Orrstown Financial Services, Inc. Reports Third Quarter 2024 Results
Orrstown Financial Services, Inc. ("Orrstown" or the "Company") closed the merger of equals transaction with Codorus Valley Bancorp, Inc. ("Codorus") on July 1, 2024, creating a premier Pennsylvania and Maryland community bank; as a result, the Company's results for the three months ended September 30, 2024 reflect the combined operating results of the combined companies;
Codorus contributed, after fair value purchase accounting adjustments, approximately $2.2 billion in total assets, $1.6 billion in loans, and $1.9 billion in deposits at July 1, 2024;
Net loss of $7.9 million, or $0.41 per diluted share, for the three months ended September 30, 2024 compared to net income of $7.7 million, or $0.73 per diluted share, for the three months ended June 30, 2024, reflecting the impact of $17.0 million in expenses related to the merger, $15.5 million of provision for credit losses on non-purchase credit deteriorated ("PCD") loans and $4.8 million for the previously announced executive retirement, net of taxes, collectively the "non-recurring charges";
Excluding the impact of the non-recurring charges, net income and diluted earnings per share, respectively, were $21.4 million(1) and $1.11(1) for the third quarter of 2024 compared to net income and diluted earnings per share of $8.7 million(1) and $0.83(1), respectively, as adjusted for the impact of $1.1 million in merger-related expenses, net of taxes, recorded for the second quarter of 2024;
Net interest margin, on a tax equivalent basis, was 4.14% in the third quarter of 2024 compared to 3.54% in the second quarter of 2024; the net accretion impact of purchase accounting marks on loans, deposits and borrowings was $5.8 million of net interest income, which represents 52 basis points of net interest margin;
Noninterest income increased by $5.1 million to $12.4 million in the three months ended September 30, 2024 compared to $7.2 million in the three months ended June 30, 2024; continued strength in wealth management and swap fee generation by commercial teams are driving fee income growth;
Return on average assets for the three months ended September 30, 2024 was (0.57)% compared to 0.97% for the three months ended June 30, 2024; excluding the non-recurring charges, return on average assets was 1.55%(1) for the three months ended September 30, 2024 compared to 1.09%(1) for the three months ended June 30, 2024, excluding merger-related expenses;
Return on average equity for the three months ended September 30, 2024 was (5.85)% compared to 11.41% for the three months ended June 30, 2024; excluding the non-recurring charges, return on average equity was 15.85%(1) for the three months ended September 30, 2024 compared to 12.88%(1) for the three months ended June 30, 2024, excluding merger related expenses;
The provision for credit losses was $13.7 million for the three months ended September 30, 2024 compared to $812 thousand for the three months ended June 30, 2024; the provision for credit losses on non-PCD loans for the three months ended September 30, 2024 was $15.5 million; excluding the impact of the merger, the provision for credit losses for the three months ended September 30, 2024 was a reversal of $1.8 million;
At September 30, 2024, nonaccrual loans totaled $26.9 million, an increase of $18.5 million from $8.4 million at June 30, 2024; non-accrual loans acquired from Codorus totaled $12.8 million;
Tangible book value per common share(1) decreased to $21.12 per share at September 30, 2024 compared to $24.08 per share at June 30, 2024; this decrease was primarily due to the impact of loan marks associated with the merger and the net loss incurred for the third quarter of 2024;
The Board of Directors declared a cash dividend of $0.23 per common share, payable November 12, 2024, to shareholders of record as of November 5, 2024.
(1) Non-GAAP measure. See Appendix A for additional information.
HARRISBURG, Pa., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Orrstown Financial Services, Inc. (NASDAQ:ORRF), the parent company of Orrstown Bank (the "Bank"), announced earnings for the three months ended September 30, 2024. Net loss totaled $7.9 million for the three months ended September 30, 2024, compared to net income of $7.7 million for the three months ended June 30, 2024 and $9.0 million for the three months ended September 30, 2023. Diluted loss per share was $0.41 for the three months ended September 30, 2024, compared to diluted earnings per share of $0.73 for the three months ended June 30, 2024 and $0.87 for the three months ended September 30, 2023. For the third quarter of 2024, excluding the impact from the non-recurring charges, net of taxes, net income and diluted earnings per share were $21.4 million(1) and $1.11(1), respectively. For the second quarter of 2024, excluding the impact of the merger-related expenses, net of taxes, net income and diluted earnings per share were $8.7 million(1) and $0.83(1), respectively.
"While the results for the quarter reflected the impact of certain non-recurring charges, the core income generated by the business demonstrates the significant opportunities afforded by the additional scale and synergies created by the merger. Our core earnings were strong. We already have taken significant steps to achieve the cost savings announced in December, which we are on target to achieve in full in the defined timeline. Our system conversion in scheduled for completion in November 2024, at which time we expect further expense savings to be realized. We believe we are well on our way to improving our client experience, expanding and deepening our community presence, and enhancing shareholder value," commented Thomas R. Quinn, Jr., President and Chief Executive Officer.
DISCUSSION OF RESULTS
Merger Update
The Company acquired Codorus and its wholly-owned bank subsidiary PeoplesBank, A Codorus Valley Company on July 1, 2024. The merger and acquisition method of accounting was used to account for the transaction with the Company as the acquirer. The Company recorded the assets and liabilities of Codorus at their respective fair values as of July 1, 2024. The transaction was valued at approximately $234 million and expanded the Bank's footprint into the York, Pennsylvania market while increasing its market penetration in its existing markets.
At the time of the merger, Codorus contributed, after fair value purchase accounting adjustments, approximately $2.2 billion in assets, $1.6 billion in loans, $326.7 million in investment securities and $1.9 billion in deposits. The excess of the merger consideration over the fair value of net Codorus assets resulted in goodwill of $51.9 million. The merger led to a 12% dilution in our tangible book value per share which was $21.12 at September 30, 2024 compared to $24.08 at June 30, 2024. The principal cause of the dilution was the impact of the associated purchase accounting marks on loans. The Company's tangible common equity ratio at September 30, 2024 was 7.5%. The loan fair value adjustments are expected to accrete back through income and capital as the loans mature and should lead to earnings per share and capital accretion moving forward. The fair value of assets and liabilities are subject to refinement for up to one year after the acquisition date as allowable under U.S. Generally Accepted Accounting Principles.
The Company incurred expenses of $32.5 million and $34.3 million for the three and nine months ended September 30, 2023, respectively, related to merger costs and an increased allowance for credit losses on non-PCD portion of the loans assumed from Codorus.
The Company's financial results for any periods ended prior to July 1, 2024 reflect Orrstown's results only on a standalone basis. As a result of this factor and the below listed adjustments related to the merger, the Company's financial results for the third quarter of 2024 may not be directly comparable to prior reported periods.
Balance Sheet
Loans
Loans held for investment increased by $1.7 billion from June 30, 2024 to September 30, 2024 as $1.6 billion of loans, net of purchase accounting marks, were assumed in the merger with Codorus.
Investment Securities
Investment securities, all of which are classified as available-for-sale, increased by $297.7 million to $826.8 million at September 30, 2024 from $529.1 million at June 30, 2024. Investments with a fair value of $326.7 million were assumed in the merger with Codorus. During the third quarter of 2024, investment securities totaling $162.7 million were sold from the portfolio acquired from Codorus. The portfolio was restructured to align the interest rate risk and credit profile for the combined balance sheet. Most of these proceeds were reinvested in investment securities as purchases of $140.4 million were made in the three months ended September 30, 2024. These purchases were partially offset by paydowns of investment securities of $20.6 million and two calls totaling $5.0 million. The overall duration of the Company's investment securities portfolio was 4.6 years at September 30, 2024 compared to 4.2 years at June 30, 2024. See Appendix B for a summary of the Bank's investment securities at September 30, 2024, highlighting their concentrations, credit ratings and credit enhancement levels.
Deposits
During the third quarter of 2024, deposits increased by $2.0 billion to approximately $4.7 billion at September 30, 2024 compared to $2.7 billion at June 30, 2024. Deposits of $1.9 billion were assumed in the merger. At September 30, 2024, deposits that are uninsured and not collateralized totaled $692.6 million, or 15% of total deposits compared to $422.3 million, or 16% of total deposits at June 30, 2024. The Bank's loan-to-deposit ratio decreased slightly to 86% at September 30, 2024 from 87% at June 30, 2024.
Borrowings
The Bank actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings were $115.4 million at September 30, 2024 and $115.0 million at June 30, 2024. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed on a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.0 billion at September 30, 2024. The Bank's FHLB borrowing capacity at September 30, 2024 was not inclusive of Codorus, which will be reflected in the fourth quarter.
The Company assumed $31.0 million aggregate principal amount of subordinated debentures and $10.3 million aggregate amount of trust preferred securities from Codorus in the merger. Fair value adjustments of $5.1 million were recorded on July 1, 2024 which reduced the amounts recorded on the balance sheet.
Income Statement
Net Interest Income and Margin
Net interest income was $51.7 million for the three months ended September 30, 2024 compared to $26.1 million for the three months ended June 30, 2024. The net interest margin, on a tax equivalent basis, increased to 4.14% in the third quarter of 2024 from 3.54% in the second quarter of 2024. The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, deposits and borrowings of $5.8 million, which represents 52 basis points of net interest margin. Funding costs show signs of stabilizing.
Several components of the net interest margin increased primarily as the result of the assets and liabilities assumed in the merger with Codorus.
Interest income on loans, on a tax equivalent basis, increased by $35.2 million to $70.8 million for the three months ended September 30, 2024 compared to $35.7 million for the three months ended June 30, 2024.
Interest income on investment securities, on a tax equivalent basis, was $10.1 million for the third quarter of 2024 compared to $6.1 million in the second quarter of 2024.
Interest expense, on a tax equivalent basis, increased by $14.1 million to $31.3 million for the three months ended September 30, 2024 compared to $17.2 million for the three months ended June 30, 2024. Average interest-bearing deposits increased by $1.6 billion during the three months ended September 30, 2024 compared to the three months ended June 30, 2024. Average borrowings increased by $35.8 million during the three months ended September 30, 2024 compared to the three months ended June 30, 2024. Interest expense includes $0.4 million and $0 of amortization of purchase accounting marks for the three months ended September 30, 2024 and June 30, 2024, respectively.
Provision for Credit Losses
The Company recorded a provision for credit losses of $13.7 million for the three months ended September 30, 2024 compared to $0.8 million for the three months ended June 30, 2024. The allowance for credit losses ("ACL") on loans increased to $49.6 million at September 30, 2024 from $29.9 million at June 30, 2024. The increase in the ACL was primarily due to the addition of $21.4 million of reserves as a result of the merger. This increase was made up of $15.5 million for non-PCD loans, which was recognized through the provision for credit losses, and $5.9 million for PCD loans which was recognized through retained earnings. The provision for credit losses for the three months ended September 30, 2024 included a provision reversal of $1.8 million due to changes in qualitative factors, a change in the peer group utilized for the calculation and a reduction in the required reserve for unfunded commitments. The ACL to total loans was 1.25% at September 30, 2024 compared to 1.27% at June 30, 2024. Net charge-offs were $0.3 million for the three months ended September 30, 2024 compared to net charge-offs of $0.1 million for the three months ended June 30, 2024.
As a result of the merger, classified loans increased by $56.8 million to $105.5 million at September 30, 2024 from $48.7 million at June 30, 2024. Non-accrual loans increased by $18.5 million to $26.9 million at September 30, 2024 from $8.4 million at June 30, 2024 due primarily to the assumption of $12.8 million of non-accrual loans from Codorus. Nonaccrual loans to total loans increased to 0.68% at September 30, 2024 compared to 0.36% at June 30, 2024 and decreased from 1.11% at December 31, 2023. Management believes the ACL to be adequate based on current asset quality metrics and economic conditions.
Noninterest Income
Noninterest income increased by $5.1 million to $12.4 million in the three months ended September 30, 2024 compared to $7.2 million in the three months ended June 30, 2024 primarily due to the merger.
Wealth management income increased to $5.0 million in the three months ended September 30, 2024 compared to $3.3 million for the three months ended June 30, 2024. The strong sales efforts, organic growth and stock market performance have collectively driven exceptional wealth results throughout the year. As a result of the merger, assets under management increased to approximately $3.2 billion at September 30, 2024 from $2.1 billion at June 30, 2024.
During the third quarter of 2024, the Company recorded swap fee income of $0.5 million compared to $0.4 million in the three months ended June 30, 2024. Swap fee generation has been strong, but fluctuates based on market conditions and client demand.
Noninterest Expenses
Noninterest expenses increased by $37.7 million to $60.3 million in the three months ended September 30, 2024 from $22.6 million in the three months ended June 30, 2024 primarily due to the merger.
For the three months ended September 30, 2024, merger-related expenses totaled $17.0 million, an increase of $15.9 million, compared to $1.1 million for the three months ended June 30, 2024. The increase is due to primarily to employee separation costs, vendor contract terminations, and professional fees incurred during the third quarter of 2024. The Company will incur additional merger-related expenses from the operational and technology processes to combine systems and services of both companies, which is expected to be completed in November 2024.
Salaries and benefits expense increased by $14.0 million to $27.2 million for the three months ended September 30, 2024 compared to $13.2 million for the three months ended June 30, 2024. The three months ended September 30, 2024 includes $4.8 million of expenses associated with the retirement of an executive.
Intangible asset amortization increased to $2.5 million for the three months ended September 30, 2024 compared to $0.2 million for the three months ended June 30, 2024. This increase is due to the amortization expense recognized on the core deposit intangible of $35.9 million and wealth customer relationship intangible of $10.4 million established on July 1, 2024 from the merger.
Taxes other than income increased to $0.5 million in the three months ended September 30, 2024 compared to less than $0.1 million in the three months ended June 30, 2024. This increase reflects the tax credits recognized on the contributions during the second quarter of 2024.
There was $257 thousand of restructuring expenses recognized in the three months ended September 30, 2024 associated with previously announced branch closures.
Income Taxes
The Company's effective tax rate for the third quarter of 2024 was 20.1% compared to 21.2% for the second quarter of 2024. The Company's effective tax rate for the three months ended September 30, 2024 is less than the 21% federal statutory rate primarily due to tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits partially offset by the disallowed portion of interest expense against earnings in association with the Bank's tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") and the impact of nondeductible merger-related costs. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly.
Capital
Shareholders' equity totaled $516.2 million at September 30, 2024, an increase of $237.8 million from $278.4 million at June 30, 2024. The increase was primarily attributable to the equity assumed in the merger, net of purchase accounting adjustments, partially offset by a net loss of $7.9 million and dividends paid of $4.4 million.
Tangible book value per share(1) decreased to $21.12 per share at September 30, 2024 from $24.08 per share at June 30, 2024 due to the purchase accounting adjustments associated with the merger.
The Company's tangible common equity ratio decreased to 7.5% at September 30, 2024 from 8.1% at June 30, 2024 due to purchase accounting marks and a net loss recorded during the third quarter of 2024. The Company's total risk-based capital ratio was 12.5% at September 30, 2024 compared to 13.3% at June 30, 2024. The Company's Tier 1 leverage ratio was 8.0% at September 30, 2024 compared to 8.9% at June 30, 2024. The loan fair value adjustments are expected to accrete back through income and capital as the loans mature and should lead to earnings per share and capital accretion moving forward.
At September 30, 2024, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed "well capitalized" under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements.
(1) Non-GAAP measure. See Appendix A for additional information.
Investor Relations Contact:
Neelesh Kalani
Executive Vice President, Chief Financial Officer
Phone (717) 510-7097
FINANCIAL HIGHLIGHTS (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
(In thousands)
2024
2023
2024
2023
Profitability for the period:
Net interest income
$
51,697
$
26,219
$
104,681
$
78,888
Provision for credit losses
13,681
136
14,791
1,264
Noninterest income
12,386
5,925
26,188
19,161
Noninterest expenses
60,299
20,447
105,407
61,451
(Loss) income before income tax (benefit) expense
(9,897
)
11,561
10,671
35,334
Income tax (benefit) expense
(1,994
)
2,535
2,305
7,314
Net (loss) income available to common shareholders
$
(7,903
)
$
9,026
$
8,366
$
28,020
Financial ratios:
Return on average assets (1)
(0.57)%
1.18
%
0.28
%
1.25
%
Return on average assets, adjusted (1) (2) (3)
1.55
%
1.18
%
1.33
%
1.25
%
Return on average equity (1)
(5.85)%
14.42
%
3.10
%
15.51
%
Return on average equity, adjusted (1) (2) (3)
15.85
%
14.42
%
14.59
%
15.51
%
Net interest margin (1)
4.14
%
3.73
%
3.88
%
3.83
%
Efficiency ratio
94.1
%
63.6
%
80.5
%
62.7
%
Efficiency ratio, adjusted (2) (3)
60.2
%
63.6
%
62.6
%
62.7
%
(Loss) income per common share:
Basic
$
(0.41
)
$
0.87
$
0.63
$
2.71
Basic, adjusted (2) (3)
$
1.12
$
0.87
$
2.96
$
2.71
Diluted
$
(0.41
)
$
0.87
$
0.62
$
2.68
Diluted, adjusted (2) (3)
$
1.11
$
0.87
$
2.93
$
2.68
Average equity to average assets
9.75
%
8.18
%
9.13
%
8.09
%
(1) Annualized for the three and nine months ended September 30, 2024 and 2023.
(2) Ratio for the three and nine months ended September 30, 2024 has been adjusted for the non-recurring charges.
(3) Non-GAAP based financial measure. Please refer to Appendix A - Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.
FINANCIAL HIGHLIGHTS (Unaudited)
(continued)
September 30,
December 31,
(Dollars in thousands, except per share amounts)
2024
2023
At period-end:
Total assets
$
5,470,589
$
3,064,240
Loans, net of allowance for credit losses
3,931,807
2,269,611
Loans held-for-sale, at fair value
3,561
5,816
Securities available for sale, at fair value
826,828
513,519
Total deposits
4,650,853
2,558,814
FHLB advances and other borrowings and Securities sold under agreements to repurchase
137,310
147,285
Subordinated notes and trust preferred debt
68,510
32,093
Shareholders' equity
516,206
265,056
Credit quality and capital ratios (1):
Allowance for credit losses to total loans
1.25
%
1.25
%
Total nonaccrual loans to total loans
0.68
%
1.11
%
Nonperforming assets to total assets
0.49
%
0.83
%
Allowance for credit losses to nonaccrual loans
184
%
112
%
Total risk-based capital:
Orrstown Financial Services, Inc.
12.5
%
13.0
%
Orrstown Bank
12.3
%
12.8
%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.
10.0
%
10.8
%
Orrstown Bank
11.1
%
11.6
%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.
9.8
%
10.8
%
Orrstown Bank
11.1
%
11.6
%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.
8.0
%
8.9
%
Orrstown Bank
8.8
%
9.5
%
Book value per common share
$
26.65
$
24.98
(1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses ("CECL") to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands, except per share amounts)
September 30, 2024
December 31, 2023
Assets
Cash and due from banks
$
65,064
$
32,586
Interest-bearing deposits with banks
171,716
32,575
Cash and cash equivalents
236,780
65,161
Restricted investments in bank stocks
20,247
11,992
Securities available for sale (amortized cost of $845,869 and $549,089 at September 30, 2024 and December 31, 2023, respectively)
826,828
513,519
Loans held for sale, at fair value
3,561
5,816
Loans
3,981,437
2,298,313
Less: Allowance for credit losses
(49,630
)
(28,702
)
Net loans
3,931,807
2,269,611
Premises and equipment, net
49,839
29,393
Cash surrender value of life insurance
142,895
73,204
Goodwill
70,655
18,724
Other intangible assets, net
46,144
2,414
Accrued interest receivable
20,562
13,630
Deferred tax assets, net
38,517
22,017
Other assets
82,754
38,759
Total assets
$
5,470,589
$
3,064,240
Liabilities
Deposits:
Noninterest-bearing
$
815,404
$
430,959
Interest-bearing
3,835,449
2,127,855
Total deposits
4,650,853
2,558,814
Securities sold under agreements to repurchase and federal funds purchased
21,932
9,785
FHLB advances and other borrowings
115,378
137,500
Subordinated notes and trust preferred debt
68,510
32,093
Other liabilities
97,710
60,992
Total liabilities
4,954,383
2,799,184
Shareholders' Equity
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding
—
—
Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,723,217 shares issued and 19,373,354 outstanding at September 30, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023
1,027
583
Additional paid—in capital
422,177
189,027
Retained earnings
117,311
117,667
Accumulated other comprehensive loss
(15,888
)
(28,476
)
Treasury stock— 349,863 and 592,209 shares, at cost at September 30, 2024 and December 31, 2023, respectively
(8,421
)
(13,745
)
Total shareholders' equity
516,206
265,056
Total liabilities and shareholders' equity
$
5,470,589
$
3,064,240
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
(Dollars in thousands, except per share amounts)
2024
2023
2024
2023
Interest income
Loans
$
70,647
$
32,738
$
142,417
$
92,685
Investment securities - taxable
9,005
4,459
18,588
13,244
Investment securities - tax-exempt
883
861
2,641
2,591
Short-term investments
2,452
633
5,272
1,349
Total interest income
82,987
38,691
168,918
109,869
Interest expense
Deposits
28,603
10,582
57,384
25,392
Securities sold under agreements to repurchase and federal funds purchased
96
31
148
84
FHLB advances and other borrowings
1,154
1,354
3,780
3,992
Subordinated notes and trust preferred debt
1,437
505
2,925
1,513
Total interest expense
31,290
12,472
64,237
30,981
Net interest income
51,697
26,219
104,681
78,888
Provision for credit losses
13,681
136
14,791
1,264
Net interest income after provision for credit losses
38,016
26,083
89,890
77,624
Noninterest income
Service charges
2,360
1,260
4,843
3,668
Interchange income
1,779
963
3,651
2,921
Swap fee income
505
255
1,079
451
Wealth management income
5,037
2,826
11,451
8,395
Mortgage banking activities
491
(142
)
1,318
448
Investment securities gains (losses)
271
2
254
(8
)
Other income
1,943
761
3,592
3,286
Total noninterest income
12,386
5,925
26,188
19,161
Noninterest expenses
Salaries and employee benefits
27,190
12,885
54,137
38,135
Occupancy, furniture and equipment
4,333
2,460
9,677
7,059
Data processing
2,046
1,248
4,548
3,666
Advertising and bank promotions
537
332
1,709
1,656
FDIC insurance
862
477
1,722
1,500
Professional services
1,119
965
2,551
2,203
Taxes other than income
503
387
1,046
847
Intangible asset amortization
2,464
228
2,904
717
Merger-related expenses
16,977
—
18,784
—
Restructuring expenses
257
—
257
—
Other operating expenses
4,011
1,465
8,072
5,668
Total noninterest expenses
60,299
20,447
105,407
61,451
(Loss) income before income tax (benefit) expense
(9,897
)
11,561
10,671
35,334
Income tax (benefit) expense
(1,994
)
2,535
2,305
7,314
Net (loss) income
$
(7,903
)
$
9,026
$
8,366
$
28,020
continued
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2024
2023
2024
2023
Share information:
Basic (loss) earnings per share
$
(0.41
)
$
0.87
$
0.63
$
2.71
Diluted (loss) earnings per share
$
(0.41
)
$
0.87
$
0.62
$
2.68
Dividends paid per share
$
0.23
$
0.20
$
0.63
$
0.60
Weighted average shares - basic
19,088
10,319
13,298
10,346
Weighted average shares - diluted
19,226
10,405
13,441
10,440
ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)
Three Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Taxable-
Taxable-
Taxable-
Taxable-
Taxable-
Taxable-
Taxable-
Taxable-
Taxable-
Taxable-
(In
Average
Equivalent
Equivalent
Average
Equivalent
Equivalent
Average
Equivalent
Equivalent
Average
Equivalent
Equivalent
Average
Equivalent
Equivalent
thousands)
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
Assets
Federal funds sold & interest-bearing bank balances
$
184,465
$
2,452
5.29
%
$
142,868
$
1,864
5.25
%
$
74,523
$
956
5.16
%
$
37,873
$
460
4.82
%
$
57,778
$
633
4.35
%
Investment securities (1)(2)
849,700
10,123
4.77
538,451
6,114
4.54
519,851
5,694
4.39
508,891
5,890
4.63
521,234
5,548
4.26
Loans (1)(3)(4)(5)
3,989,259
70,849
7.07
2,324,942
35,690
6.17
2,308,103
36,382
