 |
|
|
|
4,380,380 |
|
|
|
4,285,450 |
|
|
|
3,878,081 |
|
Shareholders' equity |
|
550,968 |
|
|
|
542,350 |
|
|
|
528,711 |
|
|
|
525,888 |
|
|
|
510,793 |
|
Average Balances: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
|
615,687 |
|
|
|
606,946 |
|
|
|
619,071 |
|
|
|
630,750 |
|
|
|
636,151 |
|
Loans, net of unearned interest |
|
4,293,828 |
|
|
|
4,201,092 |
|
|
|
4,053,514 |
|
|
|
3,808,717 |
|
|
|
3,555,375 |
|
Total assets |
|
5,319,680 |
|
|
|
5,226,382 |
|
|
|
5,106,103 |
|
|
|
4,827,786 |
|
|
|
4,520,869 |
|
Total deposits |
|
4,312,094 |
|
|
|
4,402,565 |
|
|
|
4,361,067 |
|
|
|
4,057,605 |
|
|
|
3,782,990 |
|
Shareholders' equity |
|
546,001 |
|
|
|
537,219 |
|
|
|
529,067 |
|
|
|
504,535 |
|
|
|
510,857 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
||||||||||||||||||
Income Statement: |
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
$ |
36,456 |
|
|
$ |
37,000 |
|
|
$ |
37,480 |
|
|
$ |
36,444 |
|
|
$ |
36,049 |
|
Provision for credit losses |
|
(937 |
) |
|
|
(664 |
) |
|
|
2,087 |
|
|
|
1,558 |
|
|
|
719 |
|
Noninterest income |
|
5,837 |
|
|
|
5,117 |
|
|
|
5,346 |
|
|
|
5,220 |
|
|
|
4,325 |
|
Noninterest expense |
|
28,520 |
|
|
|
28,389 |
|
|
|
29,229 |
|
|
|
35,128 |
|
|
|
25,841 |
|
Income before provision for income taxes |
|
14,710 |
|
|
|
14,392 |
|
|
|
11,510 |
|
|
|
4,978 |
|
|
|
13,814 |
|
Provision for income taxes |
|
2,577 |
|
|
|
2,294 |
|
|
|
2,274 |
|
|
|
142 |
|
|
|
2,587 |
|
Net income available to shareholders |
|
12,133 |
|
|
|
12,098 |
|
|
|
9,236 |
|
|
|
4,836 |
|
|
|
11,227 |
|
Net income excluding non-recurring income and expenses (1) |
|
10,673 |
|
|
|
12,098 |
|
|
|
9,514 |
|
|
|
11,112 |
|
|
|
11,404 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share |
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
|
$ |
0.71 |
|
Diluted earnings per common share |
|
0.73 |
|
|
|
0.73 |
|
|
|
0.56 |
|
|
|
0.29 |
|
|
|
0.70 |
|
Cash dividends declared |
|
0.20 |
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
0.20 |
|
Book value per common share |
|
33.26 |
|
|
|
32.72 |
|
|
|
31.89 |
|
|
|
31.74 |
|
|
|
32.15 |
|
Tangible book value per common share (1) |
|
25.23 |
|
|
|
24.67 |
|
|
|
23.81 |
|
|
|
23.62 |
|
|
|
24.52 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality: |
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs (recoveries) to average loans (annualized) |
|
0.004 |
% |
|
|
0.004 |
% |
|
|
0.001 |
% |
|
|
0.018 |
% |
|
|
0.013 |
% |
Non-performing loans to total loans |
|
0.24 |
|
|
|
0.33 |
|
|
|
0.32 |
|
|
|
0.39 |
|
|
|
0.38 |
|
Non-performing asset to total loans and other real estate |
|
0.36 |
|
|
|
0.34 |
|
|
|
0.35 |
|
|
|
0.40 |
|
|
|
0.39 |
|
Non-performing asset to total assets |
|
0.29 |
|
|
|
0.27 |
|
|
|
0.28 |
|
|
|
0.32 |
|
|
|
0.31 |
|
ACL on loans to total loans |
|
0.78 |
|
|
|
0.80 |
|
|
|
0.82 |
|
|
|
0.81 |
|
|
|
0.87 |
|
ACL on loans to nonperforming loans |
|
322.66 |
|
|
|
240.48 |
|
|
|
252.67 |
|
|
|
205.65 |
|
|
|
225.71 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Profitability: |
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets |
|
0.92 |
% |
|
|
0.92 |
% |
|
|
0.72 |
% |
|
|
0.40 |
% |
|
|
1.01 |
% |
Return on average equity |
|
8.94 |
|
|
|
8.93 |
|
|
|
6.93 |
|
|
|
3.84 |
|
|
|
8.91 |
|
Return on average tangible common equity (1) |
|
12.15 |
|
|
|
12.31 |
|
|
|
9.69 |
|
|
|
5.55 |
|
|
|
12.01 |
|
Net interest margin |
|
2.97 |
|
|
|
3.02 |
|
|
|
3.16 |
|
|
|
3.29 |
|
|
|
3.49 |
|
Efficiency ratio (1) |
|
68.80 |
|
|
|
66.24 |
|
|
|
66.34 |
|
|
|
64.44 |
|
|
|
62.60 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios: |
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 Capital (to Average Assets) (2) |
|
8.3 |
% |
|
|
8.3 |
% |
|
|
8.4 |
% |
|
|
9.6 |
% |
|
|
9.2 |
% |
Common Tier 1 Capital (to Risk Weighted Assets) (2) |
|
9.6 |
|
|
|
9.7 |
|
|
|
9.7 |
|
|
|
10.7 |
|
|
|
10.8 |
|
Tier 1 Capital (to Risk Weighted Assets) (2) |
|
9.6 |
|
|
|
9.7 |
|
|
|
9.7 |
|
|
|
10.7 |
|
|
|
10.8 |
|
Total Capital (to Risk Weighted Assets) (2) |
|
11.4 |
|
|
|
11.6 |
|
|
|
11.7 |
|
|
|
11.5 |
|
|
|
13.1 |
|
(1) |
Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document. | |
(2) |
Regulatory capital ratios as of |
CONSOLIDATED BALANCE SHEETS (Unaudited):
(In thousands, except share data) |
|
|
|
|
|
|
|
|
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
33,362 |
|
|
$ |
45,435 |
|
|
$ |
52,509 |
|
|
$ |
70,832 |
|
|
$ |
51,158 |
|
Interest-bearing balances with other financial institutions |
|
31,801 |
|
|
|
34,668 |
|
|
|
12,739 |
|
|
|
13,332 |
|
|
|
4,996 |
|
Federal funds sold |
|
2,922 |
|
|
|
16,660 |
|
|
|
52,851 |
|
|
|
9,711 |
|
|
|
6,017 |
|
Total cash and cash equivalents |
|
68,085 |
|
|
|
96,763 |
|
|
|
118,099 |
|
|
|
93,875 |
|
|
|
62,171 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity, at amortized cost |
|
396,998 |
|
|
|
399,128 |
|
|
|
401,561 |
|
|
|
404,831 |
|
|
|
396,784 |
|
Available for sale, at fair value |
|
217,632 |
|
|
|
223,555 |
|
|
|
218,662 |
|
|
|
229,023 |
|
|
|
236,609 |
|
Equity securities available for sale, at fair value |
|
431 |
|
|
|
438 |
|
|
|
413 |
|
|
|
433 |
|
|
|
438 |
|
Loans held for sale |
|
4,581 |
|
|
|
3,855 |
|
|
|
4,270 |
|
|
|
7,258 |
|
|
|
2,677 |
|
Loans, net of unearned interest |
|
4,317,449 |
|
|
|
4,252,792 |
|
|
|
4,145,657 |
|
|
|
4,034,510 |
|
|
|
3,611,347 |
|
Less: Allowance for credit losses |
|
(33,524 |
) |
|
|
(34,187 |
) |
|
|
(34,004 |
) |
|
|
(32,588 |
) |
|
|
(31,265 |
) |
Net loans |
|
4,283,925 |
|
|
|
4,218,605 |
|
|
|
4,111,653 |
|
|
|
4,001,922 |
|
|
|
3,580,082 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premises and equipment, net |
|
36,068 |
|
|
|
36,909 |
|
|
|
38,102 |
|
|
|
38,483 |
|
|
|
34,191 |
|
Operating lease right of use asset |
|
8,414 |
|
|
|
8,953 |
|
|
|
8,693 |
|
|
|
9,106 |
|
|
|
8,414 |
|
Finance lease right of use asset |
|
2,683 |
|
|
|
2,727 |
|
|
|
2,773 |
|
|
|
2,817 |
|
|
|
2,862 |
|
Cash surrender value of life insurance |
|
52,997 |
|
|
|
54,497 |
|
|
|
54,209 |
|
|
|
53,931 |
|
|
|
50,928 |
|
Restricted investment in bank stocks |
|
17,446 |
|
|
|
16,768 |
|
|
|
13,554 |
|
|
|
11,646 |
|
|
|
8,041 |
|
Accrued interest receivable |
|
26,975 |
|
|
|
25,820 |
|
|
|
24,230 |
|
|
|
19,626 |
|
|
|
19,205 |
|
Deferred income taxes |
|
22,894 |
|
|
|
24,146 |
|
|
|
25,110 |
|
|
|
23,910 |
|
|
|
15,548 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
114,231 |
|
Core deposit and other intangibles, net |
|
6,051 |
|
|
|
6,479 |
|
|
|
6,970 |
|
|
|
7,453 |
|
|
|
6,916 |
|
Foreclosed assets held for sale |
|
5,110 |
|
|
|
293 |
|
|
|
905 |
|
|
|
489 |
|
|
|
248 |
|
Other assets |
|
53,058 |
|
|
|
44,825 |
|
|
|
58,483 |
|
|
|
55,734 |
|
|
|
44,120 |
|
Total Assets |
$ |
5,330,379 |
|
|
$ |
5,290,792 |
|
|
$ |
5,214,718 |
|
|
$ |
5,087,568 |
|
|
$ |
4,583,465 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand |
$ |
807,861 |
|
|
$ |
801,312 |
|
|
$ |
803,550 |
|
|
$ |
822,822 |
|
|
$ |
797,038 |
|
Interest-bearing transaction accounts |
|
2,082,846 |
|
|
|
2,086,450 |
|
|
|
2,217,885 |
|
|
|
2,186,734 |
|
|
|
2,197,216 |
|
Time |
|
1,488,398 |
|
|
|
1,458,450 |
|
|
|
1,358,945 |
|
|
|
1,275,894 |
|
|
|
883,827 |
|
Total Deposits |
|
4,379,105 |
|
|
|
4,346,212 |
|
|
|
4,380,380 |
|
|
|
4,285,450 |
|
|
|
3,878,081 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings |
|
271,849 |
|
|
|
241,532 |
|
|
|
139,000 |
|
|
|
112,442 |
|
|
|
88,000 |
|
Long-term debt |
|
23,941 |
|
|
|
59,003 |
|
|
|
58,991 |
|
|
|
58,981 |
|
|
|
4,316 |
|
Subordinated debt and trust preferred securities |
|
46,201 |
|
|
|
46,354 |
|
|
|
46,501 |
|
|
|
46,648 |
|
|
|
56,794 |
|
Operating lease liability |
|
8,683 |
|
|
|
9,285 |
|
|
|
9,097 |
|
|
|
9,894 |
|
|
|
9,270 |
|
Accrued interest payable |
|
16,330 |
|
|
|
14,257 |
|
|
|
14,657 |
|
|
|
11,115 |
|
|
|
5,809 |
|
Other liabilities |
|
33,302 |
|
|
|
31,799 |
|
|
|
37,381 |
|
|
|
37,150 |
|
|
|
30,402 |
|
Total Liabilities |
|
4,779,411 |
|
|
|
4,748,442 |
|
|
|
4,686,007 |
|
|
|
4,561,680 |
|
|
|
4,072,672 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
||||||||||
Common stock, par value |
|
17,006 |
|
|
|
16,999 |
|
|
|
16,993 |
|
|
|
16,980 |
|
|
|
16,098 |
|
Additional paid-in capital |
|
406,150 |
|
|
|
405,725 |
|
|
|
405,341 |
|
|
|
404,902 |
|
|
|
387,332 |
|
Retained earnings |
|
154,801 |
|
|
|
145,982 |
|
|
|
137,199 |
|
|
|
131,271 |
|
|
|
129,617 |
|
Accumulated other comprehensive loss |
|
(16,947 |
) |
|
|
(16,637 |
) |
|
|
(21,362 |
) |
|
|
(17,805 |
) |
|
|
(17,374 |
) |
|
|
(10,042 |
) |
|
|
(9,719 |
) |
|
|
(9,460 |
) |
|
|
(9,460 |
) |
|
|
(4,880 |
) |
Total Shareholders’ Equity |
|
550,968 |
|
|
|
542,350 |
|
|
|
528,711 |
|
|
|
525,888 |
|
|
|
510,793 |
|
Total Liabilities and Shareholders' Equity |
$ |
5,330,379 |
|
|
$ |
5,290,792 |
|
|
$ |
5,214,718 |
|
|
$ |
5,087,568 |
|
|
$ |
4,583,465 |
|
CONSOLIDATED STATEMENTS OF INCOME (Unaudited):
|
Three Months Ended |
|||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|||||||||
Loans, including fees |
$ |
63,236 |
|
|
$ |
61,309 |
|
|
$ |
58,792 |
|
|
$ |
52,094 |
|
|
$ |
45,865 |
Investment securities: |
|
|
|
|
|
|
|
|
|
|||||||||
Taxable |
|
4,040 |
|
|
|
4,063 |
|
|
|
4,106 |
|
|
|
3,962 |
|
|
|
3,874 |
Tax-exempt |
|
376 |
|
|
|
378 |
|
|
|
382 |
|
|
|
391 |
|
|
|
389 |
Other interest-bearing balances |
|
403 |
|
|
|
139 |
|
|
|
86 |
|
|
|
83 |
|
|
|
53 |
Federal funds sold |
|
136 |
|
|
|
228 |
|
|
|
51 |
|
|
|
49 |
|
|
|
45 |
Total Interest Income |
|
68,191 |
|
|
|
66,117 |
|
|
|
63,417 |
|
|
|
56,579 |
|
|
|
50,226 |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||||||||
Deposits |
|
26,332 |
|
|
|
25,808 |
|
|
|
23,559 |
|
|
|
17,927 |
|
|
|
12,001 |
Short-term borrowings |
|
4,446 |
|
|
|
2,506 |
|
|
|
1,584 |
|
|
|
1,507 |
|
|
|
1,490 |
Long-term and subordinated debt |
|
957 |
|
|
|
803 |
|
|
|
794 |
|
|
|
701 |
|
|
|
686 |
Total Interest Expense |
|
31,735 |
|
|
|
29,117 |
|
|
|
25,937 |
|
|
|
20,135 |
|
|
|
14,177 |
Net Interest Income |
|
36,456 |
|
|
|
37,000 |
|
|
|
37,480 |
|
|
|
36,444 |
|
|
|
36,049 |
PROVISION FOR CREDIT LOSSES |
|
(937 |
) |
|
|
(664 |
) |
|
|
2,087 |
|
|
|
1,558 |
|
|
|
719 |
Net Interest Income After Provision for Credit Losses |
|
37,393 |
|
|
|
37,664 |
|
|
|
35,393 |
|
|
|
34,886 |
|
|
|
35,330 |
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|||||||||
Fiduciary and wealth management |
|
1,132 |
|
|
|
1,323 |
|
|
|
1,296 |
|
|
|
1,204 |
|
|
|
1,236 |
ATM debit card interchange |
|
945 |
|
|
|
979 |
|
|
|
986 |
|
|
|
998 |
|
|
|
1,056 |
Service charges on deposits |
|
509 |
|
|
|
485 |
|
|
|
509 |
|
|
|
514 |
|
|
|
435 |
Mortgage banking |
|
424 |
|
|
|
300 |
|
|
|
382 |
|
|
|
287 |
|
|
|
384 |
Mortgage hedging |
|
— |
|
|
|
109 |
|
|
|
67 |
|
|
|
128 |
|
|
|
20 |
Net gain on sales of SBA loans |
|
107 |
|
|
|
358 |
|
|
|
85 |
|
|
|
128 |
|
|
|
— |
Earnings from cash surrender value of life insurance |
|
284 |
|
|
|
288 |
|
|
|
278 |
|
|
|
292 |
|
|
|
254 |
Other |
|
2,436 |
|
|
|
1,275 |
|
|
|
1,743 |
|
|
|
1,669 |
|
|
|
940 |
Total Noninterest Income |
|
5,837 |
|
|
|
5,117 |
|
|
|
5,346 |
|
|
|
5,220 |
|
|
|
4,325 |
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and employee benefits |
|
15,462 |
|
|
|
15,215 |
|
|
|
15,259 |
|
|
|
15,027 |
|
|
|
13,844 |
Software licensing and utilization |
|
2,120 |
|
|
|
1,826 |
|
|
|
2,085 |
|
|
|
2,070 |
|
|
|
1,946 |
Occupancy, net |
|
1,982 |
|
|
|
1,952 |
|
|
|
1,761 |
|
|
|
1,750 |
|
|
|
1,886 |
Equipment |
|
1,222 |
|
|
|
1,330 |
|
|
|
1,292 |
|
|
|
1,248 |
|
|
|
1,251 |
Shares tax |
|
997 |
|
|
|
255 |
|
|
|
808 |
|
|
|
751 |
|
|
|
899 |
Legal and professional fees |
|
998 |
|
|
|
653 |
|
|
|
890 |
|
|
|
602 |
|
|
|
800 |
ATM/card processing |
|
534 |
|
|
|
442 |
|
|
|
641 |
|
|
|
532 |
|
|
|
493 |
Intangible amortization |
|
428 |
|
|
|
491 |
|
|
|
484 |
|
|
|
461 |
|
|
|
344 |
FDIC Assessment |
|
945 |
|
|
|
730 |
|
|
|
1,746 |
|
|
|
684 |
|
|
|
340 |
(Gain) loss on sale or write-down of foreclosed assets, net |
|
— |
|
|
|
— |
|
|
|
(18 |
) |
|
|
(126 |
) |
|
|
— |
Merger and acquisition |
|
— |
|
|
|
— |
|
|
|
352 |
|
|
|
4,992 |
|
|
|
224 |
Post-acquisition restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,952 |
|
|
|
— |
Other |
|
3,832 |
|
|
|
5,495 |
|
|
|
3,929 |
|
|
|
4,185 |
|
|
|
3,814 |
Total Noninterest Expense |
|
28,520 |
|
|
|
28,389 |
|
|
|
29,229 |
|
|
|
35,128 |
|
|
|
25,841 |
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
14,710 |
|
|
|
14,392 |
|
|
|
11,510 |
|
|
|
4,978 |
|
|
|
13,814 |
Provision for income taxes |
|
2,577 |
|
|
|
2,294 |
|
|
|
2,274 |
|
|
|
142 |
|
|
|
2,587 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ |
12,133 |
|
|
$ |
12,098 |
|
|
$ |
9,236 |
|
|
$ |
4,836 |
|
|
$ |
11,227 |
|
|
|
|
|
|
|
|
|
|
|||||||||
PER COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|||||||||
Basic Earnings Per Common Share |
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
|
$ |
0.71 |
Diluted Earnings Per Common Share |
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
|
$ |
0.70 |
Cash Dividends Declared |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
CONSOLIDATED – AVERAGE BALANCE SHEET AND NET INTEREST INCOME ANALYSIS (Unaudited):
|
Average Balances, Income and Interest Rates on a Taxable Equivalent Basis |
|||||||||||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
(Dollars in thousands) |
Average Balance |
|
Interest |
|
Yield/ Rate |
|
Average Balance |
|
Interest |
|
Yield/ Rate |
|
Average Balance |
|
Interest |
|
Yield/ Rate |
|||||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest Bearing Balances |
$ |
39,999 |
|
$ |
403 |
|
4.05 |
% |
|
$ |
30,715 |
|
$ |
139 |
|
1.80 |
% |
|
$ |
5,761 |
|
$ |
53 |
|
3.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable |
|
539,674 |
|
|
3,800 |
|
2.83 |
|
|
|
530,099 |
|
|
3,199 |
|
2.39 |
|
|
|
556,901 |
|
|
3,764 |
|
2.74 |
|
Tax-Exempt |
|
76,013 |
|
|
376 |
|
1.99 |
|
|
|
76,847 |
|
|
378 |
|
1.95 |
|
|
|
79,250 |
|
|
493 |
|
2.52 |
|
|
|
615,687 |
|
|
4,176 |
|
2.73 |
|
|
|
606,946 |
|
|
3,577 |
|
2.34 |
|
|
|
636,151 |
|
|
4,257 |
|
2.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal Funds Sold |
|
10,373 |
|
|
136 |
|
5.27 |
|
|
|
12,224 |
|
|
228 |
|
7.40 |
|
|
|
3,775 |
|
|
45 |
|
4.83 |
|
Loans, Net of Unearned Interest |
|
4,293,828 |
|
|
63,236 |
|
5.92 |
|
|
|
4,201,092 |
|
|
61,309 |
|
5.79 |
|
|
|
3,555,375 |
|
|
45,961 |
|
5.24 |
|
|
|
19,439 |
|
|
239 |
|
4.94 |
|
|
|
13,754 |
|
|
315 |
|
9.09 |
|
|
|
9,542 |
|
|
110 |
|
4.68 |
|
Total Earning Assets |
|
4,979,326 |
|
|
68,190 |
|
5.51 |
|
|
|
4,864,731 |
|
|
65,568 |
|
5.35 |
|
|
|
4,210,604 |
|
|
50,426 |
|
4.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and Due from |
|
38,264 |
|
|
|
|
|
|
38,370 |
|
|
|
|
|
|
51,444 |
|
|
|
|
||||||
Other Assets |
|
302,090 |
|
|
|
|
|
|
323,281 |
|
|
|
|
|
|
258,821 |
|
|
|
|
||||||
Total Assets |
$ |
5,319,680 |
|
|
|
|
|
$ |
5,226,382 |
|
|
|
|
|
$ |
4,520,869 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES & SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing Demand |
$ |
898,340 |
|
$ |
3,884 |
|
1.74 |
% |
|
$ |
938,246 |
|
$ |
4,087 |
|
1.73 |
% |
|
$ |
968,951 |
|
$ |
2,691 |
|
1.13 |
% |
Money Market |
|
876,242 |
|
|
5,968 |
|
2.74 |
|
|
|
925,902 |
|
|
6,266 |
|
2.68 |
|
|
|
940,286 |
|
|
4,084 |
|
1.76 |
|
Savings |
|
287,765 |
|
|
72 |
|
0.10 |
|
|
|
295,757 |
|
|
53 |
|
0.07 |
|
|
|
330,773 |
|
|
54 |
|
0.07 |
|
Time |
|
1,468,611 |
|
|
16,408 |
|
4.49 |
|
|
|
1,405,927 |
|
|
15,403 |
|
4.35 |
|
|
|
749,598 |
|
|
5,172 |
|
2.80 |
|
Total Interest-bearing Deposits |
|
3,530,958 |
|
|
26,332 |
|
3.00 |
|
|
|
3,565,832 |
|
|
25,809 |
|
2.87 |
|
|
|
2,989,608 |
|
|
12,001 |
|
1.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Short term borrowings |
|
316,025 |
|
|
4,446 |
|
5.66 |
|
|
|
149,218 |
|
|
2,506 |
|
6.66 |
|
|
|
121,898 |
|
|
1,490 |
|
4.96 |
|
Long-term debt |
|
40,571 |
|
|
533 |
|
5.28 |
|
|
|
58,987 |
|
|
373 |
|
2.51 |
|
|
|
4,350 |
|
|
44 |
|
4.10 |
|
Subordinated debt and trust preferred securities |
|
46,275 |
|
|
424 |
|
3.69 |
|
|
|
46,425 |
|
|
429 |
|
3.67 |
|
|
|
56,875 |
|
|
642 |
|
4.58 |
|
Total Interest-bearing Liabilities |
|
3,933,829 |
|
|
31,735 |
|
3.24 |
|
|
|
3,820,462 |
|
|
29,117 |
|
3.02 |
|
|
|
3,172,731 |
|
|
14,177 |
|
1.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing Demand |
|
781,136 |
|
|
|
|
|
|
836,733 |
|
|
|
|
|
|
793,382 |
|
|
|
|
||||||
Other Liabilities |
|
58,714 |
|
|
|
|
|
|
31,968 |
|
|
|
|
|
|
43,899 |
|
|
|
|
||||||
Shareholders' Equity |
|
546,001 |
|
|
|
|
|
|
537,219 |
|
|
|
|
|
|
510,857 |
|
|
|
|
||||||
Total Liabilities & Shareholders' Equity |
$ |
5,319,680 |
|
|
|
|
|
$ |
5,226,382 |
|
|
|
|
|
$ |
4,520,869 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Interest Income |
|
|
$ |
36,455 |
|
|
|
|
|
$ |
36,451 |
|
|
|
|
|
$ |
36,049 |
|
|
||||||
Taxable Equivalent Adjustment (1) |
|
|
|
260 |
|
|
|
|
|
|
33 |
|
|
|
|
|
|
200 |
|
|
||||||
Net Interest Income (taxable equivalent basis) |
|
|
$ |
36,715 |
|
|
|
|
|
$ |
36,484 |
|
|
|
|
|
$ |
36,249 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Yield on Earning Assets |
|
|
|
|
5.51 |
% |
|
|
|
|
|
5.35 |
% |
|
|
|
|
|
4.86 |
% |
||||||
Rate on Supporting Liabilities |
|
|
|
|
3.24 |
|
|
|
|
|
|
3.02 |
|
|
|
|
|
|
1.81 |
|
||||||
Average Interest Spread |
|
|
|
|
2.26 |
|
|
|
|
|
|
2.32 |
|
|
|
|
|
|
3.05 |
|
||||||
Net Interest Margin |
|
|
|
|
2.97 |
|
|
|
|
|
|
2.97 |
|
|
|
|
|
|
3.49 |
|
(1) |
Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance. |
ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited):
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Credit Losses on Loans: |
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance |
$ |
34,187 |
|
|
$ |
34,004 |
|
|
$ |
32,588 |
|
|
$ |
31,265 |
|
|
$ |
18,957 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of adopting CECL |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,931 |
|
Purchase credit deteriorated loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
336 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans Charged off |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16 |
) |
Commercial and industrial |
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
(109 |
) |
|
|
(111 |
) |
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential mortgage |
|
(28 |
) |
|
|
(9 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Consumer |
|
(22 |
) |
|
|
(17 |
) |
|
|
(32 |
) |
|
|
(65 |
) |
|
|
(19 |
) |
Total loans charged off |
|
(50 |
) |
|
|
(45 |
) |
|
|
(32 |
) |
|
|
(174 |
) |
|
|
(150 |
) |
Recoveries of loans previously charged off |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential mortgage |
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
30 |
|
Consumer |
|
6 |
|
|
|
7 |
|
|
|
14 |
|
|
|
4 |
|
|
|
7 |
|
Total recoveries |
|
6 |
|
|
|
7 |
|
|
|
21 |
|
|
|
4 |
|
|
|
37 |
|
Balance before provision |
|
34,143 |
|
|
|
33,966 |
|
|
|
32,577 |
|
|
|
31,431 |
|
|
|
30,775 |
|
Provision for credit losses - loans |
|
(619 |
) |
|
|
221 |
|
|
|
1,427 |
|
|
|
1,157 |
|
|
|
490 |
|
Balance, end of quarter |
$ |
33,524 |
|
|
$ |
34,187 |
|
|
$ |
34,004 |
|
|
$ |
32,588 |
|
|
$ |
31,265 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming loans |
|
10,390 |
|
|
|
14,216 |
|
|
|
13,458 |
|
|
|
15,846 |
|
|
|
13,909 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreclosed real estate |
|
5,110 |
|
|
|
293 |
|
|
|
905 |
|
|
|
489 |
|
|
|
248 |
|
Total nonperforming assets |
|
15,500 |
|
|
|
14,509 |
|
|
|
14,363 |
|
|
|
16,335 |
|
|
|
14,157 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing loans 90 days or more past due |
|
25 |
|
|
|
— |
|
|
|
12 |
|
|
|
9 |
|
|
|
7 |
|
Total risk elements |
$ |
15,525 |
|
|
$ |
14,509 |
|
|
$ |
14,375 |
|
|
$ |
16,344 |
|
|
$ |
14,164 |
|
RECONCILIATION OF NON-GAAP MEASURES (Unaudited)
Explanatory note: This press release contains financial information determined by methods other than in accordance with
Tangible Book Value Per Share
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders' Equity |
$ |
550,968 |
|
$ |
542,350 |
|
$ |
528,711 |
|
$ |
525,888 |
|
$ |
510,793 |
Less: |
|
127,031 |
|
|
127,031 |
|
|
127,031 |
|
|
127,031 |
|
|
114,231 |
Less: Core Deposit and Other Intangibles |
|
6,051 |
|
|
6,479 |
|
|
6,970 |
|
|
7,453 |
|
|
6,916 |
Tangible Equity |
$ |
417,886 |
|
$ |
408,840 |
|
$ |
394,710 |
|
$ |
391,404 |
|
$ |
389,646 |
|
|
|
|
|
|
|
|
|
|
|||||
Common Shares Outstanding |
|
16,565,637 |
|
|
16,573,707 |
|
|
16,580,347 |
|
|
16,567,578 |
|
|
15,890,011 |
|
|
|
|
|
|
|
|
|
|
|||||
Tangible Book Value per Share |
$ |
25.23 |
|
$ |
24.67 |
|
$ |
23.81 |
|
$ |
23.62 |
|
$ |
24.52 |
Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses
|
Three Months Ended |
|||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Net Income Available to Common Shareholders |
$ |
12,133 |
|
$ |
12,098 |
|
$ |
9,236 |
|
$ |
4,836 |
|
$ |
11,227 |
Less: BOLI Death Benefit Income |
|
1,460 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Plus: Merger and Acquisition Expenses |
|
— |
|
|
— |
|
|
352 |
|
|
7,944 |
|
|
224 |
Less: Tax Effect of Merger and Acquisition Expenses |
|
— |
|
|
— |
|
|
74 |
|
|
1,668 |
|
|
47 |
Net Income Excluding Non-Recurring Income and Expenses |
$ |
10,673 |
|
$ |
12,098 |
|
$ |
9,514 |
|
$ |
11,112 |
|
$ |
11,404 |
|
|
|
|
|
|
|
|
|
|
|||||
Weighted Average Shares Outstanding |
|
16,567,902 |
|
|
16,574,199 |
|
|
16,571,825 |
|
|
16,235,106 |
|
|
15,886,186 |
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses |
$ |
0.64 |
|
$ |
0.73 |
|
$ |
0.57 |
|
$ |
0.68 |
|
$ |
0.72 |
Return on Average Tangible Common Equity
|
Three Months Ended |
||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available to common shareholders |
$ |
12,133 |
|
|
$ |
12,098 |
|
|
$ |
9,236 |
|
|
$ |
4,836 |
|
|
$ |
11,227 |
|
Plus: Intangible amortization, net of tax |
|
338 |
|
|
|
388 |
|
|
|
382 |
|
|
|
364 |
|
|
|
272 |
|
|
$ |
12,471 |
|
|
$ |
12,486 |
|
|
$ |
9,618 |
|
|
$ |
5,200 |
|
|
$ |
11,499 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shareholders' equity |
$ |
546,001 |
|
|
$ |
537,219 |
|
|
$ |
529,067 |
|
|
$ |
504,535 |
|
|
$ |
510,857 |
|
Less: Average goodwill |
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
120,631 |
|
|
|
114,231 |
|
Less: Average core deposit and other intangibles |
|
6,259 |
|
|
|
6,716 |
|
|
|
7,210 |
|
|
|
7,016 |
|
|
|
7,129 |
|
Average tangible shareholders' equity |
$ |
412,711 |
|
|
$ |
403,472 |
|
|
$ |
394,826 |
|
|
$ |
376,888 |
|
|
$ |
389,497 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average tangible common equity |
|
12.15 |
% |
|
|
12.31 |
% |
|
|
9.69 |
% |
|
|
5.55 |
% |
|
|
12.01 |
% |
Efficiency Ratio
|
Three Months Ended |
||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense |
$ |
28,520 |
|
|
$ |
28,389 |
|
|
$ |
29,229 |
|
|
$ |
35,128 |
|
|
$ |
25,841 |
|
Less: Merger and acquisition expenses |
|
— |
|
|
|
— |
|
|
|
352 |
|
|
|
7,944 |
|
|
|
224 |
|
Less: Intangible amortization |
|
428 |
|
|
|
491 |
|
|
|
484 |
|
|
|
461 |
|
|
|
344 |
|
Less: (Gain) loss on sale or write-down of foreclosed assets, net |
|
— |
|
|
|
— |
|
|
|
(18 |
) |
|
|
(126 |
) |
|
|
— |
|
Efficiency ratio numerator |
$ |
28,092 |
|
|
$ |
27,898 |
|
|
$ |
28,411 |
|
|
$ |
26,849 |
|
|
$ |
25,273 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
36,456 |
|
|
|
37,000 |
|
|
|
37,480 |
|
|
|
36,444 |
|
|
|
36,049 |
|
Noninterest income |
|
5,837 |
|
|
|
5,117 |
|
|
|
5,346 |
|
|
|
5,220 |
|
|
|
4,325 |
|
Less: BOLI Death Benefit |
|
1,460 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Efficiency ratio denominator |
$ |
40,833 |
|
|
$ |
42,117 |
|
|
$ |
42,826 |
|
|
$ |
41,664 |
|
|
$ |
40,374 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio |
|
68.80 |
% |
|
|
66.24 |
% |
|
|
66.34 |
% |
|
|
64.44 |
% |
|
|
62.60 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424315804/en/
1-866-642-7736
Chair, President & Chief Executive Officer
Chief Financial Officer
Source: