8-K
NORWOOD FINANCIAL CORP (NWFL)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 26, 2022
NORWOOD FINANCIAL CORP
(Exact name of registrant as specified in its charter)
| Pennsylvania | 0-28364 | 23-2828306 |
|---|---|---|
| (State or other jurisdiction<br> <br>of incorporation) | (Commission<br> <br>File Number) | (IRS Employer<br> <br>Identification No.) |
| 717 Main Street, Honesdale, Pennsylvania | 18431 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (570) 253-1455
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br> <br>symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Common Stock, par value $0.10 per share | NWFL | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
NORWOOD FINANCIAL CORP
INFORMATION TO BE INCLUDED IN THE REPORT
| Item 2.02. | Results of Operations and Financial Condition |
|---|
On October 26, 2022, Norwood Financial Corp (the “Company”) issued a press release announcing its earnings for the three and nine months ended September 30, 2022. A copy of the press release is furnished with this report as exhibit 99.1 hereto and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
| Item 9.01. | Financial Statements and Exhibits |
|---|---|
| (d) | Exhibits: |
| --- | --- |
The following exhibits are being furnished with this report.
| No. | Description |
|---|---|
| 99.1 | Press Release dated October 26, 2022. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NORWOOD FINANCIAL CORP | ||
|---|---|---|
| Date: October 26, 2022 | By: | /s/ James O. Donnelly |
| James O. Donnelly | ||
| President and Chief Executive Officer<br> <br>(Duly Authorized Representative) |
EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
NORWOODFINANCIAL CORP
ANNOUNCES THIRD QUARTER EARNINGS
October 26, 2022 - Honesdale, Pennsylvania
James O. Donnelly, President and Chief Executive Officer of Norwood Financial Corp. (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced earnings for the three months ended September 30, 2022 of $8,109,000, which represents an increase of $1,128,000, or 16.2%, over the $6,981,000 earned in the same three-month period of 2021. The increase in earnings was due to a $1.2 million increase in net interest income, and a $750,000 reduction in the provision for loan losses during the three-months ended September 30, 2022. Earnings per share (fully diluted) were $1.00 in the three-months ended September 30, 2022, which represents an increase from the $0.85 earned in the same period of 2021. The annualized returns on average assets and average tangible equity for the current three-month period were 1.57% and 21.48%, respectively, compared to 1.36% and 15.78% for the three-month period ended September 30, 2021. Net income for the nine months ended September 30, 2022, totaled $22,093,000, which is $3,816,000, or 20.9%, higher than the same period of 2021. The increase in net income includes a $2,347,000 increase in net interest income, a $3,150,000 reduction in the provision for loan losses, and a $1,671,000 increase in total other income during the nine months ended September 30, 2022. Earnings per share (fully diluted) for the nine months ended September 30, 2022, totaled $2.71 per share compared to $2.23 per share in the same 2021 period.
Total assets as of September 30, 2022 were $2.019 billion, with loans receivable of $1.432 billion, deposits of $1.769 billion and stockholders’ equity of $158.8 million.
1
For the three months ended September 30, 2022, net interest income, on a fully taxable equivalent basis (fte), totaled $18,369,000, which represents an increase of $1,183,000, compared to the same period in 2021. A $157.7 million increase in average securities contributed to the increased income. Net interest margin (fte) for the 2022 period was 3.74%, compared to 3.61% for the similar period in 2021. Net interest income (fte) for the nine months ended September 30, 2022 totaled $51,734,000, an increase of $2,305,000, compared to the same period in 2021, due primarily to a $174.6 million increase in average securities. The net interest margin (fte) for the nine months ended September 30, 2022 was 3.52%, compared to 3.54% for the same period of 2021.
Total other income for the three months ended September 30, 2022 was $2,178,000, compared to $2,159,000 for the same period in 2021. For the nine months ended September 30, 2022, total other income was $8,006,000, compared to $6,335,000 in the same period of 2021. The increase was due primarily to income recognized on previously acquired purchased impaired loans that were carried at a discount.
Total other expenses were $10,139,000 for the three months ended September 30, 2022, compared to $9,623,000 in the same period of 2021. For the nine months ended September 30, 2022, total other expenses were $30,768,000, compared to $28,567,000 for the same period in 2021. The increase was due primarily to a $1,208,000 increase in salaries and employee benefit costs during the nine months ended September 30, 2022.
Mr. Donnelly commented, “Our results for the first nine months of 2022 reflect increasing net interest spreads due to rising interest rates, the higher level of interest earning assets, and reduced loan loss provisions related to our improved credit quality metrics. Our return on average assets for the nine months ended September 30, 2022 was 1.44%, our fully-diluted earnings per share improved 21.5% compared to the same nine-month period of last year, and our credit quality metrics remain strong, which should bode well for future performance. We appreciate the opportunity to serve our expanded base of stockholders and customers.”
2
Norwood Financial Corp is the parent company of Wayne Bank, which operates from fourteen offices throughout Northeastern Pennsylvania and fifteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include changes in federal and state laws, changes in interest rates, the risks and uncertainty posed by, and the effect and impact of, the COVID-19 pandemic on the economy and the Company’s results of operation and financial condition, the ability to control costs and expenses, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
3
Non-GAAP Financial Measures
This release references tax-equivalent net interest income, which is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Tax-equivalent net interest income was derived from GAAP interest income and net interest income using an assumed tax rate of 21%. We believe the presentation of net interest income on a tax-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.
The following reconciles net interest income to net interest income on a fully taxable-equivalent basis:
| (dollars in thousands) | Three months ended<br>September 30 | Nine months ended<br>September 30 | ||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| Net interest income | $ | 18,170 | $ | 16,989 | $ | 51,164 | $ | 48,817 |
| Tax equivalent basis adjustment using 21% marginal tax rate | 199 | 197 | 570 | 612 | ||||
| Net interest income on a fully taxable equivalent basis | $ | 18,369 | $ | 17,186 | $ | 51,734 | $ | 49,429 |
This release also references average tangible equity, which is also a non-GAAP financial measure. Average tangible equity is calculated by deducting average goodwill and other intangible assets from average stockholders’ equity. The Company believes that disclosure of tangible equity ratios enhances investor understanding of our financial position and improves the comparability of our financial data.
4
The following reconciles average equity to average tangible equity:
| Three months ended<br>September 30 | Nine months ended<br>September 30 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||
| Average equity | $ | 179,398 | $ | 205,848 | $ | 187,183 | $ | 201,102 | ||||
| Average goodwill and other intangibles | (29,605 | ) | (29,712 | ) | (29,630 | ) | (29,757 | ) | ||||
| Average tangible equity | $ | 149,793 | $ | 176,136 | $ | 157,553 | $ | 171,345 | ||||
| Contact: | William S. Lance | |||||||||||
| --- | --- |
Executive Vice President &
Chief Financial Officer
NORWOOD FINANCIAL CORP
570-253-8505
www.waynebank.com
5
NORWOOD FINANCIAL CORP.
Consolidated Balance Sheets
(dollars in thousands,except share and per share data)
(unaudited)
| 2021 | |||||
| ASSETS | |||||
| Cash and due from banks | 23,092 | **** | $ | 28,353 | |
| Interest-bearing deposits with banks | 17,785 | **** | 191,580 | ||
| Cash and cash equivalents | 40,877 | **** | 219,933 | ||
| Securities available for sale | 427,287 | **** | 361,988 | ||
| Loans receivable | 1,432,288 | **** | 1,371,002 | ||
| Less: Allowance for loan losses | 16,931 | **** | 16,103 | ||
| Net loans receivable | 1,415,357 | **** | 1,354,899 | ||
| Regulatory stock, at cost | 2,220 | **** | 3,898 | ||
| Bank premises and equipment, net | 17,427 | **** | 17,364 | ||
| Bank owned life insurance | 43,169 | **** | 39,864 | ||
| Foreclosed real estate owned | 346 | **** | 1,876 | ||
| Accrued interest receivable | 6,303 | **** | 6,049 | ||
| Goodwill | 29,266 | **** | 29,266 | ||
| Other intangible assets | 329 | **** | 434 | ||
| Other assets | 36,289 | **** | 18,120 | ||
| TOTAL ASSETS | 2,018,870 | **** | $ | 2,053,691 | |
| LIABILITIES | |||||
| Deposits: | |||||
| Non-interest bearing demand | 453,560 | **** | $ | 442,534 | |
| Interest-bearing | 1,315,236 | **** | 1,279,988 | ||
| Total deposits | 1,768,796 | **** | 1,722,522 | ||
| Short-term borrowings | 71,754 | **** | 78,246 | ||
| Other borrowings | — | **** | 33,136 | ||
| Accrued interest payable | 1,425 | **** | 1,341 | ||
| Other liabilities | 18,046 | **** | 15,838 | ||
| TOTAL LIABILITIES | 1,860,021 | **** | 1,851,083 | ||
| STOCKHOLDERS’ EQUITY | |||||
| Preferred Stock, no par value per share, authorized 5,000,000 shares | — | **** | — | ||
| Common Stock, .10 par value per share,authorized: 20,000,000 shares,issued: 2022:<br>8,275,901 shares, 2021: 8,245,951 shares | 828 | **** | 825 | ||
| Surplus | 96,785 | **** | 96,100 | ||
| Retained earnings | 125,243 | **** | 105,668 | ||
| Treasury stock, at cost: 2022: 130,046 shares, 2021: 51,568 shares | (3,442 | ) | (1,423 | ) | |
| Accumulated other comprehensive (loss) income | (60,565 | ) | 1,438 | ||
| TOTAL STOCKHOLDERS’ EQUITY | 158,849 | **** | 202,608 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,018,870 | **** | $ | 2,053,691 |
All values are in US Dollars.
6
NORWOOD FINANCIAL CORP.
Consolidated Statements of Income
(dollars inthousands, except per share data)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| INTEREST INCOME | ||||||||
| Loans receivable, including fees | $ | 17,114 | $ | 16,859 | $ | 48,203 | $ | 49,107 |
| Securities | **** | 2,473 | 1,468 | **** | 6,564 | 3,936 | ||
| Other | **** | 245 | 72 | **** | 504 | 174 | ||
| Total Interest income | **** | 19,832 | 18,399 | **** | 55,271 | 53,217 | ||
| INTEREST EXPENSE | ||||||||
| Deposits | **** | 1,557 | 1,167 | **** | 3,699 | 3,627 | ||
| Short-term borrowings | **** | 88 | 71 | **** | 196 | 214 | ||
| Other borrowings | **** | 17 | 172 | **** | 212 | 559 | ||
| Total Interest expense | **** | 1,662 | 1,410 | **** | 4,107 | 4,400 | ||
| NET INTEREST INCOME | **** | 18,170 | 16,989 | **** | 51,164 | 48,817 | ||
| PROVISION FOR LOAN LOSSES | $ | — | 750 | **** | 600 | 3,750 | ||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | **** | 18,170 | 16,239 | **** | 50,564 | 45,067 | ||
| OTHER INCOME | ||||||||
| Service charges and fees | **** | 1,346 | 1,485 | **** | 4,292 | 4,268 | ||
| Income from fiduciary activities | **** | 219 | 209 | **** | 634 | 550 | ||
| Net realized gains on sales of securities | **** | — | 35 | **** | — | 56 | ||
| Gains on sales of loans, net | **** | 1 | 39 | **** | 1 | 177 | ||
| Gains on sales of foreclosed real estate owned | **** | — | 31 | **** | 427 | 31 | ||
| Earnings and proceeds on life insurance policies | **** | 267 | 200 | **** | 892 | 767 | ||
| Other | **** | 345 | 160 | **** | 1,760 | 486 | ||
| Total other income | **** | 2,178 | 2,159 | **** | 8,006 | 6,335 | ||
| OTHER EXPENSES | ||||||||
| Salaries and employee benefits | **** | 5,553 | 5,491 | **** | 16,824 | 15,616 | ||
| Occupancy, furniture and equipment | **** | 1,191 | 1,163 | **** | 3,704 | 3,568 | ||
| Data processing and related operations | **** | 736 | 594 | **** | 2,031 | 1,760 | ||
| Taxes, other than income | **** | 240 | 229 | **** | 773 | 763 | ||
| Professional fees | **** | 354 | 189 | **** | 1,336 | 1,072 | ||
| FDIC Insurance assessment | **** | 143 | 177 | **** | 468 | 512 | ||
| Foreclosed real estate | **** | 4 | 16 | **** | 66 | 58 | ||
| Amortization of intangibles | **** | 24 | 28 | **** | 78 | 96 | ||
| Other | **** | 1,894 | 1,736 | **** | 5,488 | 5,122 | ||
| Total other expenses | **** | 10,139 | 9,623 | **** | 30,768 | 28,567 | ||
| INCOME BEFORE TAX | **** | 10,209 | 8,775 | **** | 27,802 | 22,835 | ||
| INCOME TAX EXPENSE | **** | 2,100 | 1,794 | **** | 5,709 | 4,558 | ||
| NET INCOME | $ | 8,109 | $ | 6,981 | $ | 22,093 | $ | 18,277 |
| Basic earnings per share | $ | 1.00 | $ | 0.85 | $ | 2.71 | $ | 2.23 |
| Diluted earnings per share | $ | 1.00 | $ | 0.85 | $ | 2.71 | $ | 2.23 |
7
NORWOOD FINANCIAL CORP.
Financial Highlights (Unaudited)
(dollars inthousands, except per share data)
| For the Three Months Ended September 30 | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| Net interest income | $ | 18,170 | **** | $ | 16,989 | |
| Net income | **** | 8,109 | **** | 6,981 | ||
| Net interest spread (fully taxable equivalent) | **** | 3.61 | % | 3.49 | % | |
| Net interest margin (fully taxable equivalent) | **** | 3.74 | % | 3.61 | % | |
| Return on average assets | **** | 1.57 | % | 1.36 | % | |
| Return on average equity | **** | 17.93 | % | 13.50 | % | |
| Return on average tangible equity | **** | 21.48 | % | 15.78 | % | |
| Basic earnings per share | $ | 1.00 | **** | $ | 0.85 | |
| Diluted earnings per share | $ | 1.00 | **** | $ | 0.85 | |
| For the Nine Months Ended September 30 | 2022 | 2021 | ||||
| Net interest income | $ | 51,164 | **** | $ | 48,817 | |
| Net income | **** | 22,093 | **** | 18,277 | ||
| Net interest spread (fully taxable equivalent) | **** | 3.41 | % | 3.43 | % | |
| Net interest margin (fully taxable equivalent) | **** | 3.52 | % | 3.54 | % | |
| Return on average assets | **** | 1.44 | % | 1.23 | % | |
| Return on average equity | **** | 15.73 | % | 12.19 | % | |
| Return on average tangible equity | **** | 18.67 | % | 14.31 | % | |
| Basic earnings per share | $ | 2.71 | **** | $ | 2.23 | |
| Diluted earnings per share | $ | 2.71 | **** | $ | 2.23 | |
| As of September 30 | 2022 | 2021 | ||||
| Total assets | $ | 2,018,870 | **** | $ | 2,053,691 | |
| Total loans receivable | **** | 1,432,288 | **** | 1,371,002 | ||
| Allowance for loan losses | **** | 16,931 | **** | 16,103 | ||
| Total deposits | **** | 1,768,796 | **** | 1,722,522 | ||
| Stockholders’ equity | **** | 158,849 | **** | 202,608 | ||
| Trust assets under management | **** | 172,037 | **** | 187,689 | ||
| Book value per share | $ | 19.92 | **** | $ | 24.90 | |
| Tangible book value per share | $ | 16.29 | **** | $ | 21.27 | |
| Equity to total assets | **** | 7.87 | % | 9.87 | % | |
| Allowance to total loans receivable | **** | 1.18 | % | 1.17 | % | |
| Nonperforming loans to total loans | **** | 0.04 | % | 0.14 | % | |
| Nonperforming assets to total assets | **** | 0.05 | % | 0.18 | % |
8
NORWOOD FINANCIAL CORP.
Consolidated Balance Sheets (unaudited)
(dollars inthousands)
| September 30 | June 30 | March 31 | December 31 | September 30 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2022 | 2022 | 2021 | 2021 | ||||||
| ASSETS | ||||||||||
| Cash and due from banks | $ | 23,092 | $ | 29,931 | $ | 22,394 | $ | 21,073 | $ | 28,353 |
| Interest-bearing deposits with banks | 17,785 | 79,735 | 143,632 | 185,608 | 191,580 | |||||
| Cash and cash equivalents | 40,877 | 109,666 | 166,026 | 206,681 | 219,933 | |||||
| Securities available for sale | 427,287 | 440,877 | 434,924 | 406,782 | 361,988 | |||||
| Loans receivable | 1,432,288 | 1,404,317 | 1,371,645 | 1,354,931 | 1,371,002 | |||||
| Less: Allowance for loan losses | 16,931 | 17,017 | 16,660 | 16,442 | 16,103 | |||||
| Net loans receivable | 1,415,357 | 1,387,300 | 1,354,985 | 1,338,489 | 1,354,899 | |||||
| Regulatory stock, at cost | 2,220 | 2,396 | 3,423 | 3,927 | 3,898 | |||||
| Bank owned life insurance | 43,169 | 43,167 | 40,215 | 40,038 | 39,864 | |||||
| Bank premises and equipment, net | 17,427 | 17,032 | 17,022 | 17,289 | 17,364 | |||||
| Foreclosed real estate owned | 346 | 346 | 590 | 1,742 | 1,876 | |||||
| Goodwill and other intangibles | 29,595 | 29,619 | 29,646 | 29,673 | 29,700 | |||||
| Other assets | 42,592 | 35,981 | 30,867 | 23,883 | 24,169 | |||||
| TOTAL ASSETS | $ | 2,018,870 | $ | 2,066,384 | $ | 2,077,698 | $ | 2,068,504 | $ | 2,053,691 |
| LIABILITIES | ||||||||||
| Deposits: | ||||||||||
| Non-interest bearing demand | $ | 453,560 | $ | 442,991 | $ | 438,979 | $ | 440,652 | $ | 442,534 |
| Interest-bearing deposits | 1,315,236 | 1,356,839 | 1,342,798 | 1,316,141 | 1,279,988 | |||||
| Total deposits | 1,768,796 | 1,799,830 | 1,781,777 | 1,756,793 | 1,722,522 | |||||
| Borrowings | 71,754 | 74,839 | 90,466 | 90,820 | 111,382 | |||||
| Other liabilities | 19,471 | 17,884 | 18,649 | 15,629 | 17,179 | |||||
| TOTAL LIABILITIES | 1,860,021 | 1,892,553 | 1,890,892 | 1,863,242 | 1,851,083 | |||||
| STOCKHOLDERS’ EQUITY | 158,849 | 173,831 | 186,806 | 205,262 | 202,608 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,018,870 | $ | 2,066,384 | $ | 2,077,698 | $ | 2,068,504 | $ | 2,053,691 |
9
NORWOOD FINANCIAL CORP.
Consolidated Statements of Income (unaudited)
(dollarsin thousands, except per share data)
| September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended | 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||
| INTEREST INCOME | |||||||||||||||
| Loans receivable, including fees | $ | 17,114 | $ | 15,714 | $ | 15,375 | $ | 16,149 | $ | 16,859 | |||||
| Securities | 2,473 | 2,197 | 1,894 | 1,612 | 1,468 | ||||||||||
| Other | 245 | 182 | 78 | 92 | 72 | ||||||||||
| Total interest income | 19,832 | 18,093 | 17,347 | 17,853 | 18,399 | ||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 1,557 | 1,083 | 1,059 | 1,130 | 1,167 | ||||||||||
| Borrowings | 105 | 116 | 187 | 227 | 243 | ||||||||||
| Total interest expense | 1,662 | 1,199 | 1,246 | 1,357 | 1,410 | ||||||||||
| NET INTEREST INCOME | 18,170 | 16,894 | 16,101 | 16,496 | 16,989 | ||||||||||
| PROVISION FOR LOAN LOSSES | — | 300 | 300 | 450 | 750 | ||||||||||
| NET INTEREST INCOME AFTER PROVISION<br>FOR LOAN LOSSES | 18,170 | 16,594 | 15,801 | 16,046 | 16,239 | ||||||||||
| OTHER INCOME | |||||||||||||||
| Service charges and fees | 1,346 | 1,475 | 1,470 | 1,425 | 1,485 | ||||||||||
| Income from fiduciary activities | 219 | 214 | 202 | 198 | 209 | ||||||||||
| Net realized gains on sales of securities | — | — | — | 36 | 35 | ||||||||||
| Gains on sales of loans, net | 1 | — | — | — | 39 | ||||||||||
| Gains on sales of foreclosed real estate owned | — | — | 427 | — | 31 | ||||||||||
| Earnings and proceeds on life insurance policies | 267 | 449 | 176 | 174 | 200 | ||||||||||
| Other | 345 | 351 | 1,063 | 188 | 160 | ||||||||||
| Total other income | 2,178 | 2,489 | 3,338 | 2,021 | 2,159 | ||||||||||
| OTHER EXPENSES | |||||||||||||||
| Salaries and employee benefits | 5,553 | 5,840 | 5,431 | 4,992 | 5,491 | ||||||||||
| Occupancy, furniture and equipment, net | 1,191 | 1,206 | 1,307 | 1,254 | 1,163 | ||||||||||
| Foreclosed real estate | 4 | 10 | 53 | 88 | 16 | ||||||||||
| FDIC insurance assessment | 143 | 142 | 183 | 169 | 177 | ||||||||||
| Other | 3,248 | 3,274 | 3,183 | 3,539 | 2,776 | ||||||||||
| Total other expenses | 10,139 | 10,472 | 10,157 | 10,042 | 9,623 | ||||||||||
| INCOME BEFORE TAX | 10,209 | 8,611 | 8,982 | 8,025 | 8,775 | ||||||||||
| INCOME TAX EXPENSE | 2,100 | 1,756 | 1,854 | 1,387 | 1,794 | ||||||||||
| NET INCOME | $ | 8,109 | $ | 6,855 | $ | 7,128 | $ | 6,638 | $ | 6,981 | |||||
| Basic earnings per share | $ | 1.00 | $ | 0.84 | $ | 0.87 | $ | 0.81 | $ | 0.85 | |||||
| Diluted earnings per share | $ | 1.00 | $ | 0.84 | $ | 0.87 | $ | 0.81 | $ | 0.85 | |||||
| Book Value per share | $ | 19.92 | $ | 21.65 | $ | 22.99 | $ | 25.24 | $ | 24.90 | |||||
| Tangible Book Value per share | 16.29 | 18.02 | 19.37 | 21.63 | 21.27 | ||||||||||
| Return on average assets (annualized) | 1.57 | % | 1.35 | % | 1.39 | % | 1.26 | % | 1.36 | % | |||||
| Return on average equity (annualized) | 17.93 | % | 15.19 | % | 14.22 | % | 12.84 | % | 13.50 | % | |||||
| Return on average tangible equity (annualized) | 21.48 | % | 18.16 | % | 16.65 | % | 15.02 | % | 15.78 | % | |||||
| Net interest spread (fte) | 3.61 | % | 3.40 | % | 3.22 | % | 3.29 | % | 3.49 | % | |||||
| Net interest margin (fte) | 3.74 | % | 3.49 | % | 3.32 | % | 3.39 | % | 3.61 | % | |||||
| Allowance for loan losses to total loans | 1.18 | % | 1.21 | % | 1.21 | % | 1.21 | % | 1.17 | % | |||||
| Net charge-offs to average loans (annualized) | 0.02 | % | -0.02 | % | 0.02 | % | 0.03 | % | 0.00 | % | |||||
| Nonperforming loans to total loans | 0.04 | % | 0.04 | % | 0.05 | % | 0.05 | % | 0.20 | % | |||||
| Nonperforming assets to total assets | 0.05 | % | 0.05 | % | 0.06 | % | 0.12 | % | 0.22 | % |
10