PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited First Quarter 2024 Earnings
Peoples reported net income of
Core net income1, a non-GAAP measure, excludes gains or losses on the sale of investment portfolio securities and acquisition related expenses from the previously announced proposed combination further discussed below of
Core pre-provision net revenue (PPNR)1, a non-GAAP measure, excludes the aforementioned pre-tax "non-core" items along with the income tax expense (benefit) and the provisions for credit losses and losses on unfunded commitments, for the three months ended
STRATEGIC COMBINATION WITH FNCB BANCORP, INC.
On
- Strategic combination that creates a bank holding company with nearly
$5.5 billion in assets. - #2 ranked deposit market share in the
Scranton -Wilkes Barre metro statistical area and #5 rankedPennsylvania -headquartered community bank under$20 billion in total assets. - Estimated 59% earnings per share ("EPS") accretion to Peoples in 2025, inclusive of all merger synergies, and a 51% dividend increase to Peoples shareholders.
NOTABLES IN THE QUARTER
- Core net income1 for the three months ended
March 31, 2024 was$3.9 million or$0.55 per diluted share. - For the three months ended
March 31, 2024 , net loan growth was$8.5 million or 1.20% annualized and consisted primarily of growth in commercial loans. - Asset quality remained strong as nonperforming assets as a percentage of total assets at
March 31, 2024 was 0.21%, compared to 0.13% atDecember 31, 2023 . - Total deposits decreased
$75.1 million to$3.2 billion during 2024 due in part to seasonal outflows of municipal deposits. - At
March 31, 2024 , the Company had$110.0 million in cash and cash equivalents, a decrease of$77.4 million fromDecember 31, 2023 . Additional contingent sources of available liquidity total$1.7 billion and include lines of credit at theFederal Reserve Bank andFederal Home Loan Bank of Pittsburgh (FHLB), brokered deposit capacity and unencumbered securities that may be pledged as collateral. The Company's cash and cash equivalents balance and available liquidity represent 49.2% of total assets and 56.3% of total deposits. - At
March 31, 2024 , estimated total insured deposits were approximately$2.4 billion , or 75.1% of total deposits; as compared to approximately$2.4 billion , or 73.1% of total deposits atDecember 31, 2023 . Included in the uninsured total atMarch 31, 2024 is$345.8 million of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and$1.2 million of affiliate company deposits. Total insured and collateralized deposits represent 88.3% of total deposits atMarch 31, 2024 .
INCOME STATEMENT REVIEW
- Calculated on a fully taxable equivalent basis, a non-GAAP measure1, our net interest margin for the three months ended
March 31, 2024 was 2.29%, a decrease of 1 basis point when compared to the 2.30% for the three months endedDecember 31, 2023 , and 52 basis points when compared to 2.81% for the same three month period in 2023. The decrease in net interest margin from the prior three month period and year ago period was due to higher funding costs offsetting the increased yield and balance of earning assets. - The tax-equivalent yield on interest-earning assets increased 7 basis points to 4.56% during the three months ended
March 31, 2024 from 4.49% during the three months endedDecember 31, 2023 , and increased 40 basis points when compared to 4.16% for the three months endedMarch 31, 2023 . - Our cost of funds, which represents our average rate paid on total interest-bearing liabilities, increased 10 basis points to 2.96% for the three months ended
March 31, 2024 when compared to 2.86% during the three months endedDecember 31, 2023 and increased 111 basis points compared to 1.85% in the prior year period. We continued to increase interest rates paid on deposits during the quarter to attract new deposits, retain current balances and maintain liquidity. - Our cost of interest-bearing deposits increased 10 basis points during the current three month period to 2.90% from 2.80% in the prior three month period ended
December 31, 2023 , and increased 122 basis points compared to 1.68% for the three months endedMarch 31, 2023 . - Our cost of total deposits for the three months ended
March 31, 2024 increased 9 basis points to 2.34% from 2.25% during the three months endedDecember 31, 2023 , and increased 107 basis points compared to 1.27% for the three months endedMarch 31, 2023 .
First Quarter 2024 Results – Comparison to
Tax-equivalent net interest income, a non-GAAP measure2, for the three months ended
The higher interest income was the result of an increase in yield and average balance of earning assets. Average earning assets were
The increased interest expense in the three months ended
Average interest-bearing liabilities increased
For the three months ended
Noninterest income for the three months ended
Noninterest expense increased
The provision for income tax expense was
BALANCE SHEET REVIEW
At
Loan growth for the three months ended
Total investments were
Total deposits decreased
The deposit base consisted of 42.8% retail accounts, 33.5% commercial accounts, 15.6% municipal relationships and 8.1% brokered deposits at
In addition to deposit gathering and our current long term borrowings, we have additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the
The Company maintained its well capitalized position at
Tangible stockholders' equity, a non-GAAP measure3, decreased to
ASSET QUALITY REVIEW
Asset quality metrics remained strong. Nonperforming assets were
During the three month period ended
About Peoples:
In addition to evaluating its results of operations in accordance with
Safe Harbor Forward-Looking Statements:
We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Peoples Financial Services Corp. and
Peoples cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: macroeconomic trends, including interest rates and inflation; the effects of any recession in
In addition to these risks, acquisitions and business combinations present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations and, specifically, the FNCB merger may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder - or take longer - to achieve than expected, if they are achieved at all. As a regulated financial institution, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired or combined business may cause reputational harm to Peoples following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues. Additional factors that could cause actual results to differ materially include the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Peoples and FNCB; the outcome of any legal proceedings that may be instituted against Peoples or FNCB; the possibility that the proposed strategic combination will not close when expected or at all because required regulatory approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that required regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction).
The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
____________________
1 See reconciliation of non-GAAP financial measures on pg.16-17
Summary Data
Five Quarter Trend (Unaudited) (In thousands, except share and per share data) |
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|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
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Key performance data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
0.49 |
|
$ |
0.51 |
|
$ |
0.95 |
|
$ |
1.31 |
|
$ |
1.05 |
|
Core net income (1) |
|
$ |
0.55 |
|
$ |
0.61 |
|
$ |
1.05 |
|
$ |
1.31 |
|
$ |
1.04 |
|
Core net income PPNR per share (1) |
|
$ |
0.79 |
|
$ |
0.95 |
|
$ |
1.23 |
|
$ |
1.25 |
|
$ |
1.40 |
|
Cash dividends declared |
|
$ |
0.41 |
|
$ |
0.41 |
|
$ |
0.41 |
|
$ |
0.41 |
|
$ |
0.41 |
|
Book value |
|
$ |
48.18 |
|
$ |
48.35 |
|
$ |
46.07 |
|
$ |
46.53 |
|
$ |
45.96 |
|
Tangible book value (1) |
|
$ |
39.20 |
|
$ |
39.35 |
|
$ |
37.07 |
|
$ |
37.64 |
|
$ |
37.09 |
|
Market value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High |
|
$ |
48.84 |
|
$ |
49.99 |
|
$ |
48.19 |
|
$ |
44.60 |
|
$ |
53.48 |
|
Low |
|
$ |
38.09 |
|
$ |
38.58 |
|
$ |
40.04 |
|
$ |
30.60 |
|
$ |
42.52 |
|
Closing |
|
$ |
43.11 |
|
$ |
48.70 |
|
$ |
40.10 |
|
$ |
43.79 |
|
$ |
43.35 |
|
Market capitalization |
|
$ |
304,238 |
|
$ |
342,889 |
|
$ |
282,338 |
|
$ |
312,241 |
|
$ |
309,985 |
|
Common shares outstanding |
|
|
7,057,258 |
|
|
7,040,852 |
|
|
7,040,852 |
|
|
7,130,409 |
|
|
7,150,757 |
|
Selected ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average stockholders' equity |
|
|
4.09 |
% |
|
4.40 |
% |
|
8.05 |
% |
|
11.42 |
% |
|
9.43 |
% |
Core return on average stockholders' equity (1) |
|
|
4.59 |
% |
|
5.26 |
% |
|
8.91 |
% |
|
11.54 |
% |
|
9.35 |
% |
Return on average tangible stockholders' equity |
|
|
5.02 |
% |
|
5.46 |
% |
|
9.95 |
% |
|
14.12 |
% |
|
11.71 |
% |
Core return on average tangible stockholders' equity (1) |
|
|
5.64 |
% |
|
6.53 |
% |
|
11.01 |
% |
|
14.28 |
% |
|
11.61 |
% |
Return on average assets |
|
|
0.38 |
% |
|
0.38 |
% |
|
0.72 |
% |
|
1.04 |
% |
|
0.86 |
% |
Core return on average assets (1) |
|
|
0.43 |
% |
|
0.46 |
% |
|
0.79 |
% |
|
1.05 |
% |
|
0.85 |
% |
Stockholders' equity to total assets |
|
|
9.27 |
% |
|
9.10 |
% |
|
8.48 |
% |
|
9.01 |
% |
|
8.93 |
% |
Efficiency ratio (1)(2) |
|
|
75.77 |
% |
|
69.94 |
% |
|
63.50 |
% |
|
63.51 |
% |
|
60.61 |
% |
Nonperforming assets to loans, net, and foreclosed assets |
|
|
0.27 |
% |
|
0.17 |
% |
|
0.13 |
% |
|
0.07 |
% |
|
0.07 |
% |
Nonperforming assets to total assets |
|
|
0.21 |
% |
|
0.13 |
% |
|
0.10 |
% |
|
0.06 |
% |
|
0.05 |
% |
Net charge-offs to average loans, net |
|
|
0.00 |
% |
|
0.39 |
% |
|
0.01 |
% |
|
0.00 |
% |
|
0.00 |
% |
Allowance for credit losses to loans, net |
|
|
0.79 |
% |
|
0.77 |
% |
|
0.80 |
% |
|
0.82 |
% |
|
0.90 |
% |
Interest-bearing assets yield (FTE) (3) |
|
|
4.56 |
% |
|
4.49 |
% |
|
4.40 |
% |
|
4.31 |
% |
|
4.16 |
% |
Cost of funds |
|
|
2.96 |
% |
|
2.86 |
% |
|
2.61 |
% |
|
2.29 |
% |
|
1.85 |
% |
Net interest spread (FTE) (3) |
|
|
1.60 |
% |
|
1.63 |
% |
|
1.79 |
% |
|
2.02 |
% |
|
2.31 |
% |
Net interest margin (FTE) (3) |
|
|
2.29 |
% |
|
2.30 |
% |
|
2.44 |
% |
|
2.61 |
% |
|
2.81 |
% |
|
|
(1) |
See Reconciliation of Non-GAAP financial measures on pages 16-17. |
(2) |
Total noninterest expense less amortization of intangible assets and acquisition related expenses, divided by tax-equivalent net interest income |
(3) |
Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 21%. |
Consolidated Statements of Income (Unaudited) (In thousands, except per share data) |
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Three months ended |
|
2024 |
|
2023 |
|
||
Interest income: |
|
|
|
|
|
|
|
Interest and fees on loans: |
|
|
|
|
|
|
|
Taxable |
|
$ |
34,041 |
|
$ |
30,049 |
|
Tax-exempt |
|
|
1,418 |
|
|
1,389 |
|
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
Taxable |
|
|
1,918 |
|
|
2,124 |
|
Tax-exempt |
|
|
371 |
|
|
457 |
|
Dividends |
|
|
2 |
|
|
2 |
|
Interest on interest-bearing deposits in other banks |
|
|
120 |
|
|
14 |
|
Interest on federal funds sold |
|
|
1,127 |
|
|
243 |
|
Total interest income |
|
|
38,997 |
|
|
34,278 |
|
Interest expense: |
|
|
|
|
|
|
|
Interest on deposits |
|
|
18,704 |
|
|
9,678 |
|
Interest on short-term borrowings |
|
|
262 |
|
|
1,086 |
|
Interest on long-term debt |
|
|
270 |
|
|
27 |
|
Interest on subordinated debt |
|
|
443 |
|
|
443 |
|
Total interest expense |
|
|
19,679 |
|
|
11,234 |
|
Net interest income |
|
|
19,318 |
|
|
23,044 |
|
Provision for credit losses |
|
|
708 |
|
|
1,264 |
|
Net interest income after provision for credit losses |
|
|
18,610 |
|
|
21,780 |
|
Noninterest income: |
|
|
|
|
|
|
|
Service charges, fees, commissions and other |
|
|
2,036 |
|
|
1,965 |
|
Merchant services income |
|
|
115 |
|
|
118 |
|
Commissions and fees on fiduciary activities |
|
|
551 |
|
|
557 |
|
Wealth management income |
|
|
361 |
|
|
398 |
|
Mortgage banking income |
|
|
92 |
|
|
103 |
|
Increase in cash surrender value of life insurance |
|
|
279 |
|
|
258 |
|
Interest rate swap revenue |
|
|
(24) |
|
|
223 |
|
Net losses on equity investment securities |
|
|
(8) |
|
|
(29) |
|
Net gains on sale of investment securities available for sale |
|
|
|
|
|
81 |
|
Total noninterest income |
|
|
3,402 |
|
|
3,674 |
|
Noninterest expense: |
|
|
|
|
|
|
|
Salaries and employee benefits expense |
|
|
8,839 |
|
|
9,080 |
|
Net occupancy and equipment expense |
|
|
4,725 |
|
|
4,103 |
|
Acquisition related expenses |
|
|
486 |
|
|
|
|
Amortization of intangible assets |
|
|
|
|
|
29 |
|
Other expenses |
|
|
4,018 |
|
|
3,274 |
|
Total noninterest expense |
|
|
18,068 |
|
|
16,486 |
|
Income before income taxes |
|
|
3,944 |
|
|
8,968 |
|
Provision for income tax expense |
|
|
478 |
|
|
1,389 |
|
Net income |
|
$ |
3,466 |
|
$ |
7,579 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
Unrealized (losses) gains on investment securities available for sale |
|
$ |
(2,441) |
|
$ |
10,836 |
|
Reclassification adjustment for gains on available for sale securities included in net income |
|
|
|
|
|
(81) |
|
Change in derivative fair value |
|
|
1,079 |
|
|
(1,970) |
|
Income tax (benefit) expense related to other comprehensive (loss) income |
|
|
(298) |
|
|
1,891 |
|
Other comprehensive (loss) income, net of income tax (benefit) expense |
|
|
(1,064) |
|
|
6,894 |
|
Comprehensive income |
|
$ |
2,402 |
|
$ |
14,473 |
|
Share and per share amounts: |
|
|
|
|
|
|
|
Net income - basic |
|
$ |
0.49 |
|
$ |
1.06 |
|
Net income - diluted |
|
|
0.49 |
|
|
1.05 |
|
Cash dividends declared |
|
|
0.41 |
|
|
0.41 |
|
Average common shares outstanding - basic |
|
|
7,052,912 |
|
|
7,157,553 |
|
Average common shares outstanding - diluted |
|
|
7,102,112 |
|
|
7,198,970 |
|
Consolidated Statements of Income (Unaudited) (In thousands, except per share data) |
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|
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|
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|
|
|
|
|
|
|
|
|
|||||
Three months ended |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
34,041 |
|
$ |
33,730 |
|
$ |
33,095 |
|
$ |
32,139 |
|
$ |
30,049 |
|
Tax-exempt |
|
|
1,418 |
|
|
1,423 |
|
|
1,411 |
|
|
1,405 |
|
|
1,389 |
|
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,918 |
|
|
1,939 |
|
|
1,920 |
|
|
1,929 |
|
|
2,124 |
|
Tax-exempt |
|
|
371 |
|
|
372 |
|
|
375 |
|
|
378 |
|
|
457 |
|
Dividends |
|
|
2 |
|
|
|
|
|
|
|
|
2 |
|
|
2 |
|
Interest on interest-bearing deposits in other banks |
|
|
120 |
|
|
145 |
|
|
91 |
|
|
85 |
|
|
14 |
|
Interest on federal funds sold |
|
|
1,127 |
|
|
2,463 |
|
|
1,873 |
|
|
798 |
|
|
243 |
|
Total interest income |
|
|
38,997 |
|
|
40,072 |
|
|
38,765 |
|
|
36,736 |
|
|
34,278 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
18,704 |
|
|
18,756 |
|
|
16,481 |
|
|
13,714 |
|
|
9,678 |
|
Interest on short-term borrowings |
|
|
262 |
|
|
330 |
|
|
291 |
|
|
213 |
|
|
1,086 |
|
Interest on long-term debt |
|
|
270 |
|
|
273 |
|
|
273 |
|
|
269 |
|
|
27 |
|
Interest on subordinated debt |
|
|
443 |
|
|
444 |
|
|
443 |
|
|
444 |
|
|
443 |
|
Total interest expense |
|
|
19,679 |
|
|
19,803 |
|
|
17,488 |
|
|
14,640 |
|
|
11,234 |
|
Net interest income |
|
|
19,318 |
|
|
20,269 |
|
|
21,277 |
|
|
22,096 |
|
|
23,044 |
|
Provision for (credit to) credit losses |
|
|
708 |
|
|
1,669 |
|
|
(166) |
|
|
(2,201) |
|
|
1,264 |
|
Net interest income after provision for (credit to) credit losses |
|
|
18,610 |
|
|
18,600 |
|
|
21,443 |
|
|
24,297 |
|
|
21,780 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges, fees, commissions and other |
|
|
2,036 |
|
|
1,881 |
|
|
1,900 |
|
|
1,982 |
|
|
1,965 |
|
Merchant services income |
|
|
115 |
|
|
151 |
|
|
170 |
|
|
254 |
|
|
118 |
|
Commissions and fees on fiduciary activities |
|
|
551 |
|
|
528 |
|
|
606 |
|
|
528 |
|
|
557 |
|
Wealth management income |
|
|
361 |
|
|
399 |
|
|
393 |
|
|
386 |
|
|
398 |
|
Mortgage banking income |
|
|
92 |
|
|
95 |
|
|
87 |
|
|
105 |
|
|
103 |
|
Increase in cash surrender value of life insurance |
|
|
279 |
|
|
277 |
|
|
270 |
|
|
262 |
|
|
258 |
|
Interest rate swap revenue |
|
|
(24) |
|
|
(122) |
|
|
266 |
|
|
23 |
|
|
223 |
|
Net (losses) gains on investment equity securities |
|
|
(8) |
|
|
6 |
|
|
|
|
|
12 |
|
|
(29) |
|
Net gains on sale of investment securities available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81 |
|
Total noninterest income |
|
|
3,402 |
|
|
3,215 |
|
|
3,692 |
|
|
3,552 |
|
|
3,674 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits expense |
|
|
8,839 |
|
|
8,939 |
|
|
8,784 |
|
|
8,482 |
|
|
9,080 |
|
Net occupancy and equipment expense |
|
|
4,725 |
|
|
4,468 |
|
|
4,298 |
|
|
4,277 |
|
|
4,103 |
|
Acquisition related expenses |
|
|
486 |
|
|
826 |
|
|
869 |
|
|
121 |
|
|
|
|
Amortization of intangible assets |
|
|
|
|
|
19 |
|
|
29 |
|
|
28 |
|
|
29 |
|
Net gains on sale of other real estate |
|
|
|
|
|
|
|
|
(18) |
|
|
|
|
|
|
|
Other expenses |
|
|
4,018 |
|
|
3,346 |
|
|
3,092 |
|
|
3,706 |
|
|
3,274 |
|
Total noninterest expense |
|
|
18,068 |
|
|
17,598 |
|
|
17,054 |
|
|
16,614 |
|
|
16,486 |
|
Income before income taxes |
|
|
3,944 |
|
|
4,217 |
|
|
8,081 |
|
|
11,235 |
|
|
8,968 |
|
Income tax expense |
|
|
478 |
|
|
587 |
|
|
1,335 |
|
|
1,810 |
|
|
1,389 |
|
Net income |
|
$ |
3,466 |
|
$ |
3,630 |
|
$ |
6,746 |
|
$ |
9,425 |
|
$ |
7,579 |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (loss) gain on investment securities available for sale |
|
$ |
(2,441) |
|
$ |
19,494 |
|
$ |
(10,378) |
|
$ |
(5,148) |
|
$ |
10,836 |
|
Reclassification adjustment for gains on available for sale securities included in net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(81) |
|
Change in benefit plan liabilities |
|
|
|
|
|
1,129 |
|
|
|
|
|
|
|
|
|
|
Change in derivative fair value |
|
|
1,079 |
|
|
(1,650) |
|
|
747 |
|
|
2,049 |
|
|
(1,970) |
|
Income tax (benefit) expense related to other comprehensive (loss) income |
|
|
(298) |
|
|
3,894 |
|
|
(2,074) |
|
|
(668) |
|
|
1,891 |
|
Other comprehensive (loss) income, net of income tax (benefit) expense |
|
|
(1,064) |
|
|
15,079 |
|
|
(7,557) |
|
|
(2,431) |
|
|
6,894 |
|
Comprehensive income (loss) |
|
$ |
2,402 |
|
$ |
18,709 |
|
$ |
(811) |
|
$ |
6,994 |
|
$ |
14,473 |
|
Share and per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - basic |
|
$ |
0.49 |
|
$ |
0.52 |
|
$ |
0.95 |
|
$ |
1.32 |
|
$ |
1.06 |
|
Net income - diluted |
|
|
0.49 |
|
|
0.51 |
|
|
0.95 |
|
|
1.31 |
|
|
1.05 |
|
Cash dividends declared |
|
|
0.41 |
|
|
0.41 |
|
|
0.41 |
|
|
0.41 |
|
|
0.41 |
|
Average common shares outstanding - basic |
|
|
7,052,912 |
|
|
7,040,852 |
|
|
7,088,745 |
|
|
7,145,975 |
|
|
7,157,553 |
|
Average common shares outstanding - diluted |
|
|
7,102,112 |
|
|
7,091,015 |
|
|
7,120,685 |
|
|
7,177,915 |
|
|
7,198,970 |
|
Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis) |
||||||||||||||||||
|
||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||
|
|
Average |
|
Interest Income/ |
|
Yield/ |
|
|
Average |
|
Interest Income/ |
|
Yield/ |
|
||||
|
|
Balance |
|
Expense |
|
Rate |
|
|
Balance |
|
Expense |
|
Rate |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
2,632,554 |
|
$ |
34,041 |
|
5.20 |
% |
|
$ |
2,546,068 |
|
$ |
30,049 |
|
4.79 |
% |
Tax-exempt |
|
|
225,293 |
|
|
1,795 |
|
3.20 |
|
|
|
223,917 |
|
|
1,757 |
|
3.18 |
|
Total loans |
|
|
2,857,847 |
|
|
35,836 |
|
5.04 |
|
|
|
2,769,985 |
|
|
31,806 |
|
4.66 |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
446,996 |
|
|
1,920 |
|
1.73 |
|
|
|
499,327 |
|
|
2,126 |
|
1.73 |
|
Tax-exempt |
|
|
86,864 |
|
|
470 |
|
2.18 |
|
|
|
100,368 |
|
|
576 |
|
2.33 |
|
Total investments |
|
|
533,860 |
|
|
2,390 |
|
1.80 |
|
|
|
599,695 |
|
|
2,702 |
|
1.83 |
|
Interest-bearing deposits |
|
|
9,025 |
|
|
120 |
|
5.35 |
|
|
|
1,218 |
|
|
14 |
|
4.66 |
|
Federal funds sold |
|
|
80,955 |
|
|
1,127 |
|
5.60 |
|
|
|
19,353 |
|
|
243 |
|
5.09 |
|
Total earning assets |
|
|
3,481,687 |
|
|
39,473 |
|
4.56 |
% |
|
|
3,390,251 |
|
|
34,765 |
|
4.16 |
% |
Less: allowance for credit losses |
|
|
22,290 |
|
|
|
|
|
|
|
|
24,557 |
|
|
|
|
|
|
Other assets |
|
|
217,353 |
|
|
|
|
|
|
|
|
209,151 |
|
|
|
|
|
|
Total assets |
|
$ |
3,676,750 |
|
$ |
39,473 |
|
|
|
|
$ |
3,574,845 |
|
$ |
34,765 |
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market accounts |
|
$ |
754,889 |
|
$ |
7,135 |
|
3.80 |
% |
|
$ |
721,864 |
|
$ |
4,588 |
|
2.58 |
% |
Interest-bearing demand and NOW accounts |
|
|
784,458 |
|
|
4,837 |
|
2.48 |
|
|
|
731,398 |
|
|
2,806 |
|
1.56 |
|
Savings accounts |
|
|
422,815 |
|
|
275 |
|
0.26 |
|
|
|
512,655 |
|
|
216 |
|
0.17 |
|
Time deposits less than |
|
|
409,192 |
|
|
4,337 |
|
4.26 |
|
|
|
192,519 |
|
|
1,181 |
|
2.49 |
|
Time deposits |
|
|
222,459 |
|
|
2,120 |
|
3.83 |
|
|
|
179,515 |
|
|
887 |
|
2.00 |
|
Total interest-bearing deposits |
|
|
2,593,813 |
|
|
18,704 |
|
2.90 |
|
|
|
2,337,951 |
|
|
9,678 |
|
1.68 |
|
Short-term borrowings |
|
|
19,687 |
|
|
262 |
|
5.35 |
|
|
|
91,530 |
|
|
1,086 |
|
4.81 |
|
Long-term debt |
|
|
25,000 |
|
|
270 |
|
4.34 |
|
|
|
2,482 |
|
|
27 |
|
4.41 |
|
Subordinated debt |
|
|
33,000 |
|
|
443 |
|
5.40 |
|
|
|
33,000 |
|
|
443 |
|
5.44 |
|
Total borrowings |
|
|
77,687 |
|
|
975 |
|
5.05 |
|
|
|
127,012 |
|
|
1,556 |
|
4.97 |
|
Total interest-bearing liabilities |
|
|
2,671,500 |
|
|
19,679 |
|
2.96 |
|
|
|
2,464,963 |
|
|
11,234 |
|
1.85 |
|
Noninterest-bearing deposits |
|
|
616,610 |
|
|
|
|
|
|
|
|
744,931 |
|
|
|
|
|
|
Other liabilities |
|
|
47,688 |
|
|
|
|
|
|
|
|
38,917 |
|
|
|
|
|
|
Stockholders' equity |
|
|
340,952 |
|
|
|
|
|
|
|
|
326,034 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
3,676,750 |
|
|
|
|
|
|
|
$ |
3,574,845 |
|
|
|
|
|
|
Net interest income/spread |
|
|
|
|
$ |
19,794 |
|
1.60 |
% |
|
|
|
|
$ |
23,531 |
|
2.31 |
% |
Net interest margin |
|
|
|
|
|
|
|
2.29 |
% |
|
|
|
|
|
|
|
2.81 |
% |
Tax-equivalent adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
$ |
377 |
|
|
|
|
|
|
|
$ |
368 |
|
|
|
Investments |
|
|
|
|
|
99 |
|
|
|
|
|
|
|
|
119 |
|
|
|
Total adjustments |
|
|
|
|
$ |
476 |
|
|
|
|
|
|
|
$ |
487 |
|
|
|
|
The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. |
|
Details of Net Interest Income and Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis) |
||||||||||||||||
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Three months ended |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
Net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
34,041 |
|
$ |
33,730 |
|
$ |
33,095 |
|
$ |
32,139 |
|
$ |
30,049 |
|
Tax-exempt |
|
|
1,795 |
|
|
1,801 |
|
|
1,786 |
|
|
1,780 |
|
|
1,757 |
|
Total loans, net |
|
|
35,836 |
|
|
35,531 |
|
|
34,881 |
|
|
33,919 |
|
|
31,806 |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,920 |
|
|
1,939 |
|
|
1,920 |
|
|
1,931 |
|
|
2,126 |
|
Tax-exempt |
|
|
470 |
|
|
471 |
|
|
475 |
|
|
481 |
|
|
576 |
|
Total investments |
|
|
2,390 |
|
|
2,410 |
|
|
2,395 |
|
|
2,412 |
|
|
2,702 |
|
Interest on interest-bearing balances in other banks |
|
|
120 |
|
|
145 |
|
|
91 |
|
|
85 |
|
|
14 |
|
Federal funds sold |
|
|
1,127 |
|
|
2,463 |
|
|
1,873 |
|
|
798 |
|
|
243 |
|
Total interest income |
|
|
39,473 |
|
|
40,549 |
|
|
39,240 |
|
|
37,214 |
|
|
34,765 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
18,704 |
|
|
18,756 |
|
|
16,481 |
|
|
13,714 |
|
|
9,678 |
|
Short-term borrowings |
|
|
262 |
|
|
330 |
|
|
291 |
|
|
213 |
|
|
1,086 |
|
Long-term debt |
|
|
270 |
|
|
273 |
|
|
273 |
|
|
269 |
|
|
27 |
|
Subordinated debt |
|
|
443 |
|
|
444 |
|
|
443 |
|
|
444 |
|
|
443 |
|
Total interest expense |
|
|
19,679 |
|
|
19,803 |
|
|
17,488 |
|
|
14,640 |
|
|
11,234 |
|
Net interest income |
|
$ |
19,794 |
|
$ |
20,746 |
|
$ |
21,752 |
|
$ |
22,574 |
|
$ |
23,531 |
|
Loans, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
5.20 |
% |
|
5.08 |
% |
|
5.00 |
% |
|
4.93 |
% |
|
4.79 |
% |
Tax-exempt |
|
|
3.20 |
% |
|
3.14 |
% |
|
3.13 |
% |
|
3.17 |
% |
|
3.18 |
% |
Total loans, net |
|
|
5.04 |
% |
|
4.93 |
% |
|
4.85 |
% |
|
4.79 |
% |
|
4.66 |
% |
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1.73 |
% |
|
1.71 |
% |
|
1.68 |
% |
|
1.65 |
% |
|
1.73 |
% |
Tax-exempt |
|
|
2.18 |
% |
|
2.14 |
% |
|
2.15 |
% |
|
2.18 |
% |
|
2.33 |
% |
Total investments |
|
|
1.80 |
% |
|
1.78 |
% |
|
1.75 |
% |
|
1.73 |
% |
|
1.83 |
% |
Interest-bearing balances with banks |
|
|
5.35 |
% |
|
5.51 |
% |
|
5.24 |
% |
|
5.04 |
% |
|
4.66 |
% |
Federal funds sold |
|
|
5.60 |
% |
|
5.52 |
% |
|
5.52 |
% |
|
5.24 |
% |
|
5.09 |
% |
Total interest-earning assets |
|
|
4.56 |
% |
|
4.49 |
% |
|
4.40 |
% |
|
4.31 |
% |
|
4.16 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
2.90 |
% |
|
2.80 |
% |
|
2.53 |
% |
|
2.21 |
% |
|
1.68 |
% |
Short-term borrowings |
|
|
5.35 |
% |
|
5.43 |
% |
|
5.31 |
% |
|
5.07 |
% |
|
4.81 |
% |
Long-term debt |
|
|
4.34 |
% |
|
4.33 |
% |
|
4.33 |
% |
|
4.32 |
% |
|
4.41 |
% |
Subordinated debt |
|
|
5.40 |
% |
|
5.34 |
% |
|
5.33 |
% |
|
5.40 |
% |
|
5.44 |
% |
Total interest-bearing liabilities |
|
|
2.96 |
% |
|
2.86 |
% |
|
2.61 |
% |
|
2.29 |
% |
|
1.85 |
% |
Net interest spread |
|
|
1.60 |
% |
|
1.63 |
% |
|
1.79 |
% |
|
2.02 |
% |
|
2.31 |
% |
Net interest margin |
|
|
2.29 |
% |
|
2.30 |
% |
|
2.44 |
% |
|
2.61 |
% |
|
2.81 |
% |
Consolidated Balance Sheets (Unaudited) (In thousands) |
||||||||||||||||
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
At period end |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
32,009 |
|
$ |
33,524 |
|
$ |
39,285 |
|
$ |
37,774 |
|
$ |
31,354 |
|
Interest-bearing balances in other banks |
|
|
8,259 |
|
|
9,141 |
|
|
9,550 |
|
|
5,814 |
|
|
7,129 |
|
Federal funds sold |
|
|
69,700 |
|
|
144,700 |
|
|
205,700 |
|
|
93,100 |
|
|
102,100 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale |
|
|
394,413 |
|
|
398,927 |
|
|
382,227 |
|
|
395,826 |
|
|
418,125 |
|
Equity investments carried at fair value |
|
|
91 |
|
|
98 |
|
|
92 |
|
|
92 |
|
|
81 |
|
Held to maturity |
|
|
83,306 |
|
|
84,851 |
|
|
86,246 |
|
|
88,211 |
|
|
89,705 |
|
Total investments |
|
|
477,810 |
|
|
483,876 |
|
|
468,565 |
|
|
484,129 |
|
|
507,911 |
|
Loans held for sale |
|
|
300 |
|
|
250 |
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
2,858,412 |
|
|
2,849,897 |
|
|
2,870,969 |
|
|
2,843,238 |
|
|
2,818,043 |
|
Less: allowance for credit losses |
|
|
22,597 |
|
|
21,895 |
|
|
23,010 |
|
|
23,218 |
|
|
25,444 |
|
Net loans |
|
|
2,835,815 |
|
|
2,828,002 |
|
|
2,847,959 |
|
|
2,820,020 |
|
|
2,792,599 |
|
|
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
Premises and equipment, net |
|
|
59,097 |
|
|
61,276 |
|
|
61,936 |
|
|
57,712 |
|
|
56,561 |
|
Bank owned life insurance |
|
|
49,673 |
|
|
49,397 |
|
|
49,123 |
|
|
48,857 |
|
|
48,598 |
|
Deferred tax assets |
|
|
14,241 |
|
|
13,770 |
|
|
17,956 |
|
|
16,258 |
|
|
16,015 |
|
Accrued interest receivable |
|
|
13,565 |
|
|
12,734 |
|
|
12,769 |
|
|
11,406 |
|
|
11,678 |
|
Other intangible assets, net |
|
|
|
|
|
|
|
|
19 |
|
|
48 |
|
|
77 |
|
Other assets |
|
|
45,299 |
|
|
42,249 |
|
|
49,567 |
|
|
43,287 |
|
|
41,079 |
|
Total assets |
|
$ |
3,669,138 |
|
$ |
3,742,289 |
|
$ |
3,825,799 |
|
$ |
3,681,775 |
|
$ |
3,678,471 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
623,408 |
|
$ |
644,683 |
|
$ |
691,071 |
|
$ |
713,375 |
|
$ |
746,089 |
|
Interest-bearing |
|
|
2,580,530 |
|
|
2,634,354 |
|
|
2,674,012 |
|
|
2,516,106 |
|
|
2,489,878 |
|
Total deposits |
|
|
3,203,938 |
|
|
3,279,037 |
|
|
3,365,083 |
|
|
3,229,481 |
|
|
3,235,967 |
|
Short-term borrowings |
|
|
20,260 |
|
|
17,590 |
|
|
27,020 |
|
|
19,530 |
|
|
17,280 |
|
Long-term debt |
|
|
25,000 |
|
|
25,000 |
|
|
25,000 |
|
|
25,000 |
|
|
25,000 |
|
Subordinated debt |
|
|
33,000 |
|
|
33,000 |
|
|
33,000 |
|
|
33,000 |
|
|
33,000 |
|
Accrued interest payable |
|
|
5,327 |
|
|
5,765 |
|
|
4,777 |
|
|
4,701 |
|
|
2,304 |
|
Other liabilities |
|
|
41,621 |
|
|
41,475 |
|
|
46,529 |
|
|
38,276 |
|
|
36,286 |
|
Total liabilities |
|
|
3,329,146 |
|
|
3,401,867 |
|
|
3,501,409 |
|
|
3,349,988 |
|
|
3,349,837 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
14,122 |
|
|
14,093 |
|
|
14,093 |
|
|
14,272 |
|
|
14,323 |
|
Capital surplus |
|
|
122,162 |
|
|
122,130 |
|
|
121,870 |
|
|
125,371 |
|
|
126,231 |
|
Retained earnings |
|
|
249,123 |
|
|
248,550 |
|
|
247,857 |
|
|
244,017 |
|
|
237,522 |
|
Accumulated other comprehensive loss |
|
|
(45,415) |
|
|
(44,351) |
|
|
(59,430) |
|
|
(51,873) |
|
|
(49,442) |
|
Total stockholders' equity |
|
|
339,992 |
|
|
340,422 |
|
|
324,390 |
|
|
331,787 |
|
|
328,634 |
|
Total liabilities and stockholders' equity |
|
$ |
3,669,138 |
|
$ |
3,742,289 |
|
$ |
3,825,799 |
|
$ |
3,681,775 |
|
$ |
3,678,471 |
|
Loan and Asset Quality Data (Unaudited) (In thousands) |
|||||||||||||||
|
|||||||||||||||
At period end |
|
|
|
|
|
|
|
|
|
|
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
400,439 |
|
$ |
317,245 |
|
$ |
351,545 |
|
$ |
384,091 |
|
$ |
375,033 |
Non-taxable |
|
|
224,083 |
|
|
226,470 |
|
|
229,635 |
|
|
225,796 |
|
|
224,343 |
Total |
|
|
624,522 |
|
|
543,715 |
|
|
581,180 |
|
|
609,887 |
|
|
599,376 |
Real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
1,794,086 |
|
|
1,863,118 |
|
|
1,846,350 |
|
|
1,794,355 |
|
|
1,782,911 |
Residential |
|
|
361,490 |
|
|
360,803 |
|
|
357,647 |
|
|
348,911 |
|
|
342,459 |
Total |
|
|
2,155,576 |
|
|
2,223,921 |
|
|
2,203,997 |
|
|
2,143,266 |
|
|
2,125,370 |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect Auto |
|
|
71,675 |
|
|
75,389 |
|
|
78,953 |
|
|
83,348 |
|
|
86,587 |
Consumer Other |
|
|
6,639 |
|
|
6,872 |
|
|
6,839 |
|
|
6,737 |
|
|
6,710 |
Total |
|
|
78,314 |
|
|
82,261 |
|
|
85,792 |
|
|
90,085 |
|
|
93,297 |
Total |
|
$ |
2,858,412 |
|
$ |
2,849,897 |
|
$ |
2,870,969 |
|
$ |
2,843,238 |
|
$ |
2,818,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
At quarter end |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual/restructured loans |
|
$ |
7,056 |
|
$ |
3,961 |
|
$ |
3,060 |
|
$ |
1,900 |
|
$ |
1,798 |
|
Accruing loans past due 90 days or more |
|
|
656 |
|
|
986 |
|
|
700 |
|
|
181 |
|
|
59 |
|
Foreclosed assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
7,712 |
|
$ |
4,947 |
|
$ |
3,760 |
|
$ |
2,081 |
|
$ |
1,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Three months ended |
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
21,895 |
|
$ |
23,010 |
|
$ |
23,218 |
|
$ |
25,444 |
|
$ |
27,472 |
|
ASU 2016-13 Transition Adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,283) |
|
Adjusted beginning balance |
|
|
21,895 |
|
|
23,010 |
|
|
23,218 |
|
|
25,444 |
|
|
24,189 |
|
Charge-offs |
|
|
108 |
|
|
2,808 |
|
|
65 |
|
|
77 |
|
|
75 |
|
Recoveries |
|
|
102 |
|
|
24 |
|
|
23 |
|
|
52 |
|
|
66 |
|
Provision for (credit to) credit losses |
|
|
708 |
|
|
1,669 |
|
|
(166) |
|
|
(2,201) |
|
|
1,264 |
|
Ending balance |
|
$ |
22,597 |
|
$ |
21,895 |
|
$ |
23,010 |
|
$ |
23,218 |
|
$ |
25,444 |
|
Deposit and Liquidity Detail (Unaudited) (In thousands) |
|||||||||||||||
|
|||||||||||||||
At period end |
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market accounts |
|
$ |
759,305 |
|
$ |
782,243 |
|
$ |
767,868 |
|
$ |
670,669 |
|
$ |
775,511 |
Interest-bearing demand and NOW accounts |
|
|
754,673 |
|
|
796,426 |
|
|
825,066 |
|
|
760,690 |
|
|
698,888 |
Savings accounts |
|
|
415,459 |
|
|
429,011 |
|
|
447,684 |
|
|
470,340 |
|
|
500,709 |
Time deposits less than |
|
|
517,009 |
|
|
505,409 |
|
|
512,646 |
|
|
504,672 |
|
|
400,327 |
Time deposits |
|
|
134,084 |
|
|
121,265 |
|
|
120,748 |
|
|
109,735 |
|
|
114,443 |
Total interest-bearing deposits |
|
|
2,580,530 |
|
|
2,634,354 |
|
|
2,674,012 |
|
|
2,516,106 |
|
|
2,489,878 |
Noninterest-bearing deposits |
|
|
623,408 |
|
|
644,683 |
|
|
691,071 |
|
|
713,375 |
|
|
746,089 |
Total deposits |
|
$ |
3,203,938 |
|
$ |
3,279,037 |
|
$ |
3,365,083 |
|
$ |
3,229,481 |
|
$ |
3,235,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
At period end |
|
|
Amount |
|
Percent of Total |
|
|
Number of accounts |
|
Average Balance |
Deposit Detail: |
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
1,370,187 |
|
42.8 |
% |
|
70,081 |
$ |
20 |
Commercial |
|
|
1,072,263 |
|
33.5 |
|
|
13,327 |
|
80 |
Municipal |
|
|
500,493 |
|
15.6 |
|
|
1,892 |
|
265 |
Brokered |
|
|
260,995 |
|
8.1 |
|
|
24 |
|
10,875 |
Total Deposits |
|
$ |
3,203,938 |
|
100.0 |
|
|
85,324 |
$ |
38 |
|
|
|
|
|
|
|
|
|
|
|
Uninsured |
|
|
798,573 |
|
24.9 |
% |
|
|
|
|
Insured |
|
|
2,405,365 |
|
75.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
At period end |
|
|
Amount |
|
Percent of Total |
|
|
Number of accounts |
|
Average Balance |
Deposit Detail: |
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
1,358,371 |
|
41.4 |
% |
|
70,334 |
$ |
19 |
Commercial |
|
|
1,096,547 |
|
33.4 |
|
|
13,433 |
|
82 |
Municipal |
|
|
563,124 |
|
17.2 |
|
|
1,856 |
|
303 |
Brokered |
|
|
260,995 |
|
8.0 |
|
|
24 |
|
10,875 |
Total Deposits |
|
$ |
3,279,037 |
|
100.00 |
|
|
85,647 |
$ |
38 |
|
|
|
|
|
|
|
|
|
|
|
Uninsured |
|
|
883,530 |
|
26.9 |
% |
|
|
|
|
Insured |
|
|
2,395,507 |
|
73.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available |
|||
At |
|
|
Total Available |
|
|
Outstanding |
|
|
for Future Liquidity |
FHLB advances |
|
$ |
1,246,143 |
|
$ |
304,954 |
|
$ |
941,189 |
|
|
|
452,613 |
|
|
|
|
|
452,613 |
Correspondent bank lines of credit |
|
|
18,000 |
|
|
|
|
|
18,000 |
Other sources of liquidity: |
|
|
|
|
|
|
|
|
|
Brokered deposits |
|
|
366,914 |
|
|
260,995 |
|
|
105,919 |
Unencumbered securities |
|
|
177,553 |
|
|
|
|
|
177,553 |
Total sources of liquidity |
|
$ |
2,261,223 |
|
$ |
565,949 |
|
$ |
1,695,274 |
Consolidated Balance Sheets (Unaudited) (In thousands) |
||||||||||||||||
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average quarterly balances |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
2,632,554 |
|
$ |
2,632,865 |
|
$ |
2,627,700 |
|
$ |
2,615,881 |
|
$ |
2,546,068 |
|
Tax-exempt |
|
|
225,293 |
|
|
227,800 |
|
|
226,628 |
|
|
224,960 |
|
|
223,917 |
|
Total loans, net |
|
|
2,857,847 |
|
|
2,860,665 |
|
|
2,854,328 |
|
|
2,840,841 |
|
|
2,769,985 |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
446,996 |
|
|
450,533 |
|
|
454,727 |
|
|
469,712 |
|
|
499,327 |
|
Tax-exempt |
|
|
86,864 |
|
|
87,297 |
|
|
87,731 |
|
|
88,371 |
|
|
100,368 |
|
Total investments |
|
|
533,860 |
|
|
537,830 |
|
|
542,458 |
|
|
558,083 |
|
|
599,695 |
|
Interest-bearing balances with banks |
|
|
9,025 |
|
|
10,432 |
|
|
6,893 |
|
|
6,839 |
|
|
1,218 |
|
Federal funds sold |
|
|
80,955 |
|
|
176,983 |
|
|
134,583 |
|
|
61,093 |
|
|
19,353 |
|
Total interest-earning assets |
|
|
3,481,687 |
|
|
3,585,910 |
|
|
3,538,262 |
|
|
3,466,856 |
|
|
3,390,251 |
|
Other assets |
|
|
195,063 |
|
|
188,478 |
|
|
191,781 |
|
|
184,020 |
|
|
184,594 |
|
Total assets |
|
$ |
3,676,750 |
|
$ |
3,774,388 |
|
$ |
3,730,043 |
|
$ |
3,650,876 |
|
$ |
3,574,845 |
|
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
|
$ |
2,593,813 |
|
$ |
2,661,156 |
|
$ |
2,581,691 |
|
$ |
2,493,680 |
|
$ |
2,337,951 |
|
Noninterest-bearing |
|
|
616,610 |
|
|
651,182 |
|
|
688,301 |
|
|
711,729 |
|
|
744,931 |
|
Total deposits |
|
|
3,210,423 |
|
|
3,312,338 |
|
|
3,269,992 |
|
|
3,205,409 |
|
|
3,082,882 |
|
Short-term borrowings |
|
|
19,687 |
|
|
24,103 |
|
|
21,759 |
|
|
16,854 |
|
|
91,530 |
|
Long-term debt |
|
|
25,000 |
|
|
25,000 |
|
|
25,000 |
|
|
25,000 |
|
|
2,482 |
|
Subordinated debt |
|
|
33,000 |
|
|
33,000 |
|
|
33,000 |
|
|
33,000 |
|
|
33,000 |
|
Other liabilities |
|
|
47,688 |
|
|
52,760 |
|
|
47,788 |
|
|
39,494 |
|
|
38,917 |
|
Total liabilities |
|
|
3,335,798 |
|
|
3,447,201 |
|
|
3,397,539 |
|
|
3,319,757 |
|
|
3,248,811 |
|
Stockholders' equity |
|
|
340,952 |
|
|
327,187 |
|
|
332,504 |
|
|
331,119 |
|
|
326,034 |
|
Total liabilities and stockholders' equity |
|
$ |
3,676,750 |
|
$ |
3,774,388 |
|
$ |
3,730,043 |
|
$ |
3,650,876 |
|
$ |
3,574,845 |
|
Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Three months ended |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
Core net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
3,466 |
|
$ |
3,630 |
|
$ |
6,746 |
|
$ |
9,425 |
|
$ |
7,579 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on sale of available for sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81 |
|
Add: Gain (loss) on sale of available for sale securities tax adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17 |
|
Add: Acquisition related expenses |
|
|
486 |
|
|
826 |
|
|
869 |
|
|
121 |
|
|
|
|
Less: Acquisition related expenses tax adjustment |
|
|
59 |
|
|
115 |
|
|
144 |
|
|
19 |
|
|
|
|
Core net income |
|
$ |
3,893 |
|
$ |
4,341 |
|
$ |
7,471 |
|
$ |
9,527 |
|
$ |
7,515 |
|
Average common shares outstanding - diluted |
|
|
7,102,112 |
|
|
7,091,015 |
|
|
7,120,685 |
|
|
7,177,915 |
|
|
7,198,970 |
|
Core net income per share |
|
$ |
0.55 |
|
$ |
0.61 |
|
$ |
1.05 |
|
$ |
1.33 |
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
339,992 |
|
$ |
340,422 |
|
$ |
324,390 |
|
$ |
331,787 |
|
$ |
328,634 |
|
Less: |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
Less: Other intangible assets, net |
|
|
|
|
|
|
|
|
19 |
|
|
48 |
|
|
77 |
|
Total tangible stockholders' equity |
|
$ |
276,622 |
|
$ |
277,052 |
|
$ |
261,001 |
|
$ |
268,369 |
|
$ |
265,187 |
|
Common shares outstanding |
|
|
7,057,258 |
|
|
7,040,852 |
|
|
7,040,852 |
|
|
7,130,409 |
|
|
7,150,757 |
|
Tangible book value per share |
|
$ |
39.20 |
|
$ |
39.35 |
|
$ |
37.07 |
|
$ |
37.64 |
|
$ |
37.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
3,466 |
|
$ |
3,630 |
|
$ |
6,746 |
|
$ |
9,425 |
|
$ |
7,579 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on sale of available for sale securities |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
81 |
|
Add: Gain (loss) on sale of available for sale securities tax adjustment |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
17 |
|
Add: Acquisition related expenses |
|
|
486 |
|
|
826 |
|
|
869 |
|
|
121 |
|
|
|
|
Less: Acquisition related expenses tax adjustment |
|
|
59 |
|
|
115 |
|
|
144 |
|
|
19 |
|
|
|
|
Core net income |
|
$ |
3,893 |
|
$ |
4,341 |
|
$ |
7,471 |
|
$ |
9,527 |
|
$ |
7,515 |
|
Average stockholders' equity |
|
$ |
340,952 |
|
$ |
327,187 |
|
$ |
332,504 |
|
$ |
331,119 |
|
$ |
326,034 |
|
Core return on average stockholders' equity |
|
|
4.59 |
% |
|
5.26 |
% |
|
8.91 |
% |
|
11.54 |
% |
|
9.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
3,466 |
|
$ |
3,630 |
|
$ |
6,746 |
|
$ |
9,425 |
|
$ |
7,579 |
|
Average stockholders' equity |
|
$ |
340,952 |
|
$ |
327,187 |
|
$ |
332,504 |
|
$ |
331,119 |
|
$ |
326,034 |
|
Less: average intangibles |
|
|
63,370 |
|
|
63,380 |
|
|
63,404 |
|
|
63,433 |
|
|
63,461 |
|
Average tangible stockholders' equity |
|
$ |
277,582 |
|
$ |
263,807 |
|
$ |
269,100 |
|
$ |
267,686 |
|
$ |
262,573 |
|
Return on average tangible stockholders' equity |
|
|
5.02 |
% |
|
5.46 |
% |
|
9.95 |
% |
|
14.12 |
% |
|
11.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on average tangible stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
3,466 |
|
$ |
3,630 |
|
$ |
6,746 |
|
$ |
9,425 |
|
$ |
7,579 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on sale of available for sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81 |
|
Add: Gain (loss) on sale of available for sale securities tax adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17 |
|
Add: Acquisition related expenses |
|
|
486 |
|
|
826 |
|
|
869 |
|
|
121 |
|
|
|
|
Less: Acquisition related expenses tax adjustment |
|
|
59 |
|
|
115 |
|
|
144 |
|
|
19 |
|
|
|
|
Core net income |
|
$ |
3,893 |
|
$ |
4,341 |
|
$ |
7,471 |
|
$ |
9,527 |
|
$ |
7,515 |
|
Average stockholders' equity |
|
$ |
340,952 |
|
$ |
327,187 |
|
$ |
332,504 |
|
$ |
331,119 |
|
$ |
326,034 |
|
Less: average intangibles |
|
|
63,370 |
|
|
63,380 |
|
|
63,404 |
|
|
63,433 |
|
|
63,461 |
|
Average tangible stockholders' equity |
|
$ |
277,582 |
|
$ |
263,807 |
|
$ |
269,100 |
|
$ |
267,686 |
|
$ |
262,573 |
|
Core return on average tangible stockholders' equity |
|
|
5.64 |
% |
|
6.53 |
% |
|
11.01 |
% |
|
14.28 |
% |
|
11.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
3,466 |
|
$ |
3,630 |
|
$ |
6,746 |
|
$ |
9,425 |
|
$ |
7,579 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on sale of available for sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81 |
|
Add: Gain (loss) on sale of available for sale securities tax adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17 |
|
Add: Acquisition related expenses |
|
|
486 |
|
|
826 |
|
|
869 |
|
|
121 |
|
|
|
|
Less: Acquisition related expenses tax adjustment |
|
|
59 |
|
|
115 |
|
|
144 |
|
|
19 |
|
|
|
|
Core net income |
|
$ |
3,893 |
|
$ |
4,341 |
|
$ |
7,471 |
|
$ |
9,527 |
|
$ |
7,515 |
|
Average assets |
|
$ |
3,676,750 |
|
$ |
3,774,388 |
|
$ |
3,730,043 |
|
$ |
3,650,876 |
|
$ |
3,574,845 |
|
Core return on average assets |
|
|
0.43 |
% |
|
0.46 |
% |
|
0.79 |
% |
|
1.05 |
% |
|
0.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core pre-provision net revenue (PPNR) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes (GAAP) |
|
$ |
3,944 |
|
$ |
4,217 |
|
$ |
8,081 |
|
$ |
11,235 |
|
$ |
8,968 |
|
Add: Acquisition related expenses |
|
|
486 |
|
|
826 |
|
|
869 |
|
|
121 |
|
|
|
|
Add: Provision for (credit to) provision for credit losses |
|
|
708 |
|
|
1,669 |
|
|
(166) |
|
|
(2,201) |
|
|
1,264 |
|
Add: Provision for (credit to) provision for credit losses on unfunded commitments |
|
|
487 |
|
|
(2) |
|
|
(12) |
|
|
(171) |
|
|
(185) |
|
Core PPNR (non-GAAP) |
|
$ |
5,625 |
|
$ |
6,710 |
|
$ |
8,772 |
|
$ |
8,984 |
|
$ |
10,047 |
|
Average common shares outstanding-diluted |
|
|
7,102,112 |
|
|
7,091,015 |
|
|
7,120,685 |
|
|
7,177,915 |
|
|
7,198,970 |
|
Core PPNR per share (non-GAAP) |
|
$ |
0.79 |
|
$ |
0.95 |
|
$ |
1.23 |
|
$ |
1.25 |
|
$ |
1.40 |
|
Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) |
|||||||
|
|||||||
The following tables reconcile the non-GAAP financial measures of FTE net interest income for the three months ended |
|||||||
|
|||||||
Three months ended |
|
2024 |
|
2023 |
|
||
Interest income (GAAP) |
|
$ |
38,997 |
|
$ |
34,278 |
|
Adjustment to FTE |
|
|
476 |
|
|
487 |
|
Interest income adjusted to FTE (non-GAAP) |
|
|
39,473 |
|
|
34,765 |
|
Interest expense |
|
|
19,679 |
|
|
11,234 |
|
Net interest income adjusted to FTE (non-GAAP) |
|
$ |
19,794 |
|
$ |
23,531 |
|
|
|
|
|
|
|
|
|
|
|||||||
The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest |
|||||||
|
|||||||
Three months ended |
|
2024 |
|
2023 |
|
||
Efficiency ratio (non-GAAP): |
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
$ |
18,068 |
|
$ |
16,486 |
|
Less: Amortization of intangible assets expense |
|
|
|
|
|
29 |
|
Less: Acquisition related expenses |
|
|
486 |
|
|
|
|
Noninterest expense (non-GAAP) |
|
|
17,582 |
|
|
16,457 |
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
|
19,318 |
|
|
23,044 |
|
Plus: Taxable equivalent adjustment |
|
|
476 |
|
|
487 |
|
Noninterest income (GAAP) |
|
|
3,402 |
|
|
3,674 |
|
Less: Net gains (losses) on equity securities |
|
|
(8) |
|
|
(29) |
|
Less: Gain (loss) on sale of available for sale securities |
|
|
|
|
|
81 |
|
Net interest income (FTE) plus noninterest income (non-GAAP) |
|
$ |
23,204 |
|
$ |
27,153 |
|
Efficiency ratio (non-GAAP) |
|
|
75.77 |
% |
|
60.61 |
% |
|
|
|
|
|
|
|
|
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