Mid Penn Bancorp, Inc. (NASDAQ: MPB) (“Mid Penn”), the parent
company of Mid Penn Bank (the “Bank”) and MPB Financial Services,
LLC, today reported net income available to common shareholders
(“earnings”) for the quarter ended June 30, 2022 of $12.3 million,
or $0.77 per common share basic and diluted.
Key Highlights in the Second Quarter of
2022
- Earnings increased $898 thousand
and $0.06 per common share diluted to $12.3 million, or $0.77,
respectively, for the quarter ended June 30, 2022 compared to the
quarter ended March 31, 2022.
- Tax equivalent net interest margin
increased to 3.45% from 3.21% in the prior quarter and 3.34% in the
same period prior year.
- Loans grew 8% (annualized) during
the three months ended June 30, 2022 from the first quarter of
2022. Loans, excluding Payroll Protection Program (“PPP”) loans
(1), grew 11% (annualized) during the three months ended June 30,
2022 from the first quarter of 2022.
- Asset quality continues to remain
strong with both nonperforming loans to total loans and
nonperforming assets to total loans plus other real estate at 25
basis points (“bp”) at June 30, 2022.
- Book value per common share
increased to $31.23 and tangible book value per share (1) increased
to $23.57 at June 30, 2022, compared to $30.96 and $23.31,
respectively, at March 31, 2022.
“The team at Mid Penn is proud to deliver these
second quarter results to our shareholders. The second quarter was
our first full quarter after the completion of the Riverview
acquisition and resulting customer conversion and branch
optimization plan and it was also the first quarter in the last 8
with very little impact from PPP loans,” said Rory G. Ritrievi,
President and CEO. “The quarter was successful due to strong, high
quality and profitable organic loan growth of 11% annualized, smart
balance sheet management, continued strength in asset quality and
of course a healthy reduction in expenses. Within the quarter, we
saw a 7.6% improvement in net interest margin, a 12.2% improvement
in ROA, a 6.4% improvement in ROE, a 6.0% improvement in ROTCE, a
7.3% improvement in our efficiency ratio(1) and an increase in the
allowance of loan and lease losses to nonperforming assets to
211.7%. Those trends are all encouraging as we head into the last
half of the year.”
With this successful quarter, the Board is
pleased to announce a quarterly cash dividend of $0.20 per share of
common stock was declared at its meeting on July 27, 2022, payable
on August 22, 2022 to shareholders of record as of August 10,
2022.
(1) Non-GAAP
financial measure. Refer to the calculation on the section titled
“Reconciliation of Non-GAAP Measures” at the end of this
document.
Net Interest Income and Average Balance
Sheet
For the three months ended June 30, 2022, net
interest income was $35.4 million compared to net interest income
of $34.4 million for the three months ended March 31, 2022 and
$26.9 million for the three months ended June 30, 2021. The
tax-equivalent net interest margin for the three months ended June
30, 2022 was 3.45% versus 3.21% for the first quarter of 2022 and
3.34% for the second quarter of 2021, a 24 and 11 bp, respectively,
increase compared to the prior quarter and the same period in
2021.The linked quarter increase was the result of a 22 bp increase
in the yield on interest-earning assets and a 4 bp decrease in the
rate on interest-bearing liabilities, partially offset by a $236.5
million decrease in average interest-earning assets. The increase
in the yield on interest-earning assets was the result of a
combination of excess cash being re-deployed into higher yielding
investment securities and the increase in fed fund rates during the
second quarter of 2022. The decrease in the rate on
interest-bearing liabilities was primarily the result of a lag in
the repricing of deposits as well as the strategic decision to
allow higher cost time deposits obtained through the Riverview
acquisition to run-off.
For the six months ended June 30, 2022, net
interest income was $69.8 million, a $17.6 million, or 33.8%,
increase compared to net interest income of $52.2 million for the
six months ended June 30, 2021. The year-over-year increase in net
interest income was positively impacted by (i) the acquisition of
Riverview; (ii) the deployment of Fed Funds into higher yielding
investment securities since September 30, 2021; (iii) interest and
fees from core loan growth since June 30, 2021; and (iv) reduced
interest expense due to the lower cost of deposits in the six
months ended June 30, 2022 when compared to the same period in
2021. The tax-equivalent net interest margin for the six months
ended June 30, 2022 was 3.33%, a 7 bp decrease compared to 3.40%
for six months ended June 30, 2021. The decrease was primarily the
result of a 28 bp decrease in the yield on interest-earning assets.
The overall decrease in net interest margin for the six months
ended June 30, 2022 was driven by the reduction of PPP fees
recognized during the first six months of 2021, partially offset by
the improvement in cost of interest-bearing liabilities.
The three months ended June 30, 2022 included
the recognition of $652 thousand of PPP loan processing fees, a
decrease of $5.6 million compared to $6.2 million of PPP loan
processing fees recognized during the same period in 2021. These
PPP fees are recognized as interest income over the term of the
respective loan, or sooner if the loans are forgiven by the U.S.
Small Business Administration (“SBA”), or the borrower otherwise
pays down principal prior to the loan’s stated maturity. The six
months ended June 30, 2022 included the recognition of $3.6 million
of PPP loan processing fees, a decrease of $7.7 million compared to
$11.3 million of PPP loan processing fees recognized during the
same period in 2021. These PPP fees are recognized as interest
income over the term of the respective loan, or sooner if the loans
are forgiven by the U.S. Small Business Administration (“SBA”), or
the borrower otherwise pays down principal prior to the loan’s
stated maturity. As of June 30, 2022, there was $171 thousand in
deferred fees related to PPP loans that we anticipate will be
recognized during the third quarter of 2022.
Total average assets were $4.5 billion for the
second quarter of 2022, reflecting a decrease of $231.0 million, or
4.9%, compared to total average assets of $4.7 billion for the
first quarter of 2022, and an increase of $1.1 billion, or 29.9%,
compared to total average assets of $3.4 billion second quarter of
2021. The decrease in total average assets from the prior quarter
was primarily due to the reduction in federal funds sold. Total
average assets were $4.6 billion for the first half of 2022,
reflecting an increase of $1.3 billion, or 38.3%, compared to total
average assets of $3.3 billion the same period of 2021. The
increase in total average assets for both the quarter and year to
date as of June 30, 2021 to June 30, 2022 was primarily
attributable to the acquisition of Riverview, effective November
30, 2021.
Total average loans were $3.1 billion for the
second quarter of 2022, reflecting a decrease of $25.9 million, or
0.8%, compared to total average loans in the first quarter of 2022,
and an increase of $520.0 million, or 19.9%, compared to total
average loans of $2.6 billion for the second quarter of June 30,
2021. The decrease from the prior quarter was a result of the
forgiveness of $34.9 million in PPP loans, which was partially
offset by new loan originations. Total average loans were $3.1
billion for the first six months of 2022, reflecting an increase of
$545.4 million, or 21.2%, compared to total average loans in the
same period of 2021. The year-over-year growth is largely
attributable to the Riverview acquisition on November 30, 2021.
Total average deposits were $3.8 billion for the
second quarter of 2022, reflecting a decrease of $162.0 million, or
4.0%, compared to total average deposits in the first quarter of
2022, and an increase of $1.1 billion, or 19.9%, compared to total
average deposits of $2.6 billion second quarter of 2021. The
decrease in total average deposits during the second quarter was
attributable to the maturity of certificates of deposit, which have
renewed into lower rates, migrated to other deposit or retail
investment products, or exited the Bank. We strategically
right-sized our average cost of deposits through our targeted
deposit run-off. The average cost of deposits was 0.21% for the
second quarter of 2022, representing a 2 bp decrease from the first
quarter of 2022 and a 22 bp decrease from the second quarter of
2021. Total average deposits were $3.9 billion for the first half
of 2022, reflecting an increase of $1.3 billion, or 47.9%, compared
to total average deposits of $2.6 billion same period of 2021. The
growth in average deposits compared to June 30, 2021 was positively
impacted by the Riverview acquisition and significant increases in
noninterest-bearing, interest-bearing, and money market deposits,
primarily due to both expanded cash management and commercial
deposit account relationships, and new deposits established as a
result of Mid Penn’s PPP loan funding activities.
Asset Quality
The provision for loan and lease losses was $1.7
million for the three months ended June 30, 2022, an increase of
$1.2 million compared to the provision for loan losses of $500
thousand for the three months ended March 31, 2022 and an increase
of $525 thousand compared to the three months ended June 30, 2021.
The provision for loan and lease losses was $2.2 million for the
six months ended June 30, 2022, an increase of $75 thousand
compared to the provision for loan losses for the same period of
2021. The increase in the provision for the three and six months
ended June 30, 2022 was the result of one partially legacy
commercial relationship that was downgraded from substandard
accrual to substandard non-accrual during the quarter and the
growth in total loans since the end of the second quarter of 2021.
The allowance for loan and lease losses and the related provision
reflects Mid Penn’s continued application of the incurred loss
method for estimating credit losses. We will adopt the current
expected credit loss (“CECL”) accounting standard, as required,
effective January 1, 2023.
Total nonperforming assets were $8.0 million at
June 30, 2022, a decrease compared to nonperforming assets of $10.5
million at December 31, 2021 and $8.7 million at June 30, 2021. The
decrease in nonperforming assets since December 31, 2021 was
primarily the result of the successful workout of two non-accrual
home equity loans amongst one relationship totaling $2.3 million
during the first quarter of 2022. The nonperforming assets included
acquired impaired loans assumed in the Riverview transaction
totaling $3.3 million as of December 31, 2021.
The allowance for loan and lease losses as a
percentage of total loans including PPP loans was 0.53% at June 30,
2022, compared to 0.49% at March 31, 2022 and 0.47% at December 31,
2021. The ratios as of June 30, 2022 and December 31, 2021, were
affected by the addition of the Riverview acquired loans, which, in
accordance with purchase accounting principles, were recorded at
fair value at the time of acquisition with no related allowance for
loan and lease losses.
Capital
Shareholders’ equity increased $5.8 million, or
1.2%, from $490.1 million as of December 31, 2021 to $495.8 million
as of June 30, 2022. Regulatory capital ratios for both Mid Penn
and its banking subsidiary indicate regulatory capital levels in
excess of the regulatory minimums and the levels necessary for the
Bank to be considered “well capitalized” at both June 30, 2022 and
December 31, 2021.
Share Repurchase Program
During the second quarter of 2022, Mid Penn
repurchased 103,912 shares of outstanding common stock at an
average price of $26.88 under its treasury stock repurchase program
(“Program”). The Program authorized the repurchase of up to $15.0
million of Mid Penn’s outstanding common stock, of which $10.3
million remains available for repurchase.
Noninterest Income
For the three months ended June 30, 2022,
noninterest income totaled $5.2 million, a decrease of $520
thousand, or 9.0%, compared to noninterest income of $5.8 million
for the first quarter of 2022, primarily driven by decreases of
$444 thousand in other income, $234 thousand in service charges on
deposits, $224 thousand in mortgage banking income and a $166
thousand change in the net gain on sales of SBA loans. The decrease
in other income was primarily the result of a higher fair value
gain on a swap in the first quarter of 2022 compared to the second
quarter of 2022. Service charges on deposits decreased as a result
of certain Riverview legacy fees being aligned with Mid Penn fees
at the end of the first quarter of 2022. The decrease in mortgage
banking income was the result of increasing mortgage interest rates
slowing mortgage loan originations and secondary-market loan sales
and gains during the second quarter of 2022. These decreases were
partially offset by increases of $153 thousand in income from
fiduciary activities, $71 thousand in ATM debit card interchange
income and $14 thousand in merchant services income.
Compared to the second quarter of 2021,
noninterest income in the second quarter of 2022 decreased $422
thousand, or 7.5%, driven by a $2.5 million decrease in mortgage
banking income, a $122 thousand decrease in merchant services
income and a $114 thousand lower net gain on sales of SBA loans.
The decreases were partially offset by an $877 thousand increase in
other income, a $663 thousand increase in income from fiduciary
activities, a $472 thousand increase in ATM debit card interchange
income and a $273 thousand increase in service charges on deposits.
Other income increased as a result of income in the second quarter
of 2022 from a hedging program related to mortgage derivative
activities that Mid Penn did not participate in during the second
quarter of 2021, as well as a result of a fair value gain on a swap
in the second quarter of 2022 compared to no fair value gain in the
second quarter of 2021. The increase in income from fiduciary
activities was attributable to favorable growth in trust assets
under management and increased sales of retail investments
products, as a result of successful business development efforts by
Mid Penn’s trust and wealth management team. ATM debit card
interchange income and service charges on deposits increased
primarily as a result of a higher volume of transactional deposit
accounts, including deposit accounts assumed in the Riverview
acquisition.
For the six months ended June 30, 2022,
noninterest income totaled $11.0 million, an increase of $616
thousand, or 5.9%, compared to noninterest income of $10.4 million
for the first six months of 2021, primarily driven by increases of
$2.2 million in other income, $1.2 million in income from fiduciary
activities, $961 thousand in ATM debit card interchange income and
$805 thousand in service charges on deposits. The increase in other
income was primarily the result of a fair value gain on a swap in
the first half of 2022 compared to the same period of 2021. The
increases in fiduciary activities was a result of increased
activity in the wealth management area and the Riverview
transaction. The other increases mentioned were primarily the
result of the Riverview transaction. These favorable variances were
partially offset by a decrease in mortgage banking income of $4.3
million for the six months ended June 30, 2022 compared to the same
period of 2021 due to increasing mortgage interest rates slowing
mortgage loan originations and secondary-market loan sales and
gains during 2022.
Mortgage banking income decreased as interest
rates increased in response to the increase in the fed funds rate
during the first half of 2022. As a result of the corresponding
mortgage rate increases and an increase in property values driven
by supply shortfalls and high liquidity levels among buyers, the
mortgage loan refinancing market has slowed, and purchase money
mortgage originations have slowed relative to the lending volumes
seen in the past several years.
Noninterest Expense
For the three months ended June 30, 2022,
noninterest expense totaled $23.9 million, a decrease of $1.8
million, or 7.1%, compared to noninterest expense of $25.7 million
for the first quarter of 2022. Most categories of noninterest
expense decreased during the second quarter of 2022, as a result of
cost savings fully recognized in the second quarter of 2022 from
the completion of the Riverview acquisition. The most significant
cost savings were in salaries and benefits.
Compared to the second quarter of 2021,
noninterest expense in the second quarter of 2022 increased $4.5
million, or 22.9%, primarily as a result of higher expenses from
the Riverview acquisition, most significantly increases of $2.4
million in salaries and benefits and $2.0 million in other
expenses. The increases were partially offset by decreases of $712
thousand in mortgage banking profit-sharing expense, $522 thousand
of post-acquisition restructuring expense in 2021 and $240 thousand
in charitable contributions qualifying for state tax credits.
For the six months ended June 30, 2022,
noninterest expense totaled $49.7 million, an increase of $12.6
million, or 34.2%, compared to noninterest expense of $37.1 million
for the same period of 2021 primarily as a result of higher
expenses from the Riverview acquisition, most significantly
increases of $6.1 million in salaries and benefits and $4.7 million
in other expenses.
The provision for income taxes was $2.8 million
during the three months ended June 30, 2022, compared to $2.6
million and $2.3 million of income tax provision recorded for the
first quarter of 2022 and the second quarter of 2021, respectively.
The provision for income taxes for the three months ended June 30,
2022 reflects a combined Federal and State effective tax rate of
18.5% compared to 18.4% and 19.4% for the first quarter of 2022 and
the second quarter of 2021, respectively. The provision for income
taxes was $5.3 million during the six months ended June 30, 2022,
compared to $4.5 million of income tax provision recorded for the
first half of 2021. The provision for income taxes for the six
months ended June 30, 2022 reflects a combined Federal and State
effective tax rate of 18.4% compared to 19.1% for the same period
of 2021. The decrease in the effective tax rate compared to the
periods of the prior year reflects higher tax-exempt interest
recognized due to an increase in tax-exempt securities being held
in the investment security portfolio when compared to the prior
year, the favorable treatment of the increase in cash surrender
value on bank owned life insurance policies, which are nontaxable
for federal tax purposes, and the expansion of low income housing
tax credit projects (“Projects”) acquired in the Riverview
transaction, as well as Mid Penn legacy Projects. These decreases
were partially offset by higher income before taxes in both periods
of 2022.
The efficiency ratio(1) was 57.57% in the second
quarter of 2022, compared to 62.12% in the first quarter of 2022,
and 57.42% in the second quarter of 2021. The improvement in the
efficiency ratio during the second quarter 2022 was due to the cost
savings being realized from the Riverview acquisition. The
efficiency ratio was 59.83% for the six months ended June 30, 2022,
compared to 57.47% for the six months ended June 30, 2021. The
increase in the efficiency ratio during the six months ended June
30, 2022 was primarily due to the increase in salary and benefit
expenses related to Riverview employees retained through
conversion.
Merger & Acquisition Activity On
November 30, 2021, Mid Penn announced the successful completion of
the merger acquisition of Riverview. The acquisition of Riverview
impacted periods presented within this report. For more information
regarding this transaction, please see Mid Penn’s Annual Report on
Form 10-K for the year ended December 31, 2021.
Management considers subsequent events occurring
after the balance sheet date for matters which may require
adjustment to, or disclosure in, the consolidated financial
statements. The review period for subsequent events extends up
to and including the filing date of a public company’s consolidated
financial statements when filed with the Securities and Exchange
Commission (“SEC”). Accordingly, the financial information in
this announcement is subject to change. The statements are valid
only as of the date hereof and Mid Penn disclaims any obligation to
update this information.
(1) Non-GAAP
financial measure. Refer to the calculation on the section titled
“Reconciliation of Non-GAAP Measures” at the end of this
document.
SPECIAL CAUTIONARY NOTICE REGARDING
FORWARD-LOOKING STATEMENTS
This press release, and oral statements made
regarding the subjects of this release, contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are not historical facts and
include expressions about management's confidence and strategies
and management's current views and expectations about new and
existing programs and products, relationships, opportunities,
technology and market conditions. These statements may be
identified by such forward-looking terminology as "continues,"
"expect," "look," "believe," "anticipate," "may," "will," "should,"
"projects," "strategy" or similar statements. Actual results may
differ materially from such forward-looking statements, and no
reliance should be placed on any forward-looking statement.
Factors that may cause results to differ materially from such
forward-looking statements include, but are not limited to, changes
in interest rates, spreads on earning assets and interest-bearing
liabilities, and interest rate sensitivity; prepayment speeds, loan
originations, credit losses and market values on loans, collateral
securing loans, and other assets; sources of liquidity; common
shares outstanding; common stock price volatility; the length and
extent of the COVID-19 pandemic; fair value of and number of
stock-based compensation awards to be issued in future periods; the
impact of changes in market values on securities held in Mid Penn’s
portfolio; the success and timing of PPP loan repayment and
forgiveness; legislation affecting the financial services industry
as a whole, and Mid Penn and Mid Penn Bank individually or
collectively, including tax legislation; results of the regulatory
examination and supervision process and oversight, including
changes in monetary policy and capital requirements; changes in
accounting policies or procedures as may be required by the
Financial Accounting Standards Board or regulatory agencies;
increasing price and product/service competition by competitors,
including new entrants; rapid technological developments and
changes; the ability to continue to introduce competitive new
products and services on a timely, cost-effective basis; the mix of
products/services; containing costs and expenses; governmental and
public policy changes; protection and validity of intellectual
property rights; reliance on large customers; technological,
implementation and cost/financial risks in large, multi-year
contracts; the outcome of future litigation and governmental
proceedings, including tax-related examinations and other matters;
continued availability of financing; the availability of financial
resources in the amounts, at the times and on the terms required to
support Mid Penn and Mid Penn Bank’s future businesses; material
differences in the actual financial results of merger, acquisition
and investment activities compared with Mid Penn’s initial
expectations, including the full realization of anticipated cost
savings and revenue enhancements; the possibility that the
anticipated benefits of the Riverview transaction are not realized
when expected or at all, including as a result of the impact of, or
problems arising from, the integration of the two companies or as a
result of the strength of the economy and competitive factors in
the areas where Mid Penn does business; diversion of management’s
attention from ongoing business operations and opportunities;
potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement or
completion of the Riverview transaction; the ability to complete
the integration of Mid Penn and Riverview successfully; the
dilution caused by Mid Penn’s issuance of additional shares of its
capital stock in connection with the Riverview transaction; and
other factors that may affect the future results of Mid
Penn.
For a more detailed description of these and
other factors which would affect our results, please see Mid Penn’s
filings with the SEC, including those risk factors identified in
the "Risk Factors" section and elsewhere in our Annual Report on
Form 10-K for the year ended December 31, 2021 and subsequent
filings with the SEC. The statements in this press release are made
as of the date of this press release, even if subsequently made
available by Mid Penn on its website or otherwise. Mid Penn assumes
no obligation for updating any such forward-looking statements at
any time, except as required by law.
SUMMARY FINANCIAL HIGHLIGHTS
(Unaudited):
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
(Dollars in thousands, except per share data) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
Ending Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
618,184 |
|
|
$ |
508,658 |
|
|
$ |
392,619 |
|
|
$ |
158,311 |
|
|
$ |
161,702 |
|
Net loans |
|
|
3,163,157 |
|
|
|
3,106,384 |
|
|
|
3,089,799 |
|
|
|
2,356,196 |
|
|
|
2,480,476 |
|
Total assets |
|
|
4,310,163 |
|
|
|
4,667,174 |
|
|
|
4,689,425 |
|
|
|
3,453,187 |
|
|
|
3,461,792 |
|
Total deposits |
|
|
3,702,587 |
|
|
|
3,989,037 |
|
|
|
4,002,016 |
|
|
|
2,961,881 |
|
|
|
2,782,124 |
|
Shareholders' equity |
|
|
495,835 |
|
|
|
494,161 |
|
|
|
490,076 |
|
|
|
349,308 |
|
|
|
341,569 |
|
Average
Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
580,406 |
|
|
|
462,648 |
|
|
|
286,134 |
|
|
|
158,296 |
|
|
|
148,972 |
|
Net loans |
|
|
3,129,334 |
|
|
|
3,103,469 |
|
|
|
2,319,544 |
|
|
|
2,422,378 |
|
|
|
2,609,803 |
|
Total assets |
|
|
4,465,906 |
|
|
|
4,696,894 |
|
|
|
3,579,649 |
|
|
|
3,508,757 |
|
|
|
3,437,692 |
|
Total deposits |
|
|
3,837,135 |
|
|
|
3,999,074 |
|
|
|
3,007,955 |
|
|
|
2,870,885 |
|
|
|
2,715,875 |
|
Shareholders' equity |
|
|
495,681 |
|
|
|
494,019 |
|
|
|
403,010 |
|
|
|
345,816 |
|
|
|
312,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement: |
|
Three Months Ended |
|
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
(Dollars in thousands, except per share data) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
Net interest income |
|
$ |
35,433 |
|
|
$ |
34,414 |
|
|
$ |
29,372 |
|
|
$ |
26,994 |
|
|
$ |
26,877 |
|
Provision for loan and lease losses |
|
|
1,725 |
|
|
|
500 |
|
|
|
370 |
|
|
|
425 |
|
|
|
1,150 |
|
Noninterest income |
|
|
5,230 |
|
|
|
5,750 |
|
|
|
5,660 |
|
|
|
5,509 |
|
|
|
5,652 |
|
Noninterest expense |
|
|
23,915 |
|
|
|
25,745 |
|
|
|
34,072 |
|
|
|
20,019 |
|
|
|
19,456 |
|
Income before provision for income taxes |
|
|
15,023 |
|
|
|
13,919 |
|
|
|
590 |
|
|
|
12,059 |
|
|
|
11,923 |
|
Provision for income taxes |
|
|
2,771 |
|
|
|
2,565 |
|
|
|
(17 |
) |
|
|
2,272 |
|
|
|
2,310 |
|
Net income available to shareholders |
|
|
12,252 |
|
|
|
11,354 |
|
|
|
607 |
|
|
|
9,787 |
|
|
|
9,613 |
|
Net income excluding non-recurring expenses (1) |
|
|
12,252 |
|
|
|
11,614 |
|
|
|
10,266 |
|
|
|
9,943 |
|
|
|
10,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.77 |
|
|
$ |
0.71 |
|
|
$ |
0.05 |
|
|
$ |
0.86 |
|
|
$ |
0.93 |
|
Diluted earnings per common share |
|
$ |
0.77 |
|
|
$ |
0.71 |
|
|
$ |
0.05 |
|
|
$ |
0.86 |
|
|
$ |
0.93 |
|
Cash dividends declared |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
Book value per common share |
|
$ |
31.23 |
|
|
$ |
30.96 |
|
|
$ |
30.71 |
|
|
$ |
30.55 |
|
|
$ |
29.94 |
|
Tangible book value per common share (1) |
|
$ |
23.57 |
|
|
$ |
23.31 |
|
|
$ |
22.99 |
|
|
$ |
24.75 |
|
|
$ |
24.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) to average loans (annualized) |
|
|
-0.001 |
% |
|
|
-0.007 |
% |
|
|
0.001 |
% |
|
|
0.149 |
% |
|
|
0.004 |
% |
Non-performing loans to total loans |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.32 |
% |
|
|
0.29 |
% |
|
|
0.35 |
% |
Non-performing asset to total loans and other real estate |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.32 |
% |
|
|
0.29 |
% |
|
|
0.35 |
% |
Non-performing asset to total assets |
|
|
0.19 |
% |
|
|
0.18 |
% |
|
|
0.22 |
% |
|
|
0.20 |
% |
|
|
0.25 |
% |
ALLL to total loans |
|
|
0.53 |
% |
|
|
0.49 |
% |
|
|
0.47 |
% |
|
|
0.60 |
% |
|
|
0.59 |
% |
ALLL to nonperforming loans |
|
|
211.66 |
% |
|
|
190.84 |
% |
|
|
146.23 |
% |
|
|
209.90 |
% |
|
|
169.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.10 |
% |
|
|
0.98 |
% |
|
|
0.06 |
% |
|
|
1.11 |
% |
|
|
1.12 |
% |
Return on average equity |
|
|
9.91 |
% |
|
|
9.32 |
% |
|
|
0.61 |
% |
|
|
11.23 |
% |
|
|
12.36 |
% |
Return on average tangible common equity (1) |
|
|
13.59 |
% |
|
|
12.82 |
% |
|
|
1.26 |
% |
|
|
14.20 |
% |
|
|
15.72 |
% |
Net interest margin |
|
|
3.45 |
% |
|
|
3.21 |
% |
|
|
3.48 |
% |
|
|
3.26 |
% |
|
|
3.34 |
% |
Efficiency ratio (1) |
|
|
57.57 |
% |
|
|
62.12 |
% |
|
|
61.34 |
% |
|
|
60.33 |
% |
|
|
57.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Capital (to Average Assets) |
|
|
9.0 |
% |
|
|
8.4 |
% |
|
|
8.1 |
% |
|
|
8.6 |
% |
|
|
8.8 |
% |
Common Tier 1 Capital (to Risk Weighted Assets) |
|
|
11.5 |
% |
|
|
11.7 |
% |
|
|
11.7 |
% |
|
|
13.2 |
% |
|
|
13.1 |
% |
Tier 1 Capital (to Risk Weighted Assets) |
|
|
11.8 |
% |
|
|
12.0 |
% |
|
|
12.0 |
% |
|
|
13.2 |
% |
|
|
13.1 |
% |
Total Capital (to Risk Weighted Assets) |
|
|
14.1 |
% |
|
|
14.4 |
% |
|
|
14.6 |
% |
|
|
15.8 |
% |
|
|
15.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
financial measure. Refer to the calculation on the section titled
“Reconciliation of Non-GAAP Measures” at the end of this
document.
CONSOLIDATED BALANCE SHEETS (Unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except
share data) |
|
Jun. 30, 2022 |
|
|
Mar. 31, 2022 |
|
|
Dec. 31, 2021 |
|
|
Sept. 30, 2021 |
|
|
Jun. 30, 2021 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
64,440 |
|
|
$ |
54,961 |
|
|
$ |
41,100 |
|
|
$ |
40,134 |
|
|
$ |
35,815 |
|
Interest-bearing balances with other financial
institutions |
|
|
4,909 |
|
|
|
3,187 |
|
|
|
146,031 |
|
|
|
2,536 |
|
|
|
1,234 |
|
Federal funds sold |
|
|
167,437 |
|
|
|
700,283 |
|
|
|
726,621 |
|
|
|
712,272 |
|
|
|
599,298 |
|
Total cash and cash equivalents |
|
|
236,786 |
|
|
|
758,431 |
|
|
|
913,752 |
|
|
|
754,942 |
|
|
|
636,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities held to maturity, at amortized cost |
|
|
399,032 |
|
|
|
363,145 |
|
|
|
329,257 |
|
|
|
152,791 |
|
|
|
153,032 |
|
Investment securities available for sale, at fair value |
|
|
218,698 |
|
|
|
145,039 |
|
|
|
62,862 |
|
|
|
5,015 |
|
|
|
8,162 |
|
Equity securities available for sale, at fair value |
|
|
454 |
|
|
|
474 |
|
|
|
500 |
|
|
|
505 |
|
|
|
508 |
|
Loans held for sale |
|
|
9,574 |
|
|
|
7,474 |
|
|
|
11,514 |
|
|
|
23,154 |
|
|
|
24,202 |
|
Loans and leases, net of unearned interest |
|
|
3,180,033 |
|
|
|
3,121,531 |
|
|
|
3,104,396 |
|
|
|
2,370,429 |
|
|
|
2,495,192 |
|
Less: Allowance for loan and lease losses |
|
|
(16,876 |
) |
|
|
(15,147 |
) |
|
|
(14,597 |
) |
|
|
(14,233 |
) |
|
|
(14,716 |
) |
Net loans and leases |
|
|
3,163,157 |
|
|
|
3,106,384 |
|
|
|
3,089,799 |
|
|
|
2,356,196 |
|
|
|
2,480,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank premises and equipment, net |
|
|
33,732 |
|
|
|
33,612 |
|
|
|
33,232 |
|
|
|
25,562 |
|
|
|
24,758 |
|
Bank premises and equipment held for sale |
|
|
2,574 |
|
|
|
3,098 |
|
|
|
3,907 |
|
|
|
— |
|
|
|
— |
|
Operating lease right of use asset |
|
|
8,326 |
|
|
|
8,751 |
|
|
|
9,055 |
|
|
|
9,942 |
|
|
|
10,364 |
|
Finance lease right of use asset |
|
|
2,997 |
|
|
|
3,042 |
|
|
|
3,087 |
|
|
|
3,132 |
|
|
|
3,177 |
|
Cash surrender value of life insurance |
|
|
50,169 |
|
|
|
49,907 |
|
|
|
49,661 |
|
|
|
17,406 |
|
|
|
17,332 |
|
Restricted investment in bank stocks |
|
|
4,234 |
|
|
|
7,637 |
|
|
|
9,134 |
|
|
|
7,906 |
|
|
|
6,816 |
|
Accrued interest receivable |
|
|
12,902 |
|
|
|
11,584 |
|
|
|
11,328 |
|
|
|
10,008 |
|
|
|
10,638 |
|
Deferred income taxes |
|
|
13,780 |
|
|
|
11,974 |
|
|
|
10,779 |
|
|
|
4,133 |
|
|
|
5,465 |
|
Goodwill |
|
|
113,835 |
|
|
|
113,835 |
|
|
|
113,835 |
|
|
|
62,840 |
|
|
|
62,840 |
|
Core deposit and other intangibles, net |
|
|
7,729 |
|
|
|
8,250 |
|
|
|
9,436 |
|
|
|
3,537 |
|
|
|
3,804 |
|
Foreclosed assets held for sale |
|
|
69 |
|
|
|
125 |
|
|
|
— |
|
|
|
11 |
|
|
|
11 |
|
Other assets |
|
|
32,115 |
|
|
|
34,412 |
|
|
|
28,287 |
|
|
|
16,107 |
|
|
|
13,860 |
|
Total Assets |
|
$ |
4,310,163 |
|
|
$ |
4,667,174 |
|
|
$ |
4,689,425 |
|
|
$ |
3,453,187 |
|
|
$ |
3,461,792 |
|
LIABILITIES &
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
850,180 |
|
|
$ |
866,965 |
|
|
$ |
850,438 |
|
|
$ |
661,890 |
|
|
$ |
692,016 |
|
Interest-bearing demand |
|
|
1,023,027 |
|
|
|
1,050,923 |
|
|
|
1,066,852 |
|
|
|
745,833 |
|
|
|
629,375 |
|
Money Market |
|
|
999,556 |
|
|
|
1,159,809 |
|
|
|
1,076,593 |
|
|
|
905,742 |
|
|
|
810,067 |
|
Savings |
|
|
354,677 |
|
|
|
358,186 |
|
|
|
381,476 |
|
|
|
205,842 |
|
|
|
206,724 |
|
Time |
|
|
475,147 |
|
|
|
553,154 |
|
|
|
626,657 |
|
|
|
442,574 |
|
|
|
443,942 |
|
Total Deposits |
|
|
3,702,587 |
|
|
|
3,989,037 |
|
|
|
4,002,016 |
|
|
|
2,961,881 |
|
|
|
2,782,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
196,889 |
|
Long-term debt |
|
|
4,592 |
|
|
|
74,681 |
|
|
|
81,270 |
|
|
|
74,858 |
|
|
|
74,944 |
|
Subordinated debt |
|
|
73,995 |
|
|
|
74,134 |
|
|
|
73,645 |
|
|
|
44,599 |
|
|
|
44,593 |
|
Operating lease liability |
|
|
10,324 |
|
|
|
10,923 |
|
|
|
11,363 |
|
|
|
10,950 |
|
|
|
11,387 |
|
Accrued interest payable |
|
|
1,542 |
|
|
|
2,067 |
|
|
|
1,791 |
|
|
|
1,901 |
|
|
|
2,122 |
|
Other liabilities |
|
|
21,288 |
|
|
|
22,171 |
|
|
|
29,264 |
|
|
|
9,690 |
|
|
|
8,164 |
|
Total Liabilities |
|
|
3,814,328 |
|
|
|
4,173,013 |
|
|
|
4,199,349 |
|
|
|
3,103,879 |
|
|
|
3,120,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $1.00 per share; 20.0 million shares
authorized |
|
|
16,081 |
|
|
|
16,059 |
|
|
|
16,056 |
|
|
|
11,532 |
|
|
|
11,507 |
|
Additional paid-in capital |
|
|
386,128 |
|
|
|
385,765 |
|
|
|
384,742 |
|
|
|
246,830 |
|
|
|
246,546 |
|
Retained earnings |
|
|
108,265 |
|
|
|
99,206 |
|
|
|
91,043 |
|
|
|
92,722 |
|
|
|
85,220 |
|
Accumulated other comprehensive (loss) income |
|
|
(9,759 |
) |
|
|
(4,946 |
) |
|
|
158 |
|
|
|
147 |
|
|
|
219 |
|
Treasury stock |
|
|
(4,880 |
) |
|
|
(1,923 |
) |
|
|
(1,923 |
) |
|
|
(1,923 |
) |
|
|
(1,923 |
) |
Total Shareholders’ Equity |
|
|
495,835 |
|
|
|
494,161 |
|
|
|
490,076 |
|
|
|
349,308 |
|
|
|
341,569 |
|
Total Liabilities and Shareholders' Equity |
|
$ |
4,310,163 |
|
|
$ |
4,667,174 |
|
|
$ |
4,689,425 |
|
|
$ |
3,453,187 |
|
|
$ |
3,461,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited): |
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except
per share data) |
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
Jun. 30 |
|
|
Mar. 31 |
|
|
Dec. 31 |
|
|
Sept. 30 |
|
|
Jun. 30 |
|
|
Jun. 30 |
|
|
Jun. 30 |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans and leases |
|
$ |
34,264 |
|
|
$ |
35,016 |
|
|
$ |
31,021 |
|
|
$ |
29,590 |
|
|
$ |
29,835 |
|
|
$ |
69,280 |
|
|
$ |
58,165 |
|
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and government agencies |
|
|
2,329 |
|
|
|
1,536 |
|
|
|
715 |
|
|
|
285 |
|
|
|
225 |
|
|
|
3,865 |
|
|
|
403 |
|
State and political subdivision obligations, tax-exempt |
|
|
379 |
|
|
|
336 |
|
|
|
288 |
|
|
|
279 |
|
|
|
278 |
|
|
|
715 |
|
|
|
555 |
|
Other securities |
|
|
504 |
|
|
|
417 |
|
|
|
329 |
|
|
|
277 |
|
|
|
291 |
|
|
|
921 |
|
|
|
593 |
|
Total Interest and Dividends on Investment Securities |
|
|
3,212 |
|
|
|
2,289 |
|
|
|
1,332 |
|
|
|
841 |
|
|
|
794 |
|
|
|
5,501 |
|
|
|
1,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on other interest-bearing balances |
|
|
8 |
|
|
|
13 |
|
|
|
8 |
|
|
|
1 |
|
|
|
2 |
|
|
|
21 |
|
|
|
4 |
|
Interest on federal funds sold |
|
|
736 |
|
|
|
314 |
|
|
|
324 |
|
|
|
308 |
|
|
|
98 |
|
|
|
1,050 |
|
|
|
177 |
|
Total Interest Income |
|
|
38,220 |
|
|
|
37,632 |
|
|
|
32,685 |
|
|
|
30,740 |
|
|
|
30,729 |
|
|
|
75,852 |
|
|
|
59,897 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
2,019 |
|
|
|
2,294 |
|
|
|
2,536 |
|
|
|
2,909 |
|
|
|
2,916 |
|
|
|
4,313 |
|
|
|
5,882 |
|
Interest on short-term borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
133 |
|
|
|
232 |
|
|
|
— |
|
|
|
406 |
|
Interest on long-term and subordinated debt |
|
|
768 |
|
|
|
924 |
|
|
|
777 |
|
|
|
704 |
|
|
|
704 |
|
|
|
1,692 |
|
|
|
1,407 |
|
Total Interest Expense |
|
|
2,787 |
|
|
|
3,218 |
|
|
|
3,313 |
|
|
|
3,746 |
|
|
|
3,852 |
|
|
|
6,005 |
|
|
|
7,695 |
|
Net Interest Income |
|
|
35,433 |
|
|
|
34,414 |
|
|
|
29,372 |
|
|
|
26,994 |
|
|
|
26,877 |
|
|
|
69,847 |
|
|
|
52,202 |
|
PROVISION FOR LOAN AND LEASE
LOSSES |
|
|
1,725 |
|
|
|
500 |
|
|
|
370 |
|
|
|
425 |
|
|
|
1,150 |
|
|
|
2,225 |
|
|
|
2,150 |
|
Net Interest Income After Provision for Loan and Lease Losses |
|
|
33,708 |
|
|
|
33,914 |
|
|
|
29,002 |
|
|
|
26,569 |
|
|
|
25,727 |
|
|
|
67,622 |
|
|
|
50,052 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking income |
|
|
305 |
|
|
|
529 |
|
|
|
1,932 |
|
|
|
3,162 |
|
|
|
2,841 |
|
|
|
834 |
|
|
|
5,220 |
|
Income from fiduciary and wealth management activities |
|
|
1,205 |
|
|
|
1,052 |
|
|
|
778 |
|
|
|
618 |
|
|
|
542 |
|
|
|
2,257 |
|
|
|
1,098 |
|
Service charges on deposits |
|
|
450 |
|
|
|
684 |
|
|
|
439 |
|
|
|
223 |
|
|
|
177 |
|
|
|
1,134 |
|
|
|
329 |
|
ATM debit card interchange income |
|
|
1,128 |
|
|
|
1,057 |
|
|
|
834 |
|
|
|
630 |
|
|
|
656 |
|
|
|
2,185 |
|
|
|
1,224 |
|
Net gain (loss) on sales of SBA loans |
|
|
119 |
|
|
|
(9 |
) |
|
|
409 |
|
|
|
105 |
|
|
|
355 |
|
|
|
110 |
|
|
|
455 |
|
Merchant services income |
|
|
87 |
|
|
|
73 |
|
|
|
72 |
|
|
|
58 |
|
|
|
209 |
|
|
|
160 |
|
|
|
301 |
|
Earnings from cash surrender value of life insurance |
|
|
262 |
|
|
|
246 |
|
|
|
135 |
|
|
|
74 |
|
|
|
75 |
|
|
|
508 |
|
|
|
149 |
|
Net gain on sales of investment securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
79 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other income |
|
|
1,674 |
|
|
|
2,118 |
|
|
|
1,061 |
|
|
|
560 |
|
|
|
797 |
|
|
|
3,792 |
|
|
|
1,588 |
|
Total Noninterest Income |
|
|
5,230 |
|
|
|
5,750 |
|
|
|
5,660 |
|
|
|
5,509 |
|
|
|
5,652 |
|
|
|
10,980 |
|
|
|
10,364 |
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
12,340 |
|
|
|
13,244 |
|
|
|
11,838 |
|
|
|
10,342 |
|
|
|
9,933 |
|
|
|
25,584 |
|
|
|
19,531 |
|
Occupancy expense, net |
|
|
1,655 |
|
|
|
1,799 |
|
|
|
1,412 |
|
|
|
1,318 |
|
|
|
1,317 |
|
|
|
3,454 |
|
|
|
2,797 |
|
Equipment expense |
|
|
1,112 |
|
|
|
1,011 |
|
|
|
864 |
|
|
|
745 |
|
|
|
741 |
|
|
|
2,123 |
|
|
|
1,492 |
|
Software licensing and utilization |
|
|
1,821 |
|
|
|
2,106 |
|
|
|
1,839 |
|
|
|
1,551 |
|
|
|
1,497 |
|
|
|
3,927 |
|
|
|
2,942 |
|
FDIC Assessment |
|
|
506 |
|
|
|
591 |
|
|
|
524 |
|
|
|
461 |
|
|
|
433 |
|
|
|
1,097 |
|
|
|
903 |
|
Legal and professional fees |
|
|
694 |
|
|
|
639 |
|
|
|
388 |
|
|
|
610 |
|
|
|
555 |
|
|
|
1,333 |
|
|
|
981 |
|
Charitable contributions qualifying for State tax credits |
|
|
125 |
|
|
|
65 |
|
|
|
797 |
|
|
|
— |
|
|
|
365 |
|
|
|
190 |
|
|
|
635 |
|
Mortgage banking profit-sharing expense |
|
|
33 |
|
|
|
145 |
|
|
|
566 |
|
|
|
1,140 |
|
|
|
745 |
|
|
|
178 |
|
|
|
865 |
|
(Gain) loss on sale or write-down of foreclosed assets, net |
|
|
(15 |
) |
|
|
(16 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(19 |
) |
|
|
(31 |
) |
|
|
(19 |
) |
Intangible amortization |
|
|
521 |
|
|
|
481 |
|
|
|
357 |
|
|
|
266 |
|
|
|
276 |
|
|
|
1,002 |
|
|
|
557 |
|
Merger and acquisition expense |
|
|
— |
|
|
|
— |
|
|
|
2,347 |
|
|
|
198 |
|
|
|
522 |
|
|
|
— |
|
|
|
522 |
|
Post-acquisition restructuring expense |
|
|
— |
|
|
|
329 |
|
|
|
9,880 |
|
|
|
— |
|
|
|
— |
|
|
|
329 |
|
|
|
— |
|
Other expenses |
|
|
5,123 |
|
|
|
5,351 |
|
|
|
3,259 |
|
|
|
3,395 |
|
|
|
3,091 |
|
|
|
10,474 |
|
|
|
5,808 |
|
Total Noninterest Expense |
|
|
23,915 |
|
|
|
25,745 |
|
|
|
34,072 |
|
|
|
20,019 |
|
|
|
19,456 |
|
|
|
49,660 |
|
|
|
37,014 |
|
INCOME BEFORE PROVISION FOR
INCOME TAXES |
|
|
15,023 |
|
|
|
13,919 |
|
|
|
590 |
|
|
|
12,059 |
|
|
|
11,923 |
|
|
|
28,942 |
|
|
|
23,402 |
|
Provision for income taxes |
|
|
2,771 |
|
|
|
2,565 |
|
|
|
(17 |
) |
|
|
2,272 |
|
|
|
2,310 |
|
|
|
5,336 |
|
|
|
4,477 |
|
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS |
|
$ |
12,252 |
|
|
$ |
11,354 |
|
|
$ |
607 |
|
|
$ |
9,787 |
|
|
$ |
9,613 |
|
|
$ |
23,606 |
|
|
$ |
18,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings Per Common Share |
|
$ |
0.77 |
|
|
$ |
0.71 |
|
|
$ |
0.05 |
|
|
$ |
0.86 |
|
|
$ |
0.93 |
|
|
$ |
1.48 |
|
|
$ |
2.02 |
|
Diluted Earnings Per Common Share |
|
$ |
0.77 |
|
|
$ |
0.71 |
|
|
$ |
0.05 |
|
|
$ |
0.86 |
|
|
$ |
0.93 |
|
|
$ |
1.48 |
|
|
$ |
2.02 |
|
Cash Dividends Declared |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.40 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED – AVERAGE BALANCE SHEET AND NET INTEREST
INCOME ANALYSIS (Unaudited):
|
|
Average Balances, Income and Interest Rates on a Taxable Equivalent
Basis |
|
|
|
For the Three Months Ended |
|
(Dollars in thousands) |
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
June 30, 2021 |
|
|
|
Average |
|
|
|
|
|
Yield/ |
|
|
Average |
|
|
|
|
|
Yield/ |
|
|
Average |
|
|
|
|
|
Yield/ |
|
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Balances |
|
$ |
|
5,920 |
|
|
$ |
|
8 |
|
|
|
0.54 |
% |
|
$ |
|
91,543 |
|
|
$ |
|
13 |
|
|
|
0.06 |
% |
|
$ |
|
1,284 |
|
|
$ |
|
2 |
|
|
|
0.62 |
% |
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
|
501,631 |
|
|
|
|
2,740 |
|
|
|
2.19 |
% |
|
|
|
389,034 |
|
|
|
|
1,822 |
|
|
|
1.90 |
% |
|
|
|
93,161 |
|
|
|
|
430 |
|
|
|
1.85 |
% |
Tax-Exempt |
|
|
|
78,775 |
|
|
|
|
480 |
|
(a) |
|
2.44 |
% |
|
|
|
73,614 |
|
|
|
|
425 |
|
(a) |
|
2.34 |
% |
|
|
|
55,811 |
|
|
|
|
352 |
|
(a) |
|
2.53 |
% |
Total Securities |
|
|
|
580,406 |
|
|
|
|
3,220 |
|
|
|
2.23 |
% |
|
|
|
462,648 |
|
|
|
|
2,247 |
|
|
|
1.97 |
% |
|
|
|
148,972 |
|
|
|
|
782 |
|
|
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Funds Sold |
|
|
|
415,405 |
|
|
|
|
736 |
|
|
|
0.71 |
% |
|
|
|
706,411 |
|
|
|
|
314 |
|
|
|
0.18 |
% |
|
|
|
477,001 |
|
|
|
|
98 |
|
|
|
0.08 |
% |
Loans and Leases, Net |
|
|
|
3,129,334 |
|
|
|
|
34,354 |
|
(b) |
|
4.40 |
% |
|
|
|
3,103,469 |
|
|
|
|
35,123 |
|
(b) |
|
4.59 |
% |
|
|
|
2,609,803 |
|
|
|
|
29,908 |
|
(b) |
|
4.60 |
% |
Restricted Investment in Bank Stocks |
|
|
|
4,854 |
|
|
|
|
94 |
|
|
|
7.77 |
% |
|
|
|
8,347 |
|
|
|
|
131 |
|
|
|
6.36 |
% |
|
|
|
6,865 |
|
|
|
|
86 |
|
|
|
5.02 |
% |
Total Earning Assets |
|
|
|
4,135,919 |
|
|
|
|
38,412 |
|
|
|
3.73 |
% |
|
|
|
4,372,418 |
|
|
|
|
37,828 |
|
|
|
3.51 |
% |
|
|
|
3,243,925 |
|
|
|
|
30,876 |
|
|
|
3.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Due from Banks |
|
|
|
59,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
57,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
34,683 |
|
|
|
|
|
|
|
|
|
|
Other Assets |
|
|
|
270,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
267,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
159,084 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
|
4,465,906 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
4,696,894 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
3,437,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES &
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing Demand |
|
$ |
|
1,030,237 |
|
|
$ |
|
462 |
|
|
|
0.18 |
% |
|
$ |
|
1,045,678 |
|
|
$ |
|
461 |
|
|
|
0.18 |
% |
|
$ |
|
614,435 |
|
|
$ |
|
579 |
|
|
|
0.38 |
% |
Money Market |
|
|
|
1,079,900 |
|
|
|
|
584 |
|
|
|
0.22 |
% |
|
|
|
1,125,094 |
|
|
|
|
600 |
|
|
|
0.22 |
% |
|
|
|
791,498 |
|
|
|
|
819 |
|
|
|
0.42 |
% |
Savings |
|
|
|
357,433 |
|
|
|
|
43 |
|
|
|
0.05 |
% |
|
|
|
376,006 |
|
|
|
|
58 |
|
|
|
0.06 |
% |
|
|
|
203,468 |
|
|
|
|
58 |
|
|
|
0.11 |
% |
Time |
|
|
|
516,346 |
|
|
|
|
930 |
|
|
|
0.72 |
% |
|
|
|
592,833 |
|
|
|
|
1,175 |
|
|
|
0.80 |
% |
|
|
|
432,739 |
|
|
|
|
1,460 |
|
|
|
1.35 |
% |
Total Interest-bearing Deposits |
|
|
|
2,983,916 |
|
|
|
|
2,019 |
|
|
|
0.27 |
% |
|
|
|
3,139,611 |
|
|
|
|
2,294 |
|
|
|
0.30 |
% |
|
|
|
2,042,140 |
|
|
|
|
2,916 |
|
|
|
0.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Term Borrowings |
|
|
|
— |
|
|
|
|
— |
|
|
|
0.00 |
% |
|
|
|
— |
|
|
|
|
— |
|
|
|
0.00 |
% |
|
|
|
264,661 |
|
|
|
|
232 |
|
|
|
0.35 |
% |
Long-term Debt |
|
|
|
9,238 |
|
|
|
|
107 |
|
|
|
4.65 |
% |
|
|
|
76,157 |
|
|
|
|
284 |
|
|
|
1.51 |
% |
|
|
|
74,976 |
|
|
|
|
204 |
|
|
|
1.09 |
% |
Subordinated Debt |
|
|
|
74,062 |
|
|
|
|
661 |
|
|
|
3.58 |
% |
|
|
|
74,189 |
|
|
|
|
640 |
|
|
|
3.50 |
% |
|
|
|
44,589 |
|
|
|
|
500 |
|
|
|
4.50 |
% |
Total Interest-bearing Liabilities |
|
|
|
3,067,216 |
|
|
|
|
2,787 |
|
|
|
0.36 |
% |
|
|
|
3,289,957 |
|
|
|
|
3,218 |
|
|
|
0.40 |
% |
|
|
|
2,426,366 |
|
|
|
|
3,852 |
|
|
|
0.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing Demand |
|
|
|
853,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
859,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
673,735 |
|
|
|
|
|
|
|
|
|
|
Other Liabilities |
|
|
|
49,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
53,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
25,585 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
495,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
494,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
312,006 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
|
$ |
|
4,465,906 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
4,696,894 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
3,437,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (taxable
equivalent basis) |
|
|
|
|
|
|
$ |
|
35,625 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
34,610 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
27,024 |
|
|
|
|
|
Taxable Equivalent
Adjustment |
|
|
|
|
|
|
|
|
(192 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(196 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(147 |
) |
|
|
|
|
Net Interest Income |
|
|
|
|
|
|
$ |
|
35,433 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
34,414 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
26,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Yield on Earning
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.82 |
% |
Rate on Supporting
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
0.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
0.64 |
% |
Average Interest Spread |
|
|
|
|
|
|
|
|
|
|
|
|
3.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.18 |
% |
Net Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
|
3.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes
tax-equivalent adjustments (calculated using statutory rates of 21
percent) of $101 thousand, $89 thousand and $74 thousand for the
three months ended June 30, 2022, March 31, 2022 and June 30, 2021,
respectively, resulting from the tax-free municipal securities in
the investment portfolio. (b) Includes tax-equivalent adjustments
(calculated using statutory rates of 21 percent) of $91 thousand,
$107 thousand and $73 thousand for the three months ended June 30,
2022, March 31, 2022 and June 30, 2021, respectively, resulting
from the tax-free municipal loans in the commercial loans
portfolio.
|
|
Average Balances, Income and Interest Rates on a Taxable Equivalent
Basis |
|
|
|
For the Six Months Ended |
|
(Dollars in thousands) |
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
|
Average |
|
|
|
|
|
Yield/ |
|
|
Average |
|
|
|
|
|
Yield/ |
|
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Balances |
|
$ |
|
48,495 |
|
|
$ |
|
21 |
|
|
|
0.09 |
% |
|
$ |
|
1,342 |
|
|
$ |
|
4 |
|
|
|
0.60 |
% |
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
|
445,644 |
|
|
|
|
4,561 |
|
|
|
2.06 |
% |
|
|
|
85,849 |
|
|
|
|
815 |
|
|
|
1.91 |
% |
Tax-Exempt |
|
|
|
76,208 |
|
|
|
|
905 |
|
(a) |
|
2.39 |
% |
|
|
|
55,377 |
|
|
|
|
702 |
|
(a) |
|
2.56 |
% |
Total Securities |
|
|
|
521,852 |
|
|
|
|
5,466 |
|
|
|
2.11 |
% |
|
|
|
141,226 |
|
|
|
|
1,517 |
|
|
|
2.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Funds Sold |
|
|
|
560,105 |
|
|
|
|
1,050 |
|
|
|
0.38 |
% |
|
|
|
396,041 |
|
|
|
|
177 |
|
|
|
0.09 |
% |
Loans and Leases, Net |
|
|
|
3,116,473 |
|
|
|
|
69,477 |
|
(b) |
|
4.50 |
% |
|
|
|
2,571,075 |
|
|
|
|
58,314 |
|
(b) |
|
4.57 |
% |
Restricted Investment in Bank Stocks |
|
|
|
6,590 |
|
|
|
|
225 |
|
|
|
6.89 |
% |
|
|
|
6,958 |
|
|
|
|
181 |
|
|
|
5.25 |
% |
Total Earning Assets |
|
|
|
4,253,515 |
|
|
|
|
76,239 |
|
|
|
3.61 |
% |
|
|
|
3,116,642 |
|
|
|
|
60,193 |
|
|
|
3.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Due from Banks |
|
|
|
54,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
34,363 |
|
|
|
|
|
|
|
|
|
|
Other Assets |
|
|
|
272,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
161,661 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
|
4,580,614 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
3,312,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES &
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing Demand |
|
$ |
|
1,037,915 |
|
|
$ |
|
923 |
|
|
|
0.18 |
% |
|
$ |
|
608,259 |
|
|
$ |
|
1,157 |
|
|
|
0.38 |
% |
Money Market |
|
|
|
1,102,372 |
|
|
|
|
1,184 |
|
|
|
0.22 |
% |
|
|
|
767,877 |
|
|
|
|
1,597 |
|
|
|
0.42 |
% |
Savings |
|
|
|
366,668 |
|
|
|
|
101 |
|
|
|
0.06 |
% |
|
|
|
200,686 |
|
|
|
|
122 |
|
|
|
0.12 |
% |
Time |
|
|
|
554,378 |
|
|
|
|
2,105 |
|
|
|
0.77 |
% |
|
|
|
423,259 |
|
|
|
|
3,006 |
|
|
|
1.43 |
% |
Total Interest-bearing Deposits |
|
|
|
3,061,333 |
|
|
|
|
4,313 |
|
|
|
0.28 |
% |
|
|
|
2,000,081 |
|
|
|
|
5,882 |
|
|
|
0.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Borrowings |
|
|
|
- |
|
|
|
|
- |
|
|
|
0.00 |
% |
|
|
|
234,258 |
|
|
|
|
406 |
|
|
|
0.35 |
% |
Long-term Debt |
|
|
|
42,513 |
|
|
|
|
391 |
|
|
|
1.85 |
% |
|
|
|
75,019 |
|
|
|
|
408 |
|
|
|
1.10 |
% |
Subordinated Debt |
|
|
|
74,126 |
|
|
|
|
1,301 |
|
|
|
3.54 |
% |
|
|
|
44,586 |
|
|
|
|
999 |
|
|
|
4.52 |
% |
Total Interest-bearing Liabilities |
|
|
|
3,177,972 |
|
|
|
|
6,005 |
|
|
|
0.38 |
% |
|
|
|
2,353,944 |
|
|
|
|
7,695 |
|
|
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing Demand |
|
|
|
856,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
648,537 |
|
|
|
|
|
|
|
|
|
|
Other Liabilities |
|
|
|
51,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
24,529 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
494,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
285,656 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
|
$ |
|
4,580,614 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
3,312,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (taxable
equivalent basis) |
|
|
|
|
|
|
$ |
|
70,234 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
52,498 |
|
|
|
|
|
Taxable Equivalent
Adjustment |
|
|
|
|
|
|
|
|
(387 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(296 |
) |
|
|
|
|
Net Interest Income |
|
|
|
|
|
|
$ |
|
69,847 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
52,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Yield on Earning
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.89 |
% |
Rate on Supporting
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
0.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
0.66 |
% |
Average Interest Spread |
|
|
|
|
|
|
|
|
|
|
|
|
3.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.24 |
% |
Net Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
|
3.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
3.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes
tax-equivalent adjustments (calculated using statutory rates of 21
percent) of $190 thousand and $147 thousand for the six months
ended June 30, 2022 and June 30, 2021, respectively, resulting from
the tax-free municipal securities in the investment portfolio. (b)
Includes tax-equivalent adjustments (calculated using statutory
rates of 21 percent) of $197 thousand and $149 thousand for the six
months ended June 30, 2022 and June 30, 2021, respectively,
resulting from the tax-free municipal loans in the commercial loans
portfolio.
ALLOWANCE FOR LOAN AND LEASE LOSSES AND ASSET QUALITY
(Unaudited):
(Dollars in thousands,
except |
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
per share data) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
Allowance for Loan and Lease Losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
15,147 |
|
|
$ |
14,597 |
|
|
$ |
14,233 |
|
|
$ |
14,716 |
|
|
$ |
13,591 |
|
Loans Charged off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
Commercial real estate |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1,043 |
) |
|
|
— |
|
Commercial real estate - construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(23 |
) |
Residential mortgage |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(7 |
) |
Home equity |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
|
(9 |
) |
|
|
(57 |
) |
|
|
(19 |
) |
|
|
(11 |
) |
|
|
(9 |
) |
Total loans charged off |
|
|
(9 |
) |
|
|
(57 |
) |
|
|
(27 |
) |
|
|
(1,057 |
) |
|
|
(39 |
) |
Recoveries of loans previously charged off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
— |
|
|
|
13 |
|
|
|
10 |
|
|
|
1 |
|
|
|
1 |
|
Commercial real estate |
|
|
— |
|
|
|
65 |
|
|
|
1 |
|
|
|
140 |
|
|
|
10 |
|
Commercial real estate - construction |
|
|
— |
|
|
|
24 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
Residential mortgage |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Home equity |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
|
10 |
|
|
|
4 |
|
|
|
3 |
|
|
|
6 |
|
|
|
2 |
|
Total recoveries |
|
|
13 |
|
|
|
107 |
|
|
|
21 |
|
|
|
149 |
|
|
|
14 |
|
Balance before provision |
|
|
15,151 |
|
|
|
14,647 |
|
|
|
14,227 |
|
|
|
13,808 |
|
|
|
13,566 |
|
Provision for loan and lease losses |
|
|
1,725 |
|
|
|
500 |
|
|
|
370 |
|
|
|
425 |
|
|
|
1,150 |
|
Balance, end of quarter |
|
$ |
16,876 |
|
|
$ |
15,147 |
|
|
$ |
14,597 |
|
|
$ |
14,233 |
|
|
$ |
14,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
7,551 |
|
|
$ |
7,507 |
|
|
$ |
9,547 |
|
|
$ |
6,339 |
|
|
$ |
8,233 |
|
Accruing trouble debt restructured loans |
|
|
422 |
|
|
|
430 |
|
|
|
435 |
|
|
|
442 |
|
|
|
449 |
|
Total nonperforming loans |
|
|
7,973 |
|
|
|
7,937 |
|
|
|
9,982 |
|
|
|
6,781 |
|
|
|
8,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real estate |
|
|
69 |
|
|
|
125 |
|
|
|
— |
|
|
|
11 |
|
|
|
11 |
|
Total nonperforming assets |
|
|
8,042 |
|
|
|
8,062 |
|
|
|
9,982 |
|
|
|
6,792 |
|
|
|
8,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days or more past due |
|
|
— |
|
|
|
133 |
|
|
|
515 |
|
|
|
— |
|
|
|
— |
|
Total risk elements |
|
$ |
8,042 |
|
|
$ |
8,195 |
|
|
$ |
10,497 |
|
|
$ |
6,792 |
|
|
$ |
8,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP Summary
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
(Dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans, net of deferred
fees |
|
$ |
4,966 |
|
|
$ |
34,124 |
|
|
$ |
111,286 |
|
|
$ |
229,679 |
|
|
$ |
391,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP Fees recognized |
|
$ |
652 |
|
|
$ |
2,989 |
|
|
$ |
4,426 |
|
|
$ |
8,382 |
|
|
$ |
4,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
Explanatory note: This press release contains
financial information determined by methods other than in
accordance with U.S. Generally Accepted Accounting Principles
("GAAP"). Mid Penn’s management uses these non-GAAP financial
measures in their analysis of the Company’s performance. For
tangible book value, the most directly comparable financial measure
calculated in accordance with GAAP is book value. We believe
that this measure is important to many investors in the marketplace
who are interested in changes from period to period in book value
per common share exclusive of changes in intangible
assets. Goodwill and other intangible assets have the effect
of increasing total book value while not increasing tangible book
value. Income tax effects of non-GAAP adjustments are
calculated using the applicable statutory tax rate for the
jurisdictions in which the charges (benefits) are incurred, while
taking into consideration any valuation allowances or
non-deductible portions of the non-GAAP adjustments. Non-PPP core
banking loans are meaningful to investors as they are indicative of
portfolio loans and related growth from traditional bank activities
and excludes short-term or nonrecurring loans from special programs
like the PPP. This non-GAAP disclosure has limitations as an
analytical tool, should not be viewed as a substitute for financial
measures determined in accordance with GAAP, and should not be
considered in isolation or as a substitute for analysis of Mid
Penn’s results and financial condition as reported under GAAP, nor
is it necessarily comparable to non-GAAP performance measures that
may be presented by other companies. Core earnings per common share
excludes from income available to common shareholders certain
expenses related to significant non-core activities, including
merger-related expenses, net of income taxes. For return on average
tangible common equity, the most directly comparable financial
measure calculated in accordance with GAAP is return on average
equity. The efficiency ratio is often used by management to measure
its noninterest expense as a percentage of its revenue. Management
believes that this non-GAAP supplemental information will be
helpful in understanding Mid Penn’s ongoing operating results. This
supplemental presentation should not be construed as an inference
that Mid Penn’s future results will be unaffected by similar
adjustments to be determined in accordance with GAAP. The
reconciliation of the non-GAAP to comparable GAAP financial
measures can be found in the tables at the end of this release.
Tangible Book Value Per Share
(Dollars in thousands,
except |
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
per share data) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
$ |
495,835 |
|
|
$ |
494,161 |
|
|
$ |
490,076 |
|
|
$ |
349,308 |
|
|
$ |
341,569 |
|
Less: Goodwill |
|
|
113,835 |
|
|
|
113,835 |
|
|
|
113,835 |
|
|
|
62,840 |
|
|
|
62,840 |
|
Less: Core Deposit and Other
Intangibles |
|
|
7,729 |
|
|
|
8,250 |
|
|
|
9,436 |
|
|
|
3,537 |
|
|
|
3,804 |
|
Tangible Equity |
|
$ |
374,271 |
|
|
$ |
372,076 |
|
|
$ |
366,805 |
|
|
$ |
282,931 |
|
|
$ |
274,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares Outstanding |
|
|
15,878,193 |
|
|
|
15,960,916 |
|
|
|
15,957,830 |
|
|
|
11,433,554 |
|
|
|
11,408,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value per
Share |
|
$ |
23.57 |
|
|
$ |
23.31 |
|
|
$ |
22.99 |
|
|
$ |
24.75 |
|
|
$ |
24.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PPP Core Banking Loans
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
(Dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and leases, net of unearned interest |
|
$ |
3,180,033 |
|
|
$ |
3,121,531 |
|
|
$ |
3,104,396 |
|
|
$ |
2,370,429 |
|
|
$ |
2,495,192 |
|
Less:
PPP loans, net of deferred fees |
|
|
4,966 |
|
|
|
34,124 |
|
|
|
111,286 |
|
|
|
229,679 |
|
|
|
391,826 |
|
Non-PPP
core banking loans |
|
$ |
3,175,067 |
|
|
$ |
3,087,407 |
|
|
$ |
2,993,110 |
|
|
$ |
2,140,750 |
|
|
$ |
2,103,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Earnings Per Common Share Excluding Non-Recurring
Expenses
|
|
Three Months Ended |
|
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
(Dollars in thousands, except
per share data) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
Net Income Available to Common Shareholders |
|
$ |
12,252 |
|
|
$ |
11,354 |
|
|
$ |
607 |
|
|
$ |
9,787 |
|
|
$ |
9,613 |
|
Plus: Merger and Acquisition
Expenses |
|
|
— |
|
|
|
329 |
|
|
|
12,227 |
|
|
|
198 |
|
|
|
522 |
|
Less: Tax Effect of Merger and
Acquisition Expenses |
|
|
— |
|
|
|
69 |
|
|
|
2,568 |
|
|
|
42 |
|
|
|
110 |
|
Net Income Excluding
Non-Recurring Expenses |
|
$ |
12,252 |
|
|
$ |
11,614 |
|
|
$ |
10,266 |
|
|
$ |
9,943 |
|
|
$ |
10,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding - denominator |
|
|
15,935,003 |
|
|
|
15,957,864 |
|
|
|
13,005,895 |
|
|
|
11,423,487 |
|
|
|
10,321,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Earnings Per Common Share
Excluding Non-Recurring Expenses |
|
$ |
0.77 |
|
|
$ |
0.73 |
|
|
$ |
0.79 |
|
|
$ |
0.87 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Tangible Common Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
(Dollars in thousands, except
per share data) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common
shareholders |
|
$ |
12,252 |
|
|
$ |
11,354 |
|
|
$ |
607 |
|
|
$ |
9,787 |
|
|
$ |
9,613 |
|
Plus: Intangible amortization,
net of tax |
|
|
412 |
|
|
|
380 |
|
|
|
282 |
|
|
|
210 |
|
|
|
218 |
|
|
|
$ |
12,664 |
|
|
$ |
11,734 |
|
|
$ |
889 |
|
|
$ |
9,997 |
|
|
$ |
9,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholder's
equity |
|
$ |
495,681 |
|
|
$ |
494,019 |
|
|
$ |
403,010 |
|
|
$ |
345,816 |
|
|
$ |
312,006 |
|
Less: Average goodwill |
|
|
113,835 |
|
|
|
113,835 |
|
|
|
113,835 |
|
|
|
62,840 |
|
|
|
62,840 |
|
Less: Average core deposit and
other intangibles |
|
|
7,983 |
|
|
|
8,950 |
|
|
|
9,436 |
|
|
|
3,666 |
|
|
|
3,938 |
|
Average tangible shareholder's
equity |
|
$ |
373,863 |
|
|
$ |
371,234 |
|
|
$ |
279,739 |
|
|
$ |
279,310 |
|
|
$ |
245,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible
common equity |
|
|
13.59 |
% |
|
|
12.82 |
% |
|
|
1.26 |
% |
|
|
14.20 |
% |
|
|
15.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
Jun. 30, |
|
(Dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
$ |
23,915 |
|
|
$ |
25,745 |
|
|
$ |
34,072 |
|
|
$ |
20,019 |
|
|
$ |
19,456 |
|
Less: Merger and acquisition
expenses |
|
|
— |
|
|
|
329 |
|
|
|
12,227 |
|
|
|
198 |
|
|
|
522 |
|
Less: Intangible
amortization |
|
|
521 |
|
|
|
481 |
|
|
|
357 |
|
|
|
266 |
|
|
|
276 |
|
Less: (Gain) loss on sale or
write-down of foreclosed assets, net |
|
|
(15 |
) |
|
|
(16 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(19 |
) |
Efficiency ratio numerator |
|
$ |
23,409 |
|
|
$ |
24,951 |
|
|
$ |
21,487 |
|
|
$ |
19,562 |
|
|
$ |
18,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
35,433 |
|
|
|
34,414 |
|
|
|
29,372 |
|
|
|
26,994 |
|
|
|
26,877 |
|
Noninterest income |
|
|
5,230 |
|
|
|
5,750 |
|
|
|
5,660 |
|
|
|
5,509 |
|
|
|
5,652 |
|
Less: Net gain on sales of
investment securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
79 |
|
|
|
— |
|
Efficiency ratio denominator |
|
$ |
40,663 |
|
|
$ |
40,164 |
|
|
$ |
35,032 |
|
|
$ |
32,424 |
|
|
$ |
32,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
57.57 |
% |
|
|
62.12 |
% |
|
|
61.34 |
% |
|
|
60.33 |
% |
|
|
57.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACTS
Rory G. Ritrievi
President & Chief Executive Officer
Allison S. Johnson
Chief Financial Officer
1-866-642-7736
Mid Penn Bancorp (NASDAQ:MPB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mid Penn Bancorp (NASDAQ:MPB)
Historical Stock Chart
From Jul 2023 to Jul 2024