Codorus Valley Bancorp, Inc. (“Codorus Valley”, or the
“Corporation”) (NASDAQ: CVLY), parent company of PeoplesBank, A
Codorus Valley Company (“PeoplesBank”, or the “Bank”), today
reported net income of $6.6 million or $0.69 per diluted common
share, for the quarter ended June 30, 2023. This compares to net
income of $2.0 million or $0.20 per diluted common share, for the
quarter ended June 30, 2022, representing an increase of $4.6
million or 238 percent, and compares to net income of $7.0 million
or $0.73 per diluted common share for the first quarter of 2023,
representing a decrease of $400,000 or 5.5 percent. For the first
six months of 2023, net income was $13.6 million or $1.42 per
diluted share, compared to $5.0 million or $0.52 per diluted share,
for the first six months of 2022, representing an increase of $8.6
million or 172 percent.
“In the second quarter, the PeoplesBank team
continued to concentrate on actions that will position the
Corporation for long-term financial well-being,” stated Craig L.
Kauffman, President and CEO. “During the quarter we made efforts to
increase our liquidity, improve credit quality, fortify the balance
sheet, and position the Corporation to support its stakeholders. As
a result, we were pleased that the Board increased the cash
dividend to $0.17 per share, an increase of $0.01 over the first
quarter of 2023.”
REVIEW OF RESULTS
Balance Sheet
Loans
Loans increased $49.1 million from December 31,
2022 to June 30, 2023, an annualized growth rate of 6.0 percent.
Nonperforming assets increased $600,000, or 6.3 percent to $9.7
million from December 31, 2022 to June 30, 2023, primarily due to a
single loan in the amount of $1.7 million that was more than 90
days past due but still accruing at quarter-end.
Investment Securities
Investment Securities decreased $2.8 million to
$342.7 million at June 30, 2023 compared to $345.5 million at
December 31, 2022. The Bank sold $4.7 million of investment
securities, realizing a net loss of $388,000 during the first
quarter of 2023, improving the security portfolio yield by three
basis points. The tax-equivalent yield on securities for the three
months ended June 30, 2023 was 2.72 percent, compared to 2.12
percent for the three months ended June 30, 2022 and 2.68 percent
for the three months ended March 31, 2023. The unrealized loss on
the securities portfolio was $46.6 million at June 30, 2023,
compared to $30.7 million at June 30, 2022 and $40.4 million at
March 31, 2023.
Borrowings
FHLB advances and other short-term borrowings
increased $71.7 million to $83.3 million at June 30, 2023 compared
to $11.6 million at December 31, 2022, as the Bank added liquidity
to the balance sheet during the recent industry turmoil to provide
an added measure of liquidity in the event the Bank were to
experience outsized deposit withdrawals.
Deposits
Total Deposits decreased $60.5 million, or 3.1
percent from December 31, 2022 to June 30, 2023, ending the period
at $1.88 billion. From year-end 2022 to June 30, 2023,
noninterest-bearing demand accounts decreased $55.6 million or 12.0
percent, and interest-bearing demand accounts decreased $18.0
million or 6.2 percent. During that same period, within other
interest-bearing deposit categories, money market accounts
decreased by $18.4 million or 2.8 percent and savings accounts
decreased $13.2 million or 8.2 percent. Offsetting the decreases,
certificates of deposit increased by $44.6 million or 11.7 percent.
As a result of the change in deposit mix, the average cost of
interest-bearing deposits increased to 1.94 percent for the quarter
ended June 30, 2023, compared to 0.26 percent for the quarter ended
June 30, 2022 and 1.43 percent for the quarter ended March 31,
2023. For the six months ended June 30, 2023, the average cost of
interest-bearing deposits increased to 1.69 percent, compared to
0.26 percent for the six months ended June 30, 2022. During the
three months ended June 30, 2023 overall deposit activity
stabilized with a decline of $6.7 million or 0.36 percent from the
quarter ended March 31, 2023. We anticipate downward pressure on
net interest margin to continue in the second half of 2023.
Income Statement
The Corporation’s net interest income for the
three months ended June 30, 2023 was $19.9 million, an increase of
12.2 percent when compared to $17.7 million for the three months
ended June 30, 2022 and a decrease of 3.2 percent when compared to
$20.6 million for the three months ended March 31, 2023. The
Corporation’s tax-equivalent net interest margin (“NIM”) was 3.81
percent for the three months ended June 30, 2023, compared to 3.18
percent for the same period in 2022 and 4.00 percent for the
quarter ended March 31, 2023. Net interest income for the six
months ended June 30, 2023 was $40.5 million, an increase of 21.0
percent when compared to $33.4 million for the six months ended
June 30, 2022. The Corporation’s tax-equivalent NIM was 3.90
percent for the six months ended June 30, 2023, compared to 2.98
percent for the six months ended June 30, 2022.
The Corporation’s provision for credit losses,
which includes provision for credit losses on unfunded commitments,
for the three months ended June 30, 2023 was a reversal of $77,000
compared to a provision for loan losses of $3.0 million for the
three months ended June 30, 2022 and a provision for credit losses
of $738,000 for the quarter ended March 31, 2023. The Corporation’s
nonperforming assets ratio was 0.58 percent at June 30, 2023, a
17.1 percent decrease from the nonperforming assets ratio of 0.70
percent at December 31, 2022. On January 1, 2023, the Corporation
adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic
326) and now measures and records impairment on financial
instruments at the time of origination using the current expected
credit loss (“CECL”) methodology. At adoption of the CECL
methodology, the allowance for credit losses increased $2.8
million. The net impact to retained earnings was $2.1 million.
Noninterest income for the three months ended
June 30, 2023 was $4.1 million, an increase of $140,000 or 3.6
percent, compared to noninterest income of $3.9 million for the
three months ended June 30, 2022 and an increase of $71,000 or 1.8
percent compared to the three months ended March 31, 2023. The
increase in the current quarter from the three months ended June
30, 2022, was primarily due to higher service charges on deposit
accounts, offset by a decrease in gain on sale of loans. The
increase in the current quarter from the first quarter of 2023 was
due to higher service charges on deposit accounts and no loss on
sales of securities in the current period, offset by a decrease in
other income associated with interest rate swap fees and a decrease
in gains on assets held for sale. Noninterest income for the six
months ended June 30, 2023 was $8.0 million, an increase of
$258,000, as compared to noninterest income of $7.8 million for the
six months ended June 30, 2022. Higher trust and investment service
fees, service charges on deposits, other income related to interest
rate swap fees and gains on sale of assets held for sale in the
current period were partially offset by a decrease in gains on sale
of loans and a loss on sale of securities compared to the six
months ended June 30, 2022.
Noninterest expense was $15.5 million for the
second quarter 2023, a decrease of $700,000 or 4.6 percent, as
compared to noninterest expense of $16.2 million for the second
quarter 2022 and an increase of $700,000 compared to noninterest
expense of $14.8 million for the first quarter of 2023. Year over
year the decrease was attributed to lower professional and legal
fees, lower impaired loan carrying costs and lower other expense,
offset by higher variable compensation accruals. The increase as
compared to the first quarter of 2023 was primarily the result of
higher variable compensation accruals, higher charitable donations,
partially offset by lower other expense. Noninterest expense was
$30.3 million for the six months ended June 30, 2023, a decrease of
$600,000 or 2.0 percent, as compared to noninterest expense of
$30.9 million for the six months ended June 30, 2022. The decrease
was attributed to lower professional and legal fees, lower impaired
loan carrying costs and lower other expense, offset by higher
variable compensation accruals. Professional and legal fees and
other expense were higher in the prior year as a result of costs
associated with corporate matters. Previously expensed impaired
loan carrying costs were recovered in the current year,
contributing to the decrease year over year.
Income tax expense for the quarter ended June
30, 2023 was $1.9 million compared to $500,000 for the same period
in 2022 and $2.0 million in the quarter ended March 31, 2023. The
effective tax rate for the three month periods ended June 30, 2023,
June 30, 2022 and March 31, 2023 was 22.7 percent, 20.4 and 22.2
percent, respectively. Income tax expense for the six months ended
June 30, 2023 was $3.9 million compared to $1.3 million for the six
months ended June 30, 2022. The effective tax rate for the six
months ended June 30, 2023 and June 30, 2022 was 22.4 and 20.7,
respectively.
Capital
Shareholders’ equity totaled $185.9 million at
June 30, 2023, an increase of $8.6 million from $177.3 million at
December 31, 2022. The increase was primarily attributable to net
income of $13.6 million, partially offset by dividends paid of $3.1
million for the six months ended June 30, 2023 and the adoption of
CECL of $2.1 million. Other changes related to accumulated other
comprehensive loss and issuance of treasury stock.
Book value per share was $19.34 and $18.51 at
June 30, 2023 and December 31, 2022, respectively. Tangible book
value per share and tangible book value per share without
accumulated other comprehensive loss (1) increased to $19.10 per
share and $22.81 per share, respectively, at June 30, 2023 from
$18.27 per share and $21.90 per share, respectively, at December
31, 2022, primarily the result of changes in shareholders’ equity
discussed above. The Corporation’s common equity tier 1 capital
ratio was 12.20 percent at June 30, 2023, an increase from 12.04
percent at December 31, 2022. At June 30, 2023, all capital ratios
applicable to the Bank were above regulatory minimum levels and the
Bank met the “well-capitalized” criteria under current bank
regulatory guidelines. (Note that the regulatory “well-capitalized”
definition is not applicable to small bank holding companies such
as the Corporation).
(1) Tangible book value per share and tangible book value per
share without accumulated other comprehensive loss are non-GAAP
financial measures. Please see Financial Highlights for disclosure
and reconciliation of non-GAAP financial measures.
Liquidity Risk Management
The Bank maintains a well-diversified deposit
base and has a comparatively low level of uninsured deposits. At
June 30, 2023, 84% of the Bank’s deposits were estimated to be
FDIC-insured, and an additional 7% of deposits were fully
collateralized. The average account size of the Bank’s consumer
deposit base is less than $18,000, and the average account size of
the Bank’s business deposit base is less than $90,000.
The overall deposit and liquidity position of
the Bank and the Corporation remain positive, with overall deposits
exceeding the level at December 31, 2019, the start of the
pandemic, by $292 million or 18.4 percent.
Although the Bank had not utilized the Federal
Reserve’s Bank Term Funding Facility as of June 30, 2023, the
program has attractive features, such as being able to borrow based
on the par values (rather than market values) of a bank’s
investment securities that are pledged as collateral. For this
reason, the program would be considered among the Bank’s other
wholesale borrowing options if additional liquidity was needed.
The Bank is a member of the IntraFi Network,
which provides reciprocal deposit alternatives allowing our clients
to have the benefit of additional FDIC insurance coverage, and
assisting the Bank in the management of its liquidity needs.
Dividend Declared
On July 11, 2023, the Board of Directors of the
Corporation declared a regular quarterly cash dividend of $0.17 per
share, payable on August 8, 2023 to common shareholders of record
at the close of business on July 25, 2023. The payment of this
$0.17 per share cash dividend is $0.01 or 6 percent higher than the
prior quarterly dividend.
Business Lines
In the second quarter of 2023, Consumer Banking
marketing efforts continued to focus on deposit accounts by
incentivizing new openings of Momentum Checking and Savings
accounts. Efforts included traditional and digital marketing, using
mass marketing and targeted marketing approaches. This led to a 141
percent increase in online traffic to the Bank’s Momentum Check and
Savings webpage over the first quarter of 2023 and a 25 percent
increase in online loan applications and related loan bookings. In
addition, the Bank promoted its mortgage and HELOC offerings, and
digital marketing campaigns were deployed in certain branch
markets, resulting in a 13.5 percent increase in web visitors
related to that campaign over the first quarter of 2023.
Business Banking marketing efforts continued to
focus on helping clients through the Bank’s Preferred SBA Lender
program in the first month of the second quarter of 2023,
transitioning to an offer for Treasury Management services in the
last two months of the quarter. Interest for the Bank’s Treasury
Management offer was high, resulting in the offer landing page
ranking as the highest-viewed Business Banking-related webpage on
the Bank’s website in the second quarter of 2023. Additionally,
during the second quarter of 2023, the Bank hired two seasoned
revenue leaders, a York-based Business Banking Leader and a
Maryland-based CRE Team Leader.
PeoplesBank Wealth Management continued to offer
the expertise of its team to clients through a variety of events
and personal outreach. In addition, the Bank welcomed a new Wealth
Advisor to the team to further deepen the Bank’s presence in the
markets it serves.
Overall, marketing efforts led to a 5 percent
increase in website visitors over the first quarter of 2023.
Desktop users increased 2.8 percent and mobile device users
increased 7.7 percent over the first quarter of 2023.
About Codorus Valley Bancorp,
Inc.
Codorus Valley Bancorp, Inc. is the largest
independent financial services holding company headquartered in
York, Pennsylvania. Codorus Valley primarily operates through its
financial services subsidiary, PeoplesBank, A Codorus Valley
Company. PeoplesBank offers a full range of consumer, business,
wealth management, and mortgage services at financial centers
located in communities throughout South Central Pennsylvania and
Central Maryland. Codorus Valley Bancorp, Inc.’s Common Stock is
listed on the NASDAQ Global Market under the symbol
“CVLY”.
Cautionary Note Regarding
Forward-looking Statements
This Press Release may contain forward-looking
statements by Codorus Valley Bancorp, Inc. (the “Corporation”).
Forward-looking statements may include information concerning the
financial condition, results of operations and business of the
Corporation and its subsidiaries and include, but are not limited
to, statements regarding expectations or predictions of future
financial or business performance or conditions relating to the
Corporation and its operations. These forward-looking statements
include statements with respect to the Corporation’s beliefs,
plans, objectives, goals, expectations, anticipations, estimates
and intentions, that are subject to significant risks and
uncertainties, and are subject to change based on various factors
(some of which are beyond the Corporation’s control).
Forward-looking statements may also include, but are not limited
to, discussions of strategy, financial projections and estimates
and their underlying assumptions, statements regarding plans,
objectives, goals, expectations or consequences, and statements
about future performance, expenses, operations, or products and
services of the Corporation and its subsidiaries. Forward-looking
statements can be identified by the use of words such as “may,”
“should,” “will,” “could,” “believes,” “plans,” “expects,”
“estimates,” “intends,” “anticipates,” “strives to,” “seeks,”
”intends,” “anticipates” or similar words or expressions.
Forward-looking statements are not historical
facts, nor should they be relied upon as providing assurance of
future performance. Forward-looking statements are based on current
beliefs, expectations and assumptions regarding the future of the
Corporation’s business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks, and
changes in circumstances that are difficult to predict and many of
which are outside of the Corporation’s control. Actual results
could differ materially from those indicated in forward-looking
statements due to, among others, the following factors: changes in
market interest rates and the persistence of the current
inflationary environment in the U.S. and our market areas and the
potential for an economic downturn or recession; the effects of
financial challenges at other banking institutions that could lead
to depositor concerns that spread within the banking industry
causing disruptive deposit outflows and other destabilizing
results; legislative and regulatory changes and the uncertain
impact of new laws and regulations; monetary and fiscal policies of
the federal government; the effects of changes in accounting
policies and practices; ineffectiveness of the Corporation’s
business strategy due to changes in the current or future market
conditions; changes in deposit flows, the cost of funds, demand for
loan products and the demand for financial services; the effects of
the COVID-19 pandemic, including on the Corporation’s credit
quality and operations as well as its impact on general economic
conditions; competition; market volatility, market downturns,
changes in consumer behavior and business closures; adverse changes
in the quality or composition of the Corporation’s loan, investment
and mortgage-backed securities portfolios, including from the
effects of the current inflationary environment; geographic
concentration of the Corporation’s business; deterioration of
commercial real estate values; the adequacy of loan loss reserves
and the Corporation’s transition to the Current Expected Credit
Loss (CECL) method of reserving for losses in its loan portfolio;
deterioration in the credit quality of borrowers; the Company’s
ability to attract and retain key personnel; the impact of
operational risks, including the risk of human error, failure or
disruption of internal processes and systems, including of the
Corporation’s information and other technology systems; uncertainty
surrounding the transition from LIBOR to an alternate reference
rate: failure or circumvention of our internal controls; the
Corporation’s ability to keep pace with technological changes;
breaches of security or failures of the Corporation to identify and
adequately address cybersecurity and data breaches; changes in
government regulation and supervision and the potential for
negative consequences resulting from regulatory examinations,
investigations and violations; the effects of adverse outcomes from
claims and litigation; occurrence of natural or man-made disasters
or calamities, including health emergencies, the spread of
infectious diseases, epidemics or pandemics, an outbreak or
escalation of hostilities or other geopolitical instabilities, the
effects of climate change or extraordinary events beyond the
Corporation's control, and the Corporation’s ability to deal
effectively with disruptions caused by the foregoing; and other
economic, competitive, governmental and technological factors
affecting the Corporation’s operations, markets, products, services
and fees.
For a discussion of certain risks and
uncertainties that could affect the Corporation, please refer to
the “Risk Factors” section of the Corporation’s Annual Report on
Form 10-K for the year ended December 31, 2022, and in its current
and periodic reports that are, or will be, filed with the
Securities and Exchange Commission (the “SEC”) and available on the
SEC’s website at www.sec.gov or in the Investor Relations section
of the Corporation’s website at www.peoplesbanknet.com. The
Corporation undertakes no obligation, other than as required by
law, to update or revise any forward-looking statements to reflect
new information, events occurring after the date of this press
release or other circumstances.
Certain Accounting Matters
Accounting standards require the consideration
of subsequent events occurring after the balance sheet date for
matters that require adjustment to, or disclosure in, the
consolidated financial statements. The review period for subsequent
events extends up to and includes the filing date of a public
company’s financial statements when filed with the SEC.
Accordingly, the consolidated financial information in this
announcement is subject to change.
The Corporation uses certain non-GAAP (Generally
Accepted Accounting Principles) financial measures in this Press
Release. The Corporation’s management believes that the
supplemental non-GAAP information provided in this press release is
utilized by market analysts and others to evaluate the
Corporation’s financial condition and results of operations and,
therefore, such information is useful to investors. These measures
have limitations as analytical tools and should not be considered a
substitute for analysis of results under GAAP. These non-GAAP
financial measures are reconciled to the most comparable measures
following the “Financial Highlights” section of this press
release.
Questions or comments concerning this Press Release
should be directed to:
Codorus Valley Bancorp, Inc. |
|
Craig L. Kauffman |
Larry D. Pickett |
President and CEO |
Chief Financial Officer |
717-747-1501 |
717-747-1502 |
ckauffman@peoplesbanknet.com |
lpickett@peoplesbanknet.com |
CODORUS VALLEY BANCORP, INC. |
|
|
|
Consolidated Balance Sheets (Unaudited) |
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
June 30, |
(Dollars in thousands, except share and per share data) |
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Interest
bearing deposits with banks |
$ |
68,946 |
|
|
$ |
99,777 |
|
|
$ |
262,122 |
|
Cash and due
from banks |
|
20,670 |
|
|
|
20,662 |
|
|
|
21,847 |
|
Total cash and cash equivalents |
|
89,616 |
|
|
|
120,439 |
|
|
|
283,969 |
|
Securities,
available-for-sale, at fair value (amortized cost $389,292, net
of |
|
|
|
|
|
|
|
|
allowance for credit losses of $0) |
|
342,691 |
|
|
|
345,457 |
|
|
|
329,032 |
|
Restricted
investment in bank stocks, at cost |
|
3,917 |
|
|
|
955 |
|
|
|
955 |
|
Loans held
for sale |
|
428 |
|
|
|
154 |
|
|
|
1,154 |
|
Loans (net
of deferred fees of $3,883 - 2023 and $3,813 - 2022) |
|
1,681,688 |
|
|
|
1,632,857 |
|
|
|
1,584,532 |
|
Less-allowance for credit losses (1) |
|
(20,681 |
) |
|
|
(20,736 |
) |
|
|
(22,865 |
) |
Net loans |
|
1,661,007 |
|
|
|
1,612,121 |
|
|
|
1,561,667 |
|
Premises and
equipment, net |
|
19,672 |
|
|
|
21,136 |
|
|
|
21,534 |
|
Operating
leases right-of-use assets |
|
2,772 |
|
|
|
3,072 |
|
|
|
3,412 |
|
Goodwill |
|
2,301 |
|
|
|
2,301 |
|
|
|
2,301 |
|
Other assets |
|
93,313 |
|
|
|
89,417 |
|
|
|
84,699 |
|
Total assets |
$ |
2,215,717 |
|
|
$ |
2,195,052 |
|
|
$ |
2,288,723 |
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
Noninterest bearing |
$ |
408,290 |
|
|
$ |
463,853 |
|
|
$ |
497,396 |
|
Interest bearing |
|
1,474,383 |
|
|
|
1,479,366 |
|
|
|
1,542,179 |
|
Total deposits |
|
1,882,673 |
|
|
|
1,943,219 |
|
|
|
2,039,575 |
|
Short-term
borrowings |
|
83,320 |
|
|
|
11,605 |
|
|
|
14,249 |
|
Long-term
debt |
|
11,535 |
|
|
|
11,550 |
|
|
|
11,565 |
|
Subordinate
debentures - face amount $31,000 (less discount and debt |
|
|
|
|
|
|
|
|
issuance cost of $196 at June 30, 2023 and $236 at December
31, 2022) |
|
30,804 |
|
|
|
30,764 |
|
|
|
30,723 |
|
Operating
leases liabilities |
|
2,892 |
|
|
|
3,204 |
|
|
|
3,559 |
|
Allowance
for credit losses on off-balance sheet credit exposures |
|
2,089 |
|
|
|
0 |
|
|
|
0 |
|
Other liabilities |
|
16,535 |
|
|
|
17,410 |
|
|
|
13,770 |
|
Total liabilities |
|
2,029,848 |
|
|
|
2,017,752 |
|
|
|
2,113,441 |
|
Shareholders' equity |
|
|
|
|
|
|
|
|
Preferred
stock, par value $2.50 per share; |
|
|
|
|
|
|
|
|
1,000,000 shares authorized; no shares
issued or outstanding |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Common
stock, par value $2.50 per share; 30,000,000 shares
authorized; |
|
|
|
|
|
|
|
|
shares issued: 9,883,660 at June 30, 2023 and December
31, 2022; |
|
|
|
|
|
|
|
|
and shares outstanding: 9,611,110 at June 30, 2023 and
9,581,230 at December 31, 2022 |
24,709 |
|
|
|
24,709 |
|
|
|
24,708 |
|
Additional
paid-in capital |
|
142,272 |
|
|
|
141,896 |
|
|
|
141,678 |
|
Retained
earnings |
|
60,532 |
|
|
|
52,146 |
|
|
|
39,926 |
|
Accumulated
other comprehensive loss |
|
(35,650 |
) |
|
|
(34,764 |
) |
|
|
(23,462 |
) |
Treasury
stock shares outstanding, at cost: 272,550 shares at June 30,
2023 |
|
|
|
|
|
|
|
|
and 302,430 at December 31, 2022 |
|
(5,994 |
) |
|
|
(6,687 |
) |
|
|
(7,568 |
) |
Total shareholders' equity |
|
185,869 |
|
|
|
177,300 |
|
|
|
175,282 |
|
Total liabilities and shareholders' equity |
$ |
2,215,717 |
|
|
$ |
2,195,052 |
|
|
$ |
2,288,723 |
|
|
|
|
|
|
|
|
|
|
(1) Beginning January
1, 2023, calculation is based on current expected loss methodology.
Prior to January 1, 2023. calculation was based on incurred
loss methodology. |
CODORUS VALLEY
BANCORP, INC. |
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
|
Three months
ended |
|
|
Six months
ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
(dollars in thousands, except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
24,803 |
|
|
$ |
23,034 |
|
|
$ |
16,788 |
|
|
$ |
47,837 |
|
|
$ |
32,469 |
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
2,492 |
|
|
|
2,457 |
|
|
|
1,732 |
|
|
|
4,949 |
|
|
|
3,012 |
|
Tax-exempt |
|
99 |
|
|
|
101 |
|
|
|
105 |
|
|
|
200 |
|
|
|
204 |
|
Dividends |
|
51 |
|
|
|
17 |
|
|
|
10 |
|
|
|
68 |
|
|
|
19 |
|
Other |
|
545 |
|
|
|
684 |
|
|
|
648 |
|
|
|
1,229 |
|
|
|
876 |
|
Total interest income |
|
27,990 |
|
|
|
26,293 |
|
|
|
19,283 |
|
|
|
54,283 |
|
|
|
36,580 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
7,077 |
|
|
|
5,137 |
|
|
|
1,010 |
|
|
|
12,214 |
|
|
|
2,072 |
|
Federal
funds purchased and other short-term borrowings |
|
437 |
|
|
|
38 |
|
|
|
12 |
|
|
|
475 |
|
|
|
22 |
|
Long-term
debt |
|
30 |
|
|
|
28 |
|
|
|
83 |
|
|
|
58 |
|
|
|
188 |
|
Subordinated debentures |
|
547 |
|
|
|
535 |
|
|
|
439 |
|
|
|
1,082 |
|
|
|
858 |
|
Total interest expense |
|
8,091 |
|
|
|
5,738 |
|
|
|
1,544 |
|
|
|
13,829 |
|
|
|
3,140 |
|
Net interest income |
|
19,899 |
|
|
|
20,555 |
|
|
|
17,739 |
|
|
|
40,454 |
|
|
|
33,440 |
|
(Recovery
of) provision for credit losses - loans (1) |
|
(31 |
) |
|
|
492 |
|
|
|
2,974 |
|
|
|
461 |
|
|
|
4,001 |
|
(Recovery of) provision for credit losses - unfunded commitments
(1) |
(46 |
) |
|
|
246 |
|
|
|
0 |
|
|
|
200 |
|
|
|
0 |
|
Net interest income after provision for credit losses |
|
19,976 |
|
|
|
19,817 |
|
|
|
14,765 |
|
|
|
39,793 |
|
|
|
29,439 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and
investment services fees |
|
1,275 |
|
|
|
1,202 |
|
|
|
1,137 |
|
|
|
2,477 |
|
|
|
2,299 |
|
Income from
mutual fund, annuity and insurance sales |
|
323 |
|
|
|
369 |
|
|
|
345 |
|
|
|
692 |
|
|
|
675 |
|
Service
charges on deposit accounts |
|
1,541 |
|
|
|
1,485 |
|
|
|
1,368 |
|
|
|
3,026 |
|
|
|
2,650 |
|
Income from
bank owned life insurance |
|
329 |
|
|
|
322 |
|
|
|
308 |
|
|
|
651 |
|
|
|
619 |
|
Other
income |
|
587 |
|
|
|
862 |
|
|
|
532 |
|
|
|
1,449 |
|
|
|
951 |
|
(Loss) gain
on sale of loans held for sale |
|
(4 |
) |
|
|
10 |
|
|
|
221 |
|
|
|
6 |
|
|
|
579 |
|
Gain on sale
of assets held for sale |
|
0 |
|
|
|
118 |
|
|
|
0 |
|
|
|
118 |
|
|
|
0 |
|
Loss on sales of securities |
|
0 |
|
|
|
(388 |
) |
|
|
0 |
|
|
|
(388 |
) |
|
|
0 |
|
Total noninterest income |
|
4,051 |
|
|
|
3,980 |
|
|
|
3,911 |
|
|
|
8,031 |
|
|
|
7,773 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
|
9,489 |
|
|
|
9,042 |
|
|
|
8,491 |
|
|
|
18,531 |
|
|
|
16,881 |
|
Occupancy of
premises, net |
|
880 |
|
|
|
978 |
|
|
|
922 |
|
|
|
1,858 |
|
|
|
1,901 |
|
Furniture
and equipment |
|
878 |
|
|
|
838 |
|
|
|
812 |
|
|
|
1,716 |
|
|
|
1,699 |
|
Professional
and legal |
|
379 |
|
|
|
467 |
|
|
|
1,055 |
|
|
|
846 |
|
|
|
1,914 |
|
Marketing |
|
387 |
|
|
|
276 |
|
|
|
433 |
|
|
|
663 |
|
|
|
833 |
|
FDIC
insurance |
|
244 |
|
|
|
250 |
|
|
|
188 |
|
|
|
494 |
|
|
|
427 |
|
Debit card
processing |
|
432 |
|
|
|
478 |
|
|
|
385 |
|
|
|
910 |
|
|
|
767 |
|
Charitable
donations |
|
899 |
|
|
|
32 |
|
|
|
885 |
|
|
|
931 |
|
|
|
915 |
|
External
data processing |
|
1,043 |
|
|
|
1,010 |
|
|
|
1,018 |
|
|
|
2,053 |
|
|
|
1,839 |
|
Committee
& Director Fees |
|
88 |
|
|
|
358 |
|
|
|
85 |
|
|
|
456 |
|
|
|
280 |
|
PA shares
(benefit) tax |
|
(423 |
) |
|
|
343 |
|
|
|
(397 |
) |
|
|
(80 |
) |
|
|
(41 |
) |
(Recovery
of) impaired loan carrying costs |
|
(238 |
) |
|
|
(98 |
) |
|
|
157 |
|
|
|
(336 |
) |
|
|
295 |
|
Other |
|
1,418 |
|
|
|
837 |
|
|
|
2,189 |
|
|
|
2,245 |
|
|
|
3,189 |
|
Total noninterest expense |
|
15,476 |
|
|
|
14,811 |
|
|
|
16,223 |
|
|
|
30,287 |
|
|
|
30,899 |
|
Income before income taxes |
|
8,551 |
|
|
|
8,986 |
|
|
|
2,453 |
|
|
|
17,537 |
|
|
|
6,313 |
|
Provision for income taxes |
|
1,940 |
|
|
|
1,994 |
|
|
|
500 |
|
|
|
3,934 |
|
|
|
1,307 |
|
Net
income |
$ |
6,611 |
|
|
$ |
6,992 |
|
|
$ |
1,953 |
|
|
$ |
13,603 |
|
|
$ |
5,006 |
|
Net income available to common shareholders |
|
6,611 |
|
|
|
6,992 |
|
|
|
1,953 |
|
|
|
13,603 |
|
|
|
5,006 |
|
Net income per share, basic |
|
0.69 |
|
|
|
0.73 |
|
|
|
0.20 |
|
|
|
1.42 |
|
|
|
0.53 |
|
Net income per share, diluted |
|
0.69 |
|
|
|
0.73 |
|
|
|
0.20 |
|
|
|
1.42 |
|
|
|
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Beginning January
1, 2023, calculation is based on current expected loss methodology.
Prior to January 1, 2023, calculation was based on incurred
loss methodology. |
Codorus Valley
Bancorp, Inc. |
|
|
|
|
Financial
Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial
Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
|
Year-to-Date |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
June 30, |
|
|
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
|
2023 |
|
2022 |
Earnings and Per Share Data (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,611 |
|
|
$ |
6,992 |
|
|
$ |
7,932 |
|
|
$ |
7,154 |
|
|
$ |
1,953 |
|
|
|
$ |
13,603 |
|
$ |
5,006 |
|
Basic
earnings per share |
|
$ |
0.69 |
|
|
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
0.75 |
|
|
$ |
0.20 |
|
|
|
$ |
1.42 |
|
$ |
0.53 |
|
Diluted
earnings per share |
|
$ |
0.69 |
|
|
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
0.75 |
|
|
$ |
0.20 |
|
|
|
$ |
1.42 |
|
$ |
0.52 |
|
Cash
dividends paid per share |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
|
$ |
0.32 |
|
$ |
0.30 |
|
Book value
per share |
|
$ |
19.34 |
|
|
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
|
$ |
18.37 |
|
|
|
$ |
19.34 |
|
$ |
18.37 |
|
Tangible
book value per share (2) |
|
$ |
19.10 |
|
|
$ |
19.04 |
|
|
$ |
18.27 |
|
|
$ |
17.39 |
|
|
$ |
18.13 |
|
|
|
$ |
19.10 |
|
$ |
18.13 |
|
Tangible
book value per share without AOCI (8) |
|
$ |
22.81 |
|
|
$ |
22.26 |
|
|
$ |
21.90 |
|
|
$ |
21.21 |
|
|
$ |
20.59 |
|
|
|
$ |
22.81 |
|
$ |
20.59 |
|
Average
shares outstanding |
|
|
9,600 |
|
|
|
9,585 |
|
|
|
9,566 |
|
|
|
9,545 |
|
|
|
9,532 |
|
|
|
|
9,593 |
|
|
9,509 |
|
Average
diluted shares outstanding |
|
|
9,610 |
|
|
|
9,612 |
|
|
|
9,589 |
|
|
|
9,568 |
|
|
|
9,565 |
|
|
|
|
9,612 |
|
|
9,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets (3) |
|
|
1.22 |
|
|
|
1.29 |
|
|
|
1.43 |
|
|
|
1.25 |
|
|
|
0.34 |
|
|
|
|
1.25 |
|
|
0.42 |
|
Return on
average equity (3) |
|
|
14.17 |
|
|
|
15.45 |
|
|
|
18.50 |
|
|
|
15.93 |
|
|
|
4.31 |
|
|
|
|
14.80 |
|
|
5.35 |
|
Net interest
margin (4) |
|
|
3.81 |
|
|
|
4.00 |
|
|
|
3.98 |
|
|
|
3.66 |
|
|
|
3.18 |
|
|
|
|
3.90 |
|
|
2.98 |
|
Efficiency
ratio (5) |
|
|
64.19 |
|
|
|
59.05 |
|
|
|
60.87 |
|
|
|
63.51 |
|
|
|
74.43 |
|
|
|
|
61.57 |
|
|
74.47 |
|
Net overhead
ratio (3)(6) |
|
|
2.10 |
|
|
|
1.93 |
|
|
|
2.13 |
|
|
|
2.04 |
|
|
|
2.11 |
|
|
|
|
2.02 |
|
|
1.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs to average loans (3) |
|
|
0.20 |
|
|
|
0.15 |
|
|
|
0.24 |
|
|
|
0.02 |
|
|
|
0.54 |
|
|
|
|
0.17 |
|
|
0.51 |
|
Allowance
for credit losses to total loans (7) |
|
|
1.23 |
|
|
|
1.31 |
|
|
|
1.27 |
|
|
|
1.39 |
|
|
|
1.44 |
|
|
|
|
1.23 |
|
|
1.44 |
|
Nonperforming assets to total loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and foreclosed real estate |
|
|
0.70 |
|
|
|
0.55 |
|
|
|
0.70 |
|
|
|
0.99 |
|
|
|
1.05 |
|
|
|
|
0.70 |
|
|
1.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
equity to average assets |
|
|
8.58 |
|
|
|
8.38 |
|
|
|
7.75 |
|
|
|
7.84 |
|
|
|
7.78 |
|
|
|
|
8.48 |
|
|
7.93 |
|
Tier 1
leverage capital ratio |
|
|
10.38 |
|
|
|
10.20 |
|
|
|
9.77 |
|
|
|
9.18 |
|
|
|
8.79 |
|
|
|
10.38 |
|
|
8.79 |
|
Common
equity Tier 1 capital ratio |
|
|
12.37 |
|
|
|
12.19 |
|
|
|
12.04 |
|
|
|
11.80 |
|
|
|
11.63 |
|
|
|
12.37 |
|
|
11.63 |
|
Tier 1
risk-based capital ratio |
|
|
12.94 |
|
|
|
12.76 |
|
|
|
12.61 |
|
|
|
12.38 |
|
|
|
12.23 |
|
|
|
12.94 |
|
|
12.23 |
|
Total
risk-based capital ratio |
|
|
15.85 |
|
|
|
15.75 |
|
|
|
15.57 |
|
|
|
15.42 |
|
|
|
15.30 |
|
|
|
15.85 |
|
|
15.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) per share amounts
and shares outstanding were adjusted for stock dividends |
(2) non-GAAP measure -
book value less goodwill and core deposit intangibles; see
reconciliation below |
(3) annualized for the
quarterly periods presented |
(4) net interest
income (tax-equivalent) as a percentage of average interest earning
assets |
(5) noninterest
expense as a percentage of net interest income and noninterest
income (tax-equivalent) |
(6) noninterest
expense less noninterest income as a percentage of average
assets |
(7) excludes loans
held for sale |
(8) non-GAAP measure -
book value less accumulated other comprehensive income; see
reconciliation below |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (Tangible Book Value and Tangible Book
Value without AOCI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands, except per share data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
|
|
|
|
|
Total
Shareholders' Equity |
|
$ |
185,869 |
|
|
$ |
184,946 |
|
|
$ |
177,300 |
|
|
$ |
168,339 |
|
|
$ |
175,282 |
|
|
|
|
|
|
|
Less:
Goodwill and Other Intangible Assets |
|
|
(2,302 |
) |
|
|
(2,303 |
) |
|
|
(2,303 |
) |
|
|
(2,303 |
) |
|
|
(2,304 |
) |
|
|
|
|
|
|
Tangible
Shareholders' Equity |
|
$ |
183,567 |
|
|
$ |
182,643 |
|
|
$ |
174,997 |
|
|
$ |
166,036 |
|
|
$ |
172,978 |
|
|
|
|
|
|
|
Less: Accumulated Other Comprehensive Income |
|
(35,650 |
) |
|
|
(30,941 |
) |
|
|
(34,764 |
) |
|
|
(36,499 |
) |
|
|
(23,462 |
) |
|
|
|
|
|
|
Tangible Shareholders' Equity without AOCI |
|
$ |
219,217 |
|
|
$ |
213,584 |
|
|
$ |
209,761 |
|
|
$ |
202,535 |
|
|
$ |
196,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Shares Outstanding |
|
|
9,611 |
|
|
|
9,594 |
|
|
|
9,581 |
|
|
|
9,548 |
|
|
|
9,541 |
|
|
|
|
|
|
|
Book Value
Per Share |
|
$ |
19.34 |
|
|
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
|
$ |
18.37 |
|
|
|
|
|
|
|
Effect of
Intangible Assets |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
|
|
|
|
Tangible Book Value Per Share |
|
$ |
19.10 |
|
|
$ |
19.04 |
|
|
$ |
18.27 |
|
|
$ |
17.39 |
|
|
$ |
18.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value
Per Share |
|
$ |
19.34 |
|
|
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
|
$ |
18.37 |
|
|
|
|
|
|
|
Effect of
Intangible Assets and AOCI |
|
|
3.47 |
|
|
|
2.98 |
|
|
|
3.39 |
|
|
|
3.58 |
|
|
|
2.22 |
|
|
|
|
|
|
|
Tangible Book Value Per Share without AOCI |
|
$ |
22.81 |
|
|
$ |
22.26 |
|
|
$ |
21.90 |
|
|
$ |
21.21 |
|
|
$ |
20.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This report contains
certain financial information determined by methods other than in
accordance with GAAP. This non-GAAP disclosure has limitation as an
analytical tool and should not be considered in isolation or
as a substitute for the analysis of the Corporation's results as
reported under GAAP, nor is it necessarily comparable to
non-GAAP performance measures that may be presented by other
companies. Our management uses this non-GAAP measure in its
analysis of our performance because it believes this
measure is material and will be used as a measure of our
performance by investors. |
ANALYSIS OF NET INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances and Interest Rates, Taxable-Equivalent
Basis (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
(Dollars in thousands) |
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with banks |
|
$ |
43,006 |
|
$ |
545 |
|
|
5.08 |
% |
|
$ |
60,286 |
|
$ |
684 |
|
|
4.60 |
% |
|
$ |
331,335 |
|
$ |
648 |
|
|
0.78 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
370,345 |
|
|
2,543 |
|
|
2.75 |
|
|
|
369,154 |
|
|
2,474 |
|
|
2.72 |
|
|
|
317,889 |
|
|
1,742 |
|
|
2.20 |
|
Tax-exempt |
|
|
22,581 |
|
|
121 |
|
|
2.15 |
|
|
|
23,537 |
|
|
125 |
|
|
2.15 |
|
|
|
25,561 |
|
|
132 |
|
|
2.07 |
|
Total investment securities |
|
|
392,926 |
|
|
2,664 |
|
|
2.72 |
|
|
|
392,691 |
|
|
2,599 |
|
|
2.68 |
|
|
|
343,450 |
|
|
1,874 |
|
|
2.19 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) |
|
|
1,644,775 |
|
|
24,630 |
|
|
6.01 |
|
|
|
1,613,154 |
|
|
22,860 |
|
|
5.75 |
|
|
|
1,557,857 |
|
|
16,648 |
|
|
4.29 |
|
Tax-exempt |
|
|
22,292 |
|
|
214 |
|
|
3.85 |
|
|
|
22,597 |
|
|
217 |
|
|
3.89 |
|
|
|
15,837 |
|
|
176 |
|
|
4.46 |
|
Total loans |
|
|
1,667,067 |
|
|
24,844 |
|
|
5.98 |
|
|
|
1,635,751 |
|
|
23,077 |
|
|
5.72 |
|
|
|
1,573,694 |
|
|
16,824 |
|
|
4.29 |
|
Total earning assets |
|
|
2,102,999 |
|
|
28,053 |
|
|
5.35 |
|
|
|
2,088,728 |
|
|
26,360 |
|
|
5.12 |
|
|
|
2,248,479 |
|
|
19,346 |
|
|
3.45 |
|
Other assets (2) |
|
|
72,796 |
|
|
|
|
|
|
|
71,428 |
|
|
|
|
|
|
|
82,763 |
|
|
|
|
|
Total assets |
|
$ |
2,175,795 |
|
|
|
|
|
|
$ |
2,160,156 |
|
|
|
|
|
|
$ |
2,331,242 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
|
$ |
899,474 |
|
|
4,612 |
|
|
2.06 |
% |
|
$ |
902,917 |
|
|
3,461 |
|
|
1.55 |
% |
|
$ |
981,025 |
|
|
431 |
|
|
0.18 |
% |
Savings |
|
|
151,143 |
|
|
12 |
|
|
0.03 |
|
|
|
160,062 |
|
|
12 |
|
|
0.03 |
|
|
|
165,245 |
|
|
12 |
|
|
0.03 |
|
Time |
|
|
411,309 |
|
|
2,453 |
|
|
2.39 |
|
|
|
393,732 |
|
|
1,664 |
|
|
1.71 |
|
|
|
423,298 |
|
|
567 |
|
|
0.54 |
|
Total interest bearing deposits |
|
|
1,461,926 |
|
|
7,077 |
|
|
1.94 |
|
|
|
1,456,711 |
|
|
5,137 |
|
|
1.43 |
|
|
|
1,569,568 |
|
|
1,010 |
|
|
0.26 |
|
Short-term borrowings |
|
|
44,139 |
|
|
437 |
|
|
3.97 |
|
|
|
12,894 |
|
|
38 |
|
|
1.20 |
|
|
|
12,080 |
|
|
12 |
|
|
0.40 |
|
Long-term debt |
|
|
14,520 |
|
|
208 |
|
|
5.75 |
|
|
|
14,690 |
|
|
194 |
|
|
5.37 |
|
|
|
21,828 |
|
|
153 |
|
|
2.81 |
|
Subordinated debentures |
|
|
30,798 |
|
|
369 |
|
|
4.81 |
|
|
|
30,777 |
|
|
369 |
|
|
4.86 |
|
|
|
30,717 |
|
|
369 |
|
|
4.82 |
|
Total interest bearing liabilities |
|
|
1,551,383 |
|
|
8,091 |
|
|
2.09 |
|
|
|
1,515,072 |
|
|
5,738 |
|
|
1.54 |
|
|
|
1,634,193 |
|
|
1,544 |
|
|
0.38 |
|
Noninterest bearing deposits |
|
|
418,504 |
|
|
|
|
|
|
|
444,416 |
|
|
|
|
|
|
|
503,211 |
|
|
|
|
|
Other liabilities |
|
|
19,277 |
|
|
|
|
|
|
|
18,250 |
|
|
|
|
|
|
|
12,531 |
|
|
|
|
|
Shareholders' equity |
|
|
186,631 |
|
|
|
|
|
|
|
182,418 |
|
|
|
|
|
|
|
181,307 |
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,175,795 |
|
|
|
|
|
|
$ |
2,160,156 |
|
|
|
|
|
|
$ |
2,331,242 |
|
|
|
|
|
Net interest income (tax equivalent basis) |
|
|
|
$ |
19,962 |
|
|
|
|
|
|
|
$ |
20,622 |
|
|
|
|
|
|
|
$ |
17,802 |
|
|
|
|
Net interest margin (3) |
|
|
|
|
|
3.81 |
% |
|
|
|
|
|
4.00 |
% |
|
|
|
|
|
3.18 |
% |
Tax equivalent adjustment |
|
|
|
|
(63 |
) |
|
|
|
|
|
|
|
(67 |
) |
|
|
|
|
|
|
|
(63 |
) |
|
|
|
Net interest income |
|
|
|
$ |
19,899 |
|
|
|
|
|
|
|
$ |
20,555 |
|
|
|
|
|
|
|
$ |
17,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances include nonaccrual loans. |
|
(2) Average balances include bank owned life insurance and
foreclosed real estate. |
|
(3) Net interest income (tax-equivalent basis) annualized as a
percentage of average interest earning assets. |
|
ANALYSIS OF NET INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances and Interest Rates, Taxable-Equivalent Basis
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended |
|
|
|
|
June 30, 2023 |
|
|
June 30, 2022 |
|
|
(Dollars in
thousands) |
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
Average Balance |
|
Taxable-Equivalent Interest |
|
Taxable-Equivalent Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with banks |
|
$ |
51,598 |
|
$ |
1,229 |
|
|
4.80 |
% |
|
$ |
407,024 |
|
$ |
876 |
|
|
0.43 |
% |
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
369,754 |
|
|
5,017 |
|
|
2.74 |
|
|
|
288,164 |
|
|
3,031 |
|
|
2.12 |
|
|
Tax-exempt |
|
|
23,057 |
|
|
246 |
|
|
2.15 |
|
|
|
25,075 |
|
|
256 |
|
|
2.06 |
|
|
Total investment securities |
|
|
392,811 |
|
|
5,263 |
|
|
2.70 |
|
|
|
313,239 |
|
|
3,287 |
|
|
2.12 |
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) |
|
|
1,629,051 |
|
|
47,490 |
|
|
5.88 |
|
|
|
1,537,122 |
|
|
32,241 |
|
|
4.23 |
|
|
Tax-exempt |
|
|
22,443 |
|
|
431 |
|
|
3.87 |
|
|
|
13,378 |
|
|
287 |
|
|
4.33 |
|
|
Total loans |
|
|
1,651,494 |
|
|
47,921 |
|
|
5.85 |
|
|
|
1,550,500 |
|
|
32,528 |
|
|
4.23 |
|
|
Total earning assets |
|
|
2,095,903 |
|
|
54,413 |
|
|
5.24 |
|
|
|
2,270,763 |
|
|
36,691 |
|
|
3.26 |
|
|
Other assets
(2) |
|
|
72,031 |
|
|
|
|
|
|
|
87,410 |
|
|
|
|
|
|
Total assets |
|
$ |
2,167,934 |
|
|
|
|
|
|
$ |
2,358,173 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
|
$ |
901,186 |
|
|
8,073 |
|
|
1.81 |
% |
|
$ |
989,158 |
|
$ |
761 |
|
|
0.16 |
% |
|
Savings |
|
|
155,578 |
|
|
24 |
|
|
0.03 |
|
|
|
160,639 |
|
|
24 |
|
|
0.03 |
|
|
Time |
|
|
402,569 |
|
|
4,117 |
|
|
2.06 |
|
|
|
437,138 |
|
|
1,287 |
|
|
0.59 |
|
|
Total interest bearing deposits |
|
|
1,459,333 |
|
|
12,214 |
|
|
1.69 |
|
|
|
1,586,935 |
|
|
2,072 |
|
|
0.26 |
|
|
Short-term
borrowings |
|
|
28,603 |
|
|
475 |
|
|
3.35 |
|
|
|
11,029 |
|
|
22 |
|
|
0.40 |
|
|
Long-term
debt |
|
|
14,605 |
|
|
402 |
|
|
5.55 |
|
|
|
22,591 |
|
|
308 |
|
|
2.75 |
|
|
Subordinated
debentures |
|
|
30,787 |
|
|
738 |
|
|
4.83 |
|
|
|
30,706 |
|
|
738 |
|
|
4.85 |
|
|
Total interest bearing liabilities |
|
|
1,533,328 |
|
|
13,829 |
|
|
1.82 |
|
|
|
1,651,261 |
|
|
3,140 |
|
|
0.38 |
|
|
Noninterest
bearing deposits |
|
|
431,394 |
|
|
|
|
|
|
|
507,162 |
|
|
|
|
|
|
Other
liabilities |
|
|
19,391 |
|
|
|
|
|
|
|
12,649 |
|
|
|
|
|
|
Shareholders' equity |
|
|
183,821 |
|
|
|
|
|
|
|
187,101 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,167,934 |
|
|
|
|
|
|
$ |
2,358,173 |
|
|
|
|
|
|
Net interest
income (tax equivalent basis) |
|
|
|
$ |
40,584 |
|
|
|
|
|
|
|
$ |
33,551 |
|
|
|
|
|
Net interest
margin (3) |
|
|
|
|
|
3.90 |
% |
|
|
|
|
|
2.98 |
% |
|
Tax
equivalent adjustment |
|
|
|
|
(130 |
) |
|
|
|
|
|
|
|
(111 |
) |
|
|
|
|
Net interest
income |
|
|
|
$ |
40,454 |
|
|
|
|
|
|
|
$ |
33,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances
include nonaccrual loans. |
|
|
(2) Average balances
include bank owned life insurance and foreclosed real estate. |
|
|
(3) Net interest
income (tax-equivalent basis) annualized as a percentage of average
interest earning assets. |
|
|
Codorus Valley Bancorp (NASDAQ:CVLY)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Codorus Valley Bancorp (NASDAQ:CVLY)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024