CB Financial Services, Inc. Announces Fourth Quarter and Full Year 2023 Financial Results and Declares Quarterly Cash Dividend

CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”), today announced its fourth quarter and 2023 financial results.

		Three Months Ended																							Year Ended
		12/31/23				9/30/23				6/30/23					3/31/23				12/31/22						12/31/23				12/31/22
(Dollars in thousands, except per share data) (Unaudited)
Net Income (GAAP)		$	12,966			$	2,672			$	2,757				$	4,156			$	4,152					$	22,550			$	11,247
Net Income Adjustments			(9,905	)			29				78					(127	)			(66	)					(9,926	)			(208	)
Adjusted Net Income (Non-GAAP) (1)		$	3,061			$	2,701			$	2,835				$	4,029			$	4,086					$	12,624			$	11,039
Earnings per Common Share - Diluted (GAAP)		$	2.52			$	0.52			$	0.54				$	0.81			$	0.81					$	4.40			$	2.18
Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)		$	0.60			$	0.53			$	0.55				$	0.79			$	0.80					$	2.46			$	2.14

(1)	Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted as presented later in this Press Release.

2023 Fourth Quarter Financial Highlights

(Comparisons to three months ended December 31, 2022 unless otherwise noted)

• Net income was $13.0 million, compared to $4.2 million. Current period results were driven by a $24.6 million pre-tax gain on the sale of the Bank’s subsidiary insurance company, Exchange Underwriters (EU), partially offset by a $9.8 million pre-tax loss on the sale of securities resulting primarily from the execution of a balance sheet repositioning strategy. Results were also impacted by net interest margin (NIM) compression coupled with increases in noninterest expense and income tax expense, partially offset by a decrease in the provision for credit losses.
  • Adjusted net income (Non-GAAP) was $3.1 million compared to $4.1 million.
  • Income before income tax expense was $18.3 million compared to $5.2 million.
  • Adjusted pre-provision net revenue (PPNR) (Non-GAAP) was $2.1 million compared to $5.1 million.
• Earnings per diluted common share (EPS) increased to $2.52 from $0.81.
  • Adjusted earning per common share - diluted (Non-GAAP) was $0.60, compared to $0.80.
• Return on average assets (annualized) was 3.62%, compared to 1.16%.
  • Adjusted return on average assets (annualized) (Non-GAAP) was 0.85%, compared to 1.15%.
• Return on average equity (annualized) was 44.99%, compared to 15.26%.
  • Adjusted return on average equity (annualized) (Non-GAAP) was 10.62%, compared to 15.01%.
• NIM declined to 3.19% from 3.46%.
• Net interest and dividend income was $11.1 million, compared to $11.9 million.
• Noninterest income increased to $16.5 million, compared to $2.4 million including the aforementioned gain on the sale of the subsidiary and loss on the sale of securities.
• Noninterest expense increased to $10.8 million, compared to $9.0 million, primarily due to increases in compensation and benefits and equipment costs.

(Amounts at December 31, 2023; comparisons to December 31, 2022, unless otherwise noted)

• Total assets increased to $1.46 billion from $1.41 billion.
• Total loans increased $60.5 million, or 5.8%, to $1.11 billion compared to $1.05 billion, and included increases of $41.2 million, or 58.9%, in commercial and industrial loans, $30.3 million, or 6.9%, in commercial real estate loans, $17.1 million, or 5.2%, in residential mortgage loans, and $8.9 million, or 43.8%, in other loans, partially offset by a decrease of $35.3 million, or 24.0%, in consumer loans, which is primarily comprised of indirect automobile loans. Excluding the $34.9 million decrease in indirect automobile loans resulting from the discontinuation of that product as of June 30, 2023, total loans increased $95.4 million, or 9.1%.
• Nonperforming loans to total loans was 0.20%, a decrease of 35 basis points (“bps”), compared to 0.55%.
• Total deposits were $1.267 billion, a decrease of $1.3 million, compared to $1.269 billion.
• Book value per share was $27.31, compared to $22.43 as of September 30, 2023 and $21.60 as of December 31, 2022.
• Tangible book value per share (Non-GAAP) was $25.23, compared to $20.10 as of September 30, 2023 and $19.00 as of December 31, 2022. The year-to-date change was due to an increase in stockholders’ equity primarily related to current period net income of $22.6 million, a $9.5 million increase in accumulated other comprehensive income and a $2.1 million positive adjustment due to the Company’s January 1, 2023 adoption of CECL, partially offset by current period dividends paid to stockholders of $5.1 million.

Management Commentary

President and CEO John H. Montgomery commented, "Three years ago, we embarked on a comprehensive strategy aimed at optimizing operations, investing in talent, and fortifying our dedication to all stakeholders by striving for excellence in client experience. Despite facing a challenging and uncertain economic landscape, our efforts in 2023, coupled with the work of the preceding two years, underscore our commitment to these objectives.

While our fourth-quarter results reflected the ongoing trend of net interest margin pressure due to heightened funding costs driven by prevailing market interest rates, we sustained consistent loan growth. This growth was particularly notable in higher-yielding commercial loans. In a year marked by significant deposit movements, our core deposits remained relatively stable, albeit shifting from non-interest and low interest bearing accounts to higher cost time deposits. Notably, our asset quality remains strong, with nonperforming loans well below prior year levels.

Despite the challenges posed by the interest rate environment, our prior investments in talent and our ongoing efforts to streamline operations are yielding positive outcomes across our franchise.

During the quarter, we successfully completed the sale of our full-service independent insurance agency subsidiary, Exchange Underwriters, to World Insurance Associates. This transaction not only realized a substantial valuation premium but also proved immediately accretive to capital, tangible book value and liquidity. The additional capital infusion provides us with the flexibility to assess and pursue various strategic initiatives that reinforce our core banking business, with a specific focus on enhancing long-term shareholder value.

Furthermore, we made a proactive decision to reposition our securities portfolio. On an annualized basis, the acquired securities exhibit a positive spread differential of approximately 360 basis points over the securities that were divested. This strategic move is anticipated to add approximately 17 basis points to net interest margin and contribute approximately $1.8 million of after-tax earnings in 2024. Aligned with the sale of our insurance agency subsidiary, we view this as a judicious deployment of capital designed to augment long-term shareholder value and bolster earnings.”

In conclusion, Mr. Montgomery affirmed, "As we usher in 2024, our commitment to prudently manage our capital and liquidity positions remains unwavering. We will persist in investing in our franchise, staying true to our long-term plan and prioritizing the delivery of an exceptional client experience that accrues benefits to all our stakeholders."

Dividend Information

The Company’s Board of Directors declared a $0.25 quarterly cash dividend per outstanding share of common stock, payable on or about February 29, 2024, to stockholders of record as of the close of business on February 15, 2024.

2023 Fourth Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income decreased $730,000, or 6.2%, to $11.1 million for the three months ended December 31, 2023 compared to $11.9 million for the three months ended December 31, 2022.

• Net interest margin (GAAP) decreased to 3.19% for the three months ended December 31, 2023 compared to 3.46% for the three months ended December 31, 2022. Fully tax equivalent (FTE) net interest margin (Non-GAAP) decreased 26 bps to 3.21% for the three months ended December 31, 2023 compared to 3.47% for the three months ended December 31, 2022.
• Interest and dividend income increased $3.1 million, or 22.0%, to $16.9 million for the three months ended December 31, 2023 compared to $13.9 million for the three months ended December 31, 2022.
  • Interest income on loans increased $3.0 million, or 25.1%, to $14.8 million for the three months ended December 31, 2023 compared to $11.8 million for the three months ended December 31, 2022. The average yield on loans increased 82 bps to 5.36% compared to 4.54% resulting in a $2.2 million increase in interest income on loans. The average balance of loans increased $63.6 million to $1.10 billion from $1.03 billion, generating $750,000 of additional interest income on loans.
  • Interest income on taxable investment securities increased $190,000, or 19.5%, to $1.2 million for the three months ended December 31, 2023 compared to $974,000 for the three months ended December 31, 2022 driven by a 45 bp increase in average yield, partially offset by a $10.2 million decrease in average balances.
  • Interest income on interest-earning deposits at other banks decreased $131,000, to $808,000 for the three months ended December 31, 2023 compared to $939,000 for the three months ended December 31, 2022 driven by a $29.9 million decrease in average balances, partially offset by a 91 bp increase in the average yield. The increase in the average yield was the result of the Federal Reserve Board’s interest rate increases.
• Interest expense increased $3.8 million, or 190.0%, to $5.8 million for the three months ended December 31, 2023 compared to $2.0 million for the three months ended December 31, 2022.
  • Interest expense on deposits increased $3.5 million, or 194.6%, to $5.3 million for the three months ended December 31, 2023 compared to $1.8 million for the three months ended December 31, 2022. Rising market interest rates led to the repricing of interest-bearing demand and money market deposits and a shift in deposits from noninterest-bearing to interest-bearing demand and time deposits which resulted in a 139 bp, or 171.7%, increase in the average cost of interest-bearing deposits compared to the three months ended December 31, 2022. This accounted for a $3.4 million increase in interest expense. Additionally, interest-bearing deposit balances increased $73.3 million, or 8.3%, to $961.0 million as of December 31, 2023 compared to $887.7 million as of December 31, 2022, accounting for a $170,000 increase in interest expense.
  • Interest expense on borrowed funds increased $255,000, or 143.3%, to $433,000 for the three months ended December 31, 2023 compared to $178,000 for the three months ended December 31, 2022. The average balance of borrowed funds increased $20.6 million due to $20.0 million of FHLB long-term advances added during the second quarter of 2023. The increase in the average balance accounted for a $185,000 increase in interest expense.

Provision for Credit Losses

Effective January 1, 2023, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The provision for credit losses recorded for the three months ended December 31, 2023 was a recovery of $1.4 million and was primarily due to improvements in qualitative factors coupled with a decrease in historical loss rates. This compared to no provision for credit losses recorded for the three months ended December 31, 2022.

Noninterest Income

Noninterest income increased $14.2 million, or 599.9%, to $16.5 million for the three months ended December 31, 2023, compared to $2.4 million for the three months ended December 31, 2022. This increase related to a $24.6 million pre-tax gain on the sale of EU, partially offset by a $9.8 million pre-tax loss on the sale of securities primarily resulting from the execution of a balance sheet repositioning strategy. Noninterest income excluding the gain on the sale of the subsidiary and gains and losses on securities for both periods decreased $507,000 to $1.8 million for the three months ended December 31, 2023 compared to $2.3 million for the three months ended December 31, 2022. This decrease resulted primarily from a $430,000 decrease in insurance commissions as only two months of income were recognized for the three months ended December 31, 2023 due to the sale of EU, compared to a full quarter of income recognized for the three months ended December 31, 2022.

Noninterest Expense

Noninterest expense increased $1.8 million, or 19.6%, to $10.8 million for the three months ended December 31, 2023 compared to $9.0 million for the three months ended December 31, 2022. The current quarter increase included one-time non-recurring expenses associated with sale of the insurance subsidiary of $691,000 related to salaries and benefits, $109,000 related to other noninterest expenses and $17,000 related to legal and professional fees. Salaries and benefits increased $1.6 million, or 34.6%, to $6.2 million primarily due to previously mentioned one-time non recurring expense, merit increases and revenue producing staff additions. Equipment expense increased $120,000 or 67.4%, to $298,000, due to costs associated with the implementation and operation of new interactive teller machines.

Statement of Financial Condition Review

Assets

Total assets increased $47.2 million, or 3.4%, to $1.46 billion at December 31, 2023, compared to $1.41 billion at December 31, 2022.

• Cash and due from banks decreased $33.7 million, or 32.5%, to $70.0 million at December 31, 2023, compared to $103.7 million at December 31, 2022, due to significant loan growth.
• Securities increased $17.0 million, or 8.9%, to $207.1 million at December 31, 2023, compared to $190.1 million at December 31, 2022. The securities balance was primarily impacted by the purchase of $29.9 million of collateralized loan obligation securities, partially offset by $15.8 million of repayments on mortgage-backed and collateralized mortgage obligation securities and a $110,000 decrease in the market value in the equity securities portfolio, which is primarily comprised of bank stocks. During the fourth quarter, the Bank implemented a balance sheet repositioning strategy of its portfolio of available-for-sale securities. The Bank sold $69.3 million in market value of its lower-yielding U.S government agency, mortgage-backed and municipal securities with an average yield of 1.89% and purchased $69.3 million of higher-yielding mortgage-backed and collateralized mortgage obligation securities with an average yield of 5.49%.

Loans and Credit Quality

• Total loans increased $60.5 million, or 5.8%, to $1.11 billion at December 31, 2023 compared to $1.05 billion at December 31, 2022. Loan growth was driven by increases in commercial and industrial loans, commercial real estate loans, residential mortgage loans and other loans of $41.2 million, $30.3 million, $17.1 million, and $8.9 million, respectively, partially offset by a decrease in consumer loans of $35.3 million. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to rising market interest rates and the discontinuation of this product offering as of June 30, 2023. This portfolio is expected to continue to decline as resources are allocated and production efforts are focused on more profitable commercial products. Excluding the $34.9 million decrease in indirect automobile loans, total loans increased $95.4 million, or 9.1%.
• The allowance for credit losses (ACL) was $9.7 million at December 31, 2023 and $12.8 million at December 31, 2022. As a result, the ACL to total loans was 0.87% at December 31, 2023 compared to 1.22% at December 31, 2022. The change in the ACL was primarily due to the Company's aforementioned adoption of CECL. At adoption, the Company decreased its ACL by $3.4 million. Contributing to the change in ACL was a prior year charge-off of $2.7 million and qualitative factors that significantly impacted the incurred loss model driven by historical activity compared to the adopted CECL methodology that is centered around CECL activity using a forecast approach. During the current year, the Company recorded a recovery of credit losses of $502,000 due to improvements in qualitative factors coupled with a decrease in historical loss rates
• Net recoveries for the three months ended December 31, 2023 were $6,000. Net charge-offs for the three months ended December 31, 2022 were $35,000, or 0.01% of average loans on an annualized basis. Net recoveries for the year ended December 31, 2023 were $557,000 primarily due to recoveries totaling $750,000 related to the prior year $2.7 million charged-off commercial and industrial loan. Net charge-offs for the year ended December 31, 2022 were $2.5 million.
• Nonperforming loans, which includes nonaccrual loans and accruing loans past due 90 days or more, were $2.2 million at December 31, 2023 compared to $5.8 million at December 31, 2022. The decrease of $3.6 million was due to ten loans totaling $1.7 million transferred from nonaccrual to accrual status during the current period and a $1.4 million partial repayment of a nonaccrual commercial real estate loan. Nonperforming loans to total loans ratio was 0.20% at December 31, 2023 compared to 0.55% at December 31, 2022.

Other

• Intangible assets decreased $2.6 million, or 74.0%, to $958,000 at December 31, 2023 compared to $3.5 million at December 31, 2022 due to $1.8 million of amortization expense recognized during the period and a write-off of the $789,000 remaining balance of EU’s customer list as a result of the sale of the subsidiary.
• Accrued interest and other assets increased $1.4 million or 6.6%, to $22.5 million at December 31, 2023, compared to $26.7 million at December 31, 2022 due primarily to a $1.8 million adjustment related to a fixed-to-floating interest rate swap derivative.

Total liabilities increased $17.5 million, or 1.3%, to $1.32 billion at December 31, 2023 compared to $1.30 billion at December 31, 2022.

Deposits

• Total deposits decreased $1.3 million to $1.267 billion as of December 31, 2023 compared to $1.269 billion at December 31, 2022. Non interest-bearing demand deposits decreased $112.7 million, savings deposits decreased $53.3 million, and money market deposits decreased $8.1 million, while interest-bearing demand deposits increased $51.2 million and time deposits increased $121.5 million. The increase in interest-bearing demand deposits was primarily the result of higher interest rates attracting more customers and additional deposits from existing customers while higher time deposits resulted from the offering of a higher-rate certificate of deposit product and the addition of $29.0 million of brokered certificates of deposit. The brokered certificates of deposits all mature within three months and were utilized to fund the purchase of floating rate collateralized loan obligation securities. FDIC insured deposits totaled approximately 59.4% of total deposits while an additional 16.0% of deposits were collateralized with investment securities.

Borrowed Funds

• Other borrowings increased $20.0 million, or 136.6%, to $34.7 million at December 31, 2023, compared to $14.6 million at December 31, 2022. During the second quarter, the Bank entered into $20.0 million of FHLB advances for a term of 24 months at 4.92%, the proceeds of which were utilized to match fund originations within the Bank’s commercial and industrial loan portfolio.
• Short-term borrowings decreased $8.1 million, or 100.0%, as there were no short-term borrowings at December 31, 2023, compared to $8.1 million at December 31, 2022. At December 31, 2022, short-term borrowings were comprised entirely of securities sold under agreements to repurchase. These accounts were transitioned into other deposit products and account for a portion of the interest-bearing demand deposit increase.

Accrued Interest Payable and Other Liabilities

• Accrued interest payable and other liabilities increased $6.8 million, or 89.7%, to $14.4 million at December 31, 2023, compared to $7.6 million at December 31, 2022 primarily due to a $3.4 million increase in accrued taxes payable, a $1.8 million increase related to a fixed-to-floating interest rate swap derivative and a $1.5 million increase in accrued interest payable on deposit accounts.

Stockholders’ Equity

Stockholders’ equity increased $29.7 million, or 27.0%, to $139.8 million at December 31, 2023, compared to $110.2 million at December 31, 2022. Key factors positively impacting stockholders’ equity included $22.6 million of net income for the current period, a $9.5 million increase in accumulated other comprehensive income and a $2.1 million positive adjustment, net of tax, due to the Company’s January 1, 2023 adoption of CECL as described above. These factors were partially offset by the payment of $5.1 million in dividends since December 31, 2022 and activity under share repurchase programs. On April 21, 2022, a $10.0 million repurchase program was authorized, with the Company repurchasing 74,656 shares at an average price of $22.38 per share since the inception of the program. In total, the Company repurchased $274,000 of common stock since December 31, 2022. The program expired on May 1, 2023.

Book value per share

Book value per common share was $27.31 at December 31, 2023 compared to $21.60 at December 31, 2022, an increase of $5.71.

Tangible book value per common share (Non-GAAP) was $25.23 at December 31, 2023, compared to $19.00 at December 31, 2022, an increase of $6.23.

Refer to “Explanation of Use of Non-GAAP Financial Measures” at the end of this Press Release.

About CB Financial Services, Inc.

CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services.

For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.

Statement About Forward-Looking Statements

Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

CB FINANCIAL SERVICES, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except share and per share data) (Unaudited)
Selected Financial Condition Data	12/31/23				9/30/23				6/30/23				3/31/23				12/31/22
Assets
Cash and Due From Banks	$	69,993			$	52,597			$	78,093			$	103,545			$	103,700
Securities		207,095				172,904				181,427				189,025				190,058
Loans
Real Estate:
Residential		347,808				346,485				338,493				332,840				330,725
Commercial		467,154				466,910				458,614				452,770				436,805
Construction		43,116				41,874				44,523				39,522				44,923
Commercial and Industrial		111,278				100,873				102,266				79,501				70,044
Consumer		111,643				122,516				134,788				146,081				146,927
Other		29,397				23,856				22,470				21,151				20,449
Total Loans		1,110,396				1,102,514				1,101,154				1,071,865				1,049,873
Allowance for Credit Losses		(9,707	)			(10,848	)			(10,666	)			(10,270	)			(12,819	)
Loans, Net		1,100,689				1,091,666				1,090,488				1,061,595				1,037,054
Premises and Equipment, Net		19,704				18,524				18,582				17,732				17,844
Bank-Owned Life Insurance		25,378				25,227				25,082				24,943				25,893
Goodwill		9,732				9,732				9,732				9,732				9,732
Intangible Assets, Net		958				2,177				2,622				3,068				3,513
Accrued Interest Receivable and Other Assets		22,542				26,665				26,707				21,068				21,144
Total Assets	$	1,456,091			$	1,399,492			$	1,432,733			$	1,430,708			$	1,408,938
Liabilities
Deposits
Noninterest-Bearing Demand Accounts	$	277,747			$	305,145			$	316,098			$	350,911			$	390,405
Interest-Bearing Demand Accounts		362,994				357,381				374,654				359,051				311,825
Money Market Accounts		201,074				189,187				185,814				206,174				209,125
Savings Accounts		194,703				207,148				217,267				234,935				248,022
Time Deposits		230,641				177,428				169,482				130,449				109,126
Total Deposits		1,267,159				1,236,289				1,263,315				1,281,520				1,268,503
Short-Term Borrowings		—				—				—				121				8,060
Other Borrowings		34,678				34,668				34,658				14,648				14,638
Accrued Interest Payable and Other Liabilities		14,420				13,689				18,171				17,224				7,582
Total Liabilities		1,316,257				1,284,646				1,316,144				1,313,513				1,298,783
Stockholders’ Equity		139,834				114,846				116,589				117,195				110,155
Total Liabilities and Stockholders’ Equity	$	1,456,091			$	1,399,492			$	1,432,733			$	1,430,708			$	1,408,938

(Dollars in thousands, except share and per share data) (Unaudited)
	Three Months Ended															Year Ended
Selected Operating Data	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Interest and Dividend Income:
Loans, Including Fees	$	14,804		$	14,049		$	13,426		$	12,371		$	11,835		$	54,650		$	41,933
Securities:
Taxable		1,164			940			950			964			974			4,017			3,852
Tax-Exempt		33			41			42			41			40			157			213
Dividends		32			25			25			24			28			106			91
Other Interest and Dividend Income		872			819			760			844			978			3,295			1,627
Total Interest and Dividend Income		16,905			15,874			15,203			14,244			13,855			62,225			47,716
Interest Expense:
Deposits		5,336			4,750			3,842			2,504			1,811			16,433			4,025
Short-Term Borrowings		26			—			3			2			7			32			63
Other Borrowings		407			407			238			155			171			1,207			693
Total Interest Expense		5,769			5,157			4,083			2,661			1,989			17,672			4,781
Net Interest and Dividend Income		11,136			10,717			11,120			11,583			11,866			44,553			42,935
(Recovery) Provision for Credit Losses - Loans		(1,147	)		291			492			80			—			(284	)		3,784
(Recovery) Provision for Credit Losses - Unfunded Commitments		(273	)		115			(60	)		—			—			(218	)		—
Net Interest and Dividend Income After (Recovery) Provision for Credit Losses		12,556			10,311			10,688			11,503			11,866			45,055			39,151
Noninterest Income:
Service Fees		460			466			448			445			530			1,819			2,160
Insurance Commissions		969			1,436			1,511			1,922			1,399			5,839			5,934
Other Commissions		60			94			224			144			157			521			669
Net Gain (Loss) on Sales of Loans		2			—			(5	)		2			—			—			—
Net (Loss) Gain on Securities		(9,830	)		(37	)		(100	)		(232	)		83			(10,199	)		(168	)
Net Gain on Purchased Tax Credits		7			7			7			7			14			29			57
Gain on Sale of Subsidiary		24,578			—			—			—			—			24,578			—
Net Gain on Disposal of Fixed Assets		—			—			—			11			—			11			431
Income from Bank-Owned Life Insurance		151			145			139			140			143			576			561
Net Gain on Bank-Owned Life Insurance Claims		—			—			1			302			—			303			—
Other Income		121			301			44			69			34			535			176
Total Noninterest Income		16,518			2,412			2,269			2,810			2,360			24,012			9,820
Noninterest Expense:
Salaries and Employee Benefits		6,224			5,369			5,231			5,079			4,625			21,903			18,469
Occupancy		810			698			789			701			817			2,998			3,047
Equipment		298			265			283			218			178			1,064			739
Data Processing		726			714			718			857			681			3,014			2,152
FDIC Assessment		189			189			224			152			154			754			638
PA Shares Tax		217			217			195			260			258			889			979
Contracted Services		299			286			434			147			405			1,166			1,628
Legal and Professional Fees		434			320			246			182			362			1,182			1,237
Advertising		158			114			75			79			165			426			527
Other Real Estate Owned (Income)		(36	)		(8	)		(35	)		(37	)		(38	)		(115	)		(151	)
Amortization of Intangible Assets		430			445			446			445			446			1,766			1,782
Other		1,016			878			895			945			945			3,735			3,844
Total Noninterest Expense		10,765			9,487			9,501			9,028			8,998			38,782			34,891
Income Before Income Tax Expense		18,309			3,236			3,456			5,285			5,228			30,285			14,080
Income Tax Expense		5,343			564			699			1,129			1,076			7,735			2,833
Net Income	$	12,966		$	2,672		$	2,757		$	4,156		$	4,152		$	22,550		$	11,247

	Three Months Ended										Year Ended
Per Common Share Data	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22		12/31/23		12/31/22
Dividends Per Common Share	$	0.25	$	0.25	$	0.25	$	0.25	$	0.24	$	1.00	$	0.96
Earnings Per Common Share - Basic		2.53		0.52		0.54		0.81		0.81		4.41		2.19
Earnings Per Common Share - Diluted		2.52		0.52		0.54		0.81		0.81		4.40		2.18
Weighted Average Common Shares Outstanding - Basic		5,119,184		5,115,026		5,111,987		5,109,597		5,095,237		5,113,978		5,136,670
Weighted Average Common Shares Outstanding - Diluted		5,135,997		5,126,546		5,116,134		5,115,705		5,104,254		5,122,916		5,149,312

	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22
Common Shares Outstanding		5,119,543			5,120,678			5,111,678			5,116,830			5,100,189
Book Value Per Common Share	$	27.31		$	22.43		$	22.81		$	22.90		$	21.60
Tangible Book Value per Common Share (1)		25.23			20.10			20.39			20.40			19.00
Stockholders’ Equity to Assets		9.6	%		8.2	%		8.1	%		8.2	%		7.8	%
Tangible Common Equity to Tangible Assets (1)		8.9			7.4			7.3			7.4			6.9

	Three Months Ended										Year Ended
Selected Financial Ratios (2)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22		12/31/23		12/31/22
Return on Average Assets	3.62	%	0.75	%	0.79	%	1.21	%	1.16	%	1.60	%	0.80	%
Return on Average Equity	44.99		9.03		9.38		14.69		15.26		19.42		9.56
Average Interest-Earning Assets to Average Interest-Bearing Liabilities	138.74		139.65		142.28		147.38		148.93		141.87		148.06
Average Equity to Average Assets	8.04		8.32		8.38		8.27		7.63		8.25		8.36
Net Interest Rate Spread	2.56		2.54		2.78		3.13		3.18		2.73		3.07
Net Interest Rate Spread (FTE) (1)	2.57		2.55		2.79		3.14		3.19		2.74		3.08
Net Interest Margin	3.19		3.13		3.29		3.51		3.46		3.28		3.24
Net Interest Margin (FTE) (1)	3.21		3.14		3.30		3.52		3.47		3.29		3.25
Net Charge-Offs (Recoveries) to Average Loans	—		0.04		0.04		(0.29	)	0.01		(0.05	)	0.25
Efficiency Ratio	38.93		72.26		70.96		62.72		63.25		56.56		66.14

Asset Quality Ratios	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22
Allowance for Credit Losses to Total Loans	0.87	%	0.98	%	0.97	%	0.96	%	1.22	%
Allowance for Credit Losses to Nonperforming Loans (3)	433.35		330.13		260.46		189.73		221.06
Allowance for Credit Losses to Noncurrent Loans (4)	433.35		330.13		260.46		189.73		320.64
Delinquent and Nonaccrual Loans to Total Loans (4) (5)	0.62		0.73		0.68		1.02		0.81
Nonperforming Loans to Total Loans (3)	0.20		0.30		0.37		0.51		0.55
Noncurrent Loans to Total Loans (4)	0.20		0.30		0.37		0.51		0.38
Nonperforming Assets to Total Assets (6)	0.16		0.23		0.30		0.40		0.41

Capital Ratios (7)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22
Common Equity Tier 1 Capital (to Risk Weighted Assets)	13.64	%	12.77	%	12.54	%	12.60	%	12.33	%
Tier 1 Capital (to Risk Weighted Assets)	13.64		12.77		12.54		12.60		12.33
Total Capital (to Risk Weighted Assets)	14.61		13.90		13.64		13.69		13.58
Tier 1 Leverage (to Adjusted Total Assets)	10.19		9.37		9.26		9.24		8.66

(1)	Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.
(2)	Interim period ratios are calculated on an annualized basis.
(3)	Nonperforming loans consist of all nonaccrual loans and accruing loans that are 90 days or more past due.
(4)	Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due.
(5)	Delinquent loans consist of accruing loans that are 30 days or more past due.
(6)	Nonperforming assets consist of nonperforming loans and other real estate owned.
(7)	Capital ratios are for Community Bank only.
Certain items previously reported may have been reclassified to conform with the current reporting period’s format.

AVERAGE BALANCES AND YIELDS
	Three Months Ended
	December 31, 2023							September 30, 2023							June 30, 2023							March 31, 2023							December 31, 2022
	Average Balance		Interest and Dividends		Yield / Cost(1)			Average Balance		Interest and Dividends		Yield / Cost(1)			Average Balance		Interest and Dividends		Yield / Cost(1)			Average Balance		Interest and Dividends		Yield / Cost(1)			Average Balance		Interest and Dividends		Yield / Cost(1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (2)	$	1,098,284	$	14,840	5.36	%		$	1,088,691	$	14,081	5.13	%		$	1,079,399	$	13,450	5.00	%		$	1,040,570	$	12,391	4.83	%		$	1,034,714	$	11,853	4.54	%
Debt Securities
Taxable		206,702		1,164	2.25				204,848		940	1.84				209,292		950	1.82				213,158		964	1.81				216,915		974	1.80
Exempt From Federal Tax		4,833		42	3.48				6,013		52	3.46				6,180		53	3.43				6,270		52	3.32				6,277		51	3.25
Equity Securities		2,693		32	4.75				2,693		25	3.71				2,693		25	3.71				2,693		24	3.56				2,693		28	4.16
Interest-Earning Deposits at Banks		68,164		808	4.74				52,466		750	5.72				53,582		721	5.38				73,221		805	4.40				98,110		939	3.83
Other Interest-Earning Assets		3,387		64	7.50				3,292		69	8.32				2,783		39	5.62				2,633		39	6.01				2,875		39	5.38
Total Interest-Earning Assets		1,384,063		16,950	4.86				1,358,003		15,917	4.65				1,353,929		15,238	4.51				1,338,545		14,275	4.33				1,361,584		13,884	4.05
Noninterest-Earning Assets		37,750							52,885							52,812							49,703							52,716
Total Assets	$	1,421,813						$	1,410,888						$	1,406,741						$	1,388,248						$	1,414,300
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts	$	362,018	$	1,965	2.15	%		$	363,997	$	2,003	2.18	%		$	354,497	$	1,582	1.79	%		$	335,327	$	1,191	1.44	%		$	315,352	$	810	1.02	%
Savings Accounts		200,737		57	0.11				212,909		54	0.10				225,175		53	0.09				242,298		37	0.06				249,948		29	0.05
Money Market Accounts		205,060		1,441	2.79				187,012		1,141	2.42				194,565		1,033	2.13				213,443		939	1.78				206,192		604	1.16
Time Deposits		193,188		1,873	3.85				173,832		1,552	3.54				155,867		1,174	3.02				101,147		337	1.35				116,172		368	1.26
Total Interest-Bearing Deposits		961,003		5,336	2.20				937,750		4,750	2.01				930,104		3,842	1.66				892,215		2,504	1.14				887,664		1,811	0.81
Short-Term Borrowings		1,902		26	5.42				—		—	—				480		3	2.51				1,344		2	0.60				8,985		7	0.31
Other Borrowings		34,673		407	4.66				34,662		407	4.66				21,026		238	4.54				14,641		155	4.29				17,598		171	3.86
Total Interest-Bearing Liabilities		997,578		5,769	2.29				972,412		5,157	2.10				951,610		4,083	1.72				908,200		2,661	1.19				914,247		1,989	0.86
Noninterest-Bearing Demand Deposits		305,789							312,016							326,262							362,343							391,300
Total Funding and Cost of Funds		1,303,367			1.76				1,284,428			1.59				1,277,872			1.28				1,270,543			0.85				1,305,547			0.60
Other Liabilities		4,119							9,025							10,920							2,953							788
Total Liabilities		1,307,486							1,293,453							1,288,792							1,273,496							1,306,335
Stockholders' Equity		114,327							117,435							117,949							114,752							107,965
Total Liabilities and Stockholders' Equity	$	1,421,813						$	1,410,888						$	1,406,741						$	1,388,248						$	1,414,300
Net Interest Income (FTE) (Non-GAAP) (3)			$	11,181						$	10,760						$	11,155						$	11,614						$	11,895
Net Interest-Earning Assets (4)		386,485							385,591							402,319							430,345							447,337
Net Interest Rate Spread (FTE) (Non-GAAP) (3) (5)					2.57	%						2.55	%						2.79	%						3.14	%						3.19	%
Net Interest Margin (FTE) (Non-GAAP) (3)(6)					3.21							3.14							3.30							3.52							3.47

(1)	Annualized based on three months ended results.
(2)	Net of the allowance for credit losses and includes nonaccrual loans with a zero yield.
(3)	Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.
(4)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6)	Net interest margin represents annualized net interest income divided by average total interest-earning assets.

AVERAGE BALANCES AND YIELDS
	Year Ended
	December 31, 2023									December 31, 2022
	Average Balance			Interest and Dividends			Yield / Cost			Average Balance			Interest and Dividends			Yield / Cost
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (1)	$	1,076,928		$	54,763		5.09	%		$	1,019,124		$	42,010		4.12	%
Debt Securities
Taxable		208,472			4,017		1.93				220,818			3,852		1.74
Exempt From Federal Tax		5,821			199		3.42				8,383			270		3.22
Marketable Equity Securities		2,693			106		3.94				2,693			91		3.38
Interest-Earning Deposits at Banks		61,818			3,084		4.99				71,283			1,473		2.07
Other Interest-Earning Assets		3,027			211		6.97				3,092			154		4.98
Total Interest-Earning Assets		1,358,759			62,380		4.59				1,325,393			47,850		3.61
Noninterest-Earning Assets		48,268									81,035
Total Assets	$	1,407,027								$	1,406,428
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts	$	354,060		$	6,741		1.90	%		$	282,850		$	1,362		0.48	%
Savings Accounts		220,146			202		0.09				248,334			88		0.04
Money Market Accounts		199,962			4,554		2.28				194,223			976		0.50
Time Deposits		156,310			4,936		3.16				124,817			1,599		1.28
Total Interest-Bearing Deposits		930,478			16,433		1.77				850,224			4,025		0.47
Short-Term Borrowings		931			32		3.44				27,360			63		0.23
Other Borrowings		26,328			1,207		4.58				17,609			693		3.94
Total Interest-Bearing Liabilities		957,737			17,672		1.85				895,193			4,781		0.53
Noninterest-Bearing Demand Deposits		326,408									389,553
Total Funding and Cost of Funds		1,284,145					1.38				1,284,746					0.37
Other Liabilities		6,764									4,072
Total Liabilities		1,290,909									1,288,818
Stockholders' Equity		116,118									117,610
Total Liabilities and Stockholders' Equity	$	1,407,027								$	1,406,428
Net Interest Income (FTE) (Non-GAAP) (2)					44,708									43,069
Net Interest-Earning Assets (3)		401,022									430,200
Net Interest Rate Spread (FTE) (Non-GAAP) (2)(4)							2.74	%								3.08	%
Net Interest Margin (FTE) (Non-GAAP) (2)(5)							3.29									3.25

(1)	Net of the allowance for credit losses and includes nonaccrual loans with a zero yield.
(2)	Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.
(3)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)	Net interest margin represents annualized net interest income divided by average total interest-earning assets.

Explanation of Use of Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company’s business and in analyzing the Company’s operating results on the same basis as that applied by management. Although we believe that these Non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with similar Non-GAAP measures which may be presented by other companies. Where Non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein.

	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22
(Dollars in thousands, except share and per share data) (Unaudited)
Total Assets (GAAP)	$	1,456,091		$	1,399,492		$	1,432,733		$	1,430,708		$	1,408,938
Goodwill and Intangible Assets, Net		(10,690	)		(11,909	)		(12,354	)		(12,800	)		(13,245	)
Tangible Assets (Non-GAAP) (Numerator)	$	1,445,401		$	1,387,583		$	1,420,379		$	1,417,908		$	1,395,693
Stockholders' Equity (GAAP)	$	139,834		$	114,846		$	116,589		$	117,195		$	110,155
Goodwill and Intangible Assets, Net		(10,690	)		(11,909	)		(12,354	)		(12,800	)		(13,245	)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)	$	129,144		$	102,937		$	104,235		$	104,395		$	96,910
Stockholders’ Equity to Assets (GAAP)		9.6	%		8.2	%		8.1	%		8.2	%		7.8	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		8.9	%		7.4	%		7.3	%		7.4	%		6.9	%
Common Shares Outstanding (Denominator)		5,119,543			5,120,678			5,111,678			5,116,830			5,100,189
Book Value per Common Share (GAAP)	$	27.31		$	22.43		$	22.81		$	22.90		$	21.60
Tangible Book Value per Common Share (Non-GAAP)	$	25.23		$	20.10		$	20.39		$	20.40		$	19.00

	Three Months Ended															Year Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
(Dollars in thousands) (Unaudited)
Net Income (GAAP)	$	12,966		$	2,672		$	2,757		$	4,156		$	4,152		$	22,550		$	11,247
Amortization of Intangible Assets, Net		430			445			446			445			446			1,766			1,782
Adjusted Net Income (Non-GAAP) (Numerator)	$	13,396		$	3,117		$	3,203		$	4,601		$	4,598		$	24,316		$	13,029
Annualization Factor		3.97			3.97			4.01			4.06			3.97			1.00			1.00
Average Stockholders' Equity (GAAP)	$	114,327		$	117,435		$	117,949		$	114,752		$	107,965		$	116,118		$	117,610
Average Goodwill and Intangible Assets, Net		(11,829	)		(12,185	)		(12,626	)		(13,080	)		(13,534	)		(12,426	)		(14,193	)
Average Tangible Common Equity (Non-GAAP) (Denominator)	$	102,498		$	105,250		$	105,323		$	101,672		$	94,431		$	103,692		$	103,417
Return on Average Equity (GAAP)		44.99	%		9.03	%		9.38	%		14.69	%		15.26	%		19.42	%		9.56	%
Return on Average Tangible Common Equity (Non-GAAP)		51.85	%		11.75	%		12.20	%		18.35	%		19.32	%		23.45	%		12.60	%

	Three Months Ended															Year Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)	$	16,905		$	15,874		$	15,203		$	14,244		$	13,855		$	62,225		$	47,716
Adjustment to FTE Basis		45			43			35			31			29			155			134
Interest Income (FTE) (Non-GAAP)		16,950			15,917			15,238			14,275			13,884			62,380			47,850
Interest Expense (GAAP)		5,769			5,157			4,083			2,661			1,989			17,672			4,781
Net Interest Income (FTE) (Non-GAAP)	$	11,181		$	10,760		$	11,155		$	11,614		$	11,895		$	44,708		$	43,069
Net Interest Rate Spread (GAAP)		2.56	%		2.54	%		2.78	%		3.13	%		3.18	%		2.73	%		3.07	%
Adjustment to FTE Basis		0.01			0.01			0.01			0.01			0.01			0.01			0.01
Net Interest Rate Spread (FTE) (Non-GAAP)		2.57	%		2.55	%		2.79	%		3.14	%		3.19	%		2.74	%		3.08	%
Net Interest Margin (GAAP)		3.19	%		3.13	%		3.29	%		3.51	%		3.46	%		3.28	%		3.24	%
Adjustment to FTE Basis		0.02			0.01			0.01			0.01			0.01			0.01			0.01
Net Interest Margin (FTE) (Non-GAAP)		3.21	%		3.14	%		3.30	%		3.52	%		3.47	%		3.29	%		3.25	%

	Three Months Ended															Year Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
(Dollars in thousands) (Unaudited)
Net Income Before Income Tax Expense (GAAP)	$	18,309		$	3,236		$	3,456		$	5,285		$	5,228		$	30,285		$	14,080
(Recovery) Provision for Credit Losses		(1,420	)		406			432			80			—			(502	)		3,784
Adjustments
Loss (Gain) on Securities		9,830			37			100			232			(83	)		10,199			168
Gain on Sale of Subsidiary		(24,578	)		—			—			—			—			(24,578	)		—
Adjusted PPNR (Non-GAAP) (Numerator)	$	2,141		$	3,679		$	3,988		$	5,597		$	5,145		$	15,404		$	18,032
Annualization Factor		3.97			3.97			4.01			4.06			3.97			1.00			1.00
Average Assets (Denominator)	$	1,421,813		$	1,410,888		$	1,406,741		$	1,388,248		$	1,414,300		$	1,407,027		$	1,406,428
Adjusted PPNR Return on Average Assets (Non-GAAP)		0.60	%		1.04	%		1.14	%		1.64	%		1.44	%		1.09	%		1.28	%

	Three Months Ended															Year Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
(Dollars in thousands, except share and per share data) (Unaudited)
Net Income (GAAP)	$	12,966		$	2,672		$	2,757		$	4,156		$	4,152		$	22,550		$	11,247
Adjustments
Loss (Gain) on Securities		9,830			37			100			232			(83	)		10,199			168
Gain on Sale of Subsidiary		(24,578	)		—			—			—			—			(24,578	)		—
Gain on Disposal of Fixed Assets		—			—			—			(11	)		—			(11	)		(431	)
Gain on Bank-Owned Life Insurance Claims		—			—			(1	)		(302	)		—			(303	)		—
Tax effect		4,843			(8	)		(21	)		(46	)		17			4,767			55
Adjusted Net Income (Non-GAAP)	$	3,061		$	2,701		$	2,835		$	4,029		$	4,086		$	12,624		$	11,039
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding		5,135,997			5,126,546			5,116,134			5,115,705			5,104,254			5,122,916			5,149,312
Earnings per Common Share - Diluted (GAAP)	$	2.52		$	0.52		$	0.54		$	0.81		$	0.81		$	4.40		$	2.18
Adjusted Earnings per Common Share - Diluted (Non-GAAP)	$	0.60		$	0.53		$	0.55		$	0.79		$	0.80		$	2.47		$	2.15
Net Income (GAAP) (Numerator)	$	12,966		$	2,672		$	2,757		$	4,156		$	4,152		$	22,550		$	11,247
Annualization Factor		3.97			3.97			4.01			4.06			3.97			1.00			1.00
Average Assets (Denominator)		1,421,813			1,410,888			1,406,741			1,388,248			1,414,300			1,407,027			1,406,428
Return on Average Assets (GAAP)		3.62	%		0.75	%		0.79	%		1.21	%		1.16	%		1.60	%		0.80	%
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,061		$	2,701		$	2,835		$	4,029		$	4,086		$	12,624		$	11,039
Annualization Factor		3.97			3.97			4.01			4.06			3.97			1.00			1.00
Average Assets (Denominator)		1,421,813			1,410,888			1,406,741			1,388,248			1,414,300			1,407,027			1,406,428
Adjusted Return on Average Assets (Non-GAAP)		0.85	%		0.76	%		0.81	%		1.18	%		1.15	%		0.90	%		0.78	%

	Three Months Ended															Year Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
(Dollars in thousands) (Unaudited)
Net Income (GAAP) (Numerator)	$	12,966		$	2,672		$	2,757		$	4,156		$	4,152		$	22,550		$	11,247
Annualization Factor		3.97			3.97			4.01			4.06			3.97			1.00			1.00
Average Equity (GAAP) (Denominator)		114,327			117,435			117,949			114,752			107,965			116,118			117,610
Return on Average Equity (GAAP)		44.99	%		9.03	%		9.38	%		14.69	%		15.26	%		19.42	%		9.56	%
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,061		$	2,701		$	2,835		$	4,029		$	4,086		$	12,624		$	11,039
Annualization Factor		3.97			3.97			4.01			4.06			3.97			1.00			1.00
Average Equity (GAAP) (Denominator)		114,327			117,435			117,949			114,752			107,965			116,118			117,610
Adjusted Return on Average Equity (Non-GAAP)		10.62	%		9.12	%		9.64	%		14.24	%		15.01	%		10.87	%		9.39	%

 

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