Exhibit 99.1
Press Release – For Immediate Release
July 19, 2007
Penns Woods Bancorp, Inc. Reports Second Quarter 2007 Earnings
Jersey Shore, PA – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three and six months ended June 30, 2007 of $2,335,000 and $4,616,000 compared to $2,434,000 and $4,889,000 for the same periods of 2006. Basic and dilutive earnings per share for the three months ended June 30, 2007 were $0.60 as compared to $0.62 for the three months ended June 30, 2006. The six months ended June 30, 2007 had basic and diluted earnings per share of $1.19 as compared to $1.24 for the six months ended June 30, 2006. Return on average assets and return on average equity were 1.58% and 12.57% for the three months ended June 30, 2007 as compared to 1.70% and 13.34% for the corresponding period of 2006. Earnings for the six months ended June 30, 2007 correlate to a return on average assets and return on average equity of 1.57% and 12.35% as compared to 1.71% and 13.12% for the six months ended June 30, 2006.
Net income from core operations (“operating earnings”), which excludes net security gains, amounted to $2,142,000 and $4,207,000 for the three and six months ended June 30, 2007 as compared to operating earnings of $2,259,000 and $4,345,000 for the same periods of 2006. Operating earnings per share for the three months ended June 30, 2007 increased $0.02 to $0.55 basic and dilutive from the previous three month period. The six months ended June 30, 2007 operating earnings have been impacted by a decline in the net interest margin, increased operating costs due in part to the opening of our Montoursville branch in August 2006, and by operational growth that occurred throughout 2006. The impact of these items resulted in basic and dilutive operating earnings of $1.08 as compared to $1.10 for the six months ended June 30, 2006.
The net interest margin for the three and six months ended June 30, 2007 was 3.95% compared to 4.12% and 4.10% for the corresponding periods of 2006, and has remained substantially unchanged compared to the net interest margin for the three months ended March 31, 2007. The decrease in the net interest margin was due to the cost of interest bearing liabilities increasing at approximately twice the rate of the increase in the yield on earning assets. The increase in the cost of interest bearing liabilities was driven primarily by the cost of time deposits increasing 93 basis points (“bp”) for the three months ended June 30, 2007 and 96 bp for the six month period as compared to the previous year. The increase in cost of time deposits was impacted by the Federal Open Market Committee rate increases during 2006 of 100 bp and our strategic decision to gather time deposits and utilize the deposits to reduce the level of higher cost short-term Federal Home Loan Bank advances.
“The second quarter of 2007 was a time of progress for the company. During May, the drive-thru expansion and installation of a drive-up ATM at our Main Street, Jersey Shore branch was completed. Feedback from customers regarding the project has been positive and the new ATM has quickly become one of the most used within our network. Our merchant card program continues to gather momentum with June being one of the most successful months in terms of new customer enrollment. Our continued strategic decision to not compromise our credit standards to foster loan growth has produced a nonperforming loans to total loans ratio of 0.31% at June 30, 2007 and net loan charge-offs to average loans of 0.05% for the three month period. The low level of nonperforming loans and charge-offs allowed for the provision for loan losses to be reduced to $10,000 for the three months ended June 30, 2007 as compared to $198,000 for the same period of 2006. Funding the balance sheet in the least costly manner continues to be a challenge that we face each day. We continue to stay the course that we previously set to shorten liabilities and to attract 8 to 12 month time deposits to replace higher cost short-term Federal Home Loan Bank advances. The continued strength of the loan portfolio, liability repositioning, and other strategic actions resulted in strong second quarter 2007 financial ratios. The quarter saw a halt in a declining interest margin, a $0.02 improvement over the first quarter in earnings per share from operating earnings, and increases in return on assets and return on equity,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.
Total assets increased $10,267,000 to $586,572,000 at June 30, 2007 as compared to June 30, 2006. Continued emphasis on originating quality loans has led to net growth in the loan portfolio of $9,439,000, or 2.8% since June 30, 2006. Total deposits increased 7.8% to $405,903,000 at June 30, 2007 as compared to June 30, 2006 due to short-term certificates of deposit growth and purchased brokered deposits. These deposits were used to fund the loan portfolio and to repay $19,066,000 of higher cost borrowings.
Shareholders’ equity decreased $1,912,000 to $69,720,000 at June 30, 2007 as accumulated comprehensive income decreased $2,761,000, and $1,761,000 in treasury stock was strategically purchased as part of the previously announced stock buyback plan, while net income outpaced dividends paid. The decrease in accumulated comprehensive income is the result of a decrease in market value, or net unrealized gains, of the investment portfolio at June 30, 2007 as compared to June 30, 2006, and the net excess of the projected benefit obligation over the market value of the plan assets of the defined benefit pension plan. The current level of shareholders’ equity equates to a book value per share of $17.93 at June 30, 2007 as compared to $18.22 at June 30, 2006 and equity to asset ratio of 11.89% at June 30, 2007. Book value per share, excluding accumulated
comprehensive income, was $18.97 at June 30, 2007 as compared to $18.54 at June 30, 2006. During the three and six months ended June 30, 2007 cash dividends of $0.44 and $0.88 per share were paid to shareholders.
“Our commitment to providing a healthy dividend yield in excess of four percent and to conduct stock repurchases on the open market remains steadfast. The current dividend yield of approximately 5% coupled with the purchase of 15,030 shares on the open market during the first half of 2007 illustrate our commitment to building shareholder value. The strength of our earnings has allowed us to continue and maintain these programs,” commented Mr. Walko. The range of closing prices for Penns Woods Bancorp, Inc. stock was between $33.86 and $35.00 during the three months ended June 30, 2007 and between $33.86 and $37.75 during the six months ended June 30, 2007.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, and Centre Counties. Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.
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. Because certain of these 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; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.
Previous press releases and additional information can be obtained from the Company’s website at www.jssb.com.
Contact: |
| Ronald A. Walko, President and Chief Executive Officer | ||
|
| 115 South Main Street | ||
|
| Jersey Shore, PA 17740 | ||
|
| 570-322-1111 | email-jssb@jssb.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) |
| 2007 |
| 2006 |
| % Change |
| ||
|
|
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
|
|
| ||
Noninterest-bearing balances |
| $ | 11,315 |
| $ | 14,181 |
| -20.2 | % |
Interest-bearing deposits in other financial institutions |
| 16 |
| 27 |
| -40.7 | % | ||
Total cash and cash equivalents |
| 11,331 |
| 14,208 |
| -20.2 | % | ||
|
|
|
|
|
|
|
| ||
Investment securities, available for sale, at fair value |
| 181,308 |
| 180,553 |
| 0.4 | % | ||
Investment securities held to maturity (fair value of $277 and $284) |
| 275 |
| 281 |
| -2.1 | % | ||
Loans held for sale |
| 5,345 |
| 5,777 |
| -7.5 | % | ||
Loans |
| 356,175 |
| 346,569 |
| 2.8 | % | ||
Less: Allowance for loan losses |
| 4,162 |
| 3,995 |
| 4.2 | % | ||
Loans, net |
| 352,013 |
| 342,574 |
| 2.8 | % | ||
Premises and equipment, net |
| 6,964 |
| 6,605 |
| 5.4 | % | ||
Accrued interest receivable |
| 3,015 |
| 2,649 |
| 13.8 | % | ||
Bank-owned life insurance |
| 12,149 |
| 10,896 |
| 11.5 | % | ||
Investment in limited partnerships |
| 4,666 |
| 4,988 |
| -6.5 | % | ||
Goodwill |
| 3,032 |
| 3,032 |
| 0.0 | % | ||
Other assets |
| 6,474 |
| 4,742 |
| 36.5 | % | ||
TOTAL ASSETS |
| $ | 586,572 |
| $ | 576,305 |
| 1.8 | % |
|
|
|
|
|
|
|
| ||
LIABILITIES |
|
|
|
|
|
|
| ||
Interest-bearing deposits |
| $ | 335,903 |
| $ | 302,634 |
| 11.0 | % |
Noninterest-bearing deposits |
| 70,000 |
| 73,969 |
| -5.4 | % | ||
Total deposits |
| 405,903 |
| 376,603 |
| 7.8 | % | ||
|
|
|
|
|
|
|
| ||
Short-term borrowings |
| 28,359 |
| 40,925 |
| -30.7 | % | ||
Long-term borrowings, Federal Home Loan Bank (FHLB) |
| 76,378 |
| 82,878 |
| -7.8 | % | ||
Accrued interest payable |
| 1,647 |
| 1,171 |
| 40.6 | % | ||
Other liabilities |
| 4,565 |
| 3,096 |
| 47.4 | % | ||
TOTAL LIABILITIES |
| 516,852 |
| 504,673 |
| 2.4 | % | ||
|
|
|
|
|
|
|
| ||
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
| ||
Common stock, par value $8.33, 10,000,000 shares authorized; |
| 33,378 |
| 33,351 |
| 0.1 | % | ||
Additional paid-in capital |
| 17,852 |
| 17,772 |
| 0.5 | % | ||
Retained earnings |
| 26,974 |
| 24,471 |
| 10.2 | % | ||
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
| ||
Net unrealized loss on available for sale securities |
| (3,455 | ) | (1,273 | ) | 171.4 | % | ||
Defined benefit plan |
| (579 | ) | — |
| n/a |
| ||
Less: Treasury stock at cost, 117,802 and 70,372 shares |
| (4,450 | ) | (2,689 | ) | 65.5 | % | ||
TOTAL SHAREHOLDERS’ EQUITY |
| 69,720 |
| 71,632 |
| -2.7 | % | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 586,572 |
| $ | 576,305 |
| 1.8 | % |
PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
|
| Three Months Ended |
| Six Months Ended |
| ||||||||||||
(In Thousands, Except Per Share Data) |
| 2007 |
| 2006 |
| % Change |
| 2007 |
| 2006 |
| % Change |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loans including fees |
| $ | 6,516 |
| $ | 6,086 |
| 7.1 | % | $ | 12,939 |
| $ | 11,895 |
| 8.8 | % |
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable |
| 924 |
| 896 |
| 3.1 | % | 1,747 |
| 1,819 |
| -4.0 | % | ||||
Tax-exempt |
| 1,052 |
| 1,000 |
| 5.2 | % | 2,163 |
| 1,989 |
| 8.7 | % | ||||
Dividend and other interest income |
| 301 |
| 365 |
| -17.5 | % | 623 |
| 666 |
| -6.5 | % | ||||
TOTAL INTEREST AND DIVIDEND INCOME |
| 8,793 |
| 8,347 |
| 5.3 | % | 17,472 |
| 16,369 |
| 6.7 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Deposits |
| 2,868 |
| 1,968 |
| 45.7 | % | 5,380 |
| 3,805 |
| 41.4 | % | ||||
Short-term borrowings |
| 227 |
| 509 |
| -55.4 | % | 732 |
| 915 |
| -20.0 | % | ||||
Long-term borrowings, FHLB |
| 904 |
| 944 |
| -4.2 | % | 1,826 |
| 1,890 |
| -3.4 | % | ||||
TOTAL INTEREST EXPENSE |
| 3,999 |
| 3,421 |
| 16.9 | % | 7,938 |
| 6,610 |
| 20.1 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NET INTEREST INCOME |
| 4,794 |
| 4,926 |
| -2.7 | % | 9,534 |
| 9,759 |
| -2.3 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
PROVISION FOR LOAN LOSSES |
| 10 |
| 198 |
| -94.9 | % | 50 |
| 396 |
| -87.4 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
| 4,784 |
| 4,728 |
| 1.2 | % | 9,484 |
| 9,363 |
| 1.3 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Deposit service charges |
| 567 |
| 587 |
| -3.4 | % | 1,108 |
| 1,177 |
| -5.9 | % | ||||
Securities gains, net |
| 293 |
| 265 |
| 10.6 | % | 619 |
| 824 |
| -24.9 | % | ||||
Bank-owned life insurance |
| 86 |
| 90 |
| -4.4 | % | 201 |
| 178 |
| 12.9 | % | ||||
Gain on sale of loans |
| 234 |
| 210 |
| 11.4 | % | 372 |
| 360 |
| 3.3 | % | ||||
Insurance commissions |
| 550 |
| 670 |
| -17.9 | % | 988 |
| 1,230 |
| -19.7 | % | ||||
Other |
| 456 |
| 394 |
| 15.7 | % | 872 |
| 784 |
| 11.2 | % | ||||
TOTAL NON-INTEREST INCOME |
| 2,186 |
| 2,216 |
| -1.4 | % | 4,160 |
| 4,553 |
| -8.6 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
| 2,301 |
| 2,214 |
| 3.9 | % | 4,582 |
| 4,446 |
| 3.1 | % | ||||
Occupancy, net |
| 337 |
| 275 |
| 22.5 | % | 668 |
| 518 |
| 29.0 | % | ||||
Furniture and equipment |
| 297 |
| 288 |
| 3.1 | % | 583 |
| 585 |
| -0.3 | % | ||||
Pennsylvania shares tax |
| 161 |
| 151 |
| 6.6 | % | 322 |
| 296 |
| 8.8 | % | ||||
Other |
| 1,244 |
| 1,150 |
| 8.2 | % | 2,313 |
| 2,184 |
| 5.9 | % | ||||
TOTAL NON-INTEREST EXPENSE |
| 4,340 |
| 4,078 |
| 6.4 | % | 8,468 |
| 8,029 |
| 5.5 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
INCOME BEFORE INCOME TAX PROVISION |
| 2,630 |
| 2,866 |
| -8.2 | % | 5,176 |
| 5,887 |
| -12.1 | % | ||||
INCOME TAX PROVISION |
| 295 |
| 432 |
| -31.7 | % | 560 |
| 998 |
| -43.9 | % | ||||
NET INCOME |
| $ | 2,335 |
| $ | 2,434 |
| -4.1 | % | $ | 4,616 |
| $ | 4,889 |
| -5.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
EARNINGS PER SHARE - BASIC |
| $ | 0.60 |
| $ | 0.62 |
| -3.2 | % | $ | 1.19 |
| $ | 1.24 |
| -4.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
EARNINGS PER SHARE - DILUTED |
| $ | 0.60 |
| $ | 0.62 |
| -3.2 | % | $ | 1.19 |
| $ | 1.24 |
| -4.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC |
| 3,889,139 |
| 3,939,424 |
| -1.3 | % | 3,893,286 |
| 3,950,295 |
| -1.4 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED |
| 3,889,401 |
| 3,939,911 |
| -1.3 | % | 3,893,586 |
| 3,950,781 |
| -1.4 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
DIVIDENDS PER SHARE |
| $ | 0.44 |
| $ | 0.43 |
| 2.3 | % | $ | 0.88 |
| $ | 0.85 |
| 3.5 | % |
PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES
|
| For the Three Months Ended |
| ||||||||||||||
|
| June 30, 2007 |
| June 30, 2006 |
| ||||||||||||
|
| Average Balance |
| Interest |
| Average Rate |
| Average Balance |
| Interest |
| Average Rate |
| ||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Tax-exempt loans |
| $ | 7,819 |
| $ | 120 |
| 6.16 | % | $ | 7,887 |
| $ | 123 |
| 6.26 | % |
All other loans |
| 353,019 |
| 6,437 |
| 7.31 | % | 341,091 |
| 6,005 |
| 7.06 | % | ||||
Total loans |
| 360,838 |
| 6,557 |
| 7.29 | % | 348,978 |
| 6,128 |
| 7.04 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable securities |
| 83,328 |
| 1,209 |
| 5.80 | % | 94,134 |
| 1,259 |
| 5.35 | % | ||||
Tax-exempt securities |
| 100,403 |
| 1,594 |
| 6.35 | % | 90,530 |
| 1,515 |
| 6.69 | % | ||||
Total securities |
| 183,731 |
| 2,803 |
| 6.10 | % | 184,664 |
| 2,774 |
| 6.01 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest bearing deposits |
| 1,230 |
| 16 |
| 5.22 | % | 32 |
| 2 |
| 25.07 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-earning assets |
| 545,799 |
| 9,376 |
| 6.88 | % | 533,674 |
| 8,904 |
| 6.69 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other assets |
| 43,594 |
|
|
|
|
| 39,143 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
TOTAL ASSETS |
| $ | 589,393 |
|
|
|
|
| $ | 572,817 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Savings |
| $ | 59,906 |
| 110 |
| 0.74 | % | $ | 63,648 |
| 136 |
| 0.86 | % | ||
Super Now deposits |
| 47,531 |
| 153 |
| 1.29 | % | 48,282 |
| 169 |
| 1.40 | % | ||||
Money Market deposits |
| 26,346 |
| 158 |
| 2.41 | % | 24,165 |
| 121 |
| 2.01 | % | ||||
Time deposits |
| 205,554 |
| 2,447 |
| 4.77 | % | 160,977 |
| 1,542 |
| 3.84 | % | ||||
Total Deposits |
| 339,337 |
| 2,868 |
| 3.39 | % | 297,072 |
| 1,968 |
| 2.66 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Short-term borrowings |
| 22,239 |
| 227 |
| 4.09 | % | 44,793 |
| 509 |
| 4.56 | % | ||||
Long-term borrowings |
| 77,971 |
| 904 |
| 4.65 | % | 82,878 |
| 944 |
| 4.57 | % | ||||
Total borrowings |
| 100,210 |
| 1,131 |
| 4.53 | % | 127,671 |
| 1,453 |
| 4.56 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-bearing liabilities |
| 439,547 |
| 3,999 |
| 3.65 | % | 424,743 |
| 3,421 |
| 3.23 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 68,677 |
|
|
|
|
| 70,961 |
|
|
|
|
| ||||
Other liabilities |
| 6,888 |
|
|
|
|
| 4,129 |
|
|
|
|
| ||||
Shareholders’ equity |
| 74,281 |
|
|
|
|
| 72,984 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 589,393 |
|
|
|
|
| $ | 572,817 |
|
|
|
|
| ||
Interest rate spread |
|
|
|
|
| 3.24 | % |
|
|
|
| 3.46 | % | ||||
Net interest income/margin |
|
|
| $ | 5,377 |
| 3.95 | % |
|
| $ | 5,483 |
| 4.12 | % | ||
|
| For the Three Months Ended |
| ||||
|
| 2007 |
| 2006 |
| ||
|
|
|
|
|
| ||
Total interest income |
| $ | 8,793 |
| $ | 8,347 |
|
Total interest expense |
| 3,999 |
| 3,421 |
| ||
|
|
|
|
|
| ||
Net interest income |
| 4,794 |
| 4,926 |
| ||
Tax equivalent adjustment |
| 583 |
| 557 |
| ||
|
|
|
|
|
| ||
Net interest income (fully taxable equivalent) |
| $ | 5,377 |
| $ | 5,483 |
|
|
| For the Six Months Ended |
| ||||||||||||||
|
| June 30, 2007 |
| June 30, 2006 |
| ||||||||||||
|
| Average Balance |
| Interest |
| Average Rate |
| Average Balance |
| Interest |
| Average Rate |
| ||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Tax-exempt loans |
| $ | 8,022 |
| $ | 247 |
| 6.21 | % | $ | 8,038 |
| $ | 248 |
| 6.22 | % |
All other loans |
| 352,829 |
| 12,776 |
| 7.30 | % | 338,041 |
| 11,731 |
| 7.00 | % | ||||
Total loans |
| 360,851 |
| 13,023 |
| 7.28 | % | 346,079 |
| 11,979 |
| 6.98 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable securities |
| 82,952 |
| 2,353 |
| 5.67 | % | 95,880 |
| 2,483 |
| 5.18 | % | ||||
Tax-exempt securities |
| 101,588 |
| 3,277 |
| 6.45 | % | 90,839 |
| 3,014 |
| 6.64 | % | ||||
Total securities |
| 184,540 |
| 5,630 |
| 6.10 | % | 186,719 |
| 5,497 |
| 5.89 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest bearing deposits |
| 629 |
| 17 |
| 5.45 | % | 22 |
| 2 |
| 18.33 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-earning assets |
| 546,020 |
| 18,670 |
| 6.88 | % | 532,820 |
| 17,478 |
| 6.60 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other assets |
| 41,723 |
|
|
|
|
| 38,669 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
TOTAL ASSETS |
| $ | 587,743 |
|
|
|
|
| $ | 571,489 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Savings |
| $ | 59,454 |
| 215 |
| 0.73 | % | $ | 63,184 |
| 256 |
| 0.82 | % | ||
Super Now deposits |
| 46,196 |
| 302 |
| 1.32 | % | 48,223 |
| 318 |
| 1.33 | % | ||||
Money Market deposits |
| 24,962 |
| 283 |
| 2.29 | % | 24,642 |
| 237 |
| 1.94 | % | ||||
Time deposits |
| 195,712 |
| 4,580 |
| 4.72 | % | 160,488 |
| 2,994 |
| 3.76 | % | ||||
Total Deposits |
| 326,324 |
| 5,380 |
| 3.32 | % | 296,537 |
| 3,805 |
| 2.59 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Short-term borrowings |
| 32,206 |
| 732 |
| 4.58 | % | 43,100 |
| 915 |
| 4.28 | % | ||||
Long-term borrowings |
| 79,339 |
| 1,826 |
| 4.64 | % | 83,603 |
| 1,890 |
| 4.56 | % | ||||
Total borrowings |
| 111,545 |
| 2,558 |
| 4.62 | % | 126,703 |
| 2,805 |
| 4.46 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-bearing liabilities |
| 437,869 |
| 7,938 |
| 3.66 | % | 423,240 |
| 6,610 |
| 3.15 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 68,446 |
|
|
|
|
| 68,996 |
|
|
|
|
| ||||
Other liabilities |
| 6,673 |
|
|
|
|
| 4,709 |
|
|
|
|
| ||||
Shareholders’ equity |
| 74,755 |
|
|
|
|
| 74,544 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 587,743 |
|
|
|
|
| $ | 571,489 |
|
|
|
|
| ||
Interest rate spread |
|
|
|
|
| 3.22 | % |
|
|
|
| 3.45 | % | ||||
Net interest income/margin |
|
|
| $ | 10,732 |
| 3.95 | % |
|
| $ | 10,868 |
| 4.10 |
| ||
|
| For the Six Months Ended |
| ||||
|
| June 30, |
| ||||
|
| 2007 |
| 2006 |
| ||
|
|
|
|
|
| ||
Total interest income |
| $ | 17,472 |
| $ | 16,369 |
|
Total interest expense |
| 7,938 |
| 6,610 |
| ||
|
|
|
|
|
| ||
Net interest income |
| 9,534 |
| 9,759 |
| ||
Tax equivalent adjustment |
| 1,198 |
| 1,109 |
| ||
|
|
|
|
|
| ||
Net interest income (fully taxable equivalent) |
| $ | 10,732 |
| $ | 10,868 |
|
|
| Quarter Ended |
| |||||||||||||
(Dollars in Thousands, Except Per Share Data) |
| 6/30/2007 |
| 3/31/2007 |
| 12/31/2006 |
| 9/30/2006 |
| 6/30/2006 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating Data |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income |
| $ | 2,335 |
| $ | 2,281 |
| $ | 2,294 |
| $ | 2,464 |
| $ | 2,434 |
|
Net interest income |
| 4,794 |
| 4,740 |
| 4,944 |
| 4,840 |
| 4,926 |
| |||||
Provision for loan losses |
| 10 |
| 40 |
| 150 |
| 89 |
| 198 |
| |||||
Net security gains |
| 293 |
| 326 |
| 294 |
| 561 |
| 265 |
| |||||
Non-interest income, excluding net security gains |
| 1,893 |
| 1,648 |
| 1,795 |
| 1,826 |
| 1,951 |
| |||||
Non-interest expense |
| 4,340 |
| 4,128 |
| 4,186 |
| 4,114 |
| 4,078 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Performance Statistics |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest margin |
| 3.95 | % | 3.95 | % | 3.97 | % | 4.00 | % | 4.12 | % | |||||
Annualized return on average assets |
| 1.58 | % | 1.56 | % | 1.56 | % | 1.70 | % | 1.70 | % | |||||
Annualized return on average equity |
| 12.57 | % | 12.13 | % | 12.18 | % | 13.41 | % | 13.34 | % | |||||
Annualized net loan charge-offs to avg loans |
| 0.05 | % | 0.03 | % | 0.01 | % | 0.04 | % | 0.04 | % | |||||
Net charge-offs (recoveries) |
| 49 |
| 24 |
| 10 |
| 39 |
| 37 |
| |||||
Efficiency ratio |
| 64.9 |
| 64.6 |
| 62.1 |
| 61.7 |
| 59.3 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Per Share Data |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic earnings per share |
| $ | 0.60 |
| $ | 0.59 |
| $ | 0.59 |
| $ | 0.62 |
| $ | 0.62 |
|
Diluted earnings per share |
| 0.60 |
| 0.59 |
| 0.59 |
| 0.62 |
| 0.62 |
| |||||
Dividend declared per share |
| 0.44 |
| 0.44 |
| 0.44 |
| 0.44 |
| 0.43 |
| |||||
Book value |
| 17.93 |
| 19.06 |
| 19.12 |
| 19.08 |
| 18.22 |
| |||||
Common stock price: |
|
|
|
|
|
|
|
|
|
|
| |||||
High |
| 35.00 |
| 37.75 |
| 38.59 |
| 38.48 |
| 39.50 |
| |||||
Low |
| 33.86 |
| 35.00 |
| 36.20 |
| 37.02 |
| 36.50 |
| |||||
Close |
| 34.24 |
| 35.50 |
| 37.80 |
| 38.20 |
| 38.48 |
| |||||
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
| 3,889 |
| 3,897 |
| 3,909 |
| 3,927 |
| 3,939 |
| |||||
Fully Diluted |
| 3,889 |
| 3,898 |
| 3,910 |
| 3,928 |
| 3,940 |
| |||||
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
| |||||
Issued |
| 4,005 |
| 4,005 |
| 4,004 |
| 4,002 |
| 4,002 |
| |||||
Treasury |
| 118 |
| 113 |
| 103 |
| 86 |
| 70 |
| |||||
|
| Quarter Ended |
| |||||||||||||
(Dollars in Thousands, Except Per Share Data) |
| 6/30/2007 |
| 3/31/2007 |
| 12/31/2006 |
| 9/30/2006 |
| 6/30/2006 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Financial Condition Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
General |
|
|
|
|
|
|
|
|
|
|
| |||||
Total assets |
| $ | 586,572 |
| $ | 586,591 |
| $ | 592,285 |
| $ | 586,752 |
| $ | 576,305 |
|
Loans, net |
| 352,013 |
| 353,373 |
| 356,199 |
| 352,511 |
| 342,574 |
| |||||
Intangibles |
| 3,032 |
| 3,032 |
| 3,032 |
| 3,032 |
| 3,032 |
| |||||
Total deposits |
| 405,903 |
| 384,849 |
| 395,191 |
| 401,722 |
| 376,603 |
| |||||
Noninterest-bearing |
| 70,000 |
| 70,928 |
| 73,160 |
| 69,412 |
| 73,969 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Savings |
| 59,798 |
| 60,496 |
| 59,289 |
| 61,977 |
| 63,739 |
| |||||
NOW |
| 48,555 |
| 48,427 |
| 46,156 |
| 46,508 |
| 48,739 |
| |||||
Money Market |
| 23,422 |
| 24,124 |
| 23,137 |
| 22,120 |
| 23,712 |
| |||||
Time Deposits |
| 204,128 |
| 180,874 |
| 193,449 |
| 201,705 |
| 166,444 |
| |||||
Total interest-bearing deposits |
| 335,903 |
| 313,921 |
| 322,031 |
| 332,310 |
| 302,634 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Core deposits* |
| 201,775 |
| 203,975 |
| 201,742 |
| 200,017 |
| 210,159 |
| |||||
Shareholders’ equity |
| 69,720 |
| 74,182 |
| 74,594 |
| 74,725 |
| 71,632 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Asset Quality |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Non-performing assets |
| $ | 1,098 |
| $ | 1,019 |
| $ | 489 |
| $ | 771 |
| $ | 983 |
|
Non-performing assets to total assets |
| 0.19 | % | 0.17 | % | 0.08 | % | 0.13 | % | 0.17 | % | |||||
Allowance for loan losses |
| 4,162 |
| 4,201 |
| 4,185 |
| 4,045 |
| 3,995 |
| |||||
Allowance for loan losses to total loans |
| 1.17 | % | 1.17 | % | 1.16 | % | 1.13 | % | 1.15 | % | |||||
Allowance for loan losses to non-performing loans |
| 379.05 | % | 412.27 | % | 855.83 | % | 524.64 | % | 406.41 | % | |||||
Non-performing loans to total loans |
| 0.31 | % | 0.28 | % | 0.14 | % | 0.22 | % | 0.28 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Capitalization |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Shareholders’ equity to total assets |
| 11.89 | % | 12.65 | % | 12.59 | % | 12.74 | % | 12.43 | % | |||||
* Core deposits are defined as total deposits less time deposits