Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE 

January 17, 2019

 

Codorus Valley Bancorp, Inc.

Reports Earnings For the Quarter and Year Ended December 31, 2018

 

YORK, Pa. – Codorus Valley Bancorp, Inc. (Codorus Valley, or the Corporation) (NASDAQ: CVLY), parent company of PeoplesBank, A Codorus Valley Company (PeoplesBank), today announced net income available to common shareholders (earnings) of $4.3 million or $0.46 per share basic and diluted, for the three months ended December 31, 2018, as compared to earnings of $1.5 million or $0.16 per share basic and diluted, for the three months ended December 31, 2017. For the year ended December 31, 2018, the Corporation earned $19.5 million or $2.08 per share basic and $2.06 per share diluted, compared to $12.0 million or $1.29 per share basic and $1.27 per share diluted, for the year ended December 31, 2017. The increase in net income and earnings per share, for the quarter and year, was partially the result of a $2.8 million reduction in the net deferred tax asset value at December 31, 2017 due to the new corporate tax rate of 21 percent enacted as part of the Tax Cuts and Jobs Act on December 22, 2017 that became effective January 1, 2018.

 

“Codorus Valley realized exceptional results, as measured by profit, people or processes, during 2018,” stated Larry J. Miller, Chairman, President/CEO. “On an annual basis, Codorus Valley Bancorp, Inc.’s net income in 2018 was over 30 percent more than the earnings realized in 2017, excluding the impact of the reduction in net deferred tax assets.” Miller added, “The Corporation continued to add to the breadth and depth of its management team, by recruiting Mr. Dennis Ginder to the position of Senior Vice President/Chief Credit Officer. And the Corporation further enhanced its digital processing capabilities, deploying a new online account opening platform and new online loan application process. Finally, a new full-service financial center was opened at 2343 Oregon Pike, Lancaster County, PA. By almost every measurement, 2018 was a successful year for Codorus Valley.”

 

The Corporation’s net interest income for the three months ended December 31, 2018 was $16.1 million, an increase of $0.5 million or 3.2 percent when compared to the net interest income of $15.6 million for the same period in 2017. For the full year of 2018, net interest income was $63.9 million, reflecting an increase of $4.4 million, or 7.4 percent, compared to $59.5 million for the same period in 2017. The Corporation’s net interest margin was 3.84 percent for the year ended December 31, 2018 and December 31, 2017.

 

 

 

 

The provision for loan losses for the three months ended December 31, 2018 was $0.9 million compared to $0.6 million for the same period in 2017. For the year ended December 31, 2018, the provision for loan losses was $2.7 million compared to $4.2 million for the same period in 2017. The Corporation’s nonperforming assets ratio was 1.46 percent as of December 31, 2018, an increase from 0.38 percent as of December 31, 2017.

 

Noninterest income for the fourth quarter of 2018 was $3.2 million, an increase of 1.8 percent compared to noninterest income of $3.2 million for the fourth quarter 2017. For the full year of 2018, noninterest income was $13.3 million an increase of 15.6 percent compared to $11.5 million for the full year of 2017. The increase in noninterest income, for the three months ended December 31, 2018, was attributed to increases in all categories of noninterest income, except income from bank owned life insurance and gain on sale of loans held for sale. The increase in noninterest income, for the year ended December 31, 2018, was attributed to increases in all categories of noninterest income, except income from bank owned life insurance.

 

Noninterest expense was $12.9 million for the fourth quarter of 2018, an increase of $1.1 million, or 9.3 percent, as compared to noninterest expense of $11.8 million for the fourth quarter of 2017. For the year ended December 31, 2018, noninterest expenses totaled $49.8 million, an increase of 10.7 percent compared to $45.0 million for the year ended December 31, 2017. Higher personnel expenses, charitable donations and external data processing costs accounted for the majority of the increase. The aforementioned higher costs were partially offset by a decline in telecommunications and other expenses.

 

Income tax expense for the quarter ended December 31, 2018 was $1.1 million versus $4.9 million for the same period in 2017. Income tax expense for the year ended December 31, 2018 was $5.2 million versus $9.9 million for the same period in 2017. The effective tax rates for the years ended December 31, 2018 and 2017 were 21.0 percent and 45.2 percent, respectively. Income tax expense and the effective tax rate decreased as a result of the new corporate tax rate enacted as part of the Tax Cuts and Jobs Act that became effective January 1, 2018, including the related additional income tax expense of $2.8 million recorded in 2017 for the reduction in deferred tax assets.

 

Other News

 

As recently announced, on January 9, 2019, the Board of Directors of the Corporation declared a regular quarterly cash dividend of $0.16 per share, payable on February 12, 2019 to shareholders of record at the close of business on January 22, 2019. The dividend represents a 3.2 percent increase above the cash dividend of $0.155 per share paid on November 13, 2018.

 

About Codorus Valley Bancorp, Inc.

 

Codorus Valley Bancorp, Inc. is the largest independent financial services holding company headquartered in York, Pennsylvania. Codorus Valley primarily operates through its financial services subsidiary, PeoplesBank, A Codorus Valley Company. PeoplesBank offers a full range of consumer, business, wealth management, and mortgage services at financial centers located in communities throughout South Central Pennsylvania and Central Maryland. Codorus Valley Bancorp, Inc.’s Common Stock is listed on the NASDAQ Global Market under the symbol CVLY.

 

 

 

 

Forward-looking Statements

 

Codorus Valley Bancorp, Inc. has made forward-looking statements in this Press Release. These forward-looking statements are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Corporation and its subsidiaries. When words such as “believes,” “expects,” “anticipates,” or similar expressions occur in this Press Release, the Corporation is making forward-looking statements. Note that many factors could affect the future financial results of the Corporation and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Press Release. Those factors include, but are not limited to: credit risk, changes in market interest rates, inability to achieve merger-related synergies, competition, economic downturn or recession, and government regulation and supervision. The Corporation provides greater detail regarding these as well as other factors in its 2017 Form 10-K and 2018 Form 10-Qs, including Risk Factors sections of those reports, and in its subsequent SEC filings. The Corporation undertakes no obligation to update or revise any forward-looking statements.

 

Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.

 

Questions or comments concerning this Press Release should be directed to:

 

Codorus Valley Bancorp, Inc.  
Larry J. Miller, Chairman, President and CEO Larry D. Pickett, CPA - Treasuer
717-747-1500 717-747-1502
lmiller@peoplesbanknet.com lpickett@peoplesbanknet.com

 

 

 

 

Codorus Valley Bancorp, Inc.

Financial Highlights

                   

Condensed Consolidated Statements of Income (Unaudited)

(in thousands of dollars, except per share data)

 

   Three months ended   Years ended 
   December 31,   December 31, 
   2018   2017   2018   2017 
Interest income  $21,098   $18,552   $80,321   $70,415 
Interest expense   5,034    2,985    16,401    10,868 
   Net interest income   16,064    15,567    63,920    59,547 
Provision for loan losses   900    600    2,700    4,175 
Noninterest income   3,247    3,188    13,314    11,522 
Noninterest expense   12,928    11,770    49,810    44,986 
   Income before income taxes   5,483    6,385    24,724    21,908 
Provision for income taxes   1,138    4,895    5,182    9,904 
   Net income  $4,345   $1,490   $19,542   $12,004 
Basic earnings per share  $0.46   $0.16   $2.08   $1.29 
Diluted earnings per share  $0.46   $0.16   $2.06   $1.27 

 

Condensed Consolidated Statements of Financial Condition (Unaudited)

(in thousands of dollars)

 

   December 31,   December 31, 
   2018   2017 
Cash and short term investments  $96,782   $79,524 
Investment securities   155,515    164,902 
Loans   1,489,807    1,401,479 
Allowance for loan losses   (19,144)   (16,689)
Net loans   1,470,663    1,384,790 
Premises and equipment, net   24,724    24,382 
Goodwill   2,301    2,301 
Other assets   57,495    53,306 
   Total assets  $1,807,480   $1,709,205 
           
Deposits  $1,495,280   $1,384,507 
Borrowed funds   122,332    150,805 
Other liabilities   11,122    9,674 
Shareholders’ equity   178,746    164,219 
   Total liabilities and shareholders’ equity  $1,807,480   $1,709,205 

 

 

 

 

Codorus Valley Bancorp, Inc. 

Financial Highlights

 

Selected Financial Data (Unaudited)

 

   Quarterly   Year-to-Date  
   2018   2018   2018   2018   2017   December 31,  
   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr   4th Qtr   2018   2017 

Earnings and Per Share Data (1)

                           
(in thousands, except per share data)                           
Net income available to common shareholders  $4,345   $5,060   $6,054   $4,083   $1,490   $19,542   $12,004 
Basic earnings per share  $0.46   $0.53   $0.65   $0.44   $0.16   $2.08   $1.29 
Diluted earnings per share  $0.46   $0.53   $0.64   $0.43   $0.16   $2.06   $1.27 
Cash dividends paid per share  $0.148   $0.148   $0.148   $0.148   $0.123   $0.592   $0.488 
Tangible book value per share (2)  $18.67   $18.22   $17.89   $17.43   $17.31   $18.67   $17.31 
Book value per share  $18.91   $18.46   $18.14   $17.68   $17.56   $18.91   $17.56 
Average shares outstanding   9,417    9,398    9,379    9,359    9,332    9,388    9,314 
Average diluted shares outstanding   9,502    9,505    9,487    9,455    9,452    9,479    9,423 
                                    
Performance Ratios (%)                                   
Return on average assets (3)   0.96    1.14    1.39    0.97    0.35    1.11    0.72 
Return on average equity (3)   9.84    11.66    14.36    9.87    3.58    11.42    7.40 
Return on average realized equity (3)(4)   9.63    11.45    14.10    9.74    3.57    11.22    7.38 
Net interest margin (5)   3.78    3.86    3.89    3.89    3.90    3.84    3.84 
Efficiency ratio (6)   66.43    60.30    58.73    70.76    61.59    63.95    62.07 
Net overhead ratio (3)(7)   2.15    1.95    1.85    2.38    2.04    2.08    2.03 
                                    
Asset Quality Ratios (%)                                   
Net loan (recoveries) charge-offs to average loans (3)   0.00    0.06    0.01    0.01    0.20    0.02    0.18 
Allowance for loan losses to total loans (8)   1.29    1.22    1.17    1.18    1.19    1.29    1.19 
Nonperforming assets to total loans and foreclosed real estate   1.46    1.00    0.40    0.40    0.38    1.46    0.38 
                                    
Capital Ratios (%)                                   
Average equity to average assets   9.80    9.74    9.65    9.80    9.88    9.75    9.79 
Tier 1 leverage capital ratio   10.46    10.39    10.37    10.43    10.26    10.46    10.26 
Common equity Tier 1 capital ratio   12.16    11.82    11.78    11.66    11.58    12.16    11.58 
Tier 1 risk-based capital ratio   12.84    12.49    12.47    12.36    12.29    12.84    12.29 
Total risk-based capital ratio   14.09    13.73    13.65    13.55    13.48    14.09    13.48 

 

(1) per share amounts and shares outstanding were adjusted for stock dividends

(2) book value less goodwill and core deposit intangibles

(3) annualized for the quarterly periods presented

(4) excludes accumulated other comprehensive income (loss), principally unrealized gains (losses) on investment securities

(5) net interest income (tax-equivalent) as a percentage of average interest earning assets

(6) noninterest expense as a percentage of net interest income and noninterest income (tax-equivalent)

(7) noninterest expense less noninterest income as a percentage of average assets

(8) excludes loans held for sale

 

Reconciliation of Non-GAAP Selected Financial Data (Unaudited)

(in thousands of dollars)

 

U.S. securities laws require that when we publish any non-GAAP financial measure, we disclose the reason for using the non-GAAP measure and provide reconciliation to the most directly comparable GAAP measure. The presentation of adjusted net income is a non-GAAP measure. Adjusted net income represents net income calculated in accordance with U.S. GAAP as adjusted for the impact of the Tax Cuts and Jobs Act on deferred tax assets representing a one-time non-cash charge.      

 

   Three months ended   Years ended 
   December 31,   December 31, 
   2018   2017   2018   2017 
                 
                 
Net income available to common shareholders reported (GAAP)  $4,345   $1,490   $19,542   $12,004 
Items impacting comparability:                    
Revaluation of net deferred tax asset due to corporate rate change   0    2,755    0    2,755 
Net income available to common shareholders Comparable (Non-GAAP)  $4,345   $4,245   $19,542   $14,759 

 

 


The following information was filed by Codorus Valley Bancorp Inc (CVLY) on Thursday, January 17, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Codorus Valley Bancorp Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Codorus Valley Bancorp Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

FREE Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue for FREE

Log in with your credentials

or    

Forgot your details?

Create Account