Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

CB Financial Services, Inc. Announces Fourth Quarter and Full Year 2021 Financial Results and Declares Quarterly Cash Dividend


CB Financial Services, Inc. ("CB" or the "Company") (NASDAQGM: CBFV), the holding company of Community Bank (the "Bank") and Exchange Underwriters, Inc. ("EU"), a wholly-owned insurance subsidiary of the Bank, today announced its fourth quarter and year-to-date 2021 financial results.

 

 

Three Months Ended

 

Year Ended

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

 

12/31/21

12/31/20

(Dollars in thousands, except per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) (GAAP)

$

6,965

 

$

1,983

 

$

(223

)

$

2,845

 

$

3,079

 

$

11,570

 

$

(10,640

)

Excluding Non-Recurring Items (Non-GAAP) (1)

 

(4,122

)

 

(17

)

 

3,440

 

 

(353

)

 

40

 

 

(1,053

)

 

19,343

 

Adjusted Net Income (Non-GAAP) (1)

$

2,843

 

$

1,966

 

$

3,217

 

$

2,492

 

$

3,119

 

$

10,517

 

$

8,703

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per Common Share - Diluted (GAAP)

$

1.31

 

$

0.37

 

$

(0.04

)

$

0.52

 

$

0.57

 

$

2.15

 

$

(1.97

)

Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)

$

0.53

 

$

0.36

 

$

0.59

 

$

0.46

 

$

0.58

 

$

1.95

 

$

1.61

 

(1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of net income (loss) and adjusted earnings per common share - diluted in this Press Release.

2021 Fourth Quarter Financial Highlights

(Comparisons to three months ended December 31, 2020 unless otherwise noted)

(Amounts at December 31, 2021; comparisons to December 31, 2020, unless otherwise noted)

Branch Optimization and Operational Efficiency Update

As previously announced in February 2021, CB has implemented strategic initiatives to improve Community Bank's financial performance and to position the Bank for continued profitable growth. Since that announcement, the Company has substantially completed this project, highlighted by:

Management Commentary

President and CEO John H. Montgomery stated, "The fourth quarter was highlighted by the sale of two branches, which resulted in a $5.2 million gain for the bank while completing the optimization initiative announced early in 2021. We undertook that initiative with the primary goals of reducing our expenses while also positioning the bank for growth and I am proud of our team for succeeding on both fronts. With the optimization effort now substantially complete, we intend to focus all our energy on continuing the growth we saw take hold during the second half of 2021. Despite the reduction of our deposit balances resulting from the sale of two branches, we were still able to grow our loan book 11.3% in the current quarter, which is a result we're proud of. Our loan book experienced solid demand across nearly all our end markets, fueled by the continuing economic recovery in our geographic region."

Mr. Montgomery continued, "As we enter 2022, we are well-positioned for a rising rate environment. We are squarely focused on capturing growth opportunities and are investing in our business in support of that. A key component of our optimization initiative was the reduction of low return uses of capital so that capital could be repurposed for higher growth investment. With that in mind, we expect to bring on a Chief Commercial Banking Officer and a Director of Client Experience and Retail Banking during the first quarter. Set against the backdrop of reduced annual expense levels and rising interest rates, our expectation is for continued growth and expansion of profitability. In addition, we remain committed to CB's shareholders through the payment of dividends and an active share buy-back program."

Dividend Information

The Company's Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about February 28, 2022, to stockholders of record as of the close of business on February 18, 2022.

Stock Repurchase Program

On June 10, 2021, CB authorized a program to repurchase up to $7.5 million of the Company's outstanding common stock. The program was effective as of June 14, 2021 and is authorized through June 13, 2022. As of January 21, 2022, the Company had repurchased 191,314 shares at an average price of $23.34 per share for a total of $4.5 million.

2021 Fourth Quarter Financial Review

Net Interest and Dividend Income

Provision for Loan Losses

There was a $75,000 provision for loan losses for the three months ended December 31, 2021 compared to no provision for loan losses for the three months ended December 31, 2020. The provision was primarily due to loan growth in the current period, exclusive of PPP loan forgiveness, offset by adjustments in the qualitative factors driven by improving economic and industry conditions.

Noninterest income

Noninterest income increased $5.9 million, or 212.8%, to $8.7 million for the three months ended December 31, 2021, compared to $2.8 million for the three months ended December 31, 2020. The increase was largely due to a gain of $5.2 million from the sale of two branches during the quarter. In addition, net gain on sale of loans increased $589,000 to $977,000 for the three months ended December 31, 2021 compared to $388,000 for the three months ended December 31, 2020 primarily due to the sale of a nonperforming commercial real estate loan in the hotel portfolio that resulted in the recognition of an $897,000 gain. The loan previously incurred a $931,000 charge-off in the fourth quarter of 2020.

Noninterest Expense

Noninterest expense increased $247,000, or 2.5%, to $10.0 million for the three months ended December 31, 2021 compared to $9.7 million for the three months ended December 31, 2020. Contracted services increased $556,000 to $1.1 million for the three months ended December 31, 2021 compared to $577,000 for the three months ended December 31, 2020 primarily due to $859,000 in expenses associated with the engagement of a third-party workflow optimization expert to assist in implementing robotic process automations and more effective sales management designed to improve operational efficiencies in the near and long-term and engagement of other third party specialists to assist in core platform improvements and efficiencies.

Statement of Financial Condition Review

Assets

Total assets increased $8.8 million, or 0.6%, to $1.43 billion at December 31, 2021, compared to $1.42 billion at December 31, 2020.

Payroll Protection Program ("PPP") Update

Loans and Credit Quality

Liabilities

Total liabilities increased $10.2 million, or 0.8%, to $1.29 billion at December 31, 2021 compared to $1.28 billion at December 31, 2020.

Deposits

Borrowed Funds

Stockholders' Equity

Stockholders' equity decreased $1.4 million, or 1.0%, to $133.1 million at December 31, 2021, compared to $134.5 million at December 31, 2020. The Company paid $5.2 million in dividends and repurchased $4.1 million of its common stock as part of its stock repurchase program. In addition, accumulated other comprehensive income decreased $4.3 million primarily due to the effect of market interest rate conditions on the Bank's debt securities. This was partially offset by $11.6 million of net income.

Book value per share

Book value per common share was $25.31 at December 31, 2021 compared to $24.76 at December 31, 2020, an increase of $0.55. Book value per share increased $0.74 compared to $24.57 at September 30, 2021.

Tangible book value per common share (Non-GAAP) was $22.45 at December 31, 2021, compared to $21.42 at December 31, 2020, an increase of $1.03. Tangible book value per share increased $0.78 compared to $21.67 at September 30, 2021. Refer to "Explanation of Use of Non-GAAP Financial Measures" at the end of this Press Release.

About CB Financial Services, Inc.

CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary.

For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.

Statement About Forward-Looking Statements

Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, the scope and duration of economic contraction as a result of the COVID-19 pandemic and its effects on the Company's business and that of the Company's customers, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company's periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

 

CB FINANCIAL SERVICES, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION

 

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Condition Data

12/31/21

 

9/30/21

 

6/30/21

 

3/31/21

 

12/31/20

ASSETS

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

119,674

 

 

$

173,523

 

 

$

172,010

 

 

$

230,000

 

 

$

160,911

 

Securities

 

224,974

 

 

 

221,351

 

 

 

208,472

 

 

 

142,156

 

 

 

145,400

 

Loans Held for Sale

 

?

 

 

 

17,407

 

 

 

11,409

 

 

 

?

 

 

 

?

 

Loans

 

 

 

 

 

 

 

 

 

Real Estate:

 

 

 

 

 

 

 

 

 

Residential

 

320,798

 

 

 

317,373

 

 

 

322,480

 

 

 

339,596

 

 

 

344,142

 

Commercial

 

392,124

 

 

 

379,621

 

 

 

360,518

 

 

 

370,118

 

 

 

373,555

 

Construction

 

85,028

 

 

 

78,075

 

 

 

85,187

 

 

 

77,714

 

 

 

72,600

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

64,487

 

 

 

69,657

 

 

 

70,666

 

 

 

68,551

 

 

 

71,717

 

PPP

 

24,523

 

 

 

32,703

 

 

 

49,525

 

 

 

60,380

 

 

 

55,096

 

Consumer

 

122,152

 

 

 

112,087

 

 

 

106,404

 

 

 

111,650

 

 

 

113,854

 

Other

 

11,684

 

 

 

12,083

 

 

 

12,666

 

 

 

13,688

 

 

 

13,789

 

Total Loans

 

1,020,796

 

 

 

1,001,599

 

 

 

1,007,446

 

 

 

1,041,697

 

 

 

1,044,753

 

Allowance for Loan Losses

 

(11,582

)

 

 

(11,581

)

 

 

(11,544

)

 

 

(12,725

)

 

 

(12,771

)

Loans, Net

 

1,009,214

 

 

 

990,018

 

 

 

995,902

 

 

 

1,028,972

 

 

 

1,031,982

 

Premises and Equipment Held for Sale

 

?

 

 

 

795

 

 

 

795

 

 

 

?

 

 

 

?

 

Premises and Equipment, Net

 

18,399

 

 

 

18,502

 

 

 

18,682

 

 

 

20,240

 

 

 

20,302

 

Bank-Owned Life Insurance

 

25,332

 

 

 

25,190

 

 

 

25,052

 

 

 

24,916

 

 

 

24,779

 

Goodwill

 

9,732

 

 

 

9,732

 

 

 

9,732

 

 

 

9,732

 

 

 

9,732

 

Intangible Assets, Net

 

5,295

 

 

 

5,740

 

 

 

6,186

 

 

 

7,867

 

 

 

8,399

 

Accrued Interest and Other Assets

 

12,859

 

 

 

12,560

 

 

 

13,373

 

 

 

12,938

 

 

 

15,215

 

Total Assets

$

1,425,479

 

 

$

1,474,818

 

 

$

1,461,613

 

 

$

1,476,821

 

 

$

1,416,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Deposits Held for Sale

$

?

 

 

$

102,647

 

 

$

102,557

 

 

$

?

 

 

$

?

 

Deposits

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Demand Deposits

 

385,775

 

 

 

373,320

 

 

 

368,452

 

 

 

377,137

 

 

 

340,569

 

Interest Bearing Demand Accounts

 

272,518

 

 

 

244,004

 

 

 

246,920

 

 

 

280,929

 

 

 

259,870

 

Money Market Accounts

 

192,125

 

 

 

190,426

 

 

 

176,824

 

 

 

198,975

 

 

 

199,029

 

Savings Accounts

 

239,482

 

 

 

232,679

 

 

 

226,639

 

 

 

246,725

 

 

 

235,088

 

Time Deposits

 

136,713

 

 

 

144,727

 

 

 

154,718

 

 

 

180,697

 

 

 

190,013

 

Total Deposits

 

1,226,613

 

 

 

1,185,156

 

 

 

1,173,553

 

 

 

1,284,463

 

 

 

1,224,569

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

39,266

 

 

 

42,623

 

 

 

39,054

 

 

 

45,352

 

 

 

41,055

 

Other Borrowings

 

17,601

 

 

 

6,000

 

 

 

6,000

 

 

 

6,000

 

 

 

8,000

 

Accrued Interest and Other Liabilities

 

8,875

 

 

 

7,405

 

 

 

7,913

 

 

 

7,230

 

 

 

8,566

 

Total Liabilities

 

1,292,355

 

 

 

1,343,831

 

 

 

1,329,077

 

 

 

1,343,045

 

 

 

1,282,190

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

$

133,124

 

 

$

130,987

 

 

$

132,536

 

 

$

133,776

 

 

$

134,530

 

 
 

 

Three Months Ended

Year Ended

Selected Operating Data

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

12/31/21

12/31/20

Interest and Dividend Income

 

 

 

 

 

 

 

Loans, Including Fees

$

9,904

 

$

9,718

 

$

9,936

 

$

10,146

 

$

10,833

 

$

39,704

 

$

42,883

 

Securities:

 

 

 

 

 

 

 

Taxable

 

866

 

 

843

 

 

635

 

 

646

 

 

725

 

 

2,990

 

 

3,619

 

Tax-Exempt

 

66

 

 

71

 

 

74

 

 

78

 

 

78

 

 

289

 

 

369

 

Dividends

 

21

 

 

19

 

 

24

 

 

20

 

 

20

 

 

84

 

 

79

 

Other Interest and Dividend Income

 

106

 

 

135

 

 

151

 

 

98

 

 

99

 

 

490

 

 

517

 

Total Interest and Dividend Income

 

10,963

 

 

10,786

 

 

10,820

 

 

10,988

 

 

11,755

 

 

43,557

 

 

47,467

 

Interest Expense

 

 

 

 

 

 

 

Deposits

 

636

 

 

715

 

 

827

 

 

947

 

 

1,036

 

 

3,125

 

 

5,172

 

Short-Term Borrowings

 

26

 

 

25

 

 

24

 

 

23

 

 

25

 

 

98

 

 

137

 

Other Borrowings

 

70

 

 

36

 

 

35

 

 

41

 

 

60

 

 

182

 

 

254

 

Total Interest Expense

 

732

 

 

776

 

 

886

 

 

1,011

 

 

1,121

 

 

3,405

 

 

5,563

 

Net Interest and Dividend Income

 

10,231

 

 

10,010

 

 

9,934

 

 

9,977

 

 

10,634

 

 

40,152

 

 

41,904

 

Provision (Recovery) for Loan Losses

 

75

 

 

?

 

 

(1,200

)

 

?

 

 

?

 

 

(1,125

)

 

4,000

 

Net Interest and Dividend Income After Provision (Recovery) for Loan Losses

 

10,156

 

 

10,010

 

 

11,134

 

 

9,977

 

 

10,634

 

 

41,277

 

 

37,904

 

Noninterest Income:

 

 

 

 

 

 

 

Service Fees

 

569

 

 

602

 

 

614

 

 

546

 

 

560

 

 

2,331

 

 

2,206

 

Insurance Commissions

 

1,618

 

 

1,194

 

 

1,209

 

 

1,595

 

 

1,403

 

 

5,616

 

 

4,878

 

Other Commissions

 

90

 

 

93

 

 

173

 

 

165

 

 

105

 

 

521

 

 

479

 

Net Gain on Sales of Loans

 

977

 

 

49

 

 

31

 

 

86

 

 

388

 

 

1,143

 

 

1,391

 

Net Gain on Securities

 

44

 

 

24

 

 

11

 

 

447

 

 

213

 

 

526

 

 

233

 

Net Gain on Purchased Tax Credits

 

17

 

 

18

 

 

17

 

 

18

 

 

16

 

 

70

 

 

62

 

Gain on Sale of Branches

 

5,203

 

 

?

 

 

?

 

 

?

 

 

?

 

 

5,203

 

 

?

 

Net Loss on Disposal of Fixed Assets

 

?

 

 

?

 

 

(3

)

 

?

 

 

(13

)

 

(3

)

 

(61

)

Income from Bank-Owned Life Insurance

 

142

 

 

138

 

 

136

 

 

137

 

 

140

 

 

553

 

 

557

 

Other Income (Loss)

 

29

 

 

80

 

 

31

 

 

180

 

 

(34

)

 

320

 

 

(274

)

Total Noninterest Income

 

8,689

 

 

2,198

 

 

2,219

 

 

3,174

 

 

2,778

 

 

16,280

 

 

9,471

 

Noninterest Expense:

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

5,181

 

 

4,787

 

 

5,076

 

 

4,894

 

 

5,126

 

 

19,938

 

 

19,809

 

Occupancy

 

619

 

 

615

 

 

1,024

 

 

710

 

 

606

 

 

2,968

 

 

2,797

 

Equipment

 

252

 

 

205

 

 

311

 

 

266

 

 

234

 

 

1,034

 

 

935

 

Data Processing

 

488

 

 

541

 

 

607

 

 

518

 

 

476

 

 

2,154

 

 

1,843

 

FDIC Assessment

 

222

 

 

293

 

 

249

 

 

250

 

 

344

 

 

1,014

 

 

837

 

PA Shares Tax

 

173

 

 

224

 

 

225

 

 

265

 

 

350

 

 

887

 

 

1,313

 

Contracted Services

 

1,133

 

 

1,441

 

 

750

 

 

687

 

 

577

 

 

4,011

 

 

2,048

 

Legal and Professional Fees

 

206

 

 

180

 

 

419

 

 

189

 

 

185

 

 

994

 

 

752

 

Advertising

 

191

 

 

225

 

 

193

 

 

140

 

 

178

 

 

749

 

 

664

 

Other Real Estate Owned (Income)

 

(30

)

 

(89

)

 

(26

)

 

(38

)

 

(39

)

 

(183

)

 

(69

)

Amortization of Intangible Assets

 

445

 

 

446

 

 

503

 

 

532

 

 

532

 

 

1,926

 

 

2,128

 

Intangible Assets and Goodwill Impairment

 

?

 

 

?

 

 

1,178

 

 

?

 

 

?

 

 

1,178

 

 

18,693

 

Writedown of Fixed Assets

 

23

 

 

2

 

 

2,268

 

 

?

 

 

240

 

 

2,293

 

 

1,124

 

Other

 

1,069

 

 

903

 

 

945

 

 

982

 

 

916

 

 

3,899

 

 

3,893

 

Total Noninterest Expense

 

9,972

 

 

9,773

 

 

13,722

 

 

9,395

 

 

9,725

 

 

42,862

 

 

56,767

 

Income (Loss) Before Income Tax Expense (Benefit)

 

8,873

 

 

2,435

 

 

(369

)

 

3,756

 

 

3,687

 

 

14,695

 

 

(9,392

)

Income Tax Expense (Benefit)

 

1,908

 

 

452

 

 

(146

)

 

911

 

 

608

 

 

3,125

 

 

1,248

 

Net Income (Loss)

$

6,965

 

$

1,983

 

$

(223

)

$

2,845

 

$

3,079

 

$

11,570

 

$

(10,640

)

 
 

 

Three Months Ended

Year Ended

Per Common Share Data

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

12/31/21

12/31/20

Dividends Per Common Share

$

0.24

$

0.24

$

0.24

 

$

0.24

$

0.24

$

0.96

$

0.96

 

Earnings (Loss) Per Common Share - Basic

 

1.32

 

0.37

 

(0.04

)

 

0.52

 

0.57

 

2.15

 

(1.97

)

Earnings (Loss) Per Common Share - Diluted

 

1.31

 

0.37

 

(0.04

)

 

0.52

 

0.57

 

2.15

 

(1.97

)

Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1)

 

0.53

 

0.36

 

0.59

 

 

0.46

 

0.58

 

1.95

 

1.61

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding - Basic

 

5,291,795

 

5,373,032

 

5,432,234

 

 

5,434,374

 

5,404,874

 

5,382,441

 

5,406,290

 

Weighted Average Common Shares Outstanding - Diluted

 

5,314,537

 

5,390,128

 

5,432,234

 

 

5,436,881

 

5,406,068

 

5,392,729

 

5,406,290

 

 
 

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

Common Shares Outstanding

 

5,260,672

 

 

5,330,401

 

 

5,409,077

 

 

5,434,374

 

 

5,434,374

 

Book Value Per Common Share

$

25.31

 

$

24.57

 

$

24.50

 

$

24.62

 

$

24.76

 

Tangible Book Value per Common Share (1)

 

22.45

 

 

21.67

 

 

21.56

 

 

21.38

 

 

21.42

 

Stockholders' Equity to Assets

 

9.3

%

 

8.9

%

 

9.1

%

 

9.1

%

 

9.5

%

Tangible Common Equity to Tangible Assets (1)

 

8.4

 

 

7.9

 

 

8.1

 

 

8.0

 

 

8.3

 

 
 

 

Three Months Ended

Year Ended

Selected Financial Ratios (2)

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

12/31/21

12/31/20

Return on Average Assets

1.87

%

0.54

%

(0.06

) %

0.81

%

0.87

%

0.79

%

(0.77

) %

Adjusted Return on Average Assets (1)

0.76

 

0.53

 

0.87

 

0.71

 

0.88

 

0.72

 

0.63

 

Return on Average Equity

20.95

 

5.93

 

(0.66

)

8.54

 

9.13

 

8.66

 

(7.18

)

Adjusted Return on Average Equity (1)

8.55

 

5.88

 

9.57

 

7.48

 

9.25

 

7.87

 

5.88

 

Average Interest-Earning Assets to Average Interest-Bearing Liabilities

145.09

 

146.78

 

146.82

 

142.98

 

141.58

 

145.44

 

139.89

 

Average Equity to Average Assets

8.93

 

9.03

 

9.08

 

9.48

 

9.49

 

9.12

 

10.75

 

Net Interest Rate Spread

2.85

 

2.77

 

2.72

 

2.91

 

3.07

 

2.81

 

3.13

 

Net Interest Rate Spread (FTE) (1)

2.86

 

2.78

 

2.74

 

2.92

 

3.08

 

2.82

 

3.15

 

Net Interest Margin

2.95

 

2.88

 

2.84

 

3.04

 

3.21

 

2.92

 

3.30

 

Net Interest Margin (FTE) (1)

2.96

 

2.89

 

2.85

 

3.05

 

3.22

 

2.94

 

3.32

 

Net Charge-offs (Recoveries) to Average Loans

0.03

 

(0.01

)

(0.01

)

0.02

 

0.39

 

0.01

 

0.11

 

Efficiency Ratio

52.71

 

80.05

 

112.91

 

71.44

 

72.51

 

75.95

 

110.50

 

Adjusted Efficiency Ratio (1)

69.73

 

77.27

 

80.68

 

70.06

 

68.06

 

74.25

 

68.14

 

 
 

Asset Quality Ratios

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

Allowance for Loan Losses to Total Loans

1.13

%

1.16

%

1.15

%

1.22

%

1.22

%

Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1)

1.16

 

1.20

 

1.21

 

1.30

 

1.29

 

Allowance for Loan Losses to Nonperforming Loans (3)

159.40

 

106.18

 

74.92

 

89.29

 

88.15

 

Allowance for Loan Losses to Noncurrent Loans (4)

233.37

 

135.37

 

90.83

 

118.08

 

117.20

 

Delinquent and Nonaccrual Loans to Total Loans (4) (5)

0.78

 

0.97

 

1.37

 

1.18

 

1.50

 

Nonperforming Loans to Total Loans (3)

0.71

 

1.09

 

1.53

 

1.37

 

1.39

 

Noncurrent Loans to Total Loans (4)

0.49

 

0.85

 

1.26

 

1.03

 

1.04

 

Nonperforming Assets to Total Assets (6)

0.51

 

0.74

 

1.07

 

0.98

 

1.04

 

 

Capital Ratios (7)

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

Common Equity Tier 1 Capital (to Risk Weighted Assets)

11.95 %

11.53 %

11.67 %

11.85 %

11.79 %

Tier 1 Capital (to Risk Weighted Assets)

11.95

11.53

11.67

11.85

11.79

Total Capital (to Risk Weighted Assets)

13.18

12.77

12.92

13.10

13.04

Tier 1 Leverage (to Adjusted Total Assets)

7.76

7.38

7.23

7.87

7.81

 
(1)

Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(2)

Interim period ratios are calculated on an annualized basis.

(3)

Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans.

(4)

Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due.

(5)

Delinquent loans consist of accruing loans that are 30 days or more past due.

(6)

Nonperforming assets consist of nonperforming loans and other real estate owned.

(7)

Capital ratios are for Community Bank only.

Certain items previously reported may have been reclassified to conform with the current reporting period's format.

 

AVERAGE BALANCES AND YIELDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

 

Average
Balance

Interest
and
Dividends

Yield /
Cost
(1)

 

Average
Balance

Interest
and
Dividends

Yield /
Cost
(1)

 

Average
Balance

Interest
and
Dividends

Yield /
Cost
(1)

 

Average
Balance

Interest
and
Dividends

Yield /
Cost
(1)

 

Average
Balance

Interest
and
Dividends

Yield /
Cost
(1)

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net (2)

$

1,004,827

$

9,927

3.92

%

 

$

1,004,474

$

9,740

3.85

%

 

$

1,016,868

$

9,959

3.93

%

 

$

1,031,853

$

10,168

4.00

%

 

$

1,032,942

$

10,860

4.18

%

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

205,328

 

866

1.69

 

 

 

197,763

 

843

1.71

 

 

 

124,685

 

635

2.04

 

 

 

122,883

 

646

2.10

 

 

 

133,026

 

725

2.18

 

Exempt From Federal Tax

 

10,477

 

84

3.21

 

 

 

11,647

 

90

3.09

 

 

 

12,276

 

94

3.06

 

 

 

12,943

 

96

2.97

 

 

 

13,006

 

96

2.95

 

Equity Securities

 

2,693

 

21

3.12

 

 

 

2,655

 

19

2.86

 

 

 

2,649

 

24

3.62

 

 

 

2,632

 

20

3.04

 

 

 

2,612

 

20

3.06

 

Other Interest-Earning Assets

 

153,577

 

106

0.27

 

 

 

164,447

 

135

0.33

 

 

 

246,392

 

151

0.25

 

 

 

161,871

 

98

0.25

 

 

 

137,000

 

99

0.29

 

Total Interest-Earning Assets

 

1,376,902

 

11,004

3.17

 

 

 

1,380,986

 

10,827

3.11

 

 

 

1,402,870

 

10,863

3.11

 

 

 

1,332,182

 

11,028

3.36

 

 

 

1,318,586

 

11,800

3.56

 

Noninterest-Earning Assets

 

100,607

 

 

 

 

88,291

 

 

 

 

82,794

 

 

 

 

92,550

 

 

 

 

94,262

 

 

Total Assets

$

1,477,509

 

 

 

$

1,469,277

 

 

 

$

1,485,664

 

 

 

$

1,424,732

 

 

 

$

1,412,848

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Demand Deposits (3)

$

278,546

 

51

0.07

%

 

$

275,411

 

48

0.07

%

 

$

275,752

 

55

0.08

 

 

$

259,065

 

77

0.12

 

 

$

252,521

 

83

0.13

%

Savings (3)

 

252,387

 

20

0.03

 

 

 

251,801

 

21

0.03

 

 

 

247,238

 

25

0.04

 

 

 

239,850

 

32

0.05

 

 

 

232,647

 

32

0.05

 

Money Market (3)

 

209,572

 

57

0.11

 

 

 

198,167

 

55

0.11

 

 

 

199,652

 

71

0.14

 

 

 

197,395

 

98

0.20

 

 

 

198,983

 

131

0.26

 

Time Deposits (3)

 

154,342

 

508

1.31

 

 

 

168,654

 

591

1.39

 

 

 

177,506

 

676

1.53

 

 

 

187,114

 

740

1.60

 

 

 

193,194

 

790

1.63

 

Total Interest-Bearing Deposits (3)

 

894,847

 

636

0.28

 

 

 

894,033

 

715

0.32

 

 

 

900,148

 

827

0.37

 

 

 

883,424

 

947

0.43

 

 

 

877,345

 

1,036

0.47

 

Short-Term Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities Sold Under Agreements to Repurchase

 

44,709

 

26

0.23

 

 

 

40,818

 

25

0.24

 

 

 

49,325

 

24

0.20

 

 

 

41,094

 

23

0.23

 

 

 

43,468

 

25

0.23

 

Other Borrowings

 

9,474

 

70

2.93

 

 

 

6,000

 

36

2.38

 

 

 

6,000

 

35

2.34

 

 

 

7,200

 

41

2.31

 

 

 

10,543

 

60

2.26

 

Total Interest-Bearing Liabilities

 

949,030

 

732

0.31

 

 

 

940,851

 

776

0.33

 

 

 

955,473

 

886

0.37

 

 

 

931,718

 

1,011

0.44

 

 

 

931,356

 

1,121

0.48

 

Noninterest-Bearing Demand Deposits

 

388,787

 

 

 

 

387,746

 

 

 

 

387,317

 

 

 

 

349,108

 

 

 

 

338,223

 

 

Other Liabilities

 

7,800

 

 

 

 

8,019

 

 

 

 

7,999

 

 

 

 

8,869

 

 

 

 

9,176

 

 

Total Liabilities

 

1,345,617

 

 

 

 

1,336,616

 

 

 

 

1,350,789

 

 

 

 

1,289,695

 

 

 

 

1,278,755

 

 

Stockholders' Equity

 

131,892

 

 

 

 

132,661

 

 

 

 

134,875

 

 

 

 

135,037

 

 

 

 

134,093

 

 

Total Liabilities and Stockholders' Equity

$

1,477,509

 

 

 

$

1,469,277

 

 

 

$

1,485,664

 

 

 

$

1,424,732

 

 

 

$

1,412,848

 

 

Net Interest Income (FTE)

(Non-GAAP) (4)

 

 

10,272

 

 

 

 

10,051

 

 

 

 

9,977

 

 

 

 

10,017

 

 

 

 

10,679

 

Net Interest-Earning Assets (5)

 

427,872

 

 

 

 

440,135

 

 

 

 

447,397

 

 

 

 

400,464

 

 

 

 

387,230

 

 

Net Interest Rate Spread (FTE)

(Non-GAAP) (4) (6)

 

 

2.86

%

 

 

 

2.78

%

 

 

 

2.74

 

 

 

 

2.92

 

 

 

 

3.08

%

Net Interest Margin (FTE)

(Non-GAAP) (4)(7)

 

 

2.96

 

 

 

 

2.89

 

 

 

 

2.85

 

 

 

 

3.05

 

 

 

 

3.22

 

PPP Loans

 

29,067

 

391

5.34

 

 

 

40,313

 

484

4.76

 

 

 

57,661

 

636

4.42

 

 

 

56,945

 

676

4.81

 

 

 

64,914

 

768

4.71

 

(1)

Annualized based on three months ended results.

(2)

Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale.

(3)

Includes Deposits Held for Sale that were sold in December 2021.

(4)

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(5)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(6)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(7)

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

 

AVERAGE BALANCES AND YIELDS

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

December 31, 2021

 

December 31, 2020

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost

 

Average
Balance

 

Interest
and
Dividends

 

Yield /
Cost

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

Loans, Net (1)

$

1,014,405

 

$

39,799

 

3.92

%

 

$

1,008,401

 

$

43,013

 

4.27

%

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

162,987

 

 

2,990

 

1.83

 

 

 

138,015

 

 

3,619

 

2.62

 

Exempt From Federal Tax

 

11,829

 

 

366

 

3.09

 

 

 

14,244

 

 

450

 

3.16

 

Marketable Equity Securities

 

2,657

 

 

84

 

3.16

 

 

 

2,585

 

 

79

 

3.06

 

Other Interest-Earning Assets

 

181,502

 

 

490

 

0.27

 

 

 

105,588

 

 

517

 

0.49

 

Total Interest-Earning Assets

 

1,373,380

 

 

43,729

 

3.18

 

 

 

1,268,833

 

 

47,678

 

3.76

 

Noninterest-Earning Assets

 

91,075

 

 

 

 

 

 

109,241

 

 

 

 

Total Assets

$

1,464,455

 

 

 

 

 

$

1,378,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Demand Deposits (2)

$

272,256

 

 

232

 

0.09

%

 

$

240,372

 

 

590

 

0.25

%

Savings (2)

 

247,864

 

 

98

 

0.04

 

 

 

227,277

 

 

188

 

0.08

 

Money Market (2)

 

201,222

 

 

281

 

0.14

 

 

 

187,095

 

 

708

 

0.38

 

Time Deposits (2)

 

171,805

 

 

2,514

 

1.46

 

 

 

203,128

 

 

3,686

 

1.81

 

Total Interest-Bearing Deposits (2)

 

893,147

 

 

3,125

 

0.35

 

 

 

857,872

 

 

5,172

 

0.60

 

Short-Term Borrowings

 

 

 

 

 

 

 

 

 

 

 

Securities Sold Under Agreements to Repurchase

 

43,988

 

 

98

 

0.22

 

 

 

37,819

 

 

137

 

0.36

 

Other Borrowings

 

7,172

 

 

182

 

2.54

 

 

 

11,328

 

 

254

 

2.24

 

Total Interest-Bearing Liabilities

 

944,307

 

 

3,405

 

0.36

 

 

 

907,019

 

 

5,563

 

0.61

 

Noninterest-Bearing Demand Deposits

 

378,374

 

 

 

 

 

 

313,858

 

 

 

 

Other Liabilities

 

8,168

 

 

 

 

 

 

9,065

 

 

 

 

Total Liabilities

 

1,330,849

 

 

 

 

 

 

1,229,942

 

 

 

 

Stockholders' Equity

 

133,605

 

 

 

 

 

 

148,132

 

 

 

 

Total Liabilities and Stockholders' Equity

$

1,464,454

 

 

 

 

 

$

1,378,074

 

 

 

 

Net Interest Income (FTE) (Non-GAAP) (3)

 

 

 

40,324

 

 

 

 

 

 

42,115

 

 

Net Interest-Earning Assets (3)(4)

 

429,073

 

 

 

 

 

 

361,814

 

 

 

 

Net Interest Rate Spread (FTE) (Non-GAAP) (3)(5)

 

 

 

 

2.82

%

 

 

 

 

 

3.15

%

Net Interest Margin (FTE) (Non-GAAP) (3)(6)

 

 

 

 

2.94

 

 

 

 

 

 

3.32

 

PPP Loans

 

45,905

 

 

2,189

 

4.77

 

 

 

45,694

 

 

1,537

 

3.36

 

 
(1)

Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale.

(2)

Includes Deposits Held for Sale that were sold in December 2021.

(3)

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(4)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(6)

Net interest margin represents net interest income divided by average total interest-earning assets.

 

Explanation of Use of Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles ("GAAP"), we use, and this Press Release contains or references, certain non-GAAP financial measures. We believe these non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company's business and in analyzing the Company's operating results on the same basis as that applied by management. Although we believe that these non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein.

 

Three Months Ended

 

Year Ended

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

 

12/31/21

12/31/20

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) (GAAP)

$

6,965

 

$

1,983

 

$

(223

)

$

2,845

 

$

3,079

 

 

$

11,570

 

$

(10,640

)

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

Gain on Securities

 

(44

)

 

(24

)

 

(11

)

 

(447

)

 

(213

)

 

 

(526

)

 

(233

)

Gain on Sale of Branches

 

(5,203

)

 

?

 

 

?

 

 

?

 

 

?

 

 

 

(5,203

)

 

?

 

Loss on Disposal of Fixed Assets

 

?

 

 

?

 

 

3

 

 

?

 

 

13

 

 

 

3

 

 

61

 

Tax effect

 

1,102

 

 

5

 

 

2

 

 

94

 

 

42

 

 

 

1,202

 

 

36

 

 

 

 

 

 

 

 

 

 

Non-Cash Charges:

 

 

 

 

 

 

 

 

Intangible Assets and Goodwill Impairment

 

?

 

 

?

 

 

1,178

 

 

?

 

 

?

 

 

 

1,178

 

 

18,693

 

Writedown on Fixed Assets

 

23

 

 

2

 

 

2,268

 

 

?

 

 

240

 

 

 

2,293

 

 

1,124

 

Tax Effect

 

?

 

 

?

 

 

?

 

 

?

 

 

(42

)

 

 

?

 

 

(338

)

Adjusted Net Income (Non-GAAP)

$

2,843

 

$

1,966

 

$

3,217

 

$

2,492

 

$

3,119

 

 

$

10,517

 

$

8,703

 

 

 

 

 

 

 

 

 

 

Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding

 

5,314,537

 

 

5,390,128

 

 

5,432,234

 

 

5,436,881

 

 

5,406,068

 

 

 

5,392,729

 

 

5,406,290

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per Common Share - Diluted (GAAP)

$

1.31

 

$

0.37

 

$

(0.04

)

$

0.52

 

$

0.57

 

 

$

2.15

 

$

(1.97

)

 

 

 

 

 

 

 

 

 

Adjusted Earnings per Common Share - Diluted (Non-GAAP)

$

0.53

 

$

0.36

 

$

0.59

 

$

0.46

 

$

0.58

 

 

$

1.95

 

$

1.61

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) (GAAP) (Numerator)

$

6,965

 

$

1,983

 

$

(223

)

$

2,845

 

$

3,079

 

 

$

11,570

 

$

(10,640

)

 

 

 

 

 

 

 

 

 

Annualization Factor

 

3.97

 

 

3.97

 

 

4.01

 

 

4.06

 

 

3.98

 

 

 

1.00

 

 

1.00

 

 

 

 

 

 

 

 

 

 

Average Assets (Denominator)

 

1,477,509

 

 

1,469,277

 

 

1,485,664

 

 

1,424,732

 

 

1,412,848

 

 

 

1,464,455

 

 

1,378,074

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (GAAP)

 

1.87

%

 

0.54

%

 

(0.06

) %

 

0.81

%

 

0.87

%

 

 

0.79

%

 

(0.77

) %

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Non-GAAP) (Numerator)

$

2,843

 

$

1,966

 

$

3,217

 

$

2,492

 

$

3,119

 

 

$

10,517

 

$

8,703

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

3.97

 

 

3.97

 

 

4.01

 

 

4.06

 

 

3.98

 

 

 

1.00

 

 

1.00

 

 

 

 

 

 

 

 

 

 

Average Assets (Denominator)

 

1,477,509

 

 

1,469,277

 

 

1,485,664

 

 

1,424,732

 

 

1,412,848

 

 

 

1,464,455

 

 

1,378,074

 

 

 

 

 

 

 

 

 

 

Adjusted Return on Average Assets (Non-GAAP)

 

0.76

%

 

0.53

%

 

0.87

%

 

0.71

%

 

0.88

%

 

 

0.72

%

 

0.63

%

 
 

 

Three Months Ended

 

Year Ended

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

 

12/31/21

12/31/20

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) (GAAP) (Numerator)

$

6,965

 

$

1,983

 

$

(223

)

$

2,845

 

$

3,079

 

 

$

11,570

 

$

(10,640

)

 

 

 

 

 

 

 

 

 

Annualization Factor

 

3.97

 

 

3.97

 

 

4.01

 

 

4.06

 

 

3.98

 

 

 

1.00

 

 

1.00

 

 

 

 

 

 

 

 

 

 

Average Equity (Denominator) (GAAP)

 

131,892

 

 

132,661

 

 

134,875

 

 

135,037

 

 

134,093

 

 

 

133,605

 

 

148,132

 

 

 

 

 

 

 

 

 

 

Return on Average Equity (GAAP)

 

20.95

%

 

5.93

%

 

(0.66

) %

 

8.54

%

 

9.13

%

 

 

8.66

%

 

(7.18

) %

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Non-GAAP) (Numerator)

$

2,843

 

$

1,966

 

$

3,217

 

$

2,492

 

$

3,119

 

 

$

10,517

 

$

8,703

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

3.97

 

 

3.97

 

 

4.01

 

 

4.06

 

 

3.98

 

 

 

1.00

 

 

1.00

 

 

 

 

 

 

 

 

 

 

Average Equity (Denominator) (GAAP)

 

131,892

 

 

132,661

 

 

134,875

 

 

135,037

 

 

134,093

 

 

 

133,605

 

 

148,132

 

 

 

 

 

 

 

 

 

 

Adjusted Return on Average Equity (Non-GAAP)

 

8.55

%

 

5.88

%

 

9.57

%

 

7.48

%

 

9.25

%

 

 

7.87

%

 

5.88

%

Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company's total value.

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

(Dollars in thousands, except share and per share data) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Assets (GAAP)

$

1,425,479

 

$

1,474,818

 

$

1,461,613

 

$

1,476,821

 

$

1,416,720

 

Goodwill and Intangible Assets, Net

 

(15,027

)

 

(15,472

)

 

(15,918

)

 

(17,599

)

 

(18,131

)

Tangible Assets (Non-GAAP) (Numerator)

$

1,410,452

 

$

1,459,346

 

$

1,445,695

 

$

1,459,222

 

$

1,398,589

 

 

 

 

 

 

 

Stockholders' Equity (GAAP)

$

133,124

 

$

130,987

 

$

132,536

 

$

133,776

 

$

134,530

 

Goodwill and Intangible Assets, Net

 

(15,027

)

 

(15,472

)

 

(15,918

)

 

(17,599

)

 

(18,131

)

Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)

$

118,097

 

$

115,515

 

$

116,618

 

$

116,177

 

$

116,399

 

 

 

 

 

 

 

Stockholders' Equity to Assets (GAAP)

 

9.3

%

 

8.9

%

 

9.1

%

 

9.1

%

 

9.5

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

8.4

%

 

7.9

%

 

8.1

%

 

8.0

%

 

8.3

%

 

 

 

 

 

 

Common Shares Outstanding (Denominator)

 

5,260,672

 

 

5,330,401

 

 

5,409,077

 

 

5,434,374

 

 

5,434,374

 

 

 

 

 

 

 

Book Value per Common Share (GAAP)

$

25.31

 

$

24.57

 

$

24.50

 

$

24.62

 

$

24.76

 

Tangible Book Value per Common Share (Non-GAAP)

$

22.45

 

$

21.67

 

$

21.56

 

$

21.38

 

$

21.42

 

Interest income on interest-earning assets, net interest rate spread and net interest margin are presented on a fully tax-equivalent ("FTE") basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and securities using the federal statutory income tax rate of 21 percent. We believe the presentation of net interest income on a FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income, net interest spread and net interest margin on a FTE basis for the periods indicated:

 

Three Months Ended

 

Year Ended

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

 

12/31/21

12/31/20

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (GAAP)

$

10,963

 

$

10,786

 

$

10,820

 

$

10,988

 

$

11,755

 

 

$

43,557

 

$

47,467

 

Adjustment to FTE Basis

 

41

 

 

41

 

 

43

 

 

40

 

 

45

 

 

 

172

 

 

211

 

Interest Income (FTE) (Non-GAAP)

 

11,004

 

 

10,827

 

 

10,863

 

 

11,028

 

 

11,800

 

 

 

43,729

 

 

47,678

 

Interest Expense (GAAP)

 

732

 

 

776

 

 

886

 

 

1,011

 

 

1,121

 

 

 

3,405

 

 

5,563

 

Net Interest Income (FTE) (Non-GAAP)

$

10,272

 

$

10,051

 

$

9,977

 

$

10,017

 

$

10,679

 

 

$

40,324

 

$

42,115

 

 

 

 

 

 

 

 

 

 

Net Interest Rate Spread (GAAP)

 

2.85

%

 

2.77

%

 

2.72

%

 

2.91

%

 

3.07

%

 

 

2.81

%

 

3.13

%

Adjustment to FTE Basis

 

0.01

 

 

0.01

 

 

0.02

 

 

0.01

 

 

0.01

 

 

 

0.01

 

 

0.02

 

Net Interest Rate Spread (FTE) (Non-GAAP)

 

2.86

 

 

2.78

 

 

2.74

 

 

2.92

 

 

3.08

 

 

 

2.82

 

 

3.15

 

 

 

 

 

 

 

 

 

 

Net Interest Margin (GAAP)

 

2.95

%

 

2.88

%

 

2.84

%

 

3.04

%

 

3.21

%

 

 

2.92

%

 

3.30

%

Adjustment to FTE Basis

 

0.01

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.01

 

 

 

0.02

 

 

0.02

 

Net Interest Margin (FTE) (Non-GAAP)

 

2.96

 

 

2.89

 

 

2.85

 

 

3.05

 

 

3.22

 

 

 

2.94

 

 

3.32

 

Adjusted efficiency ratio excludes the effect of certain non-recurring or non-cash items and represents adjusted noninterest expense divided by adjusted operating revenue. The Company evaluates its operational efficiency based on its adjusted efficiency ratio and believes it provides additional perspective on its ongoing performance as well as peer comparability.

 

Three Months Ended

 

Year Ended

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

 

12/31/21

12/31/20

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense (GAAP)

$

9,972

 

$

9,773

 

$

13,722

 

$

9,395

 

$

9,725

 

 

$

42,862

 

$

56,767

 

 

 

 

 

 

 

 

 

 

Net Interest and Dividend Income (GAAP)

 

10,231

 

 

10,010

 

 

9,934

 

 

9,977

 

 

10,634

 

 

 

40,152

 

 

41,904

 

 

 

 

 

 

 

 

 

 

Noninterest Income (GAAP)

 

8,689

 

 

2,198

 

 

2,219

 

 

3,174

 

 

2,778

 

 

 

16,280

 

 

9,471

 

Operating Revenue (GAAP)

 

18,920

 

 

12,208

 

 

12,153

 

 

13,151

 

 

13,412

 

 

 

56,432

 

 

51,375

 

Efficiency Ratio (GAAP)

 

52.71

%

 

80.05

%

 

112.91

%

 

71.44

%

 

72.51

%

 

 

75.95

%

 

110.50

%

 

 

 

 

 

 

 

 

 

Noninterest Expense (GAAP)

$

9,972

 

$

9,773

 

$

13,722

 

$

9,395

 

$

9,725

 

 

$

42,862

 

$

56,767

 

Less:

 

 

 

 

 

 

 

 

Other Real Estate Owned (Income)

 

(30

)

 

(89

)

 

(26

)

 

(38

)

 

(39

)

 

 

(183

)

 

(69

)

Amortization of Intangible Assets

 

445

 

 

446

 

 

503

 

 

532

 

 

532

 

 

 

1,926

 

 

2,128

 

Intangible Assets and Goodwill Impairment

 

?

 

 

?

 

 

1,178

 

 

?

 

 

?

 

 

 

1,178

 

 

18,693

 

Writedown on Fixed Assets

 

23

 

 

2

 

 

2,268

 

 

?

 

 

240

 

 

 

2,293

 

 

1,124

 

Adjusted Noninterest Expense (Non-GAAP)

$

9,534

 

$

9,414

 

$

9,799

 

$

8,901

 

$

8,992

 

 

$

37,648

 

$

34,891

 

 

 

 

 

 

 

 

 

 

Net Interest and Dividend Income (GAAP)

 

10,231

 

 

10,010

 

 

9,934

 

 

9,977

 

 

10,634

 

 

 

40,152

 

 

41,904

 

Noninterest Income (GAAP)

 

8,689

 

 

2,198

 

 

2,219

 

 

3,174

 

 

2,778

 

 

 

16,280

 

 

9,471

 

Less:

 

 

 

 

 

 

 

 

Net Gain on Securities

 

44

 

 

24

 

 

11

 

 

447

 

 

213

 

 

 

526

 

 

233

 

Gain on Sale of Branches

 

5,203

 

 

?

 

 

?

 

 

?

 

 

?

 

 

 

5,203

 

 

?

 

Net Loss on Disposal of Fixed Assets

 

?

 

 

?

 

 

(3

)

 

?

 

 

(13

)

 

 

(3

)

 

(61

)

Adjusted Noninterest Income (Non-GAAP)

 

3,442

 

 

2,174

 

 

2,211

 

 

2,727

 

 

2,578

 

 

 

10,554

 

 

9,299

 

Adjusted Operating Revenue (Non-GAAP)

 

13,673

 

 

12,184

 

 

12,145

 

 

12,704

 

 

13,212

 

 

 

50,706

 

 

51,203

 

Adjusted Efficiency Ratio (Non-GAAP)

 

69.73

%

 

77.27

%

 

80.68

%

 

70.06

%

 

68.06

%

 

 

74.25

%

 

68.14

%

 

Allowance for loan losses to total loans, excluding PPP loans, is a non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans.

 

12/31/21

9/30/21

6/30/21

3/31/21

12/31/20

(Dollars in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

$

11,582

 

$

11,581

 

$

11,544

 

$

12,725

 

$

12,771

 

 

 

 

 

 

 

Total Loans

 

1,020,796

 

$

1,001,599

 

 

1,007,446

 

$

1,041,697

 

$

1,044,753

 

PPP Loans

 

(24,523

)

 

(32,703

)

 

(49,525

)

 

(60,380

)

 

(55,096

)

Total Loans, Excluding PPP Loans (Non-GAAP)

$

996,273

 

$

968,896

 

$

957,921

 

$

981,317

 

$

989,657

 

 

 

 

 

 

 

Allowance for Loan Losses to Total Loans, Excluding

PPP Loans (Non-GAAP)

 

1.16

%

 

1.20

%

 

1.21

%

 

1.30

%

 

1.29

%

 


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