10/31/2024 | Press release | Distributed by Public on 10/31/2024 06:04
Three Months Ended | ||||||
(Dollars in Thousands) | ||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||
Interest and Dividend Income | $ | 49,443 | $ | 47,972 | $ | 42,117 |
Interest Expense | 21,005 | 20,820 | 16,764 | |||
Net Interest Income | 28,438 | 27,152 | 25,353 | |||
Average Earning Assets(A)
|
4,075,162 | 4,083,813 | 3,973,747 | |||
Average Interest-Bearing Liabilities | 3,085,066 | 3,127,417 | 2,920,518 | |||
Yield on Earning Assets(A)
|
4.83 | % | 4.72 | % | 4.20 | % |
Cost of Interest-Bearing Liabilities | 2.71 | 2.68 | 2.28 | |||
Net Interest Spread | 2.12 | 2.04 | 1.92 | |||
Net Interest Margin | 2.78 | 2.67 | 2.53 | |||
Net Interest Margin - FTE | 2.79 | 2.69 | 2.55 | |||
(A) Includes Nonaccrual Loans.
|
Three Months Ended September 30
|
Nine Months Ended September 30
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
INTEREST AND DIVIDEND INCOME | ||||||||
Interest and Fees on Loans | $ | 44,122 | $ | 36,699 | $ | 126,639 | $ | 103,203 |
Interest on Deposits at Banks | 2,103 | 1,805 | 6,735 | 3,958 | ||||
Interest and Dividends on Investment Securities: | ||||||||
Fully Taxable | 2,656 | 2,924 | 8,851 | 8,823 | ||||
Exempt from Federal Taxes | 562 | 689 | 1,867 | 2,256 | ||||
Total Interest and Dividend Income | 49,443 | 42,117 | 144,092 | 118,240 | ||||
INTEREST EXPENSE | ||||||||
Interest-Bearing Checking Accounts | 1,966 | 1,156 | 5,510 | 2,346 | ||||
Savings Deposits | 10,905 | 9,729 | 31,706 | 23,830 | ||||
Time Deposits over $250,000 | 1,803 | 1,466 | 5,645 | 3,159 | ||||
Other Time Deposits | 4,934 | 2,051 | 15,091 | 3,721 | ||||
Borrowings | 1,177 | 2,143 | 3,439 | 5,309 | ||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts |
173 | 173 | 514 | 513 | ||||
Interest on Financing Leases | 47 | 46 | 142 | 143 | ||||
Total Interest Expense | 21,005 | 16,764 | 62,047 | 39,021 | ||||
NET INTEREST INCOME | 28,438 | 25,353 | 82,045 | 79,219 | ||||
Provision for Credit Losses | 934 | 354 | 2,326 | 2,856 | ||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 27,504 | 24,999 | 79,719 | 76,363 | ||||
NON-INTEREST INCOME | ||||||||
Income From Fiduciary Activities | 2,429 | 2,378 | 7,337 | 7,081 | ||||
Fees for Other Services to Customers | 2,881 | 2,761 | 8,130 | 8,073 | ||||
Insurance Commissions | 1,955 | 1,695 | 5,299 | 4,775 | ||||
Net Gain (Loss) on Securities | 94 | 71 | 165 | (214) | ||||
Net Gain on Sales of Loans | 126 | 21 | 135 | 25 | ||||
Other Operating Income | 648 | 1,124 | 2,781 | 1,893 | ||||
Total Non-Interest Income | 8,133 | 8,050 | 23,847 | 21,633 | ||||
NON-INTEREST EXPENSE | ||||||||
Salaries and Employee Benefits | 13,446 | 11,988 | 39,375 | 35,974 | ||||
Occupancy Expenses, Net | 1,754 | 1,517 | 5,299 | 4,728 | ||||
Technology and Equipment Expense | 4,692 | 4,371 | 14,246 | 13,150 | ||||
FDIC Assessments | 698 | 515 | 2,111 | 1,478 | ||||
Other Operating Expense | 3,510 | 5,088 | 10,399 | 14,528 | ||||
Total Non-Interest Expense | 24,100 | 23,479 | 71,430 | 69,858 | ||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 11,537 | 9,570 | 32,136 | 28,138 | ||||
Provision for Income Taxes | 2,562 | 1,827 | 6,897 | 5,786 | ||||
NET INCOME | $ | 8,975 | $ | 7,743 | $ | 25,239 | $ | 22,352 |
Average Shares Outstanding: | ||||||||
Basic | 16,710 | 17,050 | 16,746 | 17,049 | ||||
Diluted | 16,742 | 17,050 | 16,772 | 17,049 | ||||
Per Common Share: | ||||||||
Basic Earnings | $ | 0.54 | $ | 0.46 | $ | 1.51 | $ | 1.31 |
Diluted Earnings | 0.53 | 0.46 | 1.50 | 1.31 |
September 30, 2024 |
December 31, 2023 |
September 30, 2023 |
||||
ASSETS | ||||||
Cash and Due From Banks | $ | 53,969 | $ | 36,755 | $ | 39,778 |
Interest-Bearing Deposits at Banks | 286,119 | 105,781 | 254,961 | |||
Investment Securities: | ||||||
Available-for-Sale at Fair Value | 437,067 | 497,769 | 519,240 | |||
Held-to-Maturity (Fair Value of $101,929 at September 30, 2024; $128,837 at December 31, 2023; and $134,811 at September 30, 2023)
|
103,337 | 131,395 | 140,577 | |||
Equity Securities | 5,089 | 1,925 | 1,960 | |||
Other Investments | 4,352 | 5,049 | 5,110 | |||
Loans | 3,339,937 | 3,212,908 | 3,138,617 | |||
Allowance for Credit Losses | (31,262) | (31,265) | (31,112) | |||
Net Loans | 3,308,675 | 3,181,643 | 3,107,505 | |||
Premises and Equipment, Net | 59,932 | 59,642 | 60,311 | |||
Goodwill | 23,789 | 21,873 | 21,873 | |||
Other Intangible Assets, Net | 2,190 | 1,110 | 1,205 | |||
Other Assets | 126,930 | 126,926 | 120,391 | |||
Total Assets | $ | 4,411,449 | $ | 4,169,868 | $ | 4,272,911 |
LIABILITIES | ||||||
Noninterest-Bearing Deposits | 740,170 | 758,425 | 798,392 | |||
Interest-Bearing Checking Accounts | 875,365 | 799,785 | 920,250 | |||
Savings Deposits | 1,544,868 | 1,466,280 | 1,496,193 | |||
Time Deposits over $250,000 | 177,990 | 179,301 | 167,614 | |||
Other Time Deposits | 499,064 | 483,775 | 284,036 | |||
Total Deposits | 3,837,457 | 3,687,566 | 3,666,485 | |||
Borrowings | 103,600 | 26,500 | 174,300 | |||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts |
20,000 | 20,000 | 20,000 | |||
Finance Leases | 5,022 | 5,066 | 5,080 | |||
Other Liabilities | 52,059 | 50,964 | 47,032 | |||
Total Liabilities | 4,018,138 | 3,790,096 | 3,912,897 | |||
STOCKHOLDERS' EQUITY | ||||||
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at September 30, 2024, December 31, 2023 and September 30, 2023
|
- | - | - | |||
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (22,066,559 Shares Issued at September 30, 2024, December 31, 2023 and September 30, 2023)
|
22,067 | 22,067 | 22,067 | |||
Additional Paid-in Capital | 413,065 | 412,551 | 412,397 | |||
Retained Earnings | 77,429 | 65,792 | 62,647 | |||
Accumulated Other Comprehensive Loss | (25,968) | (33,416) | (52,584) | |||
Treasury Stock, at Cost (5,332,907 Shares at September 30, 2024; 5,124,073 Shares at December 31, 2023 and 5,017,063 Shares at September 30, 2023)
|
(93,282) | (87,222) | (84,513) | |||
Total Stockholders' Equity | 393,311 | 379,772 | 360,014 | |||
Total Liabilities and Stockholders' Equity | $ | 4,411,449 | $ | 4,169,868 | $ | 4,272,911 |
Quarter Ended | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||
Net Income | $ | 8,975 | $ | 8,604 | $ | 7,660 | $ | 7,723 | $ | 7,743 |
Net Changes in Fair Value of Equity Investments (Net of Tax)
|
69 | 39 | 13 | 90 | 52 | |||||
Share and Per Share Data: | ||||||||||
Period End Shares Outstanding | 16,734 | 16,723 | 16,710 | 16,942 | 17,049 | |||||
Basic Average Shares Outstanding | 16,710 | 16,685 | 16,865 | 17,002 | 17,050 | |||||
Diluted Average Shares Outstanding | 16,742 | 16,709 | 16,867 | 17,004 | 17,050 | |||||
Basic Earnings Per Share | $ | 0.54 | $ | 0.52 | $ | 0.45 | $ | 0.46 | $ | 0.46 |
Diluted Earnings Per Share | 0.53 | 0.52 | 0.45 | 0.46 | 0.46 | |||||
Cash Dividend Per Share | 0.270 | 0.270 | 0.270 | 0.270 | 0.262 | |||||
Selected Quarterly Average Balances: | ||||||||||
Interest-Bearing Deposits at Banks | $ | 154,937 | $ | 159,336 | $ | 178,452 | $ | 136,026 | $ | 131,814 |
Investment Securities | 590,352 | 644,192 | 671,105 | 713,144 | 745,693 | |||||
Loans | 3,329,873 | 3,280,285 | 3,235,841 | 3,170,262 | 3,096,240 | |||||
Deposits | 3,672,128 | 3,678,957 | 3,693,325 | 3,593,949 | 3,491,028 | |||||
Other Borrowed Funds | 134,249 | 131,537 | 122,033 | 149,507 | 208,527 | |||||
Stockholders' Equity
|
387,904 | 378,256 | 379,446 | 363,753 | 362,701 | |||||
Total Assets | 4,245,597 | 4,237,359 | 4,245,484 | 4,159,313 | 4,109,995 | |||||
Return on Average Assets, annualized | 0.84 | % | 0.82 | % | 0.73 | % | 0.74 | % | 0.75 | % |
Return on Average Equity, annualized | 9.20 | % | 9.15 | % | 8.12 | % | 8.42 | % | 8.47 | % |
Return on Average Tangible Equity, annualized 1
|
9.79 | % | 9.74 | % | 8.64 | % | 8.99 | % | 9.05 | % |
Average Earning Assets | $ | 4,075,162 | $ | 4,083,813 | $ | 4,085,398 | $ | 4,019,432 | $ | 3,973,747 |
Average Paying Liabilities | 3,085,066 | 3,127,417 | 3,108,093 | 2,985,717 | 2,920,518 | |||||
Interest Income | 49,443 | 47,972 | 46,677 | 44,324 | 42,117 | |||||
Tax-Equivalent Adjustment 2
|
149 | 163 | 176 | 184 | 183 | |||||
Interest Income, Tax-Equivalent 2
|
49,592 | 48,135 | 46,853 | 44,508 | 42,117 | |||||
Interest Expense | 21,005 | 20,820 | 20,222 | 18,711 | 16,764 | |||||
Net Interest Income | 28,438 | 27,152 | 26,455 | 25,613 | 25,353 | |||||
Net Interest Income, Tax-Equivalent 2
|
28,587 | 27,315 | 26,631 | 25,797 | 25,536 | |||||
Net Interest Margin, annualized | 2.78 | % | 2.67 | % | 2.60 | % | 2.53 | % | 2.53 | % |
Net Interest Margin, Tax-Equivalent, annualized 2
|
2.79 | % | 2.69 | % | 2.62 | % | 2.55 | % | 2.55 | % |
Efficiency Ratio Calculation: 3
|
||||||||||
Non-Interest Expense | $ | 24,100 | $ | 23,318 | $ | 24,012 | $ | 23,190 | $ | 23,479 |
Less: Intangible Asset Amortization | 78 | 40 | 41 | 43 | 43 | |||||
Net Non-Interest Expense | $ | 24,022 | $ | 23,278 | $ | 23,971 | $ | 23,147 | $ | 23,436 |
Net Interest Income, Tax-Equivalent | $ | 28,587 | $ | 27,315 | $ | 26,631 | $ | 25,797 | $ | 25,536 |
Non-Interest Income | 8,133 | 7,856 | 7,858 | 7,484 | 8,050 | |||||
Less: Net Gain on Securities
|
94 | 54 | 17 | 122 | 71 | |||||
Net Gross Income | $ | 36,626 | $ | 35,117 | $ | 34,472 | $ | 33,159 | $ | 33,515 |
Efficiency Ratio | 65.59 | % | 66.29 | % | 69.54 | % | 69.81 | % | 69.93 | % |
Period-End Capital Information: | ||||||||||
Total Stockholders' Equity (i.e. Book Value) | $ | 393,311 | $ | 383,018 | $ | 377,986 | $ | 379,772 | $ | 360,014 |
Book Value per Share
|
23.50 | 22.90 | 22.62 | 22.42 | 21.12 | |||||
Goodwill and Other Intangible Assets, net | 25,979 | 22,800 | 22,891 | 22,983 | 23,078 | |||||
Tangible Book Value per Share 1
|
21.95 | 21.54 | 21.25 | 21.06 | 19.76 | |||||
Capital Ratios:4
|
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Tier 1 Leverage Ratio | 9.78 | % | 9.74 | % | 9.63 | % | 9.84 | % | 9.94 | % |
Common Equity Tier 1 Capital Ratio
|
12.77 | % | 12.88 | % | 12.84 | % | 13.00 | % | 13.17 | % |
Tier 1 Risk-Based Capital Ratio | 13.41 | % | 13.53 | % | 13.50 | % | 13.66 | % | 13.84 | % |
Total Risk-Based Capital Ratio | 14.46 | % | 14.57 | % | 14.57 | % | 14.74 | % | 14.94 | % |
Assets Under Trust Admin. & Investment Mgmt. | $ | 1,944,239 | $ | 1,848,349 | $ | 1,829,266 | $ | 1,763,194 | $ | 1,627,522 |
Footnotes: | ||||||||||
1. |
Non-GAAP Financial Measure Reconciliation: Tangible Book Value, Tangible Equity, and Return on Tangible Equity exclude goodwill and other intangible assets, net from total equity. These are non-GAAP financial measures which Arrow believes provide investors with information that is useful in understanding its financial performance.
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9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||
Total Stockholders' Equity (GAAP) | $ | 393,311 | $ | 383,018 | $ | 377,986 | $ | 379,772 | $ | 360,014 |
Less: Goodwill and Other Intangible assets, net | 25,979 | 22,800 | 22,891 | 22,983 | 23,078 | |||||
Tangible Equity (Non-GAAP) | $ | 367,332 | $ | 360,218 | $ | 355,095 | $ | 356,789 | $ | 336,936 |
Period End Shares Outstanding | 16,734 | 16,723 | 16,710 | 16,942 | 17,049 | |||||
Tangible Book Value per Share (Non-GAAP) | $ | 21.95 | $ | 21.54 | $ | 21.25 | $ | 21.06 | $ | 19.76 |
Net Income | 8,975 | 8,604 | 7,660 | 7,723 | 7,743 | |||||
Return on Tangible Equity (Net Income/Tangible Equity - Annualized)
|
9.79 | % | 9.74 | % | 8.64 | % | 8.99 | % | 9.05 | % |
2. | Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which Arrow believes provides investors with information that is useful in understanding its financial performance. | |||||||||
9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||
Interest Income (GAAP) | $ | 49,443 | $ | 47,972 | $ | 46,677 | $ | 44,324 | $ | 42,117 |
Add: Tax-Equivalent adjustment (Non-GAAP) |
149 | 163 | 176 | 184 | 183 | |||||
Interest Income - Tax Equivalent (Non-GAAP) |
$ | 49,592 | $ | 48,135 | $ | 46,853 | $ | 44,508 | $ | 42,300 |
Net Interest Income (GAAP) | $ | 28,438 | $ | 27,152 | $ | 26,455 | $ | 25,613 | $ | 25,353 |
Add: Tax-Equivalent adjustment (Non-GAAP) |
149 | 163 | 176 | 184 | 183 | |||||
Net Interest Income - Tax Equivalent (Non-GAAP) |
$ | 28,587 | $ | 27,315 | $ | 26,631 | $ | 25,797 | $ | 25,536 |
Average Earning Assets | $ | 4,075,162 | $ | 4,083,813 | $ | 4,085,398 | $ | 4,019,432 | $ | 3,973,747 |
Net Interest Margin (Non-GAAP)* | 2.79 | % | 2.69 | % | 2.62 | % | 2.55 | % | 2.55 | % |
3. | Non-GAAP Financial Measure Reconciliation: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. Arrow believes the efficiency ratio provides investors with information that is useful in understanding its financial performance. Arrow defines efficiency ratio as the ratio of non-interest expense to net gross income (which equals tax-equivalent net interest income plus non-interest income, as adjusted). | |||||||||
4. |
For the current quarter, all of the regulatory capital ratios as well as the Total Risk-Weighted Assets are calculated in accordance with bank regulatory capital rules. The September 30, 2024 CET1 ratio listed in the tables (i.e., 12.77%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).
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9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||
Total Risk Weighted Assets | $ | 3,110,178 | $ | 3,072,922 | $ | 3,049,525 | $ | 3,032,188 | $ | 2,988,438 |
Common Equity Tier 1 Capital | 397,122 | 395,691 | 391,706 | 394,166 | 393,541 | |||||
Common Equity Tier 1 Ratio | 12.77 | % | 12.88 | % | 12.84 | % | 13.00 | % | 13.17 | % |
* Quarterly ratios have been annualized. |
Quarter Ended: | September 30, 2024 | September 30, 2023 | ||||||||||
Interest | Rate | Interest | Rate | |||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | |||||||
Balance | Expense | Paid | Balance | Expense | Paid | |||||||
Interest-Bearing Deposits at Banks | $ | 154,937 | $ | 2,103 | 5.40 | % | $ | 131,814 | $ | 1,805 | 5.43 | % |
Investment Securities: | ||||||||||||
Fully Taxable | 497,450 | 2,656 | 2.12 | 616,020 | 2,924 | 1.88 | ||||||
Exempt from Federal Taxes | 92,902 | 562 | 2.41 | 129,673 | 689 | 2.11 | ||||||
Loans (1)
|
3,329,873 | 44,122 | 5.27 | 3,096,240 | 36,699 | 4.70 | ||||||
Total Earning Assets (1)
|
4,075,162 | 49,443 | 4.83 | 3,973,747 | 42,117 | 4.20 | ||||||
Allowance for Credit Losses | (31,147) | (31,386) | ||||||||||
Cash and Due From Banks | 33,159 | 32,874 | ||||||||||
Other Assets | 168,423 | 134,760 | ||||||||||
Total Assets | $ | 4,245,597 | $ | 4,109,995 | ||||||||
Deposits: | ||||||||||||
Interest-Bearing Checking Accounts | $ | 785,134 | 1,966 | 1.00 | $ | 795,627 | 1,156 | 0.58 | ||||
Savings Deposits | 1,492,888 | 10,905 | 2.91 | 1,505,916 | 9,729 | 2.56 | ||||||
Time Deposits of $250,000 or More | 174,028 | 1,803 | 4.12 | 152,738 | 1,466 | 3.81 | ||||||
Other Time Deposits | 498,767 | 4,934 | 3.94 | 257,710 | 2,051 | 3.16 | ||||||
Total Interest-Bearing Deposits | 2,950,817 | 19,608 | 2.64 | 2,711,991 | 14,402 | 2.11 | ||||||
Borrowings | 109,230 | 1,177 | 4.29 | 183,452 | 2,143 | 4.63 | ||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 173 | 3.44 | 20,000 | 173 | 3.43 | ||||||
Finance Leases | 5,019 | 47 | 3.73 | 5,075 | 46 | 3.60 | ||||||
Total Interest-Bearing Liabilities | 3,085,066 | 21,005 | 2.71 | 2,920,518 | 16,764 | 2.28 | ||||||
Noninterest-Bearing Deposits | 721,311 | 779,037 | ||||||||||
Other Liabilities | 51,316 | 47,739 | ||||||||||
Total Liabilities | 3,857,693 | 3,747,294 | ||||||||||
Stockholders' Equity | 387,904 | 362,701 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,245,597 | $ | 4,109,995 | ||||||||
Net Interest Income | $ | 28,438 | $ | 25,353 | ||||||||
Net Interest Spread | 2.12 | % | 1.92 | % | ||||||||
Net Interest Margin | 2.78 | % | 2.53 | % |
Quarter Ended: | September 30, 2024 | June 30, 2024 | ||||||||||
Interest | Rate | Interest | Rate | |||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | |||||||
Balance | Expense | Paid | Balance | Expense | Paid | |||||||
Interest-Bearing Deposits at Banks | $ | 154,937 | $ | 2,103 | 5.40 | % | $ | 159,336 | $ | 2,185 | 5.52 | % |
Investment Securities: | ||||||||||||
Fully Taxable | 497,450 | 2,656 | 2.12 | 530,869 | 3,009 | 2.28 | ||||||
Exempt from Federal Taxes | 92,902 | 562 | 2.41 | 113,323 | 637 | 2.26 | ||||||
Loans (1)
|
3,329,873 | 44,122 | 5.27 | 3,280,285 | 42,141 | 5.17 | ||||||
Total Earning Assets (1)
|
4,075,162 | 49,443 | 4.83 | 4,083,813 | 47,972 | 4.72 | ||||||
Allowance for Credit Losses | (31,147) | (31,459) | ||||||||||
Cash and Due From Banks | 33,159 | 28,611 | ||||||||||
Other Assets | 168,423 | 156,394 | ||||||||||
Total Assets | $ | 4,245,597 | $ | 4,237,359 | ||||||||
Deposits: | ||||||||||||
Interest-Bearing Checking Accounts | $ | 785,134 | 1,966 | 1.00 | $ | 832,087 | 1,903 | 0.92 | ||||
Savings Deposits | 1,492,888 | 10,905 | 2.91 | 1,487,062 | 10,571 | 2.86 | ||||||
Time Deposits of $250,000 or More | 174,028 | 1,803 | 4.12 | 172,655 | 1,869 | 4.35 | ||||||
Other Time Deposits | 498,767 | 4,934 | 3.94 | 504,076 | 5,074 | 4.05 | ||||||
Total Interest-Bearing Deposits | 2,950,817 | 19,608 | 2.64 | 2,995,880 | 19,417 | 2.61 | ||||||
Borrowings | 109,230 | 1,177 | 4.29 | 106,502 | 1,186 | 4.48 | ||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 173 | 3.44 | 20,000 | 170 | 3.42 | ||||||
Finance Leases | 5,019 | 47 | 3.73 | 5,035 | 47 | 3.75 | ||||||
Total Interest-Bearing Liabilities | 3,085,066 | 21,005 | 2.71 | 3,127,417 | 20,820 | 2.68 | ||||||
Noninterest-Bearing Deposits | 721,311 | 683,077 | ||||||||||
Other Liabilities | 51,316 | 48,609 | ||||||||||
Total Liabilities | 3,857,693 | 3,859,103 | ||||||||||
Stockholders' Equity | 387,904 | 378,256 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,245,597 | $ | 4,237,359 | ||||||||
Net Interest Income | $ | 28,438 | $ | 27,152 | ||||||||
Net Interest Spread | 2.12 | % | 2.04 | % | ||||||||
Net Interest Margin | 2.78 | % | 2.67 | % |
Average Consolidated Balance Sheets and Net Interest Income Analysis | ||||||||||||
(GAAP Basis) | ||||||||||||
(Dollars In Thousands) | ||||||||||||
Nine Months Ended September 30: | 2024 | 2023 | ||||||||||
Interest | Rate | Interest | Rate | |||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | |||||||
Balance | Expense | Paid | Balance | Expense | Paid | |||||||
Interest-Bearing Deposits at Banks | $ | 164,208 | $ | 6,735 | 5.48 | % | $ | 101,104 | $ | 3,958 | 5.23 | % |
Investment Securities: | ||||||||||||
Fully Taxable | 526,181 | 8,851 | 2.25 | 635,126 | 8,823 | 1.86 | ||||||
Exempt from Federal Taxes | 108,872 | 1,867 | 2.29 | 146,736 | 2,256 | 2.06 | ||||||
Loans (1)
|
3,282,175 | 126,639 | 5.15 | 3,041,909 | 103,203 | 4.54 | ||||||
Total Earning Assets (1)
|
4,081,436 | 144,092 | 4.72 | 3,924,875 | 118,240 | 4.03 | ||||||
Allowance for Credit Losses | (31,340) | (30,591) | ||||||||||
Cash and Due From Banks | 30,534 | 30,720 | ||||||||||
Other Assets | 162,194 | 134,310 | ||||||||||
Total Assets | $ | 4,242,824 | $ | 4,059,314 | ||||||||
Deposits: | ||||||||||||
Interest-Bearing Checking Accounts | $ | 815,933 | 5,510 | 0.90 | $ | 874,132 | 2,346 | 0.36 | ||||
Savings Deposits | 1,487,005 | 31,706 | 2.85 | 1,494,976 | 23,830 | 2.13 | ||||||
Time Deposits of $250,000 or More | 174,668 | 5,645 | 4.32 | 127,230 | 3,159 | 3.32 | ||||||
Other Time Deposits | 499,881 | 15,091 | 4.03 | 203,047 | 3,721 | 2.45 | ||||||
Total Interest-Bearing Deposits | 2,977,487 | 57,952 | 2.60 | 2,699,385 | 33,056 | 1.64 | ||||||
Borrowings | 104,257 | 3,439 | 4.41 | 151,887 | 5,309 | 4.67 | ||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 514 | 3.43 | 20,000 | 513 | 3.43 | ||||||
Finance Leases | 5,034 | 142 | 3.77 | 5,088 | 143 | 3.76 | ||||||
Total Interest-Bearing Liabilities | 3,106,778 | 62,047 | 2.67 | 2,876,360 | 39,021 | 1.81 | ||||||
Noninterest-Bearing Deposits | 703,948 | 777,994 | ||||||||||
Other Liabilities | 50,207 | 42,506 | ||||||||||
Total Liabilities | 3,860,933 | 3,696,860 | ||||||||||
Stockholders' Equity | 381,891 | 362,454 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,242,824 | $ | 4,059,314 | ||||||||
Net Interest Income | $ | 82,045 | $ | 79,219 | ||||||||
Net Interest Spread | 2.05 | % | 2.22 | % | ||||||||
Net Interest Margin | 2.69 | % | 2.70 | % |
Quarter Ended: | 9/30/2024 | 12/31/2023 | 9/30/2023 | |||
Loan Portfolio | ||||||
Commercial Loans | $ | 169,884 | $ | 156,224 | $ | 148,066 |
Commercial Real Estate Loans | 756,420 | 745,487 | 734,604 | |||
Subtotal Commercial Loan Portfolio | 926,304 | 901,711 | 882,670 | |||
Consumer Loans | 1,120,241 | 1,111,667 | 1,107,638 | |||
Residential Real Estate Loans | 1,293,392 | 1,199,530 | 1,148,309 | |||
Total Loans | $ | 3,339,937 | $ | 3,212,908 | $ | 3,138,617 |
Allowance for Credit Losses | ||||||
Allowance for Credit Losses, Beginning of Quarter | $ | 31,009 | $ | 31,112 | $ | 31,170 |
Loans Charged-off | (1,429) | (1,366) | (1,204) | |||
Less Recoveries of Loans Previously Charged-off | 748 | 994 | 792 | |||
Net Loans Charged-off | (681) | (372) | (412) | |||
Provision for Credit Losses | 934 | 525 | 354 | |||
Allowance for Credit Losses, End of Quarter | $ | 31,262 | $ | 31,265 | $ | 31,112 |
Nonperforming Assets | ||||||
Nonaccrual Loans | $ | 21,047 | $ | 20,645 | $ | 6,023 |
Loans Past Due 90 or More Days and Accruing | 816 | 452 | 251 | |||
Loans Restructured and in Compliance with Modified Terms | 30 | 54 | 60 | |||
Total Nonperforming Loans | 21,893 | 21,151 | 6,334 | |||
Repossessed Assets | 322 | 312 | 344 | |||
Other Real Estate Owned | 76 | - | 182 | |||
Total Nonperforming Assets | $ | 22,291 | $ | 21,463 | $ | 6,860 |
Key Asset Quality Ratios | ||||||
Net Loans Charged-off to Average Loans, Quarter-to-date Annualized |
0.08 | % | 0.05 | % | 0.05 | % |
Provision for Credit Losses to Average Loans, Quarter-to-date Annualized |
0.11 | % | 0.07 | % | 0.05 | % |
Allowance for Credit Losses to Period-End Loans | 0.94 | % | 0.97 | % | 0.99 | % |
Allowance for Credit Losses to Period-End Nonperforming Loans | 142.79 | % | 147.82 | % | 491.19 | % |
Nonperforming Loans to Period-End Loans | 0.66 | % | 0.66 | % | 0.20 | % |
Nonperforming Assets to Period-End Assets | 0.51 | % | 0.51 | % | 0.16 | % |
Year-to-Date Period Ended: | 9/30/2024 | 12/31/2023 | 9/30/2023 | |||
Allowance for Credit Losses | ||||||
Allowance for Credit Losses, Beginning of Year | $ | 31,265 | $ | 29,952 | $ | 29,952 |
Loans Charged-off | (4,562) | (5,177) | (3,812) | |||
Less Recoveries of Loans Previously Charged-off | 2,233 | 3,109 | 2,116 | |||
Net Loans Charged-off | (2,329) | (2,068) | (1,696) | |||
Provision for Credit Losses | 2,326 | 3,381 | 2,856 | |||
Allowance for Credit Losses, End of Period | $ | 31,262 | $ | 31,265 | $ | 31,112 |
Key Asset Quality Ratios | ||||||
Net Loans Charged-off to Average Loans, Annualized | 0.09 | % | 0.07 | % | 0.07 | % |
Provision for Loan Losses to Average Loans, Annualized | 0.09 | % | 0.11 | % | 0.13 | % |