QNB Corp. Reports Earnings For Fourth Quarter 2023
QUAKERTOWN, Pa., Jan. 23, 2024 (GLOBE NEWSWIRE) -- QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the fourth quarter of 2023 of $1,134,000, or $0.31 per share on a diluted basis. This compares to net income of $5,447,000, or $1.52 per share on a diluted basis, for the same period in 2022. For the twelve months ended December 31, 2023, QNB reported net income of $9,483,000, or $2.63 per share on a diluted basis. This compares to net income of $15,921,000, or $4.47 per share on a diluted basis, reported for the same period in 2022.For the quarter ended December 31, 2023, the annualized rate of return on average assets and average shareholders’ equity was 0.26% and 2.83%, respectively, compared with 1.24% and 14.38%, respectively, for the fourth quarter 2022.
The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., declined for the quarter ended December 31, 2023, in comparison with the same period in 2022 due to interest margin compression causing a $1,150,000 decline in net interest income, additional provision for credit losses on loans and commitments of $1,143,000 and an increase in non-interest expense of $612,000. In the fourth quarter, we continued to improve the efficiency of our investment portfolio by executing a sale of $26 million in book value of low yielding fixed rate available-for-sale securities, booking a pre-tax loss of $1,801,000 in the fourth quarter of 2023 at the Bank; this compared to losses of $143,000 in 2022. The change in contribution from QNB Corp. for the quarter ended December 31, 2023, compared with the same period in 2022, is primarily due to the change in fair value of the equities portfolio held at the holding company.
The following table presents disaggregated net income:
Three months ended, Twelve months ended, 12/31/2023 12/31/2022 Variance 12/31/2023 12/31/2022 Variance
QNB Bank $ 827,000 $ 4,408,000 $ (3,581,000 ) $ 9,395,000 $ 16,445,000 $ (7,050,000 )
QNB Corp 307,000 1,039,000 (732,000 ) 88,000 (524,000 ) 612,000
Consolidated net income $ 1,134,000 $ 5,447,000 $ (4,313,000 ) $ 9,483,000 $ 15,921,000 $ (6,438,000 )
Total assets as of December 31, 2023 were $1,706,318,000 compared with $1,668,497,000 at December 31, 2022. Total available-for-sale debt securities decreased $15,209,000, or 3.0%, to $490,181,000, primarily due to sales. Loans receivable increased $33,083,000 to approximately $1,093,533,000, or 3.1%. Total deposits increased $5,380,000 to $1,488,713,000. Short-term borrowing declined $2,609,000, or 2.7%.
"2023 was a year filled with rising interest rates, compressing our margin and creating a decline in our net interest income. We were aggressive in our proactive moves to respond and structure our company for future profitability,” stated David W. Freeman, President and Chief Executive Officer. Freeman continued, “This quarter, our significant move was restructuring our investment portfolio, selling off underperforming securities, resulting in a pre-tax loss of $1.8 million impacting the fourth quarter earnings. We reinvested the security sale proceeds in cash, which will provide significantly higher yields, resulting in improved liquidity for our balance sheet and profitability. Coupling this with the interest-rate hedge contracts we entered earlier in 2023, we are better positioned going into 2024. Finally, I am pleased with the growth in our deposit balances and with the credit quality of our loan book, all indicators of our diligent focus on our core business.”
*Net Interest Income and Net Interest Margin *
Net interest income for the quarter and twelve months ended December 31, 2023 totaled $10,192,000 and $40,155,000 respectively, a decrease of $1,087,000 and $4,342,000, respectively, from the same periods in 2022. Net interest margin was 2.36% for the fourth quarter of 2023 and 2.72% for the same period in 2022. Net interest margin was 2.39% for the twelve months ended December 31, 2023, compared with 2.71% for the same period in 2022.
The yield on earning assets was 4.44% for the fourth quarter 2023, compared with 3.49% in the fourth quarter of 2022. For the twelve-month period ended December 31, 2023, yield on earning assets was 4.09%, compared with 3.18% for the same period in 2022. The cost of interest-bearing liabilities was 2.55% for the quarter and 2.11% for the twelve months ended December 31, 2023, compared with 1.03% and 0.60% for the same periods in 2022, respectively.
Proceeds from average short-term borrowings and proceeds from sales and payments received on investment securities over the past year were invested in loans and higher-yielding investments. Loan growth was primarily in commercial real estate, which comprised 42% of average earning assets in the twelve months of 2023 compared with 38% for the same period in 2022, and the increases in rates on both the commercial real estate loans and the commercial and industrial loans majorly contributed to the 95 basis-point increase in the yield on loans. The decline in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 23% of average earnings assets in the twelve months of 2023 compared with 27% for the same period in 2022. The 144 basis-point increase in the rate paid on deposits and the 201 basis-point increase in the rate on short-term borrowing were the primary contributors to the increase in the cost of funds of 151 basis points, contributing to the decrease in net interest margin.
*Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses*
QNB adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (CECL) effective January 1, 2023. QNB recorded a decrease to its allowance for loan losses of $1,089,000 and an increase to its reserve for unused commitments of $5,000. The impact of this CECL adjustment, net of deferred taxes, of $857,000 was added to shareholders' equity.
QNB recorded $291,000 in provision for credit losses on loans in the fourth quarter of 2023 compared to a reversal in provision of $850,000 in the fourth quarter of 2022; and reversed $828,000 in provision for credit losses on loans for the twelve months ended December 31, 2023 compared to a reversal in provision of $850,000 for the twelve months ended December 31, 2022. QNB's allowance for credit losses on loans of $8,852,000 represents 0.81% of loans receivable at December 31, 2023, compared to $9,442,000, or 0.91% of loans receivable upon the adoption of CECL on January 1, 2023. Net loan recoveries were $19,000 for the quarter and net recoveries of $238,000 for the twelve months ended December 31, 2023, compared with recoveries of $43,000 and $197,000 for the same periods in 2022, primarily due to commercial customers. Annualized net loan recoveries for the quarter ended December 31, 2023 was 0.01% and annualized net loan recoveries of 0.02% for the quarter ended December 31, 2022, of average loans receivable, respectively. Annualized net loan recoveries for the twelve months ended December 31, 2023 and December 31, 2022 were 0.02% and 0.02% of average loans receivable, respectively.
Total non-performing loans, which represent loans on non-accrual status, loans past due 90 days or more and still accruing interest and restructured loans, were $5,668,000, or 0.52% of loans receivable at December 31, 2023, compared with $9,121,000, or 0.88% of loans receivable at December 31, 2022. In cases where there is a collateral shortfall on non-accrual loans, specific impairment reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At December 31, 2023, $1,306,000, or approximately 67% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $11,747,000 at December 31, 2023, compared with $13,684,000 at December 31, 2022.
*Non-Interest Income*
Total non-interest income was $283,000 for the fourth quarter of 2023 compared with $2,997,000 for the same period in 2022. There was a net realized loss of $2,262,000 on the sale of investments for the quarter ended December 31, 2023 compared to a net loss of $227,000 on the sales of securities in the same period in 2022. Unrealized net gain on investment equity securities was $904,000 for the quarter ended December 31, 2023 compared to a net gain of $1,602,000 for the same period in 2022. The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 4.22%.
Fees for service to customers increase $10,000 for the quarter ended December 31, 2023, primarily due to overdraft fees. ATM and debit card income decreased $17,000 to $687,000 for the quarter ended December 31, 2023, income is related to card usage. Retail brokerage and advisory income increased $23,000 to $207,000 for the same period. Net gains on sales of loans increased $11,000 for the same period due to volume. Bank-owned life insurance decreased $9,000 for the same period.
For the twelve months ended December 31, 2023, non-interest income was $4,837,000 a decrease of $894,000 compared to the same period in 2022, primarily due to realized losses on sale of securities was $2,077,000, a decline of $2,343,000 for the twelve months ended December 31, 2023, compared with the same period in 2022. Unrealized gains related to the change in fair value of the equities portfolio was $250,000 for the twelve months ended December 31, 2023, an increase of $1,276,000 over the same period in 2022. Increases in non-interest income for the twelve months ended December 31, 2023 compared to the same period in 2022 comprise: fees for services to customers, ATM and debit card fees, and retail brokerage and advisory income, which increased $37,000, $16,000, and $74,000, respectively. Other non-interest income increased $36,000 due primarily to a sales tax refund of $115,000, partly offset by Bank-owned life insurance of $41,000 and a decrease in title insurance income of $32,000.
*Non-Interest Expense*
Total non-interest expense was $8,746,000 for the fourth quarter of 2023 compared with $8,119,000 for the same period in 2022. Salaries and benefits expense increased $253,000, or 5.7%, to $4,717,000 when comparing the two quarters. Salary expense and related payroll taxes increased $42,000, to $3,912,000 during the fourth quarter of 2023 compared to the same period in 2022. Benefits expense increased $211,000, when comparing the two periods.
Net occupancy and furniture and equipment expense increased $218,000, to $1,477,000 for the fourth quarter of 2023 due to software maintenance costs. Other non-interest expense increased $156,000 when comparing fourth quarter of 2023 with the same period in 2022 due to an increase in FDIC insurance of $119,000, an increase in marketing expense of $48,000 and write-offs due to fraud on customer accounts of $252,000, partly offset by decreases in Bank shares tax of $149,000, in telephone, postage and supplies of $56,000, and in third-party services of $50,000.
For the twelve months ended December 31, 2023, non-interest expense was $34,109,000, an increase of $2,617,000, or 8.3%, compared to the same period in 2022.
Provision for income taxes decreased $1,258,000 to $302,000 in the fourth quarter of 2023 due to decreased pre-tax income, compared with the same period in 2022. The effective tax rates for the quarter and twelve months ended December 31, 2023 were 21.0% and 19.1%, respectively, compared with 22.3% and 18.7%, respectively, for the same periods in 2022.
*About the Company*
QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.
*Forward Looking Statement*
This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Contacts: David W. Freeman Jeffrey Lehocky President & Chief Executive Officer Chief Financial Officer 215-538-5600 x-5619 215-538-5600 x-5716 dfreeman@qnbbank.com jlehocky@qnbbank.com*QNB Corp.*
*Consolidated Selected Financial Data (unaudited)*
*(Dollars in thousands)*
*Balance Sheet (Period End)* *12/31/23* *9/30/23* *6/30/23* *3/31/23* *12/31/22*
Assets $ 1,706,318 $ 1,684,392 $ 1,650,586 $ 1,626,499 $ 1,668,497
Cash and cash equivalents 62,657 55,141 34,824 14,201 15,899
Investment securities
Debt securities, AFS 490,181 505,390 527,741 537,904 546,525
Equity securities 5,910 4,765 5,424 11,908 12,056
Loans held-for-sale 549 446 810 388 -
Loans receivable 1,093,533 1,060,450 1,029,744 1,011,956 1,039,385
Allowance for loan losses (8,852 ) (8,542 ) (8,365 ) (8,191 ) (10,531 )
Net loans 1,084,681 1,051,908 1,021,379 1,003,765 1,028,854
Deposits 1,488,713 1,483,333 1,449,765 1,424,590 1,418,369
Demand, non-interest bearing 185,098 192,226 212,396 212,259 231,849
Interest-bearing demand, money market and savings 988,634 1,000,921 962,042 962,315 1,011,071
Time 314,981 290,186 275,327 250,016 175,449
Short-term borrowings 94,094 96,703 90,845 110,192 161,327
Long-term debt 20,000 20,000 20,000 - 10,000
Shareholders' equity 90,824 74,081 80,945 83,874 70,958
*Asset Quality Data (Period End)*
Non-accrual loans $ 1,940 $ 1,893 $ 4,794 $ 4,561 $ 4,820
Loans past due 90 days or more and still accruing - - - - -
Restructured loans 3,728 3,979 4,033 4,244 4,301
Non-performing loans 5,668 5,872 8,827 8,805 9,121
Other real estate owned and repossessed assets - - - - -
Non-performing assets $ 5,668 $ 5,872 $ 8,827 $ 8,805 $ 9,121
Allowance for loan losses $ 8,852 $ 8,542 $ 8,365 $ 8,191 $ 10,531
Non-performing loans / Loans excluding held-for-sale 0.52 % 0.55 % 0.86 % 0.87 % 0.88 %
Non-performing assets / Assets 0.33 % 0.35 % 0.53 % 0.54 % 0.55 %
Allowance for loan losses / Loans excluding held-for-sale 0.81 % 0.81 % 0.81 % 0.81 % 1.01 %
*QNB Corp.*
*Consolidated Selected Financial Data (unaudited)*
*(Dollars in thousands, except per share data)* *Three months ended,* *Twelve months ended,*
*For the period:* *12/31/23* *9/30/23* *6/30/23* *3/31/23* *12/31/22* *12/31/23* *12/31/22*
Interest income $ 19,257 $ 18,497 $ 15,865 $ 15,463 $ 14,739 $ 69,082 $ 52,421
Interest expense 9,065 8,284 6,532 5,046 3,460 28,927 7,924
*Net interest income* 10,192 10,213 9,333 10,417 11,279 40,155 44,497
Provision for credit losses 293 459 209 (1,805 ) (850 ) (844 ) (850 )
*Net interest income after provision for credit losses* 9,899 9,754 9,124 12,222 12,129 40,999 45,347
Non-interest income:
Fees for services to customers 414 421 414 402 404 1,651 1,614
ATM and debit card 687 685 704 659 704 2,735 2,719
Retail brokerage and advisory income 207 219 202 234 184 862 788
Net realized (loss) gain on investment securities (2,262 ) 131 519 (465 ) (227 ) (2,077 ) 266
Unrealized gain (loss) on equity securities 904 (138 ) (573 ) 57 1,602 250 (1,026 )
Net gain on sale of loans 11 4 (5 ) 6 - 16 6
Other 322 433 319 326 330 1,400 1,364
*Total non-interest income* 283 1,755 1,580 1,219 2,997 4,837 5,731
Non-interest expense:
Salaries and employee benefits 4,717 4,971 4,775 4,563 4,464 19,026 17,306
Net occupancy and furniture and equipment 1,477 1,504 1,467 1,377 1,259 5,825 5,112
Other 2,552 2,196 2,250 2,260 2,396 9,258 9,074
*Total non-interest expense* 8,746 8,671 8,492 8,200 8,119 34,109 31,492
*Income before income taxes* 1,436 2,838 2,212 5,241 7,007 11,727 19,586
Provision for income taxes 302 494 325 1,123 1,560 2,244 3,665
*Net income* $ 1,134 $ 2,344 $ 1,887 $ 4,118 $ 5,447 $ 9,483 $ 15,921
*Share and Per Share Data:*
Net income - basic $ 0.31 $ 0.65 $ 0.52 $ 1.15 $ 1.52 $ 2.63 $ 4.47
Net income - diluted $ 0.31 $ 0.65 $ 0.52 $ 1.15 $ 1.52 $ 2.63 $ 4.47
Book value $ 24.86 $ 20.35 $ 22.42 $ 23.32 $ 19.78 $ 24.86 $ 19.78
Cash dividends $ 0.37 $ 0.37 $ 0.37 $ 0.37 $ 0.36 $ 1.48 $ 1.44
Average common shares outstanding -basic 3,642,096 3,613,230 3,598,545 3,588,363 3,577,587 3,610,713 3,564,481
Average common shares outstanding -diluted 3,642,096 3,613,230 3,598,545 3,588,363 3,577,587 3,610,713 3,564,481
*Selected Ratios:*
Return on average assets 0.25 % 0.52 % 0.44 % 0.97 % 1.24 % 0.54 % 0.93 %
Return on average shareholders' equity 2.83 % 5.88 % 4.82 % 10.81 % 14.38 % 6.04 % 10.90 %
Net interest margin (tax equivalent) 2.36 % 2.38 % 2.27 % 2.55 % 2.68 % 2.39 % 2.71 %
Efficiency ratio (tax equivalent) 82.39 % 71.58 % 76.78 % 69.57 % 56.20 % 74.84 % 61.82 %
Average shareholders' equity to total average assets 8.93 % 8.91 % 9.12 % 8.99 % 8.65 % 8.99 % 8.54 %
Net loan charge-offs (recoveries) $ (19 ) $ 275 $ 38 $ (532 ) $ (43 ) $ (238 ) $ (197 )
Net loan charge-offs (recoveries) - annualized / Average loans excluding held-for-sale -0.01 % 0.10 % 0.01 % -0.21 % -0.02 % -0.02 % -0.02 %
*Balance Sheet (Average)*
Assets $ 1,779,627 $ 1,773,138 $ 1,719,368 $ 1,719,167 $ 1,737,679 $ 1,748,029 $ 1,710,449
Investment securities (AFS & Equities) 604,292 624,423 636,110 649,231 673,117 628,380 696,158
Loans receivable 1,072,616 1,039,351 1,026,881 1,021,265 1,020,102 1,040,121 967,438
Deposits 1,490,244 1,488,632 1,427,238 1,414,764 1,462,654 1,455,517 1,460,416
Shareholders' equity 158,987 158,063 156,890 154,503 150,281 157,126 146,088
*QNB Corp. (Consolidated)*
*Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)* *Three Months Ended* *December 31, 2023* *December 31, 2022* *Average* *Average* *Average* *Average* *Balance* *Rate* *Interest* *Balance* *Rate* *Interest*
*Assets*
Investment securities:
U.S. Treasury $ 7,255 5.19 % $ 95 $ 298 1.50 % $ 1
U.S. Government agencies 95,852 1.13 270 101,941 1.11 283
State and municipal 108,771 3.64 991 124,514 2.35 731
Mortgage-backed and CMOs 380,666 2.72 2,584 428,186 1.62 1,737
Corporate debt securities and mutual funds 6,708 4.40 74 6,647 4.38 73
Equities 5,040 4.98 63 11,531 3.50 102
Total investment securities 604,292 2.70 4,077 673,117 1.74 2,927
Loans:
Commercial real estate 751,629 5.18 9,809 678,061 4.43 7,578
Residential real estate 109,048 3.89 1,062 106,045 3.47 920
Home equity loans 60,599 6.76 1,032 58,860 5.63 835
Commercial and industrial 128,440 7.31 2,367 152,183 6.14 2,357
Consumer loans 3,732 7.71 72 4,298 6.65 72
Tax-exempt loans 19,556 3.66 180 20,655 3.44 179
Total loans, net of unearned income* 1,073,004 5.37 14,522 1,020,102 4.64 11,941
Other earning assets 57,432 5.52 800 4,360 3.93 43
Total earning assets 1,734,728 4.44 19,399 1,697,579 3.49 14,911
Cash and due from banks 13,539 12,854
Allowance for loan losses (8,668 ) (11,351 )
Other assets 40,028 38,597
Total assets $ 1,779,627 $ 1,737,679
*Liabilities and Shareholders' Equity*
Interest-bearing deposits:
Interest-bearing demand $ 321,858 0.83 % 673 $ 351,283 0.46 % 412
Municipals 141,524 4.78 1,704 127,252 2.91 933
Money market 223,646 3.39 1,910 132,282 0.65 216
Savings 305,502 1.27 979 433,930 0.79 863
Time < $100 144,386 3.39 1,234 91,196 0.88 201
Time $100 through $250 116,054 4.05 1,183 60,200 1.38 209
Time > $250 42,485 3.78 404 25,103 1.05 66
Total interest-bearing deposits 1,295,455 2.48 8,087 1,221,246 0.94 2,900
Short-term borrowings 97,402 3.08 755 106,295 1.94 520
Long-term debt 20,000 4.36 223 10,000 1.57 40
Total interest-bearing liabilities 1,412,857 2.55 9,065 1,337,541 1.03 3,460
Non-interest-bearing deposits 194,789 241,408
Other liabilities 12,994 8,449
Shareholders' equity 158,987 150,281
Total liabilities and
shareholders' equity $ 1,779,627 $ 1,737,679
Net interest rate spread 1.89 % 2.46 %
Margin/net interest income 2.36 % $ 10,334 2.68 % $ 11,451
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale
*QNB Corp. (Consolidated)*
*Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)* *Twelve Months Ended* *December 31, 2023* *December 31, 2022* *Average* *Average* *Average* *Average* *Balance* *Rate* *Interest* *Balance* *Rate* *Interest*
*Assets*
Investment securities:
U.S. Treasury $ 4,535 5.06 % $ 229 $ 524 1.18 % $ 6
U.S. Government agencies 100,409 1.11 1,119 101,455 1.10 1,119
State and municipal 109,598 2.89 3,164 128,126 2.39 3,056
Mortgage-backed and CMOs 399,599 2.14 8,555 447,369 1.58 7,059
Corporate debt securities and mutual funds 6,655 4.40 293 6,673 4.37 291
Equities 7,584 4.22 320 12,011 3.32 399
Total investment securities 628,380 2.18 13,680 696,158 1.71 11,930
Loans:
Commercial real estate 713,294 4.89 34,900 637,023 4.20 26,759
Residential real estate 107,379 3.73 4,005 104,397 3.34 3,484
Home equity loans 58,144 6.52 3,794 56,155 4.38 2,459
Commercial and industrial 137,966 7.50 10,344 145,579 5.10 7,432
Consumer loans 3,889 7.29 283 4,512 5.63 254
Tax-exempt loans 19,876 3.56 707 19,778 3.42 676
Total loans, net of unearned income* 1,040,548 5.19 54,033 967,444 4.24 41,064
Other earning assets 34,816 5.61 1,953 5,782 2.42 140
Total earning assets 1,703,744 4.09 69,666 1,669,384 3.18 53,134
Cash and due from banks 13,918 13,803
Allowance for loan losses (8,820 ) (11,287 )
Other assets 39,187 38,549
Total assets $ 1,748,029 $ 1,710,449
*Liabilities and Shareholders' Equity*
Interest-bearing deposits:
Interest-bearing demand $ 315,990 0.60 % 1,900 $ 345,054 0.27 % 933
Municipals 131,610 4.46 5,867 122,824 1.43 1,758
Money market 183,004 2.64 4,823 137,830 0.45 617
Savings 348,878 1.20 4,187 443,104 0.49 2,175
Time < $100 121,622 2.63 3,194 91,216 0.79 723
Time $100 through $250 107,560 3.59 3,859 52,314 0.93 489
Time > $250 38,076 3.08 1,171 25,296 0.83 209
Total interest-bearing deposits 1,246,740 2.01 25,001 1,217,638 0.57 6,904
Short-term borrowings 108,862 3.01 3,273 85,876 1.00 861
Long-term debt 15,712 4.10 653 10,000 1.57 159
Total interest-bearing liabilities 1,371,314 2.11 28,927 1,313,514 0.60 7,924
Non-interest-bearing deposits 208,777 242,778
Other liabilities 10,812 8,069
Shareholders' equity 157,126 146,088
Total liabilities and
shareholders' equity $ 1,748,029 $ 1,710,449
Net interest rate spread 1.98 % 2.58 %
Margin/net interest income 2.39 % $ 40,739 2.71 % $ 45,210
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale