Codorus Valley Bancorp, Inc. (“Codorus Valley”, or the
“Corporation”) (NASDAQ: CVLY), parent company of PeoplesBank, A
Codorus Valley Company (“PeoplesBank”, or the “Bank”), today
reported net income of $5.9 million or $0.61 per diluted common
share, for the quarter ended September 30, 2023. This compares to
net income of $7.2 million or $0.75 per diluted common share, for
the quarter ended September 30, 2022, representing a decrease of
$1.2 million or 17.3 percent, and compares to net income of $6.6
million or $0.69 per diluted common share for the second quarter of
2023, representing a decrease of $700,000 or 10.5 percent. For the
first nine months of 2023, net income was $19.5 million or $2.03
per diluted share, compared to $12.2 million or $1.27 per diluted
share, for the first nine months of 2022, representing an increase
of $7.4 million or 60.5 percent.
“Despite the challenging environment, the
company continued to generate strong earnings in the third quarter
and remains focused on positioning the Corporation for long-term
financial performance. During the quarter the
Corporation continued to proactively manage the balance sheet,
ensured strong liquidity and capital positions, and maintained
diligence around expense control,” noted Craig L. Kauffman,
President and CEO. “Additionally, the Corporation added
several seasoned bankers who should contribute meaningfully to the
growth plans of the Bank.”
REVIEW OF RESULTS
Balance Sheet
Loans
Loans increased $70.8 million from December 31,
2022 to September 30, 2023, an annualized growth rate of 6.0
percent. Nonperforming assets decreased $3.4 million, or 30.2
percent to $8.0 million from December 31, 2022 to September 30,
2023.
Investment Securities
Investment Securities decreased $9.8 million to
$335.7 million at September 30, 2023 compared to $345.5 million at
December 31, 2022. The Bank sold $4.7 million of investment
securities, realizing a net loss of $388,000 during the first
quarter of 2023, improving the security portfolio yield by three
basis points. The tax-equivalent yield on securities for the three
months ended September 30, 2023 was 2.75 percent, compared to 2.36
percent for the three months ended September 30, 2022 and 2.72
percent for the three months ended June 30, 2023. The unrealized
loss on the securities portfolio was $56.0 million at September 30,
2023, compared to $47.7 million at September 30, 2022 and $46.6
million at June 30, 2023.
Borrowings
FHLB advances and other short-term borrowings
increased $27.5 million to $39.1 million at September 30, 2023
compared to $11.6 million at December 31, 2022, as the Bank added
liquidity to the balance sheet during the recent industry turmoil
to provide an added measure of liquidity in the event the Bank were
to experience outsized deposit withdrawals. FHLB
advances and other short-term borrowings decreased $44.2 million or
53.1 percent from $83.3 million at June 30, 2023.
Deposits
Total Deposits decreased $36.8 million, or 1.9
percent from December 31, 2022 to September 30, 2023, ending the
period at $1.91 billion. From year-end 2022 to
September 30, 2023, noninterest-bearing demand accounts decreased
$65.4 million or 14.1 percent, and interest-bearing demand accounts
decreased $18.1 million or 6.3 percent. During that same period,
savings accounts decreased $19.9 million or 12.4 percent.
Offsetting the decreases, money market accounts increased by $5.0
million or 1.0 percent and certificates of deposit increased by
$61.6 million or 16.1 percent. As a result of the change in deposit
mix, the average cost of interest-bearing deposits increased to
2.31 percent for the quarter ended September 30, 2023, compared to
0.46 percent for the quarter ended September 30, 2022 and 1.94
percent for the quarter ended June 30, 2023. For the nine months
ended September 30, 2023, the average cost of interest-bearing
deposits increased to 1.90 percent, compared to 0.33 percent for
the nine months ended September 30, 2022. During the three months
ended September 30, 2023 overall deposit activity continued to
stabilize as deposits increased $23.7 million or 1.3 percent from
the quarter ended June 30, 2023. We anticipate downward
pressure on net interest margin to continue for the remainder of
2023 and into 2024 due to the cost of deposits.
Income Statement
The Corporation’s net interest income for the
three months ended September 30, 2023 was $19.1 million, a decrease
of 8.6 percent when compared to $20.9 million for the three months
ended September 30, 2022 and a decrease of 4.3 percent when
compared to $20.0 million for the three months ended June 30,
2023. The Corporation’s tax-equivalent net interest
margin (“NIM”) was 3.64 percent for the three months ended
September 30, 2023, compared to 3.66 percent for the same period in
2022 and 3.81 percent for the quarter ended June 30, 2023. Net
interest income for the nine months ended September 30, 2023 was
$58.9 million, an increase of 17.0 percent when compared to $50.4
million for the nine months ended September 30, 2022. The
Corporation’s tax-equivalent NIM was 3.81 percent for the nine
months ended September 30, 2023, compared to 3.21 percent for the
nine months ended September 30, 2022.
The Corporation’s provision for credit losses,
which includes provision for credit losses on unfunded commitments
in 2023, for the three months ended September 30, 2023 was $251,000
compared to a reversal of provision for loan losses of $567,000 for
the three months ended September 30, 2022 and a reversal of
provision for credit losses of $77,000 for the quarter ended June
30, 2023. The Corporation’s nonperforming assets ratio
was 0.47 percent at September 30, 2023, a 32.9 percent decrease
from the nonperforming assets ratio of 0.70 percent at December 31,
2022. On January 1, 2023, the Corporation adopted ASU 2016-13,
Financial Instruments – Credit Losses (Topic 326) and now measures
estimated credit losses on financial instruments at the time of
origination using the current expected credit loss (“CECL”)
methodology. At adoption of the CECL methodology, the allowance for
credit losses increased $2.8 million. The net impact to retained
earnings was $2.1 million.
Noninterest income for the three months ended
September 30, 2023 was $4.2 million, an increase of $582,000 or
16.1 percent, compared to noninterest income of $3.6 million for
the three months ended September 30, 2022 and an increase of
$142,000 or 3.5 percent compared to the three months ended June 30,
2023. The increase in the current quarter compared to
both periods, was primarily due to higher service charges on
deposit accounts and income from bank owned life
insurance. Noninterest income for the nine months ended
September 30, 2023 was $12.2 million, an increase of $840,000, as
compared to noninterest income of $11.4 million for the nine months
ended September 30, 2022. Higher trust and investment service fees,
service charges on deposits, other income related to interest rate
swap fees and gains on sale of assets held for sale in the current
period were partially offset by a decrease in gains on sale of
loans and a loss on sale of securities compared to the nine months
ended September 30, 2022.
Noninterest expense was $15.9 million for the
third quarter 2023, an increase of $574,000 or 3.8 percent, as
compared to noninterest expense of $15.3 million for the third
quarter 2022 and an increase of $420,000 compared to noninterest
expense of $15.5 million for the second quarter of
2023. The increase in both periods was attributed to
higher professional and legal fees, higher variable compensation
accruals and higher other expense. Noninterest expense was $46.2
million for the nine months ended September 30, 2023, a decrease of
$38,000 or 0.08 percent, as compared to noninterest expense of
$46.2 million for the nine months ended September 30, 2022. The
decrease was attributed to lower professional and legal fees, lower
impaired loan carrying costs and lower other expense, offset by
higher variable compensation accruals. Professional and legal fees
and other expense were higher in the prior year as a result of
costs associated with corporate matters. Previously expensed
impaired loan carrying costs were recovered in the current year,
contributing to the decrease year over year.
Income tax expense for the quarter ended
September 30, 2023 was $1.5 million compared to $2.1 million for
the same period in 2022 and $1.9 million in the quarter ended June
30, 2023. The effective tax rate for the three month
periods ended September 30, 2023, September 30, 2022 and June 30,
2023 was 20.2 percent, 22.3 and 22.7 percent,
respectively. Income tax expense for the nine months
ended September 30, 2023 was $5.4 million compared to $3.4 million
for the nine months ended September 30, 2022. The effective tax
rate for the nine months ended September 30, 2023 and September 30,
2022 was 21.8 and 21.7, respectively.
Capital
Shareholders’ equity totaled $183.4 million at
September 30, 2023, an increase of $6.0 million from $177.3 million
at December 31, 2022. The increase was primarily attributable to
net income of $19.5 million, partially offset by dividends paid of
$4.7 million for the nine months ended September 30, 2023 and the
adoption of CECL of $2.1 million. Other changes are related to
accumulated other comprehensive loss and issuance of treasury
stock.
Book value per share was $19.06 and $18.51 at
September 30, 2023 and December 31, 2022, respectively. Tangible
book value per share and tangible book value per share without
accumulated other comprehensive loss (1) increased to $18.82 per
share and $23.28 per share, respectively, at September 30, 2023
from $18.27 per share and $21.90 per share, respectively, at
December 31, 2022, primarily the result of changes in shareholders’
equity discussed above. The Corporation’s common equity tier 1
capital ratio was 12.53 percent at September 30, 2023, an increase
from 12.04 percent at December 31, 2022. At September 30, 2023, all
capital ratios applicable to the Bank were above regulatory minimum
levels and the Bank met the “well-capitalized” criteria under
current bank regulatory guidelines. (Note that the regulatory
“well-capitalized” definition is not applicable to small bank
holding companies such as the Corporation).
(1) Tangible book value per share and tangible book value per
share without accumulated other comprehensive loss are non-GAAP
financial measures. Please see Financial Highlights for disclosure
and reconciliation of non-GAAP financial measures.
Liquidity Risk Management
The Bank maintains a well-diversified deposit
base and has a comparatively low level of uninsured deposits. At
September 30, 2023, 83% of the Bank’s deposits were estimated to be
FDIC-insured, and an additional 7% of deposits were fully
collateralized.
The overall deposit and liquidity position of
the Bank and the Corporation remain positive, with overall deposits
exceeding the level at December 31, 2019, the start of the
pandemic, by $315.8 million or 19.9 percent.
Although the Bank had not utilized the Federal
Reserve’s Bank Term Funding Facility as of September 30, 2023, the
program has attractive features, such as being able to borrow based
on the par values (rather than market values) of a bank’s
investment securities that are pledged as collateral. For this
reason, the program would be considered among the Bank’s other
wholesale borrowing options if additional liquidity was needed.
The Bank is a member of the IntraFi Network,
which provides reciprocal deposit alternatives allowing our clients
to have the benefit of additional FDIC insurance coverage, and
assisting the Bank in the management of its liquidity needs.
Dividend Declared
On October 10, 2023, the Board of Directors of
the Corporation declared a regular quarterly cash dividend of $0.17
per share, payable on November 14, 2023 to common shareholders of
record at the close of business on October 24, 2023.
Business Lines Update
Consumer Banking efforts in the third quarter of
2023 continued to focus on assisting clients with their financial
needs, including an attractive 0% credit card balance transfer
offer to help clients manage their finances. We also concluded a
successful vehicle financing campaign to help clients manage their
vehicle purchases. In addition, mortgage events were held
throughout our Financial Center network to help clients with their
mortgage-related questions, focusing on educating buyers on their
options in the current environment.
The Leader Heights Financial Center was updated
and is now the third Connections Center in the York Area.
Connections Centers offer the PeoplesBank Vision Board Experience
on a large touchscreen, and help facilitate discussions regarding a
client’s goals and aspirations, focusing on how PeoplesBank can
help them achieve their dreams and live confidently. A concierge
desk also helps clients become more familiar with our digital
capabilities, and casual meeting spaces include booth seating and a
comfortable conversation room to foster discussions.
Our Business Banking team continued to help
clients through personalized outreach. As part of the outreach to
ensure the PeoplesBank team is meeting the needs of local
businesses, a variety of promotions focused on specific needs of
different business segments were made available. In addition, the
Business Banking team participated in several events to help small-
and medium-sized businesses navigate topics such as SBA funding and
healthcare considerations. An annual Voice of Client Survey was
also conducted, the results of which will help the bank continue to
focus on the topics and needs of our business clients.
PeoplesBank Wealth Management continued to offer
the expertise of its team to clients looking for perspectives on
the current economic environment. In addition to sharing economic
data and information with its clients, the PeoplesBank Wealth
Management team held several Roundtable Discussion Events
throughout the quarter.
To thank our local community, PeoplesBank
sponsored the York State Fair, offering attendees entrance to the
fair for just $1. PeoplesBank also hosted a client-appreciation
event at Wellspan Park on August 31, offering clients free tickets
to see the York Revolution. Readers of the York Daily Record in
turn voted PeoplesBank 2023 Best Bank in York and Hanover.
About Codorus Valley Bancorp,
Inc.
Codorus Valley Bancorp, Inc. is the largest
independent financial services holding company headquartered in
York, Pennsylvania. Codorus Valley primarily operates through its
financial services subsidiary, PeoplesBank, A Codorus Valley
Company. PeoplesBank offers a full range of consumer, business,
wealth management, and mortgage services at financial centers
located in communities throughout South Central Pennsylvania and
Central Maryland. Codorus Valley Bancorp, Inc.’s Common Stock is
listed on the NASDAQ Global Market under the symbol
“CVLY”.
Cautionary Note Regarding
Forward-looking Statements
This Press Release may contain forward-looking
statements by Codorus Valley Bancorp, Inc. (the “Corporation”).
Forward-looking statements may include information concerning the
financial condition, results of operations and business of the
Corporation and its subsidiaries and include, but are not limited
to, statements regarding expectations or predictions of future
financial or business performance or conditions relating to the
Corporation and its operations. These forward-looking statements
include statements with respect to the Corporation’s beliefs,
plans, objectives, goals, expectations, anticipations, estimates
and intentions, that are subject to significant risks and
uncertainties, and are subject to change based on various factors
(some of which are beyond the Corporation’s control).
Forward-looking statements may also include, but are not limited
to, discussions of strategy, financial projections and estimates
and their underlying assumptions, statements regarding plans,
objectives, goals, expectations or consequences, and statements
about future performance, expenses, operations, or products and
services of the Corporation and its subsidiaries. Forward-looking
statements can be identified by the use of words such as “may,”
“should,” “will,” “could,” “believes,” “plans,” “expects,”
“estimates,” “intends,” “anticipates,” “strives to,” “seeks,”
”intends,” “anticipates” or similar words or expressions.
Forward-looking statements are not historical
facts, nor should they be relied upon as providing assurance of
future performance. Forward-looking statements are based on current
beliefs, expectations and assumptions regarding the future of the
Corporation’s business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks, and
changes in circumstances that are difficult to predict and many of
which are outside of the Corporation’s control. Actual results
could differ materially from those indicated in forward-looking
statements due to, among others, the following factors: changes in
market interest rates and the persistence of the current
inflationary environment in the U.S. and our market areas and the
potential for an economic downturn or recession; the effects of
financial challenges at other banking institutions that could lead
to depositor concerns that spread within the banking industry
causing disruptive deposit outflows and other destabilizing
results; legislative and regulatory changes and the uncertain
impact of new laws and regulations; monetary and fiscal policies of
the federal government; the effects of changes in accounting
policies and practices; ineffectiveness of the Corporation’s
business strategy due to changes in the current or future market
conditions; changes in deposit flows, the cost of funds, demand for
loan products and the demand for financial services; the effects of
the COVID-19 pandemic, including on the Corporation’s credit
quality and operations as well as its impact on general economic
conditions; competition; market volatility, market downturns,
changes in consumer behavior and business closures; adverse changes
in the quality or composition of the Corporation’s loan, investment
and mortgage-backed securities portfolios, including from the
effects of the current inflationary environment; geographic
concentration of the Corporation’s business; deterioration of
commercial real estate values; the adequacy of loan loss reserves
and the Corporation’s transition to the Current Expected Credit
Loss (CECL) method of reserving for losses in its loan portfolio;
deterioration in the credit quality of borrowers; the Company’s
ability to attract and retain key personnel; the impact of
operational risks, including the risk of human error, failure or
disruption of internal processes and systems, including of the
Corporation’s information and other technology systems; uncertainty
surrounding the transition from LIBOR to an alternate reference
rate: failure or circumvention of our internal controls; the
Corporation’s ability to keep pace with technological changes;
breaches of security or failures of the Corporation to identify and
adequately address cybersecurity and data breaches; changes in
government regulation and supervision and the potential for
negative consequences resulting from regulatory examinations,
investigations and violations; the effects of adverse outcomes from
claims and litigation; occurrence of natural or man-made disasters
or calamities, including health emergencies, the spread of
infectious diseases, epidemics or pandemics, an outbreak or
escalation of hostilities or other geopolitical instabilities, the
effects of climate change or extraordinary events beyond the
Corporation's control, and the Corporation’s ability to deal
effectively with disruptions caused by the foregoing; and other
economic, competitive, governmental and technological factors
affecting the Corporation’s operations, markets, products, services
and fees.
For a discussion of certain risks and
uncertainties that could affect the Corporation, please refer to
the “Risk Factors” section of the Corporation’s Annual Report on
Form 10-K for the year ended December 31, 2022, and in its current
and periodic reports that are, or will be, filed with the
Securities and Exchange Commission (the “SEC”) and available on the
SEC’s website at www.sec.gov or in the Investor Relations section
of the Corporation’s website at www.peoplesbanknet.com. The
Corporation undertakes no obligation, other than as required by
law, to update or revise any forward-looking statements to reflect
new information, events occurring after the date of this press
release or other circumstances.
Certain Accounting Matters
Accounting standards require the consideration
of subsequent events occurring after the balance sheet date for
matters that require adjustment to, or disclosure in, the
consolidated financial statements. The review period for subsequent
events extends up to and includes the filing date of a public
company’s financial statements when filed with the SEC.
Accordingly, the consolidated financial information in this
announcement is subject to change.
The Corporation uses certain non-GAAP (Generally
Accepted Accounting Principles) financial measures in this Press
Release. The Corporation’s management believes that the
supplemental non-GAAP information provided in this press release is
utilized by market analysts and others to evaluate the
Corporation’s financial condition and results of operations and,
therefore, such information is useful to investors. These measures
have limitations as analytical tools and should not be considered a
substitute for analysis of results under GAAP. These non-GAAP
financial measures are reconciled to the most comparable measures
following the “Financial Highlights” section of this press
release.
Questions or comments concerning this Press Release
should be directed to:
Codorus Valley Bancorp,
Inc. Craig
L. Kauffman
President and
CEO
717-747-1501
ckauffman@peoplesbanknet.com
Larry D. Pickett Chief Financial
Officer
717-747-1502 lpickett@peoplesbanknet.com
CODORUS VALLEY BANCORP, INC. |
|
|
|
Consolidated Balance Sheets (Unaudited) |
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
September 30, |
(Dollars in thousands, except share and per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Interest
bearing deposits with banks |
$ |
28,858 |
|
|
$ |
99,777 |
|
|
$ |
201,024 |
|
Cash and due
from banks |
|
22,449 |
|
|
|
20,662 |
|
|
|
21,772 |
|
Total cash and cash
equivalents |
|
51,307 |
|
|
|
120,439 |
|
|
|
222,796 |
|
Securities,
available-for-sale, at fair value (amortized cost $391,694, net
of |
|
|
|
|
|
|
|
|
allowance for credit losses of $0) |
|
335,656 |
|
|
|
345,457 |
|
|
|
343,253 |
|
Restricted
investment in bank stocks, at cost |
|
2,152 |
|
|
|
955 |
|
|
|
955 |
|
Loans held
for sale |
|
1,103 |
|
|
|
154 |
|
|
|
863 |
|
Loans (net
of deferred fees of $3,718 - 2023 and $3,813 - 2022) |
|
1,704,380 |
|
|
|
1,632,857 |
|
|
|
1,599,033 |
|
Less-allowance for credit losses (1) |
|
(21,449 |
) |
|
|
(20,736 |
) |
|
|
(22,232 |
) |
Net loans |
|
1,682,931 |
|
|
|
1,612,121 |
|
|
|
1,576,801 |
|
Premises and
equipment, net |
|
19,562 |
|
|
|
21,136 |
|
|
|
21,094 |
|
Operating
leases right-of-use assets |
|
2,618 |
|
|
|
3,072 |
|
|
|
3,242 |
|
Goodwill |
|
2,301 |
|
|
|
2,301 |
|
|
|
2,301 |
|
Other assets |
|
92,962 |
|
|
|
89,417 |
|
|
|
87,100 |
|
Total
assets |
$ |
2,190,592 |
|
|
$ |
2,195,052 |
|
|
$ |
2,258,405 |
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
Noninterest bearing |
$ |
398,486 |
|
|
$ |
463,853 |
|
|
$ |
486,946 |
|
Interest bearing |
|
1,507,892 |
|
|
|
1,479,366 |
|
|
|
1,527,061 |
|
Total deposits |
|
1,906,378 |
|
|
|
1,943,219 |
|
|
|
2,014,007 |
|
Short-term
borrowings |
|
39,099 |
|
|
|
11,605 |
|
|
|
13,251 |
|
Long-term
debt and junior subordinated debt |
|
11,528 |
|
|
|
11,550 |
|
|
|
11,557 |
|
Subordinated
notes - face amount $31,000 (less discount and debt |
|
|
|
|
|
|
|
|
issuance cost of $175 at September 30, 2023 and $236 at
December 31, 2022) |
|
30,825 |
|
|
|
30,764 |
|
|
|
30,744 |
|
Operating
leases liabilities |
|
2,726 |
|
|
|
3,204 |
|
|
|
3,381 |
|
Allowance
for credit losses on off-balance sheet credit exposures |
|
2,212 |
|
|
|
0 |
|
|
|
0 |
|
Other liabilities |
|
14,461 |
|
|
|
17,410 |
|
|
|
17,126 |
|
Total
liabilities |
|
2,007,229 |
|
|
|
2,017,752 |
|
|
|
2,090,066 |
|
Shareholders' equity |
|
|
|
|
|
|
|
|
Preferred
stock, par value $2.50 per share; |
|
|
|
|
|
|
|
|
1,000,000 shares authorized; no shares
issued or outstanding |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Common
stock, par value $2.50 per share; 30,000,000 shares
authorized; |
|
|
|
|
|
|
|
|
shares issued: 9,883,660 at September 30, 2023 and
December 31, 2022; |
|
|
|
|
|
|
|
|
and shares outstanding: 9,618,854 at September 30, 2023
and 9,581,230 at December 31, 2022 |
|
24,709 |
|
|
|
24,709 |
|
|
|
24,709 |
|
Additional
paid-in capital |
|
142,525 |
|
|
|
141,896 |
|
|
|
141,929 |
|
Retained
earnings |
|
64,816 |
|
|
|
52,146 |
|
|
|
45,648 |
|
Accumulated
other comprehensive loss |
|
(42,869 |
) |
|
|
(34,764 |
) |
|
|
(36,499 |
) |
Treasury
stock shares outstanding, at cost: 264,806 shares at September 30,
2023 |
|
|
|
|
|
|
|
|
and 302,430 at December 31, 2022 |
|
(5,818 |
) |
|
|
(6,687 |
) |
|
|
(7,448 |
) |
Total shareholders'
equity |
|
183,363 |
|
|
|
177,300 |
|
|
|
168,339 |
|
Total liabilities and
shareholders' equity |
$ |
2,190,592 |
|
|
$ |
2,195,052 |
|
|
$ |
2,258,405 |
|
|
|
|
|
|
|
|
|
|
(1) Beginning January
1, 2023, calculation is based on current expected loss methodology.
Prior to January 1, 2023, calculation was based on incurred
loss methodology. |
|
|
|
|
|
|
|
|
|
CODORUS VALLEY BANCORP, INC. |
|
|
|
|
|
|
|
Consolidated Statements of Income (Unaudited) |
|
|
|
|
|
|
|
|
Three months
ended |
|
|
Nine months
ended |
|
|
September
30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
(dollars in thousands, except per share data) |
|
2023 |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees |
$ |
26,000 |
|
$ |
24,803 |
|
|
$ |
18,994 |
|
|
$ |
73,837 |
|
|
$ |
51,463 |
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
2,562 |
|
|
2,492 |
|
|
|
2,069 |
|
|
|
7,511 |
|
|
|
5,081 |
|
Tax-exempt |
|
106 |
|
|
99 |
|
|
|
113 |
|
|
|
306 |
|
|
|
317 |
|
Dividends |
|
44 |
|
|
51 |
|
|
|
11 |
|
|
|
112 |
|
|
|
30 |
|
Other |
|
361 |
|
|
545 |
|
|
|
1,486 |
|
|
|
1,590 |
|
|
|
2,362 |
|
Total interest income |
|
29,073 |
|
|
27,990 |
|
|
|
22,673 |
|
|
|
83,356 |
|
|
|
59,253 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
8,740 |
|
|
7,077 |
|
|
|
1,807 |
|
|
|
20,954 |
|
|
|
3,879 |
|
Federal
funds purchased and other short-term borrowings |
|
377 |
|
|
437 |
|
|
|
13 |
|
|
|
852 |
|
|
|
35 |
|
Long-term
debt and junior subordinated debt |
|
215 |
|
|
208 |
|
|
|
133 |
|
|
|
617 |
|
|
|
441 |
|
Subordinated notes |
|
369 |
|
|
369 |
|
|
|
369 |
|
|
|
1,107 |
|
|
|
1,107 |
|
Total interest expense |
|
9,701 |
|
|
8,091 |
|
|
|
2,322 |
|
|
|
23,530 |
|
|
|
5,462 |
|
Net interest income |
|
19,372 |
|
|
19,899 |
|
|
|
20,351 |
|
|
|
59,826 |
|
|
|
53,791 |
|
Provision
for (recovery of) credit losses - loans (1) |
|
128 |
|
|
(31 |
) |
|
|
(567 |
) |
|
|
589 |
|
|
|
3,434 |
|
Provision
for (recovery of) credit losses - unfunded commitments (1) |
|
123 |
|
|
(46 |
) |
|
|
0 |
|
|
|
323 |
|
|
|
0 |
|
Net interest income after
provision for (recovery of) provision credit losses |
19,121 |
|
|
19,976 |
|
|
|
20,918 |
|
|
|
58,914 |
|
|
|
50,357 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and
investment services fees |
|
1,293 |
|
|
1,275 |
|
|
|
1,141 |
|
|
|
3,770 |
|
|
|
3,440 |
|
Income from
mutual fund, annuity and insurance sales |
|
315 |
|
|
323 |
|
|
|
283 |
|
|
|
1,007 |
|
|
|
958 |
|
Service
charges on deposit accounts |
|
1,598 |
|
|
1,541 |
|
|
|
1,395 |
|
|
|
4,624 |
|
|
|
4,045 |
|
Income from
bank owned life insurance |
|
396 |
|
|
329 |
|
|
|
322 |
|
|
|
1,047 |
|
|
|
941 |
|
Other
income |
|
549 |
|
|
587 |
|
|
|
528 |
|
|
|
1,998 |
|
|
|
1,479 |
|
Gain (loss)
on sale of loans held for sale |
|
42 |
|
|
(4 |
) |
|
|
42 |
|
|
|
48 |
|
|
|
621 |
|
(Loss) gain
on sale of assets held for sale |
|
0 |
|
|
0 |
|
|
|
(100 |
) |
|
|
118 |
|
|
|
(100 |
) |
Loss on sales of securities |
|
0 |
|
|
0 |
|
|
|
0 |
|
|
|
(388 |
) |
|
|
0 |
|
Total noninterest income |
|
4,193 |
|
|
4,051 |
|
|
|
3,611 |
|
|
|
12,224 |
|
|
|
11,384 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
|
9,412 |
|
|
9,489 |
|
|
|
9,243 |
|
|
|
27,943 |
|
|
|
26,124 |
|
Occupancy of
premises, net |
|
853 |
|
|
880 |
|
|
|
943 |
|
|
|
2,711 |
|
|
|
2,844 |
|
Furniture
and equipment |
|
798 |
|
|
878 |
|
|
|
852 |
|
|
|
2,514 |
|
|
|
2,551 |
|
Professional
and legal |
|
549 |
|
|
379 |
|
|
|
367 |
|
|
|
1,395 |
|
|
|
2,281 |
|
Marketing |
|
347 |
|
|
387 |
|
|
|
507 |
|
|
|
1,010 |
|
|
|
1,340 |
|
FDIC
insurance |
|
245 |
|
|
244 |
|
|
|
190 |
|
|
|
739 |
|
|
|
617 |
|
Debit card
processing |
|
546 |
|
|
432 |
|
|
|
455 |
|
|
|
1,456 |
|
|
|
1,222 |
|
Charitable
donations |
|
62 |
|
|
899 |
|
|
|
56 |
|
|
|
993 |
|
|
|
971 |
|
External
data processing |
|
974 |
|
|
1,043 |
|
|
|
981 |
|
|
|
3,027 |
|
|
|
2,820 |
|
Impaired
loan carrying costs (recovery) |
|
107 |
|
|
(238 |
) |
|
|
217 |
|
|
|
(229 |
) |
|
|
512 |
|
Other |
|
2,003 |
|
|
1,083 |
|
|
|
1,511 |
|
|
|
4,624 |
|
|
|
4,939 |
|
Total noninterest expense |
|
15,896 |
|
|
15,476 |
|
|
|
15,322 |
|
|
|
46,183 |
|
|
|
46,221 |
|
Income before income taxes |
|
7,418 |
|
|
8,551 |
|
|
|
9,207 |
|
|
|
24,955 |
|
|
|
15,520 |
|
Provision for income taxes |
|
1,501 |
|
|
1,940 |
|
|
|
2,053 |
|
|
|
5,435 |
|
|
|
3,360 |
|
Net
income |
$ |
5,917 |
|
$ |
6,611 |
|
|
$ |
7,154 |
|
|
$ |
19,520 |
|
|
$ |
12,160 |
|
Net income per share,
basic |
|
0.62 |
|
|
0.69 |
|
|
|
0.75 |
|
|
|
2.03 |
|
|
|
1.28 |
|
Net income per share,
diluted |
|
0.61 |
|
|
0.69 |
|
|
|
0.75 |
|
|
|
2.03 |
|
|
|
1.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Beginning January
1, 2023, calculation is based on current expected loss methodology.
Prior to January 1, 2023, calculation was based on incurred
loss methodology. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Codorus Valley
Bancorp, Inc. |
|
|
|
Financial
Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial
Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Year-to-Date |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
September 30, |
|
|
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
|
3rd Qtr |
|
|
2023 |
|
|
2022 |
Earnings and Per Share Data (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
5,917 |
|
|
$ |
6,611 |
|
|
$ |
6,992 |
|
|
$ |
7,932 |
|
|
$ |
7,154 |
|
$ |
19,520 |
|
$ |
12,160 |
|
Basic
earnings per share |
|
$ |
0.62 |
|
|
$ |
0.69 |
|
|
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
0.75 |
|
$ |
2.03 |
|
$ |
1.28 |
|
Diluted
earnings per share |
|
$ |
0.61 |
|
|
$ |
0.69 |
|
|
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
0.75 |
|
$ |
2.03 |
|
$ |
1.27 |
|
Cash
dividends paid per share |
|
$ |
0.17 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
$ |
0.49 |
|
$ |
0.45 |
|
Book value
per share |
|
$ |
19.06 |
|
|
$ |
19.34 |
|
|
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
$ |
19.06 |
|
$ |
17.63 |
|
Tangible
book value per share (2) |
|
$ |
18.82 |
|
|
$ |
19.10 |
|
|
$ |
19.04 |
|
|
$ |
18.27 |
|
|
$ |
17.39 |
|
$ |
18.82 |
|
$ |
17.39 |
|
Tangible
book value per share without AOCI (8) |
|
$ |
23.28 |
|
|
$ |
22.81 |
|
|
$ |
22.26 |
|
|
$ |
21.90 |
|
|
$ |
21.21 |
|
$ |
23.28 |
|
$ |
21.21 |
|
Average
shares outstanding |
|
|
9,616 |
|
|
|
9,600 |
|
|
|
9,585 |
|
|
|
9,566 |
|
|
|
9,545 |
|
|
9,601 |
|
|
9,521 |
|
Average
diluted shares outstanding |
|
|
9,631 |
|
|
|
9,610 |
|
|
|
9,612 |
|
|
|
9,589 |
|
|
|
9,568 |
|
|
9,618 |
|
|
9,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets (3) |
|
|
1.08 |
|
|
|
1.22 |
|
|
|
1.29 |
|
|
|
1.43 |
|
|
|
1.25 |
|
|
1.20 |
|
|
0.69 |
|
Return on
average equity (3) |
|
|
12.64 |
|
|
|
14.17 |
|
|
|
15.45 |
|
|
|
18.50 |
|
|
|
15.93 |
|
|
14.07 |
|
|
8.78 |
|
Net interest
margin (4) |
|
|
3.64 |
|
|
|
3.81 |
|
|
|
4.00 |
|
|
|
3.98 |
|
|
|
3.66 |
|
|
3.81 |
|
|
3.21 |
|
Efficiency
ratio (5) |
|
|
66.95 |
|
|
|
64.19 |
|
|
|
59.05 |
|
|
|
60.87 |
|
|
|
63.51 |
|
|
63.32 |
|
|
70.44 |
|
Net overhead
ratio (3)(6) |
|
|
2.14 |
|
|
|
2.10 |
|
|
|
1.93 |
|
|
|
2.13 |
|
|
|
2.04 |
|
|
2.06 |
|
|
1.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs to average loans (3) |
|
|
-0.15 |
|
|
|
0.20 |
|
|
|
0.15 |
|
|
|
0.24 |
|
|
|
0.02 |
|
|
0.06 |
|
|
0.34 |
|
Allowance
for credit losses to total loans (7) |
|
|
1.26 |
|
|
|
1.23 |
|
|
|
1.31 |
|
|
|
1.27 |
|
|
|
1.39 |
|
|
1.26 |
|
|
1.39 |
|
Nonperforming assets to total loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and foreclosed real estate |
|
|
0.47 |
|
|
|
0.70 |
|
|
|
0.55 |
|
|
|
0.70 |
|
|
|
0.99 |
|
|
0.47 |
|
|
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
equity to average assets |
|
|
8.55 |
|
|
|
8.58 |
|
|
|
8.38 |
|
|
|
7.75 |
|
|
|
7.84 |
|
|
8.50 |
|
|
7.90 |
|
Tier 1
leverage capital ratio |
|
|
10.50 |
|
|
|
10.38 |
|
|
|
10.20 |
|
|
|
9.77 |
|
|
|
9.18 |
|
|
10.50 |
|
|
9.18 |
|
Common
equity Tier 1 capital ratio |
|
|
12.52 |
|
|
|
12.37 |
|
|
|
12.19 |
|
|
|
12.04 |
|
|
|
11.80 |
|
|
12.53 |
|
|
11.80 |
|
Tier 1
risk-based capital ratio |
|
|
13.08 |
|
|
|
12.94 |
|
|
|
12.76 |
|
|
|
12.61 |
|
|
|
12.38 |
|
|
13.09 |
|
|
12.38 |
|
Total
risk-based capital ratio |
|
|
16.01 |
|
|
|
15.85 |
|
|
|
15.75 |
|
|
|
15.57 |
|
|
|
15.42 |
|
|
16.02 |
|
|
15.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) per share amounts
and shares outstanding were adjusted for stock
dividends |
|
|
(2) non-GAAP measure -
book value less goodwill and core deposit intangibles; see
reconciliation below |
|
|
(3) annualized for the
quarterly periods
presented |
|
|
(4) net interest
income (tax-equivalent) as a percentage of average interest earning
assets |
|
|
(5) noninterest
expense as a percentage of net interest income and noninterest
income (tax-equivalent) |
|
|
(6) noninterest
expense less noninterest income as a percentage of average
assets |
|
|
(7) excludes loans
held for sale |
|
|
|
|
|
(8) non-GAAP measure -
book value less accumulated other comprehensive income; see
reconciliation below |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (Tangible Book Value and Tangible Book
Value without AOCI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands, except per share data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
|
|
|
Total
Shareholders' Equity |
|
$ |
183,363 |
|
|
$ |
185,869 |
|
|
$ |
184,946 |
|
|
$ |
177,300 |
|
|
$ |
168,339 |
|
|
|
|
|
Less:
Goodwill and Other Intangible Assets |
|
|
(2,302 |
) |
|
|
(2,302 |
) |
|
|
(2,303 |
) |
|
|
(2,303 |
) |
|
|
(2,303 |
) |
|
|
|
|
Tangible
Shareholders' Equity |
|
$ |
181,061 |
|
|
$ |
183,567 |
|
|
$ |
182,643 |
|
|
$ |
174,997 |
|
|
$ |
166,036 |
|
|
|
|
|
Less: Accumulated Other Comprehensive Income |
|
(42,869 |
) |
|
|
(35,650 |
) |
|
|
(30,941 |
) |
|
|
(34,764 |
) |
|
|
(36,499 |
) |
|
|
|
|
Tangible Shareholders' Equity without AOCI |
|
$ |
223,930 |
|
|
|
$ |
219,217 |
|
|
|
$ |
213,584 |
|
|
|
$ |
209,761 |
|
|
|
$ |
202,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Shares Outstanding |
|
|
9,619 |
|
|
|
9,611 |
|
|
|
9,594 |
|
|
|
9,581 |
|
|
|
9,548 |
|
|
|
|
|
Book Value
Per Share |
|
$ |
19.06 |
|
|
$ |
19.34 |
|
|
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
|
|
|
|
Effect of
Intangible Assets |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
|
|
Tangible Book Value Per Share |
|
$ |
18.82 |
|
|
|
$ |
19.10 |
|
|
|
$ |
19.04 |
|
|
|
$ |
18.27 |
|
|
|
$ |
17.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value
Per Share |
|
$ |
19.06 |
|
|
|
$ |
19.34 |
|
|
|
$ |
19.28 |
|
|
|
$ |
18.51 |
|
|
|
$ |
17.63 |
|
|
|
|
|
Effect of
Intangible Assets and AOCI |
|
|
4.22 |
|
|
|
3.47 |
|
|
|
2.98 |
|
|
|
3.39 |
|
|
|
3.58 |
|
|
|
|
|
Tangible Book Value Per Share without AOCI |
|
$ |
23.28 |
|
|
$ |
22.81 |
|
|
$ |
22.26 |
|
|
$ |
21.90 |
|
|
$ |
21.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This report contains
certain financial information determined by methods other than in
accordance with GAAP. This non-GAAP disclosure has limitation as an
analytical tool and should not be considered in isolation or as a
substitute for the analysis of the Corporation's results as
reported under GAAP, nor is it necessarily comparable to non-GAAP
performance measures that may be presented by other companies. Our
management uses this non-GAAP measure in its analysis of our
performance because it believes this measure is material and
will be used as a measure of our performance by investors. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF
NET INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances and Interest Rates, Taxable-Equivalent Basis
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
September 30, 2022 |
|
(Dollars in
thousands) |
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing deposits with banks |
|
$ |
26,772 |
|
$ |
361 |
|
|
5.35 |
% |
|
$ |
43,006 |
|
$ |
545 |
|
|
5.08 |
% |
|
$ |
260,302 |
|
$ |
1,486 |
|
|
2.26 |
% |
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
371,603 |
|
|
2,606 |
|
|
2.78 |
|
|
|
370,345 |
|
|
2,543 |
|
|
2.75 |
|
|
|
347,656 |
|
|
2,080 |
|
|
2.37 |
|
Tax-exempt |
|
|
22,523 |
|
|
128 |
|
|
2.25 |
|
|
|
22,581 |
|
|
121 |
|
|
2.15 |
|
|
|
26,414 |
|
|
142 |
|
|
2.13 |
|
Total investment securities |
|
|
394,126 |
|
|
2,734 |
|
|
2.75 |
|
|
|
392,926 |
|
|
2,664 |
|
|
2.72 |
|
|
|
374,070 |
|
|
2,222 |
|
|
2.36 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) |
|
|
1,677,117 |
|
|
25,829 |
|
|
6.11 |
|
|
|
1,644,775 |
|
|
24,630 |
|
|
6.01 |
|
|
|
1,556,060 |
|
|
18,817 |
|
|
4.80 |
|
Tax-exempt |
|
|
21,721 |
|
|
213 |
|
|
3.89 |
|
|
|
22,292 |
|
|
214 |
|
|
3.85 |
|
|
|
23,057 |
|
|
222 |
|
|
3.82 |
|
Total loans |
|
|
1,698,838 |
|
|
26,042 |
|
|
6.08 |
|
|
|
1,667,067 |
|
|
24,844 |
|
|
5.98 |
|
|
|
1,579,117 |
|
|
19,039 |
|
|
4.78 |
|
Total earning assets |
|
|
2,119,736 |
|
|
29,137 |
|
|
5.45 |
|
|
|
2,102,999 |
|
|
28,053 |
|
|
5.35 |
|
|
|
2,213,489 |
|
|
22,747 |
|
|
4.08 |
|
Other assets
(2) |
|
|
71,008 |
|
|
|
|
|
|
|
72,796 |
|
|
|
|
|
|
|
78,942 |
|
|
|
|
|
Total assets |
|
$ |
2,190,744 |
|
|
|
|
|
|
$ |
2,175,795 |
|
|
|
|
|
|
$ |
2,292,431 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
|
$ |
917,983 |
|
|
5,542 |
|
|
2.40 |
% |
|
$ |
899,474 |
|
|
4,612 |
|
|
2.06 |
% |
|
$ |
982,174 |
|
|
1,238 |
|
|
0.50 |
% |
Savings |
|
|
146,038 |
|
|
11 |
|
|
0.03 |
|
|
|
151,143 |
|
|
12 |
|
|
0.03 |
|
|
|
166,275 |
|
|
13 |
|
|
0.03 |
|
Time |
|
|
435,439 |
|
|
3,187 |
|
|
2.90 |
|
|
|
411,309 |
|
|
2,453 |
|
|
2.39 |
|
|
|
402,576 |
|
|
556 |
|
|
0.55 |
|
Total interest bearing deposits |
|
|
1,499,460 |
|
|
8,740 |
|
|
2.31 |
|
|
|
1,461,926 |
|
|
7,077 |
|
|
1.94 |
|
|
|
1,551,025 |
|
|
1,807 |
|
|
0.46 |
|
Short-term
borrowings |
|
|
38,726 |
|
|
377 |
|
|
3.86 |
|
|
|
44,139 |
|
|
437 |
|
|
3.97 |
|
|
|
13,255 |
|
|
13 |
|
|
0.39 |
|
Long-term
debt and junior subordinated debt |
|
|
14,356 |
|
|
215 |
|
|
5.94 |
|
|
|
14,520 |
|
|
208 |
|
|
5.75 |
|
|
|
15,047 |
|
|
133 |
|
|
3.51 |
|
Subordinated
notes |
|
|
30,818 |
|
|
369 |
|
|
4.75 |
|
|
|
30,798 |
|
|
369 |
|
|
4.81 |
|
|
|
30,737 |
|
|
369 |
|
|
4.76 |
|
Total interest bearing liabilities |
|
|
1,583,360 |
|
|
9,701 |
|
|
2.43 |
|
|
|
1,551,383 |
|
|
8,091 |
|
|
2.09 |
|
|
|
1,610,064 |
|
|
2,322 |
|
|
0.57 |
|
Noninterest
bearing deposits |
|
|
401,734 |
|
|
|
|
|
|
|
418,504 |
|
|
|
|
|
|
|
489,589 |
|
|
|
|
|
Other
liabilities |
|
|
18,439 |
|
|
|
|
|
|
|
19,277 |
|
|
|
|
|
|
|
12,992 |
|
|
|
|
|
Shareholders' equity |
|
|
187,211 |
|
|
|
|
|
|
|
186,631 |
|
|
|
|
|
|
|
179,786 |
|
|
|
|
|
Total liabilities and shareholders'
equity |
|
$ |
2,190,744 |
|
|
|
|
|
|
$ |
2,175,795 |
|
|
|
|
|
|
$ |
2,292,431 |
|
|
|
|
|
Net interest
income (tax equivalent basis) |
|
|
|
$ |
19,436 |
|
|
|
|
|
|
|
$ |
19,962 |
|
|
|
|
|
|
|
$ |
20,425 |
|
|
|
|
Net interest
margin (3) |
|
|
|
|
|
3.64 |
% |
|
|
|
|
|
3.81 |
% |
|
|
|
|
|
3.66 |
% |
Tax
equivalent adjustment |
|
|
|
|
(64 |
) |
|
|
|
|
|
|
|
(63 |
) |
|
|
|
|
|
|
|
(74 |
) |
|
|
|
Net interest
income |
|
|
|
$ |
19,372 |
|
|
|
|
|
|
|
$ |
19,899 |
|
|
|
|
|
|
|
$ |
20,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances
include nonaccrual
loans. |
|
|
|
(2) Average balances
include bank owned life insurance and foreclosed real
estate. |
|
|
|
(3) Net interest
income (tax-equivalent basis) annualized as a percentage of average
interest earning
assets. |
|
|
|
ANALYSIS OF NET INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
Average Balances and Interest Rates, Taxable-Equivalent
Basis (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
September 30, 2023 |
|
|
September 30, 2022 |
|
|
(Dollars in thousands) |
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with banks |
|
$ |
43,232 |
|
$ |
1,590 |
|
|
4.92 |
% |
|
$ |
357,588 |
|
$ |
2,362 |
|
|
0.88 |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
370,376 |
|
|
7,623 |
|
|
2.75 |
|
|
|
308,214 |
|
|
5,111 |
|
|
2.22 |
|
|
Tax-exempt |
|
|
22,877 |
|
|
374 |
|
|
2.19 |
|
|
|
25,526 |
|
|
398 |
|
|
2.08 |
|
|
Total investment securities |
|
|
393,253 |
|
|
7,997 |
|
|
2.72 |
|
|
|
333,740 |
|
|
5,509 |
|
|
2.21 |
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) |
|
|
1,645,243 |
|
|
73,319 |
|
|
5.96 |
|
|
|
1,543,502 |
|
|
51,059 |
|
|
4.42 |
|
|
Tax-exempt |
|
|
22,200 |
|
|
644 |
|
|
3.88 |
|
|
|
16,640 |
|
|
509 |
|
|
4.09 |
|
|
Total loans |
|
|
1,667,443 |
|
|
73,963 |
|
|
5.93 |
|
|
|
1,560,142 |
|
|
51,568 |
|
|
4.42 |
|
|
Total earning assets |
|
|
2,103,928 |
|
|
83,550 |
|
|
5.31 |
|
|
|
2,251,470 |
|
|
59,439 |
|
|
3.53 |
|
|
Other assets (2) |
|
|
71,693 |
|
|
|
|
|
|
|
84,516 |
|
|
|
|
|
|
Total assets |
|
$ |
2,175,621 |
|
|
|
|
|
|
$ |
2,335,986 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
|
$ |
906,847 |
|
|
13,615 |
|
|
2.01 |
% |
|
$ |
986,805 |
|
$ |
1,999 |
|
|
0.27 |
% |
|
Savings |
|
|
152,363 |
|
|
35 |
|
|
0.03 |
|
|
|
162,538 |
|
|
37 |
|
|
0.03 |
|
|
Time |
|
|
413,646 |
|
|
7,304 |
|
|
2.36 |
|
|
|
425,490 |
|
|
1,843 |
|
|
0.58 |
|
|
Total interest bearing deposits |
|
|
1,472,856 |
|
|
20,954 |
|
|
1.90 |
|
|
|
1,574,833 |
|
|
3,879 |
|
|
0.33 |
|
|
Short-term borrowings |
|
|
32,014 |
|
|
852 |
|
|
3.56 |
|
|
|
11,780 |
|
|
35 |
|
|
0.40 |
|
|
Long-term debt |
|
|
14,521 |
|
|
617 |
|
|
5.68 |
|
|
|
20,049 |
|
|
441 |
|
|
2.94 |
|
|
Subordinated debentures |
|
|
30,798 |
|
|
1,107 |
|
|
4.81 |
|
|
|
30,717 |
|
|
1,107 |
|
|
4.82 |
|
|
Total interest bearing liabilities |
|
|
1,550,189 |
|
|
23,530 |
|
|
2.03 |
|
|
|
1,637,379 |
|
|
5,462 |
|
|
0.45 |
|
|
Noninterest bearing deposits |
|
|
421,397 |
|
|
|
|
|
|
|
501,243 |
|
|
|
|
|
|
Other liabilities |
|
|
19,064 |
|
|
|
|
|
|
|
12,766 |
|
|
|
|
|
|
Shareholders' equity |
|
|
184,971 |
|
|
|
|
|
|
|
184,598 |
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
|
$ |
2,175,621 |
|
|
|
|
|
|
$ |
2,335,986 |
|
|
|
|
|
|
Net interest income (tax equivalent basis) |
|
|
|
$ |
60,020 |
|
|
|
|
|
|
|
$ |
53,977 |
|
|
|
|
|
Net interest margin (3) |
|
|
|
|
|
3.81 |
% |
|
|
|
|
|
3.21 |
% |
|
Tax equivalent adjustment |
|
|
|
|
(194 |
) |
|
|
|
|
|
|
|
(186 |
) |
|
|
|
|
Net interest income |
|
|
|
$ |
59,826 |
|
|
|
|
|
|
|
$ |
53,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances include nonaccrual
loans. |
|
|
|
|
|
|
(2) Average balances include bank owned life insurance and
foreclosed real
estate. |
|
|
|
|
(3) Net interest income (tax-equivalent basis) annualized as a
percentage of average interest earning
assets. |
|
|
Codorus Valley Bancorp (NASDAQ:CVLY)
Historical Stock Chart
From Apr 2024 to May 2024
Codorus Valley Bancorp (NASDAQ:CVLY)
Historical Stock Chart
From May 2023 to May 2024