WILLIAMSPORT, Pa., July 22, 2020 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $6.8 million for the six months ended June 30, 2020, resulting in basic and diluted earnings per share of $0.97.

Highlights

• Net income, as reported under GAAP, for the three and six months ended June 30, 2020 was $3.8 million and $6.8 million,  respectively compared to $4.2 and $8.2 million for the same period of 2019. Results for the three and six months ended June 30, 2020 compared to 2019 were impacted by an increase in after-tax securities gains of $138,000 (from a gain of $18,000 to a gain of $156,000) for the three month period and $108,000 (from a gain of $70,000 to a gain of $178,000) for the six month period.
  
  
• The provision for loan losses increased $330,000 and $720,000, respectfully, for the three and six months ended June 30, 2020, to $645,000 and $1,395,000 compared to $315,000 and $675,000 for the 2019 periods.  The increase is the result of the economic uncertainty caused by the COVID-19 pandemic.
  
  
• Basic and diluted earnings per share for the three and six months ended June 30, 2020 were $0.53 and $0.97, respectively, compared to basic and diluted earnings per share of $0.60 and $1.16 for the three and six months ended June 30, 2019.
  
  
• Return on average assets was 0.85% for the three months ended June 30, 2020, compared to 1.02% for the corresponding period of 2019. Return on average assets was 0.79% for the six months ended June 30, 2020, compared to 0.99% for the corresponding period of 2019.
  
  
• Return on average equity was 9.59% for the three months ended June 30, 2020, compared to 11.42% for the corresponding period of 2019. Return on average equity was 8.75% for the six months ended June 30, 2020, compared to 11.27% for the corresponding period of 2019.

COVID-19 Activity

• Approximately one third of employees working remotely.
  
  
• As of June 30, 2020, loan modification/deferral program in place to defer payments up to 90 days for principal and/or interest with $241.6 million in loan principal affected by this program.
  
  
• 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 June 2020.
  
  
• Increased the provision for loan losses due to the economic uncertainty caused by the COVID-19 pandemic.
  
  
• Net interest margin compression expected to continue as the rate environment remains below historical levels.
  
  
• Total paycheck protection program loans held at June 30, 2020 total $12.3 million.

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 $3.6 million for the three months ended June 30, 2020 compared to $4.2 million for the same period of 2019.  Core earnings were $6.7 million for the six months ended June 30, 2020, compared to $8.1 million for the same period of 2019. Core earnings per share for the three months ended June 30, 2020 were $0.51 basic and diluted, compared to $0.60 basic and diluted core earnings per share for the same period of 2019. Core earnings per share for the six months ended June 30, 2020 were $0.95 basic and diluted, compared to $1.15 basic and diluted for the same period of 2019. Core return on average assets and core return on average equity were 0.81% and 9.19% for the three months ended June 30, 2020, compared to 1.01% and 11.37% for the corresponding period of 2019. Core return on average assets and core return on average equity were 0.77% and 8.52% for the six months ended June 30, 2020 compared to 0.98% and 11.18% for the corresponding period of 2019. 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 six months ended June 30, 2020 was 3.01% and 3.09%, compared to 3.39% and 3.37% for the corresponding periods of 2019. The decrease in the net interest margin was driven by a decrease in the yield of the investment portfolio of 64 and 63 basis points ("bps"), respectively, for the three and six month periods. Further compressing the net interest margin was the significant increase of interest-bearing deposits within the earning asset portfolio. These deposits carry a current yield of a few basis points with the balance steadily increasing as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing liabilities were decreased during the three months ended June 30, 2020 and will partially offset the decline in earning asset yield.

Assets

Total assets increased $126.9 million to $1.8 billion at June 30, 2020 compared to June 30, 2019.  Net loans decreased $28.9 million to $1.3 billion at June 30, 2020 compared to June 30, 2019, as the COVID-19 business and travel restrictions curtailed various lending activities such as indirect auto, home equity, and commercial.  Lending activity began to rebound as business and travel restrictions were lessened.  The investment portfolio increased $17.9 million from June 30, 2019 to June 30, 2020 due to increases in the corporate and taxable municipal portfolios.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.82% at June 30, 2020 from 1.12% at June 30, 2019 as non-performing loans have decreased to $11.1 million at June 30, 2020 from $15.4 million at June 30, 2019 primarily due to a commercial loan relationship that was partially charged-off during the fourth quarter of 2019. 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 $312,000 for the six months ended June 30, 2020 impacted the allowance for loan losses, which was 0.96% of total loans at June 30, 2020 compared to 1.02% at June 30, 2019.

Deposits

Deposits increased $147.2 million to $1.5 billion at June 30, 2020 compared to June 30, 2019.  Noninterest-bearing deposits increased $95.6 million to $418.3 million at June 30, 2020 compared to June 30, 2019.  Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers,  and customers becoming  more risk adverse and seeking safety in a bank deposit. Emphasis during 2020 has been 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.

Shareholders’ Equity

Shareholders’ equity increased $8.1 million to $159.6 million at June 30, 2020 compared to June 30, 2019. The change in accumulated other comprehensive loss from $2.8 million at June 30, 2019 to $1.0 million at June 30, 2020 is a result of an increase in unrealized gains on available for sale securities (from an unrealized gain of $2,419,000 at June 30, 2019 to an unrealized gain of $4.2 million at June 30, 2020). The amount of accumulated other comprehensive loss at June 30, 2020 was also impacted by the change in net excess of the projected benefit obligation over the fair value of the plan assets of the defined benefit pension plan, resulting in a decrease in the net loss of $43,000. The current level of shareholders’ equity equates to a book value per share of $22.66 at June 30, 2020 compared to $21.53 at June 30, 2019, and an equity to asset ratio of 8.68% at June 30, 2020 compared to 8.85% at June 30, 2019. Dividends declared for the six months ended June 30, 2020 and 2019 were $0.64 per share and $0.63 per share, respectively.

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, and Union Counties, and Luzerne Bank, which operates nine branch offices providing financial services in Luzerne County.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.  Insurance products are offered through United Insurance Solutions, LLC, a joint venture that is a subsidiary of the holding company.

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, 2019.

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

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)

		June 30,
(In Thousands, Except Share Data)		2020				2019				% Change
ASSETS:
Noninterest-bearing balances		$	26,932			$	21,102			27.63	%
Interest-bearing balances in other financial institutions		188,242				58,423				222.21	%
Total cash and cash equivalents		215,174				79,525				170.57	%
Investment debt securities, available for sale, at fair value		164,369				145,689				12.82	%
Investment equity securities, at fair value		1,291				1,841				(29.88	)%
Investment securities, trading		37				44				(15.91	)%
Restricted investment in bank stock, at fair value		14,849				15,087				(1.58	)%
Loans held for sale		5,146				2,880				78.68	%
Loans		1,349,347				1,379,285				(2.17	)%
Allowance for loan losses		(12,977		)		(14,001		)		(7.31	)%
Loans, net		1,336,370				1,365,284				(2.12	)%
Premises and equipment, net		32,873				33,483				(1.82	)%
Accrued interest receivable		8,068				5,708				41.35	%
Bank-owned life insurance		29,368				28,955				1.43	%
Goodwill		17,104				17,104				—	%
Intangibles		777				1,022				(23.97	)%
Operating lease right of use asset		3,231				4,279				(24.49	)%
Deferred tax asset		3,284				3,712				(11.53	)%
Other assets		6,423				6,887				(6.74	)%
TOTAL ASSETS		$	1,838,364			$	1,711,500			7.41	%
LIABILITIES:
Interest-bearing deposits		$	1,055,981			$	1,004,331			5.14	%
Noninterest-bearing deposits		418,324				322,755				29.61	%
Total deposits		1,474,305				1,327,086				11.09	%
Short-term borrowings		15,133				59,453				(74.55	)%
Long-term borrowings		171,885				154,597				11.18	%
Accrued interest payable		1,530				1,482				3.24	%
Operating lease liability		3,263				4,286				(23.87	)%
Other liabilities		12,640				13,055				(3.18	)%
TOTAL LIABILITIES		1,678,756				1,559,959				7.62	%
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; 7,522,573 and 7,519,347 shares issued; 7,042,348 and 7,039,122 shares outstanding		41,792				41,773				0.05	%
Additional paid-in capital		51,956				51,087				1.70	%
Retained earnings		78,910				73,565				7.27	%
Accumulated other comprehensive loss:
Net unrealized gain on available for sale securities		4,194				2,419				73.38	%
Defined benefit plan		(5,159		)		(5,202		)		0.83	%
Treasury stock at cost, 480,225		(12,115		)		(12,115		)		—	%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY		159,578				151,527				5.31	%
Non-controlling interest		30				14				114.29	%
TOTAL SHAREHOLDERS' EQUITY		159,608				151,541				5.32	%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,838,364			$	1,711,500			7.41	%

PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)

		Three Months Ended June 30,											Six Months Ended June 30,
(In Thousands, Except Per Share Data)		2020				2019				% Change			2020				2019				% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees		$	14,666			$	15,300			(4.14	)%		$	29,323			$	30,169			(2.80	)%
Investment securities:
Taxable		1,023				967				5.79	%		2,033				1,901				6.94	%
Tax-exempt		169				179				(5.59	)%		314				353				(11.05	)%
Dividend and other interest income		186				395				(52.91	)%		535				852				(37.21	)%
TOTAL INTEREST AND DIVIDEND INCOME		16,044				16,841				(4.73	)%		32,205				33,275				(3.22	)%
INTEREST EXPENSE:
Deposits		2,802				2,871				(2.40	)%		5,837				5,171				12.88	%
Short-term borrowings		7				178				(96.07	)%		29				783				(96.30	)%
Long-term borrowings		985				879				12.06	%		1,928				1,730				11.45	%
TOTAL INTEREST EXPENSE		3,794				3,928				(3.41	)%		7,794				7,684				1.43	%
NET INTEREST INCOME		12,250				12,913				(5.13	)%		24,411				25,591				(4.61	)%
PROVISION FOR LOAN LOSSES		645				315				104.76	%		1,395				675				106.67	%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		11,605				12,598				(7.88	)%		23,016				24,916				(7.63	)%
NON-INTEREST INCOME:
Service charges		312				592				(47.30	)%		861				1,154				(25.39	)%
Debt securities gains (losses), available for sale		186				(2		)		9,400.00	%		207				11				1,781.82	%
Equity securities gains		11				22				(50.00	)%		31				65				(52.31	)%
Securities gains (losses), trading		1				3				(66.67	)%		(13		)		13				(200.00	)%
Bank-owned life insurance		144				123				17.07	%		336				291				15.46	%
Gain on sale of loans		1,028				347				196.25	%		1,472				663				122.02	%
Insurance commissions		92				119				(22.69	)%		219				253				(13.44	)%
Brokerage commissions		186				356				(47.75	)%		555				679				(18.26	)%
Debit card income		310				389				(20.31	)%		584				699				(16.45	)%
Other		351				520				(32.50	)%		806				895				(9.94	)%
TOTAL NON-INTEREST INCOME		2,621				2,469				6.16	%		5,058				4,723				7.09	%
NON-INTEREST EXPENSE:
Salaries and employee benefits		5,230				5,523				(5.31	)%		10,897				11,024				(1.15	)%
Occupancy		626				668				(6.29	)%		1,328				1,447				(8.22	)%
Furniture and equipment		828				784				5.61	%		1,688				1,536				9.90	%
Software amortization		236				188				25.53	%		486				395				23.04	%
Pennsylvania shares tax		323				285				13.33	%		608				578				5.19	%
Professional fees		658				727				(9.49	)%		1,280				1,249				2.48	%
Federal Deposit Insurance Corporation deposit insurance		185				236				(21.61	)%		379				504				(24.80	)%
Marketing		56				33				69.70	%		109				135				(19.26	)%
Intangible amortization		59				69				(14.49	)%		121				140				(13.57	)%
Other		1,410				1,546				(8.80	)%		2,825				2,865				(1.40	)%
TOTAL NON-INTEREST EXPENSE		9,611				10,059				(4.45	)%		19,721				19,873				(0.76	)%
INCOME BEFORE INCOME TAX PROVISION		4,615				5,008				(7.85	)%		8,353				9,766				(14.47	)%
INCOME TAX PROVISION		851				759				12.12	%		1,512				1,571				(3.76	)%
NET INCOME		$	3,764			$	4,249			(11.41	)%		$	6,841			$	8,195			(16.52	)%
Earnings attributable to noncontrolling interest		4				4				n/a			8				6				33.33	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'		$	3,760			$	4,245			(11.43	)%		$	6,833			$	8,189			(16.56	)%
EARNINGS PER SHARE - BASIC		$	0.53			$	0.60			(11.67	)%		$	0.97			$	1.16			(16.38	)%
EARNINGS PER SHARE - DILUTED		$	0.53			$	0.60			(11.67	)%		$	0.97			$	1.16			(16.38	)%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC		7,041,629				7,038,503				0.04	%		7,041,185				7,038,068				0.04	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED		7,041,629				7,038,503				0.04	%		7,041,185				7,038,068				0.04	%
DIVIDENDS DECLARED PER SHARE		$	0.32			$	0.31			3.23	%		$	0.64			$	0.63			1.59	%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

		Three Months Ended
		June 30, 2020											June 30, 2019
(Dollars in Thousands)		Average Balance				Interest				Average Rate			Average Balance				Interest				Average Rate
ASSETS:
Tax-exempt loans		$	44,916			$	348			3.12	%		$	71,193			$	548			3.09	%
All other loans		1,294,745				14,391				4.47	%		1,313,388				14,867				4.54	%
Total loans		1,339,661				14,739				4.43	%		1,384,581				15,415				4.47	%
Taxable securities		147,352				1,193				3.29	%		130,802				1,300				4.03	%
Tax-exempt securities		28,280				213				3.06	%		27,971				227				3.29	%
Total securities		175,632				1,406				3.26	%		158,773				1,527				3.90	%
Interest-bearing deposits		144,948				16				0.04	%		10,431				62				2.38	%
Total interest-earning assets		1,660,241				16,161				3.92	%		1,553,785				17,004				4.39	%
Other assets		116,750											113,443
TOTAL ASSETS		$	1,776,991										$	1,667,228
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	190,243			67				0.14	%		$	170,142			51				0.12	%
Super Now deposits		251,691				409				0.65	%		246,454				453				0.74	%
Money market deposits		229,362				418				0.73	%		249,169				596				0.96	%
Time deposits		362,545				1,908				2.12	%		335,721				1,771				2.12	%
Total interest-bearing deposits		1,033,841				2,802				1.09	%		1,001,486				2,871				1.15	%
Short-term borrowings		11,174				7				0.83	%		32,086				178				2.23	%
Long-term borrowings		171,895				985				2.21	%		147,571				879				2.24	%
Total borrowings		183,069				992				2.12	%		179,657				1,057				2.23	%
Total interest-bearing liabilities		1,216,910				3,794				1.24	%		1,181,143				3,928				1.31	%
Demand deposits		384,591											317,623
Other liabilities		18,583											19,747
Shareholders’ equity		156,907											148,715
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,776,991										$	1,667,228
Interest rate spread										2.68	%										3.08	%
Net interest income/margin						$	12,367			3.01	%						$	13,076			3.39	%

		Three Months Ended June 30,
		2020				2019
Total interest income		$	16,044			$	16,841
Total interest expense		3,794				3,928
Net interest income		12,250				12,913
Tax equivalent adjustment		117				163
Net interest income (fully taxable equivalent)		$	12,367			$	13,076

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES

		Six Months Ended
		June 30, 2020											June 30, 2019
(Dollars in Thousands)		Average Balance				Interest				Average Rate			Average Balance				Interest				Average Rate
ASSETS:
Tax-exempt loans		$	48,346			$	752			3.13	%		$	71,874			$	1,087			3.05	%
All other loans		1,299,893				28,729				4.44	%		1,313,121				29,310				4.50	%
Total loans		1,348,239				29,481				4.40	%		1,384,995				30,397				4.43	%
Taxable securities		145,070				2,466				3.46	%		128,431				2,650				4.18	%
Tax-exempt securities		26,027				397				3.10	%		27,344				447				3.31	%
Total securities		171,097				2,863				3.40	%		155,775				3,097				4.03	%
Interest-bearing deposits		85,832				102				0.24	%		8,493				103				2.45	%
Total interest-earning assets		1,605,168				32,446				4.07	%		1,549,263				33,597				4.38	%
Other assets		114,085											112,806
TOTAL ASSETS		$	1,719,253										$	1,662,069
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	184,042			158				0.17	%		$	168,543			81				0.10	%
Super Now deposits		235,758				833				0.71	%		239,022				832				0.70	%
Money market deposits		220,035				895				0.82	%		245,307				1,068				0.88	%
Time deposits		370,902				3,951				2.14	%		317,782				3,190				2.02	%
Total interest-bearing deposits		1,010,737				5,837				1.16	%		970,654				5,171				1.07	%
Short-term borrowings		11,011				29				0.53	%		63,881				783				2.47	%
Long-term borrowings		166,024				1,928				2.34	%		145,890				1,730				2.24	%
Total borrowings		177,035				1,957				2.22	%		209,771				2,513				2.31	%
Total interest-bearing liabilities		1,187,772				7,794				1.32	%		1,180,425				7,684				1.29	%
Demand deposits		355,704											315,380
Other liabilities		19,551											20,953
Shareholders’ equity		156,226											145,311
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,719,253										$	1,662,069
Interest rate spread										2.75	%										3.09	%
Net interest income/margin						$	24,652			3.09	%						$	25,913			3.37	%

		Six Months Ended June 30,
		2020				2019
Total interest income		$	32,205			$	33,275
Total interest expense		7,794				7,684
Net interest income		24,411				25,591
Tax equivalent adjustment		241				322
Net interest income (fully taxable equivalent)		$	24,652			$	25,913

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		6/30/2020				3/31/2020				12/31/2019				9/30/2019				6/30/2019
Operating Data
Net income		$	3,760			$	3,073			$	2,833			$	4,650			$	4,245
Net interest income		12,250				12,161				12,321				12,903				12,913
Provision for loan losses		645				750				1,700				360				315
Net security gains		198				28				489				170				23
Non-interest income, excluding net security gains		2,423				2,409				2,418				2,652				2,446
Non-interest expense		9,611				10,110				10,294				9,541				10,059
Performance Statistics
Net interest margin		3.01		%		3.19		%		3.22		%		3.32		%		3.39		%
Annualized return on average assets		0.85		%		0.74		%		0.68		%		1.10		%		1.02		%
Annualized return on average equity		9.60		%		7.83		%		7.22		%		12.18		%		11.42		%
Annualized net loan charge-offs to average loans		0.05		%		0.04		%		1.19		%		0.03		%		0.03		%
Net charge-offs		168				144				4,055				112				106
Efficiency ratio		65.10		%		68.96		%		69.42		%		60.98		%		65.04		%
Per Share Data
Basic earnings per share		$	0.53			$	0.44			$	0.40			$	0.66			$	0.60
Diluted earnings per share		0.53				0.43				0.39				0.66				0.60
Dividend declared per share		0.32				0.32				0.32				0.31				0.31
Book value		22.66				22.23				22.01				22.03				21.53
Common stock price:
High		27.75				35.36				35.58				30.93				30.17
Low		20.01				19.05				29.68				26.87				26.03
Close		22.71				24.30				35.58				30.83				30.17
Weighted average common shares:
Basic		7,042				7,041				7,040				7,037				7,038
Fully Diluted		7,042				7,103				7,338				7,037				7,038
End-of-period common shares:
Issued		7,523				7,521				7,521				7,518				7,518
Treasury		480				480				480				480				480

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		6/30/2020				3/31/2020				12/31/2019				9/30/2019				6/30/2019
Financial Condition Data:
General
Total assets		$	1,838,364			$	1,688,508			$	1,665,323			$	1,673,095			$	1,711,500
Loans, net		1,336,370				1,336,900				1,343,650				1,350,735				1,365,284
Goodwill		17,104				17,104				17,104				17,104				17,104
Intangibles		777				836				898				960				1,022
Total deposits		1,474,305				1,326,734				1,324,005				1,332,407				1,327,086
Noninterest-bearing		418,324				332,759				334,746				327,329				322,755
Savings		195,964				183,929				176,732				171,370				171,992
NOW		268,348				229,919				218,605				219,466				238,410
Money Market		247,753				204,832				216,038				239,926				238,352
Time Deposits		343,915				375,295				377,884				374,316				355,577
Total interest-bearing deposits		1,055,980				993,975				989,259				1,005,078				1,004,331
Core deposits*		1,130,389				951,439				946,121				958,091				971,509
Shareholders’ equity		159,578				156,562				154,960				155,061				151,527
Asset Quality
Non-performing loans		$	11,097			$	11,300			$	12,421			$	17,208			$	15,383
Non-performing loans to total assets		0.60		%		0.67		%		0.75		%		1.03		%		0.90		%
Allowance for loan losses		12,977				12,500				11,894				14,249				14,001
Allowance for loan losses to total loans		0.96		%		0.93		%		0.88		%		1.04		%		1.02		%
Allowance for loan losses to non-performing loans		116.94		%		110.62		%		95.76		%		82.80		%		91.02		%
Non-performing loans to total loans		0.82		%		0.84		%		0.92		%		1.26		%		1.12		%
Capitalization
Shareholders’ equity to total assets		8.68		%		9.27		%		9.31		%		9.27		%		8.85		%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

		Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data)		2020				2019				2020				2019
GAAP net income		$	3,760			$	4,245			$	6,833			$	8,189
Less: net securities gains, net of tax		156				18				178				70
Non-GAAP core earnings		$	3,604			$	4,227			$	6,655			$	8,119
		Three Months Ended June 30,								Six Months Ended June 30,
		2020				2019				2020				2019
Return on average assets (ROA)		0.85		%		1.02		%		0.79		%		0.99		%
Less: net securities gains, net of tax		0.04		%		0.01		%		0.02		%		0.01		%
Non-GAAP core ROA		0.81		%		1.01		%		0.77		%		0.98		%
		Three Months Ended June 30,								Six Months Ended June 30,
		2020				2019				2020				2019
Return on average equity (ROE)		9.59		%		11.42		%		8.75		%		11.27		%
Less: net securities gains, net of tax		0.40		%		0.05		%		0.23		%		0.09		%
Non-GAAP core ROE		9.19		%		11.37		%		8.52		%		11.18		%
		Three Months Ended June 30,								Six Months Ended June 30,
		2020				2019				2020				2019
Basic earnings per share (EPS)		$	0.53			$	0.60			$	0.97			$	1.16
Less: net securities gains, net of tax		0.02				—				0.02				0.01
Non-GAAP basic core EPS		$	0.51			$	0.60			$	0.95			$	1.15
		Three Months Ended June 30,								Six Months Ended June 30,
		2020				2019				2020				2019
Diluted EPS		$	0.53			$	0.60			$	0.97			$	1.16
Less: net securities gains, net of tax		0.02				—				0.02				0.01
Non-GAAP diluted core EPS		$	0.51			$	0.60			$	0.95			$	1.15

Loan Deferrals

(In Thousands)		Amount
Commercial, financial, and agricultural		$	28,482
Real estate mortgage:
Residential		66,133
Commercial		132,217
Construction		7,250
Consumer automobile loans		283
Other consumer installment loans		7,243
Total loan deferrals		$	241,608