Penns Woods Bancorp, Inc. Reports Second Quarter 2020 Earnings - Penns Woods Bancorp (NASDAQ:PWOD)

WILLIAMSPORT, Pa., July 22, 2020 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. PWOD

Penns Woods Bancorp, Inc. achieved net income of $6.8 million for the six months ended June 30, 2020, resulting in basic and diluted earnings per share of $0.97.

Highlights

Net income, as reported under GAAP, for the three and six months ended June 30, 2020 was $3.8 million and $6.8 million, respectively compared to $4.2 and $8.2 million for the same period of 2019. Results for the three and six months ended June 30, 2020 compared to 2019 were impacted by an increase in after-tax securities gains of $138,000 (from a gain of $18,000 to a gain of $156,000) for the three month period and $108,000 (from a gain of $70,000 to a gain of $178,000) for the six month period.
The provision for loan losses increased $330,000 and $720,000, respectfully, for the three and six months ended June 30, 2020, to $645,000 and $1,395,000 compared to $315,000 and $675,000 for the 2019 periods. The increase is the result of the economic uncertainty caused by the COVID-19 pandemic.
Basic and diluted earnings per share for the three and six months ended June 30, 2020 were $0.53 and $0.97, respectively, compared to basic and diluted earnings per share of $0.60 and $1.16 for the three and six months ended June 30, 2019.
Return on average assets was 0.85% for the three months ended June 30, 2020, compared to 1.02% for the corresponding period of 2019. Return on average assets was 0.79% for the six months ended June 30, 2020, compared to 0.99% for the corresponding period of 2019.
Return on average equity was 9.59% for the three months ended June 30, 2020, compared to 11.42% for the corresponding period of 2019. Return on average equity was 8.75% for the six months ended June 30, 2020, compared to 11.27% for the corresponding period of 2019.

COVID-19 Activity

Approximately one third of employees working remotely.
As of June 30, 2020, loan modification/deferral program in place to defer payments up to 90 days for principal and/or interest with $241.6 million in loan principal affected by this program.
All COVID-19 related loan deferrals meet the requirements to not be considered a troubled debt restructuring.
Participated in the Paycheck Protection Program ("PPP") by primarily utilizing third parties to service and place the loans.
Significantly reduced deposit rates during the latter half of March 2020 continuing through June 2020.
Increased the provision for loan losses due to the economic uncertainty caused by the COVID-19 pandemic.
Net interest margin compression expected to continue as the rate environment remains below historical levels.
Total paycheck protection program loans held at June 30, 2020 total $12.3 million.

Net Income

Net income from core operations ("core earnings"), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains or losses, was $3.6 million for the three months ended June 30, 2020 compared to $4.2 million for the same period of 2019. Core earnings were $6.7 million for the six months ended June 30, 2020, compared to $8.1 million for the same period of 2019. Core earnings per share for the three months ended June 30, 2020 were $0.51 basic and diluted, compared to $0.60 basic and diluted core earnings per share for the same period of 2019. Core earnings per share for the six months ended June 30, 2020 were $0.95 basic and diluted, compared to $1.15 basic and diluted for the same period of 2019. Core return on average assets and core return on average equity were 0.81% and 9.19% for the three months ended June 30, 2020, compared to 1.01% and 11.37% for the corresponding period of 2019. Core return on average assets and core return on average equity were 0.77% and 8.52% for the six months ended June 30, 2020 compared to 0.98% and 11.18% for the corresponding period of 2019. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, and core earnings per share described in this press release to the comparable GAAP financial measures is included at the end of this press release.

Net Interest Margin

The net interest margin for the three and six months ended June 30, 2020 was 3.01% and 3.09%, compared to 3.39% and 3.37% for the corresponding periods of 2019. The decrease in the net interest margin was driven by a decrease in the yield of the investment portfolio of 64 and 63 basis points ("bps"), respectively, for the three and six month periods. Further compressing the net interest margin was the significant increase of interest-bearing deposits within the earning asset portfolio. These deposits carry a current yield of a few basis points with the balance steadily increasing as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing liabilities were decreased during the three months ended June 30, 2020 and will partially offset the decline in earning asset yield.

Assets

Total assets increased $126.9 million to $1.8 billion at June 30, 2020 compared to June 30, 2019. Net loans decreased $28.9 million to $1.3 billion at June 30, 2020 compared to June 30, 2019, as the COVID-19 business and travel restrictions curtailed various lending activities such as indirect auto, home equity, and commercial. Lending activity began to rebound as business and travel restrictions were lessened. The investment portfolio increased $17.9 million from June 30, 2019 to June 30, 2020 due to increases in the corporate and taxable municipal portfolios.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.82% at June 30, 2020 from 1.12% at June 30, 2019 as non-performing loans have decreased to $11.1 million at June 30, 2020 from $15.4 million at June 30, 2019 primarily due to a commercial loan relationship that was partially charged-off during the fourth quarter of 2019. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $312,000 for the six months ended June 30, 2020 impacted the allowance for loan losses, which was 0.96% of total loans at June 30, 2020 compared to 1.02% at June 30, 2019.

Deposits

Deposits increased $147.2 million to $1.5 billion at June 30, 2020 compared to June 30, 2019. Noninterest-bearing deposits increased $95.6 million to $418.3 million at June 30, 2020 compared to June 30, 2019. Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk adverse and seeking safety in a bank deposit. Emphasis during 2020 has been on increasing the utilization of electronic (internet and mobile) deposit banking among our customers. Utilization of internet and mobile banking has increased since the start of 2020 due to these efforts coupled with a change in consumer behavior due to the business and travel restrictions caused by the COVID-19 pandemic.

Shareholders' Equity

Shareholders' equity increased $8.1 million to $159.6 million at June 30, 2020 compared to June 30, 2019. The change in accumulated other comprehensive loss from $2.8 million at June 30, 2019 to $1.0 million at June 30, 2020 is a result of an increase in unrealized gains on available for sale securities (from an unrealized gain of $2,419,000 at June 30, 2019 to an unrealized gain of $4.2 million at June 30, 2020). The amount of accumulated other comprehensive loss at June 30, 2020 was also impacted by the change in net excess of the projected benefit obligation over the fair value of the plan assets of the defined benefit pension plan, resulting in a decrease in the net loss of $43,000. The current level of shareholders' equity equates to a book value per share of $22.66 at June 30, 2020 compared to $21.53 at June 30, 2019, and an equity to asset ratio of 8.68% at June 30, 2020 compared to 8.85% at June 30, 2019. Dividends declared for the six months ended June 30, 2020 and 2019 were $0.64 per share and $0.63 per share, respectively.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, and Union Counties, and Luzerne Bank, which operates nine branch offices providing financial services in Luzerne County. Investment and insurance products are offered through Jersey Shore State Bank's subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group. Insurance products are offered through United Insurance Solutions, LLC, a joint venture that is a subsidiary of the holding company.

NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company's performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company's core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain "forward-looking statements" including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company's organization, compensation and benefit plans; (iii) the effect on the Company's competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; or (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies. For a list of other factors which could affect the Company's results, see the Company's filings with the Securities and Exchange Commission, including "Item 1A. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Previous press releases and additional information can be obtained from the Company's website at www.pwod.com.

Contact:	Richard A. Grafmyre, Chief Executive Officer
	110 Reynolds Street
	Williamsport, PA 17702
	570-322-1111	e-mail: pwod@pwod.com

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)

	June 30,
(In Thousands, Except Share Data)	2020			2019			% Change
ASSETS:
Noninterest-bearing balances	$	26,932		$	21,102		27.63	%
Interest-bearing balances in other financial institutions	188,242			58,423			222.21	%
Total cash and cash equivalents	215,174			79,525			170.57	%

Investment debt securities, available for sale, at fair value	164,369			145,689			12.82	%
Investment equity securities, at fair value	1,291			1,841			(29.88	)%
Investment securities, trading	37			44			(15.91	)%
Restricted investment in bank stock, at fair value	14,849			15,087			(1.58	)%
Loans held for sale	5,146			2,880			78.68	%
Loans	1,349,347			1,379,285			(2.17	)%
Allowance for loan losses	(12,977		)	(14,001		)	(7.31	)%
Loans, net	1,336,370			1,365,284			(2.12	)%
Premises and equipment, net	32,873			33,483			(1.82	)%
Accrued interest receivable	8,068			5,708			41.35	%
Bank-owned life insurance	29,368			28,955			1.43	%
Goodwill	17,104			17,104			—	%
Intangibles	777			1,022			(23.97	)%
Operating lease right of use asset	3,231			4,279			(24.49	)%
Deferred tax asset	3,284			3,712			(11.53	)%
Other assets	6,423			6,887			(6.74	)%
TOTAL ASSETS	$	1,838,364		$	1,711,500		7.41	%

LIABILITIES:
Interest-bearing deposits	$	1,055,981		$	1,004,331		5.14	%
Noninterest-bearing deposits	418,324			322,755			29.61	%
Total deposits	1,474,305			1,327,086			11.09	%

Short-term borrowings	15,133			59,453			(74.55	)%
Long-term borrowings	171,885			154,597			11.18	%
Accrued interest payable	1,530			1,482			3.24	%
Operating lease liability	3,263			4,286			(23.87	)%
Other liabilities	12,640			13,055			(3.18	)%
TOTAL LIABILITIES	1,678,756			1,559,959			7.62	%

SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued	—			—			n/a
Common stock, par value $5.55, 22,500,000 shares authorized; 7,522,573 and 7,519,347 shares issued; 7,042,348 and 7,039,122 shares outstanding	41,792			41,773			0.05	%
Additional paid-in capital	51,956			51,087			1.70	%
Retained earnings	78,910			73,565			7.27	%
Accumulated other comprehensive loss:
Net unrealized gain on available for sale securities	4,194			2,419			73.38	%
Defined benefit plan	(5,159		)	(5,202		)	0.83	%
Treasury stock at cost, 480,225	(12,115		)	(12,115		)	—	%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY	159,578			151,527			5.31	%
Non-controlling interest	30			14			114.29	%
TOTAL SHAREHOLDERS' EQUITY	159,608			151,541			5.32	%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,838,364		$	1,711,500		7.41	%

PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)

	Three Months Ended June 30,							Six Months Ended June 30,
(In Thousands, Except Per Share Data)	2020		2019			% Change		2020			2019		% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	14,666	$	15,300		(4.14	)%	$	29,323		$	30,169	(2.80	)%
Investment securities:
Taxable	1,023		967			5.79	%	2,033			1,901		6.94	%
Tax-exempt	169		179			(5.59	)%	314			353		(11.05	)%
Dividend and other interest income	186		395			(52.91	)%	535			852		(37.21	)%
TOTAL INTEREST AND DIVIDEND INCOME	16,044		16,841			(4.73	)%	32,205			33,275		(3.22	)%

INTEREST EXPENSE:
Deposits	2,802		2,871			(2.40	)%	5,837			5,171		12.88	%
Short-term borrowings	7		178			(96.07	)%	29			783		(96.30	)%
Long-term borrowings	985		879			12.06	%	1,928			1,730		11.45	%
TOTAL INTEREST EXPENSE	3,794		3,928			(3.41	)%	7,794			7,684		1.43	%

NET INTEREST INCOME	12,250		12,913			(5.13	)%	24,411			25,591		(4.61	)%

PROVISION FOR LOAN LOSSES	645		315			104.76	%	1,395			675		106.67	%

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	11,605		12,598			(7.88	)%	23,016			24,916		(7.63	)%

NON-INTEREST INCOME:
Service charges	312		592			(47.30	)%	861			1,154		(25.39	)%
Debt securities gains (losses), available for sale	186		(2		)	9,400.00	%	207			11		1,781.82	%
Equity securities gains	11		22			(50.00	)%	31			65		(52.31	)%
Securities gains (losses), trading	1		3			(66.67	)%	(13		)	13		(200.00	)%
Bank-owned life insurance	144		123			17.07	%	336			291		15.46	%
Gain on sale of loans	1,028		347			196.25	%	1,472			663		122.02	%
Insurance commissions	92		119			(22.69	)%	219			253		(13.44	)%
Brokerage commissions	186		356			(47.75	)%	555			679		(18.26	)%
Debit card income	310		389			(20.31	)%	584			699		(16.45	)%
Other	351		520			(32.50	)%	806			895		(9.94	)%
TOTAL NON-INTEREST INCOME	2,621		2,469			6.16	%	5,058			4,723		7.09	%

NON-INTEREST EXPENSE:
Salaries and employee benefits	5,230		5,523			(5.31	)%	10,897			11,024		(1.15	)%
Occupancy	626		668			(6.29	)%	1,328			1,447		(8.22	)%
Furniture and equipment	828		784			5.61	%	1,688			1,536		9.90	%
Software amortization	236		188			25.53	%	486			395		23.04	%
Pennsylvania shares tax	323		285			13.33	%	608			578		5.19	%
Professional fees	658		727			(9.49	)%	1,280			1,249		2.48	%
Federal Deposit Insurance Corporation deposit insurance	185		236			(21.61	)%	379			504		(24.80	)%
Marketing	56		33			69.70	%	109			135		(19.26	)%
Intangible amortization	59		69			(14.49	)%	121			140		(13.57	)%
Other	1,410		1,546			(8.80	)%	2,825			2,865		(1.40	)%
TOTAL NON-INTEREST EXPENSE	9,611		10,059			(4.45	)%	19,721			19,873		(0.76	)%
INCOME BEFORE INCOME TAX PROVISION	4,615		5,008			(7.85	)%	8,353			9,766		(14.47	)%
INCOME TAX PROVISION	851		759			12.12	%	1,512			1,571		(3.76	)%
NET INCOME	$	3,764	$	4,249		(11.41	)%	$	6,841		$	8,195	(16.52	)%
Earnings attributable to noncontrolling interest	4		4			n/a		8			6		33.33	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'	$	3,760	$	4,245		(11.43	)%	$	6,833		$	8,189	(16.56	)%
EARNINGS PER SHARE - BASIC	$	0.53	$	0.60		(11.67	)%	$	0.97		$	1.16	(16.38	)%
EARNINGS PER SHARE - DILUTED	$	0.53	$	0.60		(11.67	)%	$	0.97		$	1.16	(16.38	)%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC	7,041,629		7,038,503			0.04	%	7,041,185			7,038,068		0.04	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED	7,041,629		7,038,503			0.04	%	7,041,185			7,038,068		0.04	%
DIVIDENDS DECLARED PER SHARE	$	0.32	$	0.31		3.23	%	$	0.64		$	0.63	1.59	%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

	Three Months Ended
	June 30, 2020						June 30, 2019
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	44,916	$	348	3.12	%	$	71,193	$	548	3.09	%
All other loans	1,294,745		14,391		4.47	%	1,313,388		14,867		4.54	%
Total loans	1,339,661		14,739		4.43	%	1,384,581		15,415		4.47	%

Taxable securities	147,352		1,193		3.29	%	130,802		1,300		4.03	%
Tax-exempt securities	28,280		213		3.06	%	27,971		227		3.29	%
Total securities	175,632		1,406		3.26	%	158,773		1,527		3.90	%

Interest-bearing deposits	144,948		16		0.04	%	10,431		62		2.38	%

Total interest-earning assets	1,660,241		16,161		3.92	%	1,553,785		17,004		4.39	%

Other assets	116,750						113,443

TOTAL ASSETS	$	1,776,991					$	1,667,228

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	190,243	67		0.14	%	$	170,142	51		0.12	%
Super Now deposits	251,691		409		0.65	%	246,454		453		0.74	%
Money market deposits	229,362		418		0.73	%	249,169		596		0.96	%
Time deposits	362,545		1,908		2.12	%	335,721		1,771		2.12	%
Total interest-bearing deposits	1,033,841		2,802		1.09	%	1,001,486		2,871		1.15	%

Short-term borrowings	11,174		7		0.83	%	32,086		178		2.23	%
Long-term borrowings	171,895		985		2.21	%	147,571		879		2.24	%
Total borrowings	183,069		992		2.12	%	179,657		1,057		2.23	%

Total interest-bearing liabilities	1,216,910		3,794		1.24	%	1,181,143		3,928		1.31	%

Demand deposits	384,591						317,623
Other liabilities	18,583						19,747
Shareholders' equity	156,907						148,715

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,776,991					$	1,667,228
Interest rate spread					2.68	%					3.08	%
Net interest income/margin			$	12,367	3.01	%			$	13,076	3.39	%

	Three Months Ended June 30,
	2020		2019
Total interest income	$	16,044	$	16,841
Total interest expense	3,794		3,928
Net interest income	12,250		12,913
Tax equivalent adjustment	117		163
Net interest income (fully taxable equivalent)	$	12,367	$	13,076

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

	Six Months Ended
	June 30, 2020						June 30, 2019
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	48,346	$	752	3.13	%	$	71,874	$	1,087	3.05	%
All other loans	1,299,893		28,729		4.44	%	1,313,121		29,310		4.50	%
Total loans	1,348,239		29,481		4.40	%	1,384,995		30,397		4.43	%

Taxable securities	145,070		2,466		3.46	%	128,431		2,650		4.18	%
Tax-exempt securities	26,027		397		3.10	%	27,344		447		3.31	%
Total securities	171,097		2,863		3.40	%	155,775		3,097		4.03	%

Interest-bearing deposits	85,832		102		0.24	%	8,493		103		2.45	%

Total interest-earning assets	1,605,168		32,446		4.07	%	1,549,263		33,597		4.38	%

Other assets	114,085						112,806

TOTAL ASSETS	$	1,719,253					$	1,662,069

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	184,042	158		0.17	%	$	168,543	81		0.10	%
Super Now deposits	235,758		833		0.71	%	239,022		832		0.70	%
Money market deposits	220,035		895		0.82	%	245,307		1,068		0.88	%
Time deposits	370,902		3,951		2.14	%	317,782		3,190		2.02	%
Total interest-bearing deposits	1,010,737		5,837		1.16	%	970,654		5,171		1.07	%

Short-term borrowings	11,011		29		0.53	%	63,881		783		2.47	%
Long-term borrowings	166,024		1,928		2.34	%	145,890		1,730		2.24	%
Total borrowings	177,035		1,957		2.22	%	209,771		2,513		2.31	%

Total interest-bearing liabilities	1,187,772		7,794		1.32	%	1,180,425		7,684		1.29	%

Demand deposits	355,704						315,380
Other liabilities	19,551						20,953
Shareholders' equity	156,226						145,311

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,719,253					$	1,662,069
Interest rate spread					2.75	%					3.09	%
Net interest income/margin			$	24,652	3.09	%			$	25,913	3.37	%

	Six Months Ended June 30,
	2020		2019
Total interest income	$	32,205	$	33,275
Total interest expense	7,794		7,684
Net interest income	24,411		25,591
Tax equivalent adjustment	241		322
Net interest income (fully taxable equivalent)	$	24,652	$	25,913

(Dollars in Thousands, Except Per Share Data)	Quarter Ended
	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
Operating Data
Net income	$	3,760		$	3,073		$	2,833		$	4,650		$	4,245
Net interest income	12,250			12,161			12,321			12,903			12,913
Provision for loan losses	645			750			1,700			360			315
Net security gains	198			28			489			170			23
Non-interest income, excluding net security gains	2,423			2,409			2,418			2,652			2,446
Non-interest expense	9,611			10,110			10,294			9,541			10,059

Performance Statistics
Net interest margin	3.01		%	3.19		%	3.22		%	3.32		%	3.39		%
Annualized return on average assets	0.85		%	0.74		%	0.68		%	1.10		%	1.02		%
Annualized return on average equity	9.60		%	7.83		%	7.22		%	12.18		%	11.42		%
Annualized net loan charge-offs to average loans	0.05		%	0.04		%	1.19		%	0.03		%	0.03		%
Net charge-offs	168			144			4,055			112			106
Efficiency ratio	65.10		%	68.96		%	69.42		%	60.98		%	65.04		%

Per Share Data
Basic earnings per share	$	0.53		$	0.44		$	0.40		$	0.66		$	0.60
Diluted earnings per share	0.53			0.43			0.39			0.66			0.60
Dividend declared per share	0.32			0.32			0.32			0.31			0.31
Book value	22.66			22.23			22.01			22.03			21.53
Common stock price:
High	27.75			35.36			35.58			30.93			30.17
Low	20.01			19.05			29.68			26.87			26.03
Close	22.71			24.30			35.58			30.83			30.17
Weighted average common shares:
Basic	7,042			7,041			7,040			7,037			7,038
Fully Diluted	7,042			7,103			7,338			7,037			7,038
End-of-period common shares:
Issued	7,523			7,521			7,521			7,518			7,518
Treasury	480			480			480			480			480

(Dollars in Thousands, Except Per Share Data)	Quarter Ended
	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
Financial Condition Data:
General
Total assets	$	1,838,364		$	1,688,508		$	1,665,323		$	1,673,095		$	1,711,500
Loans, net	1,336,370			1,336,900			1,343,650			1,350,735			1,365,284
Goodwill	17,104			17,104			17,104			17,104			17,104
Intangibles	777			836			898			960			1,022
Total deposits	1,474,305			1,326,734			1,324,005			1,332,407			1,327,086
Noninterest-bearing	418,324			332,759			334,746			327,329			322,755
Savings	195,964			183,929			176,732			171,370			171,992
NOW	268,348			229,919			218,605			219,466			238,410
Money Market	247,753			204,832			216,038			239,926			238,352
Time Deposits	343,915			375,295			377,884			374,316			355,577
Total interest-bearing deposits	1,055,980			993,975			989,259			1,005,078			1,004,331

Core deposits*	1,130,389			951,439			946,121			958,091			971,509
Shareholders' equity	159,578			156,562			154,960			155,061			151,527

Asset Quality
Non-performing loans	$	11,097		$	11,300		$	12,421		$	17,208		$	15,383
Non-performing loans to total assets	0.60		%	0.67		%	0.75		%	1.03		%	0.90		%
Allowance for loan losses	12,977			12,500			11,894			14,249			14,001
Allowance for loan losses to total loans	0.96		%	0.93		%	0.88		%	1.04		%	1.02		%
Allowance for loan losses to non-performing loans	116.94		%	110.62		%	95.76		%	82.80		%	91.02		%
Non-performing loans to total loans	0.82		%	0.84		%	0.92		%	1.26		%	1.12		%

Capitalization
Shareholders' equity to total assets	8.68		%	9.27		%	9.31		%	9.27		%	8.85		%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data)	2020			2019			2020			2019
GAAP net income	$	3,760		$	4,245		$	6,833		$	8,189
Less: net securities gains, net of tax	156			18			178			70
Non-GAAP core earnings	$	3,604		$	4,227		$	6,655		$	8,119

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Return on average assets (ROA)	0.85		%	1.02		%	0.79		%	0.99		%
Less: net securities gains, net of tax	0.04		%	0.01		%	0.02		%	0.01		%
Non-GAAP core ROA	0.81		%	1.01		%	0.77		%	0.98		%

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Return on average equity (ROE)	9.59		%	11.42		%	8.75		%	11.27		%
Less: net securities gains, net of tax	0.40		%	0.05		%	0.23		%	0.09		%
Non-GAAP core ROE	9.19		%	11.37		%	8.52		%	11.18		%

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Basic earnings per share (EPS)	$	0.53		$	0.60		$	0.97		$	1.16
Less: net securities gains, net of tax	0.02			—			0.02			0.01
Non-GAAP basic core EPS	$	0.51		$	0.60		$	0.95		$	1.15

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Diluted EPS	$	0.53		$	0.60		$	0.97		$	1.16
Less: net securities gains, net of tax	0.02			—			0.02			0.01
Non-GAAP diluted core EPS	$	0.51		$	0.60		$	0.95		$	1.15

Loan Deferrals

(In Thousands)	Amount
Commercial, financial, and agricultural	$	28,482
Real estate mortgage:
Residential	66,133
Commercial	132,217
Construction	7,250
Consumer automobile loans	283
Other consumer installment loans	7,243
Total loan deferrals	$	241,608

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