CB Financial Services, Inc. Announces Fourth Quarter and Full Year 2021 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”) and Exchange Underwriters, Inc. (“EU”), a wholly-owned insurance subsidiary of the Bank, today announced its fourth quarter and year-to-date 2021 financial results.

	Three Months Ended															Year Ended
	12/31/21			9/30/21			6/30/21			3/31/21			12/31/20			12/31/21			12/31/20
(Dollars in thousands, except per share data) (Unaudited)
Net Income (Loss) (GAAP)	$	6,965		$	1,983		$	(223	)	$	2,845		$	3,079		$	11,570		$	(10,640	)
Excluding Non-Recurring Items (Non-GAAP) (1)		(4,122	)		(17	)		3,440			(353	)		40			(1,053	)		19,343
Adjusted Net Income (Non-GAAP) (1)	$	2,843		$	1,966		$	3,217		$	2,492		$	3,119		$	10,517		$	8,703
Earnings (Loss) per Common Share - Diluted (GAAP)	$	1.31		$	0.37		$	(0.04	)	$	0.52		$	0.57		$	2.15		$	(1.97	)
Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)	$	0.53		$	0.36		$	0.59		$	0.46		$	0.58		$	1.95		$	1.61

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

2021 Fourth Quarter Financial Highlights

(Comparisons to three months ended December 31, 2020 unless otherwise noted)

• Net income was $7.0 million, compared to $3.1 million, largely due to the $5.2 million gain recognized from the sale of branches.
  • Adjusted net income (non-GAAP) was $2.8 million, compared to $3.1 million.
• Earnings per diluted common share (EPS) increased to $1.31 from $0.57.
  • Adjusted earnings per common share - diluted (non-GAAP) was $0.53, compared to $0.58.
• Return on average assets (annualized) of 1.87%, compared to 0.87%.
  • Adjusted return on average assets (annualized) (non-GAAP) of 0.76%, compared to 0.88%.
• Return on average equity (annualized) of 20.95%, compared to 9.13%.
  • Adjusted return on average equity (annualized) (non-GAAP) of 8.55%, compared to 9.25%.
• Net interest margin (NIM) improved quarter over quarter to 2.95% from 2.88% for the three months ended September 30, 2021. NIM was 3.21% for the prior year period.
• Net interest and dividend income was $10.2 million, compared to $10.6 million.
• Non-interest income increased to $8.7 million, compared to $2.8 million, primarily due to the $5.2 million gain on sale of branches.

(Amounts at December 31, 2021; comparisons to December 31, 2020, unless otherwise noted)

• Total loans, including Payroll Protection Program (“PPP”) loans, were $1.02 billion, a decrease of $24.0 million.
  • Total loans held for investment, excluding PPP loans, increased $27.4 million, or 11.3% annualized, to $996.3 million compared to $968.9 million at September 30, 2021 and included 35.9% and 13.2% annualized growth in consumer and commercial real estate loans, respectively. Total loans, excluding PPP loans, were $989.7 million at December 31, 2020.
• Nonperforming loans to total loans was 0.71%, a decrease of 68 bps, compared to 1.39%.
• Total deposits were $1.23 billion, an increase of $2.0 million, inclusive of selling $102.8 million of deposits of two branches in December 2021.
• Total assets increased to $1.43 billion, compared to $1.42 billion.
• Book value per share was $25.31, compared to $24.76 and $24.57 at September 30, 2021.
  • Tangible book value per share (Non-GAAP) increased to $22.45, compared to $21.42 and $21.67 at September 30, 2021.

Branch Optimization and Operational Efficiency Update

As previously announced in February 2021, CB has implemented strategic initiatives to improve Community Bank’s financial performance and to position the Bank for continued profitable growth. Since that announcement, the Company has substantially completed this project, highlighted by:

• The consolidation of six branches that was completed on June 30, 2021 and the sale of two branches that was completed in December 2021 that resulted in a gain on sale of $5.2 million. $6.1 million of loans and $102.8 million of deposits were sold as part of the sale of the branches. The Company anticipates $3.0 million of ongoing pre-tax cost savings as a result of the branch optimization initiatives.
• The identification and enhancement of over 185 individualized processes within its branch network and operating environment designed to improve the Bank’s infrastructure, client experience, efficiency and profitability. The project was expensed in 2021. The majority of process improvements have been implemented with the remaining items to be implemented in 2022. CB anticipates cost savings from the operational efficiency initiative ranging from approximately $2.5 million to $3.5 million in 2022, as well as expected enhanced revenue and fee generating capacity in future years.

Management Commentary

President and CEO John H. Montgomery stated, “The fourth quarter was highlighted by the sale of two branches, which resulted in a $5.2 million gain for the bank while completing the optimization initiative announced early in 2021. We undertook that initiative with the primary goals of reducing our expenses while also positioning the bank for growth and I am proud of our team for succeeding on both fronts. With the optimization effort now substantially complete, we intend to focus all our energy on continuing the growth we saw take hold during the second half of 2021. Despite the reduction of our deposit balances resulting from the sale of two branches, we were still able to grow our loan book 11.3% in the current quarter, which is a result we’re proud of. Our loan book experienced solid demand across nearly all our end markets, fueled by the continuing economic recovery in our geographic region.”

Mr. Montgomery continued, “As we enter 2022, we are well-positioned for a rising rate environment. We are squarely focused on capturing growth opportunities and are investing in our business in support of that. A key component of our optimization initiative was the reduction of low return uses of capital so that capital could be repurposed for higher growth investment. With that in mind, we expect to bring on a Chief Commercial Banking Officer and a Director of Client Experience and Retail Banking during the first quarter. Set against the backdrop of reduced annual expense levels and rising interest rates, our expectation is for continued growth and expansion of profitability. In addition, we remain committed to CB’s shareholders through the payment of dividends and an active share buy-back program.”

Dividend Information

The Company’s Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about February 28, 2022, to stockholders of record as of the close of business on February 18, 2022.

Stock Repurchase Program

On June 10, 2021, CB authorized a program to repurchase up to $7.5 million of the Company’s outstanding common stock. The program was effective as of June 14, 2021 and is authorized through June 13, 2022. As of January 21, 2022, the Company had repurchased 191,314 shares at an average price of $23.34 per share for a total of $4.5 million.

2021 Fourth Quarter Financial Review

Net Interest and Dividend Income

• Net interest and dividend income decreased $403,000, or 3.8%, to $10.2 million for the three months ended December 31, 2021 compared to $10.6 million for the three months ended December 31, 2020.
• Net interest margin (FTE) (Non-GAAP) decreased 26 basis points (“bps”) to 2.96% for the three months ended December 31, 2021 compared to 3.22% for the three months ended December 31, 2020. Net interest margin (GAAP) decreased to 2.95% for the three months ended December 31, 2021 compared to 3.21% for the three months ended December 31, 2020. While CB has further controlled its deposit cost structure as deposit balances increased and benefited from non-renewal or repricing of higher-cost time deposits, the net interest margin decreased year-over-year due to the low interest rate environment decreasing yields on loans and securities. The fourth quarter of 2021 was aided by the full payoff of a $3.1 million nonperforming commercial real estate loan in the hotel portfolio, which resulted in the recognition of $201,000 of interest income. Net interest margin (GAAP) for the three months ended September 30, 2021 was 2.88%.
• Interest and dividend income decreased $792,000, or 6.7%, to $11.0 million for the three months ended December 31, 2021 compared to $11.8 million for the three months ended December 31, 2020.
  • Interest income on loans decreased $929,000, or 8.6%, to $9.9 million for the three months ended December 31, 2021 compared to $10.8 million for the three months ended December 31, 2020. The average balance of loans decreased $28.1 million and the average yield decreased 26 bps to 3.92% compared to the three months ended December 31, 2020. Interest and fee income on PPP loans was $391,000 for the three months ended December 31, 2021 and contributed 4 bps to loan yield, compared to $768,000 for the three months ended December 31, 2020, which contributed 3 bps to loan yield. The impact of the accretion of the credit mark on acquired loan portfolios was $83,000 for the three months ended December 31, 2021 compared to $141,000 for the three months ended December 31, 2020, or 3 bps in the current period compared to 5 bps in the prior period.
  • Interest income on taxable investment securities increased $141,000, or 19.4%, to $866,000 for the three months ended December 31, 2021 compared to $725,000 for the three months ended December 31, 2020 driven by a $72.3 million increase in average balance partially offset by a 49 bps decrease in average yield. The Federal Reserve’s pandemic-driven decision to drop the benchmark interest rate in 2020 resulted in significant calls of U.S. government agency securities and pay-downs on mortgage-backed securities in the declining interest rate environment, which, in combination with excess liquidity, were replaced with purchases of lower-yielding securities.
• Interest expense decreased $389,000, or 34.7%, to $732,000 for the three months ended December 31, 2021 compared to $1.1 million for the three months ended December 31, 2020.
  • Interest expense on deposits decreased $400,000, or 38.6%, to $636,000 for the three months ended December 31, 2021 compared to $1.0 million for the three months ended December 31, 2020. While average interest-earning deposit balances increased $17.5 million compared to the three months ended December 31, 2020, controlling the deposit cost structure as deposit balances increased combined with non-renewal or repricing of higher-cost time deposit resulted in a 19 bp, or 40.4%, decrease in average cost compared to the three months ended December 31, 2020. The average balance of time deposits and the related average cost decreased $38.9 million and 32 bps, respectively.

Provision for Loan Losses

There was a $75,000 provision for loan losses for the three months ended December 31, 2021 compared to no provision for loan losses for the three months ended December 31, 2020. The provision was primarily due to loan growth in the current period, exclusive of PPP loan forgiveness, offset by adjustments in the qualitative factors driven by improving economic and industry conditions.

Noninterest income

Noninterest income increased $5.9 million, or 212.8%, to $8.7 million for the three months ended December 31, 2021, compared to $2.8 million for the three months ended December 31, 2020. The increase was largely due to a gain of $5.2 million from the sale of two branches during the quarter. In addition, net gain on sale of loans increased $589,000 to $977,000 for the three months ended December 31, 2021 compared to $388,000 for the three months ended December 31, 2020 primarily due to the sale of a nonperforming commercial real estate loan in the hotel portfolio that resulted in the recognition of an $897,000 gain. The loan previously incurred a $931,000 charge-off in the fourth quarter of 2020.

Noninterest Expense

Noninterest expense increased $247,000, or 2.5%, to $10.0 million for the three months ended December 31, 2021 compared to $9.7 million for the three months ended December 31, 2020. Contracted services increased $556,000 to $1.1 million for the three months ended December 31, 2021 compared to $577,000 for the three months ended December 31, 2020 primarily due to $859,000 in expenses associated with the engagement of a third-party workflow optimization expert to assist in implementing robotic process automations and more effective sales management designed to improve operational efficiencies in the near and long-term and engagement of other third party specialists to assist in core platform improvements and efficiencies.

Statement of Financial Condition Review

Assets

Total assets increased $8.8 million, or 0.6%, to $1.43 billion at December 31, 2021, compared to $1.42 billion at December 31, 2020.

• Cash and due from banks decreased $41.2 million, or 25.6%, to $119.7 million at December 31, 2021, compared to $160.9 million at December 31, 2020. The change is primarily related to securities purchases and sale of branches, partially offset by net repayments on loans.
• Securities increased $79.6 million, or 54.7%, to $225.0 million at December 31, 2021, compared to $145.4 million at December 31, 2020. Current period activity included $135.0 million of purchases, $38.4 million of paydowns, and $12.0 million of sales, primarily of mortgage-backed securities, which resulted in the recognition of a $231,000 gain. The sales recognized gains on higher-interest securities with faster prepayment speeds. The purchases were made to earn a higher yield on excess cash. In addition, there was a $5.5 million decrease in the market value of the debt securities portfolio and a $295,000 gain in market value in the equity securities portfolio, which is primarily comprised of bank stocks.

Payroll Protection Program (“PPP”) Update

• PPP loans decreased $30.6 million to $24.5 million at December 31, 2021 compared to $55.1 million at December 31, 2020, which includes $34.6 million in originations in the current period offset by loan forgiveness.
• $678,000 of net PPP loan origination fees were unearned at December 31, 2021 compared to $1.1 million at December 31, 2020. $321,000 of net PPP loan origination fees were earned for the three month ended December 31, 2021 compared to $604,000 for the three months ended December 31, 2020 and $380,000 for the three months ended September 30, 2021.

Loans and Credit Quality

• Total loans held for investment decreased $24.0 million, or 2.3%, to $1.02 billion at December 31, 2021 compared to $1.04 billion at December 31, 2020. Excluding the net decline of $30.6 million in PPP loans in the current period, loans increased $6.6 million. Compared to September 30, 2021, loans held for investment, excluding PPP loans, increased $27.4 million, or 11.3% annualized, primarily from increases of $12.5 million in commercial real estate loans, $10.1 million in consumer loans driven by efficiencies in the indirect auto loan process that did not sacrifice credit quality, and $7.0 million in net construction loan disbursements.
• The allowance for loan losses was $11.6 million at December 31, 2021 compared to $12.8 million at December 31, 2020. There was a net recovery of $1.1 million of provision for loan losses in the current year primarily due to a decrease in specific reserves on impaired loans and improving economic and industry conditions resulting in a decrease in qualitative factors. As a result, the allowance for loan losses to total loans was 1.13% at December 31, 2021 compared to 1.22% at December 31, 2020. The allowance for loan losses to total loans, excluding PPP loans, was 1.16% at December 31, 2021 compared to 1.29% at December 31, 2020.
• Net charge-offs for the three months ended December 31, 2021 were $74,000, or 0.03% of average loans on an annualized basis. Net charge-offs for the three months ended December 31, 2020 were $1.0 million, or 0.39% of average loans on an annualized basis. In the prior period, there was a $931,000 charge-off on a commercial real estate loan related to a hotel. This loan was subsequently sold and resulted in the recognition of an $897,000 gain on sale in the current period. Net charge-offs for the year ended December 31, 2021 were $64,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the year ended December 31, 2020 were $1.1 million, or 0.11% of average loans on an annualized basis.
• Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $7.3 million at December 31, 2021 compared to $14.5 million at December 31, 2020. The decrease is primarily attributable to the full payoff and sale in the current year of two of the Bank’s larger nonperforming commercial real estate loans that were secured by hotels. Nonperforming loans to total loans ratio was 0.71% at December 31, 2021 compared to 1.39% at December 31, 2020.

Liabilities

Total liabilities increased $10.2 million, or 0.8%, to $1.29 billion at December 31, 2021 compared to $1.28 billion at December 31, 2020.

Deposits

• Despite the impact of the sale of $102.8 million of deposits from the sale of two branches completed in December 2021, total deposits increased $2.0 million to $1.23 billion as of December 31, 2021 compared to $1.22 billion at December 31, 2020. Noninterest bearing demand deposits, NOW accounts and savings accounts increased $45.2 million, $12.6 million and $4.4 million, respectively, partially offset by a decrease of $53.3 million in time deposits.

Borrowed Funds

• Short-term borrowings decreased $1.8 million, or 4.4%, to $39.3 million at December 31, 2021, compared to $41.1 million at December 31, 2020. At December 31, 2021 and December 31, 2020, short-term borrowings were comprised entirely of securities sold under agreements to repurchase, which are related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank’s investment portfolio under an agreement to repurchase.
• Other borrowed funds increased $9.6 million to $17.6 million at December 31, 2021 due to the issuance of subordinated debt in December 2021 with net proceeds of $14.6 million partially offset by $5.0 million of Federal Home Loan Bank borrowings that matured in the current period. The Company intends to utilize the subordinated debt proceeds to continue to proactively repurchase shares or for other general corporate matters.

Stockholders’ Equity

Stockholders’ equity decreased $1.4 million, or 1.0%, to $133.1 million at December 31, 2021, compared to $134.5 million at December 31, 2020. The Company paid $5.2 million in dividends and repurchased $4.1 million of its common stock as part of its stock repurchase program. In addition, accumulated other comprehensive income decreased $4.3 million primarily due to the effect of market interest rate conditions on the Bank’s debt securities. This was partially offset by $11.6 million of net income.

Book value per share

Book value per common share was $25.31 at December 31, 2021 compared to $24.76 at December 31, 2020, an increase of $0.55. Book value per share increased $0.74 compared to $24.57 at September 30, 2021.

Tangible book value per common share (Non-GAAP) was $22.45 at December 31, 2021, compared to $21.42 at December 31, 2020, an increase of $1.03. Tangible book value per share increased $0.78 compared to $21.67 at September 30, 2021. 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 and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary.

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, the scope and duration of economic contraction as a result of the COVID-19 pandemic and its effects on the Company’s business and that of the Company’s customers, 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	12/31/21				9/30/21				6/30/21				3/31/21				12/31/20
ASSETS
Cash and Due From Banks	$	119,674			$	173,523			$	172,010			$	230,000			$	160,911
Securities		224,974				221,351				208,472				142,156				145,400
Loans Held for Sale		—				17,407				11,409				—				—
Loans
Real Estate:
Residential		320,798				317,373				322,480				339,596				344,142
Commercial		392,124				379,621				360,518				370,118				373,555
Construction		85,028				78,075				85,187				77,714				72,600
Commercial and Industrial
Commercial and Industrial		64,487				69,657				70,666				68,551				71,717
PPP		24,523				32,703				49,525				60,380				55,096
Consumer		122,152				112,087				106,404				111,650				113,854
Other		11,684				12,083				12,666				13,688				13,789
Total Loans		1,020,796				1,001,599				1,007,446				1,041,697				1,044,753
Allowance for Loan Losses		(11,582	)			(11,581	)			(11,544	)			(12,725	)			(12,771	)
Loans, Net		1,009,214				990,018				995,902				1,028,972				1,031,982
Premises and Equipment Held for Sale		—				795				795				—				—
Premises and Equipment, Net		18,399				18,502				18,682				20,240				20,302
Bank-Owned Life Insurance		25,332				25,190				25,052				24,916				24,779
Goodwill		9,732				9,732				9,732				9,732				9,732
Intangible Assets, Net		5,295				5,740				6,186				7,867				8,399
Accrued Interest and Other Assets		12,859				12,560				13,373				12,938				15,215
Total Assets	$	1,425,479			$	1,474,818			$	1,461,613			$	1,476,821			$	1,416,720
LIABILITIES
Deposits Held for Sale	$	—			$	102,647			$	102,557			$	—			$	—
Deposits
Non-Interest Bearing Demand Deposits		385,775				373,320				368,452				377,137				340,569
Interest Bearing Demand Accounts		272,518				244,004				246,920				280,929				259,870
Money Market Accounts		192,125				190,426				176,824				198,975				199,029
Savings Accounts		239,482				232,679				226,639				246,725				235,088
Time Deposits		136,713				144,727				154,718				180,697				190,013
Total Deposits		1,226,613				1,185,156				1,173,553				1,284,463				1,224,569
Short-Term Borrowings		39,266				42,623				39,054				45,352				41,055
Other Borrowings		17,601				6,000				6,000				6,000				8,000
Accrued Interest and Other Liabilities		8,875				7,405				7,913				7,230				8,566
Total Liabilities		1,292,355				1,343,831				1,329,077				1,343,045				1,282,190
STOCKHOLDERS’ EQUITY	$	133,124			$	130,987			$	132,536			$	133,776			$	134,530

		Three Months Ended																				Year Ended
Selected Operating Data		12/31/21				9/30/21				6/30/21				3/31/21				12/31/20				12/31/21				12/31/20
Interest and Dividend Income
Loans, Including Fees		$	9,904			$	9,718			$	9,936			$	10,146			$	10,833			$	39,704			$	42,883
Securities:
Taxable			866				843				635				646				725				2,990				3,619
Tax-Exempt			66				71				74				78				78				289				369
Dividends			21				19				24				20				20				84				79
Other Interest and Dividend Income			106				135				151				98				99				490				517
Total Interest and Dividend Income			10,963				10,786				10,820				10,988				11,755				43,557				47,467
Interest Expense
Deposits			636				715				827				947				1,036				3,125				5,172
Short-Term Borrowings			26				25				24				23				25				98				137
Other Borrowings			70				36				35				41				60				182				254
Total Interest Expense			732				776				886				1,011				1,121				3,405				5,563
Net Interest and Dividend Income			10,231				10,010				9,934				9,977				10,634				40,152				41,904
Provision (Recovery) for Loan Losses			75				—				(1,200	)			—				—				(1,125	)			4,000
Net Interest and Dividend Income After Provision (Recovery) for Loan Losses			10,156				10,010				11,134				9,977				10,634				41,277				37,904
Noninterest Income:
Service Fees			569				602				614				546				560				2,331				2,206
Insurance Commissions			1,618				1,194				1,209				1,595				1,403				5,616				4,878
Other Commissions			90				93				173				165				105				521				479
Net Gain on Sales of Loans			977				49				31				86				388				1,143				1,391
Net Gain on Securities			44				24				11				447				213				526				233
Net Gain on Purchased Tax Credits			17				18				17				18				16				70				62
Gain on Sale of Branches			5,203				—				—				—				—				5,203				—
Net Loss on Disposal of Fixed Assets			—				—				(3	)			—				(13	)			(3	)			(61	)
Income from Bank-Owned Life Insurance			142				138				136				137				140				553				557
Other Income (Loss)			29				80				31				180				(34	)			320				(274	)
Total Noninterest Income			8,689				2,198				2,219				3,174				2,778				16,280				9,471
Noninterest Expense:
Salaries and Employee Benefits			5,181				4,787				5,076				4,894				5,126				19,938				19,809
Occupancy			619				615				1,024				710				606				2,968				2,797
Equipment			252				205				311				266				234				1,034				935
Data Processing			488				541				607				518				476				2,154				1,843
FDIC Assessment			222				293				249				250				344				1,014				837
PA Shares Tax			173				224				225				265				350				887				1,313
Contracted Services			1,133				1,441				750				687				577				4,011				2,048
Legal and Professional Fees			206				180				419				189				185				994				752
Advertising			191				225				193				140				178				749				664
Other Real Estate Owned (Income)			(30	)			(89	)			(26	)			(38	)			(39	)			(183	)			(69	)
Amortization of Intangible Assets			445				446				503				532				532				1,926				2,128
Intangible Assets and Goodwill Impairment			—				—				1,178				—				—				1,178				18,693
Writedown of Fixed Assets			23				2				2,268				—				240				2,293				1,124
Other			1,069				903				945				982				916				3,899				3,893
Total Noninterest Expense			9,972				9,773				13,722				9,395				9,725				42,862				56,767
Income (Loss) Before Income Tax Expense (Benefit)			8,873				2,435				(369	)			3,756				3,687				14,695				(9,392	)
Income Tax Expense (Benefit)			1,908				452				(146	)			911				608				3,125				1,248
Net Income (Loss)		$	6,965			$	1,983			$	(223	)		$	2,845			$	3,079			$	11,570			$	(10,640	)

		Three Months Ended																Year Ended
Per Common Share Data		12/31/21			9/30/21			6/30/21				3/31/21			12/31/20			12/31/21			12/31/20
Dividends Per Common Share		$	0.24		$	0.24		$	0.24			$	0.24		$	0.24		$	0.96		$	0.96
Earnings (Loss) Per Common Share - Basic			1.32			0.37			(0.04	)			0.52			0.57			2.15			(1.97	)
Earnings (Loss) Per Common Share - Diluted			1.31			0.37			(0.04	)			0.52			0.57			2.15			(1.97	)
Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1)			0.53			0.36			0.59				0.46			0.58			1.95			1.61
Weighted Average Common Shares Outstanding - Basic			5,291,795			5,373,032			5,432,234				5,434,374			5,404,874			5,382,441			5,406,290
Weighted Average Common Shares Outstanding - Diluted			5,314,537			5,390,128			5,432,234				5,436,881			5,406,068			5,392,729			5,406,290

		12/31/21				9/30/21				6/30/21				3/31/21				12/31/20
Common Shares Outstanding			5,260,672				5,330,401				5,409,077				5,434,374				5,434,374
Book Value Per Common Share		$	25.31			$	24.57			$	24.50			$	24.62			$	24.76
Tangible Book Value per Common Share (1)			22.45				21.67				21.56				21.38				21.42
Stockholders’ Equity to Assets			9.3	%			8.9	%			9.1	%			9.1	%			9.5	%
Tangible Common Equity to Tangible Assets (1)			8.4				7.9				8.1				8.0				8.3

		Three Months Ended															Year Ended
Selected Financial Ratios (2)		12/31/21			9/30/21			6/30/21			3/31/21			12/31/20			12/31/21			12/31/20
Return on Average Assets		1.87	%		0.54	%		(0.06	) %		0.81	%		0.87	%		0.79	%		(0.77	) %
Adjusted Return on Average Assets (1)		0.76			0.53			0.87			0.71			0.88			0.72			0.63
Return on Average Equity		20.95			5.93			(0.66	)		8.54			9.13			8.66			(7.18	)
Adjusted Return on Average Equity (1)		8.55			5.88			9.57			7.48			9.25			7.87			5.88
Average Interest-Earning Assets to Average Interest-Bearing Liabilities		145.09			146.78			146.82			142.98			141.58			145.44			139.89
Average Equity to Average Assets		8.93			9.03			9.08			9.48			9.49			9.12			10.75
Net Interest Rate Spread		2.85			2.77			2.72			2.91			3.07			2.81			3.13
Net Interest Rate Spread (FTE) (1)		2.86			2.78			2.74			2.92			3.08			2.82			3.15
Net Interest Margin		2.95			2.88			2.84			3.04			3.21			2.92			3.30
Net Interest Margin (FTE) (1)		2.96			2.89			2.85			3.05			3.22			2.94			3.32
Net Charge-offs (Recoveries) to Average Loans		0.03			(0.01	)		(0.01	)		0.02			0.39			0.01			0.11
Efficiency Ratio		52.71			80.05			112.91			71.44			72.51			75.95			110.50
Adjusted Efficiency Ratio (1)		69.73			77.27			80.68			70.06			68.06			74.25			68.14

Asset Quality Ratios		12/31/21			9/30/21			6/30/21			3/31/21			12/31/20
Allowance for Loan Losses to Total Loans		1.13	%		1.16	%		1.15	%		1.22	%		1.22	%
Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1)		1.16			1.20			1.21			1.30			1.29
Allowance for Loan Losses to Nonperforming Loans (3)		159.40			106.18			74.92			89.29			88.15
Allowance for Loan Losses to Noncurrent Loans (4)		233.37			135.37			90.83			118.08			117.20
Delinquent and Nonaccrual Loans to Total Loans (4) (5)		0.78			0.97			1.37			1.18			1.50
Nonperforming Loans to Total Loans (3)		0.71			1.09			1.53			1.37			1.39
Noncurrent Loans to Total Loans (4)		0.49			0.85			1.26			1.03			1.04
Nonperforming Assets to Total Assets (6)		0.51			0.74			1.07			0.98			1.04

Capital Ratios (7)		12/31/21		9/30/21		6/30/21		3/31/21		12/31/20
Common Equity Tier 1 Capital (to Risk Weighted Assets)		11.95 %		11.53 %		11.67 %		11.85 %		11.79 %
Tier 1 Capital (to Risk Weighted Assets)		11.95		11.53		11.67		11.85		11.79
Total Capital (to Risk Weighted Assets)		13.18		12.77		12.92		13.10		13.04
Tier 1 Leverage (to Adjusted Total Assets)		7.76		7.38		7.23		7.87		7.81

(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 nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans.
(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, 2021							September 30, 2021							June 30, 2021							March 31, 2021							December 31, 2020
	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)	$	1,004,827	$	9,927	3.92	%		$	1,004,474	$	9,740	3.85	%		$	1,016,868	$	9,959	3.93	%		$	1,031,853	$	10,168	4.00	%		$	1,032,942	$	10,860	4.18	%
Debt Securities
Taxable		205,328		866	1.69				197,763		843	1.71				124,685		635	2.04				122,883		646	2.10				133,026		725	2.18
Exempt From Federal Tax		10,477		84	3.21				11,647		90	3.09				12,276		94	3.06				12,943		96	2.97				13,006		96	2.95
Equity Securities		2,693		21	3.12				2,655		19	2.86				2,649		24	3.62				2,632		20	3.04				2,612		20	3.06
Other Interest-Earning Assets		153,577		106	0.27				164,447		135	0.33				246,392		151	0.25				161,871		98	0.25				137,000		99	0.29
Total Interest-Earning Assets		1,376,902		11,004	3.17				1,380,986		10,827	3.11				1,402,870		10,863	3.11				1,332,182		11,028	3.36				1,318,586		11,800	3.56
Noninterest-Earning Assets		100,607							88,291							82,794							92,550							94,262
Total Assets	$	1,477,509						$	1,469,277						$	1,485,664						$	1,424,732						$	1,412,848
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (3)	$	278,546		51	0.07	%		$	275,411		48	0.07	%		$	275,752		55	0.08			$	259,065		77	0.12			$	252,521		83	0.13	%
Savings (3)		252,387		20	0.03				251,801		21	0.03				247,238		25	0.04				239,850		32	0.05				232,647		32	0.05
Money Market (3)		209,572		57	0.11				198,167		55	0.11				199,652		71	0.14				197,395		98	0.20				198,983		131	0.26
Time Deposits (3)		154,342		508	1.31				168,654		591	1.39				177,506		676	1.53				187,114		740	1.60				193,194		790	1.63
Total Interest-Bearing Deposits (3)		894,847		636	0.28				894,033		715	0.32				900,148		827	0.37				883,424		947	0.43				877,345		1,036	0.47
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase		44,709		26	0.23				40,818		25	0.24				49,325		24	0.20				41,094		23	0.23				43,468		25	0.23
Other Borrowings		9,474		70	2.93				6,000		36	2.38				6,000		35	2.34				7,200		41	2.31				10,543		60	2.26
Total Interest-Bearing Liabilities		949,030		732	0.31				940,851		776	0.33				955,473		886	0.37				931,718		1,011	0.44				931,356		1,121	0.48
Noninterest-Bearing Demand Deposits		388,787							387,746							387,317							349,108							338,223
Other Liabilities		7,800							8,019							7,999							8,869							9,176
Total Liabilities		1,345,617							1,336,616							1,350,789							1,289,695							1,278,755
Stockholders' Equity		131,892							132,661							134,875							135,037							134,093
Total Liabilities and Stockholders' Equity	$	1,477,509						$	1,469,277						$	1,485,664						$	1,424,732						$	1,412,848
Net Interest Income (FTE) (Non-GAAP) (4)				10,272							10,051							9,977							10,017							10,679
Net Interest-Earning Assets (5)		427,872							440,135							447,397							400,464							387,230
Net Interest Rate Spread (FTE) (Non-GAAP) (4) (6)					2.86	%						2.78	%						2.74							2.92							3.08	%
Net Interest Margin (FTE) (Non-GAAP) (4)(7)					2.96							2.89							2.85							3.05							3.22
PPP Loans		29,067		391	5.34				40,313		484	4.76				57,661		636	4.42				56,945		676	4.81				64,914		768	4.71

(1)		Annualized based on three months ended results.
(2)		Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale.
(3)		Includes Deposits Held for Sale that were sold in December 2021.
(4)		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.
(5)		Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)		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.
(7)		Net interest margin represents annualized net interest income divided by average total interest-earning assets.

AVERAGE BALANCES AND YIELDS
	Year Ended
	December 31, 2021									December 31, 2020
	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)	$	1,014,405		$	39,799		3.92	%		$	1,008,401		$	43,013		4.27	%
Debt Securities
Taxable		162,987			2,990		1.83				138,015			3,619		2.62
Exempt From Federal Tax		11,829			366		3.09				14,244			450		3.16
Marketable Equity Securities		2,657			84		3.16				2,585			79		3.06
Other Interest-Earning Assets		181,502			490		0.27				105,588			517		0.49
Total Interest-Earning Assets		1,373,380			43,729		3.18				1,268,833			47,678		3.76
Noninterest-Earning Assets		91,075									109,241
Total Assets	$	1,464,455								$	1,378,074
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (2)	$	272,256			232		0.09	%		$	240,372			590		0.25	%
Savings (2)		247,864			98		0.04				227,277			188		0.08
Money Market (2)		201,222			281		0.14				187,095			708		0.38
Time Deposits (2)		171,805			2,514		1.46				203,128			3,686		1.81
Total Interest-Bearing Deposits (2)		893,147			3,125		0.35				857,872			5,172		0.60
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase		43,988			98		0.22				37,819			137		0.36
Other Borrowings		7,172			182		2.54				11,328			254		2.24
Total Interest-Bearing Liabilities		944,307			3,405		0.36				907,019			5,563		0.61
Noninterest-Bearing Demand Deposits		378,374									313,858
Other Liabilities		8,168									9,065
Total Liabilities		1,330,849									1,229,942
Stockholders' Equity		133,605									148,132
Total Liabilities and Stockholders' Equity	$	1,464,454								$	1,378,074
Net Interest Income (FTE) (Non-GAAP) (3)					40,324									42,115
Net Interest-Earning Assets (3)(4)		429,073									361,814
Net Interest Rate Spread (FTE) (Non-GAAP) (3)(5)							2.82	%								3.15	%
Net Interest Margin (FTE) (Non-GAAP) (3)(6)							2.94									3.32
PPP Loans		45,905			2,189		4.77				45,694			1,537		3.36

(1)		Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale.
(2)		Includes Deposits Held for Sale that were sold in December 2021.
(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 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 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.

	Three Months Ended																Year Ended
	12/31/21			9/30/21			6/30/21			3/31/21			12/31/20				12/31/21			12/31/20
(Dollars in thousands, except share and per share data) (Unaudited)
Net Income (Loss) (GAAP)	$	6,965		$	1,983		$	(223	)	$	2,845		$	3,079			$	11,570		$	(10,640	)
Adjustments
Gain on Securities		(44	)		(24	)		(11	)		(447	)		(213	)			(526	)		(233	)
Gain on Sale of Branches		(5,203	)		—			—			—			—				(5,203	)		—
Loss on Disposal of Fixed Assets		—			—			3			—			13				3			61
Tax effect		1,102			5			2			94			42				1,202			36
Non-Cash Charges:
Intangible Assets and Goodwill Impairment		—			—			1,178			—			—				1,178			18,693
Writedown on Fixed Assets		23			2			2,268			—			240				2,293			1,124
Tax Effect		—			—			—			—			(42	)			—			(338	)
Adjusted Net Income (Non-GAAP)	$	2,843		$	1,966		$	3,217		$	2,492		$	3,119			$	10,517		$	8,703
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding		5,314,537			5,390,128			5,432,234			5,436,881			5,406,068				5,392,729			5,406,290
Earnings (Loss) per Common Share - Diluted (GAAP)	$	1.31		$	0.37		$	(0.04	)	$	0.52		$	0.57			$	2.15		$	(1.97	)
Adjusted Earnings per Common Share - Diluted (Non-GAAP)	$	0.53		$	0.36		$	0.59		$	0.46		$	0.58			$	1.95		$	1.61
Net Income (Loss) (GAAP) (Numerator)	$	6,965		$	1,983		$	(223	)	$	2,845		$	3,079			$	11,570		$	(10,640	)
Annualization Factor		3.97			3.97			4.01			4.06			3.98				1.00			1.00
Average Assets (Denominator)		1,477,509			1,469,277			1,485,664			1,424,732			1,412,848				1,464,455			1,378,074
Return on Average Assets (GAAP)		1.87	%		0.54	%		(0.06	) %		0.81	%		0.87	%			0.79	%		(0.77	) %
Adjusted Net Income (Non-GAAP) (Numerator)	$	2,843		$	1,966		$	3,217		$	2,492		$	3,119			$	10,517		$	8,703
Annualization Factor		3.97			3.97			4.01			4.06			3.98				1.00			1.00
Average Assets (Denominator)		1,477,509			1,469,277			1,485,664			1,424,732			1,412,848				1,464,455			1,378,074
Adjusted Return on Average Assets (Non-GAAP)		0.76	%		0.53	%		0.87	%		0.71	%		0.88	%			0.72	%		0.63	%

		Three Months Ended																						Year Ended
		12/31/21				9/30/21				6/30/21				3/31/21				12/31/20						12/31/21				12/31/20
(Dollars in thousands) (Unaudited)
Net Income (Loss) (GAAP) (Numerator)		$	6,965			$	1,983			$	(223	)		$	2,845			$	3,079					$	11,570			$	(10,640	)
Annualization Factor			3.97				3.97				4.01				4.06				3.98						1.00				1.00
Average Equity (Denominator) (GAAP)			131,892				132,661				134,875				135,037				134,093						133,605				148,132
Return on Average Equity (GAAP)			20.95	%			5.93	%			(0.66	) %			8.54	%			9.13	%					8.66	%			(7.18	) %
Adjusted Net Income (Non-GAAP) (Numerator)		$	2,843			$	1,966			$	3,217			$	2,492			$	3,119					$	10,517			$	8,703
Annualization Factor			3.97				3.97				4.01				4.06				3.98						1.00				1.00
Average Equity (Denominator) (GAAP)			131,892				132,661				134,875				135,037				134,093						133,605				148,132
Adjusted Return on Average Equity (Non-GAAP)			8.55	%			5.88	%			9.57	%			7.48	%			9.25	%					7.87	%			5.88	%

Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company’s total value.

		12/31/21				9/30/21				6/30/21				3/31/21				12/31/20
(Dollars in thousands, except share and per share data) (Unaudited)
Assets (GAAP)		$	1,425,479			$	1,474,818			$	1,461,613			$	1,476,821			$	1,416,720
Goodwill and Intangible Assets, Net			(15,027	)			(15,472	)			(15,918	)			(17,599	)			(18,131	)
Tangible Assets (Non-GAAP) (Numerator)		$	1,410,452			$	1,459,346			$	1,445,695			$	1,459,222			$	1,398,589
Stockholders' Equity (GAAP)		$	133,124			$	130,987			$	132,536			$	133,776			$	134,530
Goodwill and Intangible Assets, Net			(15,027	)			(15,472	)			(15,918	)			(17,599	)			(18,131	)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)		$	118,097			$	115,515			$	116,618			$	116,177			$	116,399
Stockholders’ Equity to Assets (GAAP)			9.3	%			8.9	%			9.1	%			9.1	%			9.5	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			8.4	%			7.9	%			8.1	%			8.0	%			8.3	%
Common Shares Outstanding (Denominator)			5,260,672				5,330,401				5,409,077				5,434,374				5,434,374
Book Value per Common Share (GAAP)		$	25.31			$	24.57			$	24.50			$	24.62			$	24.76
Tangible Book Value per Common Share (Non-GAAP)		$	22.45			$	21.67			$	21.56			$	21.38			$	21.42

Interest income on interest-earning assets, net interest rate spread and net interest margin are presented on a fully tax-equivalent (“FTE”) basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and securities using the federal statutory income tax rate of 21 percent. We believe the presentation of net interest income on a FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income, net interest spread and net interest margin on a FTE basis for the periods indicated:

		Three Months Ended																						Year Ended
		12/31/21				9/30/21				6/30/21				3/31/21				12/31/20						12/31/21				12/31/20
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)		$	10,963			$	10,786			$	10,820			$	10,988			$	11,755					$	43,557			$	47,467
Adjustment to FTE Basis			41				41				43				40				45						172				211
Interest Income (FTE) (Non-GAAP)			11,004				10,827				10,863				11,028				11,800						43,729				47,678
Interest Expense (GAAP)			732				776				886				1,011				1,121						3,405				5,563
Net Interest Income (FTE) (Non-GAAP)		$	10,272			$	10,051			$	9,977			$	10,017			$	10,679					$	40,324			$	42,115
Net Interest Rate Spread (GAAP)			2.85	%			2.77	%			2.72	%			2.91	%			3.07	%					2.81	%			3.13	%
Adjustment to FTE Basis			0.01				0.01				0.02				0.01				0.01						0.01				0.02
Net Interest Rate Spread (FTE) (Non-GAAP)			2.86				2.78				2.74				2.92				3.08						2.82				3.15
Net Interest Margin (GAAP)			2.95	%			2.88	%			2.84	%			3.04	%			3.21	%					2.92	%			3.30	%
Adjustment to FTE Basis			0.01				0.01				0.01				0.01				0.01						0.02				0.02
Net Interest Margin (FTE) (Non-GAAP)			2.96				2.89				2.85				3.05				3.22						2.94				3.32

Adjusted efficiency ratio excludes the effect of certain non-recurring or non-cash items and represents adjusted noninterest expense divided by adjusted operating revenue. The Company evaluates its operational efficiency based on its adjusted efficiency ratio and believes it provides additional perspective on its ongoing performance as well as peer comparability.

		Three Months Ended																						Year Ended
		12/31/21				9/30/21				6/30/21				3/31/21				12/31/20						12/31/21				12/31/20
(Dollars in thousands) (Unaudited)
Noninterest Expense (GAAP)		$	9,972			$	9,773			$	13,722			$	9,395			$	9,725					$	42,862			$	56,767
Net Interest and Dividend Income (GAAP)			10,231				10,010				9,934				9,977				10,634						40,152				41,904
Noninterest Income (GAAP)			8,689				2,198				2,219				3,174				2,778						16,280				9,471
Operating Revenue (GAAP)			18,920				12,208				12,153				13,151				13,412						56,432				51,375
Efficiency Ratio (GAAP)			52.71	%			80.05	%			112.91	%			71.44	%			72.51	%					75.95	%			110.50	%
Noninterest Expense (GAAP)		$	9,972			$	9,773			$	13,722			$	9,395			$	9,725					$	42,862			$	56,767
Less:
Other Real Estate Owned (Income)			(30	)			(89	)			(26	)			(38	)			(39	)					(183	)			(69	)
Amortization of Intangible Assets			445				446				503				532				532						1,926				2,128
Intangible Assets and Goodwill Impairment			—				—				1,178				—				—						1,178				18,693
Writedown on Fixed Assets			23				2				2,268				—				240						2,293				1,124
Adjusted Noninterest Expense (Non-GAAP)		$	9,534			$	9,414			$	9,799			$	8,901			$	8,992					$	37,648			$	34,891
Net Interest and Dividend Income (GAAP)			10,231				10,010				9,934				9,977				10,634						40,152				41,904
Noninterest Income (GAAP)			8,689				2,198				2,219				3,174				2,778						16,280				9,471
Less:
Net Gain on Securities			44				24				11				447				213						526				233
Gain on Sale of Branches			5,203				—				—				—				—						5,203				—
Net Loss on Disposal of Fixed Assets			—				—				(3	)			—				(13	)					(3	)			(61	)
Adjusted Noninterest Income (Non-GAAP)			3,442				2,174				2,211				2,727				2,578						10,554				9,299
Adjusted Operating Revenue (Non-GAAP)			13,673				12,184				12,145				12,704				13,212						50,706				51,203
Adjusted Efficiency Ratio (Non-GAAP)			69.73	%			77.27	%			80.68	%			70.06	%			68.06	%					74.25	%			68.14	%

Allowance for loan losses to total loans, excluding PPP loans, is a non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans.

		12/31/21				9/30/21				6/30/21				3/31/21				12/31/20
(Dollars in thousands) (Unaudited)
Allowance for Loan Losses		$	11,582			$	11,581			$	11,544			$	12,725			$	12,771
Total Loans			1,020,796			$	1,001,599				1,007,446			$	1,041,697			$	1,044,753
PPP Loans			(24,523	)			(32,703	)			(49,525	)			(60,380	)			(55,096	)
Total Loans, Excluding PPP Loans (Non-GAAP)		$	996,273			$	968,896			$	957,921			$	981,317			$	989,657
Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP)			1.16	%			1.20	%			1.21	%			1.30	%			1.29	%

 

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