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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 27, 2023
Date of Report (Date of earliest event reported)
CODORUS
VALLEY BANCORP, INC.
(Exact
name of registrant as specified in its charter)
|
Pennsylvania |
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001-15536 |
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23-2428543 |
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|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number) |
|
(IRS
Employer Ident. No.) |
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105
Leader Heights Road, York,
Pennsylvania |
|
17403 |
|
|
(Address
of principal executive offices) |
|
(Zip
Code) |
|
(717) 747-1519
Registrant’s
telephone number, including area code
Not Applicable
(Former
name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement
communications pursuant to Rule 14d-2(b)under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, $2.50 par value |
|
CVLY |
|
NASDAQ Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging
growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition |
On July 27, 2023, Codorus Valley Bancorp, Inc. (the “Corporation”)
issued a press release (the “Press Release”) announcing the Corporation’s results of operations for the quarter and
year ended June 30, 2023. A copy of the Press Release and supplementary financial information which accompanied the Press Release are
attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
The information
included in Exhibit 99.1 shall be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, and therefore
may be incorporated by reference in the Corporation’s filings under the Securities Act of 1933, as amended.
Item 9.01. |
Financial Statements and Exhibits |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.
|
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CODORUS VALLEY BANCORP, INC. |
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Date: |
July 27, 2023 |
|
By: |
/s/ Larry D. Pickett |
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Larry D. Pickett |
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Executive Vice President, and Chief Financial Officer
(Principal Financial and Accounting Officer) |
|
Exhibit 99.1
FOR
IMMEDIATE RELEASE
July
27, 2023
Codorus
Valley Bancorp, Inc.
Reports
Second Quarter 2023 Earnings
| | Second
quarter net income of $6.6 million compared to net income of $2.0 million in the quarter
ended June 30, 2022, and $7.0 million in the quarter ended March 31, 2023; |
| | 63
basis point increase in net interest margin from the quarter ended June 30, 2022,
and 19 basis point decrease from the quarter ended March 31, 2023, to 3.81 percent; |
| | Second
quarter efficiency ratio of 64.19 percent; return on average assets of 1.22 percent;
and return on equity of 14.17 percent; |
| | Steady
performance in credit metrics with nonperforming assets to total loans at 0.70 percent
at June 30, 2023; |
| | Cash
dividend of $0.17 per common share payable on August 8, 2023, to holders of record on
July 25, 2023. |
YORK,
Pa. – 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 $6.6 million or $0.69 per diluted common share, for the quarter ended June 30, 2023. This compares to net income of $2.0 million
or $0.20 per diluted common share, for the quarter ended June 30, 2022, representing an increase of $4.6 million or 238 percent,
and compares to net income of $7.0 million or $0.73 per diluted common share for the first quarter of 2023, representing a decrease
of $400,000 or 5.5 percent. For the first six months of 2023, net income was $13.6 million or $1.42 per diluted share, compared
to $5.0 million or $0.52 per diluted share, for the first six months of 2022, representing an increase of $8.6 million or 172
percent.
“In
the second quarter, the PeoplesBank team continued to concentrate on actions that will position the Corporation for long-term
financial well-being,” stated Craig L. Kauffman, President and CEO. “During the quarter we made efforts to increase
our liquidity, improve credit quality, fortify the balance sheet, and position the Corporation to support its stakeholders. As
a result, we were pleased that the Board increased the cash dividend to $0.17 per share, an increase of $0.01 over the first quarter
of 2023.”
REVIEW
OF RESULTS
Balance
Sheet
Loans
Loans
increased $49.1 million from December 31, 2022 to June 30, 2023, an annualized growth rate of 6.0 percent. Nonperforming assets
increased $600,000, or 6.3 percent to $9.7 million from December 31, 2022 to June 30, 2023, primarily due to a single loan in
the amount of $1.7 million that was more than 90 days past due but still accruing at quarter-end.
Investment
Securities
Investment
Securities decreased $2.8 million to $342.7 million at June 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 June 30, 2023 was 2.72
percent, compared to 2.12 percent for the three months ended June 30, 2022 and 2.68 percent for the three months ended March 31,
2023. The unrealized loss on the securities portfolio was $46.6 million at June 30, 2023, compared to $30.7 million at June 30,
2022 and $40.4 million at March 31, 2023.
Borrowings
FHLB
advances and other short-term borrowings increased $71.7 million to $83.3 million at June 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.
Deposits
Total
Deposits decreased $60.5 million, or 3.1 percent from December 31, 2022 to June 30, 2023, ending the period at $1.88 billion.
From year-end 2022 to June 30, 2023, noninterest-bearing demand accounts decreased $55.6 million or 12.0 percent, and interest-bearing
demand accounts decreased $18.0 million or 6.2 percent. During that same period, within other interest-bearing deposit categories,
money market accounts decreased by $18.4 million or 2.8 percent and savings accounts decreased $13.2 million or 8.2 percent. Offsetting
the decreases, certificates of deposit increased by $44.6 million or 11.7 percent. As a result of the change in deposit mix, the
average cost of interest-bearing deposits increased to 1.94 percent for the quarter ended June 30, 2023, compared to 0.26 percent
for the quarter ended June 30, 2022 and 1.43 percent for the quarter ended March 31, 2023. For the six months ended June 30, 2023,
the average cost of interest-bearing deposits increased to 1.69 percent, compared to 0.26 percent for the six months ended June
30, 2022. During the three months ended June 30, 2023 overall deposit activity stabilized with a decline of $6.7 million or 0.36
percent from the quarter ended March 31, 2023. We anticipate downward pressure on net interest margin to continue in the second
half of 2023.
Income
Statement
The
Corporation’s net interest income for the three months ended June 30, 2023 was $19.9 million, an increase of 12.2 percent
when compared to $17.7 million for the three months ended June 30, 2022 and a decrease of 3.2 percent when compared to $20.6 million
for the three months ended March 31, 2023. The Corporation’s tax-equivalent net interest margin (“NIM”) was
3.81 percent for the three months ended June 30, 2023, compared to 3.18 percent for the same period in 2022 and 4.00 percent for
the quarter ended March 31, 2023. Net interest income for the six months ended June 30, 2023 was $40.5 million, an increase of
21.0 percent when compared to $33.4 million for the six months ended June 30, 2022. The Corporation’s tax-equivalent NIM
was 3.90 percent for the six months ended June 30, 2023, compared to 2.98 percent for the six months ended June 30, 2022.
The
Corporation’s provision for credit losses, which includes provision for credit losses on unfunded commitments, for the three
months ended June 30, 2023 was a reversal of $77,000 compared to a provision for loan losses of $3.0 million for the three months
ended June 30, 2022 and a provision for credit losses of $738,000 for the quarter ended March 31, 2023. The Corporation’s
nonperforming assets ratio was 0.58 percent at June 30, 2023, a 17.1 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 and records impairment 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 June 30, 2023 was $4.1 million, an increase of $140,000 or 3.6 percent, compared to noninterest
income of $3.9 million for the three months ended June 30, 2022 and an increase of $71,000 or 1.8 percent compared to the three
months ended March 31, 2023. The increase in the current quarter from the three months ended June 30, 2022, was primarily due
to higher service charges on deposit accounts, offset by a decrease in gain on sale of loans. The increase in the current quarter
from the first quarter of 2023 was due to higher service charges on deposit accounts and no loss on sales of securities in the
current period, offset by a decrease in other income associated with interest rate swap fees and a decrease in gains on assets
held for sale. Noninterest income for the six months ended June 30, 2023 was $8.0 million, an increase of $258,000, as compared
to noninterest income of $7.8 million for the six months ended June 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 six months
ended June 30, 2022.
Noninterest
expense was $15.5 million for the second quarter 2023, a decrease of $700,000 or 4.6 percent, as compared to noninterest expense
of $16.2 million for the second quarter 2022 and an increase of $700,000 compared to noninterest expense of $14.8 million for
the first quarter of 2023. Year over year 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. The increase as compared to the first
quarter of 2023 was primarily the result of higher variable compensation accruals, higher charitable donations, partially offset
by lower other expense. Noninterest expense was $30.3 million for the six months ended June 30, 2023, a decrease of $600,000 or
2.0 percent, as compared to noninterest expense of $30.9 million for the six months ended June 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 June 30, 2023 was $1.9 million compared to $500,000 for the same period in 2022 and $2.0 million
in the quarter ended March 31, 2023. The effective tax rate for the three month periods ended June 30, 2023, June 30, 2022 and
March 31, 2023 was 22.7 percent, 20.4 and 22.2 percent, respectively. Income tax expense for the six months ended June 30, 2023
was $3.9 million compared to $1.3 million for the six months ended June 30, 2022. The effective tax rate for the six months ended
June 30, 2023 and June 30, 2022 was 22.4 and 20.7, respectively.
Capital
Shareholders’
equity totaled $185.9 million at June 30, 2023, an increase of $8.6 million from $177.3 million at December 31, 2022. The increase
was primarily attributable to net income of $13.6 million, partially offset by dividends paid of $3.1 million for the six months
ended June 30, 2023 and the adoption of CECL of $2.1 million. Other changes related to accumulated other comprehensive loss and
issuance of treasury stock.
Book
value per share was $19.34 and $18.51 at June 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 $19.10 per share and $22.81
per share, respectively, at June 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 12.20 percent at June 30, 2023, an increase from 12.04 percent at December 31, 2022. At June 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 June 30, 2023, 84%
of the Bank’s deposits were estimated to be FDIC-insured, and an additional 7% of deposits were fully collateralized. The
average account size of the Bank’s consumer deposit base is less than $18,000, and the average account size of the Bank’s
business deposit base is less than $90,000.
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 $292 million or 18.4 percent.
Although
the Bank had not utilized the Federal Reserve’s Bank Term Funding Facility as of June 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
July 11, 2023, the Board of Directors of the Corporation declared a regular quarterly cash dividend of $0.17 per share, payable
on August 8, 2023 to common shareholders of record at the close of business on July 25, 2023. The payment of this $0.17 per share
cash dividend is $0.01 or 6 percent higher than the prior quarterly dividend.
Business
Lines
In
the second quarter of 2023, Consumer Banking marketing efforts continued to focus on deposit accounts by incentivizing new openings
of Momentum Checking and Savings accounts. Efforts included traditional and digital marketing, using mass marketing and targeted
marketing approaches. This led to a 141 percent increase in online traffic to the Bank’s Momentum Check and Savings webpage
over the first quarter of 2023 and a 25 percent increase in online loan applications and related loan bookings. In addition,
the Bank promoted its mortgage and HELOC offerings, and digital marketing campaigns were deployed in certain branch markets, resulting
in a 13.5 percent increase in web visitors related to that campaign over the first quarter of 2023.
Business
Banking marketing efforts continued to focus on helping clients through the Bank’s Preferred SBA Lender program in the first
month of the second quarter of 2023, transitioning to an offer for Treasury Management services in the last two months of the
quarter. Interest for the Bank’s Treasury Management offer was high, resulting in the offer landing page ranking as the
highest-viewed Business Banking-related webpage on the Bank’s website in the second quarter of 2023. Additionally, during
the second quarter of 2023, the Bank hired two seasoned revenue leaders, a York-based Business Banking Leader and a Maryland-based
CRE Team Leader.
PeoplesBank
Wealth Management continued to offer the expertise of its team to clients through a variety of events and personal outreach. In
addition, the Bank welcomed a new Wealth Advisor to the team to further deepen the Bank’s presence in the markets it serves.
Overall,
marketing efforts led to a 5 percent increase in website visitors over the first quarter of 2023. Desktop users increased 2.8
percent and mobile device users increased 7.7 percent over the first quarter of 2023.
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 |
Larry D. Pickett |
President and CEO |
Chief Financial Officer |
717-747-1501 |
717-747-1502 |
ckauffman@peoplesbanknet.com
|
lpickett@peoplesbanknet.com |
CODORUS VALLEY BANCORP, INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except share and per share data) | |
June 30, 2023 | | |
December 31, 2022 | | |
June 30, 2022 | |
| |
| | |
| | |
| |
Assets | |
| | | |
| | | |
| | |
Interest bearing deposits with banks | |
$ | 68,946 | | |
$ | 99,777 | | |
$ | 262,122 | |
Cash and due from banks | |
| 20,670 | | |
| 20,662 | | |
| 21,847 | |
Total cash and cash equivalents | |
| 89,616 | | |
| 120,439 | | |
| 283,969 | |
Securities, available-for-sale, at fair value (amortized cost $389,292, net of allowance for credit losses of $0) | |
| 342,691 | | |
| 345,457 | | |
| 329,032 | |
Restricted investment in bank stocks, at cost | |
| 3,917 | | |
| 955 | | |
| 955 | |
Loans held for sale | |
| 428 | | |
| 154 | | |
| 1,154 | |
Loans (net of deferred fees of $3,883 - 2023 and $3,813 - 2022) | |
| 1,681,688 | | |
| 1,632,857 | | |
| 1,584,532 | |
Less-allowance for credit losses (1) | |
| (20,681 | ) | |
| (20,736 | ) | |
| (22,865 | ) |
Net loans | |
| 1,661,007 | | |
| 1,612,121 | | |
| 1,561,667 | |
Premises and equipment, net | |
| 19,672 | | |
| 21,136 | | |
| 21,534 | |
Operating leases right-of-use assets | |
| 2,772 | | |
| 3,072 | | |
| 3,412 | |
Goodwill | |
| 2,301 | | |
| 2,301 | | |
| 2,301 | |
Other assets | |
| 93,313 | | |
| 89,417 | | |
| 84,699 | |
Total assets | |
$ | 2,215,717 | | |
$ | 2,195,052 | | |
$ | 2,288,723 | |
Liabilities | |
| | | |
| | | |
| | |
Deposits | |
| | | |
| | | |
| | |
Noninterest bearing | |
$ | 408,290 | | |
$ | 463,853 | | |
$ | 497,396 | |
Interest bearing | |
| 1,474,383 | | |
| 1,479,366 | | |
| 1,542,179 | |
Total deposits | |
| 1,882,673 | | |
| 1,943,219 | | |
| 2,039,575 | |
Short-term borrowings | |
| 83,320 | | |
| 11,605 | | |
| 14,249 | |
Long-term debt | |
| 11,535 | | |
| 11,550 | | |
| 11,565 | |
Subordinate debentures - face amount $31,000 (less discount and debt issuance cost of $196 at June 30, 2023 and $236 at December 31, 2022) | |
| 30,804 | | |
| 30,764 | | |
| 30,723 | |
Operating leases liabilities | |
| 2,892 | | |
| 3,204 | | |
| 3,559 | |
Allowance for credit losses on off-balance sheet credit exposures | |
| 2,089 | | |
| 0 | | |
| 0 | |
Other liabilities | |
| 16,535 | | |
| 17,410 | | |
| 13,770 | |
Total liabilities | |
| 2,029,848 | | |
| 2,017,752 | | |
| 2,113,441 | |
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 June 30, 2023 and December 31, 2022; and shares outstanding: 9,611,110 at June
30, 2023 and 9,581,230 at December 31, 2022 | |
| 24,709 | | |
| 24,709 | | |
| 24,708 | |
Additional paid-in capital | |
| 142,272 | | |
| 141,896 | | |
| 141,678 | |
Retained earnings | |
| 60,532 | | |
| 52,146 | | |
| 39,926 | |
Accumulated other comprehensive loss | |
| (35,650 | ) | |
| (34,764 | ) | |
| (23,462 | ) |
Treasury stock shares outstanding, at cost: 272,550 shares at June 30, 2023 and 302,430 at December 31, 2022 | |
| (5,994 | ) | |
| (6,687 | ) | |
| (7,568 | ) |
Total shareholders’ equity | |
| 185,869 | | |
| 177,300 | | |
| 175,282 | |
Total liabilities and shareholders’ equity | |
$ | 2,215,717 | | |
$ | 2,195,052 | | |
$ | 2,288,723 | |
(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 | | |
Six months ended | |
| |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | |
(dollars in thousands, except per share data) | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Interest income | |
| | | |
| | | |
| | | |
| | | |
| | |
Loans, including fees | |
$ | 24,803 | | |
$ | 23,034 | | |
$ | 16,788 | | |
$ | 47,837 | | |
$ | 32,469 | |
Investment securities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable | |
| 2,492 | | |
| 2,457 | | |
| 1,732 | | |
| 4,949 | | |
| 3,012 | |
Tax-exempt | |
| 99 | | |
| 101 | | |
| 105 | | |
| 200 | | |
| 204 | |
Dividends | |
| 51 | | |
| 17 | | |
| 10 | | |
| 68 | | |
| 19 | |
Other | |
| 545 | | |
| 684 | | |
| 648 | | |
| 1,229 | | |
| 876 | |
Total interest income | |
| 27,990 | | |
| 26,293 | | |
| 19,283 | | |
| 54,283 | | |
| 36,580 | |
Interest expense | |
| | | |
| | | |
| | | |
| | | |
| | |
Deposits | |
| 7,077 | | |
| 5,137 | | |
| 1,010 | | |
| 12,214 | | |
| 2,072 | |
Federal funds purchased and other short-term borrowings | |
| 437 | | |
| 38 | | |
| 12 | | |
| 475 | | |
| 22 | |
Long-term debt | |
| 30 | | |
| 28 | | |
| 83 | | |
| 58 | | |
| 188 | |
Subordinated debentures | |
| 547 | | |
| 535 | | |
| 439 | | |
| 1,082 | | |
| 858 | |
Total interest expense | |
| 8,091 | | |
| 5,738 | | |
| 1,544 | | |
| 13,829 | | |
| 3,140 | |
Net interest income | |
| 19,899 | | |
| 20,555 | | |
| 17,739 | | |
| 40,454 | | |
| 33,440 | |
(Recovery of) provision for credit losses - loans (1) | |
| (31 | ) | |
| 492 | | |
| 2,974 | | |
| 461 | | |
| 4,001 | |
(Recovery of) provision for credit losses - unfunded commitments (1) | |
| (46 | ) | |
| 246 | | |
| 0 | | |
| 200 | | |
| 0 | |
Net interest income after provision for credit losses | |
| 19,976 | | |
| 19,817 | | |
| 14,765 | | |
| 39,793 | | |
| 29,439 | |
Noninterest income | |
| | | |
| | | |
| | | |
| | | |
| | |
Trust and investment services fees | |
| 1,275 | | |
| 1,202 | | |
| 1,137 | | |
| 2,477 | | |
| 2,299 | |
Income from mutual fund, annuity and insurance sales | |
| 323 | | |
| 369 | | |
| 345 | | |
| 692 | | |
| 675 | |
Service charges on deposit accounts | |
| 1,541 | | |
| 1,485 | | |
| 1,368 | | |
| 3,026 | | |
| 2,650 | |
Income from bank owned life insurance | |
| 329 | | |
| 322 | | |
| 308 | | |
| 651 | | |
| 619 | |
Other income | |
| 587 | | |
| 862 | | |
| 532 | | |
| 1,449 | | |
| 951 | |
(Loss) gain on sale of loans held for sale | |
| (4 | ) | |
| 10 | | |
| 221 | | |
| 6 | | |
| 579 | |
Gain on sale of assets held for sale | |
| 0 | | |
| 118 | | |
| 0 | | |
| 118 | | |
| 0 | |
Loss on sales of securities | |
| 0 | | |
| (388 | ) | |
| 0 | | |
| (388 | ) | |
| 0 | |
Total noninterest income | |
| 4,051 | | |
| 3,980 | | |
| 3,911 | | |
| 8,031 | | |
| 7,773 | |
Noninterest expense | |
| | | |
| | | |
| | | |
| | | |
| | |
Personnel | |
| 9,489 | | |
| 9,042 | | |
| 8,491 | | |
| 18,531 | | |
| 16,881 | |
Occupancy of premises, net | |
| 880 | | |
| 978 | | |
| 922 | | |
| 1,858 | | |
| 1,901 | |
Furniture and equipment | |
| 878 | | |
| 838 | | |
| 812 | | |
| 1,716 | | |
| 1,699 | |
Professional and legal | |
| 379 | | |
| 467 | | |
| 1,055 | | |
| 846 | | |
| 1,914 | |
Marketing | |
| 387 | | |
| 276 | | |
| 433 | | |
| 663 | | |
| 833 | |
FDIC insurance | |
| 244 | | |
| 250 | | |
| 188 | | |
| 494 | | |
| 427 | |
Debit card processing | |
| 432 | | |
| 478 | | |
| 385 | | |
| 910 | | |
| 767 | |
Charitable donations | |
| 899 | | |
| 32 | | |
| 885 | | |
| 931 | | |
| 915 | |
External data processing | |
| 1,043 | | |
| 1,010 | | |
| 1,018 | | |
| 2,053 | | |
| 1,839 | |
Committee & Director Fees | |
| 88 | | |
| 358 | | |
| 85 | | |
| 456 | | |
| 280 | |
PA shares (benefit) tax | |
| (423 | ) | |
| 343 | | |
| (397 | ) | |
| (80 | ) | |
| (41 | ) |
(Recovery of) impaired loan carrying costs | |
| (238 | ) | |
| (98 | ) | |
| 157 | | |
| (336 | ) | |
| 295 | |
Other | |
| 1,418 | | |
| 837 | | |
| 2,189 | | |
| 2,245 | | |
| 3,189 | |
Total noninterest expense | |
| 15,476 | | |
| 14,811 | | |
| 16,223 | | |
| 30,287 | | |
| 30,899 | |
Income before income taxes | |
| 8,551 | | |
| 8,986 | | |
| 2,453 | | |
| 17,537 | | |
| 6,313 | |
Provision for income taxes | |
| 1,940 | | |
| 1,994 | | |
| 500 | | |
| 3,934 | | |
| 1,307 | |
Net income | |
$ | 6,611 | | |
$ | 6,992 | | |
$ | 1,953 | | |
$ | 13,603 | | |
$ | 5,006 | |
Net income available to common shareholders | |
| 6,611 | | |
| 6,992 | | |
| 1,953 | | |
| 13,603 | | |
| 5,006 | |
Net income per share, basic | |
| 0.69 | | |
| 0.73 | | |
| 0.20 | | |
| 1.42 | | |
| 0.53 | |
Net income per share, diluted | |
| 0.69 | | |
| 0.73 | | |
| 0.20 | | |
| 1.42 | | |
| 0.52 | |
(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 | | |
2022 | | |
2022 | | |
2022 | | |
June 30, | |
| |
2nd Qtr | | |
1st Qtr | | |
4th Qtr | | |
3rd Qtr | | |
2nd Qtr | | |
2023 | | |
2022 | |
Earnings and Per Share Data (1) | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
(in thousands, except per share data) | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Net income | |
$ | 6,611 | | |
$ | 6,992 | | |
$ | 7,932 | | |
$ | 7,154 | | |
$ | 1,953 | | |
$ | 13,603 | | |
$ | 5,006 | |
Basic earnings per share | |
$ | 0.69 | | |
$ | 0.73 | | |
$ | 0.83 | | |
$ | 0.75 | | |
$ | 0.20 | | |
$ | 1.42 | | |
$ | 0.53 | |
Diluted earnings per share | |
$ | 0.69 | | |
$ | 0.73 | | |
$ | 0.83 | | |
$ | 0.75 | | |
$ | 0.20 | | |
$ | 1.42 | | |
$ | 0.52 | |
Cash dividends paid per share | |
$ | 0.16 | | |
$ | 0.16 | | |
$ | 0.15 | | |
$ | 0.15 | | |
$ | 0.15 | | |
$ | 0.32 | | |
$ | 0.30 | |
Book value per share | |
$ | 19.34 | | |
$ | 19.28 | | |
$ | 18.51 | | |
$ | 17.63 | | |
$ | 18.37 | | |
$ | 19.34 | | |
$ | 18.37 | |
Tangible book value per share (2) | |
$ | 19.10 | | |
$ | 19.04 | | |
$ | 18.27 | | |
$ | 17.39 | | |
$ | 18.13 | | |
$ | 19.10 | | |
$ | 18.13 | |
Tangible book value per share without AOCI (8) | |
$ | 22.81 | | |
$ | 22.26 | | |
$ | 21.90 | | |
$ | 21.21 | | |
$ | 20.59 | | |
$ | 22.81 | | |
$ | 20.59 | |
Average shares outstanding | |
| 9,600 | | |
| 9,585 | | |
| 9,566 | | |
| 9,545 | | |
| 9,532 | | |
| 9,593 | | |
| 9,509 | |
Average diluted shares outstanding | |
| 9,610 | | |
| 9,612 | | |
| 9,589 | | |
| 9,568 | | |
| 9,565 | | |
| 9,612 | | |
| 9,541 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Performance Ratios (%) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Return on average assets (3) | |
| 1.22 | | |
| 1.29 | | |
| 1.43 | | |
| 1.25 | | |
| 0.34 | | |
| 1.25 | | |
| 0.42 | |
Return on average equity (3) | |
| 14.17 | | |
| 15.45 | | |
| 18.50 | | |
| 15.93 | | |
| 4.31 | | |
| 14.80 | | |
| 5.35 | |
Net interest margin (4) | |
| 3.81 | | |
| 4.00 | | |
| 3.98 | | |
| 3.66 | | |
| 3.18 | | |
| 3.90 | | |
| 2.98 | |
Efficiency ratio (5) | |
| 64.19 | | |
| 59.05 | | |
| 60.87 | | |
| 63.51 | | |
| 74.43 | | |
| 61.57 | | |
| 74.47 | |
Net overhead ratio (3)(6) | |
| 2.10 | | |
| 1.93 | | |
| 2.13 | | |
| 2.04 | | |
| 2.11 | | |
| 2.02 | | |
| 1.96 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Asset Quality Ratios (%) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loan charge-offs to average loans (3) | |
| 0.20 | | |
| 0.15 | | |
| 0.24 | | |
| 0.02 | | |
| 0.54 | | |
| 0.17 | | |
| 0.51 | |
Allowance for credit losses to total loans (7) | |
| 1.23 | | |
| 1.31 | | |
| 1.27 | | |
| 1.39 | | |
| 1.44 | | |
| 1.23 | | |
| 1.44 | |
Nonperforming assets to total loans and foreclosed real estate | |
| 0.70 | | |
| 0.55 | | |
| 0.70 | | |
| 0.99 | | |
| 1.05 | | |
| 0.70 | | |
| 1.05 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Capital Ratios (%) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Average equity to average assets | |
| 8.58 | | |
| 8.38 | | |
| 7.75 | | |
| 7.84 | | |
| 7.78 | | |
| 8.48 | | |
| 7.93 | |
Tier 1 leverage capital ratio | |
| 10.38 | | |
| 10.20 | | |
| 9.77 | | |
| 9.18 | | |
| 8.79 | | |
| 10.38 | | |
| 8.79 | |
Common equity Tier 1 capital ratio | |
| 12.37 | | |
| 12.19 | | |
| 12.04 | | |
| 11.80 | | |
| 11.63 | | |
| 12.37 | | |
| 11.63 | |
Tier 1 risk-based capital ratio | |
| 12.94 | | |
| 12.76 | | |
| 12.61 | | |
| 12.38 | | |
| 12.23 | | |
| 12.94 | | |
| 12.23 | |
Total risk-based capital ratio | |
| 15.85 | | |
| 15.75 | | |
| 15.57 | | |
| 15.42 | | |
| 15.30 | | |
| 15.85 | | |
| 15.30 | |
(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 | | |
2022 | | |
2022 | | |
2022 | |
| |
2nd Qtr | | |
1st Qtr | | |
4th Qtr | | |
3rd Qtr | | |
2nd Qtr | |
Total Shareholders’ Equity | |
$ | 185,869 | | |
$ | 184,946 | | |
$ | 177,300 | | |
$ | 168,339 | | |
$ | 175,282 | |
Less: Goodwill and Other Intangible Assets | |
| (2,302 | ) | |
| (2,303 | ) | |
| (2,303 | ) | |
| (2,303 | ) | |
| (2,304 | ) |
Tangible Shareholders’ Equity | |
$ | 183,567 | | |
$ | 182,643 | | |
$ | 174,997 | | |
$ | 166,036 | | |
$ | 172,978 | |
Less: Accumulated Other Comprehensive Income | |
| (35,650 | ) | |
| (30,941 | ) | |
| (34,764 | ) | |
| (36,499 | ) | |
| (23,462 | ) |
Tangible Shareholders’ Equity without AOCI | |
$ | 219,217 | | |
$ | 213,584 | | |
$ | 209,761 | | |
$ | 202,535 | | |
$ | 196,440 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Common Shares Outstanding | |
| 9,611 | | |
| 9,594 | | |
| 9,581 | | |
| 9,548 | | |
| 9,541 | |
Book Value Per Share | |
$ | 19.34 | | |
$ | 19.28 | | |
$ | 18.51 | | |
$ | 17.63 | | |
$ | 18.37 | |
Effect of Intangible Assets | |
| (0.24 | ) | |
| (0.24 | ) | |
| (0.24 | ) | |
| (0.24 | ) | |
| (0.24 | ) |
Tangible Book Value Per Share | |
$ | 19.10 | | |
$ | 19.04 | | |
$ | 18.27 | | |
$ | 17.39 | | |
$ | 18.13 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Book Value Per Share | |
$ | 19.34 | | |
$ | 19.28 | | |
$ | 18.51 | | |
$ | 17.63 | | |
$ | 18.37 | |
Effect of Intangible Assets and AOCI | |
| 3.47 | | |
| 2.98 | | |
| 3.39 | | |
| 3.58 | | |
| 2.22 | |
Tangible Book Value Per Share without AOCI | |
$ | 22.81 | | |
$ | 22.26 | | |
$ | 21.90 | | |
$ | 21.21 | | |
$ | 20.59 | |
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 inestors.
ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis
(Unaudited)
| |
Three
Months Ended | |
| |
June
30, 2023 | | |
March
31, 2023 | | |
June
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 | |
$ | 43,006 | | |
$ | 545 | | |
| 5.08 | % | |
$ | 60,286 | | |
$ | 684 | | |
| 4.60 | % | |
$ | 331,335 | | |
$ | 648 | | |
| 0.78 | % |
Investment securities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable | |
| 370,345 | | |
| 2,543 | | |
| 2.75 | | |
| 369,154 | | |
| 2,474 | | |
| 2.72 | | |
| 317,889 | | |
| 1,742 | | |
| 2.20 | |
Tax-exempt | |
| 22,581 | | |
| 121 | | |
| 2.15 | | |
| 23,537 | | |
| 125 | | |
| 2.15 | | |
| 25,561 | | |
| 132 | | |
| 2.07 | |
Total investment securities | |
| 392,926 | | |
| 2,664 | | |
| 2.72 | | |
| 392,691 | | |
| 2,599 | | |
| 2.68 | | |
| 343,450 | | |
| 1,874 | | |
| 2.19 | |
Loans: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable (1) | |
| 1,644,775 | | |
| 24,630 | | |
| 6.01 | | |
| 1,613,154 | | |
| 22,860 | | |
| 5.75 | | |
| 1,557,857 | | |
| 16,648 | | |
| 4.29 | |
Tax-exempt | |
| 22,292 | | |
| 214 | | |
| 3.85 | | |
| 22,597 | | |
| 217 | | |
| 3.89 | | |
| 15,837 | | |
| 176 | | |
| 4.46 | |
Total
loans | |
| 1,667,067 | | |
| 24,844 | | |
| 5.98 | | |
| 1,635,751 | | |
| 23,077 | | |
| 5.72 | | |
| 1,573,694 | | |
| 16,824 | | |
| 4.29 | |
Total
earning assets | |
| 2,102,999 | | |
| 28,053 | | |
| 5.35 | | |
| 2,088,728 | | |
| 26,360 | | |
| 5.12 | | |
| 2,248,479 | | |
| 19,346 | | |
| 3.45 | |
Other
assets (2) | |
| 72,796 | | |
| | | |
| | | |
| 71,428 | | |
| | | |
| | | |
| 82,763 | | |
| | | |
| | |
Total
assets | |
$ | 2,175,795 | | |
| | | |
| | | |
$ | 2,160,156 | | |
| | | |
| | | |
$ | 2,331,242 | | |
| | | |
| | |
Liabilities
and Shareholders’ Equity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Deposits: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest bearing demand | |
$ | 899,474 | | |
| 4,612 | | |
| 2.06 | % | |
$ | 902,917 | | |
| 3,461 | | |
| 1.55 | % | |
$ | 981,025 | | |
| 431 | | |
| 0.18 | % |
Savings | |
| 151,143 | | |
| 12 | | |
| 0.03 | | |
| 160,062 | | |
| 12 | | |
| 0.03 | | |
| 165,245 | | |
| 12 | | |
| 0.03 | |
Time | |
| 411,309 | | |
| 2,453 | | |
| 2.39 | | |
| 393,732 | | |
| 1,664 | | |
| 1.71 | | |
| 423,298 | | |
| 567 | | |
| 0.54 | |
Total interest bearing
deposits | |
| 1,461,926 | | |
| 7,077 | | |
| 1.94 | | |
| 1,456,711 | | |
| 5,137 | | |
| 1.43 | | |
| 1,569,568 | | |
| 1,010 | | |
| 0.26 | |
Short-term borrowings | |
| 44,139 | | |
| 437 | | |
| 3.97 | | |
| 12,894 | | |
| 38 | | |
| 1.20 | | |
| 12,080 | | |
| 12 | | |
| 0.40 | |
Long-term debt | |
| 14,520 | | |
| 208 | | |
| 5.75 | | |
| 14,690 | | |
| 194 | | |
| 5.37 | | |
| 21,828 | | |
| 153 | | |
| 2.81 | |
Subordinated
debentures | |
| 30,798 | | |
| 369 | | |
| 4.81 | | |
| 30,777 | | |
| 369 | | |
| 4.86 | | |
| 30,717 | | |
| 369 | | |
| 4.82 | |
Total
interest bearing liabilities | |
| 1,551,383 | | |
| 8,091 | | |
| 2.09 | | |
| 1,515,072 | | |
| 5,738 | | |
| 1.54 | | |
| 1,634,193 | | |
| 1,544 | | |
| 0.38 | |
Noninterest bearing
deposits | |
| 418,504 | | |
| | | |
| | | |
| 444,416 | | |
| | | |
| | | |
| 503,211 | | |
| | | |
| | |
Other liabilities | |
| 19,277 | | |
| | | |
| | | |
| 18,250 | | |
| | | |
| | | |
| 12,531 | | |
| | | |
| | |
Shareholders’
equity | |
| 186,631 | | |
| | | |
| | | |
| 182,418 | | |
| | | |
| | | |
| 181,307 | | |
| | | |
| | |
Total
liabilities and shareholders’ equity | |
$ | 2,175,795 | | |
| | | |
| | | |
$ | 2,160,156 | | |
| | | |
| | | |
$ | 2,331,242 | | |
| | | |
| | |
Net interest income
(tax equivalent basis) | |
| | | |
$ | 19,962 | | |
| | | |
| | | |
$ | 20,622 | | |
| | | |
| | | |
$ | 17,802 | | |
| | |
Net
interest margin (3) | |
| | | |
| | | |
| 3.81 | % | |
| | | |
| | | |
| 4.00 | % | |
| | | |
| | | |
| 3.18 | % |
Tax equivalent adjustment | |
| | | |
| (63 | ) | |
| | | |
| | | |
| (67 | ) | |
| | | |
| | | |
| (63 | ) | |
| | |
Net
interest income | |
| | | |
$ | 19,899 | | |
| | | |
| | | |
$ | 20,555 | | |
| | | |
| | | |
$ | 17,739 | | |
| | |
(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)
| |
Six Months Ended | |
| |
June 30, 2023 | | |
June 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 | |
$ | 51,598 | | |
$ | 1,229 | | |
| 4.80 | % | |
$ | 407,024 | | |
$ | 876 | | |
| 0.43 | % |
Investment securities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable | |
| 369,754 | | |
| 5,017 | | |
| 2.74 | | |
| 288,164 | | |
| 3,031 | | |
| 2.12 | |
Tax-exempt | |
| 23,057 | | |
| 246 | | |
| 2.15 | | |
| 25,075 | | |
| 256 | | |
| 2.06 | |
Total investment securities | |
| 392,811 | | |
| 5,263 | | |
| 2.70 | | |
| 313,239 | | |
| 3,287 | | |
| 2.12 | |
Loans: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable (1) | |
| 1,629,051 | | |
| 47,490 | | |
| 5.88 | | |
| 1,537,122 | | |
| 32,241 | | |
| 4.23 | |
Tax-exempt | |
| 22,443 | | |
| 431 | | |
| 3.87 | | |
| 13,378 | | |
| 287 | | |
| 4.33 | |
Total loans | |
| 1,651,494 | | |
| 47,921 | | |
| 5.85 | | |
| 1,550,500 | | |
| 32,528 | | |
| 4.23 | |
Total earning assets | |
| 2,095,903 | | |
| 54,413 | | |
| 5.24 | | |
| 2,270,763 | | |
| 36,691 | | |
| 3.26 | |
Other assets (2) | |
| 72,031 | | |
| | | |
| | | |
| 87,410 | | |
| | | |
| | |
Total assets | |
$ | 2,167,934 | | |
| | | |
| | | |
$ | 2,358,173 | | |
| | | |
| | |
Liabilities and Shareholders’ Equity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Deposits: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest bearing demand | |
$ | 901,186 | | |
| 8,073 | | |
| 1.81 | % | |
$ | 989,158 | | |
$ | 761 | | |
| 0.16 | % |
Savings | |
| 155,578 | | |
| 24 | | |
| 0.03 | | |
| 160,639 | | |
| 24 | | |
| 0.03 | |
Time | |
| 402,569 | | |
| 4,117 | | |
| 2.06 | | |
| 437,138 | | |
| 1,287 | | |
| 0.59 | |
Total interest bearing deposits | |
| 1,459,333 | | |
| 12,214 | | |
| 1.69 | | |
| 1,586,935 | | |
| 2,072 | | |
| 0.26 | |
Short-term borrowings | |
| 28,603 | | |
| 475 | | |
| 3.35 | | |
| 11,029 | | |
| 22 | | |
| 0.40 | |
Long-term debt | |
| 14,605 | | |
| 402 | | |
| 5.55 | | |
| 22,591 | | |
| 308 | | |
| 2.75 | |
Subordinated debentures | |
| 30,787 | | |
| 738 | | |
| 4.83 | | |
| 30,706 | | |
| 738 | | |
| 4.85 | |
Total interest bearing liabilities | |
| 1,533,328 | | |
| 13,829 | | |
| 1.82 | | |
| 1,651,261 | | |
| 3,140 | | |
| 0.38 | |
Noninterest bearing deposits | |
| 431,394 | | |
| | | |
| | | |
| 507,162 | | |
| | | |
| | |
Other liabilities | |
| 19,391 | | |
| | | |
| | | |
| 12,649 | | |
| | | |
| | |
Shareholders’ equity | |
| 183,821 | | |
| | | |
| | | |
| 187,101 | | |
| | | |
| | |
Total liabilities and shareholders’ equity | |
$ | 2,167,934 | | |
| | | |
| | | |
$ | 2,358,173 | | |
| | | |
| | |
Net interest income (tax equivalent basis) | |
| | | |
$ | 40,584 | | |
| | | |
| | | |
$ | 33,551 | | |
| | |
Net interest margin (3) | |
| | | |
| | | |
| 3.90 | % | |
| | | |
| | | |
| 2.98 | % |
Tax equivalent adjustment | |
| | | |
| (130 | ) | |
| | | |
| | | |
| (111 | ) | |
| | |
Net interest income | |
| | | |
$ | 40,454 | | |
| | | |
| | | |
$ | 33,440 | | |
| | |
(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.
v3.23.2
Cover
|
Jul. 27, 2023 |
Cover [Abstract] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Jul. 27, 2023
|
Entity File Number |
001-15536
|
Entity Registrant Name |
CODORUS
VALLEY BANCORP, INC.
|
Entity Central Index Key |
0000806279
|
Entity Tax Identification Number |
23-2428543
|
Entity Incorporation, State or Country Code |
PA
|
Entity Address, Address Line One |
105
Leader Heights Road
|
Entity Address, City or Town |
York
|
Entity Address, State or Province |
PA
|
Entity Address, Postal Zip Code |
17403
|
City Area Code |
(717)
|
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747-1519
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Common Stock, $2.50 par value
|
Trading Symbol |
CVLY
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Security Exchange Name |
NASDAQ
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Entity Emerging Growth Company |
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