WILLIAMSPORT, Pa., Jan. 26, 2022 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ:PWOD)

Penns Woods Bancorp, Inc. achieved net income of $16.0 million for the twelve months ended December 31, 2021, resulting in basic and diluted earnings per share of $2.27.

Highlights

Net income, as reported under GAAP, for the three and twelve months ended December 31, 2021 was $4.9 million and $16.0 million, respectively, compared to $3.9 million and $15.2 million for the same periods of 2020. Results for the three and twelve months ended December 31, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $11,000 (from a gain of $295,000 to a gain of $284,000) for the three month period and a decrease in after-tax securities gains of $749,000 (from a gain of $1.3 million to a gain of $521,000) for the twelve month period.
The provision for loan losses decreased $885,000 and $2.0 million, respectively, for the three and twelve months ended December 31, 2021, to ($300,000) and $640,000 compared to $585,000 and $2.6 million for the 2020 periods. The provision for loan losses was elevated in 2020 due primarily to the uncertainty caused by the COVID-19 pandemic.
Basic and diluted earnings per share for the three and twelve months ended December 31, 2021 were $0.69 and $2.27, respectively. Basic and diluted earnings per share for the three and twelve months ended December 31, 2020 were $0.55 and $2.16, respectively.
Return on average assets was 1.02% for three months ended December 31, 2021, compared to 0.85% for the corresponding period of 2020. Return on average assets was 0.85% for the twelve months ended December 31, 2021, compared to 0.85% for the corresponding period of 2020.
Return on average equity was 11.59% for the three months ended December 31, 2021, compared to 9.55% for the corresponding period of 2020. Return on average equity was 9.93% for the twelve months ended December 31, 2021, compared to 9.66% for the corresponding period of 2020.

COVID-19 Activity

Approximately one third of employees working remotely.
As of December 31, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $379,000 in loan principal remaining in deferral.
All COVID-19 related loan deferrals meet the requirements to not be considered a troubled debt restructuring.
Participated in the Paycheck Protection Program ("PPP") by primarily utilizing third parties to service and place the loans.
Significantly reduced deposit rates during the latter half of March 2020 continuing through December 2021.
Total paycheck protection program loans originated to be held on balance sheet totaled $30.6 million with $4.0 million remaining on the balance sheet at December 31, 2021.

Net Income

Net income from core operations ("core earnings"), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains or losses, was $4.6 million for the three months ended December 31, 2021 compared to $3.6 million for the same period of 2020. Core earnings were $15.5 million for the twelve months ended December 31, 2021, compared to $13.9 million for the same period of 2020. Core earnings per share for the three months ended December 31, 2021 were $0.65 basic and diluted, compared to $0.51 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the twelve months ended December 31, 2021 were $2.20 basic and diluted, compared to $1.98 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.96% and 10.92% for the three months ended December 31, 2021, compared to 0.79% and 8.83% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.82% and 9.61% for the twelve months ended December 31, 2021 compared to 0.78% and 8.85% for the corresponding period of 2020. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, and core earnings per share described in this press release to the comparable GAAP financial measures is included at the end of this press release.

Net Interest Margin

The net interest margin for the three and twelve months ended December 31, 2021 was 2.90% and 2.85%, compared to 2.81% and 2.94% for the corresponding period of 2020. The increase in the net interest margin for the three month period and decrease for the twelve month period was driven by a decrease in the yield of the loan portfolio of 19 and 28 basis points ("bps"), while the investment portfolio yield declined 38 and 54 bps, respectively, during the current low interest rate environment. Offsetting the decline in yield on the earning asset portfolio was a decline in rate paid on interest-bearing deposits of 44 and 51 bps for the three and twelve month periods as rates paid were decreased significantly during 2020 and 2021 due to the economic impact of COVID-19 prolonging the low interest rate environment.

Assets

Total assets increased $106.2 million to $1.9 billion at December 31, 2021 compared to December 31, 2020. Cash and cash equivalents increased significantly as federal funds sold increased $50 million due to deposit growth resulting from the various economic recovery programs instituted at the state and federal levels that impacted both commercial and retail customers, coupled with customers becoming more risk averse and seeking safety in a bank deposit. Net loans increased $47.4 million to $1.4 billion at December 31, 2021 compared to December 31, 2020, as the COVID-19 business and travel restrictions and supply chain interruptions curtailed various lending activities such as indirect auto, home equity, and commercial. Lending activity began to rebound as business and travel restrictions were lessened during the second half of 2020 and continued to rebound in 2021 in particular the fourth quarter. The investment portfolio increased $3.3 million from December 31, 2020 to December 31, 2021 as a portion of the excess cash liquidity was invested into short-term municipal bonds.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.45% at December 31, 2021 from 0.77% at December 31, 2020 as non-performing loans have decreased to $6.3 million at December 31, 2021 from $10.3 million at December 31, 2020. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $267,000 for the twelve months ended December 31, 2021 impacted the allowance for loan losses, which was 1.02% of total loans at December 31, 2021 compared to 1.03% at December 31, 2020.

Deposits

Deposits increased $126.9 million to $1.6 billion at December 31, 2021 compared to December 31, 2020. Noninterest-bearing deposits increased $45.0 million to $494.4 million at December 31, 2021 compared to December 31, 2020. Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk averse and seeking safety in a bank deposit. Emphasis remains on increasing the utilization of electronic (internet and mobile) deposit banking among our customers. Utilization of internet and mobile banking has increased since the start of 2020 due to these efforts coupled with a change in consumer behavior due to the business and travel restrictions caused by the COVID-19 pandemic. The increased level of deposits has allowed for a decrease in long-term borrowings.

Shareholders' Equity

Shareholders' equity increased $8.1 million to $172.3 million at December 31, 2021 compared to December 31, 2020. Accumulated other comprehensive loss of $1.1 million at December 31, 2021 increased from a loss of $882,000 at December 31, 2020 as a result of a decrease of $2.3 million in the net unrealized gain on available for sale securities and a change in the defined benefit plan of $2.1 million. The current level of shareholders' equity equates to a book value per share of $24.37 at December 31, 2021 compared to $23.27 at December 31, 2020, and an equity to asset ratio of 8.88% at December 31, 2021 and 8.95% at December 31, 2020. Dividends declared for the twelve months ended December 31, 2021 and 2020 were $1.28 per share.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products. Investment and insurance products are offered through Jersey Shore State 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 such as net securities gains and losses. Because these certain items and their impact on the Company's performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company's core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain "forward-looking statements" including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company's organization, compensation and benefit plans; (iii) the effect on the Company's competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; or (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies. For a list of other factors which could affect the Company's results, see the Company's filings with the Securities and Exchange Commission, including "Item 1A. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

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

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

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

PENNS WOODS BANCORP, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

	December 31,
(In Thousands, Except Share Data)		2021			2020		% Change
ASSETS:
Noninterest-bearing balances	$	19,233		$	31,821		(39.56)%
Interest-bearing balances in other financial institutions		194,629			181,537		7.21%
Federal funds sold		50,000			—		n/a
Total cash and cash equivalents		263,862			213,358		23.67%

Investment debt securities, available for sale, at fair value		166,410			162,261		2.56%
Investment equity securities, at fair value		1,251			1,288		(2.87)%
Investment securities, trading		37			40		(7.50)%
Restricted investment in bank stock, at fair value		14,531			15,377		(5.50)%
Loans held for sale		3,725			5,239		(28.90)%
Loans		1,392,147			1,344,327		3.56%
Allowance for loan losses		(14,176	)		(13,803	)	2.70%
Loans, net		1,377,971			1,330,524		3.57%
Premises and equipment, net		34,025			32,702		4.05%
Accrued interest receivable		8,048			8,394		(4.12)%
Bank-owned life insurance		33,768			33,638		0.39%
Investment in limited partnerships		4,607			3,944		16.81%
Goodwill		17,104			17,104		—%
Intangibles		480			671		(28.46)%
Operating lease right of use asset		2,851			3,136		(9.09)%
Deferred tax asset		2,946			2,526		16.63%
Other assets		9,193			4,441		107.00%
TOTAL ASSETS	$	1,940,809		$	1,834,643		5.79%

LIABILITIES:
Interest-bearing deposits	$	1,126,955		$	1,045,086		7.83%
Noninterest-bearing deposits		494,360			449,357		10.01%
Total deposits		1,621,315			1,494,443		8.49%

Short-term borrowings		5,747			5,244		9.59%
Long-term borrowings		125,963			153,475		(17.93)%
Accrued interest payable		651			1,112		(41.46)%
Operating lease liability		2,898			3,175		(8.72)%
Other liabilities		11,961			13,048		(8.33)%
TOTAL LIABILITIES		1,768,535			1,670,497		5.87%

SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued		—			—		n/a
Common stock, par value $5.55, 22,500,000 shares authorized; 7,550,272 and 7,532,576 shares issued; 7,070,047 and 7,052,351 shares outstanding		41,945			41,847		0.23%
Additional paid-in capital		53,795			52,523		2.42%
Retained earnings		89,761			82,769		8.45%
Accumulated other comprehensive gain (loss):
Net unrealized gain on available for sale securities		2,373			4,714		(49.66)%
Defined benefit plan		(3,485	)		(5,596	)	(37.72)%
Treasury stock at cost, 480,225		(12,115	)		(12,115	)	—%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY		172,274			164,142		4.95%
Non-controlling interest		—			4		(100.00)%
TOTAL SHAREHOLDERS' EQUITY		172,274			164,146		4.95%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,940,809		$	1,834,643		5.79%

PENNS WOODS BANCORP, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

	Three Months Ended December 31,									Twelve Months Ended December 31,
(In Thousands, Except Per Share Data)		2021			2020		% Change				2021			2020		% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	13,406		$	13,814		(2.95)%			$	53,232		$	57,217		(6.96)%
Investment securities:
Taxable		790			820		(3.66)%				3,281			3,778		(13.16)%
Tax-exempt		160			166		(3.61)%				655			650		0.77	%
Dividend and other interest income		343			246		39.43	%			1,246			993		25.48	%
TOTAL INTEREST AND DIVIDEND INCOME		14,699			15,046		(2.31)%				58,414			62,638		(6.74)%

INTEREST EXPENSE:
Deposits		1,064			2,159		(50.72)%				5,545			10,565		(47.52)%
Short-term borrowings		2			6		(66.67)%				9			43		(79.07)%
Long-term borrowings		712			914		(22.10)%				3,142			3,807		(17.47)%
TOTAL INTEREST EXPENSE		1,778			3,079		(42.25)%				8,696			14,415		(39.67)%

NET INTEREST INCOME		12,921			11,967		7.97	%			49,718			48,223		3.10	%

PROVISION FOR LOAN LOSSES		(300	)		585		(151.28)%				640			2,625		(75.62)%

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		13,221			11,382		16.16	%			49,078			45,598		7.63	%

NON-INTEREST INCOME:
Service charges		485			441		9.98	%			1,703			1,690		0.77	%
Debt securities gains, available for sale		376			372		1.08	%			699			1,592		(56.09)%
Equity securities (losses) gains		(12	)		(3	)	(300.00)%				(37	)		27		(237.04)%
Securities (losses) gains, trading		(4	)		5		(180.00)%				(3	)		(11	)	72.73	%
Bank-owned life insurance		302			161		87.58	%			916			653		40.28	%
Gain on sale of loans		440			1,227		(64.14)%		.		2,474			4,148		(40.36)%
Insurance commissions		117			96		21.88	%			553			416		32.93	%
Brokerage commissions		188			191		(1.57)%				851			970		(12.27)%
Debit card income		345			344		0.29	%			1,511			1,280		18.05	%
Other		958			241		297.51	%			3,002			1,403		113.97	%
TOTAL NON-INTEREST INCOME		3,195			3,075		3.90	%			11,669			12,168		(4.10)%

NON-INTEREST EXPENSE:
Salaries and employee benefits		5,907			5,270		12.09	%			23,014			21,632		6.39	%
Occupancy		771			723		6.64	%			3,209			2,650		21.09	%
Furniture and equipment		859			886		(3.05)%				3,522			3,411		3.25	%
Software amortization		236			235		0.43	%			868			978		(11.25)%
Pennsylvania shares tax		253			341		(25.81)%				1,350			1,289		4.73	%
Professional fees		550			474		16.03	%			2,432			2,362		2.96	%
Federal Deposit Insurance Corporation deposit insurance		258			289		(10.73)%				963			939		2.56	%
Marketing		111			91		21.98	%			545			261		108.81	%
Intangible amortization		44			53		(16.98)%				191			227		(15.86)%
Other		1,270			1,278		(0.63)%				4,811			5,319		(9.55)%
TOTAL NON-INTEREST EXPENSE		10,259			9,640		6.42	%			40,905			39,068		4.70	%
INCOME BEFORE INCOME TAX PROVISION		6,157			4,817		27.82	%			19,842			18,698		6.12	%
INCOME TAX PROVISION		1,278			911		40.29	%			3,794			3,474		9.21	%
NET INCOME	$	4,879		$	3,906		24.91	%		$	16,048		$	15,224		5.41	%
Earnings attributable to noncontrolling interest		—			5		(100.00)%				15			18		(16.67)%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'	$	4,879		$	3,901		25.07	%		$	16,033		$	15,206		5.44	%
EARNINGS PER SHARE - BASIC	$	0.69		$	0.55		25.45	%		$	2.27		$	2.16		5.09	%
EARNINGS PER SHARE - DILUTED	$	0.69		$	0.55		25.45	%		$	2.27		$	2.16		5.09	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC		7,068,327			7,050,389		0.25	%			7,061,818			7,044,542		0.25	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED		7,068,327			7,050,389		0.25	%			7,061,818			7,044,542		0.25	%
DIVIDENDS DECLARED PER SHARE	$	0.32		$	0.32		—	%		$	1.28		$	1.28		—	%

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

(UNAUDITED)

	Three Months Ended
	December 31, 2021						December 31, 2020
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	46,583	$	317	2.70	%	$	42,882	$	303	2.81	%
All other loans		1,320,972		13,156	3.95	%		1,304,521		13,575	4.14	%
Total loans		1,367,555		13,473	3.91	%		1,347,403		13,878	4.10	%

Federal funds sold		47,391		85	0.71	%		—		—	—	%

Taxable securities		148,434		978	2.67	%		140,074		1,048	3.04	%
Tax-exempt securities		38,043		202	2.15	%		33,187		210	2.57	%
Total securities		186,477		1,180	2.57	%		173,261		1,258	2.95	%

Interest-bearing deposits		184,591		70	0.15	%		183,428		18	0.04	%

Total interest-earning assets		1,786,014		14,808	3.30	%		1,704,092		15,154	3.54	%

Other assets		130,859						123,352

TOTAL ASSETS	$	1,916,873					$	1,827,444

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	233,791		22	0.04	%	$	206,563		47	0.09	%
Super Now deposits		345,653		206	0.24	%		271,600		433	0.63	%
Money market deposits		301,651		211	0.28	%		277,980		304	0.44	%
Time deposits		218,260		625	1.14	%		285,281		1,375	1.92	%
Total interest-bearing deposits		1,099,355		1,064	0.38	%		1,041,424		2,159	0.82	%

Short-term borrowings		7,255		2	0.11	%		11,068		6	0.29	%
Long-term borrowings		125,991		712	2.25	%		153,506		914	2.50	%
Total borrowings		133,246		714	2.13	%		164,574		920	2.35	%

Total interest-bearing liabilities		1,232,601		1,778	0.57	%		1,205,998		3,079	1.03	%

Demand deposits		496,478						439,841
Other liabilities		19,463						18,218
Shareholders' equity		168,331						163,387

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,916,873					$	1,827,444
Interest rate spread					2.73	%					2.51	%
Net interest income/margin			$	13,030	2.90	%			$	12,075	2.81	%

	Three Months Ended December 31,
		2021		2020
Total interest income	$	14,699	$	15,046
Total interest expense		1,778		3,079
Net interest income		12,921		11,967
Tax equivalent adjustment		109		108
Net interest income (fully taxable equivalent)	$	13,030	$	12,075

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

(UNAUDITED)

	Twelve Months Ended
	December 31, 2021						December 31, 2020
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	46,312	$	1,308	2.82	%	$	45,650	$	1,441	3.16	%
All other loans		1,299,321		52,199	4.02	%		1,304,209		56,079	4.30	%
Total loans		1,345,633		53,507	3.98	%		1,349,859		57,520	4.26	%

Federal funds sold		28,395		202	0.71	%		—		—	—	%

Taxable securities		148,066		4,083	2.80	%		142,714		4,630	3.30	%
Tax-exempt securities		36,993		829	2.27	%		28,973		823	2.89	%
Total securities		185,059		4,912	2.69	%		171,687		5,453	3.23	%

Interest-bearing deposits		201,273		242	0.12	%		140,022		141	0.10	%

Total interest-earning assets		1,760,360		58,863	3.35	%		1,661,568		63,114	3.80	%

Other assets		129,582						118,536

TOTAL ASSETS	$	1,889,942					$	1,780,104

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	225,637		116	0.05	%	$	193,568		256	0.13	%
Super Now deposits		307,446		900	0.29	%		254,177		1,755	0.69	%
Money market deposits		305,883		972	0.32	%		245,633		1,529	0.62	%
Time deposits		244,341		3,557	1.46	%		338,895		7,025	2.07	%
Total interest-bearing deposits		1,083,307		5,545	0.51	%		1,032,273		10,565	1.02	%

Short-term borrowings		7,178		9	0.13	%		12,660		43	0.34	%
Long-term borrowings		135,474		3,142	2.32	%		162,636		3,807	2.34	%
Total borrowings		142,652		3,151	2.21	%		175,296		3,850	2.20	%

Total interest-bearing liabilities		1,225,959		8,696	0.71	%		1,207,569		14,415	1.19	%

Demand deposits		478,984						394,210
Other liabilities		23,568						20,858
Shareholders' equity		161,431						157,467

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,889,942					$	1,780,104
Interest rate spread					2.64	%					2.61	%
Net interest income/margin			$	50,167	2.85	%			$	48,699	2.94	%

	Twelve Months Ended December 31,
		2021		2020
Total interest income	$	58,414	$	62,638
Total interest expense		8,696		14,415
Net interest income		49,718		48,223
Tax equivalent adjustment		449		476
Net interest income (fully taxable equivalent)	$	50,167	$	48,699

(Dollars in Thousands, Except Per Share Data, Unaudited)	Quarter Ended
	12/31/2021			9/30/2021			6/30/2021			3/31/2021			12/31/2020
Operating Data
Net income	$	4,879		$	4,125		$	3,588		$	3,441		$	3,901
Net interest income		12,921			12,632			12,095			12,070			11,967
Provision for loan losses		(300	)		75			350			515			585
Net security gains		360			40			140			119			374
Non-interest income, excluding net security gains		2,835			2,911			2,769			2,495			2,701
Non-interest expense		10,259			10,447			10,248			9,951			9,640

Performance Statistics
Net interest margin		2.90	%		2.85	%		2.78	%		2.88	%		2.81	%
Annualized return on average assets		1.02	%		0.86	%		0.76	%		0.75	%		0.85	%
Annualized return on average equity		11.59	%		9.85	%		8.70	%		8.59	%		9.55	%
Annualized net loan charge-offs (recoveries) to average loans		0.02	%		(0.01	)%		0.03	%		0.04	%		0.06	%
Net charge-offs (recoveries)		81			(44	)		114			116			211
Efficiency ratio		64.83	%		66.93	%		68.61	%		67.96	%		65.36	%

Per Share Data
Basic earnings per share	$	0.69		$	0.58		$	0.51		$	0.49		$	0.55
Diluted earnings per share		0.69			0.58			0.51			0.49			0.55
Dividend declared per share		0.32			0.32			0.32			0.32			0.32
Book value		24.37			23.84			23.63			23.25			23.27
Common stock price:
High		24.65			24.42			26.51			27.78			27.30
Low		23.50			22.78			23.03			20.55			19.61
Close		23.65			23.92			23.82			24.09			26.01
Weighted average common shares:
Basic		7,068			7,064			7,060			7,055			7,050
Fully Diluted		7,068			7,064			7,060			7,055			7,050
End-of-period common shares:
Issued		7,550			7,546			7,542			7,537			7,533
Treasury		480			480			480			480			480

(Dollars in Thousands, Except Per Share Data, Unautdited)	Quarter Ended
	12/31/2021			9/30/2021			6/30/2021			3/31/2021			12/31/2020
Financial Condition Data:
General
Total assets	$	1,940,809		$	1,910,791		$	1,894,870		$	1,896,192		$	1,834,643
Loans, net		1,377,971			1,332,668			1,323,509			1,321,697			1,330,524
Goodwill		17,104			17,104			17,104			17,104			17,104
Intangibles		480			524			568			618			671
Total deposits		1,621,315			1,593,019			1,563,696			1,564,364			1,494,443
Noninterest-bearing		494,360			481,875			477,344			478,916			449,357
Savings		236,312			231,189			226,573			224,890			209,924
NOW		366,399			340,441			296,450			290,355			287,775
Money Market		318,877			305,156			301,405			324,207			283,742
Time Deposits		205,367			234,358			261,924			245,996			263,645
Total interest-bearing deposits		1,126,955			1,111,144			1,086,352			1,085,448			1,045,086

Core deposits*		1,415,948			1,358,661			1,301,772			1,318,368			1,230,798
Shareholders' equity		172,274			168,478			166,830			164,059			164,142

Asset Quality
Non-performing loans	$	6,250		$	7,763		$	7,931		$	9,272		$	10,334
Non-performing loans to total assets		0.32	%		0.41	%		0.42	%		0.49	%		0.56	%
Allowance for loan losses		14,176			14,557			14,438			14,202			13,803
Allowance for loan losses to total loans		1.02	%		1.08	%		1.08	%		1.06	%		1.03	%
Allowance for loan losses to non-performing loans		226.82	%		187.52	%		182.05	%		153.17	%		133.57	%
Non-performing loans to total loans		0.45	%		0.58	%		0.59	%		0.69	%		0.77	%

Capitalization
Shareholders' equity to total assets		8.88	%		8.82	%		8.80	%		8.65	%		8.95	%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

	Three Months Ended December 31,						Twelve Months Ended December 31,
(Dollars in Thousands, Except Per Share Data)		2021			2020			2021			2020
GAAP net income	$	4,879		$	3,901		$	16,033		$	15,206
Less: net securities gains, net of tax		284			295			521			1,270
Non-GAAP core earnings	$	4,595		$	3,606		$	15,512		$	13,936

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2021			2020			2021			2020
Return on average assets (ROA)		1.02	%		0.85	%		0.85	%		0.85	%
Less: net securities gains, net of tax		0.06	%		0.06	%		0.03	%		0.07	%
Non-GAAP core ROA		0.96	%		0.79	%		0.82	%		0.78	%

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2021			2020			2021			2020
Return on average equity (ROE)		11.59	%		9.55	%		9.93	%		9.66	%
Less: net securities gains, net of tax		0.67	%		0.72	%		0.32	%		0.81	%
Non-GAAP core ROE		10.92	%		8.83	%		9.61	%		8.85	%

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2021			2020			2021			2020
Basic earnings per share (EPS)	$	0.69		$	0.55		$	2.27		$	2.16
Less: net securities gains, net of tax		0.04			0.04			0.07			0.18
Non-GAAP basic core EPS	$	0.65		$	0.51		$	2.20		$	1.98

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2021			2020			2021			2020
Diluted EPS	$	0.69		$	0.55		$	2.27		$	2.16
Less: net securities gains, net of tax		0.04			0.04			0.07			0.18
Non-GAAP diluted core EPS	$	0.65		$	0.51		$	2.20		$	1.98

COVID-19 Loan Deferrals as of December 31, 2021

(In Thousands, Unaudited)	Amount
Commercial, financial, and agricultural	$	—
Real estate mortgage:
Residential		192
Commercial		158
Consumer automobile loans		20
Other consumer installment loans		9
Total loan deferrals	$	379