First Quarter 2022
Total assets of $961 million was an increase of $25.4 million or 2.7% over last year. Cash balances increased by $12.4 million or 45.2% as deposits remain elevated. Investment securities of $222 million grew almost $41.8 million or 23.2% over last year. As cash balances remain high and are not used for loan demand, we deploy the excess into the bond portfolio to enhance our interest income. Loan balances at March 2022 were $645 million or $38.7 million less than a year earlier. As mentioned in previous letters, we expected some decreases as Paycheck Protection Program (PPP) loans continue to be forgiven. Balances of these loans decreased by over $94 million from last year with approximately $16 million remaining. Excluding the PPP loans, several other categories of loans experienced growth year over year including non-residential construction, residential mortgages, multi-family as well as commercial mortgages.
Peter Bochnovich
President and Chief Executive Officer
Consolidated Financial Highlights
(unaudited)
(dollars in thousands, except per share)
Performance for the three months ended March 31, |
2022
|
2021 | % Increase (decrease) |
---|---|---|---|
Interest income |
$9,210 | $8,645 | 6.5% |
Interest expense | $628 | $842 | (25.4%) |
Net interest income | $8,582 | $7,803 | 10.0% |
Net income | $3,191 | $2,628 | 21.4% |
Shareholders' Value (per share) | 2022 | 2021 | % Increase (decrease) |
Net income - basic | $1.26 | $1.04 | 21.2% |
Net income - diluted | $1.26 | $1.04 | 21.2% |
Dividends | $.36 | $.34 | 5.9% |
Book value | $36.74 | $38.07 | (3.5%) |
Market value | $44.75 | $36.00 | 24.3% |
Market value/book value ratio | 121.8% | 94.6% | 28.8% |
*Price/earnings multiple | 8.9X | 8.7X | 2.3% |
*Dividend yield | 3.22% | 3.78% | (14.8%) |
Financial Ratios | 2022 | 2021 | % Increase (decrease) |
*Return on average assets | 1.33% | 1.15% | 15.7% |
*Return on average equity | 12.75% | 10.88% | 17.2% |
Efficiency ratio | 59.57% | 62.12% | (4.1%) |
Net interest margin | 3.96% | 3.78% | 4.8% |
Shareholders' equity/asset ratio | 9.73% | 10.23% | (4.9%) |
Dividend payout ratio | 28.57% | 32.69% | (12.6%) |
Nonperforming assets/total assets | 1.46% | 1.91% | (23.6%) |
Allowance for loan losses as a % of loans | 1.81% | 1.58% | 14.6% |
Net charge-offs/average loans | - | .02% | (100.0%) |
Allowance for loan losses/nonaccrual loans |
85.61% | 64.25% | 33.2% |
Allowance for loan losses/nonperforming loans |
84.29% | 61.73% | 36.5% |
Financial Position at March 31, | 2022 | 2021 | % Increase (decrease) |
Assets | $960,681 | $935,319 | 2.7% |
Loans | $644,618 | $683,289 | (5.7%) |
Deposits | $819,556 | $742,271 | 10.4% |
Stockholder' equity | $93,499 | $95,648 | (2.2%) |
*annualized
Consolidated Balance Sheet
(unaudited) (in thousands)
Assets
|
3/31/2022 | 3/31/2021 |
---|---|---|
Cash and cash equivalents |
$39,846 | $27,438 |
Mortgage loans held for sale |
- | $505 |
Investment securities available for sale |
$221,511 | $179,751 |
Loans, net of allowance for loan losses |
$632,976 | $672,484 |
Premises and equipment | $16,361 | $12,502 |
Accrued interest receivable | $2,830 | $2,977 |
Other real estate owned | $224 | $333 |
Other assets | $46,933 | $39,329 |
Total Assets | $960,681 | $935,319 |
Liabilities |
3/31/2022 | 3/31/2021 |
Deposits - Noninterest-bearing | $197,883 | $186,683 |
Deposits - Interest-bearing | $621,673 | $555,588 |
Total Deposits | $819,556 | $742,271 |
Short-term borrowings |
$2,500 | $22,500 |
Other borrowed funds | $34,045 | $61,721 |
Accrued interest payable | $122 | $191 |
Other liabilities | $10,959 | $12,988 |
Total Liabilities | $867,182 | $839,671 |
Total Stockholders' Equity | $93,499 | $95,648 |
Total Liabilities & Stockholders' Equity
|
$960,681 | $935,319 |
Consolidated Statement of Income
(unaudited) (in thousands, except per share data)
Three months ended | Three months ended | |
---|---|---|
Interest Income | 3/31/2022 | 3/31/2021 |
Loans, including fees | $8,040 | $7,641 |
Investment securities | $1,109 | $937 |
Other | $61 | $67 |
Total interest income | $9,210 | $8,645 |
Interest Expense | 3/31/2022 | 3/31/2021 |
Deposits | $420 | $492 |
Short-term borrowings | $4 | $17 |
Other borrowed funds | $204 | $333 |
Total interest expense | $628 | $842 |
Net Interest Income | $8,582 | $7,803 |
Provision for loan losses | $135 | $300 |
Net Interest Income, After Provision for Loan Losses | $8,447 | $7,503 |
Noninterest income | $1,400 | $1,316 |
Noninterest expense | $6,031 | $5,751 |
Income before income taxes | $3,816 | $3,068 |
Income taxes | $625 | $440 |
Net Income | $3,191 | $2,628 |
Earnings per share-basic | $1.26 | $1.04 |
Earnings per share-diluted | $1.26 | $1.04 |
Average shares outstanding-basic | 2,536,721 | 2,516,759 |
Average shares outstanding-diluted |
2,542,251 | 2,528,733 |