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Penns Woods Bancorp, Inc. Reports Second Quarter 2021 Earnings
ソース: Nasdaq GlobeNewswire / 21 7 2021 10:01:58 America/Chicago
WILLIAMSPORT, Pa., July 21, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)
Penns Woods Bancorp, Inc. achieved net income of $7.0 million for the six months ended June 30, 2021, resulting in basic and diluted earnings per share of $1.00.
Highlights
- Net income, as reported under GAAP, for the three and six months ended June 30, 2021 was $3.6 million and $7.0 million, respectively, compared to $3.8 million and $6.8 million for the same period of 2020. Results for the three and six months ended June 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $45,000 (from a gain of $156,000 to a gain of $111,000) for the three month period and an increase in after-tax securities gains of $27,000 (from a gain of $178,000 to a gain of $205,000) for the six month period.
- The provision for loan losses decreased $295,000 and $530,000, respectfully, for the three and six months ended June 30, 2021, to $350,000 and $865,000 compared to $645,000 and $1.4 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 six months ended June 30, 2021 were $0.51 and $1.00. Basic and diluted earnings per share for the three and six months ended June 30, 2020 were $0.53 and $0.97.
- Return on average assets was 0.76% for three months ended June 30, 2021, compared to 0.85% for the corresponding period of 2020. Return on average assets was 0.75% for the six months ended June 30, 2021, compared to 0.79% for the corresponding period of 2020.
- Return on average equity was 8.70% for the three months ended June 30, 2021, compared to 9.59% for the corresponding period of 2020. Return on average equity was 8.69% for the six months ended June 30, 2021, compared to 8.75% for the corresponding period of 2020.
COVID-19 Activity
- Approximately one third of employees working remotely.
- As of June 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $7.9 million 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 June 2021.
- Total paycheck protection program loans originated to be held on balance sheet at June 30, 2021 total $21.6 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 $3.5 million for the three months ended June 30, 2021 compared to $3.6 million for the same period of 2020. Core earnings were $6.8 million for the six months ended June 30, 2021, compared to $6.7 million for the same period of 2020. Core earnings per share for the three months ended June 30, 2021 were $0.49 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 six months ended June 30, 2021 were $0.97 basic and diluted, compared to $0.95 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.74% and 8.43% for the three months ended June 30, 2021, compared to 0.81% and 9.19% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.73% and 8.44% for the six months ended June 30, 2021 compared to 0.77% and 8.52% 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 six months ended June 30, 2021 was 2.78% and 2.83%, compared to 3.01% and 3.09% for the corresponding period of 2020. The decrease in the net interest margin was driven by a decrease in the yield of the loan portfolio of 47 and 39 basis points ("bps"), while the investment portfolio yield declined 50 and 62 bps, respectively, during the current low interest rate environment. Further compressing the net interest margin was the significant increase of interest-bearing deposits. These deposits carry a current yield of a few basis points as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing deposit liabilities decreased 54 and 56 bps as rates paid were decreased significantly during 2020 due to the economic impact of COVID-19 prolonging the low interest rate environment. These deposit rate decreases have partially offset the decline in earning asset yield.
Assets
Total assets increased $56.5 million to $1.9 billion at June 30, 2021 compared to June 30, 2020. Cash and cash equivalents increased significantly 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 decreased $12.9 million to $1.3 billion at June 30, 2021 compared to June 30, 2020, 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 during the second half of 2020 and continues to rebound in 2021. The investment portfolio increased $7.7 million from June 30, 2020 to June 30, 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 0.59% at June 30, 2021 from 0.82% at June 30, 2020 as non-performing loans have decreased to $7.9 million at June 30, 2021 from $11.1 million at June 30, 2020 primarily due to a commercial loan relationship that was paid-off during the fourth quarter of 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 $230,000 for the six months ended June 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at June 30, 2021 compared to 0.96% at June 30, 2020.
Deposits
Deposits increased $89.4 million to $1.6 billion at June 30, 2021 compared to June 30, 2020. Noninterest-bearing deposits increased $59.0 million to $477.3 million at June 30, 2021 compared to June 30, 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 have allowed for a decrease in short and long-term borrowings.
Shareholders’ Equity
Shareholders’ equity increased $7.3 million to $166.8 million at June 30, 2021 compared to June 30, 2020. Accumulated other comprehensive loss of $1.4 million at June 30, 2021 increased from a loss of $1.0 million at June 30, 2020 primarily as a result of a change in the net excess of the projected benefit obligations under the defined benefit plan over the fair value of the plan’s assets, resulting in an increase in the net loss of $364,000. The current level of shareholders’ equity equates to a book value per share of $23.63 at June 30, 2021 compared to $22.66 at June 30, 2020, and an equity to asset ratio of 8.80% at June 30, 2021 compared to 8.68% at June 30, 2020. Dividends declared for the six months ended June 30, 2021 and 2020 were $0.64 per share, respectively.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates eighteen 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. 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, 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)June 30, (In Thousands, Except Share Data) 2021 2020 % Change ASSETS: Noninterest-bearing balances $ 27,731 $ 26,932 2.97 % Interest-bearing balances in other financial institutions 199,389 188,242 5.92 % Federal funds sold 40,000 — n/a Total cash and cash equivalents 267,120 215,174 24.14 % Investment debt securities, available for sale, at fair value 171,783 164,369 4.51 % Investment equity securities, at fair value 1,269 1,291 (1.70 )% Investment securities, trading 43 37 16.22 % Restricted investment in bank stock, at fair value 15,120 14,849 1.83 % Loans held for sale 4,927 5,146 (4.26 )% Loans 1,337,947 1,349,347 (0.84 )% Allowance for loan losses (14,438 ) (12,977 ) 11.26 % Loans, net 1,323,509 1,336,370 (0.96 )% Premises and equipment, net 34,629 32,873 5.34 % Accrued interest receivable 8,363 8,068 3.66 % Bank-owned life insurance 34,005 29,368 15.79 % Investment in limited partnerships 4,795 1,596 200.44 % Goodwill 17,104 17,104 — % Intangibles 568 777 (26.90 )% Operating lease right of use asset 2,946 3,231 (8.82 )% Deferred tax asset 3,624 3,284 10.35 % Other assets 5,065 4,827 4.93 % TOTAL ASSETS $ 1,894,870 $ 1,838,364 3.07 % LIABILITIES: Interest-bearing deposits $ 1,086,352 $ 1,055,981 2.88 % Noninterest-bearing deposits 477,344 418,324 14.11 % Total deposits 1,563,696 1,474,305 6.06 % Short-term borrowings 7,520 15,133 (50.31 )% Long-term borrowings 141,051 171,885 (17.94 )% Accrued interest payable 961 1,530 (37.19 )% Operating lease liability 2,992 3,263 (8.31 )% Other liabilities 11,815 12,640 (6.53 )% TOTAL LIABILITIES 1,728,035 1,678,756 2.94 % 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; 7,541,627 and 7,522,573 shares issued; 7,061,402 and 7,042,348 shares outstanding 41,897 41,792 0.25 % Additional paid-in capital 53,205 51,956 2.40 % Retained earnings 85,281 78,910 8.07 % Accumulated other comprehensive gain (loss): Net unrealized gain on available for sale securities 4,085 4,194 (2.60 )% Defined benefit plan (5,523 ) (5,159 ) (7.06 )% Treasury stock at cost, 480,225 (12,115 ) (12,115 ) — % TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY 166,830 159,578 4.54 % Non-controlling interest 5 30 (83.33 )% TOTAL SHAREHOLDERS' EQUITY 166,835 159,608 4.53 % TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,894,870 $ 1,838,364 3.07 % 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) 2021 2020 % Change 2021 2020 % Change INTEREST AND DIVIDEND INCOME: Loans including fees $ 13,099 $ 14,666 (10.68 )% $ 26,444 $ 29,323 (9.82 )% Investment securities: Taxable 838 1,023 (18.08 )% 1,657 2,033 (18.49 )% Tax-exempt 164 169 (2.96 )% 335 314 6.69 % Dividend and other interest income 305 186 63.98 % 565 535 5.61 % TOTAL INTEREST AND DIVIDEND INCOME 14,406 16,044 (10.21 )% 29,001 32,205 (9.95 )% INTEREST EXPENSE: Deposits 1,489 2,802 (46.86 )% 3,173 5,837 (45.64 )% Short-term borrowings 2 7 (71.43 )% 4 29 (86.21 )% Long-term borrowings 820 985 (16.75 )% 1,659 1,928 (13.95 )% TOTAL INTEREST EXPENSE 2,311 3,794 (39.09 )% 4,836 7,794 (37.95 )% NET INTEREST INCOME 12,095 12,250 (1.27 )% 24,165 24,411 (1.01 )% PROVISION FOR LOAN LOSSES 350 645 (45.74 )% 865 1,395 (37.99 )% NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 11,745 11,605 1.21 % 23,300 23,016 1.23 % NON-INTEREST INCOME: Service charges 379 312 21.47 % 762 861 (11.50 )% Debt securities gains, available for sale 137 186 (26.34 )% 275 207 32.85 % Equity securities gains (losses) 4 10 (60.00 % (19 ) 30 (163.33 )% Securities (losses) gains, trading (1 ) — n/a 3 (14 ) 121.43 % Bank-owned life insurance 162 144 12.50 % 335 336 (0.30 )% Gain on sale of loans 670 1,028 (34.82 )% 1,578 1,472 7.20 % Insurance commissions 150 92 63.04 % 307 219 40.18 % Brokerage commissions 207 186 11.29 % 426 555 (23.24 )% Debit card income 398 310 28.39 % 778 584 33.22 % Other 803 353 127.48 % 1,078 808 33.42 % TOTAL NON-INTEREST INCOME 2,909 2,621 10.99 % 5,523 5,058 9.19 % NON-INTEREST EXPENSE: Salaries and employee benefits 5,672 5,230 8.45 % 11,270 10,897 3.42 % Occupancy 717 626 14.54 % 1,693 1,328 27.48 % Furniture and equipment 971 828 17.27 % 1,780 1,688 5.45 % Software amortization 208 236 (11.86 )% 406 486 (16.46 )% Pennsylvania shares tax 372 323 15.17 % 724 608 19.08 % Professional fees 684 658 3.95 % 1,267 1,280 (1.02 )% Federal Deposit Insurance Corporation deposit insurance 264 185 42.70 % 485 379 27.97 % Marketing 140 56 150.00 % 203 109 86.24 % Intangible amortization 50 59 (15.25 )% 103 121 (14.88 )% Other 1,170 1,410 (17.02 )% 2,268 2,825 (19.72 )% TOTAL NON-INTEREST EXPENSE 10,248 9,611 6.63 % 20,199 19,721 2.42 % INCOME BEFORE INCOME TAX PROVISION 4,406 4,615 (4.53 )% 8,624 8,353 3.24 % INCOME TAX PROVISION 813 851 (4.47 )% 1,584 1,512 4.76 % NET INCOME $ 3,593 $ 3,764 (4.54 )% $ 7,040 $ 6,841 2.91 % Earnings attributable to noncontrolling interest 5 4 25.00 % 11 8 37.50 % NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $ 3,588 $ 3,760 (4.57 )% $ 7,029 $ 6,833 2.87 % EARNINGS PER SHARE - BASIC $ 0.51 $ 0.53 (3.77 )% $ 1.00 $ 0.97 3.09 % EARNINGS PER SHARE - DILUTED $ 0.51 $ 0.53 (3.77 )% $ 1.00 $ 0.97 3.09 % WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 7,059,667 7,041,629 0.26 % 7,057,404 7,041,185 0.23 % WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 7,059,667 7,041,629 0.26 % 7,057,404 7,041,185 0.23 % DIVIDENDS DECLARED PER SHARE $ 0.32 $ 0.32 — % $ 0.64 $ 0.64 — % PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATESThree Months Ended June 30, 2021 June 30, 2020 (Dollars in Thousands) Average
BalanceInterest Average
RateAverage
BalanceInterest Average
RateASSETS: Tax-exempt loans $ 46,926 $ 334 2.85 % $ 44,916 $ 348 3.12 % All other loans 1,285,853 12,835 4.00 % 1,294,745 14,391 4.47 % Total loans 1,332,779 13,169 3.96 % 1,339,661 14,739 4.43 % Federal funds sold 25,538 45 0.71 % — — — % Taxable securities 148,415 1,051 2.87 % 147,352 1,193 3.29 % Tax-exempt securities 36,469 208 2.31 % 28,280 213 3.06 % Total securities 184,884 1,259 2.76 % 175,632 1,406 3.26 % Interest-bearing deposits 218,868 48 0.09 % 144,948 16 0.04 % Total interest-earning assets 1,762,069 14,521 3.31 % 1,660,241 16,161 3.92 % Other assets 128,402 116,750 TOTAL ASSETS $ 1,890,471 $ 1,776,991 LIABILITIES AND SHAREHOLDERS’ EQUITY: Savings $ 225,625 28 0.05 % $ 190,243 67 0.14 % Super Now deposits 285,672 208 0.29 % 251,691 409 0.65 % Money market deposits 309,749 256 0.33 % 229,362 418 0.73 % Time deposits 256,345 997 1.56 % 362,545 1,908 2.12 % Total interest-bearing deposits 1,077,391 1,489 0.55 % 1,033,841 2,802 1.09 % Short-term borrowings 7,047 2 0.11 % 11,174 7 0.83 % Long-term borrowings 141,076 820 2.33 % 171,895 985 2.21 % Total borrowings 148,123 822 2.23 % 183,069 992 2.12 % Total interest-bearing liabilities 1,225,514 2,311 0.76 % 1,216,910 3,794 1.24 % Demand deposits 482,513 384,591 Other liabilities 17,384 18,583 Shareholders’ equity 165,060 156,907 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,890,471 $ 1,776,991 Interest rate spread 2.55 % 2.68 % Net interest income/margin $ 12,210 2.78 % $ 12,367 3.01 % Three Months Ended June 30, 2021 2020 Total interest income $ 14,406 $ 16,044 Total interest expense 2,311 3,794 Net interest income 12,095 12,250 Tax equivalent adjustment 115 117 Net interest income (fully taxable equivalent) $ 12,210 $ 12,367 Six Months Ended June 30, 2021 June 30, 2020 (Dollars in Thousands) Average
BalanceInterest Average
RateAverage
BalanceInterest Average
RateASSETS: Tax-exempt loans $ 46,177 $ 684 2.99 % $ 48,346 $ 752 3.13 % All other loans 1,289,660 25,904 4.05 % 1,299,893 28,729 4.44 % Total loans 1,335,837 26,588 4.01 % 1,348,239 29,481 4.40 % Federal funds sold 12,840 45 0.71 % — — — % Taxable securities 146,740 2,083 2.88 % 145,070 2,466 3.46 % Tax-exempt securities 36,420 424 2.36 % 26,027 397 3.10 % Total securities 183,160 2,507 2.78 % 171,097 2,863 3.40 % Interest-bearing deposits 207,495 94 0.09 % 85,832 102 0.24 % Total interest-earning assets 1,739,332 29,234 3.39 % 1,605,168 32,446 4.07 % Other assets 126,418 114,085 TOTAL ASSETS $ 1,865,750 $ 1,719,253 LIABILITIES AND SHAREHOLDERS’ EQUITY: Savings $ 220,161 72 0.07 % $ 184,042 158 0.17 % Super Now deposits 287,444 475 0.33 % 235,758 833 0.71 % Money market deposits 307,885 523 0.34 % 220,035 895 0.82 % Time deposits 255,408 2,103 1.66 % 370,902 3,951 2.14 % Total interest-bearing deposits 1,070,898 3,173 0.60 % 1,010,737 5,837 1.16 % Short-term borrowings 6,368 4 0.13 % 11,011 29 0.53 % Long-term borrowings 141,279 1,659 2.37 % 166,024 1,928 2.34 % Total borrowings 147,647 1,663 2.27 % 177,035 1,957 2.22 % Total interest-bearing liabilities 1,218,545 4,836 0.80 % 1,187,772 7,794 1.32 % Demand deposits 464,237 355,704 Other liabilities 21,227 19,551 Shareholders’ equity 161,741 156,226 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,865,750 $ 1,719,253 Interest rate spread 2.59 % 2.75 % Net interest income/margin $ 24,398 2.83 % $ 24,652 3.09 % Six Months Ended June 30, 2021 2020 Total interest income $ 29,001 $ 32,205 Total interest expense 4,836 7,794 Net interest income 24,165 24,411 Tax equivalent adjustment 233 241 Net interest income (fully taxable equivalent) $ 24,398 $ 24,652 (Dollars in Thousands, Except Per Share Data) Quarter Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Operating Data Net income $ 3,588 $ 3,441 $ 3,901 $ 4,472 $ 3,760 Net interest income 12,095 12,070 11,967 11,845 12,250 Provision for loan losses 350 515 585 645 645 Net security gains 140 119 374 1,011 196 Non-interest income, excluding net security gains 2,769 2,495 2,701 3,024 2,423 Non-interest expense 10,248 9,951 9,640 9,707 9,611 Performance Statistics Net interest margin 2.78 % 2.88 % 2.81 % 2.76 % 3.01 % Annualized return on average assets 0.76 % 0.75 % 0.85 % 0.97 % 0.85 % Annualized return on average equity 8.70 % 8.59 % 9.55 % 11.05 % 9.60 % Annualized net loan charge-offs to average loans 0.03 % 0.04 % 0.06 % 0.06 % 0.05 % Net charge-offs 114 116 211 193 168 Efficiency ratio 68.61 % 67.96 % 65.36 % 64.89 % 65.10 % Per Share Data Basic earnings per share $ 0.51 $ 0.49 $ 0.55 $ 0.63 $ 0.53 Diluted earnings per share 0.51 0.49 0.55 0.63 0.53 Dividend declared per share 0.32 0.32 0.32 0.32 0.32 Book value 23.63 23.25 23.27 23.05 22.66 Common stock price: High 26.51 27.78 27.30 22.83 27.75 Low 23.03 20.55 19.61 19.61 20.01 Close 23.82 24.09 26.01 19.85 22.71 Weighted average common shares: Basic 7,060 7,055 7,050 7,045 7,042 Fully Diluted 7,060 7,055 7,050 7,045 7,042 End-of-period common shares: Issued 7,542 7,537 7,533 7,528 7,523 Treasury 480 480 480 480 480 (Dollars in Thousands, Except Per Share Data) Quarter Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Financial Condition Data: General Total assets $ 1,894,870 $ 1,896,192 $ 1,834,643 $ 1,840,779 $ 1,838,364 Loans, net 1,323,509 1,321,697 1,330,524 1,335,711 1,336,370 Goodwill 17,104 17,104 17,104 17,104 17,104 Intangibles 568 618 671 724 777 Total deposits 1,563,696 1,564,364 1,494,443 1,491,810 1,474,305 Noninterest-bearing 477,344 478,916 449,357 434,248 418,324 Savings 226,573 224,890 209,924 202,781 195,964 NOW 296,450 290,355 287,775 268,463 268,348 Money Market 301,405 324,207 283,742 274,480 247,753 Time Deposits 261,924 245,996 263,645 311,838 343,915 Total interest-bearing deposits 1,086,352 1,085,448 1,045,086 1,057,562 1,055,980 Core deposits* 1,301,772 1,318,368 1,230,798 1,179,972 1,130,389 Shareholders’ equity 166,830 164,059 164,142 162,422 159,578 Asset Quality Non-performing loans $ 7,931 $ 9,272 $ 10,334 $ 10,553 $ 11,097 Non-performing loans to total assets 0.42 % 0.49 % 0.56 % 0.57 % 0.60 % Allowance for loan losses 14,438 14,202 13,803 13,429 12,977 Allowance for loan losses to total loans 1.08 % 1.06 % 1.03 % 1.00 % 0.96 % Allowance for loan losses to non-performing loans 182.05 % 153.17 % 133.57 % 127.25 % 116.94 % Non-performing loans to total loans 0.59 % 0.69 % 0.77 % 0.78 % 0.82 % Capitalization Shareholders’ equity to total assets 8.80 % 8.65 % 8.95 % 8.82 % 8.68 % * 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) 2021 2020 2021 2020 GAAP net income $ 3,588 $ 3,760 $ 7,029 $ 6,833 Less: net securities gains, net of tax 111 156 205 178 Non-GAAP core earnings $ 3,477 $ 3,604 $ 6,824 $ 6,655 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Return on average assets (ROA) 0.76 % 0.85 % 0.75 % 0.79 % Less: net securities gains, net of tax 0.02 % 0.04 % 0.02 % 0.02 % Non-GAAP core ROA 0.74 % 0.81 % 0.73 % 0.77 % Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Return on average equity (ROE) 8.70 % 9.59 % 8.69 % 8.75 % Less: net securities gains, net of tax 0.27 % 0.40 % 0.25 % 0.23 % Non-GAAP core ROE 8.43 % 9.19 % 8.44 % 8.52 % Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic earnings per share (EPS) $ 0.51 $ 0.53 $ 1.00 $ 0.97 Less: net securities gains, net of tax 0.02 0.02 0.03 0.02 Non-GAAP basic core EPS $ 0.49 $ 0.51 $ 0.97 $ 0.95 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Diluted EPS $ 0.51 $ 0.53 $ 1.00 $ 0.97 Less: net securities gains, net of tax 0.02 0.02 0.03 0.02 Non-GAAP diluted core EPS $ 0.49 $ 0.51 $ 0.97 $ 0.95 COVID-19 Loan Deferrals as of June 30, 2021
(In Thousands) Amount Commercial, financial, and agricultural $ 140 Real estate mortgage: Residential 892 Commercial 6,890 Consumer automobile loans — Other consumer installment loans 9 Total loan deferrals $ 7,931 
- Net income, as reported under GAAP, for the three and six months ended June 30, 2021 was $3.6 million and $7.0 million, respectively, compared to $3.8 million and $6.8 million for the same period of 2020. Results for the three and six months ended June 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $45,000 (from a gain of $156,000 to a gain of $111,000) for the three month period and an increase in after-tax securities gains of $27,000 (from a gain of $178,000 to a gain of $205,000) for the six month period.