“We are pleased with our second quarter results, as we experienced another quarter of loan growth in an increasingly challenging environment. Credit quality remains stable, and our disciplined approach to expense management is constant,” said Norman L. Lowery, Chairman and Chief Executive Officer. “Notwithstanding the turbulent environment that arose in the financial services industry towards the end of the first quarter, liquidity is stable, and our balance sheet and capital levels remain strong.”
Average Total Deposits
Average total deposits for the quarter ended June 30, 2023, were $4.12 billion versus $4.42 billion as of June 30, 2022.
Total Deposits
Total deposits were $4.06 billion as of June 30, 2023, compared to $4.38 billion as of June 30, 2022.
Shareholder Equity
Shareholder equity at June 30, 2023, was $496.9 million compared to $461.5 million on June 30, 2022. The Corporation repurchased 82,903 shares of its stock during the quarter and declared a $0.54 per share semi-annual dividend. An additional 747,317 shares remains under the current authorization. Shareholder’s equity was impacted by the downturn in the markets which affected the accumulated other comprehensive income/(loss) (“AOCI”) on investments available for sale. AOCI decreased $14.6 million in comparison to June 30, 2022, and decreased $15.8 million in comparison to March 31, 2023.
Book Value Per Share
Book Value per share was $41.47 at June 30, 2023, compared to $38.36 at June 30, 2022, an increase of 8.09%.
Tangible Common Equity to Tangible Asset Ratio
The Corporation’s tangible common equity to tangible asset ratio was 8.44% at June 30, 2023, compared to 7.48% at June 30, 2022, partially driven by the aforementioned share repurchases.
Net Interest Income
Net interest income for the second quarter of 2023 was $42.2 million, compared to $40.5 million reported for the same period of 2022, an increase of $1.7 million or 4.25%.
Net Interest Margin
The net interest margin for the quarter ended June 30, 2023, was 3.81% compared to the 3.46% reported at June 30, 2022, an increase of 35 basis points or 9.94%.
Nonperforming Loans
Nonperforming loans as of June 30, 2023, were $13.3 million versus $9.4 million as of June 30, 2022. The ratio of nonperforming loans to total loans and leases was 0.43% as of June 30, 2023, versus 0.32% as of June 30, 2022.
Credit Loss Provision
The provision for credit losses for the three months ended June 30, 2023, was $1.8 million, compared to provision of $750 thousand for the second quarter 2022.
Net Charge-Offs
In the second quarter of 2023 net charge-offs were $1.5 million compared to net recoveries of $202 thousand in the same period of 2022.
Allowance for Credit Losses
The Corporation’s allowance for credit losses as of June 30, 2023, was $39.9 million compared to $41.5 million as of June 30, 2022. The allowance for credit losses as a percent of total loans was 1.28% as of June 30, 2023, compared to 1.44% as of June 30, 2022. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased 1 basis point from 1.29% as of March 31, 2023.