EX-99.2 3 cznc-20220421xex99d2.htm EX-99.2

EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

Graphic

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

    

1ST

    

1ST

    

    

    

    

 

QUARTER

QUARTER

 

2022

2021

 

(Current)

(Prior Year)

$ Incr. (Decr.)

% Incr. (Decr.)

 

Interest and Dividend Income

$

21,773

$

21,754

$

19

 

0.09

%

Interest Expense

 

1,441

 

1,671

 

(230)

 

(13.76)

%

Net Interest Income

 

20,332

 

20,083

 

249

 

1.24

%

Provision for Loan Losses

 

891

 

259

 

632

 

244.02

%

Net Interest Income After Provision for Loan Losses

 

19,441

 

19,824

 

(383)

 

(1.93)

%

Noninterest Income

 

5,821

 

6,782

 

(961)

 

(14.17)

%

Net Gains on Available-for-sale Debt Securities

 

2

 

0

 

2

 

%

Noninterest Expense

 

16,886

 

15,709

 

1,177

 

7.49

%

Income Before Income Tax Provision

 

8,378

 

10,897

 

(2,519)

 

(23.12)

%

Income Tax Provision

 

1,483

 

2,110

 

(627)

 

(29.72)

%

Net Income

$

6,895

$

8,787

$

(1,892)

 

(21.53)

%

Net Income Attributable to Common Shares (1)

$

6,835

$

8,722

$

(1,887)

 

(21.63)

%

PER COMMON SHARE DATA:

 

  

 

  

 

  

 

  

Net Income - Basic

$

0.44

$

0.55

$

(0.11)

 

(20.00)

%

Net Income - Diluted

$

0.44

$

0.55

$

(0.11)

 

(20.00)

%

Dividend Per Share

$

0.28

$

0.27

$

0.01

 

3.70

%

Number of Shares Used in Computation - Basic

 

15,645,474

 

15,850,217

 

  

 

  

Number of Shares Used in Computation - Diluted

 

15,649,175

 

15,854,451

 

  

 

  

(1)

Basic and diluted net income per common share are determined based on net income less earnings allocated to nonvested restricted shares with nonforfeitable dividends.

1


CONDENSED, CONSOLIDATED BALANCE SHEET DATA

(Dollars In Thousands)

(Unaudited)

March 31, 

March 31, 

 

    

2022

    

2021

    

$ Incr. (Decr.)

    

% Incr. (Decr.)

 

ASSETS

Cash & Due from Banks

$

114,346

$

207,145

$

(92,799)

 

(44.80)

%

Available-for-sale Debt Securities

 

532,913

 

366,376

 

166,537

 

45.46

%

Loans, Net

 

1,523,919

 

1,602,926

 

(79,007)

 

(4.93)

%

Bank-Owned Life Insurance

30,805

30,246

559

1.85

%

Bank Premises and Equipment, Net

21,169

20,740

429

2.07

%

Intangible Assets

 

55,711

 

56,222

 

(511)

 

(0.91)

%

Other Assets

 

51,508

 

49,940

 

1,568

 

3.14

%

TOTAL ASSETS

$

2,330,371

$

2,333,595

$

(3,224)

 

(0.14)

%

LIABILITIES

 

  

 

  

 

  

 

  

Deposits

$

1,960,952

$

1,923,925

$

37,027

 

1.92

%

Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements

 

22,938

 

60,230

 

(37,292)

 

(61.92)

%

Senior Notes, Net

14,717

0

14,717

 

%

Subordinated Debt, Net

 

33,031

 

16,534

 

16,497

 

99.78

%

Other Liabilities

 

22,525

 

32,850

 

(10,325)

 

(31.43)

%

TOTAL LIABILITIES

 

2,054,163

 

2,033,539

 

20,624

 

1.01

%

STOCKHOLDERS' EQUITY

 

  

 

  

 

  

 

  

Common Stockholders' Equity, Excluding Accumulated

 

  

 

  

 

  

 

  

Other Comprehensive (Loss) Income

 

296,386

 

293,097

 

3,289

 

1.12

%

Accumulated Other Comprehensive (Loss) Income:

 

  

 

  

 

  

 

  

Net Unrealized (Losses) Gains on Available-for-sale Debt Securities

 

(20,492)

 

6,847

 

(27,339)

 

(399.28)

%

Defined Benefit Plans

 

314

 

112

 

202

 

180.36

%

TOTAL STOCKHOLDERS' EQUITY

 

276,208

 

300,056

 

(23,848)

 

(7.95)

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

2,330,371

$

2,333,595

$

(3,224)

 

(0.14)

%

2


CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

    

AS OF OR FOR THE

    

 

THREE MONTHS ENDED

%

 

March 31, 

INCREASE

 

    

2022

    

2021

    

(DECREASE)

 

EARNINGS PERFORMANCE

 

  

 

  

 

  

Net Income

$

6,895

$

8,787

 

(21.53)

%

Return on Average Assets (Annualized)

 

1.19

%  

 

1.57

%  

(24.20)

%

Return on Average Equity (Annualized)

 

9.37

%  

 

11.72

%  

(20.05)

%

BALANCE SHEET HIGHLIGHTS

 

  

 

  

 

  

Total Assets

$

2,330,371

$

2,333,595

 

(0.14)

%

Available-for-Sale Debt Securities

 

532,913

 

366,376

 

45.46

%

Loans, Net

 

1,523,919

 

1,602,926

 

(4.93)

%

Allowance for Loan Losses

 

14,271

 

11,661

 

22.38

%

Deposits

 

1,960,952

 

1,923,925

 

1.92

%

OFF-BALANCE SHEET

 

  

 

  

 

  

Outstanding Balance of Mortgage Loans Sold with Servicing Retained

$

338,482

$

295,504

 

14.54

%

Trust Assets Under Management

 

1,191,595

 

1,142,573

 

4.29

%

STOCKHOLDERS' VALUE (PER COMMON SHARE)

 

  

 

  

 

  

Net Income - Basic

$

0.44

$

0.55

 

(20.00)

%

Net Income - Diluted

$

0.44

$

0.55

 

(20.00)

%

Dividends

$

0.28

$

0.27

 

3.70

%

Common Book Value

$

17.57

$

18.75

 

(6.29)

%

Tangible Common Book Value (a)

$

14.03

$

15.24

 

(7.94)

%

Market Value (Last Trade)

$

24.38

$

23.78

 

2.52

%

Market Value / Common Book Value

 

138.76

%  

 

126.83

%  

9.41

%

Market Value / Tangible Common Book Value

 

173.77

%  

 

156.04

%  

11.36

%

Price Earnings Multiple (Annualized)

 

13.85

 

10.81

 

28.12

%

Dividend Yield (Annualized)

 

4.59

%  

 

4.54

%  

1.10

%

Common Shares Outstanding, End of Period

 

15,718,723

 

15,999,814

 

(1.76)

%

3


CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

AS OF OR FOR THE

 

THREE MONTHS ENDED

%

 

March 31, 

INCREASE

 

    

2022

    

2021

    

(DECREASE)

 

SAFETY AND SOUNDNESS

Tangible Common Equity / Tangible Assets (a)

 

9.69

%  

10.71

%  

(9.52)

%

Nonperforming Assets / Total Assets

 

0.81

%  

1.07

%  

(24.30)

%

Allowance for Loan Losses / Total Loans

 

0.93

%  

0.72

%  

29.17

%

Total Risk Based Capital Ratio (b)

 

18.28

%  

18.03

%  

1.39

%

Tier 1 Risk Based Capital Ratio (b)

 

15.25

%  

16.08

%  

(5.16)

%

Common Equity Tier 1 Risk Based Capital Ratio (b)

 

15.25

%  

16.08

%  

(5.16)

%

Leverage Ratio (b)

 

10.59

%  

10.88

%  

(2.67)

%

AVERAGE BALANCES

Average Assets

$

2,325,486

$

2,242,686

 

3.69

%

Average Equity

$

294,254

$

299,889

 

(1.88)

%

EFFICIENCY RATIO (c)

Net Interest Income on a Fully Taxable-Equivalent

Basis (c)

$

20,634

$

20,356

 

1.37

%

Noninterest Income

 

5,821

 

6,782

 

(14.17)

%

Total (1)

$

26,455

$

27,138

 

(2.52)

%

Noninterest Expense (2)

$

16,886

$

15,709

 

7.49

%

Efficiency Ratio = (2)/(1)

 

63.83

%  

 

57.89

%  

10.26

%

(a)Tangible common book value per share and tangible common equity as a percentage of tangible assets are non-U.S. GAAP ratios.  Management believes this non-GAAP information is helpful in evaluating the strength of the Corporation's capital and in providing an alternative, conservative valuation of the Corporation's net worth.  The ratios shown above are based on the following calculations of tangible assets and tangible common equity:

Total Assets

    

$

2,330,371

    

$

2,333,595

Less: Intangible Assets, Primarily Goodwill

 

(55,711)

 

(56,222)

Tangible Assets

$

2,274,660

$

2,277,373

Total Stockholders' Equity

$

276,208

$

300,056

Less: Intangible Assets, Primarily Goodwill

 

(55,711)

 

(56,222)

Tangible Common Equity (3)

$

220,497

$

243,834

Common Shares Outstanding, End of Period (4)

 

15,718,723

 

15,999,814

Tangible Common Book Value per Share = (3)/(4)

$

14.03

$

15.24

(b)Capital ratios for the most recent period are estimated.

(c)The efficiency ratio is a non-GAAP ratio that is calculated as shown above.  For purposes of calculating the efficiency ratio, net interest income on a fully taxable-equivalent basis includes amounts of interest income on tax-exempt securities and loans that have been increased to a fully taxable-equivalent basis, using the Corporation's marginal federal income tax rate of 21%.

4


QUARTERLY CONDENSED, CONSOLIDATED

INCOME STATEMENT INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

    

For the Three Months Ended :

March 31, 

    

December 31,

    

September 30, 

    

June 30, 

    

March 31, 

2022

2021

2021

2021

2021

Interest income

$

21,773

$

21,246

$

21,073

$

20,428

$

21,754

Interest expense

 

1,441

 

1,530

 

1,614

 

1,747

 

1,671

Net interest income

 

20,332

 

19,716

 

19,459

 

18,681

 

20,083

Provision for loan losses

 

891

 

1,128

 

1,530

 

744

 

259

Net interest income after provision for loan losses

 

19,441

 

18,588

 

17,929

 

17,937

 

19,824

Noninterest income

 

5,821

 

6,416

 

6,359

 

6,300

 

6,782

Net gains (losses) on securities

 

2

 

(1)

 

23

 

2

 

0

Noninterest expense

 

16,886

 

16,018

 

15,346

 

15,399

 

15,709

Income before income tax provision

 

8,378

 

8,985

 

8,965

 

8,840

 

10,897

Income tax provision

 

1,483

 

1,677

 

1,566

 

1,780

 

2,110

Net income

$

6,895

$

7,308

$

7,399

$

7,060

$

8,787

Net income attributable to common shares

$

6,835

$

7,256

$

7,336

$

6,999

$

8,722

Basic earnings per common share

$

0.44

$

0.46

$

0.47

$

0.44

$

0.55

Diluted earnings per common share

$

0.44

$

0.46

$

0.47

$

0.44

$

0.55

5


QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)

    

As of:

    

    

    

    

March 31,

    

December 31,

    

September 30,

    

June 30,

    

March 31,

2022

2021

2021

2021

2021

ASSETS

 

  

 

  

 

  

 

  

 

  

Cash & Due from Banks

$

114,346

$

104,948

$

198,995

$

208,860

$

207,145

Available-for-Sale Debt Securities

 

532,913

 

517,679

 

437,857

 

391,881

 

366,376

Loans, Net

 

1,523,919

 

1,551,312

 

1,563,008

 

1,585,481

 

1,602,926

Bank-Owned Life Insurance

30,805

30,670

30,530

30,391

30,247

Bank Premises and Equipment, Net

21,169

20,683

20,526

20,620

20,740

Intangible Assets

 

55,711

 

55,821

 

55,955

 

56,088

 

56,222

Other Assets

 

51,508

 

46,535

 

48,025

 

45,742

 

49,939

TOTAL ASSETS

$

2,330,371

$

2,327,648

$

2,354,896

$

2,339,063

$

2,333,595

LIABILITIES

 

  

 

  

 

  

 

  

 

  

Deposits

$

1,960,952

$

1,925,060

$

1,940,141

$

1,916,809

$

1,923,925

Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements

 

22,938

 

29,845

 

40,555

 

46,450

 

60,230

Senior Notes, Net

14,717

14,701

14,685

14,670

0

Subordinated Debt, Net

 

33,031

 

33,009

 

32,988

 

32,967

 

16,534

Other Liabilities

 

22,525

 

23,628

 

27,125

 

24,034

 

32,850

TOTAL LIABILITIES

 

2,054,163

 

2,026,243

 

2,055,494

 

2,034,930

 

2,033,539

STOCKHOLDERS' EQUITY

 

  

 

  

 

  

 

  

 

  

Common Stockholders' Equity, Excluding Accumulated Other Comprehensive (Loss) Income

 

296,386

 

296,379

 

292,997

 

294,857

 

293,097

Accumulated Other Comprehensive (Loss) Income:

 

  

 

  

 

  

 

  

 

  

Net Unrealized (Losses) Gains on Available-for-sale Securities

 

(20,492)

 

4,809

 

6,300

 

9,167

 

6,847

Defined Benefit Plans

 

314

 

217

 

105

 

109

 

112

TOTAL STOCKHOLDERS' EQUITY

 

276,208

 

301,405

 

299,402

 

304,133

 

300,056

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

2,330,371

$

2,327,648

$

2,354,896

$

2,339,063

$

2,333,595

6


AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)

    

March 31, 2022

December 31, 2021

Amortized

Fair

Amortized

Fair

    

Cost

    

Value

    

Cost

    

Value

Obligations of the U.S. Treasury

$

38,152

$

36,494

$

25,058

$

24,912

Obligations of U.S. Government agencies

24,455

23,408

23,936

24,091

Bank holding company debt securities

24,942

24,043

18,000

17,987

Obligations of states and political subdivisions:

 

  

 

  

 

  

 

  

Tax-exempt

 

149,140

 

143,633

 

143,427

 

148,028

Taxable

 

73,732

 

69,629

 

72,182

 

72,765

Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:

 

  

 

  

 

  

 

  

Residential pass-through securities

 

112,122

 

106,568

 

98,048

 

98,181

Residential collateralized mortgage obligations

 

45,628

 

43,868

 

44,015

 

44,247

Commercial mortgage-backed securities

 

90,682

 

85,270

 

86,926

 

87,468

Total Available-for-Sale Debt Securities

$

558,853

$

532,913

$

511,592

$

517,679

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)

    

March 31, 

    

December 31, 

    

March 31, 

2022

2021

2021

Commercial:

 

  

 

  

 

  

Commercial loans secured by real estate

$

585,677

$

569,840

$

524,886

Commercial and industrial

 

159,793

 

159,073

 

155,828

Paycheck Protection Program - 1st Draw

 

887

 

1,356

 

71,708

Paycheck Protection Program - 2nd Draw

11,490

25,508

66,127

Political subdivisions

 

81,975

 

81,301

 

49,860

Commercial construction and land

 

37,258

 

60,579

 

45,307

Loans secured by farmland

 

12,507

 

11,121

 

10,897

Multi-family (5 or more) residential

 

53,141

 

50,089

 

54,049

Agricultural loans

 

2,588

 

2,351

 

2,460

Other commercial loans

 

14,827

 

17,153

 

16,315

Total commercial

 

960,143

 

978,371

 

997,437

Residential mortgage:

 

  

 

  

 

  

Residential mortgage loans - first liens

481,119

483,629

518,392

Residential mortgage loans - junior liens

 

22,572

 

23,314

 

25,402

Home equity lines of credit

 

39,649

 

39,252

 

39,083

1-4 Family residential construction

 

16,945

 

23,151

 

18,376

Total residential mortgage

 

560,285

 

569,346

 

601,253

Consumer

 

17,762

 

17,132

 

15,897

Total

 

1,538,190

 

1,564,849

 

1,614,587

Less: allowance for loan losses

 

(14,271)

 

(13,537)

 

(11,661)

Loans, net

$

1,523,919

$

1,551,312

$

1,602,926

7


ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(In Thousands)

    

3 Months

    

3 Months

    

3 Months

    

Year

Ended

Ended

Ended

Ended

March 31, 

December 31,

March 31, 

December 31,

2022

2021

2021

2021

Balance, beginning of period

$

13,537

$

12,700

$

11,385

$

11,385

Charge-offs

 

(180)

 

(297)

 

(11)

 

(1,575)

Recoveries

 

23

 

6

 

28

 

66

Net (charge-offs) recoveries

 

(157)

 

(291)

 

17

 

(1,509)

Provision for loan losses

 

891

 

1,128

 

259

 

3,661

Balance, end of period

$

14,271

$

13,537

$

11,661

$

13,537

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS

AND TROUBLED DEBT RESTRUCTURINGS (TDRs)

(Dollars In Thousands)

    

March 31, 

    

December 31,

    

March 31,

    

2022

2021

2021

Impaired loans with a valuation allowance

$

6,528

$

6,540

$

9,354

Impaired loans without a valuation allowance

1,494

2,636

2,023

Purchased credit impaired loans

 

3,983

 

6,558

 

6,781

Total impaired loans

$

12,005

$

15,734

$

18,158

Total loans past due 30-89 days and still accruing

$

3,868

$

5,106

$

6,777

Nonperforming assets:

 

  

 

  

 

  

Purchased credit impaired loans

$

3,983

$

6,558

$

6,781

Other nonaccrual loans

10,962

12,441

15,335

Total nonaccrual loans

14,945

18,999

22,116

Total loans past due 90 days or more and still accruing

 

3,429

 

2,219

 

1,285

Total nonperforming loans

 

18,374

 

21,218

 

23,401

Foreclosed assets held for sale (real estate)

 

531

 

684

 

1,472

Total nonperforming assets

$

18,905

$

21,902

$

24,873

Loans subject to troubled debt restructurings (TDRs):

 

  

 

  

 

  

Performing

$

279

$

288

$

302

Nonperforming

 

3,954

 

5,517

 

6,883

Total TDRs

$

4,233

$

5,805

$

7,185

Total nonperforming loans as a % of total loans

 

1.19

%  

 

1.36

%  

 

1.45

%  

Total nonperforming assets as a % of assets

 

0.81

%  

 

0.94

%  

 

1.07

%  

Allowance for loan losses as a % of total loans

 

0.93

%  

 

0.87

%  

 

0.72

%  

Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (a)

1.11

%  

1.08

%  

1.04

%  

Allowance for loan losses as a % of nonperforming loans

 

77.67

%  

 

63.80

%  

 

49.83

%  

(a) Credit adjustment on purchased non-impaired loans at end of period

$

2,783

$

3,335

$

5,182

Allowance for loan losses

14,271

13,537

11,661

Total credit adjustment on purchased non-impaired loans at end of period and allowance for loan losses (1)

$

17,054

$

16,872

$

16,843

Total loans receivable

$

1,538,190

$

1,564,849

$

1,614,587

Credit adjustment on purchased non-impaired loans at end of period

 

2,783

 

3,335

 

5,182

Total (2)

$

1,540,973

$

1,568,184

$

1,619,769

Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (1)/(2)

 

1.11

%  

 

1.08

%  

 

1.04

%  

8


ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS

(In Thousands)

Three Months Ended

March 31, 

December 31,

March 31, 

2022

2021

2021

Market Rate Adjustment

 

  

  

 

  

Adjustments to gross amortized cost of loans at beginning of period

$

(637)

$

(373)

$

718

Amortization recognized in interest income

(248)

(264)

(366)

Adjustments to gross amortized cost of loans at end of period

$

(885)

$

(637)

$

352

Credit Adjustment on Non-impaired Loans

Adjustments to gross amortized cost of loans at beginning of period

$

(3,335)

$

(3,836)

$

(5,979)

Accretion recognized in interest income

 

553

 

501

 

797

Adjustments to gross amortized cost of loans at end of period

$

(2,782)

$

(3,335)

$

(5,182)

PURCHASED CREDIT IMPAIRED (PCI) LOANS

(In Thousands)

March 31, 

December 31,

March 31, 

2022

2021

2021

Outstanding balance

$

5,966

$

9,802

$

10,256

Carrying amount

3,983

6,558

6,781

9


COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)

    

Three Months Ended

March 31, 

December 31,

March 31, 

    

2022

    

2021

    

2021

INTEREST INCOME

Interest-bearing due from banks

$

67

$

88

$

50

Available-for-sale debt securities:

 

 

 

Taxable

 

1,969

 

1,510

 

1,113

Tax-exempt

 

905

 

890

 

801

Total available-for-sale debt securities

 

2,874

 

2,400

 

1,914

Loans receivable:

 

Taxable

 

17,974

 

16,810

 

17,493

Paycheck Protection Program -1st Draw

38

187

1,812

Paycheck Protection Program - 2nd Draw

537

1,457

186

Tax-exempt

573

593

553

Total loans receivable

19,122

19,047

20,044

Other earning assets

12

13

19

Total Interest Income

22,075

21,548

22,027

INTEREST EXPENSE

Interest-bearing deposits:

Interest checking

194

211

221

Money market

262

261

306

Savings

61

61

55

Time deposits

393

447

696

Total interest-bearing deposits

910

980

1,278

Borrowed funds:

Short-term

1

1

15

Long-term - FHLB advances

49

69

134

Senior notes, net

118

118

0

Subordinated debt, net

363

362

244

Total borrowed funds

531

550

393

Total Interest Expense

1,441

1,530

1,671

Net Interest Income

$

20,634

$

20,018

$

20,356

Note: Interest income from tax-exempt securities and loans has been adjusted to a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

10


ANALYSIS OF AVERAGE DAILY BALANCES AND RATES

(Dollars in Thousands)

    

3 Months

    

    

3 Months

    

    

3 Months

    

 

Ended

Rate of

Ended

Rate of

Ended

Rate of

 

3/31/2022

Return/

12/31/2021

Return/

3/31/2021

Return/

 

Average

Cost of

Average

Cost of

Average

Cost of

 

Balance

Funds %

Balance

Funds %

Balance

Funds %

EARNING ASSETS

 

  

 

  

 

  

 

  

 

  

 

  

Interest-bearing due from banks

$

84,115

 

0.32

%  

$

152,950

 

0.23

%  

$

92,619

 

0.22

%

Available-for-sale debt securities, at amortized cost:

 

  

 

  

 

  

 

  

 

 

Taxable

 

390,301

 

2.05

%  

 

325,682

 

1.84

%  

 

217,733

 

2.07

%

Tax-exempt

 

144,334

 

2.54

%  

 

140,776

 

2.51

%  

 

117,532

 

2.76

%

Total available-for-sale debt securities

 

534,635

 

2.18

%  

 

466,458

 

2.04

%  

 

335,265

 

2.32

%

Loans receivable:

 

  

 

  

 

  

 

  

 

 

  

Taxable

 

1,445,353

 

5.04

%  

 

1,431,174

 

4.66

%  

 

1,428,721

 

4.97

%

Paycheck Protection Program - 1st Draw

 

1,049

 

14.69

%  

 

2,702

 

27.46

%  

 

104,367

 

7.04

%

Paycheck Protection Program - 2nd Draw

17,800

12.24

%  

37,320

15.49

%  

34,197

2.21

%

Tax-exempt

 

83,659

 

2.78

%  

 

83,197

 

2.83

%  

 

67,301

 

3.33

%

Total loans receivable

 

1,547,861

 

5.01

%  

 

1,554,393

 

4.86

%  

 

1,634,586

 

4.97

%

Other earning assets

 

1,983

 

2.45

%  

 

1,953

 

2.64

%  

 

2,851

 

2.70

%

Total Earning Assets

 

2,168,594

 

4.13

%  

 

2,175,754

 

3.93

%  

 

2,065,321

 

4.33

%

Cash

 

20,703

 

  

 

22,850

 

  

 

23,796

 

  

Unrealized (loss) gain on securities

 

(2,508)

 

  

 

7,249

 

  

 

12,890

 

  

Allowance for loan losses

 

(13,783)

 

  

 

(12,980)

 

  

 

(11,739)

 

  

Bank-owned life insurance

30,720

30,587

30,154

Bank premises and equipment

 

21,043

 

  

 

20,678

 

  

 

21,348

 

  

Intangible assets

 

55,765

 

  

 

55,887

 

  

 

56,288

 

  

Other assets

 

44,952

 

  

 

45,035

 

  

 

44,628

 

  

Total Assets

$

2,325,486

 

  

$

2,345,060

 

  

$

2,242,686

 

  

INTEREST-BEARING LIABILITIES

 

  

 

  

 

  

 

  

 

  

 

  

Interest-bearing deposits:

 

  

 

  

 

  

 

  

 

  

 

  

Interest checking

$

419,130

 

0.19

%  

$

428,154

 

0.20

%  

$

355,993

 

0.25

%

Money market

 

456,904

 

0.23

%  

 

446,930

 

0.23

%  

 

406,841

 

0.31

%

Savings

 

249,165

 

0.10

%  

 

241,352

 

0.10

%  

 

213,437

 

0.10

%

Time deposits

 

277,405

 

0.57

%  

 

292,973

 

0.61

%  

 

370,555

 

0.76

%

Total interest-bearing deposits

 

1,402,604

 

0.26

%  

 

1,409,409

 

0.28

%  

 

1,346,826

 

0.38

%

Borrowed funds:

 

  

 

 

  

 

 

  

 

  

Short-term

 

1,746

 

0.23

%  

 

2,177

 

0.18

%  

 

14,365

 

0.42

%

Long-term - FHLB advances

 

26,102

 

0.76

%  

 

35,608

 

0.77

%  

 

52,847

 

1.03

%

Senior notes, net

 

14,709

 

3.25

%  

 

14,690

 

3.19

%  

 

0

 

0.00

%

Subordinated debt, net

 

32,948

 

4.47

%  

 

32,918

 

4.36

%  

 

16,543

 

5.98

%

Total borrowed funds

 

75,505

 

2.85

%  

 

85,393

 

2.56

%  

 

83,755

 

1.90

%

Total Interest-bearing Liabilities

 

1,478,109

 

0.40

%  

 

1,494,802

 

0.41

%  

 

1,430,581

 

0.47

%

Demand deposits

 

529,077

 

  

 

523,817

 

  

 

484,286

 

  

Other liabilities

 

24,046

 

  

 

25,951

 

  

 

27,930

 

  

Total Liabilities

 

2,031,232

 

  

 

2,044,570

 

  

 

1,942,797

 

  

Stockholders' equity, excluding accumulated other comprehensive (loss) income

 

295,996

 

  

 

294,659

 

  

 

289,591

 

  

Accumulated other comprehensive (loss) income

 

(1,742)

 

  

 

5,831

 

  

 

10,298

 

  

Total Stockholders' Equity

 

294,254

 

  

 

300,490

 

  

 

299,889

 

  

Total Liabilities and Stockholders' Equity

$

2,325,486

 

  

$

2,345,060

 

  

$

2,242,686

 

  

Interest Rate Spread

 

3.73

%  

 

3.52

%  

 

  

 

3.86

%

Net Interest Income/Earning Assets

3.86

%  

3.65

%  

4.00

%

Total Deposits (Interest-bearing and Demand)

$

1,931,681

 

  

$

1,933,226

 

  

$

1,831,112

 

  

(1)Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2)

Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

(3)

Rates of return on earning assets and costs of funds have been presented on an annualized basis.

11


COMPARISON OF NONINTEREST INCOME

(In Thousands)

    

Three Months Ended

March 31, 

December 31,

March 31, 

    

2022

    

2021

    

2021

Trust revenue

$

1,786

$

1,980

$

1,626

Brokerage and insurance revenue

 

522

 

468

 

326

Service charges on deposit accounts

 

1,235

 

1,296

 

1,015

Interchange revenue from debit card transactions

 

963

 

1,001

 

881

Net gains from sales of loans

 

382

 

642

 

1,064

Loan servicing fees, net

 

210

 

147

 

248

Increase in cash surrender value of life insurance

 

135

 

139

 

150

Other noninterest income

 

588

 

743

 

1,472

Total noninterest income, excluding realized gains
on securities, net

$

5,821

$

6,416

$

6,782

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)

    

Three Months Ended

    

March 31, 

December 31,

March 31, 

2022

2021

2021

Salaries and employee benefits

$

10,607

$

9,782

$

8,895

Net occupancy and equipment expense

 

1,411

 

1,244

 

1,304

Data processing and telecommunications expenses

 

1,623

 

1,561

 

1,380

Automated teller machine and interchange expense

 

384

 

384

 

337

Pennsylvania shares tax

 

488

 

488

 

491

Professional fees

 

489

 

560

 

547

Other noninterest expense

 

1,884

 

1,999

 

2,755

Total noninterest expense

$

16,886

$

16,018

$

15,709

12