EX-99.1

EX-99.1 2 d445728dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Civista Bancshares, Inc. Announces First Quarter 2023 Financial Results

Sandusky, Ohio, April 28, 2023 /PRNewswire/ – Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) announced its unaudited financial results for the three months ending March 31, 2023.

First quarter highlights

•

Net income of $12.9 million, or $0.82 per diluted share, for the first quarter of 2023, compared to $8.5 million, or $0.57 per diluted share, for the first quarter of 2022.

•

Low cost of deposits of 49 basis points and total funding costs of 114 basis points for the quarter.

•

Based on the March 31, 2023 market close share price of $16.88, the $0.14 first quarter dividend is equivalent to an annualized yield of 3.32% and a dividend payout ratio of 17.07%.

•

On January 1, 2023, Civista adopted ASC 326 (“CECL”) which resulted in an adjustment to the reserve of approximately $4.3 million and an additional $3.4 million reserve for unfunded commitments.

“With all the turmoil in the industry, strong core deposit franchises like Civista, matter again. Our deposit base is well diversified, with no concentrations and approximately 83 percent of our deposits are insured. It’s these core deposits that drive our better than peer net interest margin and strong profitability. Our net interest margin for the quarter was 4.11% and our ROAA was 1.47%.” said Dennis G. Shaffer, CEO and President of Civista.

Results of Operations:

For the three-month period ended March 31, 2023 and 2022

Net interest income increased $9.7 million, or 42.2%, for the first quarter of 2023 compared to the same period of 2022, due to an increase in interest income partially offset by an increase in interest expense. Noninterest income also increased due primarily to the addition of lease revenue and residual income related to the acquisition of VFG.

Net interest margin increased 73 basis points to 4.11% for the first quarter of 2023, compared to 3.38% for the same period a year ago.

Interest income increased by $16.9 million, or 68.4%, for the first quarter of 2023, compared to the same period last year. The increase in interest income was driven by an increase of $397.3 million in average earning assets and to a 159-basis point increase in yield on average earning assets. The increase in average earning assets and the increase in yield contributed to the increase in interest income by $7.4 million and $9.5 million, respectively.

Interest expense increased $7.2 million, or 415.5%, for the first quarter of 2023, compared to the same period last year. The average rate paid on interest-bearing liabilities increased 126 basis points, while average interest-bearing liabilities increased $379.3 million. Interest expense increased $4.4 million due to the increase in average liabilities and increased $2.8 million due to the increase in cost of liabilities.

Average Balance Analysis

(Unaudited - Dollars in thousands)


	Three Months Ended March 31,
	2023								2022
	Average balance			Interest		Yield/ rate*			Average balance			Interest		Yield/ rate*
Assets:
Interest-earning assets:
Loans **	$	2,548,518		$	36,398		5.79	%	$	2,006,984		$	21,038		4.25	%
Taxable securities		374,851			2,834		2.77	%		314,493			1,720		2.20	%
Non-taxable securities		281,136			2,262		3.81	%		260,866			1,789		3.67	%
Interest-bearing deposits in other banks		7,397			45		2.47	%		232,246			119		0.21	%

Total interest-earning assets	$	3,211,902			41,539		5.22	%	$	2,814,589			24,666		3.63	%

Noninterest-earning assets:
Cash and due from financial institutions		54,136								223,353
Premises and equipment, net		62,776								22,320
Accrued interest receivable		10,655								7,157
Intangible assets		135,554								84,374
Bank owned life insurance		53,630								46,726
Other assets		61,292								37,346
Less allowance for loan losses		(30,454	)							(26,775	)

Total Assets	$	3,559,491							$	3,209,090

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand and savings	$	1,384,070		$	1,084		0.32	%	$	1,383,372		$	234		0.07	%
Time		308,400			2,148		2.82	%		240,612			471		0.79	%
Short-term FHLB advances		372,226			4,258		4.64	%		—			—		0.00	%
Long-term FHLB advances		3,442			19		2.24	%		75,000			190		1.03	%
Other borrowings		14,817			257		7.04	%		358			—		0.00	%
Subordinated debentures		103,814			1,169		4.57	%		103,713			836		3.27	%
Repurchase agreements		20,823			3		0.06	%		25,228			3		0.05	%

Total interest-bearing liabilities	$	2,207,592			8,938		1.64	%	$	1,828,283			1,734		0.38	%

Noninterest-bearing deposits		961,886								933,654
Other liabilities		48,854								99,851
Shareholders’ equity		341,159								347,302

Total Liabilities and Shareholders’ Equity	$	3,559,491							$	3,209,090

Net interest income and interest rate spread				$	32,601		3.58	%				$	22,932		3.25	%
Net interest margin							4.11	%							3.38	%

*	Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $601 thousand and $467 thousand for the periods ended March 31, 2023 and 2022, respectively.

**	Average balance includes nonaccrual loans

***

Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $63.2 million in 2023 and by unrealized gains of $7.6 million in 2022. These adjustments were also made when calculating the yield on earning assets and the margin.

On January 1, 2023, Civista adopted CECL, which resulted in an adjustment to the reserve of approximately $4.3 million and an additional $3.4 million reserve for unfunded commitments. Provision for credit losses for the first quarter of 2023 was $620 thousand compared to $300 thousand for the first quarter of 2022. The reserve ratio increased to 1.33% as of March 31, 2023 from 1.12% at December 31, 2022. Provision for unfunded commitments for the first quarter of 2023 was $201 thousand. There was no provision for unfunded commitments in the first quarter of 2022..

For the first quarter of 2023, noninterest income totaled $11.1 million, a decrease of $3.4 million, or 44.8%, compared to the prior year’s first quarter.

Noninterest income

(unaudited - dollars in thousands)


	Three months ended March 31,
	2023			2022		$ change			% change
Service charges	$	1,773		$	1,579	$	194			12.3	%
Net loss on sale of securities		—			—		—			0.0	%
Net gain (loss) on equity securities		(68	)		50		(118	)		-236.0	%
Net gain on sale of loans		631			936		(305	)		-32.6	%
ATM/Interchange fees		1,353			1,241		112			9.0	%
Wealth management fees		1,193			1,277		(84	)		-6.6	%
Bank owned life insurance		253			244		9			3.7	%
Lease revenue and residual income		2,046			—		2,046			0.0	%
Tax refund processing fees		1,900			1,900		—			0.0	%
Swap fees		61			—		61			0.0	%
Other		1,926			416		1,510			363.0	%

Total noninterest income	$	11,068		$	7,643	$	3,425			44.8	%

Service charges increased due to a $105 thousand increase in service charges on deposit accounts and a $89 thousand increase in overdraft fees.

Net gain on sale of loans decreased primarily due to a decrease in volume of loans sold. During the three-months ended March 31, 2023, 63 loans were sold, totaling $9.2 million. During the three-months ended March 31, 2022, 208 loans were sold, totaling $38.2 million.

Lease revenue and residual income increased $2.0 million due to the acquisition of VFG.

Other income increased as result of a $1.5 million fee collected associated with the renewal of the company’s contract with MasterCard.

For the first quarter of 2023, noninterest expense totaled $27.6 million, an increase of $7.4 million, or 36.4%, compared to the prior year’s first quarter.

Noninterest expense

(unaudited - dollars in thousands)


	Three months ended March 31,
	2023		2022		$ change			% change
Compensation expense	$	15,105	$	12,223	$	2,882			23.6	%
Net occupancy and equipment		4,120		1,645		2,475			150.5	%
Contracted data processing		520		620		(100	)		-16.1	%
Taxes and assessments		774		794		(20	)		-2.5	%
Professional services		1,555		1,049		506			48.2	%
Amortization of intangible assets		398		217		181			83.4	%
ATM/Interchange expense		580		513		67			13.1	%
Marketing		505		317		188			59.3	%
Software maintenance expense		878		708		170			24.0	%
Other		3,198		2,172		1,026			47.2	%

Total noninterest expense	$	27,633	$	20,258	$	7,375			36.4	%

Compensation expense increased primarily due to the acquisition of Comunibanc Corp and VFG. The quarter-to-date average full time equivalent (FTE) employees were 532.4 at March 31, 2023, an increase of 88.9 FTEs over the same period in 2022.

The increase in occupancy and equipment expense is due to increases related to the acquisition of Comunibanc Corp and the opening of a new branch in Ohio. Additionally, Equipment expense increased $2.0 million due to increases in equipment depreciation related to the acquisition of VFG.

Contracted data processing fees decreased due to merger-related system deconversion fees paid in the first quarter of 2022.

Professional services increased due to acquisition advisory costs of $115 thousand, advisory fees for the company’s MasterCard contract of $400 thousand and consulting fees related to CECL implementation of $29 thousand.

The increase in amortization of intangible assets is related to the merger with Comunibanc Corp.

Marketing expense increased due to a general increase in marketing and increase marketing efforts in newly acquired markets.

The increase in Software maintenance expense is due to both increases in software maintenance contracts as well as the implementation of the new digital banking platform.

The increase in other operating expense is primarily due to increases in promotional expenses of $274 thousand, bad check losses of $115 thousand, ATM/ACH losses of $217 thousand and a provision for credit losses on unfunded commitments of $201 thousand.

The efficiency ratio was 62.4% for the quarter ended March 31, 2023 compared to 65.2% for the quarter ended March 31, 2022. The change in the efficiency ratio is primarily due to an increase in noninterest expense offset by an increase in net interest income.

Civista’s effective income tax rate for the first quarter 2023 was 16.4% compared to 15.5% in 2022.

Balance Sheet

Total assets increased $49.3 million, or 1.4%, from December 31, 2022 to March 31, 2023, primarily due to an increase in the loan portfolio of $33.4 million, or 1.3%. Additionally, the securities portfolio increased by $14.0 million, and cash increased $ 9.4 million.

End of period loan balances

(unaudited - dollars in thousands)


	March 31, 2023		December 31, 2022		$ Change			% Change
Commercial and Agriculture	$	271,160	$	278,595	$	(7,435	)		-2.7	%
Commercial Real Estate:
Owner Occupied		375,825		371,147		4,678			1.3	%
Non-owner Occupied		1,043,635		1,018,736		24,899			2.4	%
Residential Real Estate		560,978		552,781		8,197			1.5	%
Real Estate Construction		247,253		243,127		4,126			1.7	%
Farm Real Estate		24,040		24,708		(668	)		-2.7	%
Lease financing receivable		37,570		36,797		773			2.1	%
Consumer and Other		19,605		20,775		(1,170	)		-5.6	%

Total Loans	$	2,580,066	$	2,546,666	$	33,400			1.3	%

Loan balances increased $33.4 million, or 1.3% in the first quarter. Commercial revolving line of credit balances have consistently been less than forty percent advanced. Commercial Real Estate continued to grow due to consistent demand in both the Non-owner Occupied and Owner-Occupied categories. Real Estate Construction grew slightly as new projects have started to draw with the spring construction season. Construction demand remains strong and construction availability continues to be near all-time highs. Residential Real Estate has grown slightly with new production in our CRA product, more home construction loans, and more ARM products in this higher rate environment.

Deposits

Total deposits increased $223.5 million, or 8.5%, from December 31, 2022 to March 31, 2023.

End of period deposit balances

(unaudited - dollars in thousands)


	March 31, 2023		December 31, 2022		$ Change			% Change
Noninterest-bearing demand	$	938,967	$	896,333	$	42,634			4.8	%
Interest-bearing demand		541,027		527,879		13,148			2.5	%
Savings and money market		836,743		876,427		(39,684	)		-4.5	%
Time deposits		526,779		319,345		207,434			65.0	%

Total Deposits	$	2,843,516	$	2,619,984	$	223,532			8.5	%

The increase in noninterest-bearing demand of $42.6 million was primarily due to a $82.0 million increase in balances related to the tax refund processing program, which is a seasonal increase. This seasonal increase was partially offset by a $37.7 million decrease in noninterest-bearing business accounts. Interest-bearing demand deposits increased due to a $15.8 million increase in public fund accounts. The decrease in savings and money market was primarily due to a $19.1 million decrease in personal money markets, a $14.5 million decrease in statement savings, and a $5.2 million decrease in business savings accounts. The increase in time certificates was primarily due to a $201.2 million increase in brokered time deposits.

FHLB overnight advances totaled $212.0 million on March 31, 2023, down from $393.7 million on December 31, 2022. FHLB term advances totaled $3.4 million on March 31, 2023, down from $3.6 million on December 31, 2022.

Stock Repurchase Program

So far in 2023, Civista has not repurchased any shares. We have approximately $6.1 million remaining of the current $13.5 million repurchase authorization, which will expire in May 2023. The Board has approved a replacement plan that will not take effect until May 2023. In January, Civista liquidated 5,620 shares held by employees, at $21.52 per share, to satisfy tax obligations stemming from vesting of restricted shares.

Shareholders’ Equity

Total shareholders’ equity increased $12.9 million from December 31, 2022 to March 31, 2023, primarily due to an $8.1 million decrease in accumulated other comprehensive loss. Retained earnings increased $4.6 million.

Asset Quality

Civista recorded net charge-offs of $128 thousand for the three months of 2023 compared to net recoveries of $92 thousand for the same period of 2022. The allowance for credit losses to loans was 1.33% at March 31, 2023 and 1.12% at December 31, 2022.

Allowance for Credit Losses

(dollars in thousands)


	March 31, 2023			March 31, 2022
Beginning of period	$	28,511		$	26,641
CECL adoption adjustments		5,193			—
Charge-offs		(175	)		(30	)
Recoveries		47			122
Provision		620			300

End of period	$	34,196		$	27,033

Allowance for Unfunded Commitments

(dollars in thousands)


	March 31, 2023		March 31, 2022
Beginning of period	$	—	$	—
CECL adoption adjustments		3,386
Charge-offs		—		—
Recoveries		—		—
Provision		201		—

End of period	$	3,587	$	—

Non-performing assets at March 31, 2023 were $9.9 million, a 9.3% decrease from December 31, 2022. The non-performing assets to assets ratio decreased to 0.30% from 0.31% at December 31, 2022. The allowance for loan losses to non-performing loans increased to 313.58% from 261.45% at December 31, 2022.

Non-performing Assets

(dollars in thousands)


	March 31, 2023		December 31, 2022
Non-accrual loans	$	6,980	$	7,890
Restructured loans		2,880		3,015

Total non-performing loans		9,860		10,905
Other Real Estate Owned		26		—

Total non-performing assets	$	9,886	$	10,905

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company’s financial results for the first quarter of 2023 at 1:00 p.m. ET on Thursday, April 28, 2023. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.civb.com. Participants can also listen to the conference call by dialing 855-238-2712 and ask to join the Civista Bancshares, Inc. first quarter 2023 earnings call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.civb.com).

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended

December 31, 2022, and any additional risks identified in the Company’s subsequent Form 10-Q’s. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Civista Bancshares, Inc., is a $3.6 billion financial holding company headquartered in Sandusky, Ohio. Its primary subsidiary, Civista Bank, was founded in 1884 and provides full-service banking, commercial lending, mortgage, and wealth management services. Today, Civista Bank operates 43 locations across Ohio, Southeastern Indiana and Northern Kentucky. Civista Bank also offers commercial equipment leasing services for businesses nationwide through its subsidiary, Vision Financial Group, Inc., centered in Pittsburgh, Pennsylvania. Civista Bancshares’ common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. Learn more at www.civb.com.

For additional information, contact:

Dennis G. Shaffer

CEO and President

Civista Bancshares, Inc.

888-645-4121

Civista Bancshares, Inc.

Financial Highlights

(Unaudited, dollars in thousands, except share and per share amounts)

Consolidated Condensed Statement of Income


	Three Months Ended March 31,
	2023			2022
Interest income	$	41,539		$	24,666
Interest expense		8,938			1,734

Net interest income		32,601			22,932
Provision for credit losses		620			300

Net interest income after provision		31,981			22,632
Noninterest income		11,068			7,643
Noninterest expense		27,633			20,258

Income before taxes		15,416			10,017
Income tax expense		2,528			1,551

Net income	$	12,888		$	8,466
Dividends paid per common share	$	0.14		$	0.14
Earnings per common share, basic and diluted	$	0.82		$	0.57
Average shares outstanding, basic and diluted		15,732,092			14,853,287
Selected financial ratios:
Return on average assets (annualized)		1.47	%		1.07	%
Return on average equity (annualized)		15.32	%		9.89	%
Dividend payout ratio		17.07	%		24.56	%
Net interest margin (tax equivalent)		4.11	%		3.38	%

Selected Balance Sheet Items

(Dollars in thousands, except share and per share amounts)


	March 31, 2023			December 31, 2022
	(unaudited)			(unaudited)
Cash and due from financial institutions	$	52,723		$	43,361
Investment in time deposits		1,721			1,477
Investment securities		629,829			617,592
Loans held for sale		1,465			683
Loans		2,580,066			2,546,666
Less: allowance for credit losses		(34,196	)		(28,511	)

Net loans		2,545,870			2,518,155
Other securities		35,383			33,585
Premises and equipment, net		61,895			64,018
Goodwill and other intangibles		135,808			136,454
Bank owned life insurance		53,796			53,543
Other assets		66,068			68,962

Total assets	$	3,584,558		$	3,537,830

Total deposits	$	2,843,516		$	2,619,984
Federal Home Loan Bank advances - short term		212,000			393,700
Federal Home Loan Bank advances - long term		3,361			3,578
Securities sold under agreements to repurchase		15,631			25,143
Subordinated debentures		103,841			103,799
Other borrowings		13,938			15,516
Securities purchased payable		—			1,338
Tax refunds in process		5,752			278
Accrued expenses and other liabilities		38,822			39,658
Total shareholders’ equity		347,697			334,836

Total liabilities and shareholders’ equity	$	3,584,558		$	3,537,830

Shares outstanding at period end		15,732,092			15,728,234
Book value per share	$	22.10		$	21.29
Equity to asset ratio		9.70	%		9.46	%
Selected asset quality ratios:
Allowance for loan losses to total loans		1.33	%		1.12	%
Non-performing assets to total assets		0.28	%		0.31	%
Allowance for loan losses to non-performing loans		346.82	%		261.45	%
Non-performing asset analysis
Nonaccrual loans	$	6,980		$	7,890
Troubled debt restructurings		2,880			3,015
Other real estate owned		26			—

Total	$	9,886		$	10,905

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)


End of Period Balances	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Assets
Cash and due from banks	$	52,723		$	43,361		$	40,914		$	233,281		$	412,698
Investment in time deposits		1,721			1,477			1,479			1,236			1,728
Investment securities		629,829			617,592			604,074			531,978			553,499
Loans held for sale		1,465			683			3,491			4,167			4,794
Loans		2,580,066			2,546,666			2,328,614			2,064,221			2,018,188
Allowance for credit losses		(34,196	)		(28,511	)		(27,773	)		(27,435	)		(27,033	)

Net Loans		2,545,870			2,518,155			2,300,841			2,036,786			1,991,155
Other securities		35,383			33,585			18,578			18,511			18,511
Premises and equipment, net		61,895			64,018			30,168			24,151			22,110
Goodwill and other intangibles		135,808			136,454			113,206			84,021			84,251
Bank owned life insurance		53,796			53,543			53,291			47,118			46,885
Other assets		66,068			68,962			75,677			57,850			48,726

Total Assets	$	3,584,558		$	3,537,830		$	3,241,719		$	3,039,099		$	3,184,357

Liabilities
Total deposits	$	2,843,516		$	2,619,984		$	2,708,253		$	2,455,502		$	2,615,137
Federal Home Loan Bank advances - short term		212,000			393,700			55,000			—			—
Federal Home Loan Bank advances - long term		3,361			3,578			6,723			75,000			75,000
Securities sold under agreement to repurchase		15,631			25,143			20,155			17,479			23,931
Subordinated debentures		103,841			103,799			103,778			103,737			103,704
Other borrowings		13,938			15,516			—			—			—
Securities purchased payable		—			1,338			2,611			15,025			1,876
Tax refunds in process		5,752			278			2,709			39,448			10,232
Accrued expenses and other liabilities		38,822			39,658			39,888			30,846			26,785

Total liabilities		3,236,861			3,202,994			2,939,117			2,737,037			2,856,665
Shareholders’ Equity
Common shares		310,412			310,182			299,515			278,240			277,919
Retained earnings		161,110			156,493			146,546			137,592			131,934
Treasury shares		(73,915	)		(73,794	)		(73,641	)		(67,528	)		(61,472	)
Accumulated other comprehensive income(loss)		(49,910	)		(58,045	)		(69,818	)		(46,242	)		(20,689	)

Total shareholders’ equity		347,697			334,836			302,602			302,062			327,692
Total Liabilities and Shareholders’ Equity	$	3,584,558		$	3,537,830		$	3,241,719		$	3,039,099		$	3,184,357

Quarterly Average Balances
Assets:
Earning assets	$	3,211,902		$	3,099,501		$	3,002,256		$	2,866,362		$	2,814,589
Securities		655,987			630,127			622,924			556,352			575,359
Loans		2,548,518			2,458,980			2,289,588			2,033,378			2,006,984
Liabilities and Shareholders’ Equity
Total deposits	$	2,654,356		$	2,649,755		$	2,719,014		$	2,524,971		$	2,557,638
Interest-bearing deposits		1,692,470			1,710,019			1,738,015			1,630,084			1,623,984
Other interest-bearing liabilities		515,122			407,710			155,077			200,005			204,299
Total shareholders’ equity		341,159			299,509			305,134			313,272			347,302

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)


	Three Months Ended
Income statement	March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022		March 31, 2022
Total interest and dividend income	$	41,539	$	37,990	$	32,533	$	26,064	$	24,666
Total interest expense		8,938		5,425		2,094		1,796		1,734

Net interest income		32,601		32,565		30,439		24,268		22,932
Provision for loan losses		620		752		300		400		300
Noninterest income		11,068		10,064		5,734		5,635		7,643
Noninterest expense		27,633		27,301		22,555		20,379		20,258

Income before taxes		15,416		14,576		13,318		9,124		10,017
Income tax expense		2,528		2,428		2,206		1,423		1,551

Net income	$	12,888	$	12,148	$	11,112	$	7,701	$	8,466

Per share data
Earnings per common share
Basic
Net income	$	12,888	$	12,148	$	11,112	$	7,701	$	8,466
Less allocation of earnings and dividends to participating securities		453		432		52		39		32

Net income available to common shareholders - basic	$	12,435	$	11,716	$	11,060	$	7,662	$	8,434
Weighted average common shares outstanding		15,732,092		15,717,439		15,394,898		14,615,154		14,909,192
Less average participating securities		552,882		559,596		71,604		74,286		55,905

Weighted average number of shares outstanding used to calculate basic earnings per share		15,179,210		15,157,843		15,323,294		14,540,868		14,853,287

Earnings per common share
Basic	$	0.82	$	0.77	$	0.72	$	0.53	$	0.57
Diluted		0.82		0.77		0.72		0.53		0.57
Common shares dividend paid	$	2,201	$	2,202	$	2,042	$	2,091	$	2,104
Dividends paid per common share		0.14		0.14		0.14		0.14		0.14

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)


	Three Months Ended
Asset quality	March 2023			December 2022			September 2022			June 2022			March 2022
Allowance for credit losses:
Beginning of period	$	28,511		$	27,773		$	27,435		$	27,033		$	26,641
CECL adoption adjustments		5,193			—			—			—			—
Charge-offs		(175	)		(58	)		(74	)		(60	)		(30	)
Recoveries		47			44			112			62			122
Provision		620			752			300			400			300

End of period	$	34,196		$	28,511		$	27,773		$	27,435		$	27,033

Allowance for unfunded commitments:
Beginning of period	$	—		$	—		$	—		$	—		$	—
CECL adoption adjustments		3,386			—			—			—			—
Charge-offs		—			—			—			—			—
Recoveries		—			—			—			—			—
Provision		201			—			—			—			—

End of period	$	3,587		$	—		$	—		$	—		$	—

Ratios
Allowance to total loans		1.33	%		1.12	%		1.19	%		1.33	%		1.34	%
Allowance to nonperforming assets		345.91	%		261.45	%		476.24	%		572.78	%		501.50	%
Allowance to nonperforming loans		345.82	%		261.45	%		476.24	%		572.78	%		501.50	%
Nonperforming assets
Nonperforming loans	$	9,860		$	10,905		$	5,832		$	4,790		$	5,390
Other real estate owned		26			—			—			—			—

Total nonperforming assets	$	9,886		$	10,905		$	5,832		$	4,790		$	5,390
Capital and liquidity
Tier 1 leverage ratio		8.63	%		8.92	%		9.32	%		9.87	%		9.50	%
Tier 1 risk-based capital ratio		10.80	%		10.78	%		11.62	%		13.63	%		14.02	%
Total risk-based capital ratio		14.73	%		14.52	%		15.62	%		18.24	%		18.74	%
Tangible common equity ratio ⁽¹⁾		6.14	%		5.83	%		6.05	%		7.38	%		7.85	%

(1)	See reconciliation of non-GAAP measures at the end of this press release.

Reconciliation of Non-GAAP Financial Measures

(Unaudited - dollars in thousands except share data)


	Three Months Ended
	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Tangible Common Equity
Total Shareholder’s Equity - GAAP	$	347,697		$	334,835		$	302,602		$	302,062		$	327,692
Less: Goodwill and intangible assets		135,808			136,454			113,206			84,021			84,251

Tangible common equity (Non-GAAP)	$	211,889		$	198,381		$	189,396		$	218,041		$	243,441
Total Shares Outstanding		15,732,092			15,728,234			15,235,545			14,537,433			14,797,232
Tangible book value per share	$	13.47		$	12.61		$	12.43		$	15.00		$	16.45
Tangible Assets
Total Assets - GAAP	$	3,587,118		$	3,537,830		$	3,241,719		$	3,039,099		$	3,184,357
Less: Goodwill and intangible assets		135,808			136,454			113,206			84,021			84,251

Tangible assets (Non-GAAP)	$	3,451,310		$	3,401,376		$	3,128,513		$	2,955,078		$	3,100,106
Tangible common equity to tangible assets		6.14	%		5.83	%		6.05	%		7.38	%		7.85	%