Exhibit 99.1
Press Release – For Immediate Release
October 18, 2007
Penns Woods Bancorp, Inc. Reports Third Quarter 2007 Earnings
Jersey Shore, PA – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three and nine months ended September 30, 2007 of $2,322,000 and $6,938,000 as compared to $2,464,000 and $7,353,000 for the same periods of 2006. Basic and dilutive earnings per share for the three months ended September 30, 2007 were $0.60 as compared to $0.63 for the three months ended September 30, 2006. The nine months ended September 30, 2007 had basic and diluted earnings per share of $1.78 as compared to $1.87 for the nine months ended September 30, 2006. Return on average assets and return on average equity were 1.57% and 13.21% for the three months ended September 30, 2007 as compared to 1.71% and 13.41% for the corresponding period of 2006. Earnings for the nine months ended September 30, 2007 correlate to a return on average assets and return on average equity of 1.57% and 12.63% as compared to 1.71% and 13.20% for the nine months ended September 30, 2006.
Net income from core operations (“operating earnings”), which excludes net security gains, increased to $2,322,000 and $6,529,000 for the three and nine months ended September 30, 2007 as compared to operating earnings of $2,094,000 and $6,439,000 for the same periods of 2006. Operating earnings per share for the three months ended September 30, 2007 increased 13.2% or $0.07 to $0.60 basic and dilutive as compared to the three months ended September 30, 2006. Operating earnings for the third quarter of 2007 represent a $0.05 basic and dilutive increase from the previous three month period as core earnings continued to build upon the $0.02 increase from the first to second quarters of 2007. Operating earnings for the nine months ended September 30, 2007 were positively impacted by continued strong credit quality, which has led to a reduction in the provision for loan losses, strong noninterest income of 17.3% of core revenue (interest income and noninterest income excluding gains), and a reduction in tax expense due to a shift in the investment portfolio to tax-exempt bonds and additional low incoming housing federal tax credits. The impact of these items resulted in basic and dilutive operating earnings increasing 3.1% to $1.68 as compared to $1.63 for the nine months ended September 30, 2006.
The net interest margin for the three and nine months ended September 30, 2007 was 3.98% and 3.96% as compared to 4.00% and 4.06% for the corresponding periods of 2006, and has increased slightly as compared to the 3.95% net interest margin for the three months ended June 30, 2007. The decrease in the net interest margin
was due to the cost of interest bearing liabilities continuing to increase at a rate greater than the increase in the yield on earning assets over the past twelve months. The negative impact of the disparity between the asset yield increases and the liability rate increases, however, declined for the three months ended September 30, 2007 as compared to the same period of 2006. The increase in the cost of interest bearing liabilities was driven primarily by the cost of time deposits increasing 48 basis points (“bp”) for the three months ended September 30, 2007 and 78 bp for the nine 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, utilization of brokered deposits, and our strategic decision to gather time deposits as part of marketing campaigns associated with a branch opening and branch anniversaries in 2006 and 2007. Loan growth and a shift in the investment portfolio toward tax-exempt bonds paved the way for the increase in yield on earning assets of 21 bp and 25 bp for the three and nine months periods ended September 2007 as compared to 2006.
“The recent months have generally seen the banking industry cast in a negative light due to the fallout from questionable mortgage lending practices. We as a community bank take pride in providing our customers with secure loans that fit their needs, financial profile, and take their personal goals into consideration. To that extent, we are not aware of any sub prime loans within our loan or investment securities portfolios,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc. “Our continued emphasis to not compromise our credit standards in order to foster loan growth has produced a nonperforming loans to total loans ratio of 0.28% at September 30, 2007 and annualized net loan charge-offs to average loans of 0.06% for the nine month period. The continued 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 September 30, 2007 as compared to $89,000 for the same period of 2006, while maintaining a sound allowance for loan losses to non-performing loans of in excess of 400%,” added Mr. Walko.
Total assets increased $26,577,000 to $613,329,000 at September 30, 2007 as compared to September 30, 2006. Continued emphasis on originating quality loans has led to net growth in the loan portfolio of $1,112,000 since September 30, 2006 as loan demand has softened and credit standards have remained constant. Total deposits have increased to $404,854,000 at September 30, 2007 as compared to $401,722,000 at September 30, 2006 as noninterest-bearing deposits increased $3,578,000 or 5.2% over the same time period. Growth in the investment portfolio of $20,268,000 from September 30, 2006 to September 30, 2007 is primarily the result of a leverage strategy that was initiated during the latter part of 2007. “This strategy in conjunction with our stock repurchase plan and strong dividend yield provide the tools necessary to utilize our strong capital position to maximize shareholder value,” commented Mr. Walko.
Shareholders’ equity decreased $3,173,000 to $71,552,000 at September 30, 2007 as accumulated comprehensive income decreased $4,114,000, and $1,518,000 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 September 30, 2007 as compared to September 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 $18.46 at September 30, 2007 as compared to $19.08 at September 30, 2006 and equity to asset ratio of 11.67% at September 30, 2007. Book value per share, excluding accumulated comprehensive income, was $19.08 at September 30, 2007 as compared to $18.65 at September 30, 2006. During the three and nine months ended September 30, 2007 cash dividends of $0.45 and $1.33 per share were paid to shareholders.
“Our goals of providing a healthy dividend yield in excess of four percent and conducting stock repurchases on the open market remains steadfast. The current dividend yield of approximately 5.5% coupled with the purchase of 26,030 shares on the open market during the first nine months of 2007 illustrates 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 $30.80 and $35.00 during the three months ended September 30, 2007 and between $30.80 and $37.75 during the nine months ended September 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)
|
| September 30, |
| ||||||
(In Thousands, Except Share Data) |
| 2007 |
| 2006 |
| % Change |
| ||
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| ||
ASSETS |
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|
|
|
| ||
Noninterest-bearing balances |
| $ | 13,228 |
| $ | 13,371 |
| -1.1 | % |
Interest-bearing deposits in other financial institutions |
| 15 |
| 97 |
| -84.5 | % | ||
Total cash and cash equivalents |
| 13,243 |
| 13,468 |
| -1.7 | % | ||
|
|
|
|
|
|
|
| ||
Investment securities, available for sale, at fair value |
| 204,758 |
| 184,484 |
| 11.0 | % | ||
Investment securities held to maturity (fair value of $278 and $285) |
| 276 |
| 282 |
| -2.1 | % | ||
Loans held for sale |
| 6,503 |
| 4,746 |
| 37.0 | % | ||
Loans |
| 357,715 |
| 356,556 |
| 0.3 | % | ||
Less: Allowance for loan losses |
| 4,092 |
| 4,045 |
| 1.2 | % | ||
Loans, net |
| 353,623 |
| 352,511 |
| 0.3 | % | ||
Premises and equipment, net |
| 6,841 |
| 6,627 |
| 3.2 | % | ||
Accrued interest receivable |
| 3,274 |
| 2,720 |
| 20.4 | % | ||
Bank-owned life insurance |
| 12,275 |
| 11,202 |
| 9.6 | % | ||
Investment in limited partnerships |
| 4,447 |
| 4,927 |
| -9.7 | % | ||
Goodwill |
| 3,032 |
| 3,032 |
| 0.0 | % | ||
Other assets |
| 5,057 |
| 2,753 |
| 83.7 | % | ||
TOTAL ASSETS |
| $ | 613,329 |
| $ | 586,752 |
| 4.5 | % |
|
|
|
|
|
|
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| ||
LIABILITIES |
|
|
|
|
|
|
| ||
Interest-bearing deposits |
| $ | 331,864 |
| $ | 332,310 |
| -0.1 | % |
Noninterest-bearing deposits |
| 72,990 |
| 69,412 |
| 5.2 | % | ||
Total deposits |
| 404,854 |
| 401,722 |
| 0.8 | % | ||
|
|
|
|
|
|
|
| ||
Short-term borrowings |
| 44,793 |
| 18,026 |
| 148.5 | % | ||
Long-term borrowings, Federal Home Loan Bank (FHLB) |
| 86,378 |
| 82,878 |
| 4.2 | % | ||
Accrued interest payable |
| 1,838 |
| 1,510 |
| 21.7 | % | ||
Other liabilities |
| 3,914 |
| 7,891 |
| -50.4 | % | ||
TOTAL LIABILITIES |
| 541,777 |
| 512,027 |
| 5.8 | % | ||
|
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|
|
|
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| ||
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
| ||
Common stock, par value $8.33, 10,000,000 shares authorized; 4,006,084 and 4,002,580 shares issued |
| 33,384 |
| 33,354 |
| 0.1 | % | ||
Additional paid-in capital |
| 17,869 |
| 17,784 |
| 0.5 | % | ||
Retained earnings |
| 27,552 |
| 25,208 |
| 9.3 | % | ||
Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
| ||
Net unrealized (loss) gain on available for sale securities |
| (1,861 | ) | 2,253 |
| -182.6 | % | ||
Defined benefit plan |
| (579 | ) | (579 | ) | n/a |
| ||
Less: Treasury stock at cost, 128,802 and 86,372 shares |
| (4,813 | ) | (3,295 | ) | 46.1 | % | ||
TOTAL SHAREHOLDERS’ EQUITY |
| 71,552 |
| 74,725 |
| -4.2 | % | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 613,329 |
| $ | 586,752 |
| 4.5 | % |
PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||||||
|
| September 30, |
| September 30, |
| ||||||||||||
(In Thousands, Except Per Share Data) |
| 2007 |
| 2006 |
| % Change |
| 2007 |
| 2006 |
| % Change |
| ||||
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INTEREST AND DIVIDEND INCOME: |
|
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|
|
|
|
|
|
|
| ||||
Loans including fees |
| $ | 6,621 |
| $ | 6,355 |
| 4.2 | % | $ | 19,560 |
| $ | 18,250 |
| 7.2 | % |
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable |
| 964 |
| 874 |
| 10.3 | % | 2,711 |
| 2,691 |
| 0.7 | % | ||||
Tax-exempt |
| 1,108 |
| 1,004 |
| 10.4 | % | 3,271 |
| 2,993 |
| 9.3 | % | ||||
Dividend and other interest income |
| 284 |
| 314 |
| -9.6 | % | 907 |
| 982 |
| -7.6 | % | ||||
TOTAL INTEREST AND DIVIDEND INCOME |
| 8,977 |
| 8,547 |
| 5.0 | % | 26,449 |
| 24,916 |
| 6.2 | % | ||||
|
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| ||||
INTEREST EXPENSE: |
|
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|
|
|
|
|
|
|
|
| ||||
Deposits |
| 2,835 |
| 2,447 |
| 15.9 | % | 8,215 |
| 6,252 |
| 31.4 | % | ||||
Short-term borrowings |
| 368 |
| 306 |
| 20.3 | % | 1,100 |
| 1,221 |
| -9.9 | % | ||||
Long-term borrowings, FHLB |
| 909 |
| 954 |
| -4.7 | % | 2,735 |
| 2,844 |
| -3.8 | % | ||||
TOTAL INTEREST EXPENSE |
| 4,112 |
| 3,707 |
| 10.9 | % | 12,050 |
| 10,317 |
| 16.8 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NET INTEREST INCOME |
| 4,865 |
| 4,840 |
| 0.5 | % | 14,399 |
| 14,599 |
| -1.4 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
PROVISION FOR LOAN LOSSES |
| 10 |
| 89 |
| -88.8 | % | 60 |
| 485 |
| -87.6 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
| 4,855 |
| 4,751 |
| 2.2 | % | 14,339 |
| 14,114 |
| 1.6 | % | ||||
|
|
|
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|
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| ||||
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Deposit service charges |
| 546 |
| 596 |
| -8.4 | % | 1,654 |
| 1,773 |
| -6.7 | % | ||||
Securities gains, net |
| — |
| 561 |
| -100.0 | % | 619 |
| 1,385 |
| -55.3 | % | ||||
Bank-owned life insurance |
| 109 |
| 94 |
| 16.0 | % | 310 |
| 272 |
| 14.0 | % | ||||
Gain on sale of loans |
| 282 |
| 264 |
| 6.8 | % | 654 |
| 624 |
| 4.8 | % | ||||
Insurance commissions |
| 625 |
| 502 |
| 24.5 | % | 1,613 |
| 1,732 |
| -6.9 | % | ||||
Other |
| 444 |
| 370 |
| 20.0 | % | 1,316 |
| 1,154 |
| 14.0 | % | ||||
TOTAL NON-INTEREST INCOME |
| 2,006 |
| 2,387 |
| -16.0 | % | 6,166 |
| 6,940 |
| -11.2 | % | ||||
|
|
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NON-INTEREST EXPENSE: |
|
|
|
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|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
| 2,330 |
| 2,174 |
| 7.2 | % | 6,912 |
| 6,620 |
| 4.4 | % | ||||
Occupancy, net |
| 319 |
| 308 |
| 3.6 | % | 987 |
| 826 |
| 19.5 | % | ||||
Furniture and equipment |
| 267 |
| 309 |
| -13.6 | % | 850 |
| 894 |
| -4.9 | % | ||||
Pennsylvania shares tax |
| 160 |
| 151 |
| 6.0 | % | 482 |
| 447 |
| 7.8 | % | ||||
Other |
| 1,354 |
| 1,172 |
| 15.5 | % | 3,667 |
| 3,356 |
| 9.3 | % | ||||
TOTAL NON-INTEREST EXPENSE |
| 4,430 |
| 4,114 |
| 7.7 | % | 12,898 |
| 12,143 |
| 6.2 | % | ||||
|
|
|
|
|
|
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|
|
|
|
|
|
| ||||
INCOME BEFORE INCOME TAX PROVISION |
| 2,431 |
| 3,024 |
| -19.6 | % | 7,607 |
| 8,911 |
| -14.6 | % | ||||
INCOME TAX PROVISION |
| 109 |
| 560 |
| -80.5 | % | 669 |
| 1,558 |
| -57.1 | % | ||||
NET INCOME |
| $ | 2,322 |
| $ | 2,464 |
| -5.8 | % | $ | 6,938 |
| $ | 7,353 |
| -5.6 | % |
|
|
|
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|
|
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| ||||
EARNINGS PER SHARE - BASIC |
| $ | 0.60 |
| $ | 0.63 |
| -4.8 | % | $ | 1.78 |
| $ | 1.87 |
| -4.8 | % |
|
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| ||||
EARNINGS PER SHARE - DILUTED |
| $ | 0.60 |
| $ | 0.63 |
| -4.8 | % | $ | 1.78 |
| $ | 1.87 |
| -4.8 | % |
|
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WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC |
| 3,881,488 |
| 3,927,261 |
| -1.2 | % | 3,889,310 |
| 3,942,533 |
| -1.3 | % | ||||
|
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|
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WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED |
| 3,881,676 |
| 3,927,740 |
| -1.2 | % | 3,889,573 |
| 3,943,016 |
| -1.4 | % | ||||
|
|
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|
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| ||||
DIVIDENDS PER SHARE |
| $ | 0.45 |
| $ | 0.44 |
| 2.3 | % | $ | 1.33 |
| $ | 1.29 |
| 3.1 | % |
PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES
|
| For the Three Months Ended |
| ||||||||||||||
|
| September 30, 2007 |
| September 30, 2006 |
| ||||||||||||
|
| Average Balance |
| Interest |
| Average Rate |
| Average Balance |
| Interest |
| Average Rate |
| ||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
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Tax-exempt loans |
| $ | 7,652 |
| $ | 118 |
| 6.12 | % | $ | 8,275 |
| $ | 127 |
| 6.10 | % |
All other loans |
| 354,032 |
| 6,543 |
| 7.33 | % | 347,673 |
| 6,271 |
| 7.16 | % | ||||
Total loans |
| 361,684 |
| 6,661 |
| 7.31 | % | 355,948 |
| 6,398 |
| 7.13 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable securities |
| 91,788 |
| 1,247 |
| 5.43 | % | 89,849 |
| 1,181 |
| 5.26 | % | ||||
Tax-exempt securities |
| 95,383 |
| 1,679 |
| 7.04 | % | 91,234 |
| 1,521 |
| 6.67 | % | ||||
Total securities |
| 187,171 |
| 2,926 |
| 6.25 | % | 181,083 |
| 2,702 |
| 5.97 | % | ||||
|
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|
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|
|
|
|
| ||||
Interest bearing deposits |
| 40 |
| 1 |
| 9.92 | % | 435 |
| 7 |
| 6.38 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-earning assets |
| 548,895 |
| 9,588 |
| 6.95 | % | 537,466 |
| 9,107 |
| 6.74 | % | ||||
|
|
|
|
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|
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|
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|
|
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Other assets |
| 43,706 |
|
|
|
|
| 42,042 |
|
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|
| ||||
|
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|
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|
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|
|
|
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TOTAL ASSETS |
| $ | 592,601 |
|
|
|
|
| $ | 579,508 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
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| ||||
Savings |
| $ | 60,262 |
| 114 |
| 0.75 | % | $ | 63,081 |
| 142 |
| 0.89 | % | ||
Super Now deposits |
| 46,531 |
| 153 |
| 1.30 | % | 47,071 |
| 170 |
| 1.43 | % | ||||
Money Market deposits |
| 23,183 |
| 131 |
| 2.24 | % | 23,300 |
| 131 |
| 2.23 | % | ||||
Time deposits |
| 203,690 |
| 2,437 |
| 4.75 | % | 186,187 |
| 2,004 |
| 4.27 | % | ||||
Total Deposits |
| 333,666 |
| 2,835 |
| 3.37 | % | 319,639 |
| 2,447 |
| 3.04 | % | ||||
|
|
|
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|
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|
|
|
|
|
|
|
| ||||
Short-term borrowings |
| 32,910 |
| 368 |
| 4.44 | % | 27,255 |
| 306 |
| 4.45 | % | ||||
Long-term borrowings |
| 77,791 |
| 909 |
| 4.64 | % | 82,878 |
| 954 |
| 4.57 | % | ||||
Total borrowings |
| 110,701 |
| 1,277 |
| 4.58 | % | 110,133 |
| 1,260 |
| 4.54 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-bearing liabilities |
| 444,367 |
| 4,112 |
| 3.67 | % | 429,772 |
| 3,707 |
| 3.42 | % | ||||
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| ||||
Demand deposits |
| 70,689 |
|
|
|
|
| 69,660 |
|
|
|
|
| ||||
Other liabilities |
| 7,249 |
|
|
|
|
| 6,596 |
|
|
|
|
| ||||
Shareholders’ equity |
| 70,296 |
|
|
|
|
| 73,480 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 592,601 |
|
|
|
|
| $ | 579,508 |
|
|
|
|
| ||
Interest rate spread |
|
|
|
|
| 3.28 | % |
|
|
|
| 3.32 | % | ||||
Net interest income/margin |
|
|
| $ | 5,476 |
| 3.98 | % |
|
| $ | 5,400 |
| 4.00 | % | ||
|
| For the Three Months Ended |
|
|
|
|
|
|
|
|
| ||||
|
| September 30, |
|
|
|
|
|
|
|
|
| ||||
|
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Total interest income |
| $ | 8,977 |
| $ | 8,547 |
|
|
|
|
|
|
|
|
|
Total interest expense |
| 4,112 |
| 3,707 |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income |
| 4,865 |
| 4,840 |
|
|
|
|
|
|
|
|
| ||
Tax equivalent adjustment |
| 611 |
| 560 |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income (fully taxable equivalent) |
| $ | 5,476 |
| $ | 5,400 |
|
|
|
|
|
|
|
|
|
|
| For the Nine Months Ended |
| ||||||||||||||
|
| September 30, 2007 |
| September 30, 2006 |
| ||||||||||||
|
| Average Balance |
| Interest |
| Average Rate |
| Average Balance |
| Interest |
| Average Rate |
| ||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Tax-exempt loans |
| $ | 7,913 |
| $ | 365 |
| 6.17 | % | $ | 8,155 |
| $ | 377 |
| 6.18 | % |
All other loans |
| 353,219 |
| 19,320 |
| 7.31 | % | 341,250 |
| 18,001 |
| 7.05 | % | ||||
Total loans |
| 361,132 |
| 19,685 |
| 7.29 | % | 349,405 |
| 18,378 |
| 7.03 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable securities |
| 85,930 |
| 3,600 |
| 5.59 | % | 93,848 |
| 3,664 |
| 5.21 | % | ||||
Tax-exempt securities |
| 99,497 |
| 4,956 |
| 6.64 | % | 90,972 |
| 4,535 |
| 6.65 | % | ||||
Total securities |
| 185,427 |
| 8,556 |
| 6.15 | % | 184,820 |
| 8,199 |
| 5.91 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest bearing deposits |
| 431 |
| 18 |
| 5.58 | % | 161 |
| 9 |
| 7.47 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-earning assets |
| 546,990 |
| 28,259 |
| 6.90 | % | 534,386 |
| 26,586 |
| 6.65 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other assets |
| 42,390 |
|
|
|
|
| 39,747 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
TOTAL ASSETS |
| $ | 589,380 |
|
|
|
|
| $ | 574,133 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Savings |
| $ | 59,726 |
| 329 |
| 0.74 | % | $ | 63,150 |
| 398 |
| 0.84 | % | ||
Super Now deposits |
| 46,309 |
| 455 |
| 1.31 | % | 47,835 |
| 488 |
| 1.36 | % | ||||
Money Market deposits |
| 24,362 |
| 414 |
| 2.27 | % | 24,190 |
| 367 |
| 2.03 | % | ||||
Time deposits |
| 198,401 |
| 7,017 |
| 4.73 | % | 169,119 |
| 4,999 |
| 3.95 | % | ||||
Total Deposits |
| 328,798 |
| 8,215 |
| 3.34 | % | 304,294 |
| 6,252 |
| 2.75 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Short-term borrowings |
| 32,443 |
| 1,100 |
| 4.53 | % | 37,761 |
| 1,221 |
| 4.32 | % | ||||
Long-term borrowings |
| 78,818 |
| 2,735 |
| 4.64 | % | 83,359 |
| 2,844 |
| 4.56 | % | ||||
Total borrowings |
| 111,261 |
| 3,835 |
| 4.61 | % | 121,120 |
| 4,065 |
| 4.49 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-bearing liabilities |
| 440,059 |
| 12,050 |
| 3.66 | % | 425,414 |
| 10,317 |
| 3.24 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 69,203 |
|
|
|
|
| 69,219 |
|
|
|
|
| ||||
Other liabilities |
| 6,866 |
|
|
|
|
| 5,245 |
|
|
|
|
| ||||
Shareholders’ equity |
| 73,252 |
|
|
|
|
| 74,255 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 589,380 |
|
|
|
|
| $ | 574,133 |
|
|
|
|
| ||
Interest rate spread |
|
|
|
|
| 3.24 | % |
|
|
|
| 3.41 | % | ||||
Net interest income/margin |
|
|
| $ | 16,209 |
| 3.96 | % |
|
| $ | 16,269 |
| 4.06 | % | ||
|
| For the Nine Months Ended |
|
|
|
|
|
|
|
|
| ||||
|
| September 30, |
|
|
|
|
|
|
|
|
| ||||
|
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Total interest income |
| $ | 26,449 |
| $ | 24,916 |
|
|
|
|
|
|
|
|
|
Total interest expense |
| 12,050 |
| 10,317 |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income |
| 14,399 |
| 14,599 |
|
|
|
|
|
|
|
|
| ||
Tax equivalent adjustment |
| 1,810 |
| 1,670 |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income (fully taxable equivalent) |
| $ | 16,209 |
| $ | 16,269 |
|
|
|
|
|
|
|
|
|
|
| Quarter Ended |
| |||||||||||||
(Dollars in Thousands, Except Per Share Data) |
| 9/30/2007 |
| 6/30/2007 |
| 3/31/2007 |
| 12/31/2006 |
| 9/30/2006 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating Data |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income |
| $ | 2,322 |
| $ | 2,335 |
| $ | 2,281 |
| $ | 2,294 |
| $ | 2,464 |
|
Net interest income |
| 4,865 |
| 4,794 |
| 4,740 |
| 4,944 |
| 4,840 |
| |||||
Provision for loan losses |
| 10 |
| 10 |
| 40 |
| 150 |
| 89 |
| |||||
Net security gains |
| — |
| 293 |
| 326 |
| 294 |
| 561 |
| |||||
Non-interest income, excluding net security gains |
| 2,006 |
| 1,893 |
| 1,648 |
| 1,795 |
| 1,826 |
| |||||
Non-interest expense |
| 4,430 |
| 4,340 |
| 4,128 |
| 4,186 |
| 4,114 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Performance Statistics |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest margin |
| 3.98 | % | 3.95 | % | 3.95 | % | 3.97 | % | 4.00 | % | |||||
Annualized return on average assets |
| 1.57 | % | 1.58 | % | 1.56 | % | 1.56 | % | 1.71 | % | |||||
Annualized return on average equity |
| 13.21 | % | 12.57 | % | 12.13 | % | 12.18 | % | 13.41 | % | |||||
Annualized net loan charge-offs to avg loans |
| 0.09 | % | 0.05 | % | 0.03 | % | 0.01 | % | 0.04 | % | |||||
Net charge-offs (recoveries) |
| 80 |
| 49 |
| 24 |
| 10 |
| 39 |
| |||||
Efficiency ratio |
| 64.5 |
| 64.9 |
| 64.6 |
| 62.1 |
| 61.7 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Per Share Data |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic earnings per share |
| $ | 0.60 |
| $ | 0.60 |
| $ | 0.59 |
| $ | 0.59 |
| $ | 0.62 |
|
Diluted earnings per share |
| 0.60 |
| 0.60 |
| 0.59 |
| 0.59 |
| 0.62 |
| |||||
Dividend declared per share |
| 0.45 |
| 0.44 |
| 0.44 |
| 0.44 |
| 0.44 |
| |||||
Book value |
| 18.46 |
| 17.93 |
| 19.06 |
| 19.12 |
| 19.08 |
| |||||
Common stock price: |
|
|
|
|
|
|
|
|
|
|
| |||||
High |
| 35.00 |
| 35.00 |
| 37.75 |
| 38.59 |
| 38.48 |
| |||||
Low |
| 30.80 |
| 33.86 |
| 35.00 |
| 36.20 |
| 37.02 |
| |||||
Close |
| 31.99 |
| 34.24 |
| 35.50 |
| 37.80 |
| 38.20 |
| |||||
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
| 3,881 |
| 3,889 |
| 3,897 |
| 3,909 |
| 3,927 |
| |||||
Fully Diluted |
| 3,882 |
| 3,889 |
| 3,898 |
| 3,910 |
| 3,928 |
| |||||
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
| |||||
Issued |
| 4,006 |
| 4,005 |
| 4,005 |
| 4,004 |
| 4,002 |
| |||||
Treasury |
| 129 |
| 118 |
| 113 |
| 103 |
| 86 |
| |||||
|
| Quarter Ended |
| |||||||||||||
(Dollars in Thousands, Except Per Share Data) |
| 9/30/2007 |
| 6/30/2007 |
| 3/31/2007 |
| 12/31/2006 |
| 9/30/2006 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Financial Condition Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
General |
|
|
|
|
|
|
|
|
|
|
| |||||
Total assets |
| $ | 613,329 |
| $ | 586,572 |
| $ | 586,591 |
| $ | 592,285 |
| $ | 586,752 |
|
Loans, net |
| 353,623 |
| 352,013 |
| 353,373 |
| 356,199 |
| 352,511 |
| |||||
Intangibles |
| 3,032 |
| 3,032 |
| 3,032 |
| 3,032 |
| 3,032 |
| |||||
Total deposits |
| 404,854 |
| 405,903 |
| 384,849 |
| 395,191 |
| 401,722 |
| |||||
Noninterest-bearing |
| 72,990 |
| 70,000 |
| 70,928 |
| 73,160 |
| 69,412 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Savings |
| 59,883 |
| 59,798 |
| 60,496 |
| 59,289 |
| 61,977 |
| |||||
NOW |
| 47,129 |
| 48,555 |
| 48,427 |
| 46,156 |
| 46,508 |
| |||||
Money Market |
| 22,295 |
| 23,422 |
| 24,124 |
| 23,137 |
| 22,120 |
| |||||
Time Deposits |
| 202,557 |
| 204,128 |
| 180,874 |
| 193,449 |
| 201,705 |
| |||||
Total interest-bearing deposits |
| 331,864 |
| 335,903 |
| 313,921 |
| 322,031 |
| 332,310 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Core deposits* |
| 202,297 |
| 201,775 |
| 203,975 |
| 201,742 |
| 200,017 |
| |||||
Shareholders’ equity |
| 71,552 |
| 69,720 |
| 74,182 |
| 74,594 |
| 74,725 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Asset Quality |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Non-performing assets |
| $ | 1,013 |
| $ | 1,098 |
| $ | 1,019 |
| $ | 489 |
| $ | 771 |
|
Non-performing assets to total assets |
| 0.17 | % | 0.19 | % | 0.17 | % | 0.08 | % | 0.13 | % | |||||
Allowance for loan losses |
| 4,092 |
| 4,162 |
| 4,201 |
| 4,185 |
| 4,045 |
| |||||
Allowance for loan losses to total loans |
| 1.14 | % | 1.17 | % | 1.17 | % | 1.16 | % | 1.13 | % | |||||
Allowance for loan losses to non-performing loans |
| 403.95 | % | 379.05 | % | 412.27 | % | 855.83 | % | 524.64 | % | |||||
Non-performing loans to total loans |
| 0.28 | % | 0.31 | % | 0.28 | % | 0.14 | % | 0.22 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Capitalization |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Shareholders’ equity to total assets |
| 11.67 | % | 11.89 | % | 12.65 | % | 12.59 | % | 12.74 | % | |||||
* Core deposits are defined as total deposits less time deposits