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Penns Woods Bancorp, Inc. Reports Fourth Quarter 2021 Earnings
ソース: Nasdaq GlobeNewswire / 26 1 2022 11:32:24 America/New_York
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
BalanceInterest Average
RateAverage
BalanceInterest Average
RateASSETS: 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
BalanceInterest Average
RateAverage
BalanceInterest Average
RateASSETS: 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 
- 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.