Net income was
On
On
Fourth Quarter Highlights
- Net income of
$3.5 million , or$0.25 per diluted share, for the current quarter, increases of 0.8% and 2.7% compared to the linked quarter and same quarter last year, respectively. Excluding merger-related expenses and certain other non-recurring items, current quarter adjusted net income (non-GAAP) was$4.4 million or$0.31 per diluted share, increases of 34.1% and 79.3% compared to the linked quarter and same quarter last year, respectively. Reconciliation of GAAP to Non-GAAP financial measures appear at the end of this release. - Net interest income of
$13.9 million for the current quarter, increases of 9.5% and 10.7% from the linked quarter and the same quarter last year, respectively. - Tax equivalent net interest margin of 3.00% for the current quarter, an increase from 2.80% in the linked quarter and 2.81% for the same quarter last year.
- Average cost of interest-bearing deposits of 0.35% for the current quarter, a decrease from 0.37% in the linked quarter and 0.48% for the same quarter last year.
- Efficiency ratio of 68.38% for the current quarter, compared to 65.66% for the linked quarter and 67.43% for the same quarter last year. Adjusted efficiency ratio (non-GAAP) of 61.28% for the current quarter, a decrease from 66.60% for the linked quarter and 74.10% for the same quarter last year.
- Average loans receivable (excluding PPP loans) of
$1.31 billion for the current quarter, increases of 5.2% and 9.4% compared to the linked quarter and same quarter last year, respectively. - Average deposits of
$1.61 billion for the current quarter, increases of 3.1% and 8.4% compared to the linked quarter and same quarter last year, respectively. - Allowance for loan losses to total net loans receivable (excluding PPP loans) of 0.67% as of
June 30, 2022 , largely unchanged compared to 0.66% as ofJune 30, 2021 . - Non-performing loans of
$9.2 million , or 0.69% of total net loans receivable (excluding PPP loans), as ofJune 30, 2022 , increased from 0.48% as ofJune 30, 2021 . - The Company had no loans on COVID-19-related payment deferral as of
June 30, 2022 , compared to$27.3 million (19 loans), or 2.21% of gross loans, as ofJune 30, 2021 .
President’s Comments
Income Statement Summary
Net income for the current quarter was
Net interest income was
The Company recognized PPP loan interest and origination fee income (net of costs) of
The tax equivalent net interest margin was 3.00% for the current quarter, reflecting increases of 20 basis points compared to 2.80% in the linked quarter and 19 basis points compared to 2.81% in the prior year quarter. Adjusted net interest margin, which excludes the effects of loan prepayment income and PPP loan interest and fees, was 2.94% for the current quarter compared to 2.70% in the linked quarter and 2.53% in the prior year quarter. Margin improvement compared to the linked quarter and prior year quarter was the result of a reduction in the cost of funds, driven by a lower costing deposit mix, as well as an increased asset yields, driven by higher market interest rates. Reconciliations of GAAP to non-GAAP financial measures are included at the end of this release.
Tax equivalent yield on interest-earning assets for the current quarter was 3.31%, increases of 19 basis points from the linked quarter and 5 basis point from the prior year quarter. Excluding the effects of non-recurring PPP loan income and loan prepayment income, the tax equivalent yield on interest-earning assets for the current quarter was 3.25%, increases of 22 basis points from the linked quarter and 27 basis points from the same quarter last year. The increase in yield compared to the prior year quarter is a result of higher market interest rates driving higher yield on cash liquidity and adjustable rate loan and investment assets, along with higher investment and loan re-investment rates. Compared to the linked quarter, the increase in yield was the result of higher market interest rates and a more profitable asset mix.
The cost of interest-bearing deposits was 0.35% for the current quarter, decreases of 2 basis points and 13 basis points from 0.37% and 0.48% in the linked quarter and prior year quarter, respectively. In response to lower market interest rates and increased liquidity levels, deposit rate reductions have been implemented throughout the last 2 years, the effects of which continue to be realized. Recent increases by the
The provision for loan losses was
Noninterest income of
Noninterest expense of
The effective income tax rate was 22.8% for the current quarter, as compared to 21.0% for the linked quarter and 20.3% for the prior year quarter. The increase for the current quarter is primarily due to non-deductible merger-related expenses. Excluding such expenses, the effective tax rate for the quarter is 20.2%.
Balance Sheet Summary
Total assets increased
Total liabilities increased
Total shareholders’ equity increased
At
About
This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.
Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the duration, extent and severity of the COVID-19 pandemic, including its impact on our business and operations, the impact of lost fee revenue and increased operating expenses, as well as its effect on our customers and issuers of securities, including their ability to make timely payments on obligations, service providers and on economies and markets more generally, the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce asset value and interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the Company's business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.
Contact:
Chairman, President and Chief Executive Officer
(914) 248-7272
Consolidated Balance Sheets (unaudited)
(amounts in thousands, except share and per share data)
2022 | 2021 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 116,522 | $ | 152,070 | |||
Federal funds sold | 1,935 | 7,235 | |||||
Total cash and cash equivalents | 118,457 | 159,305 | |||||
Held to maturity debt securities, at amortized cost (fair value of $342,137 as of | 412,449 | 337,584 | |||||
Available for sale debt securities, at fair value | 34,621 | 57,387 | |||||
Total investment securities | 447,070 | 394,971 | |||||
Loans receivable, net of allowance for loan losses of | 1,329,372 | 1,229,451 | |||||
Accrued interest receivable | 6,396 | 6,398 | |||||
FHLB stock | 3,766 | 4,507 | |||||
Premises and equipment, net | 19,358 | 21,099 | |||||
Deferred tax asset, net | 4,132 | 2,552 | |||||
Bank-owned life insurance | 36,322 | 35,568 | |||||
6,106 | 6,106 | ||||||
Other intangible assets | 89 | 151 | |||||
Other assets | 18,064 | 14,827 | |||||
Total assets | $ | 1,989,132 | $ | 1,874,935 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Interest bearing deposits | $ | 1,380,953 | $ | 1,272,610 | |||
Non-interest bearing deposits | 245,297 | 219,072 | |||||
Total deposits | 1,626,250 | 1,491,682 | |||||
Mortgage escrow funds | 11,173 | 10,536 | |||||
Advances from FHLB | 48,323 | 65,957 | |||||
Other liabilities | 26,224 | 32,200 | |||||
Total liabilities | 1,711,970 | 1,600,375 | |||||
Commitments and contingencies | - | - | |||||
Shareholders' equity: | |||||||
Preferred stock ( | - | - | |||||
Common stock ( | 187 | 187 | |||||
Additional paid in capital | 193,893 | 189,926 | |||||
Retained earnings | 162,262 | 150,987 | |||||
Unearned compensation - ESOP | (9,208 | ) | (10,176 | ) | |||
Accumulated other comprehensive loss, net of income taxes | (8,629 | ) | (3,099 | ) | |||
(61,343 | ) | (53,265 | ) | ||||
Total shareholders' equity | 277,162 | 274,560 | |||||
Total liabilities and shareholders' equity | $ | 1,989,132 | $ | 1,874,935 |
Consolidated Statements of Operations (unaudited)
(amounts in thousands, except share and per share data)
Three Months Ended | Year Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest and dividend income | |||||||||||||||
Loans receivable | $ | 12,801 | $ | 12,625 | $ | 49,502 | $ | 49,470 | |||||||
Investment securities | 2,315 | 1,851 | 8,609 | 7,340 | |||||||||||
Federal funds and other | 267 | 110 | 569 | 454 | |||||||||||
Total interest and dividend income | 15,383 | 14,586 | 58,680 | 57,264 | |||||||||||
Interest expense | |||||||||||||||
Deposits and escrow interest | 1,212 | 1,519 | 5,075 | 7,891 | |||||||||||
FHLB advances | 242 | 486 | 1,166 | 2,031 | |||||||||||
Total interest expense | 1,454 | 2,005 | 6,241 | 9,922 | |||||||||||
Net interest income | 13,929 | 12,581 | 52,439 | 47,342 | |||||||||||
Provision (benefit) for loan losses | 209 | 5 | 772 | (673 | ) | ||||||||||
Net interest income after provision (benefit) for loan losses | 13,720 | 12,576 | 51,667 | 48,015 | |||||||||||
Noninterest income | |||||||||||||||
Fees and service charges | 442 | 390 | 1,640 | 1,428 | |||||||||||
Bank-owned life insurance | 186 | 168 | 754 | 549 | |||||||||||
Gain on sale of premises | - | - | 548 | - | |||||||||||
Swap income | 452 | - | 785 | 367 | |||||||||||
Gains on sales of loans receivable | - | - | 56 | - | |||||||||||
Gains on sales of securities | - | - | - | 113 | |||||||||||
Other | 8 | 10 | 36 | 40 | |||||||||||
Total noninterest income | 1,088 | 568 | 3,819 | 2,497 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 6,063 | 5,795 | 23,416 | 22,517 | |||||||||||
Occupancy and equipment | 1,386 | 1,362 | 5,501 | 5,413 | |||||||||||
Merger-related expenses | 1,166 | - | 1,252 | - | |||||||||||
Communication and data processing | 585 | 525 | 2,211 | 2,064 | |||||||||||
Professional fees | 403 | 405 | 1,673 | 1,690 | |||||||||||
Postage, printing, stationery and supplies | 142 | 137 | 620 | 589 | |||||||||||
125 | 113 | 496 | 463 | ||||||||||||
Advertising | 177 | 100 | 477 | 400 | |||||||||||
Amortization of intangible assets | 13 | 17 | 62 | 78 | |||||||||||
Other operating expenses | 208 | 413 | 945 | 1,540 | |||||||||||
Total noninterest expense | 10,268 | 8,867 | 36,653 | 34,754 | |||||||||||
Net income before income tax expense | 4,540 | 4,277 | 18,833 | 15,758 | |||||||||||
Income tax expense | 1,037 | 867 | 3,954 | 3,334 | |||||||||||
Net income | $ | 3,503 | $ | 3,410 | $ | 14,879 | $ | 12,424 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.25 | $ | 0.23 | $ | 1.05 | $ | 0.84 | |||||||
Diluted | 0.25 | 0.23 | 1.04 | 0.84 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 14,189,701 | 14,553,783 | 14,232,855 | 14,846,786 | |||||||||||
Diluted | 14,248,141 | 14,586,928 | 14,289,020 | 14,847,579 |
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
Three Months Ended | ||||||||||||||||||||||||||||||||||||
Average Balance | Interest / Dividends | Average Rate | Average Balance | Interest / Dividends | Average Rate | Average Balance | Interest / Dividends | Average Rate | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Loans receivable (1) | $ | 1,313,296 | $ | 12,801 | 3.90 | % | $ | 1,255,117 | $ | 11,943 | 3.81 | % | $ | 1,245,610 | $ | 12,625 | 4.06 | % | ||||||||||||||||||
Investment securities (1) | 443,626 | 2,315 | 2.18 | 436,702 | 2,152 | 2.06 | 363,175 | 1,851 | 2.11 | |||||||||||||||||||||||||||
Other interest-earning assets | 118,119 | 267 | 0.91 | 141,677 | 105 | 0.30 | 190,582 | 110 | 0.23 | |||||||||||||||||||||||||||
Total interest-earning assets | 1,875,041 | 15,383 | 3.31 | 1,833,496 | 14,200 | 3.12 | 1,799,367 | 14,586 | 3.26 | |||||||||||||||||||||||||||
Non-interest-earning assets | 79,993 | 77,202 | 79,015 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,955,034 | $ | 1,910,698 | $ | 1,878,382 | ||||||||||||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 224,808 | 91 | 0.16 | $ | 215,021 | 94 | 0.18 | $ | 182,475 | 69 | 0.15 | ||||||||||||||||||||||||
Money market accounts | 388,406 | 166 | 0.17 | 360,131 | 144 | 0.16 | 311,255 | 162 | 0.21 | |||||||||||||||||||||||||||
Savings accounts and mortgage escrow funds | 427,709 | 124 | 0.12 | 415,850 | 113 | 0.11 | 387,422 | 109 | 0.11 | |||||||||||||||||||||||||||
Time deposits | 335,748 | 831 | 0.99 | 349,266 | 866 | 1.00 | 395,240 | 1,179 | 1.20 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 1,376,671 | 1,212 | 0.35 | 1,340,268 | 1,217 | 0.37 | 1,276,392 | 1,519 | 0.48 | |||||||||||||||||||||||||||
FHLB advances | 48,337 | 242 | 2.00 | 57,185 | 266 | 1.89 | 94,970 | 486 | 2.05 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,425,008 | 1,454 | 0.41 | 1,397,453 | 1,483 | 0.43 | 1,371,362 | 2,005 | 0.59 | |||||||||||||||||||||||||||
Non-interest-bearing deposits | 232,119 | 220,809 | 208,265 | |||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 19,581 | 15,370 | 23,114 | |||||||||||||||||||||||||||||||||
Total liabilities | 1,676,708 | 1,633,632 | 1,602,741 | |||||||||||||||||||||||||||||||||
Total shareholders' equity | 278,326 | 277,066 | 275,641 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,955,034 | $ | 1,910,698 | $ | 1,878,382 | ||||||||||||||||||||||||||||||
Net interest income | $ | 13,929 | $ | 12,717 | $ | 12,581 | ||||||||||||||||||||||||||||||
Interest rate spread - tax equivalent (2) | 2.90 | 2.69 | 2.67 | |||||||||||||||||||||||||||||||||
Net interest margin - tax equivalent (3) | 3.00 | 2.80 | 2.81 | |||||||||||||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 131.58 | % | 131.20 | % | 131.21 | % | ||||||||||||||||||||||||||||||
(1) Tax exempt yield is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for all periods presented. See reconciliation of GAAP to non-GAAP measures at the end of this release. | ||||||||||||||||||||||||||||||||||||
(2) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. | ||||||||||||||||||||||||||||||||||||
(3) Net interest margin represents tax equivalent net interest income divided by average interest-earning assets. See reconciliation of GAAP to non-GAAP measures at the end of this release. |
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
Year Ended | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Average Balance | Interest/ Dividends | Average Rate | Average Balance | Interest/ Dividends | Average Rate | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loans receivable (1) | $ | 1,258,513 | $ | 49,502 | 3.94 | % | $ | 1,245,818 | $ | 49,470 | 3.97 | % | ||||||||||||
Investment securities (1) | 428,203 | 8,609 | 2.10 | 327,879 | 7,340 | 2.29 | ||||||||||||||||||
Other interest-earning assets | 136,760 | 569 | 0.42 | 169,855 | 454 | 0.27 | ||||||||||||||||||
Total interest-earning assets | 1,823,476 | 58,680 | 3.24 | 1,743,552 | 57,264 | 3.30 | ||||||||||||||||||
Non-interest-earning assets | 77,769 | 72,522 | ||||||||||||||||||||||
Total assets | $ | 1,901,245 | $ | 1,816,074 | ||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
NOW accounts | $ | 203,804 | 345 | 0.17 | $ | 160,652 | 296 | 0.18 | ||||||||||||||||
Money market accounts | 363,705 | 665 | 0.18 | 273,007 | 819 | 0.30 | ||||||||||||||||||
Savings accounts and escrow | 409,732 | 458 | 0.11 | 369,681 | 611 | 0.17 | ||||||||||||||||||
Time deposits | 352,474 | 3,607 | 1.02 | 421,168 | 6,165 | 1.46 | ||||||||||||||||||
Total interest-bearing deposits | 1,329,715 | 5,075 | 0.38 | 1,224,508 | 7,891 | 0.64 | ||||||||||||||||||
FHLB advances | 58,816 | 1,166 | 1.98 | 102,919 | 2,031 | 1.97 | ||||||||||||||||||
Total interest-bearing liabilities | 1,388,531 | 6,241 | 0.45 | 1,327,427 | 9,922 | 0.75 | ||||||||||||||||||
Non-interest-bearing deposits | 218,823 | 189,667 | ||||||||||||||||||||||
Other non-interest-bearing liabilities | 17,785 | 25,707 | ||||||||||||||||||||||
Total liabilities | 1,625,139 | 1,542,801 | ||||||||||||||||||||||
Total shareholders' equity | 276,106 | 273,273 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,901,245 | $ | 1,816,074 | ||||||||||||||||||||
Net interest income | $ | 52,439 | $ | 47,342 | ||||||||||||||||||||
Interest rate spread - tax equivalent (2) | 2.79 | 2.55 | ||||||||||||||||||||||
Net interest margin - tax equivalent (3) | 2.90 | 2.73 | ||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 131.32 | % | 131.35 | % | ||||||||||||||||||||
(1) Tax exempt yield is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for all periods presented. See reconciliation of GAAP to non-GAAP measures at the end of this release. | ||||||||||||||||||||||||
(2) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. | ||||||||||||||||||||||||
(3) Net interest margin represents tax equivalent net interest income divided by average interest-earning assets. See reconciliation of GAAP to non-GAAP measures at the end of this release. |
Condensed Financial Information (unaudited)
(amounts in thousands, except per share data)
As of | ||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Condensed Balance Sheets | ||||||||||||||||||||
Cash and cash equivalents | $ | 118,457 | $ | 158,892 | $ | 120,339 | $ | 148,012 | $ | 159,305 | ||||||||||
Total investment securities | 447,070 | 448,081 | 433,999 | 423,525 | 394,971 | |||||||||||||||
Loans receivable, net | 1,329,372 | 1,285,886 | 1,243,646 | 1,210,674 | 1,229,451 | |||||||||||||||
Other assets | 94,233 | 91,682 | 90,137 | 90,968 | 91,208 | |||||||||||||||
Total assets | $ | 1,989,132 | $ | 1,984,541 | $ | 1,888,121 | $ | 1,873,179 | $ | 1,874,935 | ||||||||||
Total deposits and mortgage escrow funds | $ | 1,637,423 | $ | 1,633,463 | $ | 1,533,947 | $ | 1,511,465 | $ | 1,502,218 | ||||||||||
Advances from | 48,323 | 48,357 | 58,390 | 65,924 | 65,957 | |||||||||||||||
Other liabilities | 26,224 | 26,329 | 20,950 | 21,062 | 32,200 | |||||||||||||||
Total liabilities | 1,711,970 | 1,708,149 | 1,613,287 | 1,598,451 | 1,600,375 | |||||||||||||||
Total shareholders' equity | 277,162 | 276,392 | 274,834 | 274,728 | 274,560 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,989,132 | $ | 1,984,541 | $ | 1,888,121 | $ | 1,873,179 | $ | 1,874,935 |
Quarter Ended | Year Ended | |||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Condensed Income Statements | ||||||||||||||||||||||||||||
Interest income | $ | 15,383 | $ | 14,200 | $ | 14,870 | $ | 14,227 | $ | 14,586 | $ | 58,680 | $ | 57,264 | ||||||||||||||
Interest expense | 1,454 | 1,483 | 1,612 | 1,692 | 2,005 | 6,241 | 9,922 | |||||||||||||||||||||
Net interest income | 13,929 | 12,717 | 13,258 | 12,535 | 12,581 | 52,439 | 47,342 | |||||||||||||||||||||
Provision (benefit) for loan losses | 209 | 286 | 264 | 13 | 5 | 772 | (673 | ) | ||||||||||||||||||||
Noninterest income | 1,088 | 923 | 1,195 | 613 | 568 | 3,819 | 2,497 | |||||||||||||||||||||
Noninterest expense | 10,268 | 8,956 | 8,805 | 8,624 | 8,867 | 36,653 | 34,754 | |||||||||||||||||||||
Income before income tax expense | 4,540 | 4,398 | 5,384 | 4,511 | 4,277 | 18,833 | 15,758 | |||||||||||||||||||||
Income tax expense | 1,037 | 924 | 1,096 | 897 | 867 | 3,954 | 3,334 | |||||||||||||||||||||
Net income | $ | 3,503 | $ | 3,474 | $ | 4,288 | $ | 3,614 | $ | 3,410 | $ | 14,879 | $ | 12,424 | ||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||
Basic | $ | 0.25 | $ | 0.25 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 1.05 | $ | 0.84 | ||||||||||||||
Diluted | 0.25 | 0.24 | 0.30 | 0.25 | 0.23 | 1.04 | 0.84 |
Selected Financial Data (unaudited)
Quarter Ended | Year Ended | |||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Performance Ratios (1): | ||||||||||||||||||||||||||||
Return on average assets | 0.72 | % | 0.73 | % | 0.92 | % | 0.78 | % | 0.73 | % | 0.78 | % | 0.68 | % | ||||||||||||||
Return on average equity | 5.03 | % | 5.02 | % | 6.22 | % | 5.29 | % | 4.95 | % | 5.39 | % | 4.55 | % | ||||||||||||||
Interest rate spread | 2.90 | % | 2.69 | % | 2.86 | % | 2.71 | % | 2.67 | % | 2.79 | % | 2.55 | % | ||||||||||||||
Net interest margin | 3.00 | % | 2.80 | % | 2.97 | % | 2.82 | % | 2.81 | % | 2.90 | % | 2.73 | % | ||||||||||||||
Efficiency ratio | 68.38 | % | 65.66 | % | 60.92 | % | 65.59 | % | 67.43 | % | 65.15 | % | 69.73 | % | ||||||||||||||
Noninterest income to average assets | 0.22 | % | 0.19 | % | 0.26 | % | 0.13 | % | 0.12 | % | 0.20 | % | 0.14 | % | ||||||||||||||
Noninterest expense to average assets | 2.10 | % | 1.87 | % | 1.88 | % | 1.85 | % | 1.89 | % | 1.93 | % | 1.91 | % | ||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 131.58 | % | 131.20 | % | 131.36 | % | 131.14 | % | 131.21 | % | 131.32 | % | 131.35 | % | ||||||||||||||
Average equity to average assets | 14.24 | % | 14.50 | % | 14.71 | % | 14.66 | % | 14.67 | % | 14.52 | % | 15.05 | % | ||||||||||||||
Dividend payout ratio (2) | 28.72 | % | 24.61 | % | 20.22 | % | 24.24 | % | 26.07 | % | 24.22 | % | 21.93 | % | ||||||||||||||
Performance Ratios excluding merger-related expenses (3): | ||||||||||||||||||||||||||||
Earnings per diluted share | $ | 0.32 | $ | 0.25 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 1.12 | $ | 0.84 | ||||||||||||||
Return on average assets | 0.93 | % | 0.74 | % | 0.92 | % | 0.78 | % | 0.73 | % | 0.84 | % | 0.68 | % | ||||||||||||||
Return on average equity | 6.54 | % | 5.13 | % | 6.22 | % | 5.29 | % | 4.95 | % | 5.80 | % | 4.55 | % | ||||||||||||||
Efficiency ratio | 60.61 | % | 65.03 | % | 60.92 | % | 65.59 | % | 67.43 | % | 62.93 | % | 73.04 | % | ||||||||||||||
Noninterest expense to average assets | 1.86 | % | 1.86 | % | 1.88 | % | 1.85 | % | 1.89 | % | 1.86 | % | 1.91 | % | ||||||||||||||
Dividend payout ratio (2) | 22.11 | % | 24.06 | % | 20.22 | % | 24.24 | % | 26.07 | % | 22.52 | % | 21.93 | % |
Selected Financial Data (unaudited) - Continued
(dollar amounts in thousands, except share and per share data)
As of and for the quarter ended | ||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Loans to deposits | 81.74 | % | 79.15 | % | 81.65 | % | 80.46 | % | 82.42 | % | ||||||||||
Share Data: | ||||||||||||||||||||
Shares outstanding | 15,334,857 | 15,334,857 | 15,337,979 | 15,574,310 | 15,770,645 | |||||||||||||||
Book value per common share | $ | 18.07 | $ | 18.02 | $ | 17.92 | $ | 17.64 | $ | 17.41 | ||||||||||
Tangible book value per common share (4) | $ | 17.67 | $ | 17.62 | $ | 17.51 | $ | 17.24 | $ | 17.01 | ||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Non-performing loans receivable | $ | 9,235 | $ | 7,859 | $ | 7,890 | $ | 5,732 | $ | 5,764 | ||||||||||
Non-performing assets | $ | 9,235 | $ | 7,859 | $ | 7,890 | $ | 5,732 | $ | 5,764 | ||||||||||
Allowance for loan losses as a percent of total loans receivable (5) | 0.67 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.66 | % | ||||||||||
Allowance for loan losses as a percent of non-performing loans receivable | 96.66 | % | 110.86 | % | 106.83 | % | 142.34 | % | 136.73 | % | ||||||||||
Non-performing loans as a percent of total loans receivable, net (5) | 0.69 | % | 0.61 | % | 0.64 | % | 0.48 | % | 0.48 | % | ||||||||||
Non-performing assets as a percent of total assets | 0.46 | % | 0.40 | % | 0.42 | % | 0.31 | % | 0.31 | % | ||||||||||
Net (recoveries) charge-offs | $ | (7 | ) | $ | 4 | $ | (6 | ) | $ | (265 | ) | $ | (11 | ) | ||||||
Net (recoveries) charge-offs to average outstanding loans during the period (1) | 0.00 | % | 0.00 | % | 0.00 | % | (0.09 | %) | 0.00 | % | ||||||||||
Capital Ratios (6): | ||||||||||||||||||||
Tier 1 capital (to adjusted total assets) | 12.78 | % | 12.86 | % | 12.91 | % | 12.72 | % | 12.48 | % | ||||||||||
Common equity Tier 1 capital (to risk-weighted assets) | 17.22 | % | 17.22 | % | 17.67 | % | 17.84 | % | 17.93 | % | ||||||||||
Tier 1 capital (to risk-weighted assets) | 17.22 | % | 17.22 | % | 17.67 | % | 17.84 | % | 17.93 | % | ||||||||||
Total capital (to risk-weighted assets) | 17.83 | % | 17.83 | % | 18.28 | % | 18.46 | % | 18.53 | % | ||||||||||
(1) Performance ratios for quarter ended periods are annualized. | ||||||||||||||||||||
(2) Dividends declared per share divided by net income per share. | ||||||||||||||||||||
(3) Merger-related expenses, primarily consisting of legal and consulting costs, total | ||||||||||||||||||||
(4) Tangible book value per share is a non-GAAP measure and equals total shareholders’ equity, less goodwill and other intangible assets, divided by shares outstanding. We believe this disclosure may be meaningful to those investors who seek to evaluate our equity without giving effect to goodwill and other intangible assets. Reconciliations of GAAP to non-GAAP measures appear at the end of this release. | ||||||||||||||||||||
(5) Total loans receivable excludes PPP loans. | ||||||||||||||||||||
(6) |
Loan and Deposit Portfolios (unaudited)
(amounts in thousands)
As of | ||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Residential mortgages | $ | 214,167 | $ | 215,431 | $ | 212,817 | $ | 221,735 | $ | 224,305 | ||||||||||
Commercial mortgages | 942,130 | 897,424 | 867,581 | 838,021 | 826,624 | |||||||||||||||
Construction | 20,896 | 16,894 | 11,857 | 11,639 | 10,151 | |||||||||||||||
Net deferred loan origination (fees) costs | (100 | ) | (23 | ) | (18 | ) | 97 | 196 | ||||||||||||
Total mortgage loans | 1,177,093 | 1,129,726 | 1,092,237 | 1,071,492 | 1,061,276 | |||||||||||||||
Commercial and consumer loans: | ||||||||||||||||||||
Commercial loans (1) | 136,304 | 141,427 | 135,055 | 122,031 | 150,658 | |||||||||||||||
Home equity credit lines | 23,688 | 22,557 | 24,142 | 24,936 | 25,439 | |||||||||||||||
Consumer and overdrafts | 594 | 348 | 356 | 394 | 345 | |||||||||||||||
Net deferred loan origination costs (fees) | 620 | 539 | 285 | (20 | ) | (386 | ) | |||||||||||||
Total commercial and consumer loans | 161,206 | 164,871 | 159,838 | 147,341 | 176,056 | |||||||||||||||
Total loans receivable | 1,338,299 | 1,294,597 | 1,252,075 | 1,218,833 | 1,237,332 | |||||||||||||||
Allowance for loan losses | (8,927 | ) | (8,711 | ) | (8,429 | ) | (8,159 | ) | (7,881 | ) | ||||||||||
Loans receivable, net | $ | 1,329,372 | $ | 1,285,886 | $ | 1,243,646 | $ | 1,210,674 | $ | 1,229,451 | ||||||||||
(1) Includes PPP loans totaling: | $ | 1,940 | $ | 4,701 | $ | 12,769 | $ | 19,763 | $ | 37,050 |
As of | ||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Demand deposits | $ | 245,297 | $ | 243,908 | $ | 215,708 | $ | 216,470 | $ | 219,072 | ||||||||||
NOW accounts | 243,006 | 221,386 | 198,610 | 181,572 | 177,223 | |||||||||||||||
Money market accounts | 399,026 | 396,358 | 361,352 | 363,090 | 332,843 | |||||||||||||||
Savings | 411,332 | 417,975 | 393,041 | 381,836 | 387,529 | |||||||||||||||
Time deposits | 327,589 | 345,092 | 354,356 | 361,669 | 375,015 | |||||||||||||||
Total deposits | $ | 1,626,250 | $ | 1,624,719 | $ | 1,523,067 | $ | 1,504,637 | $ | 1,491,682 | ||||||||||
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(dollar amounts in thousands, except share and per share data)
Quarter Ended | Year Ended | |||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Computation of Adjusted Net Income and Adjusted Earnings Per Share | ||||||||||||||||||||||||||||
Net income applicable to common stock (GAAP) | $ | 3,503 | $ | 3,474 | $ | 4,288 | $ | 3,614 | $ | 3,410 | $ | 14,879 | $ | 12,424 | ||||||||||||||
Adjustments (1): | ||||||||||||||||||||||||||||
Merger-related expenses | 1,048 | 79 | - | - | - | 1,127 | - | |||||||||||||||||||||
Prepayment income on loans receivable | (99 | ) | (43 | ) | (442 | ) | (26 | ) | (532 | ) | (610 | ) | (679 | ) | ||||||||||||||
PPP loan interest and fee income | (28 | ) | (210 | ) | (264 | ) | (299 | ) | (411 | ) | (801 | ) | (926 | ) | ||||||||||||||
Gain on sale of premises | - | - | (436 | ) | - | - | (436 | ) | - | |||||||||||||||||||
Prepayment income on investment securities | - | - | - | - | - | - | (90 | ) | ||||||||||||||||||||
Gains on sale of investment securities | - | - | - | - | - | - | (89 | ) | ||||||||||||||||||||
Adjusted net income (Non-GAAP) | $ | 4,424 | $ | 3,300 | $ | 3,146 | $ | 3,289 | $ | 2,467 | $ | 14,159 | $ | 10,640 | ||||||||||||||
Average number of common shares outstanding: | ||||||||||||||||||||||||||||
Basic | 14,189,701 | 14,165,775 | 14,236,473 | 14,337,543 | 14,553,783 | 14,232,855 | 14,846,786 | |||||||||||||||||||||
Diluted | 14,248,141 | 14,197,716 | 14,281,232 | 14,405,816 | 14,586,928 | 14,289,020 | 14,847,579 | |||||||||||||||||||||
Earnings per share (GAAP): | ||||||||||||||||||||||||||||
Basic | $ | 0.25 | $ | 0.25 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 1.05 | $ | 0.84 | ||||||||||||||
Diluted | 0.25 | 0.24 | 0.30 | 0.25 | 0.23 | 1.04 | 0.84 | |||||||||||||||||||||
Adjusted earnings per common share (Non-GAAP): | ||||||||||||||||||||||||||||
Basic | $ | 0.31 | $ | 0.23 | $ | 0.22 | $ | 0.23 | $ | 0.17 | $ | 0.99 | $ | 0.72 | ||||||||||||||
Diluted | 0.31 | 0.23 | 0.22 | 0.23 | 0.17 | 0.99 | 0.72 | |||||||||||||||||||||
(1) Amounts included in income before income tax expense are presented net of tax. |
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(dollar amounts in thousands, except share and per share data)
Quarter Ended | Year Ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Computation of Tax Equivalent Net Interest Income | ||||||||||||||||||||
Total interest income | $ | 15,383 | $ | 14,200 | $ | 14,586 | $ | 58,680 | $ | 57,264 | ||||||||||
Total interest expense | 1,454 | 1,483 | 2,005 | 6,241 | 9,922 | |||||||||||||||
Net interest income (GAAP) | 13,929 | 12,717 | 12,581 | 52,439 | 47,342 | |||||||||||||||
Tax equivalent adjustment | 111 | 101 | 68 | 400 | 198 | |||||||||||||||
Net interest income - tax equivalent (Non-GAAP) | $ | 14,040 | $ | 12,818 | $ | 12,649 | $ | 52,839 | $ | 47,540 |
Quarter Ended | Year Ended | |||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Computation of Efficiency Ratio | ||||||||||||||||||||||||||||
Noninterest expense (GAAP) | $ | 10,268 | $ | 8,956 | $ | 8,805 | $ | 8,624 | $ | 8,867 | $ | 36,653 | $ | 34,754 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Merger-related expenses | (1,166 | ) | (86 | ) | - | - | - | (1,252 | ) | |||||||||||||||||||
Adjusted total (Non-GAAP) | $ | 9,102 | $ | 8,870 | $ | 8,805 | $ | 8,624 | $ | 8,867 | $ | 35,401 | $ | 34,754 | ||||||||||||||
Net interest income (GAAP) | $ | 13,929 | $ | 12,717 | $ | 13,258 | $ | 12,535 | $ | 12,581 | $ | 52,439 | $ | 47,342 | ||||||||||||||
Noninterest income (GAAP) | 1,088 | 923 | 1,195 | 613 | 568 | 3,819 | 2,497 | |||||||||||||||||||||
Total (GAAP) | 15,017 | 13,640 | 14,453 | 13,148 | 13,149 | 56,258 | 49,839 | |||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
PPP loan interest and fee income | (36 | ) | (266 | ) | (332 | ) | (373 | ) | (516 | ) | (1,007 | ) | (1,171 | ) | ||||||||||||||
Prepayment income on loans receivable | (128 | ) | (55 | ) | (555 | ) | (32 | ) | (667 | ) | (770 | ) | (854 | ) | ||||||||||||||
Gains on sales of premises | - | - | (548 | ) | - | - | (548 | ) | - | |||||||||||||||||||
Prepayment income on investment securities | - | - | - | - | - | - | (117 | ) | ||||||||||||||||||||
Gains on sales of investment securities | - | - | - | - | - | - | (113 | ) | ||||||||||||||||||||
Adjusted total (Non-GAAP) | $ | 14,853 | $ | 13,319 | $ | 13,018 | $ | 12,743 | $ | 11,966 | $ | 53,933 | $ | 47,584 | ||||||||||||||
Efficiency ratio (GAAP) | 68.38 | % | 65.66 | % | 60.92 | % | 65.59 | % | 67.43 | % | 65.15 | % | 69.73 | % | ||||||||||||||
Adjusted efficiency ratio (Non-GAAP) | 61.28 | % | 66.60 | % | 67.64 | % | 67.68 | % | 74.10 | % | 65.64 | % | 73.04 | % |
Reconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued
(dollar amounts in thousands, except share and per share data)
As of | ||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Computation of Tangible Book Value per Common Share | ||||||||||||||||||||
Total shareholders' equity (GAAP) | $ | 277,162 | $ | 276,392 | $ | 274,834 | $ | 274,728 | $ | 274,560 | ||||||||||
Adjustments: | ||||||||||||||||||||
(6,106 | ) | (6,106 | ) | (6,106 | ) | (6,106 | ) | (6,106 | ) | |||||||||||
Other intangible assets | (89 | ) | (102 | ) | (119 | ) | (135 | ) | (151 | ) | ||||||||||
Tangible common shareholders' equity (Non-GAAP) | $ | 270,967 | $ | 270,184 | $ | 268,609 | $ | 268,487 | $ | 268,303 | ||||||||||
Common shares outstanding | 15,334,857 | 15,334,857 | 15,337,979 | 15,574,310 | 15,770,645 | |||||||||||||||
Book value per share (GAAP) | $ | 18.07 | $ | 18.02 | $ | 17.92 | $ | 17.64 | $ | 17.41 | ||||||||||
Adjustments: | ||||||||||||||||||||
Effects of intangible assets | (0.40 | ) | (0.40 | ) | (0.41 | ) | (0.40 | ) | (0.40 | ) | ||||||||||
Tangible book value per common share (Non-GAAP) | $ | 17.67 | $ | 17.62 | $ | 17.51 | $ | 17.24 | $ | 17.01 |
Reconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued
(dollar amounts in thousands, except share and per share data)
Quarter Ended | Year Ended | |||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Computation of Adjusted Yield on Assets and Adjusted Net Interest Margin | ||||||||||||||||||||||||||||
Average interest-earning assets | $ | 1,875,041 | $ | 1,833,496 | $ | 1,796,613 | $ | 1,788,756 | $ | 1,799,367 | $ | 1,823,476 | $ | 1,743,552 | ||||||||||||||
Interest and dividend income (GAAP) | $ | 15,383 | $ | 14,200 | $ | 14,870 | $ | 14,227 | $ | 14,586 | $ | 58,680 | $ | 57,264 | ||||||||||||||
Less: PPP loan interest and fee income | (36 | ) | (266 | ) | (332 | ) | (373 | ) | (516 | ) | (1,007 | ) | (1,171 | ) | ||||||||||||||
Less: Prepayment income on loans receivable | (128 | ) | (55 | ) | (555 | ) | (32 | ) | (667 | ) | (770 | ) | (854 | ) | ||||||||||||||
Adjusted interest and dividend income (Non-GAAP) | $ | 15,219 | $ | 13,879 | $ | 13,983 | $ | 13,822 | $ | 13,403 | $ | 56,903 | $ | 55,239 | ||||||||||||||
Yield on interest-earning assets (GAAP) | 3.31 | % | 3.12 | % | 3.33 | % | 3.20 | % | 3.26 | % | 3.24 | % | 3.30 | % | ||||||||||||||
Adjusted yield on interest-earning assets (Non-GAAP) | 3.25 | % | 3.03 | % | 3.11 | % | 3.09 | % | 2.98 | % | 3.12 | % | 3.17 | % | ||||||||||||||
Net interest income (GAAP) | $ | 13,929 | $ | 12,717 | $ | 13,258 | $ | 12,535 | $ | 12,581 | $ | 52,439 | $ | 47,342 | ||||||||||||||
Less: PPP loan interest and fee income | (36 | ) | (266 | ) | (332 | ) | (373 | ) | (516 | ) | (1,007 | ) | (1,171 | ) | ||||||||||||||
Less: Prepayment income on loans receivable | (128 | ) | (55 | ) | (555 | ) | (32 | ) | (667 | ) | (770 | ) | (854 | ) | ||||||||||||||
Adjusted net interest income (Non-GAAP) | $ | 13,765 | $ | 12,396 | $ | 12,371 | $ | 12,130 | $ | 11,398 | $ | 50,662 | $ | 45,317 | ||||||||||||||
Net interest margin (GAAP) | 3.00 | % | 2.80 | % | 2.97 | % | 2.82 | % | 2.81 | % | 2.90 | % | 2.73 | % | ||||||||||||||
Adjusted net interest margin (Non-GAAP) | 2.94 | % | 2.70 | % | 2.75 | % | 2.71 | % | 2.53 | % | 2.78 | % | 2.60 | % |
Source:
2022 GlobeNewswire, Inc., source