Pennsylvania | 000-55983 | 83-1561918 | ||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Ident. No.) | ||||||||||||
9 Old Lincoln Highway, Malvern, Pennsylvania | 19355 | |||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
(484) 568-5000 Registrant’s telephone number, including area code | ||||||||||||||
Not Applicable | ||||||||||||||
(Former name or former address, if changed since last report.) |
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||||||||||||
Common Stock, $1 par value | MRBK | The NASDAQ Stock Market |
Exhibit No. | Description of Exhibit | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
MERIDIAN CORPORATION (Registrant) | ||||||||||||||
Dated: October 31, 2022 | ||||||||||||||
By: | /s/ Denise Lindsay | |||||||||||||
Denise Lindsay | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
Q3'2022 | Q2'2022 | Q1'2022 | Q4'2021 | Q3'2021 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
Net income | $ | 5,798 | $ | 5,938 | $ | 5,535 | $ | 7,719 | $ | 9,438 | |||||||||||||||||||
Pre-tax, pre-provision income (1) | 7,989 | 8,248 | 7,704 | 9,671 | 12,898 | ||||||||||||||||||||||||
Pre-tax, pre-provision income - Bank (1) | 8,040 | 7,458 | 8,778 | 6,829 | 8,896 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.96 | 0.96 | 0.88 | 1.24 | 1.52 | ||||||||||||||||||||||||
(1) See Non-GAAP reconciliation in the Appendix |
As of or for the quarter ended (Unaudited) | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||
Net income - consolidated | $ | 5,798 | $ | 5,938 | $ | 5,535 | $ | 7,719 | $ | 9,438 | |||||||||||||||||||
Basic earnings per common share | 0.99 | 0.99 | 0.92 | 1.29 | 1.56 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.96 | 0.96 | 0.88 | 1.24 | 1.52 | ||||||||||||||||||||||||
Net interest income - consolidated | 18,026 | 17,551 | 16,035 | 16,322 | 16,257 | ||||||||||||||||||||||||
As of or for the quarter ended (Unaudited) | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||||||
Total assets | $ | 1,921,924 | $ | 1,853,019 | $ | 1,831,589 | $ | 1,713,443 | $ | 1,762,445 | |||||||||||||||||||
Loans, net of fees and costs | 1,610,349 | 1,518,893 | 1,431,906 | 1,386,457 | 1,378,670 | ||||||||||||||||||||||||
Total deposits | 1,673,553 | 1,568,014 | 1,564,851 | 1,446,413 | 1,439,047 | ||||||||||||||||||||||||
Non-interest bearing deposits | 290,169 | 291,925 | 291,379 | 274,528 | 265,842 | ||||||||||||||||||||||||
Stockholders' equity | 151,161 | 156,087 | 157,684 | 165,360 | 158,416 | ||||||||||||||||||||||||
Balance Sheet (Average Balances): | |||||||||||||||||||||||||||||
Total assets | $ | 1,868,194 | $ | 1,811,335 | $ | 1,752,643 | $ | 1,755,263 | $ | 1,739,848 | |||||||||||||||||||
Total interest earning assets | 1,791,255 | 1,736,547 | 1,680,070 | 1,696,473 | 1,691,641 | ||||||||||||||||||||||||
Loans, net of fees and costs | 1,565,861 | 1,484,696 | 1,415,831 | 1,383,511 | 1,370,439 | ||||||||||||||||||||||||
Total deposits | 1,597,648 | 1,567,325 | 1,504,241 | 1,468,575 | 1,409,534 | ||||||||||||||||||||||||
Non-interest bearing deposits | 295,975 | 296,521 | 281,123 | 287,801 | 254,843 | ||||||||||||||||||||||||
Stockholders' equity | 157,614 | 158,420 | 161,939 | 159,921 | 155,580 | ||||||||||||||||||||||||
Performance Ratios (Annualized): | |||||||||||||||||||||||||||||
Return on average assets - consolidated | 1.23 | % | 1.31 | % | 1.28 | % | 1.74 | % | 2.15 | % | |||||||||||||||||||
Return on average equity - consolidated | 14.59 | % | 15.03 | % | 13.86 | % | 19.15 | % | 24.07 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2022 | June 30, 2022 | Change | % Change | Change due to rate | Change due to volume | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||
Due from banks | $ | 92 | $ | 49 | $ | 43 | 87.8 | % | $ | 71 | $ | (28) | |||||||||||||||||||||||
Federal funds sold | 1 | 3 | (2) | (66.7) | % | 3 | (5) | ||||||||||||||||||||||||||||
Investment securities - taxable (1) | 648 | 525 | 123 | 23.4 | % | 107 | 16 | ||||||||||||||||||||||||||||
Investment securities - tax exempt (1) | 451 | 416 | 35 | 8.4 | % | 37 | (2) | ||||||||||||||||||||||||||||
Loans held for sale | 479 | 565 | (86) | (15.2) | % | 92 | (178) | ||||||||||||||||||||||||||||
Loans held for investment (1) | 21,371 | 18,558 | 2,813 | 15.2 | % | 1,764 | 1,049 | ||||||||||||||||||||||||||||
Total loans | 21,850 | 19,123 | 2,727 | 14.3 | % | 1,856 | 871 | ||||||||||||||||||||||||||||
Total interest income | 23,042 | 20,116 | 2,926 | 14.5 | % | 2,074 | 852 | ||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 798 | $ | 248 | $ | 550 | 221.8 | % | $ | 568 | $ | (18) | |||||||||||||||||||||||
Money market and savings deposits | 2,075 | 1,076 | 999 | 92.8 | % | 967 | 32 | ||||||||||||||||||||||||||||
Time deposits | 1,202 | 494 | 708 | 143.3 | % | 665 | 43 | ||||||||||||||||||||||||||||
Total deposits | 4,075 | 1,818 | 2,257 | 124.1 | % | 2,200 | 57 | ||||||||||||||||||||||||||||
Borrowings | 266 | 77 | 189 | 245.5 | % | 39 | 150 | ||||||||||||||||||||||||||||
Subordinated debentures | 591 | 591 | — | — | % | — | — | ||||||||||||||||||||||||||||
Total interest expense | 4,932 | 2,486 | 2,446 | 98.4 | % | 2,239 | 207 | ||||||||||||||||||||||||||||
Net interest income differential | $ | 18,110 | $ | 17,630 | $ | 480 | 2.72 | % | $ | (165) | $ | 645 | |||||||||||||||||||||||
(1) Reflected on a tax-equivalent basis. |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | September 30, 2022 | June 30, 2022 | Change | % Change | |||||||||||||||||||
Mortgage banking income | $ | 7,329 | $ | 6,942 | $ | 387 | 5.6 | % | |||||||||||||||
Wealth management income | 1,114 | 1,254 | (140) | (11.2) | % | ||||||||||||||||||
SBA loan income | 989 | 437 | 552 | 126.3 | % | ||||||||||||||||||
Earnings on investment in life insurance | 138 | 137 | 1 | 0.7 | % | ||||||||||||||||||
Net change in the fair value of derivative instruments | 127 | (674) | 801 | (118.8) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-sale | (237) | 268 | (505) | (188.4) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-investment | (886) | (835) | (51) | 6.1 | % | ||||||||||||||||||
Net gain on hedging activity | 399 | 1,715 | (1,316) | (76.7) | % | ||||||||||||||||||
Service charges | 32 | 31 | 1 | 3.2 | % | ||||||||||||||||||
Other | 1,219 | 1,128 | 91 | 8.1 | % | ||||||||||||||||||
Total non-interest income | $ | 10,224 | $ | 10,403 | $ | (179) | (1.7) | % |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | September 30, 2022 | June 30, 2022 | Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 13,360 | $ | 12,926 | $ | 434 | 3.4 | % | |||||||||||||||
Occupancy and equipment | 1,191 | 1,176 | 15 | 1.3 | % | ||||||||||||||||||
Professional fees | 899 | 913 | (14) | (1.5) | % | ||||||||||||||||||
Advertising and promotion | 1,165 | 1,189 | (24) | (2.0) | % | ||||||||||||||||||
Data processing | 574 | 580 | (6) | (1.0) | % | ||||||||||||||||||
Information technology | 868 | 728 | 140 | 19.2 | % | ||||||||||||||||||
Pennsylvania bank shares tax | 202 | 212 | (10) | (4.7) | % | ||||||||||||||||||
Other | 2,002 | 1,982 | 20 | 1.0 | % | ||||||||||||||||||
Total non-interest expense | $ | 20,261 | $ | 19,706 | $ | 555 | 2.8 | % |
September 30, 2022 | June 30, 2022 | ||||||||||
Stockholders' equity to total assets | 7.87 | % | 8.42 | % | |||||||
Tangible common equity to tangible assets (1) | 7.67 | % | 8.22 | % | |||||||
Tier 1 leverage ratio - Corporation | 8.54 | % | 8.87 | % | |||||||
Common tier 1 risk-based capital ratio - Corporation | 9.28 | % | 9.79 | % | |||||||
Tier 1 risk-based capital ratio - Corporation | 9.28 | % | 9.79 | % | |||||||
Total risk-based capital ratio - Corporation | 12.80 | % | 13.50 | % | |||||||
(1) See Non-GAAP reconciliation in the Appendix |
Quarter Ended | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Earnings and Per Share Data: | |||||||||||||||||||||||||||||
Net income | $ | 5,798 | $ | 5,938 | $ | 5,535 | $ | 7,719 | $ | 9,438 | |||||||||||||||||||
Basic earnings per common share | $ | 0.99 | $ | 0.99 | $ | 0.92 | $ | 1.29 | $ | 1.56 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.96 | $ | 0.96 | $ | 0.88 | $ | 1.24 | $ | 1.52 | |||||||||||||||||||
Common shares outstanding | 5,844 | 6,037 | 6,129 | 6,108 | 6,108 | ||||||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||||
Return on average assets - consolidated | 1.23 | % | 1.31 | % | 1.28 | % | 1.74 | % | 2.15 | % | |||||||||||||||||||
Return on average equity - consolidated | 14.59 | 15.03 | 13.86 | 19.15 | 24.07 | ||||||||||||||||||||||||
Net interest margin (tax-equivalent) | 4.01 | 4.07 | 3.89 | 3.83 | 3.83 | ||||||||||||||||||||||||
Net interest margin (tax-equivalent, excluding PPP loans and borrowings) (1) | 3.99 | 3.95 | 3.82 | 3.76 | 3.73 | ||||||||||||||||||||||||
Yield on earning assets (tax-equivalent) | 5.10 | 4.65 | 4.35 | 4.28 | 4.31 | ||||||||||||||||||||||||
Yield on earning assets (tax-equivalent, excluding PPP loans) (1) | 5.09 | 4.54 | 4.31 | 4.23 | 4.24 | ||||||||||||||||||||||||
Cost of funds | 1.17 | 0.61 | 0.50 | 0.49 | 0.52 | ||||||||||||||||||||||||
Efficiency ratio - consolidated | 71.72 | % | 70.49 | % | 73.56 | % | 71.05 | % | 66.39 | % | |||||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.02 | % | 0.03 | % | 0.04 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
Non-performing loans to total loans | 1.40 | 1.46 | 1.51 | 1.57 | 0.61 | ||||||||||||||||||||||||
Non-performing assets to total assets | 1.20 | 1.24 | 1.25 | 1.34 | 0.52 | ||||||||||||||||||||||||
Allowance for loan losses to: | |||||||||||||||||||||||||||||
Total loans held for investment | 1.18 | 1.24 | 1.31 | 1.35 | 1.38 | ||||||||||||||||||||||||
Total loans held for investment (excluding loans at fair value and PPP loans) (1) | 1.20 | 1.27 | 1.38 | 1.46 | 1.52 | ||||||||||||||||||||||||
Non-performing loans | 82.20 | % | 81.82 | % | 82.48 | % | 81.60 | % | 206.42 | % | |||||||||||||||||||
Capital Ratios: | |||||||||||||||||||||||||||||
Book value per common share | $ | 25.86 | $ | 25.85 | $ | 25.73 | $ | 27.07 | $ | 25.94 | |||||||||||||||||||
Tangible book value per common share | $ | 25.16 | $ | 25.16 | $ | 25.04 | $ | 26.37 | $ | 25.23 | |||||||||||||||||||
Total equity/Total assets | 7.87 | % | 8.42 | % | 8.61 | % | 9.65 | % | 8.99 | % | |||||||||||||||||||
Tangible common equity/Tangible assets - Corporation (1) | 7.67 | 8.22 | 8.40 | 9.42 | 8.76 | ||||||||||||||||||||||||
Tangible common equity/Tangible assets - Bank (1) | 9.61 | 10.17 | 10.40 | 11.54 | 10.90 | ||||||||||||||||||||||||
Tier 1 leverage ratio - Corporation | 8.54 | 8.87 | 9.10 | 9.39 | 9.28 | ||||||||||||||||||||||||
Tier 1 leverage ratio - Bank | 10.52 | 10.86 | 11.20 | 11.51 | 11.55 | ||||||||||||||||||||||||
Common tier 1 risk-based capital ratio - Corporation | 9.28 | 9.79 | 10.09 | 10.83 | 10.64 | ||||||||||||||||||||||||
Common tier 1 risk-based capital ratio - Bank | 11.44 | 11.98 | 12.41 | 13.27 | 13.25 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio - Corporation | 9.28 | 9.79 | 10.09 | 10.83 | 10.64 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio - Bank | 11.44 | 11.98 | 12.41 | 13.27 | 13.25 | ||||||||||||||||||||||||
Total risk-based capital ratio - Corporation | 12.80 | 13.50 | 13.91 | 14.81 | 14.72 | ||||||||||||||||||||||||
Total risk-based capital ratio - Bank | 12.70 | % | 13.33 | % | 13.76 | % | 14.63 | % | 14.62 | % | |||||||||||||||||||
(1) See Non-GAAP reconciliation in the Appendix |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Loans, including fees | $ | 21,848 | $ | 19,120 | $ | 17,626 | $ | 58,187 | $ | 51,287 | |||||||||||||||||||
Securities - taxable | 648 | 525 | 357 | 1,599 | 1,076 | ||||||||||||||||||||||||
Securities - tax-exempt | 369 | 340 | 306 | 1,015 | 886 | ||||||||||||||||||||||||
Cash and cash equivalents | 93 | 52 | 17 | 157 | 25 | ||||||||||||||||||||||||
Total interest income | 22,958 | 20,037 | 18,306 | 60,958 | 53,274 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 4,075 | 1,818 | 1,327 | 7,182 | 4,261 | ||||||||||||||||||||||||
Borrowings | 857 | 668 | 722 | 2,166 | 2,224 | ||||||||||||||||||||||||
Total interest expense | 4,932 | 2,486 | 2,049 | 9,348 | 6,485 | ||||||||||||||||||||||||
Net interest income | 18,026 | 17,551 | 16,257 | 51,610 | 46,789 | ||||||||||||||||||||||||
Provision for loan losses | 526 | 602 | 597 | 1,743 | 1,292 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 17,500 | 16,949 | 15,660 | 49,867 | 45,497 | ||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||
Mortgage banking income | 7,329 | 6,942 | 18,726 | 21,367 | 62,293 | ||||||||||||||||||||||||
Wealth management income | 1,114 | 1,254 | 1,232 | 3,672 | 3,531 | ||||||||||||||||||||||||
SBA loan income | 989 | 437 | 2,688 | 3,946 | 5,423 | ||||||||||||||||||||||||
Earnings on investment in life insurance | 138 | 137 | 93 | 413 | 224 | ||||||||||||||||||||||||
Net change in the fair value of derivative instruments | 127 | (674) | (339) | (713) | (3,431) | ||||||||||||||||||||||||
Net change in the fair value of loans held-for-sale | (237) | 268 | (532) | (1,094) | (3,164) | ||||||||||||||||||||||||
Net change in the fair value of loans held-for-investment | (886) | (835) | 37 | (2,499) | (24) | ||||||||||||||||||||||||
Net gain on hedging activity | 399 | 1,715 | (1,189) | 4,941 | 2,397 | ||||||||||||||||||||||||
Net gain on sale of investment securities available-for-sale | — | — | 314 | — | 362 | ||||||||||||||||||||||||
Service charges | 32 | 31 | 35 | 90 | 99 | ||||||||||||||||||||||||
Other | 1,219 | 1,128 | 1,057 | 3,605 | 3,192 | ||||||||||||||||||||||||
Total non-interest income | 10,224 | 10,403 | 22,122 | 33,728 | 70,902 | ||||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits | 13,360 | 12,926 | 19,472 | 41,585 | 61,824 | ||||||||||||||||||||||||
Occupancy and equipment | 1,191 | 1,176 | 1,133 | 3,619 | 3,460 | ||||||||||||||||||||||||
Professional fees | 899 | 913 | 873 | 2,659 | 2,629 | ||||||||||||||||||||||||
Advertising and promotion | 1,165 | 1,189 | 1,089 | 3,340 | 2,795 | ||||||||||||||||||||||||
Data processing | 574 | 580 | 530 | 1,633 | 1,666 | ||||||||||||||||||||||||
Information technology | 868 | 728 | 476 | 2,306 | 1,365 | ||||||||||||||||||||||||
Pennsylvania bank shares tax | 202 | 212 | 152 | 612 | 478 | ||||||||||||||||||||||||
Other | 2,002 | 1,982 | 1,756 | 5,646 | 5,773 | ||||||||||||||||||||||||
Total non-interest expense | 20,261 | 19,706 | 25,481 | 61,400 | 79,990 | ||||||||||||||||||||||||
Income before income taxes | 7,463 | 7,646 | 12,301 | 22,195 | 36,409 | ||||||||||||||||||||||||
Income tax expense | 1,665 | 1,708 | 2,863 | 4,927 | 8,543 | ||||||||||||||||||||||||
Net income | $ | 5,798 | $ | 5,938 | $ | 9,438 | $ | 17,268 | $ | 27,866 | |||||||||||||||||||
Basic earnings per common share | $ | 0.99 | $ | 0.99 | $ | 1.56 | $ | 2.90 | $ | 4.62 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.96 | $ | 0.96 | $ | 1.52 | $ | 2.80 | $ | 4.49 | |||||||||||||||||||
Basic weighted average shares outstanding | 5,867 | 5,999 | 6,045 | 5,964 | 6,033 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding | 6,059 | 6,199 | 6,231 | 6,172 | 6,201 |
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 12,114 | $ | 8,280 | $ | 11,155 | $ | 3,966 | $ | 10,321 | |||||||||||||||||||
Interest-bearing deposits at other banks | 20,774 | 28,813 | 44,867 | 19,514 | 35,554 | ||||||||||||||||||||||||
Federal funds sold | — | — | 12,866 | — | 17,246 | ||||||||||||||||||||||||
Cash and cash equivalents | 32,888 | 37,093 | 68,888 | 23,480 | 63,121 | ||||||||||||||||||||||||
Securities available-for-sale, at fair value | 127,999 | 129,288 | 130,653 | 159,302 | 146,149 | ||||||||||||||||||||||||
Securities held-to-maturity, at amortized cost | 37,922 | 37,111 | 34,977 | 6,372 | 6,406 | ||||||||||||||||||||||||
Equity investments | 2,092 | 2,153 | 2,240 | 2,354 | 1,011 | ||||||||||||||||||||||||
Mortgage loans held for sale, at fair value | 33,800 | 58,938 | 81,258 | 80,882 | 117,996 | ||||||||||||||||||||||||
Loans, net of fees and costs | 1,610,349 | 1,518,893 | 1,431,906 | 1,386,457 | 1,378,670 | ||||||||||||||||||||||||
Allowance for loan and lease losses | (18,974) | (18,805) | (18,826) | (18,758) | (18,976) | ||||||||||||||||||||||||
Loans, net of the allowance for loan and lease losses | 1,591,375 | 1,500,088 | 1,413,080 | 1,367,699 | 1,359,694 | ||||||||||||||||||||||||
Restricted investment in bank stock | 5,217 | 4,719 | 4,330 | 5,117 | 4,162 | ||||||||||||||||||||||||
Bank premises and equipment, net | 12,835 | 12,185 | 11,883 | 11,806 | 8,242 | ||||||||||||||||||||||||
Bank owned life insurance | 22,916 | 22,778 | 22,641 | 22,503 | 22,362 | ||||||||||||||||||||||||
Accrued interest receivable | 6,008 | 5,108 | 4,848 | 5,009 | 5,080 | ||||||||||||||||||||||||
Deferred income taxes | 5,722 | 4,467 | 3,190 | 1,413 | 1,457 | ||||||||||||||||||||||||
Servicing assets | 12,807 | 12,860 | 13,396 | 12,765 | 11,932 | ||||||||||||||||||||||||
Goodwill | 899 | 899 | 899 | 899 | 899 | ||||||||||||||||||||||||
Intangible assets | 3,226 | 3,277 | 3,328 | 3,379 | 3,430 | ||||||||||||||||||||||||
Other assets | 26,218 | 22,055 | 35,978 | 10,463 | 10,504 | ||||||||||||||||||||||||
Total assets | $ | 1,921,924 | $ | 1,853,019 | $ | 1,831,589 | $ | 1,713,443 | $ | 1,762,445 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Non-interest bearing | $ | 290,169 | $ | 291,925 | $ | 291,379 | $ | 274,528 | $ | 265,842 | |||||||||||||||||||
Interest bearing | |||||||||||||||||||||||||||||
Interest checking | 236,562 | 205,298 | 252,298 | 268,248 | 279,659 | ||||||||||||||||||||||||
Money market and savings deposits | 709,127 | 728,886 | 688,117 | 697,628 | 670,101 | ||||||||||||||||||||||||
Time deposits | 437,695 | 341,905 | 333,057 | 206,009 | 223,445 | ||||||||||||||||||||||||
Total interest-bearing deposits | 1,383,384 | 1,276,089 | 1,273,472 | 1,171,885 | 1,173,205 | ||||||||||||||||||||||||
Total deposits | 1,673,553 | 1,568,014 | 1,564,851 | 1,446,413 | 1,439,047 | ||||||||||||||||||||||||
Short-term borrowings | 23,458 | 59,136 | 36,136 | 41,344 | 22,278 | ||||||||||||||||||||||||
Long-term debt | — | — | — | — | 78,405 | ||||||||||||||||||||||||
Subordinated debentures | 40,597 | 40,567 | 40,538 | 40,508 | 40,760 | ||||||||||||||||||||||||
Accrued interest payable | 1,154 | 146 | 575 | 31 | 663 | ||||||||||||||||||||||||
Other liabilities | 32,001 | 29,069 | 31,805 | 19,787 | 22,876 | ||||||||||||||||||||||||
Total liabilities | 1,770,763 | 1,696,932 | 1,673,905 | 1,548,083 | 1,604,029 | ||||||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 6,566 | 6,561 | 6,556 | 6,535 | 6,506 | ||||||||||||||||||||||||
Surplus | 84,848 | 84,359 | 84,177 | 83,663 | 82,508 | ||||||||||||||||||||||||
Treasury stock | (18,033) | (11,896) | (8,860) | (8,860) | (8,025) | ||||||||||||||||||||||||
Unearned common stock held by employee stock ownership plan | (1,602) | (1,602) | (1,602) | (1,602) | (1,768) | ||||||||||||||||||||||||
Retained earnings | 92,405 | 87,815 | 83,104 | 84,916 | 78,408 | ||||||||||||||||||||||||
Accumulated other comprehensive (loss) income | (13,023) | (9,150) | (5,691) | 708 | 787 | ||||||||||||||||||||||||
Total stockholders’ equity | 151,161 | 156,087 | 157,684 | 165,360 | 158,416 | ||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,921,924 | $ | 1,853,019 | $ | 1,831,589 | $ | 1,713,443 | $ | 1,762,445 | |||||||||||||||||||
Common stock shares outstanding | 5,844 | 6,037 | 6,129 | 6,108 | 6,108 |
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Interest income | $ | 22,958 | $ | 20,037 | $ | 17,964 | $ | 18,248 | $ | 18,306 | |||||||||||||||||||
Interest expense | 4,932 | 2,486 | 1,929 | 1,926 | 2,049 | ||||||||||||||||||||||||
Net interest income | 18,026 | 17,551 | 16,035 | 16,322 | 16,257 | ||||||||||||||||||||||||
Provision (credit) for loan losses | 526 | 602 | 615 | (222) | 597 | ||||||||||||||||||||||||
Non-interest income | 10,224 | 10,403 | 13,102 | 17,086 | 22,122 | ||||||||||||||||||||||||
Non-interest expense | 20,261 | 19,706 | 21,433 | 23,737 | 25,481 | ||||||||||||||||||||||||
Income before income tax expense | 7,463 | 7,646 | 7,089 | 9,893 | 12,301 | ||||||||||||||||||||||||
Income tax expense | 1,665 | 1,708 | 1,554 | 2,174 | 2,863 | ||||||||||||||||||||||||
Net Income | $ | 5,798 | $ | 5,938 | $ | 5,535 | $ | 7,719 | $ | 9,438 | |||||||||||||||||||
Basic weighted average shares outstanding | 5,867 | 5,999 | 6,023 | 5,978 | 6,045 | ||||||||||||||||||||||||
Basic earnings per common share | $ | 0.99 | $ | 0.99 | $ | 0.92 | $ | 1.29 | $ | 1.56 | |||||||||||||||||||
Diluted weighted average shares outstanding | 6,059 | 6,199 | 6,262 | 6,210 | 6,231 | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.96 | $ | 0.96 | $ | 0.88 | $ | 1.24 | $ | 1.52 |
Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 17,664 | $ | 218 | $ | 144 | $ | 18,026 | $ | 15,777 | $ | 2 | $ | 478 | $ | 16,257 | |||||||||||||||||||||||||||||||
Provision for loan losses | 526 | — | — | 526 | 597 | — | — | 597 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision | 17,138 | 218 | 144 | 17,500 | 15,180 | 2 | 478 | 15,660 | |||||||||||||||||||||||||||||||||||||||
Non-interest income | 1,730 | 1,114 | 7,380 | 10,224 | 3,752 | 1,232 | 17,138 | 22,122 | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | 11,354 | 780 | 8,127 | 20,261 | 10,633 | 802 | 14,046 | 25,481 | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 7,514 | $ | 552 | $ | (603) | $ | 7,463 | $ | 8,299 | $ | 432 | $ | 3,570 | $ | 12,301 | |||||||||||||||||||||||||||||||
Efficiency ratio | 58.54 | % | 58.56 | % | 108.01 | % | 71.72 | % | 54.45 | % | 64.99 | % | 79.73 | % | 66.39 | % |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 50,197 | $ | 628 | $ | 785 | $ | 51,610 | $ | 45,340 | $ | (249) | $ | 1,698 | $ | 46,789 | |||||||||||||||||||||||||||||||
Provision for loan losses | 1,743 | — | — | 1,743 | 1,292 | — | — | 1,292 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision | 48,454 | 628 | 785 | 49,867 | 44,048 | (249) | 1,698 | 45,497 | |||||||||||||||||||||||||||||||||||||||
Non-interest income | 6,267 | 3,671 | 23,790 | 33,728 | 8,477 | 3,531 | 58,894 | 70,902 | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | 32,186 | 2,480 | 26,734 | 61,400 | 28,981 | 2,486 | 48,523 | 79,990 | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 22,535 | $ | 1,819 | $ | (2,159) | $ | 22,195 | $ | 23,544 | $ | 796 | $ | 12,069 | $ | 36,409 | |||||||||||||||||||||||||||||||
Efficiency ratio | 57.00 | % | 57.69 | % | 108.79 | % | 71.95 | % | 54.09 | % | 70.66 | % | 80.08 | % | 67.97 | % |
Pre-tax, Pre-provision Reconciliation | |||||||||||||||||||||||||||||
Q3'2022 | Q2'2022 | Q1'2022 | Q4'2021 | Q3'2021 | |||||||||||||||||||||||||
Income before income tax expense | $ | 7,463 | $ | 7,646 | $ | 7,089 | $ | 9,893 | $ | 12,301 | |||||||||||||||||||
Provision for loan losses | 526 | 602 | 615 | (222) | 597 | ||||||||||||||||||||||||
Pre-tax, pre-provision income | $ | 7,989 | $ | 8,248 | $ | 7,704 | $ | 9,671 | $ | 12,898 | |||||||||||||||||||
Bank | $ | 8,040 | $ | 7,458 | $ | 8,778 | $ | 6,829 | $ | 8,896 | |||||||||||||||||||
Wealth | 552 | 749 | 519 | 286 | 432 | ||||||||||||||||||||||||
Mortgage | (603) | 41 | (1,593) | 2,556 | 3,570 | ||||||||||||||||||||||||
Pre-tax, pre-provision income | $ | 7,989 | $ | 8,248 | $ | 7,704 | $ | 9,671 | $ | 12,898 | |||||||||||||||||||
Net Interest Margin, (TEY), Excluding PPP Loans & PPPLF Borrowings Yield on Interest Earning Assets, (TEY), Excluding PPP income | |||||||||||||||||||||||||||||
Q3'2022 | Q2'2022 | Q1'2022 | Q4'2021 | Q3'2021 | |||||||||||||||||||||||||
Net interest margin (TEY) (GAAP) | 4.01 | % | 4.07 | % | 3.89 | % | 3.83 | % | 3.83 | % | |||||||||||||||||||
Impact of PPP loans and PPPLF borrowings | (0.02) | % | (0.12) | % | (0.07) | % | (0.07) | % | (0.10) | % | |||||||||||||||||||
Net interest margin (TEY), excluding PPP loans and PPPLF borrowings | 3.99 | % | 3.95 | % | 3.82 | % | 3.76 | % | 3.73 | % | |||||||||||||||||||
Yield on interest earning assets, tax equivalent (GAAP) | 5.10 | % | 4.65 | % | 4.35 | % | 4.28 | % | 4.31 | % | |||||||||||||||||||
Impact of PPP loans | (0.01) | % | (0.11) | % | (0.04) | % | (0.05) | % | (0.07) | % | |||||||||||||||||||
Yield on interest earning assets (TEY), excluding PPP income | 5.09 | % | 4.54 | % | 4.31 | % | 4.23 | % | 4.24 | % |
Allowance For Loan Losses to Loans, Net of Fees and Costs, Excluding PPP Loans and Loans at Fair Value | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Allowance for loan losses (GAAP) | $ | 18,974 | $ | 18,805 | $ | 18,826 | $ | 18,758 | $ | 18,976 | |||||||||||||||||||
Loans, net of fees and costs (GAAP) | 1,610,349 | 1,518,893 | 1,431,906 | 1,386,457 | 1,378,670 | ||||||||||||||||||||||||
Less: PPP loans | (8,610) | (21,460) | (49,680) | (88,245) | (115,569) | ||||||||||||||||||||||||
Less: Loans fair valued | (14,702) | (16,212) | (17,375) | (17,558) | (17,142) | ||||||||||||||||||||||||
Loans, net of fees and costs, excluding loans at fair value and PPP loans (non-GAAP) | $ | 1,587,037 | $ | 1,481,221 | $ | 1,364,851 | $ | 1,280,654 | $ | 1,245,959 | |||||||||||||||||||
Allowance for loan losses to loans, net of fees and costs (GAAP) | 1.18 | % | 1.24 | % | 1.31 | % | 1.35 | % | 1.38 | % | |||||||||||||||||||
Allowance for loan losses to loans, net of fees and costs, excluding PPP loans and loans at fair value (non-GAAP) | 1.20 | % | 1.27 | % | 1.38 | % | 1.46 | % | 1.52 | % |
Tangible Common Equity Ratio Reconciliation - Corporation | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 151,161 | $ | 156,087 | $ | 157,684 | $ | 165,360 | $ | 158,416 | |||||||||||||||||||
Less: Goodwill and intangible assets | (4,125) | (4,176) | (4,227) | (4,278) | (4,329) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 147,036 | 151,911 | 153,457 | 161,082 | 154,087 | ||||||||||||||||||||||||
Total assets (GAAP) | 1,921,924 | 1,853,019 | 1,831,589 | 1,713,443 | 1,762,445 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (4,125) | (4,176) | (4,227) | (4,278) | (4,329) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 1,917,799 | $ | 1,848,843 | $ | 1,827,362 | $ | 1,709,165 | $ | 1,758,116 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Corporation (non-GAAP) | 7.67 | % | 8.22 | % | 8.40 | % | 9.42 | % | 8.76 | % |
Tangible Common Equity Ratio Reconciliation - Bank | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 188,386 | $ | 192,212 | $ | 194,347 | $ | 201,486 | $ | 196,009 | |||||||||||||||||||
Less: Goodwill and intangible assets | (4,125) | (4,176) | (4,227) | (4,278) | (4,329) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 184,261 | 188,036 | 190,120 | 197,208 | 191,680 | ||||||||||||||||||||||||
Total assets (GAAP) | 1,921,714 | 1,852,998 | 1,831,461 | 1,713,318 | 1,762,415 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (4,125) | (4,176) | (4,227) | (4,278) | (4,329) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 1,917,589 | $ | 1,848,822 | $ | 1,827,234 | $ | 1,709,040 | $ | 1,758,086 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Bank (non-GAAP) | 9.61 | % | 10.17 | % | 10.40 | % | 11.54 | % | 10.90 | % | |||||||||||||||||||
Tangible Book Value Reconciliation | |||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Book value per common share | $ | 25.86 | $ | 25.85 | $ | 25.73 | $ | 27.07 | $ | 25.94 | |||||||||||||||||||
Less: Impact of goodwill /intangible assets | 0.70 | 0.69 | 0.69 | 0.70 | 0.71 | ||||||||||||||||||||||||
Tangible book value per common share | $ | 25.16 | $ | 25.16 | $ | 25.04 | $ | 26.37 | $ | 25.23 |
OEQFDGT"+29U='!T2DB@$Q("
ME >NW3'HUS"LS[J"8681\ZU)T1N?E+S^2=/U.[-#
M*U/V=," H2OD !T+N"8=YCM,#)6;.*ED)EIPO.V$\6-)> =0":*C8^%2R+^?
MCIFS ]+>7.@+BES;Q\S\O" O,
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MM]LUI/B#?T_;