EX-99.1 2 d806092dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Civista Bancshares, Inc. Announces First Quarter 2024 Financial Results

Sandusky, Ohio, April 30, 2024 /PRNewswire/– Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) announced its unaudited financial results for the three months ending March 31, 2024.

First quarter highlights

 

  •  

Net income of $6.4 million, or $0.41 per diluted share, for the first quarter of 2024, compared to $12.9 million, or $0.82 per diluted share, for the first quarter of 2023.

 

  •  

Low cost of deposits of 214 basis points and total funding costs of 254 basis points for the quarter.

 

  •  

Based on the March 29, 2024 market close share price of $15.38, the $0.16 first quarter dividend is equivalent to an annualized yield of 4.16% and a dividend payout ratio of 42.11%.

“Although I was disappointed in our first quarter results, we knew there would be head winds as we exited the third-party payment tax refund business, and that we would not have the benefit of the $1.5 million one-time bonus from the prior year’s renegotiation of our debit brand agreement. In late 2023, we implemented changes in the way we process overdrafts which reduced service charge income. As a result of these three items, we had approximately $3.8 million of noninterest income to replace from the previous year,” said Dennis G. Shaffer, CEO and President of Civista.

Results of Operations:

For the three-month period ended March 31, 2024 and 2023

Net interest income decreased $4.2 million, or 13.0%, for the first quarter of 2024 compared to the same period of 2023, due to an increase in interest expense partially offset by an increase in interest income. Noninterest income also decreased, primarily due to the company’s decision to step away from our income tax refund business for 2024. 

Net interest margin decreased 77 basis points to 3.22% for the first quarter of 2024, compared to 3.99% for the same period a year ago.

The increase in interest income was due to increases in both yield and in asset volume. The 41 basis point increase in yield led to a $3.7 million increase in interest income, while the $239.3 million increase in average earning assets led to a $3.5 million increase in interest income. The increase in volume can be attributed to organic growth.

Interest expense increased $12.8 million, or 143.4%, for the first quarter of 2024, compared to the same period last year. The average rate paid on interest-bearing liabilities increased 140 basis points, which led to a $6.9 million increase in interest expense. Average interest-bearing liabilities increased $411.6 million, leading to a $4.5 million increase in interest expense. The increase in interest-bearing liabilities was primarily in time deposits. The increase in funding cost, as well as the shift in the funding mix, are driving the increase in interest. 

Average Balance Analysis

(Unaudited - Dollars in thousands)

 

     Three Months Ended March 31,  
     2024     2023  
     Average            Yield/     Average            Yield/  

Assets:

    balance     Interest      rate*     balance     Interest      rate*  

Interest-earning assets:

               

Loans**

    $ 2,880,031     $ 44,485        6.20 %    $ 2,649,901     $ 37,784        5.78 % 

Taxable securities

      350,815       2,934        3.00 %      374,851       2,834        2.77 % 

Non-taxable securities

      295,388       2,375        3.85 %      281,136       2,262        3.81 % 

Interest-bearing deposits in other banks

      26,318       334        5.09 %      7,397       45        2.47 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total interest-earning assets

    $ 3,552,552       50,128        5.64 %    $ 3,313,285       42,925        5.23 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Noninterest-earning assets:

               

Cash and due from financial institutions

      29,599            54,136       

Premises and equipment, net

      54,980            62,776       

Accrued interest receivable

      12,724            10,655       

Intangible assets

      134,872            135,554       

Bank owned life insurance

      61,456            53,630       

Other assets

      58,472            61,292       

Less allowance for credit losses

      (37,356 )           (30,454 )      
  

 

 

         

 

 

       

Total Assets

    $ 3,867,299          $ 3,660,874       
  

 

 

         

 

 

       

Liabilities and Shareholders’ Equity:

               

Interest-bearing liabilities:

               

Demand and savings

    $ 1,383,225     $ 3,986        1.16 %    $ 1,384,070     $ 1,084        0.32 % 

Time

      902,442       12,001        5.33 %      308,400       2,148        2.82 % 

Short-term FHLB advances

      328,687       4,515        5.51 %      372,226       4,258        4.64 % 

Long-term FHLB advances

      2,275       13        2.29 %      3,442       19        2.24 % 

Other borrowings

      —        —         0.00 %      116,200       1,643        5.73 % 

Subordinated debentures

      103,957       1,241        4.79 %      103,814       1,169        4.57 % 

Repurchase agreements

      —        —         0.00 %      20,823       3        0.06 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total interest-bearing liabilities

    $ 2,720,586       21,756        3.21 %    $ 2,308,975       10,324        1.81 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Noninterest-bearing deposits

      712,483            961,886       

Other liabilities

      63,778            48,854       

Shareholders’ equity

      370,452            341,159       
  

 

 

         

 

 

       

Total Liabilities and Shareholders’ Equity

    $ 3,867,299          $ 3,660,874       
  

 

 

         

 

 

       

Net interest income and interest rate spread

      $ 28,372        2.43 %      $ 32,601        3.42 % 

Net interest margin

           3.22 %           3.99 % 

 

*

Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $632 thousand and $601 thousand for the periods ended March 31, 2024 and 2023, respectively.

**

Average balance includes nonaccrual loans

***

Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $59.2 million in 2024 and by unrealized losses of $63.2 million in 2023. These adjustments were also made when calculating the yield on earning assets and the margin.

Provision for credit losses for the first quarter of 2024 was $2.0 million compared to $620 thousand for the first quarter of 2023. Provision for unfunded commitments for the first quarter of 2024 was ($50) thousand compared to $201 thousand for the first quarter of 2023. The reserve ratio as of March 31, 2024 was 1.34%, up from 1.30% at December 31, 2023.

For the first quarter of 2024, noninterest income totaled $8.5 million, a decrease of $2.6 million, or 23.2%, compared to the prior year’s first quarter.

Noninterest income

 

(unaudited - dollars in thousands)    Three months ended March 31,  
     2024      2023      $ change      % change  

Service charges

    $ 1,440      $ 1,773      $ (333 )       -18.8 % 

Net loss on sale of securities

      —         —         —         0.0 % 

Net gain (loss) on equity securities

      (141 )       (68 )       (73 )       -107.4 % 

Net gain on sale of loans

      863        631        232        36.8 % 

ATM/Interchange fees

      1,383        1,353        30        2.2 % 

Wealth management fees

      1,276        1,193        83        7.0 % 

Bank owned life insurance

      350        253        97        38.3 % 

Lease revenue and residual income

      1,674        2,046        (372 )       -18.2 % 

Tax refund processing fees

      —         1,900        (1,900 )       -100.0 % 

Swap fees

      57        61        (4 )       -6.6 % 

Other

      1,602        1,926        (324 )       -16.8 % 
  

 

 

     

 

 

     

 

 

     

Total noninterest income

    $ 8,504      $ 11,068      $ (2,564 )       -23.2 % 
  

 

 

     

 

 

     

 

 

     

Service charges decreased due to a $375 thousand decrease in overdraft fees. We have reduced our per instance charge and have eliminated charges for representment of items for payment. 

The net gain on sale of loans and leases increased by $232 thousand compared to the same period last year. The sale of mortgage loans generated a $423 thousand gain on the sale of $20.2 million, an increase in the gain of $191 thousand and a $10.9 million increase in 2024 volume, compared to 2023. CLF generated a $440 thousand gain on the sale of $12.6 million in commercial loans and leases, an increase in the gain of $41 thousand and a $1.4 million increase in 2024 volume, compared to 2023.

Lease revenue and residual income decreased $372 thousand due to a decrease in operating lease activity.

Tax refund processing fee income is now zero as we have exited our third-party payment processer that was in the tax refund processing business.

Other income decreased primarily as result of a $1.5 million nonrecurring fee collected in 2023 associated with the renewal of the company’s contract with MasterCard.

For the first quarter of 2024, noninterest expense totaled $27.7 million, an increase of $257 thousand, or 0.9%, compared to the prior year’s first quarter.

Noninterest expense

 

(unaudited - dollars in thousands)    Three months ended March 31,  
     2024      2023      $ change      % change  

Compensation expense

    $ 15,457      $ 15,105      $ 352        2.3 % 

Net occupancy and equipment

      3,903        4,120        (217 )       -5.3 % 

Contracted data processing

      545        520        25        4.8 % 

Taxes and assessments

      969        774        195        25.2 % 

Professional services

      1,149        1,555        (406 )       -26.1 % 

Amortization of intangible assets

      391        398        (7 )       -1.8 % 

ATM/Interchange expense

      625        580        45        7.8 % 

Marketing

      479        505        (26 )       -5.1 % 

Software maintenance expense

      1,189        878        311        35.4 % 

Other

      2,982        2,997        (15 )       -0.5 % 
  

 

 

     

 

 

     

 

 

     

Total noninterest expense

    $ 27,689      $ 27,432      $ 257        0.9 % 
  

 

 

     

 

 

     

 

 

     

Compensation expense increased primarily due to a $614 thousand increase in salary expense. Merit increases awarded in the second quarter of 2023. Employee insurance expense increased $222 thousand compared to the same period last year. Commission expense decreased $515 thousand compared to the same period last year.

The decrease in occupancy and equipment expense is primarily due to a decrease in equipment depreciation.

Taxes & assessments increased primarily due to an increase in the FDIC assessment rate charged.

Professional services decreased due to $400 thousand advisory fees for renegotiation of the company’s MasterCard contract paid in 2023.

The increase in Software maintenance expense is primarily due to expense of our digital banking platform.

The efficiency ratio was 73.8% for the quarter ended March 31, 2024 compared to 62.0% for the quarter ended March 31, 2023. The change in the efficiency ratio is primarily due to a decrease in net interest income and a decrease in noninterest income.

Civista’s effective income tax rate for the first quarter 2024 was 11.8% compared to 16.4% in 2023.

Balance Sheet

Total assets increased $18.8 million, or less than 1%, from December 31, 2023 to March 31, 2024, primarily due to an increase in the loan portfolio of $36.4 million, or 1.3%. The increase in loans was partially offset by a $10.1 million decrease in cash and a $10.8 million decrease in the securities portfolio.

End of period loan balances

 

(unaudited - dollars in thousands)       
     March 31,
2024		      December 31,
2023		      $Change      % Change  

Commercial and Agriculture

    $ 302,663      $ 304,793      $ (2,130 )       -0.7 % 

Commercial Real Estate:

            

Owner Occupied

      367,419        377,322        (9,903 )       -2.6 % 

Non-owner Occupied

      1,185,688        1,161,893        23,795        2.0 % 

Residential Real Estate

      676,800        659,841        16,959        2.6 % 

Real Estate Construction

      267,737        260,409        7,328        2.8 % 

Farm Real Estate

      24,908        24,771        137        0.6 % 

Lease financing receivable

      56,680        54,642        2,038        3.7 % 

Consumer and Other

      16,244        18,056        (1,812 )       -10.0 % 
  

 

 

     

 

 

     

 

 

     

Total Loans

    $ 2,898,139      $ 2,861,727      $ 36,412        1.3 % 
  

 

 

     

 

 

     

 

 

     

Loan and lease balances increased $36.4 million, or 1.3% since December 31, 2023. Growth was tempered in the first quarter with a diligent focus on rate and margin. Commercial Real Estate continued to grow due to consistent demand in the Non-owner Occupied category, especially in the multi-family area in the major Ohio metropolitan areas. Real Estate Construction has increased with consistent demand for more projects across the state of Ohio. The undrawn construction availability continues to be near all-time highs. Residential Real Estate has grown primarily due to more home construction loans and continued new production in our Community Reinvestment Act (“CRA”) product.

Deposits

Total deposits decreased $4.3 million, or less than 1.0%, from December 31, 2023 to March 31, 2024.

End of period deposit balances

 

(unaudited—dollars in thousands)       
     March 31,
2024		      December 31,
2023		      $ Change      % Change  

Noninterest-bearing demand

    $ 707,993      $ 771,699      $ (63,706 )       -8.3 % 

Interest-bearing demand

      434,692        449,449        (14,757 )       -3.3 % 

Savings and money market

      929,126        863,067        66,059        7.7 % 

Time deposits

      908,884        900,813        8,071        0.9 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Deposits

    $ 2,980,695      $ 2,985,028      $ (4,333 )       -0.1 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

The $63.7 million decrease in noninterest-bearing demand was primarily due to a $51.7 million decrease in noninterest-bearing business accounts and $19.5 million noninterest-bearing accounts related to the former tax refund processing program.

The $14.8 million decrease in interest-bearing demand deposits was primarily due to an $11.6 million decrease in interest-bearing personal accounts, a $7.5 million decrease in Jumbo NOW accounts and a $5.2 million decrease in interest-bearing business accounts, partially offset by a $13.6 million increase in interest-bearing public fund accounts.

The $66.1 million increase in savings and money market was primarily due to a $65.9 million increase in brokered money market accounts, a $9.5 million increase in business money market accounts, partially offset by a $6.4 million decrease in statement savings and a $3.1 million decrease in business savings accounts.

The increase in time certificates was primarily due to a $16.7 million increase in Jumbo time certificates, a $14.0 million increase in retail time certificates, partially offset by a $21.8 million decrease in brokered time deposits.

FHLB overnight advances totaled $368.5 million on March 31, 2024, up from $340.4 million on December 31, 2023. FHLB term advances totaled $2.2 million on March 31, 2024, down from $2.4 million on December 31, 2023.

Stock Repurchase Program

So far in 2024, Civista has not repurchased any shares. We have approximately $12.0 million remaining of the current $13.5 million repurchase authorization, which will expire in May 2024. In January, Civista liquidated 8,262 shares held by employees, at $18.38 per share, to satisfy tax obligations stemming from vesting of restricted shares.

Shareholders’ Equity

Total shareholders’ equity decreased $2.3 million from December 31, 2023 to March 31, 2024, primarily due to an $6.2 million increase in accumulated other comprehensive loss. Retained earnings increased $3.9 million.    

Asset Quality

Civista recorded net charge-offs of $353 thousand for the three months of 2024 compared to net charge-offs of $128 thousand for the same period of 2023. The allowance for credit losses to loans was 1.34% at March 31, 2024 and 1.30% at December 31, 2023. 

 

Allowance for Credit Losses      
(dollars in thousands)      
     March 31,
2024		      March 31,
2023		  

Beginning of period

    $ 37,160      $ 28,511  

CECL adoption adjustments

      —         5,193  

Charge-offs

      (651 )       (175 ) 

Recoveries

      298        47  

Provision

      2,042        620  
  

 

 

     

 

 

  

End of period

    $ 38,849      $ 34,196  
  

 

 

     

 

 

  

 

Allowance for Unfunded Commitments      
(dollars in thousands)      
     March 31,
2024		      March 31,
2023		  

Beginning of period

    $ 3,901      $ —   

CECL adoption adjustments

      —         3,386  

Charge-offs

      —         —   

Recoveries

      —         —   

Provision

      (50 )       201  
  

 

 

     

 

 

  

End of period

    $ 3,851      $ 3,587  
  

 

 

     

 

 

  

Non-performing assets at March 31, 2024 were $15.7 million, a 4.0% increase from December 31, 2023. The non-performing assets to assets ratio decreased to 0.41% from 0.39% at December 31, 2023. The allowance for credit losses to non-performing loans increased to 247.06% from 245.67% at December 31, 2023. 

 

Non-performing Assets      
(dollars in thousands)    March 31,
2024		      December 31,
2023		  

Non-accrual loans

    $ 13,235      $ 12,467  

Restructured loans

      2,490        2,659  
  

 

 

     

 

 

  

Total non-performing loans

      15,725        15,126  

Other Real Estate Owned

      —         —   
  

 

 

     

 

 

  

Total non-performing assets

    $ 15,725      $ 15,126  
  

 

 

     

 

 

  

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company’s financial results for the first quarter of 2024 at 1:00 p.m. ET on Tuesday, April 30, 2024. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.civb.com. Participants can also listen to the conference call by dialing 800-836-8184 and ask to join the Civista Bancshares, Inc. first quarter 2024 earnings call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.civb.com).

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in civista’s reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and any additional risks identified in the Company’s subsequent Form 10-Q’s. Undue

reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Civista Bancshares, Inc., is a $3.9 billion financial holding company headquartered in Sandusky, Ohio. Its primary subsidiary, Civista Bank, was founded in 1884 and provides full-service banking, commercial lending, mortgage, and wealth management services. Today, Civista Bank operates 43 locations across Ohio, Southeastern Indiana and Northern Kentucky. Civista Leasing & Finance, a division of Civista Bank, offers commercial equipment leasing services for businesses nationwide. Civista Bancshares’ common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. Learn more at www.civb.com.

For additional information, contact:

Dennis G. Shaffer 

CEO and President

Civista Bancshares, Inc.

888-645-4121

Civista Bancshares, Inc.

Financial Highlights

(Unaudited, dollars in thousands, except share and per share amounts)

 

Consolidated Condensed Statement of Income

 

  
     Three Months Ended  
     March 31,  
     2024     2023  

Interest income

    $ 50,128     $ 41,539  

Interest expense

      21,756       8,938  
  

 

 

    

 

 

  

Net interest income

      28,372       32,601  

Provision for credit losses

      1,992       821  
  

 

 

    

 

 

  

Net interest income after provision

      26,380       31,780  

Noninterest income

      8,504       11,068  

Noninterest expense

      27,689       27,432  
  

 

 

    

 

 

  

Income before taxes

      7,195       15,416  

Income tax expense

      835       2,528  
  

 

 

    

 

 

  

Net income

    $ 6,360     $ 12,888  

Dividends paid per common share

    $ 0.16     $ 0.14  

Earnings per common share, basic and diluted

    $ 0.41     $ 0.82  

Average shares outstanding, basic and diluted

      15,695,963       15,732,092  

Selected financial ratios:

     

Return on average assets (annualized)

      0.66 %      1.47 % 

Return on average equity (annualized)

      6.89 %      15.32 % 

Dividend payout ratio

      39.02 %      17.07 % 

Net interest margin (tax equivalent)

      3.22 %      4.11 % 

Selected Balance Sheet Items

(Dollars in thousands, except share and per share amounts)

 

     March 31,
2024		     December 31,
2023		  
     (unaudited)     (unaudited)  

Cash and due from financial institutions

    $ 50,310     $ 60,406  

Investment in time deposits

      1,450       1,225  

Investment securities

      608,277       620,441  

Loans held for sale

      3,716       1,725  

Loans

      2,898,139       2,861,728  

Less: allowance for credit losses

      (38,849 )      (37,160 ) 
  

 

 

    

 

 

  

Net loans

      2,859,290       2,824,568  

Other securities

      31,360       29,998  

Premises and equipment, net

      54,280       56,769  

Goodwill and other intangibles

      134,618       135,028  

Bank owned life insurance

      61,685       61,335  

Other assets

      75,272       69,923  
  

 

 

    

 

 

  

Total assets

    $ 3,880,258     $ 3,861,418  
  

 

 

    

 

 

  

Total deposits

    $ 2,980,695     $ 2,985,028  

Federal Home Loan Bank advances - short term

      368,500       338,000  

Federal Home Loan Bank advances - long term

      2,211       2,392  

Securities sold under agreements to repurchase

      —        —   

Subordinated debentures

      103,984       103,943  

Other borrowings

      8,105       9,859  

Tax refunds in process

      —        2,885  

Accrued expenses and other liabilities

      47,104       47,309  

Total shareholders’ equity

      369,659       372,002  
  

 

 

    

 

 

  

Total liabilities and shareholders’ equity

    $ 3,880,258     $ 3,861,418  
  

 

 

    

 

 

  

Shares outstanding at period end

      15,727,013       15,695,424  

Book value per share

    $ 23.50     $ 23.70  

Equity to asset ratio

      9.53 %      9.63 % 

Selected asset quality ratios:

     

Allowance for credit losses to total loans

      1.34 %      1.30 % 

Non-performing assets to total assets

      0.41 %      0.39 % 

Allowance for credit losses to non-performing loans

      247.06 %      245.67 % 

Non-performing asset analysis

     

Nonaccrual loans

    $ 13,235     $ 12,467  

Troubled debt restructurings

      2,490       2,659  

Other real estate owned

      —        —   
  

 

 

    

 

 

  

Total

    $ 15,725     $ 15,126  
  

 

 

    

 

 

  

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

 

End of Period Balances

    March 31,
2024		     December 31,
2023		     September 30,
2023		     June 30,
2023		     March 31,
2023		  

Assets

           

Cash and due from banks

    $ 50,310     $ 60,406     $ 50,316     $ 41,354     $ 52,723  

Investment in time deposits

      1,450       1,225       1,472       1,719       1,721  

Investment securities

      608,277       620,441       595,508       619,250       629,829  

Loans held for sale

      3,716       1,725       1,589       3,014       1,465  

Loans and leases

      2,898,139       2,861,728       2,759,771       2,728,390       2,681,180  

Allowance for credit losses

      (38,849 )      (37,160 )      (35,280 )      (35,149 )      (34,196 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Loans

      2,859,290       2,824,568       2,724,491       2,693,241       2,646,984  

Other securities

      31,360       29,998       34,224       28,449       35,383  

Premises and equipment, net

      54,280       56,769       58,989       60,899       61,895  

Goodwill and other intangibles

      134,618       135,028       134,998       135,406       135,808  

Bank owned life insurance

      61,685       61,335       54,053       53,787       53,796  

Other assets

      75,272       69,923       82,157       70,971       66,068  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

    $ 3,880,258     $ 3,861,418     $ 3,737,797     $ 3,708,090     $ 3,685,672  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities

           

Total deposits

    $ 2,980,695     $ 2,985,028     $ 2,795,743     $ 2,942,774     $ 2,843,516  

Federal Home Loan Bank advances - short term

      368,500       338,000       431,500       142,000       212,000  

Federal Home Loan Bank advances - long term

      2,211       2,392       2,573       2,859       3,361  

Securities sold under agreement to repurchase

      —        —        —        6,788       15,631  

Subordinated debentures

      103,984       103,943       103,921       103,880       103,841  

Other borrowings

      8,105       9,859       10,964       12,568       13,938  

Secured borrowings

      —        —        4,881       92,110       101,114  

Securities purchased payable

      —        —        1,755       —        —   

Tax refunds in process

      —        2,885       493       7,208       5,752  

Accrued expenses and other liabilities

      47,104       47,309       53,222       48,027       38,822  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      3,510,599       3,489,416       3,405,052       3,358,214       3,337,975  

Shareholders’ Equity

           

Common shares

      311,352       311,166       310,975       310,784       310,412  

Retained earnings

      187,638       183,788       176,644       168,777       161,110  

Treasury shares

      (75,574 )      (75,422 )      (75,412 )      (73,915 )      (73,915 ) 

Accumulated other comprehensive loss

      (53,757 )      (47,530 )      (79,462 )      (55,770 )      (49,910 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total shareholders’ equity

      369,659       372,002       332,745       349,876       347,697  

Total Liabilities and Shareholders’ Equity

    $ 3,880,258     $ 3,861,418     $ 3,737,797     $ 3,708,090     $ 3,685,672  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Quarterly Average Balances

                               

Assets:

           

Earning assets

    $ 3,552,552     $ 3,449,344     $ 3,443,226     $ 3,354,967     $ 3,313,285  

Securities

      646,203       645,202       645,202       658,515       655,987  

Loans

      2,880,031       2,805,995       2,742,736       2,689,515       2,649,901  

Liabilities and Shareholders’ Equity

           

Total deposits

    $ 2,998,150     $ 2,977,802     $ 2,946,849     $ 2,817,712     $ 2,654,356  

Interest-bearing deposits

      2,285,667       2,163,160       1,966,014       1,912,955       1,692,470  

Other interest-bearing liabilities

      431,919       383,877       178,614       471,837       616,505  

Total shareholders’ equity

      370,452       337,866       348,209       347,647       341,159  

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

 

     Three Months Ended  

Income statement

    March 31,
2024		      December 31,
2023		      September 30,
2023		      June 30,
2023		      March 31,
2023		  

Total interest and dividend income

    $ 50,128      $ 48,599      $ 46,601      $ 44,609      $ 42,925  

Total interest expense

      21,756        18,547        15,097        13,270        10,324  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net interest income

      28,372        30,052        31,504        31,339        32,601  

Provision for credit losses

      1,992        2,245        760        1,125        821  

Noninterest income

      8,504        8,823        8,125        9,149        11,068  

Noninterest expense

      27,689        25,393        26,622        27,649        27,432  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income before taxes

      7,195        11,237        12,247        11,714        15,416  

Income tax expense

      835        1,582        1,860        1,680        2,528  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net income

    $ 6,360      $ 9,655      $ 10,387      $ 10,034      $ 12,888  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Per share data

                            

Earnings per common share

            

Basic

            

Net income

    $ 6,360      $ 9,655      $ 10,387      $ 10,034      $ 12,888  

Less allocation of earnings and dividends to participating securities

      227        362        389        374        453  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net income available to common shareholders - basic

    $ 6,133      $ 9,293      $ 9,998      $ 9,660      $ 12,435  

Weighted average common shares outstanding

      15,695,963        15,695,978        15,735,007        15,775,812        15,732,092  

Less average participating securities

      561,344        588,625        588,715        588,715        552,882  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Weighted average number of shares outstanding used to calculate basic earnings per share

      15,134,619        15,107,353        15,146,292        15,187,097        15,179,210  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Earnings per common share

            

Basic

    $ 0.41      $ 0.62      $ 0.66      $ 0.64      $ 0.82  

Diluted

    $ 0.41        0.62        0.66        0.64        0.82  

Common shares dividend paid

    $ 2,510      $ 2,511      $ 2,521      $ 2,367      $ 2,201  

Dividends paid per common share

      0.16        0.16        0.16        0.15        0.14  

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

 

     Three Months Ended  

Asset quality

    March 31,
2024		     December 31,
2023		     September 30,
2023		     June 30,
2023		     March 31,
2023		  

Allowance for credit losses:

           

Beginning of period

    $ 37,160     $ 35,280     $ 35,251     $ 34,196     $ 28,511  

CECL adoption adjustments

      —        —        —        —        5,193  

Charge-offs

      (651 )      (577 )      (666 )      (14 )      (175 ) 

Recoveries

      298       132       65       208       47  

Provision

      2,042       2,325       630       861       620  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 38,849     $ 37,160     $ 35,280     $ 35,251     $ 34,196  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Allowance for unfunded commitments:

           

Beginning of period

    $ 3,901     $ 3,981     $ 3,851     $ 3,587     $ —   

CECL adoption adjustments

      —        —        —        —        3,386  

Charge-offs

      —        —        —        —        —   

Recoveries

      —        —        —        —        —   

Provision

      (50 )      (80 )      130       264       201  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 3,851     $ 3,901     $ 3,981     $ 3,851     $ 3,587  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios

           

Allowance to total loans

      1.34 %      1.30 %      1.28 %      1.29 %      1.28 % 

Allowance to nonperforming assets

      247.06 %      245.66 %      308.52 %      327.05 %      345.91 % 

Allowance to nonperforming loans

      247.06 %      245.66 %      308.52 %      327.05 %      345.82 % 

Nonperforming assets

           

Nonperforming loans

    $ 15,725     $ 15,126     $ 11,435     $ 10,747     $ 9,860  

Other real estate owned

      —        —        —        —        26  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total nonperforming assets

    $ 15,725     $ 15,126     $ 11,435     $ 10,747     $ 9,886  

Capital and liquidity

           

Tier 1 leverage ratio

      8.62 %      8.75 %      8.73 %      8.69 %      8.42 % 

Tier 1 risk-based capital ratio

      10.81 %      10.72 %      10.82 %      10.71 %      10.50 % 

Total risk-based capital ratio

      14.53 %      14.45 %      14.60 %      14.49 %      14.31 % 

Tangible common equity ratio (1)

      6.28 %      6.36 %      5.49 %      6.00 %      5.96 % 

 

(1)

See reconciliation of non-GAAP measures at the end of this press release.

Reconciliation of Non-GAAP Financial Measures

(Unaudited - dollars in thousands except share data)

 

     Three Months Ended  
     March 31,
2024		     December 31,
2023		     September 30,
2023		     June 30,
2023		     March 31,
2023		  

Tangible Common Equity

           

Total Shareholder’s Equity - GAAP

    $ 369,659     $ 372,002     $ 332,745     $ 349,876     $ 347,697  

Less: Goodwill and intangible assets

      134,618       135,028       134,998       135,406       135,808  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity (Non-GAAP)

    $ 235,041     $ 236,974     $ 197,747     $ 214,470     $ 211,889  

Total Shares Outstanding

      15,727,013       15,695,424       15,695,997       15,780,227       15,732,092  

Tangible book value per share

    $ 14.95     $ 15.10     $ 12.60     $ 13.59     $ 13.47  

Tangible Assets

           

Total Assets - GAAP

    $ 3,880,258     $ 3,861,418     $ 3,737,797     $ 3,708,090     $ 3,688,232  

Less: Goodwill and intangible assets

      134,618       135,028       134,998       135,406       135,808  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible assets (Non-GAAP)

    $ 3,745,640     $ 3,726,390     $ 3,602,799     $ 3,572,684     $ 3,552,424  

Tangible common equity to tangible assets

      6.28 %      6.36 %      5.49 %      6.00 %      5.96 %