Mid Penn Bancorp, Inc. Reports Second Quarter Earnings Beat and Declares 55th Consecutive Quarterly Dividend
Key Highlights of the Second Quarter of 2024:
-
Net income available to common shareholders increased 143.4% to
$11.8 million , or$0.71 per diluted common share, for the second quarter of 2024, compared to net income of$4.8 million , or$0.29 per diluted common share, for the second quarter of 2023. Net income for the six months endedJune 30, 2024 , increased 48.82% to$23.9 million , or$1.44 per diluted common share, compared to$16.1 million for the six months endedJune 30, 2023 , or$1.00 per diluted common share.
-
Loan growth for the second quarter of 2024 was
$47.1 million , or 4.4% (annualized), as the Bank continued to execute on its restrained growth strategy in 2024. Total loans increased$330.1 million , or 8.18%, compared to the second quarter of 2023.
-
Deposits increased
$122.6 million , or 11.3% (annualized), during the second quarter of 2024, compared to$32.9 million , or 3.0% (annualized), during the first quarter of 2024. The increase was driven by a$112.1 million increase in interest bearing accounts, and a$47.7 million increase in time deposits.
-
Net interest margin increased to 3.12% for the quarter ended
June 30, 2024 , compared to 2.97% for the first quarter of 2024. Cost of funds held steady at 2.74%, compared to 2.71% for the first quarter of 2024, as the Bank continued to experience strong core deposit growth.
-
Book value per common share improved to
$33.76 for the quarter endedJune 30, 2024 , compared to$33.26 and$31.74 for the periods endedMarch 31, 2024 andJune 30, 2023 , respectively. Tangible book value per common share improved to$25.75 for the quarter endedJune 30, 2024 , compared to$25.23 and$23.62 for the periods endedMarch 31, 2024 andJune 30, 2023 , respectively. (1)
-
Nonperforming assets decreased
$5.1 million , or 33%, compared to the first quarter of 2024. The decrease was primarily due to the sale of one foreclosed property, which resulted in a loss on sale of approximately$26 thousand .
-
The Board of Directors declared a cash dividend of
$0.20 per common share, payableAugust 26, 2024 , to shareholders of record as ofAugust 9, 2024 .
(1) Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document.
“We are pleased to announce the results of our second quarter, detailed within this earnings release, as they are virtually in lockstep with what we have been signaling over the last nine months. That signal has included restrained loan growth, a focus on core deposit growth and a restraint on noninterest expenses,” Chair, President and CEO
Ritrievi continued, “In organic deposit growth, the second quarter exceeded expectations. Within the quarter, we grew deposits on an annualized basis of over 11%, which puts us at over 7% annualized growth through the first six months of the year. Again, this is right in line with our plan. Core deposit growth has always been a calling card of Mid Penn over our 15 years together and it is great to see that back on track after a challenging 2023. The combination of restrained loan growth and significant core deposit growth helped us to not only stabilize but also grow our net interest margin within the quarter. That is the first such quarterly growth in that metric since rates began to escalate and the interest rate curve became inverted in 2022.”
“From a noninterest expense standpoint, we decreased our level of expenses within the second quarter at a rate of approximately 4% annualized. Our second quarter 2024 expense run rate was lower than it was in each of the previous four quarters, a great sign for efficiency ratio improvement," Ritrievi added. "The best part of the quarter, however, was our continued strength in asset (loan) quality. Non performing assets decreased 33% within the quarter while our net charge off ratio improved to 0.002% and the coverage ratio improved to 353%. All great signs heading into the last six months of the year.”
Ritrievi concluded, "With all of that in mind, the Board has authorized a quarterly cash dividend of
Net Interest Income
For the three months ended
The yield on interest-earning assets increased to 5.69% for the quarter ended
For the six months ended
Average Balances
Average loans increased
Average deposits were
Deposits increased
Asset Quality
The total provision for credit losses, including provision for credit losses on off-balance sheet credit exposures, was
The provision for credit losses on loans was
Allowance for credit losses - loans was 0.81% of loans, net of unearned interest at
Total nonperforming assets were
Capital
Shareholders’ equity increased
On
Noninterest Income
For the three months ended
For the six months ended
Noninterest Expense
Total noninterest expense decreased
For the six months ended
The efficiency ratio(1) was 63.7% in the second quarter of 2024, compared to 68.8% in the first quarter of 2024, and 64.4% in the second quarter of 2023. The improvement in the efficiency ratio during the second quarter of 2024 compared to the first quarter of 2024 was the result of higher net interest income, and lower noninterest expenses. The change from the second quarter of 2023 was driven by the reduction in noninterest expense from the Brunswick acquisition in 2023. Mid Penn continues to evaluate levels of noninterest expense for opportunities to reduce operating costs throughout the organization.
Subsequent Events
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
(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; 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; legislation affecting the financial services industry as a whole, and
For a more detailed description of these and other factors which would affect our results, please see Mid Penn’s filings with the
SUMMARY FINANCIAL HIGHLIGHTS (Unaudited):
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
||||||||||
Ending Balances: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
$ |
601,683 |
|
|
$ |
615,061 |
|
|
$ |
623,121 |
|
|
$ |
620,636 |
|
|
$ |
634,287 |
|
Loans, net of unearned interest |
|
4,364,561 |
|
|
|
4,317,449 |
|
|
|
4,252,792 |
|
|
|
4,145,657 |
|
|
|
4,034,510 |
|
Total assets |
|
5,396,467 |
|
|
|
5,330,379 |
|
|
|
5,290,792 |
|
|
|
5,214,718 |
|
|
|
5,087,568 |
|
Total deposits |
|
4,501,729 |
|
|
|
4,379,105 |
|
|
|
4,346,212 |
|
|
|
4,380,380 |
|
|
|
4,285,450 |
|
Shareholders' equity |
|
559,686 |
|
|
|
550,968 |
|
|
|
542,350 |
|
|
|
528,711 |
|
|
|
525,888 |
|
Average Balances: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
|
608,173 |
|
|
|
615,687 |
|
|
|
606,946 |
|
|
|
619,071 |
|
|
|
630,750 |
|
Loans, net of unearned interest |
|
4,353,360 |
|
|
|
4,293,828 |
|
|
|
4,201,092 |
|
|
|
4,053,514 |
|
|
|
3,808,717 |
|
Total assets |
|
5,378,897 |
|
|
|
5,319,680 |
|
|
|
5,226,382 |
|
|
|
5,106,103 |
|
|
|
4,827,786 |
|
Total deposits |
|
4,451,678 |
|
|
|
4,312,094 |
|
|
|
4,402,565 |
|
|
|
4,361,067 |
|
|
|
4,057,605 |
|
Shareholders' equity |
|
553,675 |
|
|
|
546,001 |
|
|
|
537,219 |
|
|
|
529,067 |
|
|
|
504,535 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
||||||||||||||||||
Income Statement: |
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
$ |
38,766 |
|
|
$ |
36,456 |
|
|
$ |
37,000 |
|
|
$ |
37,480 |
|
|
$ |
36,444 |
|
Provision for credit losses |
|
1,604 |
|
|
|
(937 |
) |
|
|
(664 |
) |
|
|
2,087 |
|
|
|
1,558 |
|
Noninterest income |
|
5,329 |
|
|
|
5,837 |
|
|
|
5,117 |
|
|
|
5,346 |
|
|
|
5,220 |
|
Noninterest expense |
|
28,224 |
|
|
|
28,520 |
|
|
|
28,389 |
|
|
|
29,229 |
|
|
|
35,128 |
|
Income before provision for income taxes |
|
14,267 |
|
|
|
14,710 |
|
|
|
14,392 |
|
|
|
11,510 |
|
|
|
4,978 |
|
Provision for income taxes |
|
2,496 |
|
|
|
2,577 |
|
|
|
2,294 |
|
|
|
2,274 |
|
|
|
142 |
|
Net income available to shareholders |
|
11,771 |
|
|
|
12,133 |
|
|
|
12,098 |
|
|
|
9,236 |
|
|
|
4,836 |
|
Net income excluding non-recurring income and expenses (1) |
|
11,284 |
|
|
|
10,673 |
|
|
|
12,098 |
|
|
|
9,514 |
|
|
|
11,112 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share |
$ |
0.71 |
|
|
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
Diluted earnings per common share |
|
0.71 |
|
|
|
0.73 |
|
|
|
0.73 |
|
|
|
0.56 |
|
|
|
0.29 |
|
Cash dividends declared |
|
0.20 |
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
0.20 |
|
Book value per common share |
|
33.76 |
|
|
|
33.26 |
|
|
|
32.72 |
|
|
|
31.89 |
|
|
|
31.74 |
|
Tangible book value per common share (1) |
|
25.75 |
|
|
|
25.23 |
|
|
|
24.67 |
|
|
|
23.81 |
|
|
|
23.62 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality: |
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs (recoveries) to average loans |
|
0.002 |
% |
|
|
0.004 |
% |
|
|
0.004 |
% |
|
|
0.001 |
% |
|
|
0.018 |
% |
Non-performing loans to total loans |
|
0.23 |
|
|
|
0.24 |
|
|
|
0.33 |
|
|
|
0.32 |
|
|
|
0.39 |
|
Non-performing asset to total loans and other real |
|
0.24 |
|
|
|
0.36 |
|
|
|
0.34 |
|
|
|
0.35 |
|
|
|
0.40 |
|
Non-performing asset to total assets |
|
0.19 |
|
|
|
0.29 |
|
|
|
0.27 |
|
|
|
0.28 |
|
|
|
0.32 |
|
ACL on loans to total loans |
|
0.81 |
|
|
|
0.78 |
|
|
|
0.80 |
|
|
|
0.82 |
|
|
|
0.81 |
|
ACL on loans to nonperforming loans |
|
352.92 |
|
|
|
322.69 |
|
|
|
240.48 |
|
|
|
252.67 |
|
|
|
205.65 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Profitability: |
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets |
|
0.88 |
% |
|
|
0.92 |
% |
|
|
0.92 |
% |
|
|
0.72 |
% |
|
|
0.40 |
% |
Return on average equity |
|
8.55 |
|
|
|
8.94 |
|
|
|
8.93 |
|
|
|
6.93 |
|
|
|
3.84 |
|
Return on average tangible common equity (1) |
|
11.57 |
|
|
|
12.15 |
|
|
|
12.31 |
|
|
|
9.69 |
|
|
|
5.55 |
|
Net interest margin |
|
3.12 |
|
|
|
2.98 |
|
|
|
3.02 |
|
|
|
3.16 |
|
|
|
3.31 |
|
Efficiency ratio (1) |
|
63.65 |
|
|
|
68.80 |
|
|
|
66.42 |
|
|
|
66.34 |
|
|
|
64.44 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios: |
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 Capital (to Average Assets) (2) |
|
8.4 |
% |
|
|
8.3 |
% |
|
|
8.3 |
% |
|
|
8.4 |
% |
|
|
9.6 |
% |
Common Tier 1 Capital (to Risk Weighted Assets) (2) |
|
9.9 |
|
|
|
9.6 |
|
|
|
9.7 |
|
|
|
9.7 |
|
|
|
10.7 |
|
Tier 1 Capital (to Risk Weighted Assets) (2) |
|
9.9 |
|
|
|
9.6 |
|
|
|
9.7 |
|
|
|
9.7 |
|
|
|
10.7 |
|
Total Capital (to Risk Weighted Assets) (2) |
|
11.8 |
|
|
|
11.4 |
|
|
|
11.6 |
|
|
|
11.7 |
|
|
|
11.5 |
|
(1) |
Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document. |
|
(2) |
Regulatory capital ratios as of |
|
CONSOLIDATED BALANCE SHEETS (Unaudited):
(In thousands, except share data) |
|
|
|
|
|
|
|
|
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
41,666 |
|
|
$ |
33,362 |
|
|
$ |
45,435 |
|
|
$ |
52,509 |
|
|
$ |
70,832 |
|
Interest-bearing balances with other financial |
|
25,585 |
|
|
|
31,801 |
|
|
|
34,668 |
|
|
|
12,739 |
|
|
|
13,332 |
|
Federal funds sold |
|
43,193 |
|
|
|
2,922 |
|
|
|
16,660 |
|
|
|
52,851 |
|
|
|
9,711 |
|
Total cash and cash equivalents |
|
110,444 |
|
|
|
68,085 |
|
|
|
96,763 |
|
|
|
118,099 |
|
|
|
93,875 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity, at amortized cost |
|
393,320 |
|
|
|
396,998 |
|
|
|
399,128 |
|
|
|
401,561 |
|
|
|
404,831 |
|
Available for sale, at fair value |
|
207,936 |
|
|
|
217,632 |
|
|
|
223,555 |
|
|
|
218,662 |
|
|
|
229,023 |
|
Equity securities available for sale, at fair value |
|
427 |
|
|
|
431 |
|
|
|
438 |
|
|
|
413 |
|
|
|
433 |
|
Loans held for sale |
|
8,420 |
|
|
|
4,581 |
|
|
|
3,855 |
|
|
|
4,270 |
|
|
|
7,258 |
|
Loans, net of unearned interest |
|
4,364,561 |
|
|
|
4,317,449 |
|
|
|
4,252,792 |
|
|
|
4,145,657 |
|
|
|
4,034,510 |
|
Less: Allowance for credit losses |
|
(35,288 |
) |
|
|
(33,524 |
) |
|
|
(34,187 |
) |
|
|
(34,004 |
) |
|
|
(32,588 |
) |
Net loans |
|
4,329,273 |
|
|
|
4,283,925 |
|
|
|
4,218,605 |
|
|
|
4,111,653 |
|
|
|
4,001,922 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premises and equipment, net |
|
34,344 |
|
|
|
36,068 |
|
|
|
36,909 |
|
|
|
38,102 |
|
|
|
38,483 |
|
Operating lease right of use asset |
|
7,925 |
|
|
|
8,414 |
|
|
|
8,953 |
|
|
|
8,693 |
|
|
|
9,106 |
|
Finance lease right of use asset |
|
2,638 |
|
|
|
2,683 |
|
|
|
2,727 |
|
|
|
2,773 |
|
|
|
2,817 |
|
Cash surrender value of life insurance |
|
53,298 |
|
|
|
52,997 |
|
|
|
54,497 |
|
|
|
54,209 |
|
|
|
53,931 |
|
Restricted investment in bank stocks |
|
13,930 |
|
|
|
17,446 |
|
|
|
16,768 |
|
|
|
13,554 |
|
|
|
11,646 |
|
Accrued interest receivable |
|
27,381 |
|
|
|
26,975 |
|
|
|
25,820 |
|
|
|
24,230 |
|
|
|
19,626 |
|
Deferred income taxes |
|
24,520 |
|
|
|
22,894 |
|
|
|
24,146 |
|
|
|
25,110 |
|
|
|
23,910 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
Core deposit and other intangibles, net |
|
5,626 |
|
|
|
6,051 |
|
|
|
6,479 |
|
|
|
6,970 |
|
|
|
7,453 |
|
Foreclosed assets held for sale |
|
441 |
|
|
|
5,110 |
|
|
|
293 |
|
|
|
905 |
|
|
|
489 |
|
Other assets |
|
49,513 |
|
|
|
53,058 |
|
|
|
44,825 |
|
|
|
58,483 |
|
|
|
55,734 |
|
Total Assets |
$ |
5,396,467 |
|
|
$ |
5,330,379 |
|
|
$ |
5,290,792 |
|
|
$ |
5,214,718 |
|
|
$ |
5,087,568 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand |
$ |
770,732 |
|
|
$ |
807,861 |
|
|
$ |
801,312 |
|
|
$ |
803,550 |
|
|
$ |
822,822 |
|
Interest-bearing transaction accounts |
|
2,194,948 |
|
|
|
2,082,846 |
|
|
|
2,086,450 |
|
|
|
2,217,885 |
|
|
|
2,186,734 |
|
Time |
|
1,536,049 |
|
|
|
1,488,398 |
|
|
|
1,458,450 |
|
|
|
1,358,945 |
|
|
|
1,275,894 |
|
Total Deposits |
|
4,501,729 |
|
|
|
4,379,105 |
|
|
|
4,346,212 |
|
|
|
4,380,380 |
|
|
|
4,285,450 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings |
|
200,000 |
|
|
|
271,849 |
|
|
|
241,532 |
|
|
|
139,000 |
|
|
|
112,442 |
|
Long-term debt |
|
23,827 |
|
|
|
23,941 |
|
|
|
59,003 |
|
|
|
58,991 |
|
|
|
58,981 |
|
Subordinated debt and trust preferred securities |
|
46,047 |
|
|
|
46,201 |
|
|
|
46,354 |
|
|
|
46,501 |
|
|
|
46,648 |
|
Operating lease liability |
|
8,344 |
|
|
|
8,683 |
|
|
|
9,285 |
|
|
|
9,097 |
|
|
|
9,894 |
|
Accrued interest payable |
|
18,139 |
|
|
|
16,330 |
|
|
|
14,257 |
|
|
|
14,657 |
|
|
|
11,115 |
|
Other liabilities |
|
38,695 |
|
|
|
33,302 |
|
|
|
31,799 |
|
|
|
37,381 |
|
|
|
37,150 |
|
Total Liabilities |
|
4,836,781 |
|
|
|
4,779,411 |
|
|
|
4,748,442 |
|
|
|
4,686,007 |
|
|
|
4,561,680 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
||||||||||
Common stock, par value |
|
17,051 |
|
|
|
17,006 |
|
|
|
16,999 |
|
|
|
16,993 |
|
|
|
16,980 |
|
Additional paid-in capital |
|
406,544 |
|
|
|
406,150 |
|
|
|
405,725 |
|
|
|
405,341 |
|
|
|
404,902 |
|
Retained earnings |
|
163,256 |
|
|
|
154,801 |
|
|
|
145,982 |
|
|
|
137,199 |
|
|
|
131,271 |
|
Accumulated other comprehensive loss |
|
(17,123 |
) |
|
|
(16,947 |
) |
|
|
(16,637 |
) |
|
|
(21,362 |
) |
|
|
(17,805 |
) |
|
|
(10,042 |
) |
|
|
(10,042 |
) |
|
|
(9,719 |
) |
|
|
(9,460 |
) |
|
|
(9,460 |
) |
Total Shareholders’ Equity |
|
559,686 |
|
|
|
550,968 |
|
|
|
542,350 |
|
|
|
528,711 |
|
|
|
525,888 |
|
Total Liabilities and Shareholders' Equity |
$ |
5,396,467 |
|
|
$ |
5,330,379 |
|
|
$ |
5,290,792 |
|
|
$ |
5,214,718 |
|
|
$ |
5,087,568 |
|
CONSOLIDATED STATEMENTS OF INCOME (Unaudited):
|
Three Months Ended |
|||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|||||||||
Loans, including fees |
$ |
66,096 |
|
$ |
63,236 |
|
|
$ |
61,309 |
|
|
$ |
58,792 |
|
|
$ |
52,094 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|||||||||
Taxable |
|
4,143 |
|
|
4,040 |
|
|
|
4,063 |
|
|
|
4,106 |
|
|
|
3,962 |
|
Tax-exempt |
|
371 |
|
|
376 |
|
|
|
378 |
|
|
|
382 |
|
|
|
391 |
|
Other interest-bearing balances |
|
347 |
|
|
403 |
|
|
|
139 |
|
|
|
86 |
|
|
|
83 |
|
Federal funds sold |
|
282 |
|
|
136 |
|
|
|
228 |
|
|
|
51 |
|
|
|
49 |
|
Total Interest Income |
|
71,239 |
|
|
68,191 |
|
|
|
66,117 |
|
|
|
63,417 |
|
|
|
56,579 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||||||||
Deposits |
|
28,463 |
|
|
26,332 |
|
|
|
25,808 |
|
|
|
23,559 |
|
|
|
17,927 |
|
Short-term borrowings |
|
3,324 |
|
|
4,446 |
|
|
|
2,506 |
|
|
|
1,584 |
|
|
|
1,507 |
|
Long-term and subordinated debt |
|
686 |
|
|
957 |
|
|
|
803 |
|
|
|
794 |
|
|
|
701 |
|
Total Interest Expense |
|
32,473 |
|
|
31,735 |
|
|
|
29,117 |
|
|
|
25,937 |
|
|
|
20,135 |
|
Net Interest Income |
|
38,766 |
|
|
36,456 |
|
|
|
37,000 |
|
|
|
37,480 |
|
|
|
36,444 |
|
PROVISION FOR CREDIT LOSSES |
|
1,604 |
|
|
(937 |
) |
|
|
(664 |
) |
|
|
2,087 |
|
|
|
1,558 |
|
Net Interest Income After Provision for Credit Losses |
|
37,162 |
|
|
37,393 |
|
|
|
37,664 |
|
|
|
35,393 |
|
|
|
34,886 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|||||||||
Fiduciary and wealth management |
|
1,129 |
|
|
1,132 |
|
|
|
1,323 |
|
|
|
1,296 |
|
|
|
1,204 |
|
ATM debit card interchange |
|
973 |
|
|
945 |
|
|
|
979 |
|
|
|
986 |
|
|
|
998 |
|
Service charges on deposits |
|
539 |
|
|
509 |
|
|
|
485 |
|
|
|
509 |
|
|
|
514 |
|
Mortgage banking |
|
628 |
|
|
424 |
|
|
|
300 |
|
|
|
382 |
|
|
|
287 |
|
Mortgage hedging |
|
— |
|
|
— |
|
|
|
109 |
|
|
|
67 |
|
|
|
128 |
|
Net gain on sales of SBA loans |
|
74 |
|
|
107 |
|
|
|
358 |
|
|
|
85 |
|
|
|
128 |
|
Earnings from cash surrender value of life insurance |
|
301 |
|
|
284 |
|
|
|
288 |
|
|
|
278 |
|
|
|
292 |
|
Other |
|
1,685 |
|
|
2,436 |
|
|
|
1,275 |
|
|
|
1,743 |
|
|
|
1,669 |
|
Total Noninterest Income |
|
5,329 |
|
|
5,837 |
|
|
|
5,117 |
|
|
|
5,346 |
|
|
|
5,220 |
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and employee benefits |
|
15,533 |
|
|
15,462 |
|
|
|
15,215 |
|
|
|
15,259 |
|
|
|
15,027 |
|
Software licensing and utilization |
|
2,208 |
|
|
2,120 |
|
|
|
1,826 |
|
|
|
2,085 |
|
|
|
2,070 |
|
Occupancy, net |
|
1,861 |
|
|
1,982 |
|
|
|
1,952 |
|
|
|
1,761 |
|
|
|
1,750 |
|
Equipment |
|
1,287 |
|
|
1,222 |
|
|
|
1,330 |
|
|
|
1,292 |
|
|
|
1,248 |
|
Shares tax |
|
124 |
|
|
997 |
|
|
|
255 |
|
|
|
808 |
|
|
|
751 |
|
Legal and professional fees |
|
689 |
|
|
998 |
|
|
|
653 |
|
|
|
890 |
|
|
|
602 |
|
ATM/card processing |
|
510 |
|
|
534 |
|
|
|
442 |
|
|
|
641 |
|
|
|
532 |
|
Intangible amortization |
|
425 |
|
|
428 |
|
|
|
491 |
|
|
|
484 |
|
|
|
461 |
|
FDIC Assessment |
|
1,232 |
|
|
945 |
|
|
|
730 |
|
|
|
1,746 |
|
|
|
684 |
|
(Gain) loss on sale or write-down of foreclosed assets, net |
|
42 |
|
|
— |
|
|
|
— |
|
|
|
(18 |
) |
|
|
(126 |
) |
Merger and acquisition |
|
— |
|
|
— |
|
|
|
— |
|
|
|
352 |
|
|
|
4,992 |
|
Post-acquisition restructuring |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,952 |
|
Other |
|
4,313 |
|
|
3,832 |
|
|
|
5,495 |
|
|
|
3,929 |
|
|
|
4,185 |
|
Total Noninterest Expense |
|
28,224 |
|
|
28,520 |
|
|
|
28,389 |
|
|
|
29,229 |
|
|
|
35,128 |
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
14,267 |
|
|
14,710 |
|
|
|
14,392 |
|
|
|
11,510 |
|
|
|
4,978 |
|
Provision for income taxes |
|
2,496 |
|
|
2,577 |
|
|
|
2,294 |
|
|
|
2,274 |
|
|
|
142 |
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ |
11,771 |
|
$ |
12,133 |
|
|
$ |
12,098 |
|
|
$ |
9,236 |
|
|
$ |
4,836 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PER COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|||||||||
Basic Earnings Per Common Share |
$ |
0.71 |
|
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
Diluted Earnings Per Common Share |
$ |
0.71 |
|
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
Cash Dividends Declared |
$ |
0.20 |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
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) |
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
|||||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest Bearing Balances |
$ |
35,618 |
|
$ |
347 |
|
3.92 |
% |
|
$ |
39,999 |
|
$ |
403 |
|
4.05 |
% |
|
$ |
7,777 |
|
$ |
83 |
|
4.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable |
|
533,748 |
|
|
3,701 |
|
2.79 |
|
|
|
539,674 |
|
|
3,800 |
|
2.83 |
|
|
|
551,832 |
|
|
3,783 |
|
2.75 |
|
Tax-Exempt |
|
74,425 |
|
|
371 |
|
2.00 |
|
|
|
76,013 |
|
|
376 |
|
1.99 |
|
|
|
78,918 |
|
|
391 |
|
1.99 |
|
|
|
608,173 |
|
|
4,072 |
|
2.69 |
|
|
|
615,687 |
|
|
4,176 |
|
2.73 |
|
|
|
630,750 |
|
|
4,174 |
|
2.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal Funds Sold |
|
19,432 |
|
|
282 |
|
5.84 |
|
|
|
10,373 |
|
|
136 |
|
5.27 |
|
|
|
6,035 |
|
|
49 |
|
3.26 |
|
Loans, Net of Unearned Interest |
|
4,353,360 |
|
|
66,096 |
|
6.11 |
|
|
|
4,293,828 |
|
|
63,236 |
|
5.92 |
|
|
|
3,808,717 |
|
|
52,094 |
|
5.49 |
|
|
|
16,066 |
|
|
442 |
|
11.07 |
|
|
|
19,439 |
|
|
240 |
|
4.97 |
|
|
|
10,177 |
|
|
179 |
|
7.05 |
|
Total Earning Assets |
|
5,032,649 |
|
|
71,239 |
|
5.69 |
|
|
|
4,979,326 |
|
|
68,191 |
|
5.51 |
|
|
|
4,463,456 |
|
|
56,579 |
|
5.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and Due from |
|
39,053 |
|
|
|
|
|
|
38,264 |
|
|
|
|
|
|
70,378 |
|
|
|
|
||||||
Other Assets |
|
307,195 |
|
|
|
|
|
|
302,090 |
|
|
|
|
|
|
293,952 |
|
|
|
|
||||||
Total Assets |
$ |
5,378,897 |
|
|
|
|
|
$ |
5,319,680 |
|
|
|
|
|
$ |
4,827,786 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES & SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing Demand |
$ |
972,852 |
|
$ |
4,477 |
|
1.85 |
% |
|
$ |
898,340 |
|
$ |
3,884 |
|
1.74 |
% |
|
$ |
936,687 |
|
$ |
3,216 |
|
1.38 |
% |
Money Market |
|
908,807 |
|
|
6,632 |
|
2.94 |
|
|
|
876,242 |
|
|
5,968 |
|
2.74 |
|
|
|
929,774 |
|
|
5,104 |
|
2.20 |
|
Savings |
|
281,560 |
|
|
52 |
|
0.07 |
|
|
|
287,765 |
|
|
72 |
|
0.10 |
|
|
|
319,728 |
|
|
64 |
|
0.08 |
|
Time |
|
1,510,079 |
|
|
17,302 |
|
4.61 |
|
|
|
1,468,611 |
|
|
16,408 |
|
4.49 |
|
|
|
1,061,276 |
|
|
9,543 |
|
3.61 |
|
Total Interest-bearing Deposits |
|
3,673,298 |
|
|
28,463 |
|
3.12 |
|
|
|
3,530,958 |
|
|
26,332 |
|
3.00 |
|
|
|
3,247,465 |
|
|
17,927 |
|
2.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Short term borrowings |
|
241,713 |
|
|
3,324 |
|
5.53 |
|
|
|
316,025 |
|
|
4,446 |
|
5.66 |
|
|
|
94,067 |
|
|
1,507 |
|
6.43 |
|
Long-term debt |
|
23,870 |
|
|
262 |
|
4.41 |
|
|
|
40,571 |
|
|
533 |
|
5.28 |
|
|
|
54,347 |
|
|
194 |
|
1.43 |
|
Subordinated debt and trust preferred securities |
|
46,122 |
|
|
424 |
|
3.70 |
|
|
|
46,275 |
|
|
424 |
|
3.69 |
|
|
|
47,782 |
|
|
507 |
|
4.26 |
|
Total Interest-bearing Liabilities |
|
3,985,003 |
|
|
32,473 |
|
3.28 |
|
|
|
3,933,829 |
|
|
31,735 |
|
3.24 |
|
|
|
3,443,661 |
|
|
20,135 |
|
2.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing Demand |
|
778,380 |
|
|
|
|
|
|
781,136 |
|
|
|
|
|
|
810,140 |
|
|
|
|
||||||
Other Liabilities |
|
61,839 |
|
|
|
|
|
|
58,714 |
|
|
|
|
|
|
69,451 |
|
|
|
|
||||||
Shareholders' Equity |
|
553,675 |
|
|
|
|
|
|
546,001 |
|
|
|
|
|
|
504,535 |
|
|
|
|
||||||
Total Liabilities & Shareholders' Equity |
$ |
5,378,897 |
|
|
|
|
|
$ |
5,319,680 |
|
|
|
|
|
$ |
4,827,787 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Interest Income |
|
|
$ |
38,766 |
|
|
|
|
|
$ |
36,456 |
|
|
|
|
|
$ |
36,444 |
|
|
||||||
Taxable Equivalent Adjustment (1) |
|
|
|
253 |
|
|
|
|
|
|
260 |
|
|
|
|
|
|
202 |
|
|
||||||
Net Interest Income (taxable equivalent basis) |
|
|
$ |
39,019 |
|
|
|
|
|
$ |
36,716 |
|
|
|
|
|
$ |
36,646 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Yield on Earning Assets |
|
|
|
|
5.69 |
% |
|
|
|
|
|
5.51 |
% |
|
|
|
|
|
5.08 |
% |
||||||
Rate on Supporting Liabilities |
|
|
|
|
3.28 |
|
|
|
|
|
|
3.24 |
|
|
|
|
|
|
2.35 |
|
||||||
Average Interest Spread |
|
|
|
|
2.42 |
|
|
|
|
|
|
2.26 |
|
|
|
|
|
|
2.74 |
|
||||||
Net Interest Margin |
|
|
|
|
3.12 |
|
|
|
|
|
|
2.97 |
|
|
|
|
|
|
3.29 |
|||||||
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance. |
||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited):
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Credit Losses on Loans: |
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance |
$ |
33,524 |
|
|
$ |
34,187 |
|
|
$ |
34,004 |
|
|
$ |
32,588 |
|
|
$ |
31,265 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase credit deteriorated loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
336 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans Charged off |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
(56 |
) |
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
(109 |
) |
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential mortgage |
|
(2 |
) |
|
|
(28 |
) |
|
|
(9 |
) |
|
|
— |
|
|
|
— |
|
Consumer |
|
(4 |
) |
|
|
(22 |
) |
|
|
(17 |
) |
|
|
(32 |
) |
|
|
(65 |
) |
Total loans charged off |
|
(62 |
) |
|
|
(50 |
) |
|
|
(45 |
) |
|
|
(32 |
) |
|
|
(174 |
) |
Recoveries of loans previously charged off |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential mortgage |
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
Consumer |
|
11 |
|
|
|
6 |
|
|
|
7 |
|
|
|
14 |
|
|
|
4 |
|
Total recoveries |
|
44 |
|
|
|
6 |
|
|
|
7 |
|
|
|
21 |
|
|
|
4 |
|
Balance before provision |
|
33,506 |
|
|
|
34,143 |
|
|
|
33,966 |
|
|
|
32,577 |
|
|
|
31,431 |
|
Provision for credit losses - loans |
|
1,782 |
|
|
|
(619 |
) |
|
|
221 |
|
|
|
1,427 |
|
|
|
1,157 |
|
Balance, end of quarter |
$ |
35,288 |
|
|
$ |
33,524 |
|
|
$ |
34,187 |
|
|
$ |
34,004 |
|
|
$ |
32,588 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming loans |
|
9,999 |
|
|
|
10,389 |
|
|
|
14,216 |
|
|
|
13,458 |
|
|
|
15,846 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreclosed real estate |
|
441 |
|
|
|
5,110 |
|
|
|
293 |
|
|
|
905 |
|
|
|
489 |
|
Total nonperforming assets |
|
10,440 |
|
|
|
15,499 |
|
|
|
14,509 |
|
|
|
14,363 |
|
|
|
16,335 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing loans 90 days or more past due |
|
— |
|
|
|
25 |
|
|
|
— |
|
|
|
12 |
|
|
|
9 |
|
Total risk elements |
$ |
10,440 |
|
|
$ |
15,524 |
|
|
$ |
14,509 |
|
|
$ |
14,375 |
|
|
$ |
16,344 |
|
RECONCILIATION OF NON-GAAP MEASURES (Unaudited)
Explanatory note: This press release contains financial information determined by methods other than in accordance with
Tangible Book Value Per Share
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders' Equity |
$ |
559,686 |
|
$ |
550,968 |
|
$ |
542,350 |
|
$ |
528,711 |
|
$ |
525,888 |
Less: |
|
127,031 |
|
|
127,031 |
|
|
127,031 |
|
|
127,031 |
|
|
127,031 |
Less: Core Deposit and Other Intangibles |
|
5,626 |
|
|
6,051 |
|
|
6,479 |
|
|
6,970 |
|
|
7,453 |
Tangible Equity |
$ |
427,029 |
|
$ |
417,886 |
|
$ |
408,840 |
|
$ |
394,710 |
|
$ |
391,404 |
|
|
|
|
|
|
|
|
|
|
|||||
Common Shares Outstanding |
|
16,580,595 |
|
|
16,565,637 |
|
|
16,573,707 |
|
|
16,580,347 |
|
|
16,567,578 |
|
|
|
|
|
|
|
|
|
|
|||||
Tangible Book Value per Share |
$ |
25.75 |
|
$ |
25.23 |
|
$ |
24.67 |
|
$ |
23.81 |
|
$ |
23.62 |
Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses
|
Three Months Ended |
|||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Net Income Available to Common Shareholders |
$ |
11,771 |
|
$ |
12,133 |
|
$ |
12,098 |
|
$ |
9,236 |
|
$ |
4,836 |
Less: BOLI Death Benefit Income |
|
487 |
|
|
1,460 |
|
|
— |
|
|
— |
|
|
— |
Plus: Merger and Acquisition Expenses |
|
— |
|
|
— |
|
|
— |
|
|
352 |
|
|
7,944 |
Less: Tax Effect of Merger and Acquisition Expenses |
|
— |
|
|
— |
|
|
— |
|
|
74 |
|
|
1,668 |
Net Income Excluding Non-Recurring Income and Expenses |
$ |
11,284 |
|
$ |
10,673 |
|
$ |
12,098 |
|
$ |
9,514 |
|
$ |
11,112 |
|
|
|
|
|
|
|
|
|
|
|||||
Weighted Average Shares Outstanding |
|
16,576,283 |
|
|
16,567,902 |
|
|
16,574,199 |
|
|
16,571,825 |
|
|
16,235,106 |
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses |
$ |
0.68 |
|
$ |
0.64 |
|
$ |
0.73 |
|
$ |
0.57 |
|
$ |
0.68 |
Return on Average Tangible Common Equity
|
Three Months Ended |
||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available to common shareholders |
$ |
11,771 |
|
|
$ |
12,133 |
|
|
$ |
12,098 |
|
|
$ |
9,236 |
|
|
$ |
4,836 |
|
Plus: Intangible amortization, net of tax |
|
336 |
|
|
|
338 |
|
|
|
388 |
|
|
|
382 |
|
|
|
364 |
|
|
$ |
12,107 |
|
|
$ |
12,471 |
|
|
$ |
12,486 |
|
|
$ |
9,618 |
|
|
$ |
5,200 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shareholders' equity |
$ |
553,675 |
|
|
$ |
546,001 |
|
|
$ |
537,219 |
|
|
$ |
529,067 |
|
|
$ |
504,535 |
|
Less: Average goodwill |
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
127,031 |
|
|
|
120,631 |
|
Less: Average core deposit and other intangibles |
|
5,833 |
|
|
|
6,259 |
|
|
|
6,716 |
|
|
|
7,210 |
|
|
|
7,016 |
|
Average tangible shareholders' equity |
$ |
420,811 |
|
|
$ |
412,711 |
|
|
$ |
403,472 |
|
|
$ |
394,826 |
|
|
$ |
376,888 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average tangible common equity |
|
11.57 |
% |
|
|
12.15 |
% |
|
|
12.31 |
% |
|
|
9.69 |
% |
|
|
5.55 |
% |
Efficiency Ratio
|
Three Months Ended |
||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense |
$ |
28,224 |
|
|
$ |
28,520 |
|
|
$ |
28,389 |
|
|
$ |
29,229 |
|
|
$ |
35,128 |
|
Less: Merger and acquisition expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
352 |
|
|
|
7,944 |
|
Less: Intangible amortization |
|
425 |
|
|
|
428 |
|
|
|
491 |
|
|
|
484 |
|
|
|
461 |
|
Less: Loss (Gain) on sale or write-down of foreclosed assets, net |
|
42 |
|
|
|
— |
|
|
|
— |
|
|
|
(18 |
) |
|
|
(126 |
) |
Efficiency ratio numerator |
$ |
27,757 |
|
|
$ |
28,092 |
|
|
$ |
27,898 |
|
|
$ |
28,411 |
|
|
$ |
26,849 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
38,766 |
|
|
|
36,456 |
|
|
|
37,000 |
|
|
|
37,480 |
|
|
|
36,444 |
|
Noninterest income |
|
5,329 |
|
|
|
5,837 |
|
|
|
5,117 |
|
|
|
5,346 |
|
|
|
5,220 |
|
Less: BOLI Death Benefit |
|
487 |
|
|
|
1,460 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Efficiency ratio denominator |
$ |
43,608 |
|
|
$ |
40,833 |
|
|
$ |
42,117 |
|
|
$ |
42,826 |
|
|
$ |
41,664 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio |
|
63.65 |
% |
|
|
68.80 |
% |
|
|
66.24 |
% |
|
|
66.34 |
% |
|
|
64.44 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724341994/en/
Chair, President & Chief Executive Officer
Chief Financial Officer
1-866-642-7736
Source: