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) July 26, 2023
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>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 July 26, 2023, Norwood Financial Corp (the “Company”) issued a press release announcing its earnings for the quarter ended June 30, 2023. 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 July 26, 2023. |
| 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: July 26, 2023 | 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 SECOND QUARTER EARNINGS
Honesdale, Pennsylvania - July 26, 2023
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 June 30, 2023 of $6,503,000, which was $352,000 lower than the same three-month period of last year. The decrease includes a $1,252,000 decrease in net interest income, a $706,000 decrease in total other income, and a $466,000 increase in total other expense, which was partially offset by a $2,050,000 decrease in the provision for credit losses. Earnings per share (fully diluted) were $0.81 in the three months ended June 30, 2023, compared to $0.84 in the same period of last year. The annualized return on average assets for the three months ended June 30, 2023, was 1.23%, while the annualized return on average tangible equity was 17.66%. Net income for the six months ended June 30, 2023, was $12,285,000, which is $1,698,000 lower than the same six-month period of 2022, due to decreases in net interest income and total other income, and an increase in operating expenses, partially offset by a decrease in the provision for credit losses of $2,050,000. Earnings per share (fully diluted) for the six months ended June 30, 2023, were $1.51, compared to $1.71 for the six months ended June 30, 2022. The annualized return on average assets for the six months ended June 30, 2023 was 1.18%. The annualized return on average tangible equity for the six months ended June 30, 2023 was 17.06%.
Total assets as of June 30, 2023 were $2.142 billion, compared to $2.066 billion at June 30, 2022. At June 30, 2023, loans receivable were $1.578 billion, total deposits were $1.732 billion and stockholders’ equity was $173.4 million.
For the three months ended June 30, 2023, net interest income, on a fully-taxable equivalent basis (fte), totaled $15,829,000, a decrease of $1,253,000 compared to the same period in 2022. A $122.5 million increase in average time deposits, combined with a 231 basis points increase in the cost of time deposits, contributed to the decreased net interest income. Borrowing costs also increased, offsetting a $5,143,000 increase in total interest income. Net interest margin (fte) for the three months ended June 30, 2023 was 3.09%, compared to 3.49% in the same period of 2022. The tax-equivalent yield on interest-earning assets increased 83 basis points to 4.57% during the three months ended June 30, 2023, compared to the same prior year period, while the cost of interest-bearing liabilities increased 167 basis points to 2.01%. Net interest income (fte) for the six months ended June 30, 2023 totaled $32,104,000, which was $1,261,000 lower than the same period in 2022, due primarily to a $10,767,000 increase in the cost of interest-bearing liabilities. The net interest margin (fte) was 3.17% for the six months ended June 30, 2023, as compared to 3.41% for the six months ended June 30, 2022. The decrease in the net interest margin (fte) was due to a 143 basis points increase in the cost of interest-bearing liabilities, which offset the 82 basis points increase in the yield on interest-earning assets.
Other income for the three months ended June 30, 2023, totaled $1,783,000, compared to $2,489,000 for the same period in 2022. The decrease is due primarily to a $220,000 decrease in earnings and proceeds on bank-owned life insurance policies, and a $212,000 loss on the sale of investment securities. For the six months ended June 30, 2023, other income totaled $3,695,000, compared to $5,828,000 for the six months ended June 30, 2022. The decrease includes the reduced earnings and proceeds on bank-owned life insurance, losses recognized on sales of securities, and income recognized in 2022 on previously acquired purchased impaired loans that were carried at a discount.
Other expenses totaled $10,938,000 for the three months ended June 30, 2023, an increase of $466,000, compared to the $10,472,000 for the same period of 2022. For the six months ended June 30, 2023, other expenses totaled $21,374,000, compared to $20,630,000 for the same period in 2022, due primarily to a $539,000 increase in salaries and employee benefits costs.
Mr. Donnelly stated, “Our second quarter income decreased from the 2022 level due to one-time gains recognized in 2022 and the rising cost of deposits and borrowed funds. These decreases were partially offset by a $2,050,000 reduction in our provision for credit losses as a result of our June 30, 2023 current expected credit losses (“CECL”) methodology, due to a reduce level of credit losses within the measurement period. Loan growth was 10.9% annually during the quarter, while total deposits decreased $27.2 million during the second quarter of 2023 due primarily to significant decreases in municipal account balances. Our core operating expenses remain well-controlled, and our capital base remains above “Well-Capitalized” targets. Additionally, our credit quality metrics remained strong during the second quarter, which we believe should benefit future performance. We appreciate the opportunity to serve our Wayne Bank customers and our customers at the Bank of the Finger Lakes and Bank of Cooperstown locations. We continue to look for opportunities available to us as we service our growing base of stockholders and customers”.
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”, “bode”, “future performance” 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 continued effect, and impact of, the COVID-19 pandemic on the economy and the Company’s results of operation and financial condition, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, 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.
Non-GAAP Financial Measures
This release references net interest income on a fully taxable-equivalent basis (fte), which is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Fully taxable-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 fully taxable-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources, and is consistent with industry practice.
The following table reconciles net interest income to net interest income on a fully taxable-equivalent basis:
| Three months ended<br>June 30 | Six months ended<br>June 30 | |||||||
|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||
| Net Interest Income | $ | 15,642 | $ | 16,894 | $ | 31,735 | $ | 32,995 |
| Taxable equivalent basis adjustment using 21% marginal tax rate | 187 | 188 | 369 | 370 | ||||
| Net interest income on a fully taxable equivalent basis | $ | 15,829 | $ | 17,082 | $ | 32,104 | $ | 33,365 |
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.
The following table reconciles average equity to average tangible equity:
| Three months ended<br>June 30 | Six months ended<br>June 30 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||
| Average equity | $ | 186,111 | $ | 181,044 | $ | 180,952 | $ | 192,090 | ||||
| Average goodwill and other intangibles | (29,536 | ) | (29,629 | ) | (29,547 | ) | (29,643 | ) | ||||
| Average tangible equity | $ | 156,575 | $ | 151,415 | $ | 151,405 | $ | 162,447 |
Contact: William S. Lance
Executive Vice President &
Chief Financial Officer
NORWOOD FINANCIAL CORP
570-253-8505
www.waynebank.com
NORWOOD FINANCIAL CORP
Consolidated Balance Sheets
(dollars in thousands,except share and per share data)
(unaudited)
| 2022 | |||
| ASSETS | |||
| Cash and due from banks | 30,053 | $ | 29,931 |
| Interest-bearing deposits with banks | 3,036 | 79,735 | |
| Cash and cash equivalents | 33,089 | 109,666 | |
| Securities available for sale | 403,621 | 440,877 | |
| Loans receivable | 1,577,699 | 1,404,317 | |
| Less: Allowance for credit losses | 17,483 | 17,017 | |
| Net loans receivable | 1,560,216 | 1,387,300 | |
| Regulatory stock, at cost | 7,924 | 2,396 | |
| Bank premises and equipment, net | 17,363 | 17,032 | |
| Bank owned life insurance | 45,806 | 43,167 | |
| Foreclosed real estate owned | 387 | 346 | |
| Accrued interest receivable | 7,276 | 6,085 | |
| Deferred tax assets, net | 23,301 | 19,134 | |
| Goodwill | 29,266 | 29,266 | |
| Other intangible assets | 260 | 353 | |
| Other assets | 13,256 | 10,762 | |
| TOTAL ASSETS | 2,141,765 | $ | 2,066,384 |
| LIABILITIES | |||
| Deposits: | |||
| Non-interest bearing demand | 425,757 | $ | 442,991 |
| Interest-bearing | 1,306,240 | 1,356,839 | |
| Total deposits | 1,731,997 | 1,799,830 | |
| Short-term borrowings | 112,290 | 70,427 | |
| Other borrowings | 99,687 | 4,412 | |
| Accrued interest payable | 7,101 | 1,138 | |
| Other liabilities | 17,266 | 16,746 | |
| TOTAL LIABILITIES | 1,968,341 | 1,892,553 | |
| 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: 2023: 8,291,401<br>shares, 2022: 8,275,901 shares | 829 | 828 | |
| Surplus | 97,268 | 96,752 | |
| Retained earnings | 135,583 | 119,414 | |
| Treasury stock, at cost: 2023: 223,926 shares, 2022: 110,084 shares | (6,007 | (2,933 | |
| Accumulated other comprehensive loss | (54,249 | (40,230 | |
| TOTAL STOCKHOLDERS’ EQUITY | 173,424 | 173,831 | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,141,765 | 2,066,384 |
All values are in US Dollars.
NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars inthousands, except per share data)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||||
| INTEREST INCOME | ||||||||||
| Loans receivable, including fees | $ | 20,702 | **** | $ | 15,714 | $ | 39,860 | **** | $ | 31,089 |
| Securities | **** | 2,481 | **** | 2,197 | **** | 4,986 | **** | 4,091 | ||
| Other | **** | 53 | **** | 182 | **** | 101 | **** | 260 | ||
| Total Interest income | **** | 23,236 | **** | 18,093 | **** | 44,947 | **** | 35,440 | ||
| INTEREST EXPENSE | ||||||||||
| Deposits | **** | 5,740 | **** | 1,083 | **** | 10,102 | **** | 2,142 | ||
| Short-term borrowings | **** | 943 | **** | 60 | **** | 1,722 | **** | 108 | ||
| Other borrowings | **** | 911 | **** | 56 | **** | 1,388 | **** | 195 | ||
| Total Interest expense | **** | 7,594 | **** | 1,199 | **** | 13,212 | **** | 2,445 | ||
| NET INTEREST INCOME | **** | 15,642 | **** | 16,894 | **** | 31,735 | **** | 32,995 | ||
| (RELEASE OF) PROVISION FOR CREDIT LOSSES | $ | (1,750 | ) | 300 | $ | (1,450 | ) | 600 | ||
| NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES | **** | 17,392 | **** | 16,594 | **** | 33,185 | **** | 32,395 | ||
| OTHER INCOME | ||||||||||
| Service charges and fees | **** | 1,353 | **** | 1,475 | **** | 2,665 | **** | 2,946 | ||
| Income from fiduciary activities | **** | 229 | **** | 214 | **** | 441 | **** | 416 | ||
| Net realized gains on sales of securities | **** | (212 | ) | — | **** | (209 | ) | — | ||
| Gains on sales of loans, net | **** | 10 | **** | — | **** | 10 | **** | — | ||
| Gains on sales of foreclosed real estate owned | **** | — | **** | — | **** | — | **** | 427 | ||
| Earnings and proceeds on life insurance policies | **** | 229 | **** | 449 | **** | 442 | **** | 625 | ||
| Other | **** | 174 | 351 | **** | 346 | 1,414 | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Total other income | **** | 1,783 | 2,489 | **** | 3,695 | 5,828 | ||||
| OTHER EXPENSES | ||||||||||
| Salaries and employee benefits | **** | 5,842 | 5,840 | **** | 11,810 | 11,271 | ||||
| Occupancy, furniture and equipment | **** | 1,314 | 1,206 | **** | 2,576 | 2,513 | ||||
| Data processing and related operations | **** | 822 | 666 | **** | 1,590 | 1,295 | ||||
| Taxes, other than income | **** | 162 | 240 | **** | 323 | 533 | ||||
| Professional fees | **** | 323 | 406 | **** | 608 | 981 | ||||
| FDIC Insurance assessment | **** | 244 | 142 | **** | 445 | 326 | ||||
| Foreclosed real estate | **** | 74 | 10 | **** | 103 | 63 | ||||
| Amortization of intangibles | **** | 23 | 27 | **** | 46 | 54 | ||||
| Other | **** | 2,134 | 1,935 | **** | 3,873 | 3,594 | ||||
| Total other expenses | **** | 10,938 | 10,472 | **** | 21,374 | 20,630 | ||||
| INCOME BEFORE TAX | **** | 8,237 | **** | 8,611 | **** | 15,506 | **** | 17,593 | ||
| INCOME TAX EXPENSE | **** | 1,734 | 1,756 | **** | 3,221 | 3,610 | ||||
| NET INCOME | $ | 6,503 | $ | 6,855 | $ | 12,285 | $ | 13,983 | ||
| Basic earnings per share | $ | 0.81 | $ | 0.84 | $ | 1.52 | $ | 1.71 | ||
| Diluted earnings per share | $ | 0.81 | $ | 0.84 | $ | 1.51 | $ | 1.71 |
NORWOOD FINANCIAL CORP
Financial Highlights (Unaudited)
(dollars inthousands, except per share data)
| For the Three Months Ended June 30 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Net interest income | $ | 15,642 | **** | $ | 16,894 | |
| Net income | **** | 6,503 | **** | 6,855 | ||
| Net interest spread (fully taxable equivalent) | **** | 2.56 | % | 3.40 | % | |
| Net interest margin (fully taxable equivalent) | **** | 3.09 | % | 3.49 | % | |
| Return on average assets | **** | 1.23 | % | 1.35 | % | |
| Return on average equity | **** | 14.72 | % | 15.19 | % | |
| Return on average tangible equity | **** | 17.66 | % | 18.16 | % | |
| Basic earnings per share | $ | 0.81 | **** | $ | 0.84 | |
| Diluted earnings per share | $ | 0.81 | **** | $ | 0.84 | |
| For the Six Months Ended June 30 | 2023 | 2022 | ||||
| Net interest income | $ | 31,735 | **** | $ | 32,995 | |
| Net income | **** | 12,285 | **** | 13,983 | ||
| Net interest spread (fully taxable equivalent) | **** | 2.69 | % | 3.30 | % | |
| Net interest margin (fully taxable equivalent) | **** | 3.17 | % | 3.41 | % | |
| Return on average assets | **** | 1.18 | % | 1.37 | % | |
| Return on average equity | **** | 14.17 | % | 14.68 | % | |
| Return on average tangible equity | **** | 17.06 | % | 17.36 | % | |
| Basic earnings per share | $ | 1.52 | **** | $ | 1.71 | |
| Diluted earnings per share | $ | 1.51 | **** | $ | 1.71 | |
| As of June 30 | 2023 | 2022 | ||||
| Total assets | $ | 2,141,765 | **** | $ | 2,066,384 | |
| Total loans receivable | **** | 1,577,699 | **** | 1,404,317 | ||
| Allowance for credit losses | **** | 17,483 | **** | 17,017 | ||
| Total deposits | **** | 1,731,997 | **** | 1,799,830 | ||
| Stockholders’ equity | **** | 173,424 | **** | 173,831 | ||
| Trust assets under management | **** | 193,392 | **** | 174,193 | ||
| Book value per share | $ | 22.24 | **** | $ | 21.65 | |
| Tangible book value per share | $ | 18.58 | **** | $ | 18.02 | |
| Equity to total assets | **** | 8.10 | % | 8.41 | % | |
| Allowance to total loans receivable | **** | 1.11 | % | 1.21 | % | |
| Nonperforming loans to total loans | **** | 0.20 | % | 0.04 | % | |
| Nonperforming assets to total assets | **** | 0.17 | % | 0.05 | % |
NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars inthousands)
| June 30<br>2023 | March 31<br>2023 | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||
| Cash and due from banks | $ | 30,053 | $ | 25,701 | $ | 28,847 | $ | 23,092 | $ | 29,931 |
| Interest-bearing deposits with banks | 3,036 | 3,314 | 3,019 | 17,785 | 79,735 | |||||
| Cash and cash equivalents | 33,089 | 29,015 | 31,866 | 40,877 | 109,666 | |||||
| Securities available for sale | 403,621 | 418,245 | 418,927 | 427,287 | 440,877 | |||||
| Loans receivable | 1,577,699 | 1,535,643 | 1,473,945 | 1,432,288 | 1,404,317 | |||||
| Less: Allowance for credit losses | 17,483 | 19,445 | 16,999 | 16,931 | 17,017 | |||||
| Net loans receivable | 1,560,216 | 1,516,198 | 1,456,946 | 1,415,357 | 1,387,300 | |||||
| Regulatory stock, at cost | 7,924 | 5,963 | 5,418 | 2,220 | 2,396 | |||||
| Bank owned life insurance | 45,806 | 45,577 | 43,364 | 43,169 | 43,167 | |||||
| Bank premises and equipment, net | 17,363 | 17,660 | 17,924 | 17,427 | 17,032 | |||||
| Foreclosed real estate owned | 387 | 346 | 346 | 346 | 346 | |||||
| Goodwill and other intangibles | 29,526 | 29,549 | 29,572 | 29,595 | 29,619 | |||||
| Other assets | 43,833 | 41,810 | 42,707 | 42,592 | 35,981 | |||||
| TOTAL ASSETS | $ | 2,141,765 | $ | 2,104,363 | $ | 2,047,070 | $ | 2,018,870 | $ | 2,066,384 |
| LIABILITIES | ||||||||||
| Deposits: | ||||||||||
| Non-interest bearing demand | $ | 425,757 | $ | 419,615 | $ | 434,529 | $ | 453,560 | $ | 442,991 |
| Interest-bearing deposits | 1,306,240 | 1,336,320 | 1,293,198 | 1,315,236 | 1,356,839 | |||||
| Total deposits | 1,731,997 | 1,755,935 | 1,727,727 | 1,768,796 | 1,799,830 | |||||
| Borrowings | 211,978 | 148,744 | 133,215 | 71,754 | 74,839 | |||||
| Other liabilities | 24,366 | 23,269 | 19,043 | 19,471 | 17,884 | |||||
| TOTAL LIABILITIES | 1,968,341 | 1,927,948 | 1,879,985 | 1,860,021 | 1,892,553 | |||||
| STOCKHOLDERS’ EQUITY | 173,424 | 176,415 | 167,085 | 158,849 | 173,831 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,141,765 | $ | 2,104,363 | $ | 2,047,070 | $ | 2,018,870 | $ | 2,066,384 |
NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollarsin thousands, except per share data)
| Three months ended | June 30<br>2023 | March 31<br>2023 | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INTEREST INCOME | |||||||||||||||
| Loans receivable, including fees | $ | 20,702 | $ | 19,158 | $ | 17,810 | $ | 17,114 | $ | 15,714 | |||||
| Securities | 2,481 | 2,505 | 2,487 | 2,473 | 2,197 | ||||||||||
| Other | 53 | 48 | 98 | 245 | 182 | ||||||||||
| Total interest income | 23,236 | 21,711 | 20,395 | 19,832 | 18,093 | ||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 5,740 | 4,362 | 2,772 | 1,557 | 1,083 | ||||||||||
| Borrowings | 1,854 | 1,256 | 391 | 105 | 116 | ||||||||||
| Total interest expense | 7,594 | 5,618 | 3,163 | 1,662 | 1,199 | ||||||||||
| NET INTEREST INCOME | 15,642 | 16,093 | 17,232 | 18,170 | 16,894 | ||||||||||
| (RELEASE OF) PROVISION FOR CREDIT LOSSES | (1,750 | ) | 300 | 300 | — | 300 | |||||||||
| NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES | 17,392 | 15,793 | 16,932 | 18,170 | 16,594 | ||||||||||
| OTHER INCOME | |||||||||||||||
| Service charges and fees | 1,353 | 1,313 | 1,370 | 1,346 | 1,475 | ||||||||||
| Income from fiduciary activities | 229 | 212 | 210 | 219 | 214 | ||||||||||
| Net realized (losses) gains on sales of securities | (212 | ) | 2 | 3 | — | — | |||||||||
| Gains on sales of loans, net | 10 | — | 1 | 1 | — | ||||||||||
| Gains on sales of foreclosed real estate owned | — | — | — | — | — | ||||||||||
| Earnings and proceeds on life insurance policies | 229 | 213 | 195 | 267 | 449 | ||||||||||
| Other | 174 | 172 | 147 | 345 | 351 | ||||||||||
| Total other income | 1,783 | 1,912 | 1,926 | 2,178 | 2,489 | ||||||||||
| OTHER EXPENSES | |||||||||||||||
| Salaries and employee benefits | 5,842 | 5,969 | 5,246 | 5,553 | 5,840 | ||||||||||
| Occupancy, furniture and equipment, net | 1,314 | 1,262 | 1,263 | 1,191 | 1,206 | ||||||||||
| Foreclosed real estate | 74 | 29 | 7 | 4 | 10 | ||||||||||
| FDIC insurance assessment | 244 | 200 | 144 | 143 | 142 | ||||||||||
| Other | 3,464 | 2,976 | 3,615 | 3,248 | 3,274 | ||||||||||
| Total other expenses | 10,938 | 10,436 | 10,275 | 10,139 | 10,472 | ||||||||||
| INCOME BEFORE TAX | 8,237 | 7,269 | 8,583 | 10,209 | 8,611 | ||||||||||
| INCOME TAX EXPENSE | 1,734 | 1,487 | 1,443 | 2,100 | 1,756 | ||||||||||
| NET INCOME | $ | 6,503 | $ | 5,782 | $ | 7,140 | $ | 8,109 | $ | 6,855 | |||||
| Basic earnings per share | $ | 0.81 | $ | 0.71 | $ | 0.88 | $ | 1.00 | $ | 0.84 | |||||
| Diluted earnings per share | $ | 0.81 | $ | 0.71 | $ | 0.88 | $ | 1.00 | $ | 0.84 | |||||
| Book Value per share | $ | 22.24 | $ | 21.92 | $ | 20.86 | $ | 19.92 | $ | 21.65 | |||||
| Tangible Book Value per share | 18.58 | 18.31 | 17.24 | 16.29 | 18.02 | ||||||||||
| Return on average assets (annualized) | 1.23 | % | 1.13 | % | 1.40 | % | 1.57 | % | 1.35 | % | |||||
| Return on average equity (annualized) | 14.72 | % | 13.61 | % | 17.40 | % | 17.93 | % | 15.19 | % | |||||
| Return on average tangible equity (annualized) | 17.66 | % | 16.42 | % | 21.27 | % | 21.48 | % | 18.16 | % | |||||
| Net interest spread (fte) | 2.56 | % | 2.83 | % | 3.30 | % | 3.61 | % | 3.40 | % | |||||
| Net interest margin (fte) | 3.09 | % | 3.25 | % | 3.55 | % | 3.74 | % | 3.49 | % | |||||
| Allowance for credit losses to total loans | 1.11 | % | 1.27 | % | 1.15 | % | 1.18 | % | 1.21 | % | |||||
| Net charge-offs to average loans (annualized) | 0.06 | % | 0.08 | % | 0.06 | % | 0.02 | % | -0.02 | % | |||||
| Nonperforming loans to total loans | 0.20 | % | 0.18 | % | 0.08 | % | 0.04 | % | 0.04 | % | |||||
| Nonperforming assets to total assets | 0.17 | % | 0.15 | % | 0.07 | % | 0.05 | % | 0.05 | % |