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 $7.0 million or $0.73 per diluted common
share, for the first quarter of 2023. This compares to net income
of $3.1 million or $0.32 per diluted common share, for the first
quarter of 2022, representing an increase of $3.9 million or 129
percent and compares to net income of $7.9 million or $0.83 per
diluted common share for the fourth quarter of 2022, representing a
decrease of $900,000 or 11.9 percent.
Financial and operational highlights
include:
- First quarter net income of $7.0 million compared to net income
of $3.1 million in the year-ago quarter and $7.9 million in the
linked quarter
- Linked quarter 2 basis point increase in net interest margin to
4.00 percent, and 121 basis point increase from the quarter ended
March 31, 2022
- First quarter efficiency ratio of 59.05 percent
- First quarter ROA of 1.29 percent and ROE of 15.45 percent
- Continued improvement in credit metrics for five consecutive
quarters with nonperforming assets to total loans falling to 0.55
percent
- Cash dividend of $0.16 per share payable on May 9, 2023, to
common shareholders of record on April 25, 2023
“In the first quarter, the PeoplesBank team
continued to focus on the long-term financial well-being of our
Company,” stated Craig L. Kauffman, President and CEO. “Actions
taken during the quarter included efforts to increase our
liquidity, improve credit quality, fortify the balance sheet and
position ourselves to support our stakeholders.”
REVIEW OF RESULTS
Balance Sheet
Loans
Loans increased $15.0 million from December 31,
2022 to March 31, 2023, an annualized growth of 3.6 percent. During
the quarter, the Bank sold $2.0 million in loan notes. Non-accrual
loans decreased $2.3 million, or 21.3 percent to $8.6 million from
December 31, 2022 to March 31, 2023 due to the Bank’s continued
focus on improving asset quality.
Investment Securities
Investment Securities increased $4.4 million to
$349.9 million at March 31, 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 March 31, 2023 was 2.68 percent, compared to 2.03
percent for the three months ended March 31, 2022 and 2.55 percent
for the three months ended December 31, 2022. The unrealized loss
on the securities portfolio was $40.4 million at March 31, 2023,
compared to $17.7 million at March 31, 2022 and $45.5 million at
December 31, 2022.
Borrowings
FHLB advances and other short-term borrowings
increased $49.8 million to $61.4 million at March 31, 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 $53.8 million, or 2.8
percent from December 31, 2022 to March 31, 2023, ending the period
at $1.9 billion. From year-end 2022 to March 31, 2023,
noninterest-bearing demand accounts decreased $10.5 million or 2.3
percent, interest bearing demand accounts decreased $2.7 million or
1.0 percent, money market accounts decreased by $56.7 million or
8.8 percent and savings accounts decreased $3.9 million or 2.4
percent. Offsetting the decreases, certificates of deposit
increased by $20.0 million or 5.2 percent.
Income Statement
The Corporation’s net interest income for the
three months ended March 31, 2023 was $20.6 million, an increase of
30.9 percent when compared to $15.7 million for the same period in
2022 and a decrease of 4.2 percent when compared to $21.5 million
for the linked quarter. The Corporation’s tax-equivalent net
interest margin (“NIM”) was 4.00 percent for the three months ended
March 31, 2023, compared to 2.79 percent for the same period in
2022 and 3.98 percent for the linked quarter.
The Corporation’s provision for credit losses
for the three months ended March 31, 2023 was $738,000 compared to
a provision for loan losses of $1.0 million for the same period in
2022 and a recovery of the provision for loan losses of $544,000
for the linked quarter. The Corporation’s nonperforming assets
ratio was 0.55 percent at March 31, 2023, a 21.4 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 as such now
measures and records impairment on financial instruments at the
time of origination using the current expected credit loss
methodology. At adoption, allowance for credit losses increased
$2.8 million. The net impact to beginning retained earnings was
$2.1 million.
Noninterest income for the first quarter 2023
was $4.0 million, an increase of $100,000 or 3.1 percent, as
compared to noninterest income of $3.9 million for the first
quarter 2022 and an increase of $500,000 or 14.7 percent as
compared to the linked quarter. The increase in both periods was
primarily due to higher other income related to swap loan fees,
offset by the loss on sales of securities recognized during the
current quarter and lower gains on sales of loans held for sale
during the prior periods.
Noninterest expense was $14.8 million for the
first quarter 2023, an increase of $100,000 or 1.0 percent, as
compared to noninterest expense of $14.7 million for the first
quarter 2022 and a decrease of $500,000 compared to noninterest
expense of $15.3 million for the linked quarter. Year over year the
increase was attributed to higher personnel expenses offset by
lower professional and legal fees and lower impaired loan carrying
costs, due to a recovery in the current period. The decrease as
compared to the linked quarter was primarily the result of lower
charitable donations and impaired loan carrying costs, partially
offset by higher marketing expense.
Income tax expense for the quarter ended March
31, 2023 was $2.0 million compared to $800,000 for the same period
in 2022 and $2.2 million in the linked quarter. The effective tax
rate for the three months ended March 31, 2023, March 31, 2022 and
December 31, 2022 was 22.2 percent, 20.9 and 21.7 percent,
respectively.
Capital
Shareholders’ equity totaled $185.0 million at
March 31, 2023, an increase of $7.7 million from $177.3 million at
December 31, 2022. The increase was primarily attributable to net
income of $7.0 million and other comprehensive income of $3.8
million, partially offset by dividends paid of $1.5 million for the
three months ended March 31, 2023 and the adoption of ASC Topic 326
(CECL) of $2.1 million.
Book value per share was $19.28 and $18.51 at
March 31, 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 $19.04 per
share and $22.26 per share, respectively, at March 31, 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 12.19 percent at March 31, 2023, an increase from 12.04
percent at December 31, 2022. At March 31, 2023, all capital ratios
applicable to the Bank were above regulatory minimum levels and
deemed “well-capitalized” under current bank regulatory guidelines
(regulatory “well-capitalized” definition is not applicable to
small bank holding companies such as the Corporation).
Liquidity Risk Management
The Corporation maintains a well-diversified
deposit base and has a comparatively low level of uninsured
deposits. At March 31, 2023, 83% of our deposits are estimated to
be FDIC-insured, and an additional 7% of deposits were fully
collateralized. The average account size of our consumer deposit
base is less than $18,000, and the average account size of our
business deposit base is less than $90,000.
The Bank has not utilized the Federal Reserve’s
Bank Term Funding Facility as of March 31, 2023. The program has
attractive features, such as being able to utilize the par values
(rather than market values) of a bank’s investment securities that
are used as collateral for borrowings, and, for this reason, 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.
(1) Tangible book value per share and tangible book value per
share without accumulated other comprehensive loss are non-GAAP
financial measures. Please see Appendix for disclosure and
reconciliation.
Dividend Declared
On April 11, 2023, the Board of Directors of the
Corporation declared a regular quarterly cash dividend of $0.16 per
share, payable on May 9, 2023 to common shareholders of record at
the close of business on April 25, 2023. The payment of this $0.16
per share cash dividend in the first quarter 2023 is the same as
the prior quarter.
Business Lines
In the first quarter, Consumer Banking marketing
efforts focused on deposit accounts through a blend of traditional
and digital marketing efforts. Specific efforts focused on our
Momentum Checking & Savings products, auto loans, and HELOC
activations. This led to an overall 8% increase in website visitors
over the previous quarter, with a 20% increase in time spent on the
website. Consumer lending was also a focus, with a 25% increase in
applications in the first quarter of 2023 compared to the first
quarter of 2022, translating into a 303% increase in dollars
loaned. In the first quarter of 2023, we further expanded our
mortgage loan origination presence in the Maryland market by
onboarding a new mortgage sales manager. We also opened two
locations at Willow Valley Communities in Lancaster, PA to expand
our presence in that market.
Business Banking focused on helping its diverse
client base secure funding through its efficient and client-focused
services, such as our Preferred SBA Lender program. In addition,
client experience enhancements delivered new functionality and
benefits to our business clients. We successfully upgraded business
clients to our online banking platform, Q2, which offers new and
robust features and functionality for mobile compatibility, easier
transitions between personal and business accounts, reduced data
keying, expanded mobile functionality, and self-service tools to
manage statements and documents. This resulted in a 44% increase in
traffic to the business areas of peoplesbanknet.com, as well as a
21% increase in time spent on the website over the previous
quarter.
Through a variety of events, PeoplesBank Wealth
Management offered the expertise of its team, as well as industry
experts, to its clients. This included several Roundtable Events
and sponsorship of the York Economic Forum breakfast with Linda
Duessel, Senior Vice President, Senior Equity Strategist at
Federated Hermes.
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”.
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: general
economic conditions; the scope and duration of the on-going
COVID-19 pandemic; 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; legislative and regulatory
changes including actions taken by governmental authorities in
response to the COVID-19 pandemic; monetary and fiscal policies of
the federal government; the effects of changes in accounting
policies and practices, as may be adopted by the regulatory
agencies, as well as the Financial Accounting Standards Board and
other accounting standard setters; changes in market interest
rates; the persistence of the current inflationary environment in
the U.S. and our market areas; the uncertain impact of new laws and
regulations; 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, in each case as may be affected
by the COVID-19 pandemic; competition; market volatility, market
downturns, changes in consumer behavior, business closures; adverse
changes in the quality or composition of the Corporation’s loan,
investment and mortgage-backed securities portfolios; geographic
concentration of the Corporation’s business; fluctuations in real
estate values; the adequacy of loan loss reserves; deterioration in
the credit quality of borrowers; the Company’s ability to retain
key personnel; failure or disruption of the Corporation’s
information systems; failure or circumvention of our internal
controls; changes in government regulation and supervision;
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.
A discussion of certain risks and uncertainties
affecting the Corporation can also be found in its 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) |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands, except share and per share data) |
2023 |
|
2022 |
|
2022 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Interest bearing deposits with banks |
$ |
83,266 |
|
|
$ |
99,777 |
|
|
$ |
417,741 |
|
Cash and due from banks |
|
19,999 |
|
|
|
20,662 |
|
|
|
21,474 |
|
Total cash and cash equivalents |
|
103,265 |
|
|
|
120,439 |
|
|
|
439,215 |
|
Securities, available-for-sale, at fair value (amortized cost
$390,296, net of allowance for credit losses of $0) |
|
349,850 |
|
|
|
345,457 |
|
|
|
302,383 |
|
Restricted investment in bank stocks, at cost |
|
2,955 |
|
|
|
955 |
|
|
|
1,311 |
|
Loans held for sale |
|
0 |
|
|
|
154 |
|
|
|
2,016 |
|
Loans (net of deferred fees of $3,892 - 2023 and $3,813 -
2022) |
|
1,647,881 |
|
|
|
1,632,857 |
|
|
|
1,528,496 |
|
Less-allowance for credit losses (1) |
|
(21,544 |
) |
|
|
(20,736 |
) |
|
|
(22,027 |
) |
Net loans |
|
1,626,337 |
|
|
|
1,612,121 |
|
|
|
1,506,469 |
|
Premises and equipment, net |
|
21,297 |
|
|
|
21,136 |
|
|
|
21,779 |
|
Operating leases right-of-use assets |
|
2,933 |
|
|
|
3,072 |
|
|
|
3,584 |
|
Goodwill |
|
2,301 |
|
|
|
2,301 |
|
|
|
2,301 |
|
Other assets |
|
89,789 |
|
|
|
89,417 |
|
|
|
80,624 |
|
Total assets |
$ |
2,198,727 |
|
|
$ |
2,195,052 |
|
|
$ |
2,359,682 |
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
Noninterest bearing |
$ |
453,351 |
|
|
$ |
463,853 |
|
|
$ |
508,396 |
|
Interest bearing |
|
1,436,034 |
|
|
|
1,479,366 |
|
|
|
1,587,476 |
|
Total deposits |
|
1,889,385 |
|
|
|
1,943,219 |
|
|
|
2,095,872 |
|
Short-term borrowings |
|
61,371 |
|
|
|
11,605 |
|
|
|
10,778 |
|
Long-term debt |
|
11,543 |
|
|
|
11,550 |
|
|
|
21,571 |
|
Subordinate debentures - face amount $31,000 (less discount and
debt issuance cost of $216 at March 31, 2023 and $236 at December
31, 2022) |
|
30,784 |
|
|
|
30,764 |
|
|
|
30,703 |
|
Operating leases liabilities |
|
3,059 |
|
|
|
3,204 |
|
|
|
3,738 |
|
Allowance for credit losses on off-balance sheet credit
exposures |
|
2,135 |
|
|
|
0 |
|
|
|
0 |
|
Other liabilities |
|
15,504 |
|
|
|
17,410 |
|
|
|
13,301 |
|
Total liabilities |
|
2,013,781 |
|
|
|
2,017,752 |
|
|
|
2,175,963 |
|
Shareholders' equity |
|
|
|
|
|
|
|
|
Preferred stock, par value
$2.50 per share; 1,000,000 shares authorized; no shares issued or
outstanding |
|
- |
|
|
|
- |
|
|
|
- |
|
Common stock, par value $2.50 per share; 30,000,000 shares
authorized; shares issued: 9,883,660 at March 31, 2023 and December
31, 2022; and shares outstanding: 9,594,217 at March 31, 2023 and
9,581,230 at December 31, 2022 |
|
24,709 |
|
|
|
24,709 |
|
|
|
24,708 |
|
Additional paid-in capital |
|
142,098 |
|
|
|
141,896 |
|
|
|
141,409 |
|
Retained earnings |
|
55,456 |
|
|
|
52,146 |
|
|
|
39,401 |
|
Accumulated other comprehensive loss |
|
(30,941 |
) |
|
|
(34,764 |
) |
|
|
(13,957 |
) |
Treasury stock shares outstanding, at cost: 289,443 shares at March
31, 2023 and 302,430 at December 31, 2022 |
|
(6,376 |
) |
|
|
(6,687 |
) |
|
|
(7,842 |
) |
Total shareholders' equity |
|
184,946 |
|
|
|
177,300 |
|
|
|
183,719 |
|
Total liabilities and shareholders' equity |
$ |
2,198,727 |
|
|
$ |
2,195,052 |
|
|
$ |
2,359,682 |
|
|
|
|
|
|
|
|
|
|
(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 |
|
March 31, |
|
December 31, |
|
March 31, |
(dollars in thousands, except per share data) |
2023 |
|
2022 |
|
2022 |
Interest income |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
23,034 |
|
|
$ |
21,676 |
|
|
$ |
15,681 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
2,457 |
|
|
|
2,374 |
|
|
|
1,280 |
|
Tax-exempt |
|
101 |
|
|
|
110 |
|
|
|
99 |
|
Dividends |
|
17 |
|
|
|
14 |
|
|
|
9 |
|
Other |
|
684 |
|
|
|
1,226 |
|
|
|
228 |
|
Total interest income |
|
26,293 |
|
|
|
25,400 |
|
|
|
17,297 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
Deposits |
|
5,137 |
|
|
|
3,382 |
|
|
|
1,062 |
|
Federal funds purchased and other short-term borrowings |
|
38 |
|
|
|
13 |
|
|
|
10 |
|
Long-term debt |
|
28 |
|
|
|
30 |
|
|
|
105 |
|
Subordinated debentures |
|
535 |
|
|
|
514 |
|
|
|
419 |
|
Total interest expense |
|
5,738 |
|
|
|
3,939 |
|
|
|
1,596 |
|
Net interest income |
|
20,555 |
|
|
|
21,461 |
|
|
|
15,701 |
|
Provision (recovery) for credit losses - loans (1) |
|
492 |
|
|
|
(544 |
) |
|
|
1,027 |
|
Provision for credit losses - unfunded commitments (1) |
|
246 |
|
|
|
0 |
|
|
|
0 |
|
Net interest income after provision for credit losses |
|
19,817 |
|
|
|
22,005 |
|
|
|
14,674 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
Trust and investment services fees |
|
1,202 |
|
|
|
1,109 |
|
|
|
1,162 |
|
Income from mutual fund, annuity and insurance sales |
|
369 |
|
|
|
289 |
|
|
|
330 |
|
Service charges on deposit accounts |
|
1,485 |
|
|
|
1,458 |
|
|
|
1,282 |
|
Income from bank owned life insurance |
|
322 |
|
|
|
315 |
|
|
|
311 |
|
Other income |
|
862 |
|
|
|
401 |
|
|
|
419 |
|
Gain on sale of loans held for sale |
|
10 |
|
|
|
4 |
|
|
|
358 |
|
Gain on sale of assets held for sale |
|
118 |
|
|
|
13 |
|
|
|
0 |
|
Loss on sales of securities |
|
(388 |
) |
|
|
(119 |
) |
|
|
0 |
|
Total noninterest income |
|
3,980 |
|
|
|
3,470 |
|
|
|
3,862 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
Personnel |
|
9,042 |
|
|
|
8,937 |
|
|
|
8,390 |
|
Occupancy of premises, net |
|
978 |
|
|
|
1,004 |
|
|
|
979 |
|
Furniture and equipment |
|
838 |
|
|
|
851 |
|
|
|
887 |
|
Professional and legal |
|
467 |
|
|
|
345 |
|
|
|
859 |
|
Marketing |
|
276 |
|
|
|
592 |
|
|
|
400 |
|
FDIC insurance |
|
250 |
|
|
|
148 |
|
|
|
239 |
|
Debit card processing |
|
478 |
|
|
|
481 |
|
|
|
382 |
|
Charitable donations |
|
32 |
|
|
|
600 |
|
|
|
30 |
|
External data processing |
|
1,010 |
|
|
|
1,064 |
|
|
|
821 |
|
Loss on foreclosed real estate, including provision for losses |
|
0 |
|
|
|
25 |
|
|
|
0 |
|
Committee & Director Fees |
|
358 |
|
|
|
101 |
|
|
|
194 |
|
PA shares tax |
|
343 |
|
|
|
53 |
|
|
|
355 |
|
(Recovery of) impaired loan carrying costs |
|
(98 |
) |
|
|
34 |
|
|
|
138 |
|
Other |
|
837 |
|
|
|
1,112 |
|
|
|
1,002 |
|
Total noninterest expense |
|
14,811 |
|
|
|
15,347 |
|
|
|
14,676 |
|
Income before income taxes |
|
8,986 |
|
|
|
10,128 |
|
|
|
3,860 |
|
Provision for income taxes |
|
1,994 |
|
|
|
2,196 |
|
|
|
807 |
|
Net income |
$ |
6,992 |
|
|
$ |
7,932 |
|
|
$ |
3,053 |
|
Net income available to common shareholders |
|
6,992 |
|
|
|
7,932 |
|
|
|
3,053 |
|
Net income per share, basic |
|
0.73 |
|
|
|
0.83 |
|
|
|
0.32 |
|
Net income per share, diluted |
|
0.73 |
|
|
|
0.83 |
|
|
|
0.32 |
|
|
|
|
|
|
|
|
|
|
|
(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 (Unaudited) |
|
Quarterly |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
Earnings and Per Share Data |
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
Net income |
$ |
6,992 |
|
|
$ |
7,932 |
|
|
$ |
7,154 |
|
|
$ |
1,953 |
|
|
$ |
3,053 |
|
Basic earnings per share |
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
0.75 |
|
|
$ |
0.20 |
|
|
$ |
0.32 |
|
Diluted earnings per share |
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
0.75 |
|
|
$ |
0.20 |
|
|
$ |
0.32 |
|
Cash dividends paid per share |
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
Book value per share |
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
|
$ |
18.37 |
|
|
$ |
19.28 |
|
Tangible book value per share (1) |
$ |
19.04 |
|
|
$ |
18.27 |
|
|
$ |
17.39 |
|
|
$ |
18.13 |
|
|
$ |
19.04 |
|
Tangible book value per share without AOCI (1) |
$ |
22.26 |
|
|
$ |
21.90 |
|
|
$ |
21.21 |
|
|
$ |
20.59 |
|
|
$ |
20.50 |
|
Average shares outstanding |
|
9,585 |
|
|
|
9,566 |
|
|
|
9,545 |
|
|
|
9,532 |
|
|
|
9,486 |
|
Average diluted shares outstanding |
|
9,612 |
|
|
|
9,589 |
|
|
|
9,568 |
|
|
|
9,565 |
|
|
|
9,517 |
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (%) |
|
|
|
|
|
|
|
|
|
Return on average assets (2) |
|
1.29 |
|
|
|
1.43 |
|
|
|
1.25 |
|
|
|
0.34 |
|
|
|
0.51 |
|
Return on average equity (2) |
|
15.45 |
|
|
|
18.50 |
|
|
|
15.93 |
|
|
|
4.31 |
|
|
|
6.33 |
|
Net interest margin (3) |
|
4.00 |
|
|
|
3.98 |
|
|
|
3.66 |
|
|
|
3.18 |
|
|
|
2.79 |
|
Efficiency ratio (4) |
|
59.05 |
|
|
|
60.87 |
|
|
|
63.51 |
|
|
|
74.43 |
|
|
|
74.51 |
|
Net overhead ratio (2)(5) |
|
1.93 |
|
|
|
2.13 |
|
|
|
2.04 |
|
|
|
2.11 |
|
|
|
1.81 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios (%) |
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average loans (2) |
|
0.15 |
|
|
|
0.24 |
|
|
|
0.02 |
|
|
|
0.54 |
|
|
|
0.47 |
|
Allowance for credit losses to total loans (6) |
|
1.31 |
|
|
|
1.27 |
|
|
|
1.39 |
|
|
|
1.44 |
|
|
|
1.44 |
|
Nonperforming assets to total loans and foreclosed real estate |
|
0.55 |
|
|
|
0.70 |
|
|
|
0.99 |
|
|
|
1.05 |
|
|
|
2.00 |
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios (%) |
|
|
|
|
|
|
|
|
|
Average equity to average assets |
|
8.32 |
|
|
|
7.75 |
|
|
|
7.84 |
|
|
|
7.78 |
|
|
|
8.09 |
|
Tier 1 leverage capital ratio |
|
10.20 |
|
|
|
9.77 |
|
|
|
9.18 |
|
|
|
8.79 |
|
|
|
8.60 |
|
Common equity Tier 1 capital ratio |
|
12.19 |
|
|
|
12.04 |
|
|
|
11.80 |
|
|
|
11.63 |
|
|
|
11.93 |
|
Tier 1 risk-based capital ratio |
|
12.76 |
|
|
|
12.61 |
|
|
|
12.38 |
|
|
|
12.23 |
|
|
|
12.54 |
|
Total risk-based capital ratio |
|
15.75 |
|
|
|
15.57 |
|
|
|
15.42 |
|
|
|
15.30 |
|
|
|
15.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) non-GAAP financial measure; reconciliation provided in
Appendix |
(2) annualized for the quarterly periods presented |
(3) net interest income (tax-equivalent) as a percentage of average
interest earning assets |
(4) noninterest expense as a percentage of net interest income and
noninterest income (tax-equivalent) |
(5) noninterest expense less noninterest income as a percentage of
average assets |
(6) excludes loans held for sale |
|
|
|
|
|
|
|
|
|
|
CODORUS VALLEY BANCORP, INC. |
ANALYSIS OF NET INTEREST INCOME |
Average Balances and Interest Rates, Taxable-Equivalent
Basis (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 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 |
$ |
60,286 |
|
|
$ |
684 |
|
|
4.60 |
% |
|
$ |
132,772 |
|
|
$ |
1,226 |
|
|
3.66 |
% |
|
$ |
483,553 |
|
|
$ |
228 |
|
|
0.19 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
369,154 |
|
|
|
2,474 |
|
|
2.72 |
|
|
|
366,923 |
|
|
|
2,387 |
|
|
2.58 |
|
|
|
258,112 |
|
|
|
1,289 |
|
|
2.03 |
|
Tax-exempt |
|
23,537 |
|
|
|
125 |
|
|
2.15 |
|
|
|
25,601 |
|
|
|
137 |
|
|
2.13 |
|
|
|
24,583 |
|
|
|
124 |
|
|
2.05 |
|
Total investment securities |
|
392,691 |
|
|
|
2,599 |
|
|
2.68 |
|
|
|
392,524 |
|
|
|
2,524 |
|
|
2.55 |
|
|
|
282,695 |
|
|
|
1,413 |
|
|
2.03 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) |
|
1,613,154 |
|
|
|
22,860 |
|
|
5.75 |
|
|
|
1,598,206 |
|
|
|
21,499 |
|
|
5.34 |
|
|
|
1,516,145 |
|
|
|
15,594 |
|
|
4.17 |
|
Tax-exempt |
|
22,597 |
|
|
|
217 |
|
|
3.89 |
|
|
|
22,829 |
|
|
|
222 |
|
|
3.85 |
|
|
|
10,891 |
|
|
|
111 |
|
|
4.13 |
|
Total loans |
|
1,635,751 |
|
|
|
23,077 |
|
|
5.72 |
|
|
|
1,621,035 |
|
|
|
21,721 |
|
|
5.32 |
|
|
|
1,527,036 |
|
|
|
15,705 |
|
|
4.17 |
|
Total earning assets |
|
2,088,728 |
|
|
|
26,360 |
|
|
5.12 |
|
|
|
2,146,331 |
|
|
|
25,471 |
|
|
4.71 |
|
|
|
2,293,284 |
|
|
|
17,346 |
|
|
3.07 |
|
Other assets (2) |
|
71,428 |
|
|
|
|
|
|
|
|
66,173 |
|
|
|
|
|
|
|
|
92,129 |
|
|
|
|
|
|
Total assets |
$ |
2,160,156 |
|
|
|
|
|
|
|
$ |
2,212,504 |
|
|
|
|
|
|
|
$ |
2,385,413 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
$ |
902,917 |
|
|
|
3,461 |
|
|
1.55 |
% |
|
$ |
942,286 |
|
|
|
2,561 |
|
|
1.08 |
% |
|
$ |
997,383 |
|
|
|
331 |
|
|
0.13 |
% |
Savings |
|
160,062 |
|
|
|
12 |
|
|
0.03 |
|
|
|
163,184 |
|
|
|
12 |
|
|
0.03 |
|
|
|
155,982 |
|
|
|
12 |
|
|
0.03 |
|
Time |
|
393,732 |
|
|
|
1,664 |
|
|
1.71 |
|
|
|
383,013 |
|
|
|
808 |
|
|
0.84 |
|
|
|
451,131 |
|
|
|
719 |
|
|
0.65 |
|
Total interest bearing deposits |
|
1,456,711 |
|
|
|
5,137 |
|
|
1.43 |
|
|
|
1,488,483 |
|
|
|
3,381 |
|
|
0.90 |
|
|
|
1,604,496 |
|
|
|
1,062 |
|
|
0.27 |
|
Short-term borrowings |
|
12,894 |
|
|
|
38 |
|
|
1.20 |
|
|
|
12,605 |
|
|
|
13 |
|
|
0.40 |
|
|
|
9,967 |
|
|
|
10 |
|
|
0.41 |
|
Long-term debt |
|
14,690 |
|
|
|
194 |
|
|
5.37 |
|
|
|
14,858 |
|
|
|
175 |
|
|
4.68 |
|
|
|
23,363 |
|
|
|
155 |
|
|
2.68 |
|
Subordinated debentures |
|
30,777 |
|
|
|
369 |
|
|
4.86 |
|
|
|
30,757 |
|
|
|
369 |
|
|
4.76 |
|
|
|
30,696 |
|
|
|
369 |
|
|
4.88 |
|
Total interest bearing liabilities |
|
1,515,072 |
|
|
|
5,738 |
|
|
1.54 |
|
|
|
1,546,703 |
|
|
|
3,938 |
|
|
1.01 |
|
|
|
1,668,522 |
|
|
|
1,596 |
|
|
0.39 |
|
Noninterest bearing deposits |
|
444,416 |
|
|
|
|
|
|
|
|
476,347 |
|
|
|
|
|
|
|
|
511,170 |
|
|
|
|
|
|
Other liabilities |
|
18,250 |
|
|
|
|
|
|
|
|
17,974 |
|
|
|
|
|
|
|
|
12,755 |
|
|
|
|
|
|
Shareholders' equity |
|
182,418 |
|
|
|
|
|
|
|
|
171,480 |
|
|
|
|
|
|
|
|
192,966 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,160,156 |
|
|
|
|
|
|
|
$ |
2,212,504 |
|
|
|
|
|
|
|
$ |
2,385,413 |
|
|
|
|
|
|
Net interest income (tax equivalent basis) |
|
|
$ |
20,622 |
|
|
|
|
|
|
|
$ |
21,533 |
|
|
|
|
|
|
|
$ |
15,750 |
|
|
|
|
Net interest margin (3) |
|
|
|
|
4.00 |
% |
|
|
|
|
|
3.98 |
% |
|
|
|
|
|
2.79 |
% |
Tax equivalent adjustment |
|
|
|
(67 |
) |
|
|
|
|
|
|
|
(72 |
) |
|
|
|
|
|
|
|
(49 |
) |
|
|
|
Net interest income |
|
|
$ |
20,555 |
|
|
|
|
|
|
|
$ |
21,461 |
|
|
|
|
|
|
|
$ |
15,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
INC. |
Appendix - Non-GAAP Disclosure and
Reconciliation |
|
|
|
|
|
|
|
|
|
|
The Corporation has presented non-GAAP financial measures in this
presentation because it believes that these measures provide useful
and comparative information to assess trends in the Corporation’s
financial condition and results of operations. Investors and other
interested parties should note that, because not all companies use
the same calculations for their non-GAAP measures, this
presentation may not be comparable to other similarly titled
measures presented by other companies. These non-GAAP financial
measures should not be considered a substitute for GAAP basis
measures, and the Corporation encourages a review of its
consolidated financial statements in their entirety. Following are
reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures. |
|
|
|
|
|
|
|
|
|
|
"Tangible Book Value Per Share" measures book value less goodwill
and core deposit intangibles. |
|
|
|
|
|
|
|
|
|
|
"Tangible Book Value Per Share without Accumulated Other
Comprehensive Loss" measures book value less accumulated other
comprehensive loss. |
|
|
|
|
|
|
|
|
|
|
Tangible Book Value Per Share and Tangible Book Value Per
Share without AOCI |
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
Total Shareholders' Equity |
$ |
184,946 |
|
|
$ |
177,300 |
|
|
$ |
168,339 |
|
|
$ |
175,282 |
|
|
$ |
183,719 |
|
Less: Goodwill and Other Intangible Assets |
|
(2,303 |
) |
|
|
(2,303 |
) |
|
|
(2,303 |
) |
|
|
(2,304 |
) |
|
|
(2,305 |
) |
Tangible Shareholders' Equity |
$ |
182,643 |
|
|
$ |
174,997 |
|
|
$ |
166,036 |
|
|
$ |
172,978 |
|
|
$ |
181,414 |
|
Less: Accumulated Other Comprehensive Loss |
|
(30,941 |
) |
|
|
(34,764 |
) |
|
|
(36,499 |
) |
|
|
(23,462 |
) |
|
|
(13,957 |
) |
Tangible Shareholders' Equity without AOCI |
$ |
213,584 |
|
|
$ |
209,761 |
|
|
$ |
202,535 |
|
|
$ |
196,440 |
|
|
$ |
195,371 |
|
|
|
|
|
|
|
|
|
|
|
Common Shares Outstanding |
|
9,594 |
|
|
|
9,581 |
|
|
|
9,548 |
|
|
|
9,541 |
|
|
|
9,528 |
|
Book Value Per Share |
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
|
$ |
18.37 |
|
|
$ |
19.28 |
|
Effect of Intangible Assets |
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
Tangible Book Value Per Share, non-GAAP |
$ |
19.04 |
|
|
$ |
18.27 |
|
|
$ |
17.39 |
|
|
$ |
18.13 |
|
|
$ |
19.04 |
|
|
|
|
|
|
|
|
|
|
|
Book Value Per Share |
$ |
19.28 |
|
|
$ |
18.51 |
|
|
$ |
17.63 |
|
|
$ |
18.37 |
|
|
$ |
19.28 |
|
Effect of Intangible Assets and AOCI |
|
2.98 |
|
|
|
3.39 |
|
|
|
3.58 |
|
|
|
2.22 |
|
|
|
1.22 |
|
Tangible Book Value Per Share without AOCI,
non-GAAP |
$ |
22.26 |
|
|
$ |
21.90 |
|
|
$ |
21.21 |
|
|
$ |
20.59 |
|
|
$ |
20.50 |
|
|
|
|
|
|
|
|
|
|
|
Codorus Valley Bancorp (NASDAQ:CVLY)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Codorus Valley Bancorp (NASDAQ:CVLY)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024