Second Quarter 2026 vs. Second Quarter 2025 Highlights:
- Earnings per share increased 27%
- Net interest income (tax-equivalent) increased 8%
- Net interest margin (tax-equivalent) increased 15 basis points to 3.33%
- Negative provision for credit losses of
$248 thousand , compared to a charge for provision for credit losses of$113 thousand in 2Q 2025 - Return on assets (annualized) improved to 0.90%, compared to 0.74% in 2Q 2025
- Nonperforming assets decreased to 0.01% of total assets
"Our second quarter results reflect strong revenue growth, improved profitability, and continued expansion of our net interest margin," said
Net interest income (tax-equivalent) was
Net interest margin (tax-equivalent) was 3.33% in the second quarter of 2026, compared to 3.28% in the first quarter of 2026 and 3.18% in the second quarter of 2025. The increase in net interest margin was primarily due to higher yields on earning assets and a more favorable asset mix. Compared to the second quarter of 2025, the increase also benefited from a lower cost of interest-bearing deposits. Average loans were approximately
Nonperforming assets were
Net recoveries were
At
The Company recorded a negative provision for credit losses of
Noninterest income was
Noninterest expense was
The provision for income tax expense was
The effective tax rate for the second quarter of 2026 was 21.00%, compared to 21.53% for the first quarter of 2026 and 20.92% for the second quarter of 2025. The Company’s effective income tax rate is principally affected by tax-exempt earnings from the Company’s investments in municipal securities and loans, bank-owned life insurance, and New Markets Tax Credits.
Total assets were
At
The Company paid cash dividends of
About
Cautionary Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements with respect to our objectives, expectations, anticipations, estimates and intentions and all statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “designed,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “seek” and other similar words and expressions of the future. Forward looking statements, include, without limitation, statements about future financial and operating results, costs and revenues, government policies and changes in policies, including Federal Reserve monetary and regulatory actions. Forward looking statements also include statements about economic conditions generally in our markets and which may affect us, loan demand, mortgage lending activity, changes in the mix of our earning assets (including those generating tax exempt income or tax credits) and our mix and cost of deposits and wholesale liabilities, net interest income and margin, yields on earning assets, the market values and performance of securities held, effects of inflation and employment, including the effects of government fiscal and monetary policies.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, achievements and/or financial condition of the Company or the Bank to be materially different from future results, performance, achievements or financial condition expressed or implied by such forward-looking statements. Forward looking statements may not be realized due to numerous factors, including, without limitation, changes in employment levels, actual and expected changes in interest rates and interest rate expectations (generally and those applicable to our assets and liabilities) and the shape of the yield curve, and related changes in our asset values, especially investment securities, noninterest income, loan performance, loan deferrals and modifications, nonperforming assets, other real estate owned, provision for credit losses, including possible adjustments to the fair values of securities available for sale, charge-offs, collateral values, credit quality, asset sales, insurance claims, and market trends. You should not expect us to update any forward-looking statements.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those described in the “Cautionary Note Regarding Forward-Looking Statements” and the risks and uncertainties described under “Risk Factors” and elsewhere in our annual report on Form 10-K for the year ended
Explanation of Certain Unaudited Non-GAAP Financial Measures
This press release contains financial information determined by methods other than
Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes the presentation of net interest income on a tax-equivalent basis provides comparability of net interest income from both taxable and tax-exempt sources and facilitates comparability within the industry. Similarly, the efficiency ratio is a common measure that facilitates comparability with other financial institutions. Although the Company believes these non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. Along with the attached financial highlights, the Company provides reconciliations between the GAAP financial measures and these non-GAAP financial measures.
| Financial Highlights (unaudited) | ||||||||||||||||||||||||||
| Quarters Ended | Six months ended | |||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||
| Results of Operations | ||||||||||||||||||||||||||
| Net interest income (a) | $ | 7,995 | $ | 7,832 | $ | 7,411 | $ | 15,827 | $ | 14,523 | ||||||||||||||||
| Less: tax-equivalent adjustment | 107 | 99 | 67 | 206 | 134 | |||||||||||||||||||||
| Net interest income (GAAP) | 7,888 | 7,733 | 7,344 | 15,621 | 14,389 | |||||||||||||||||||||
| Noninterest income | 878 | 893 | 789 | 1,771 | 1,536 | |||||||||||||||||||||
| Total revenue | 8,766 | 8,626 | 8,133 | 17,392 | 15,925 | |||||||||||||||||||||
| Provision for credit losses | (248 | ) | (76 | ) | 113 | (324 | ) | 103 | ||||||||||||||||||
| Noninterest expense | 6,105 | 5,901 | 5,702 | 12,006 | 11,582 | |||||||||||||||||||||
| Income tax expense | 611 | 603 | 485 | 1,214 | 877 | |||||||||||||||||||||
| Net earnings | $ | 2,298 | $ | 2,198 | $ | 1,833 | $ | 4,496 | $ | 3,363 | ||||||||||||||||
| Per share data: | ||||||||||||||||||||||||||
| Basic and diluted net earnings: | $ | 0.66 | $ | 0.63 | $ | 0.52 | $ | 1.29 | $ | 0.96 | ||||||||||||||||
| Cash dividends declared | $ | 0.27 | $ | 0.27 | $ | 0.27 | $ | 0.54 | $ | 0.54 | ||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Basic | 3,492,107 | 3,494,229 | 3,493,699 | 3,493,162 | 3,493,699 | |||||||||||||||||||||
| Diluted | 3,492,107 | 3,496,518 | 3,493,699 | 3,494,292 | 3,493,699 | |||||||||||||||||||||
| Shares outstanding, at period end | 3,487,830 | 3,495,866 | 3,493,699 | 3,487,830 | 3,493,699 | |||||||||||||||||||||
| Stockholders' equity (book value) | $ | 26.91 | 26.62 | 24.64 | 26.91 | 24.64 | ||||||||||||||||||||
| Common stock price: | ||||||||||||||||||||||||||
| High | $ | 28.88 | $ | 26.50 | $ | 25.28 | $ | 28.88 | $ | 25.28 | ||||||||||||||||
| Low | 23.03 | 21.01 | 19.48 | 21.01 | 19.48 | |||||||||||||||||||||
| Period-end: | 27.04 | 23.87 | 25.00 | 27.04 | 25.00 | |||||||||||||||||||||
| To earnings ratio (c) | 11.22 | x | 10.52 | x | 13.09 | x | 11.22 | x | 13.09 | x | ||||||||||||||||
| To book value | 100 | % | 90 | % | 101 | % | 100 | % | 101 | % | ||||||||||||||||
| Performance ratios: | ||||||||||||||||||||||||||
| Return on average equity (annualized) | 9.74 | % | 9.65 | % | 9.00 | % | 9.70 | % | 8.26 | % | ||||||||||||||||
| Return on average assets (annualized) | 0.90 | % | 0.86 | % | 0.74 | % | 0.88 | % | 0.68 | % | ||||||||||||||||
| Dividend payout ratio | 40.91 | % | 42.86 | % | 51.92 | % | 41.86 | % | 56.25 | % | ||||||||||||||||
| Other financial data: | ||||||||||||||||||||||||||
| Net interest margin (a) | 3.33 | % | 3.28 | % | 3.18 | % | 3.31 | % | 3.13 | % | ||||||||||||||||
| Effective income tax rate | 21.00 | % | 21.53 | % | 20.92 | % | 21.26 | % | 20.68 | % | ||||||||||||||||
| Efficiency ratio (b) | 68.80 | % | 67.63 | % | 69.54 | % | 68.22 | % | 72.12 | % | ||||||||||||||||
| Asset Quality: | ||||||||||||||||||||||||||
| Nonperforming assets: | ||||||||||||||||||||||||||
| Nonperforming (nonaccrual) loans | $ | 64 | $ | 102 | $ | 302 | $ | 64 | $ | 302 | ||||||||||||||||
| Total nonperforming assets | $ | 64 | $ | 102 | $ | 302 | $ | 64 | $ | 302 | ||||||||||||||||
| Net charge-offs (recoveries) | $ | (21 | ) | $ | 402 | $ | (48 | ) | $ | 381 | $ | 16 | ||||||||||||||
| Allowance for credit losses as a % of: | ||||||||||||||||||||||||||
| Loans | 1.14 | % | 1.16 | % | 1.24 | % | 1.14 | % | 1.24 | % | ||||||||||||||||
| Nonperforming loans | 10,291 | % | 6,643 | % | 2,306 | % | 10,291 | % | 2,306 | % | ||||||||||||||||
| Nonperforming assets as a % of: | ||||||||||||||||||||||||||
| Loans and other real estate owned | 0.01 | % | 0.02 | % | 0.05 | % | 0.01 | % | 0.05 | % | ||||||||||||||||
| Total assets | 0.01 | % | 0.01 | % | 0.03 | % | 0.01 | % | 0.03 | % | ||||||||||||||||
| Nonperforming loans | ||||||||||||||||||||||||||
| as a % of total loans | 0.01 | % | 0.02 | % | 0.05 | % | 0.01 | % | 0.05 | % | ||||||||||||||||
| Annualized net charge-offs (recoveries) | ||||||||||||||||||||||||||
| as a % of average loans | (0.01 | ) | % | 0.28 | % | (0.03 | ) | % | 0.13 | % | 0.01 | % | ||||||||||||||
| Selected average balances: | ||||||||||||||||||||||||||
| Loans, net of unearned income | $ | 582,335 | $ | 577,489 | $ | 559,770 | $ | 579,925 | $ | 562,909 | ||||||||||||||||
| Total assets | 1,021,742 | 1,026,163 | 990,523 | 1,023,940 | 988,907 | |||||||||||||||||||||
| Total deposits | 925,608 | 930,474 | 905,227 | 928,028 | 906,011 | |||||||||||||||||||||
| Total stockholders' equity | $ | 94,340 | $ | 91,088 | $ | 81,447 | $ | 92,723 | $ | 81,447 | ||||||||||||||||
| Selected period end balances: | ||||||||||||||||||||||||||
| Loans, net of unearned income | $ | 579,589 | $ | 582,040 | $ | 562,714 | $ | 579,589 | $ | 562,714 | ||||||||||||||||
| Allowance for credit losses | 6,586 | 6,776 | 6,965 | 6,586 | 6,965 | |||||||||||||||||||||
| Total assets | 1,085,803 | 1,026,946 | 1,029,224 | 1,085,803 | 1,029,224 | |||||||||||||||||||||
| Total deposits | 988,318 | 931,109 | 939,851 | 988,318 | 939,851 | |||||||||||||||||||||
| Total stockholders' equity | $ | 93,874 | $ | 93,061 | $ | 86,071 | $ | 93,874 | $ | 86,071 | ||||||||||||||||
| (a) Tax equivalent. See “Explanation of Certain Unaudited Non-GAAP Financial Measures” and “Reconciliation of GAAP | ||||||||||||||||||||||||||
| to non-GAAP Measures (unaudited).” | ||||||||||||||||||||||||||
| (b) Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and tax-equivalent | ||||||||||||||||||||||||||
| net interest income. See "Reconciliation of GAAP to non-GAAP Measures (unaudited)" below. | ||||||||||||||||||||||||||
| (c) Calculated by dividing period end share price by earnings per share for the previous four quarters. | ||||||||||||||||||||||||||
| Average Balances and Net Interest Income Analysis (1) | |||||||||||||||||||||||||||||||||
| Quarter ended | |||||||||||||||||||||||||||||||||
| Interest | Interest | Interest | |||||||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||
| Loans and loans held for sale (2) (3) | $ | 582,590 | $ | 8,274 | 5.70 | % | $ | 577,847 | $ | 8,014 | 5.62 | % | $ | 559,939 | $ | 7,726 | 5.53 | % | |||||||||||||||
| Securities (3) (4) | 250,569 | 1,219 | 1.95 | % | 256,565 | 1,241 | 1.96 | % | 274,026 | 1,336 | 1.96 | % | |||||||||||||||||||||
| Federal funds sold | 29,471 | 260 | 3.54 | % | 24,352 | 216 | 3.60 | % | 25,705 | 280 | 4.37 | % | |||||||||||||||||||||
| Interest bearing bank deposits | 100,439 | 934 | 3.73 | % | 108,509 | 989 | 3.70 | % | 76,237 | 836 | 4.40 | % | |||||||||||||||||||||
| Total interest-earning assets | 963,069 | $ | 10,687 | 4.45 | % | 967,273 | $ | 10,460 | 4.39 | % | 935,907 | $ | 10,178 | 4.36 | % | ||||||||||||||||||
| Cash and due from banks | 13,515 | 14,153 | 15,936 | ||||||||||||||||||||||||||||||
| Other assets (5) | 45,158 | 44,737 | 38,680 | ||||||||||||||||||||||||||||||
| Total assets | $ | 1,021,742 | $ | 1,026,163 | $ | 990,523 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||
| NOW | $ | 213,794 | $ | 627 | 1.18 | % | $ | 236,218 | $ | 779 | 1.34 | % | $ | 198,973 | $ | 649 | 1.31 | % | |||||||||||||||
| Savings and money market | 274,169 | 680 | 0.99 | % | 257,214 | 473 | 0.75 | % | 253,704 | 646 | 1.02 | % | |||||||||||||||||||||
| Time deposits | 181,093 | 1,385 | 3.07 | % | 179,947 | 1,376 | 3.10 | % | 184,666 | 1,471 | 3.20 | % | |||||||||||||||||||||
| Total interest-bearing deposits | 669,056 | 2,692 | 1.61 | % | 673,379 | 2,628 | 1.58 | % | 637,343 | 2,766 | 1.74 | % | |||||||||||||||||||||
| Short-term borrowings | — | — | — | — | — | — | 110 | 1 | 3.65 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 669,056 | $ | 2,692 | 1.61 | % | 673,379 | $ | 2,628 | 1.58 | % | 637,453 | $ | 2,767 | 1.74 | % | ||||||||||||||||||
| Noninterest-bearing deposits | 256,552 | 257,095 | 267,884 | ||||||||||||||||||||||||||||||
| Other liabilities | 1,794 | 4,601 | 3,739 | ||||||||||||||||||||||||||||||
| Stockholders' equity | 94,340 | 91,088 | 81,447 | ||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,021,742 | $ | 1,026,163 | $ | 990,523 | |||||||||||||||||||||||||||
| Net interest income and margin (tax-equivalent) | $ | 7,995 | 3.33 | % | $ | 7,832 | 3.28 | % | $ | 7,411 | 3.18 | % | |||||||||||||||||||||
| (1) In the first quarter of 2026, we changed the presentation of net interest income on a tax-equivalent basis to account for tax-exempt interest income on municipal loans. Also, we | |||||||||||||||||||||||||||||||||
| reclassified average net unrealized gains (losses) on available-for-sale securities to average other assets so that average total securities are presented on an amortized cost basis in our | |||||||||||||||||||||||||||||||||
| calculation of net interest margin. Prior period amounts, including the presentation and calculation of our net interest margin, have been revised to conform with the current period | |||||||||||||||||||||||||||||||||
| presentation. | |||||||||||||||||||||||||||||||||
| (2) Loans on nonaccrual status have been included in the computation of average balances. | |||||||||||||||||||||||||||||||||
| (3) Reflects tax-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and securities to a tax-equivalent basis. | |||||||||||||||||||||||||||||||||
| (4) Securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. | |||||||||||||||||||||||||||||||||
| (5) Includes average net unrealized gains (losses) on securities available-for-sale of | |||||||||||||||||||||||||||||||||
| and | |||||||||||||||||||||||||||||||||
| Average Balances and Net Interest Income Analysis (1) | |||||||||||||||||||||||
| Six months ended | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Interest | Interest | ||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans and loans held for sale (2) (3) | $ | 580,231 | $ | 16,288 | 5.66 | % | $ | 563,086 | $ | 15,318 | 5.49 | % | |||||||||||
| Securities (3) (4) | 253,550 | 2,460 | 1.96 | % | 277,026 | 2,703 | 1.97 | % | |||||||||||||||
| Federal funds sold | 26,925 | 475 | 3.56 | % | 26,282 | 571 | 4.38 | % | |||||||||||||||
| Interest bearing bank deposits | 104,452 | 1,924 | 3.71 | % | 68,777 | 1,514 | 4.44 | % | |||||||||||||||
| Total interest-earning assets | 965,158 | $ | 21,147 | 4.42 | % | 935,171 | $ | 20,106 | 4.34 | % | |||||||||||||
| Cash and due from banks | 13,832 | 17,001 | |||||||||||||||||||||
| Other assets (5) | 44,950 | 36,735 | |||||||||||||||||||||
| Total assets | $ | 1,023,940 | $ | 988,907 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| NOW | $ | 224,944 | $ | 1,407 | 1.26 | % | $ | 204,069 | $ | 1,391 | 1.37 | % | |||||||||||
| Savings and money market | 265,739 | 1,152 | 0.87 | % | 248,233 | 1,147 | 0.93 | % | |||||||||||||||
| Time deposits | 180,523 | 2,761 | 3.08 | % | 187,763 | 3,044 | 3.27 | % | |||||||||||||||
| Total interest-bearing deposits | 671,206 | 5,320 | 1.60 | % | 640,065 | 5,582 | 1.76 | % | |||||||||||||||
| Short-term borrowings | — | — | — | 55 | 1 | 3.67 | % | ||||||||||||||||
| Total interest-bearing liabilities | 671,206 | $ | 5,320 | 1.60 | % | 640,120 | $ | 5,583 | 1.76 | % | |||||||||||||
| Noninterest-bearing deposits | 256,822 | 265,946 | |||||||||||||||||||||
| Other liabilities | 3,189 | 3,030 | |||||||||||||||||||||
| Stockholders' equity | 92,723 | 79,811 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,023,940 | $ | 988,907 | |||||||||||||||||||
| Net interest income and margin (tax-equivalent) | $ | 15,827 | 3.31 | % | $ | 14,523 | 3.13 | % | |||||||||||||||
| (1) In the first quarter of 2026, we changed the presentation of net interest income on a tax-equivalent basis to account for tax-exempt | |||||||||||||||||||||||
| interest income on municipal loans. Also, we reclassified average net unrealized gains (losses) on available-for-sale securities to | |||||||||||||||||||||||
| average other assets so that average total securities are presented on an amortized cost basis in our calculation of net interest margin. | |||||||||||||||||||||||
| Prior period amounts, including the presentation and calculation of our net interest margin, have been revised to conform with the | |||||||||||||||||||||||
| current period presentation. | |||||||||||||||||||||||
| (2) Loans on nonaccrual status have been included in the computation of average balances. | |||||||||||||||||||||||
| (3) Reflects tax-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans | |||||||||||||||||||||||
| and securities to a tax-equivalent basis. | |||||||||||||||||||||||
| (4) Securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. | |||||||||||||||||||||||
| (5) Includes average net unrealized gains (losses) on securities available-for-sale of | |||||||||||||||||||||||
| Reconciliation of GAAP to non-GAAP Measures (unaudited): | ||||||||||||||||
| Quarters Ended | Six months ended | |||||||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net interest income, as reported (GAAP) | $ | 7,888 | $ | 7,733 | $ | 7,344 | $ | 15,621 | $ | 14,389 | ||||||
| Tax-equivalent adjustment | 107 | 99 | 67 | 206 | 134 | |||||||||||
| Net interest income (tax-equivalent) | $ | 7,995 | $ | 7,832 | $ | 7,411 | $ | 15,827 | $ | 14,523 | ||||||
For additional information, contact:
President and CEO
(334) 821-9200
