Codorus Valley Bancorp, Inc. Reports Third Quarter 2020 Earnings
Codorus Valley Bancorp (CVLY) reported a net income of $3.6 million or $0.37 per share for Q3 2020, down from $5.2 million or $0.53 per share in Q3 2019. For the first nine months of 2020, net income decreased to $3.7 million or $0.38 per share, compared to $14.2 million or $1.43 per share in 2019. The decrease is largely attributed to a higher provision for loan losses of $1.9 million, influenced by COVID-19, and a reduced net interest margin of 3.17%. Despite challenges, non-interest income rose 22% to $4.2 million, driven by mortgage sales.
- Non-interest income increased by 22% to $4.2 million due to higher mortgage volumes.
- Non-interest expense decreased by 1.7% to $12.6 million compared to Q3 2019.
- Net income fell to $3.6 million from $5.2 million year-over-year.
- Provision for loan losses surged to $1.9 million from none in Q3 2019.
- Net interest income decreased by 6.4%, falling to $15.0 million from $16.0 million in Q3 2019.
- Tax-equivalent net interest margin (NIM) dropped to 3.17% from 3.68% year-over-year.
YORK, Pa., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Codorus Valley Bancorp, Inc. (Codorus Valley, or the Corporation) (NASDAQ: CVLY), parent company of PeoplesBank, A Codorus Valley Company (PeoplesBank), collectively referred to as the Company, today announced net income of
“Earnings for the third quarter 2020 were adversely affected by an increase in the provision for loan and lease losses associated with the COVID-19 pandemic and a lower net interest margin due to actions earlier this year by the Federal Reserve Board of Governors,” stated Larry J. Miller, Chairman, President/CEO. “Non-interest income has increased by
The Corporation’s net interest income for the three months ended September 30, 2020 was
The provision for loan losses for the three months ended September 30, 2020 was
Noninterest income for the third quarter 2020 was
Noninterest expense was
Income tax expense for the quarter ended September 30, 2020 was
Dividend Declared
As recently announced, on October 13, 2020, the Board of Directors of the Corporation declared a regular quarterly cash dividend of
COVID – 19 Pandemic
During the third quarter, many businesses and schools found paths to re-open and operate under a “new normal” while following state and national guidelines to mitigate the spread of the virus. COVID-19 cases in the Company’s Pennsylvania and Maryland markets were relatively steady throughout the third quarter.
The PeoplesBank Crisis Management Team continues to monitor the situation and is meeting bi-weekly to manage the changing dynamics of COVID-19.
In addition to the virus, social unrest has had an occasional impact in some of the Company’s local urban markets. This has precipitated the need to reinforce security protocols and asset management practices.
Associates
Approximately 40 percent of the Company’s associates continue to work off-premise. A phased approach and a comprehensive plan to safely return associates working remotely has been developed, and will be implemented as the number of COVID-19 cases decline. At the time of this release, two client-facing associates have tested positive for COVID-19 since the start of the pandemic. A detailed protocol for safeguarding the safety of associates and clients has been followed, including notifying clients who may have come into contact with an associate who has tested positive.
Re-Opening
By late September, the final five Financial Center lobbies re-opened. At the time of this release, all Financial Centers are operating with normal drive-thru hours and modified lobby hours. Additional lobby protocols including the use of a lobby manager to screen and limit the number of clients within the lobby continue.
All Retirement Community Office lobbies also remain open by appointment only with several modifications to ensure the safety of clients and associates. Three Loan Production Offices (Hanover, Centerville, and Bel Air) remain closed.
Client Hardship
PeoplesBank continues to responsibly and prudently extend credit to qualified borrowers. As of September 30th, PeoplesBank has processed approximately 1,329 SBA Paycheck Protection Program (PPP) loans totaling
Other News
The Company is finalizing the rollout of phase one of a new commercial loan origination system in the fourth quarter. This new system will also serve as the backbone for PeoplesBank’s companywide CRM (Customer Relationship Management) system in the future.
The Mortgage department reached its annual 2020 performance goals during the third quarter with a record-breaking number of mortgage refinances. The recent implementation of e-signatures and the ability to upload documents online has made the mortgage process seamless for clients and has increased staff productivity.
The Company
Codorus Valley Bancorp, Inc. is the largest independent financial services holding company headquartered in York, Pennsylvania. Codorus Valley primarily operates through its financial services subsidiary, PeoplesBank, A Codorus Valley Company. PeoplesBank offers a full range of consumer, business, wealth management, and mortgage services at financial centers located in communities throughout South Central Pennsylvania and Central Maryland. Codorus Valley Bancorp, Inc.’s Common Stock is listed on the NASDAQ Global Market under the symbol CVLY.
Forward-looking Statements
Codorus Valley Bancorp, Inc. has made forward-looking statements in this Press Release. These forward-looking statements are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Corporation and its subsidiaries. When words such as “believes,” “expects,” “anticipates,” or similar expressions occur in this Press Release, the Corporation is making forward-looking statements. Note that many factors could affect the future financial results of the Corporation and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Press Release. Those factors include, but are not limited to: the recent and continuing coronavirus (COVID-19) pandemic which poses risks and may harm the Corporation’s business and results of operations in future quarters, credit risk, changes in market interest rates, inability to achieve merger-related synergies, competition, economic downturn or recession, and government regulation and supervision. The Corporation provides greater detail regarding these as well as other factors in its 2019 Form 10-K and 2020 Form 10-Qs, including Risk Factors sections of those reports, and in its subsequent SEC filings. The Corporation undertakes no obligation to update or revise any forward-looking statements.
Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.
Questions or comments concerning this Press Release should be directed to:
| Codorus Valley Bancorp, Inc. Larry J. Miller Chairman, President and CEO 717-747-1500 lmiller@peoplesbanknet.com | Larry D. Pickett, CPA Treasurer 717-747-1502 lpickett@peoplesbanknet.com |
| Codorus Valley Bancorp, Inc. | |||||||||||||||||
| Financial Highlights | |||||||||||||||||
| Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||
| (in thousands of dollars, except per share data) | |||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||
| Interest income | $ | 18,411 | $ | 21,466 | $ | 57,438 | $ | 63,877 | |||||||||
| Interest expense | 3,430 | 5,453 | 12,190 | 16,090 | |||||||||||||
| Net interest income | 14,981 | 16,013 | 45,248 | 47,787 | |||||||||||||
| Provision for loan losses | 1,930 | 0 | 13,915 | 2,250 | |||||||||||||
| Noninterest income | 4,244 | 3,473 | 11,202 | 10,338 | |||||||||||||
| Noninterest expense | 12,629 | 12,851 | 38,078 | 37,916 | |||||||||||||
| Income before income taxes | 4,666 | 6,635 | 4,457 | 17,959 | |||||||||||||
| Provision for income taxes | 1,042 | 1,432 | 772 | 3,806 | |||||||||||||
| Net income | $ | 3,624 | $ | 5,203 | $ | 3,685 | $ | 14,153 | |||||||||
| Basic earnings per share | $ | 0.37 | $ | 0.53 | $ | 0.38 | $ | 1.43 | |||||||||
| Diluted earnings per share | $ | 0.37 | $ | 0.52 | $ | 0.38 | $ | 1.42 | |||||||||
| Condensed Consolidated Statements of Financial Condition (Unaudited) | |||||||||||||||||
| (in thousands of dollars) | |||||||||||||||||
| September 30, | December 31, | September 30, | |||||||||||||||
| 2020 | 2019 | 2019 | |||||||||||||||
| Cash and short term investments | $ | 241,509 | $ | 131,591 | $ | 127,346 | |||||||||||
| Investment securities | 200,389 | 164,226 | 167,469 | ||||||||||||||
| Loans | 1,588,828 | 1,516,938 | 1,500,391 | ||||||||||||||
| Allowance for loan losses | (20,909 | ) | (21,066 | ) | (21,164 | ) | |||||||||||
| Net loans | 1,567,919 | 1,495,872 | 1,479,227 | ||||||||||||||
| Premises and equipment, net | 25,785 | 25,967 | 26,782 | ||||||||||||||
| Operating leases right-of-use assets | 2,534 | 3,021 | 2,408 | ||||||||||||||
| Goodwill | 2,301 | 2,301 | 2,301 | ||||||||||||||
| Other assets | 68,534 | 63,567 | 63,863 | ||||||||||||||
| Total assets | $ | 2,108,971 | $ | 1,886,545 | $ | 1,869,396 | |||||||||||
| Deposits | $ | 1,845,873 | $ | 1,590,564 | $ | 1,560,024 | |||||||||||
| Borrowed funds | 55,922 | 89,557 | 105,588 | ||||||||||||||
| Operating leases liability | 2,669 | 3,184 | 2,579 | ||||||||||||||
| Other liabilities | 10,246 | 12,072 | 11,832 | ||||||||||||||
| Shareholders' equity | 194,261 | 191,168 | 189,373 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,108,971 | $ | 1,886,545 | $ | 1,869,396 | |||||||||||
| Codorus Valley Bancorp, Inc. | ||||||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||||||
| Selected Financial Data (Unaudited) | ||||||||||||||||||||||||||
| Quarterly | Year-to-Date | |||||||||||||||||||||||||
| 2020 | 2020 | 2020 | 2019 | 2019 | September 30, | |||||||||||||||||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2020 | 2019 | ||||||||||||||||||||
| Earnings and Per Share Data (1) | ||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||
| Net income (loss) | $ | 3,624 | $ | 3,050 | $ | (2,989 | ) | $ | 4,494 | $ | 5,203 | $ | 3,685 | $ | 14,153 | |||||||||||
| Basic earnings (loss) per share | $ | 0.37 | $ | 0.31 | $ | (0.31 | ) | $ | 0.46 | $ | 0.53 | $ | 0.38 | $ | 1.43 | |||||||||||
| Diluted earnings (loss) per share | $ | 0.37 | $ | 0.31 | $ | (0.31 | ) | $ | 0.46 | $ | 0.52 | $ | 0.38 | $ | 1.42 | |||||||||||
| Cash dividends paid per share | $ | 0.100 | $ | 0.160 | $ | 0.160 | $ | 0.152 | $ | 0.152 | $ | 0.420 | $ | 0.456 | ||||||||||||
| Tangible book value per share (2) | $ | 19.60 | $ | 19.36 | $ | 19.18 | $ | 19.36 | $ | 19.10 | $ | 19.60 | $ | 19.10 | ||||||||||||
| Book value per share | $ | 19.83 | $ | 19.60 | $ | 19.42 | $ | 19.59 | $ | 19.33 | $ | 19.83 | $ | 19.33 | ||||||||||||
| Average shares outstanding | 9,792 | 9,770 | 9,759 | 9,741 | 9,860 | 9,774 | 9,904 | |||||||||||||||||||
| Average diluted shares outstanding | 9,814 | 9,794 | 9,813 | 9,803 | 9,923 | 9,803 | 9,971 | |||||||||||||||||||
| Performance Ratios (%) | ||||||||||||||||||||||||||
| Return (loss) on average assets (3) | 0.70 | 0.59 | (0.63 | ) | 0.96 | 1.12 | 0.24 | 1.03 | ||||||||||||||||||
| Return (loss) on average equity (3) | 7.47 | 6.37 | (6.15 | ) | 9.43 | 10.98 | 2.54 | 10.17 | ||||||||||||||||||
| Net interest margin (4) | 3.02 | 3.07 | 3.44 | 3.61 | 3.60 | 3.17 | 3.68 | |||||||||||||||||||
| Efficiency ratio (5) | 65.27 | 65.52 | 70.42 | 69.50 | 65.48 | 67.07 | 64.72 | |||||||||||||||||||
| Net overhead ratio (3)(6) | 1.61 | 1.68 | 2.09 | 2.18 | 2.01 | 1.78 | 2.00 | |||||||||||||||||||
| Asset Quality Ratios (%) | ||||||||||||||||||||||||||
| Net loan charge-offs to average loans (3) | 0.52 | 1.09 | 2.04 | 0.08 | 0.00 | 1.20 | 0.02 | |||||||||||||||||||
| Allowance for loan losses to total loans (7) | 1.33 | 1.31 | 1.55 | 1.40 | 1.42 | 1.33 | 1.42 | |||||||||||||||||||
| Nonperforming assets to total loans | ||||||||||||||||||||||||||
| and foreclosed real estate | 1.29 | 1.31 | 1.97 | 1.72 | 2.26 | 1.29 | 2.26 | |||||||||||||||||||
| Capital Ratios (%) | ||||||||||||||||||||||||||
| Average equity to average assets | 9.31 | 9.30 | 10.23 | 10.17 | 10.16 | 9.59 | 10.11 | |||||||||||||||||||
| Tier 1 leverage capital ratio | 9.51 | 9.50 | 10.18 | 10.55 | 10.50 | 9.51 | 10.50 | |||||||||||||||||||
| Common equity Tier 1 capital ratio | 13.20 | 12.85 | 12.24 | 12.45 | 12.33 | 13.20 | 12.33 | |||||||||||||||||||
| Tier 1 risk-based capital ratio | 13.90 | 13.55 | 12.91 | 13.11 | 13.00 | 13.90 | 13.00 | |||||||||||||||||||
| Total risk-based capital ratio | 15.15 | 14.80 | 14.17 | 14.36 | 14.25 | 15.15 | 14.25 | |||||||||||||||||||
| (1) per share amounts and shares outstanding were adjusted for stock dividends | ||||||||||||||||||||||||||
| (2) book value less goodwill and core deposit intangibles | ||||||||||||||||||||||||||
| (3) annualized for the quarterly periods presented | ||||||||||||||||||||||||||
| (4) net interest income (tax-equivalent) as a percentage of average interest earning assets | ||||||||||||||||||||||||||
| (5) noninterest expense as a percentage of net interest income and noninterest income (tax-equivalent) | ||||||||||||||||||||||||||
| (6) noninterest expense less noninterest income as a percentage of average assets | ||||||||||||||||||||||||||
| (7) excludes loans held for sale | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measure (Tangible Book Value) | ||||||||||||||||||||||||||
| (in thousands, except per share data) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | ||||||||||||||||||||||
| Total Shareholders' Equity | $ | 194,261 | $ | 191,835 | $ | 189,596 | $ | 191,168 | $ | 189,373 | ||||||||||||||||
| Less: Preferred Stock | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Less: Goodwill and Other Intangible Assets | (2,309 | ) | (2,310 | ) | (2,311 | ) | (2,312 | ) | (2,313 | ) | ||||||||||||||||
| Tangible Shareholders' Equity | $ | 191,952 | $ | 189,525 | $ | 187,285 | $ | 188,856 | $ | 187,060 | ||||||||||||||||
| Common Shares Outstanding |
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FAQ
What is Codorus Valley Bancorp's net income for Q3 2020?
Codorus Valley Bancorp reported a net income of $3.6 million for Q3 2020.
How did the net interest margin change for Codorus Valley Bancorp in Q3 2020?
The tax-equivalent net interest margin decreased to 3.17% in Q3 2020 from 3.68% in Q3 2019.
What was the provision for loan losses for Codorus Valley Bancorp in Q3 2020?
The provision for loan losses was $1.9 million in Q3 2020, compared to none in the same quarter of 2019.
How much did Codorus Valley Bancorp's non-interest income increase in Q3 2020?
Non-interest income increased by 22% to $4.2 million in Q3 2020.
What dividend did Codorus Valley Bancorp declare for Q3 2020?
The Board declared a regular quarterly cash dividend of $0.10 per share.
Codorus Valley Bancorp Inc
NASDAQ:CVLYCVLY RankingsCVLY Latest NewsCVLY Stock Data
232.28M
9.21M
4.02%
54.54%
0.29%
Banks - Regional
Savings Institution, Federally Chartered
United States of America
YORK
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