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FRESNO, CALIFORNIA....January 26, 2023... The Board of Directors of Central Valley Community Bancorp (Company) (NASDAQ: CVCY), the parent company of Central Valley Community Bank (Bank), reported today unaudited consolidated net income of $26,645,000, and fully diluted earnings per common share of $2.27 for the year ended December 31, 2022, compared to $28,401,000 and $2.31 per fully diluted common share for the year ended December 31, 2021.

“The Company’s financial success in 2022 encompasses the full range of financial objectives, including earnings, growth, asset quality and liquidity,” said James J. Kim, President and CEO. “The positive result of these metrics is due, in no small part, to our team. First and foremost, I want to thank them for their service through a volatile year. We also deeply appreciate the support of our clients, shareholders and our communities, all of which contribute to our success.”

For the quarter ended December 31, 2022, the Company reported unaudited consolidated net income of $7,633,000 and earnings per diluted common share of $0.65, compared to consolidated net income of $6,838,000 and $0.57 per diluted share for the same period in 2021. Net income for the period was affected by an increase in net interest income before provision for credit losses of $3,285,000 and a decrease in total non-interest expenses of $610,000, partially offset by a decrease in non-interest income of $1,811,000 and an increase in the provision for income taxes of $289,000. The effective tax rate increased to 25.97% from 25.89% for the quarters ended December 31, 2022 and December 31, 2021, respectively. Net income for the immediately trailing quarter ended September 30, 2022 was $6,384,000, or $0.55 per diluted common share.

Annualized return on average equity (ROE) for the fourth quarter of 2022 was 18.79%, compared to 11.21% for the same period of 2021. The increase in ROE reflects a decrease in average shareholders’ equity compared to the prior year. The decrease in shareholders’ equity was primarily driven by a $88,859,000 increase in net unrealized loss on investment securities, dividends paid, and stock repurchases, partially offset by the retention of earnings. Annualized return on average assets (ROA) was 1.25% for the fourth quarter of 2022 compared to 1.13% for the same period in 2021. This increase was due to the increase in net income outpacing the relative increase in average assets.

In comparing the fourth quarter of 2022 to the fourth quarter of 2021, total average loans increased by $191,011,000, or 18.23%. This mix includes a decrease of $40,417,000 in PPP loans, and an increase of $231,428,000 in non-PPP loans. During the fourth quarter of 2022, the Company recorded net loan charge-offs of $18,000 compared to $39,000 net loan recoveries for the same period in 2021. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was 0.01% for the quarter ended December 31, 2022 compared to (0.01)% for the quarter ended December 31, 2021. During the quarter ended December 31, 2022, the Company recorded a provision of $500,000 for credit losses, compared to a reversal of provision of $500,000 for the quarter ended December 31, 2021.

The Company’s net interest margin (fully tax equivalent basis) was 3.80% for the quarter ended December 31, 2022, compared to 3.39% for the quarter ended December 31, 2021. Net interest income, before provision for credit losses, increased $3,285,000, or 17.56%, to $21,993,000 for the fourth quarter of 2022, compared to $18,708,000 for the same period in 2021. The accretion on loan marks of acquired loans increased interest income by $76,000 and $223,000 during the quarters ended December 31, 2022 and 2021, respectively. Net interest income during the fourth quarters of 2022 and 2021 benefited by approximately $87,000 and $238,000, respectively, from prepayment penalties and payoff of loans. The net interest margin period-to-period comparisons were impacted by the increase in the yield on the average investment securities and the increase in the yield on the loan portfolio, offset by the increase in the yield on total interest-bearing liabilities. Over the same periods, the cost of total deposits increased to 0.09% from 0.05%.

For the quarter ended December 31, 2022, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, decreased by $85,715,000, or 7.22%, compared to the quarter ended December 31, 2021, and decreased by $1,114,000, or 0.09%, compared to the quarter ended September 30, 2022. This decrease was the result of sales and maturities that occurred during the fourth quarter of 2022. The year over year decrease was primarily the result of the increase in the unrealized loss on available for sale securities.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.76% for the quarter ended December 31, 2022, compared to 2.02% for the quarter ended December 31, 2021 and 2.46% for the quarter ended September 30, 2022. Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased by $191,011,000 to $1,238,752,000 for the quarter ended December 31, 2022, from $1,047,741,000 for the quarter ended December 31, 2021 and increased by $48,730,000 from $1,190,022,000 for the quarter ended September 30, 2022. For the quarter ended December 31, 2022, average PPP loans decreased $40,417,000 while average non-PPP loans increased $231,428,000 compared to the quarter ended December 31, 2021. The effective yield on average loans was 5.17% for the quarter ended December 31, 2022, compared to 5.14% and 4.90% for the quarters ended December 31, 2021 and September 30, 2022, respectively.

Total average deposits increased $65,717,000, or 3.12%, to $2,169,075,000 for the quarter ended December 31, 2022, compared to $2,103,358,000 for the quarter ended December 31, 2021, and decreased $21,443,000, or 0.99%, compared to $2,147,632,000 for the quarter ended September 30, 2022. The Company’s ratio of average non-interest bearing deposits to total deposits was 50.42% for the quarter ended December 31, 2022, compared to 44.92% and 48.50% for the quarters ended December 31, 2021 and September 30, 2022, respectively.


	Three months ended
(Dollars in thousands)	December 31, 2022		September 30, 2022		$ Change		% Change
Service charges	$	457	$	475	$	(18)	(3.8)	%
Appreciation in cash surrender value of bank owned life insurance	248		249		(1)		(0.4)	%
Interchange fees	495		432		63		14.6	%
Loan placement fees	177		155		22		14.2	%

Net realized losses on sales and calls of investment securities	(953)		(14)		(939)		6707.1	%
Federal Home Loan Bank dividends	109		91		18		19.8	%
Other Income	437		92		345		375.0	%
Total non-interest income	$	970	$	1,480	$	(510)	(34.5)	%

The following table presents the key components of non-interest income for the periods indicated:


	Three months ended
(Dollars in thousands)	December 31, 2022		December 31, 2021		$ Change		% Change
Service charges	$	457	$	515	$	(58)	(11.3)	%
Appreciation in cash surrender value of bank owned life insurance	248		244		4		1.6	%
Interchange fees	495		471		24		5.1	%
Loan placement fees	177		340		(163)		(47.9)	%

Net realized (losses) gains on sales and calls of investment securities	(953)		463		(1,416)		(305.8)	%
Federal Home Loan Bank dividends	109		84		25		29.8	%
Other Income	437		664		(227)		(34.2)	%
Total non-interest income	$	970	$	2,781	$	(1,811)	(65.1)	%

This decrease was primarily the result of an increase in net realized losses on sales of investment securities and a decrease in other income, which was from a decrease in fair value on equity investments recognized during the quarter ended December 31, 2022 compared to the quarter ended December 31, 2021. The decrease in loan placement fees was also responsible for the decrease in total non-interest income when comparing the quarters ended December 31, 2022 and December 31, 2021.

Non-Interest Expense - The following table presents the key components of non-interest expense for the current and trailing quarterly periods indicated:


	Three months ended
(Dollars in thousands)	December 31, 2022		September 30, 2022		$ Change		% Change
Salaries and employee benefits	$	7,416	$	7,500	$	(84)	(1.1)	%
Occupancy and equipment	1,262		1,363		(101)		(7.4)	%
Information Technology	879		879		—		—	%
Regulatory assessments	211		224		(13)		(5.8)	%
Data processing expense	596		560		36		6.4	%
Professional services	68		613		(545)		(88.9)	%
ATM/Debit card expenses	221		176		45		25.6	%
Internet banking expense	36		29		7		24.1	%
Advertising	141		138		3		2.2	%
Directors’ expenses	98		91		7		7.7	%



Amortization of core deposit intangibles	34		139		(105)		(75.5)	%
Loan related expenses	51		152		(101)		(66.4)	%
Personnel other	104		57		47		82.5	%

Other expense	1,035		877		158		18.0	%
Total non-interest expenses	$	12,152	$	12,798	$	(646)	(5.0)	%

The following table presents the key components of non-interest expense for the periods indicated:


	Three months ended
(Dollars in thousands)	December 31, 2022		December 31, 2021		$ Change		% Change
Salaries and employee benefits	$	7,416	$	7,712	$	(296)	(3.8)	%
Occupancy and equipment	1,262		1,344		(82)		(6.1)	%
Information Technology	879		807		72		8.9	%
Regulatory assessments	211		279		(68)		(24.4)	%
Data processing expense	596		553		43		7.8	%
Professional services	68		327		(259)		(79.2)	%
ATM/Debit card expenses	221		203		18		8.9	%
Internet banking expense	36		58		(22)		(37.9)	%
Advertising	141		141		—		—	%
Directors’ expenses	98		116		(18)		(15.5)	%



Amortization of core deposit intangibles	34		140		(106)		(75.7)	%
Loan related expenses	51		88		(37)		(42.0)	%
Personnel other	104		139		(35)		(25.2)	%

Other expense	1,035		855		180		21.1	%
Total non-interest expenses	$	12,152	$	12,762	$	(610)	(4.8)	%


Loan Type (dollars in thousands)	December 31, 2022		% of Total Loans		December 31, 2021		% of Total Loans
Commercial:
Commercial and industrial	$	141,197	11.2	%	$	136,847	13.2	%
Agricultural production	39,007		3.1	%	40,860		3.9	%
Total commercial	180,204		14.3	%	177,707		17.1	%
Real estate:
Owner occupied	194,663		15.5	%	212,234		20.4	%
Real estate construction and other land loans	109,175		8.7	%	61,586		5.9	%
Commercial real estate	464,809		37.1	%	369,529		35.6	%
Agricultural real estate	117,648		9.4	%	98,481		9.5	%
Other real estate	24,586		2.0	%	26,084		2.5	%
Total real estate	910,881		72.7	%	767,914		73.9	%
Consumer:
Equity loans and lines of credit	123,581		9.8	%	55,620		5.4	%
Consumer and installment	40,252		3.2	%	36,999		3.6	%
Total consumer	163,833		13.0	%	92,619		9.0	%
Net deferred origination fees	1,386				871
Total gross loans	1,256,304		100.0	%	1,039,111		100.0	%
Allowance for credit losses	(10,848)				(9,600)
Total loans	$	1,245,456			$	1,029,511

At December 31, 2022, the allowance for credit losses was $10,848,000, compared to $9,600,000 at December 31, 2021, a net increase of $1,248,000 reflecting a provision of $1,000,000 and net recoveries during the period. The Company is not required to implement the provisions of the CECL accounting standard until January 1, 2023, and is continuing to account for the allowance for credit losses under the incurred loss model. The allowance for credit losses as a percentage of total loans was 0.86% and 0.92% as of December 31, 2022 and December 31, 2021, respectively. Total loans include loans acquired in the acquisitions of Folsom Lake Bank on October 1, 2017, Sierra Vista Bank on October 1, 2016 and Visalia Community Bank on July 1, 2013 that, at their

respective acquisition dates, were recorded at fair value and did not have a related allowance for credit losses. The recorded value of acquired loans totaled $73,456,000 at December 31, 2022 and $93,201,000 at December 31, 2021. Excluding these acquired loans from the calculation, the allowance for credit losses to total gross loans was 0.92% and 1.01% as of December 31, 2022 and December 31, 2021, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 0.89% and 0.98%, respectively. As of December 31, 2022, gross loans included $333,000 related to PPP loans, which are fully guaranteed by the SBA as compared to $18,553,000 at December 31, 2021. Excluding PPP loans and the acquired loans from the calculation, the allowance for credit losses to total gross loans was 0.92% and 1.04% as of December 31, 2022 and December 31, 2021, respectively. The Company believes the allowance for credit losses is adequate to provide for probable incurred credit losses within the loan portfolio at December 31, 2022.

The composition of the deposits at December 31, 2022 and December 31, 2021 is summarized in the table below:


(Dollars in thousands)	December 31, 2022		% of Total Deposits		December 31, 2021		% of Total Deposits
NOW accounts	$	324,089	15.4	%	$	360,462	17.0	%
MMA accounts	435,783		20.8	%	511,448		24.1	%
Time deposits	67,923		3.2	%	90,030		4.2	%
Savings deposits	215,287		10.3	%	197,273		9.3	%
Total interest-bearing	1,043,082		49.7	%	1,159,213		54.6	%
Non-interest bearing	1,056,567		50.3	%	963,584		45.4	%
Total deposits	$	2,099,649	100.0	%	$	2,122,797	100.0	%

Net income for the year ended December 31, 2022 decreased 6.18%, compared to the year ended December 31, 2021, driven by a provision for credit losses, a decrease in loan placement fees, an increase in the net realized loss on sales of investment securities, partially offset by an increase in service charge income, and a decrease in the provision for income taxes. During the year ended December 31, 2022, the Company recorded a $1,000,000 provision for credit losses, compared to a $4,300,000 reversal of provision during the year ended December 31, 2021. Net interest income before the provision for credit losses for the year ended December 31, 2022 was $79,566,000, compared to $72,554,000 for the year ended December 31, 2021, an increase of $7,012,000 or 9.66%. The impact to interest income from the accretion of the loan marks on acquired loans was $521,000 and $802,000 for the year ended December 31, 2022 and 2021, respectively. In addition, net interest income before the provision for credit losses for the year ended December 31, 2022 was impacted by approximately $649,000 in loan prepayment penalties, as compared to $676,000 for the year ended December 31, 2021. Excluding the loan mark accretion and prepayment penalties, net interest income for the year ended December 31, 2022 increased by $7,320,000 compared to the year ended December 31, 2021.

During the year ended December 31, 2022, the Company’s shareholders’ equity decreased $73,185,000, or 29.53%, compared to December 31, 2021. The decrease in shareholders’ equity was driven by the adverse change in the unrealized position on investment securities, and share repurchases, offset by the retention of earnings, net of dividends paid. The change in the unrealized position was a loss in the amount of $88,859,000.

Return on average equity (ROE) for the year ended December 31, 2022 was 14.25%, compared to 11.50% for the year ended December 31, 2021. The increase in ROE reflects the decrease in average shareholders’ equity compared to the prior year. The Company declared and paid $0.48 and $0.47 per share in cash dividends to holders of common stock during the year ended December 31, 2022 and 2021, respectively. Return on average assets (ROA) was 1.09% for the year ended December 31, 2022 and 1.25% for the year ended December 31, 2021. This decrease was due to the decrease in net income and an increase in average assets. During the year ended December 31, 2022, the Company’s total assets decreased 1.13%, and total liabilities increased 2.07%, compared to December 31, 2021.

Non-performing assets decreased by $946,000, or 100.00%, to $0 at December 31, 2022, compared to $946,000 at December 31, 2021. During the year ended December 31, 2022, the Company recorded $248,000 in net loan recoveries, compared to $985,000 for the year ended December 31, 2021. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was (0.02)% for the year ended December 31, 2022, compared to (0.09)% for the same period in 2021. Total non-performing assets were 0.00% and 0.04% of total assets as of December 31, 2022 and December 31, 2021, respectively.

For the year ended December 31, 2022, the effective yield on average total earning assets increased 5 basis points to 3.66% compared to 3.61% for the year ended December 31, 2021, while the cost of average total interest-bearing liabilities increased to 0.28% for the year ended December 31, 2022 as compared to 0.12% for the year ended December 31, 2021. Over the same periods, the cost of average total deposits increased to 0.06% for the year ended December 31, 2022 compared to 0.05% for the same period in 2021.

For the year ended December 31, 2022, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $1,180,125,000, an increase of $158,452,000, or 15.51%, compared to the year ended December 31, 2021. The effective yield on average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased to 2.45% for the year ended December 31, 2022, compared to 2.08% for the year ended December 31, 2021.

Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased $64,266,000 to $1,133,919,000 for the year ended December 31, 2022 from $1,069,653,000 for the year ended December 31, 2021. The effective yield on average loans decreased to 4.93% for the year ended December 31, 2022, compared to 5.07% for the year ended December 31, 2021. Total average PPP loans, which have a 1.00% interest rate in addition to loan fees, were $3,786,000 for the year ended December 31, 2022 as compared to $116,030,000 at December 31, 2021. Excluding PPP loans from total average loans, the effective yield on average loans for the year ended December 31, 2022 was immaterially impacted. As of December 31, 2021 the effective yield on average loans was 4.85% after excluding PPP loans.


	Year ended
(Dollars in thousands)	December 31, 2022		December 31, 2021		$ Change		% Change
Service charges	$	2,014	$	1,901	$	113	5.9	%
Appreciation in cash surrender value of bank owned life insurance	985		840		145		17.3	%
Interchange fees	1,847		1,784		63		3.5	%
Loan placement fees	899		1,974		(1,075)		(54.5)	%

Net realized (losses) gains on sales and calls of investment securities	(1,730)		501		(2,231)		(445.3)	%
Federal Home Loan Bank dividends	367		321		46		14.3	%
Other Income	672		1,684		(1,012)		(60.1)	%
Total non-interest income	$	5,054	$	9,005	$	(3,951)	(43.9)	%

The decrease in non-interest income was the result of an increase in net realized losses on sales of investment securities and a decrease in other income, which resulted from a decrease in fair value on equity investments recognized during the year ended December 31, 2022 compared to the year ended December 31, 2021. The decrease in loan placement fees and change in other miscellaneous processing fees were also responsible for the decrease in total non-interest income when comparing the years ended December 31, 2022 and December 31, 2021.

Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated:


	Year ended
(Dollars in thousands)	December 31, 2022		December 31, 2021		$ Change		% Change
Salaries and employee benefits	$	28,917	$	28,720	$	197	0.7	%
Occupancy and equipment	5,131		4,882		249		5.1	%
Information Technology	3,344		2,868		476		16.6	%
Regulatory assessments	851		831		20		2.4	%
Data processing expense	2,245		2,394		(149)		(6.2)	%
Professional services	1,519		1,665		(146)		(8.8)	%
ATM/Debit card expenses	809		818		(9)		(1.1)	%
Internet banking expense	134		320		(186)		(58.1)	%
Advertising	557		527		30		5.7	%
Directors’ expenses	282		422		(140)		(33.2)	%



Amortization of core deposit intangibles	454		661		(207)		(31.3)	%
Loan related expenses	341		357		(16)		(4.5)	%
Personnel other	323		374		(51)		(13.6)	%

Other expense	3,572		3,003		569		18.9	%
Total non-interest expenses	$	48,479	$	47,842	$	637	1.3	%

Total average assets for the year ended December 31, 2022 was $2,439,394,000 compared to $2,267,615,000 for the year ended December 31, 2021, an increase of $171,779,000 or 7.58%. During the year ended December 31, 2022 and 2021, the loan-to-deposit ratio was 59.83% and 48.95%, respectively. Total average deposits increased $181,516,000 or 9.19% to $2,156,092,000 for the year ended December 31, 2022, compared to $1,974,576,000 for the year ended December 31, 2021. Average interest-bearing deposits increased $75,088,000, or 6.99%, and average non-interest bearing demand deposits increased $106,428,000, or 11.82%, for the year ended December 31, 2022, compared to the year ended December 31, 2021. The Company’s ratio of average non-interest bearing deposits to total deposits was 46.68% for the year ended December 31, 2022, compared to 45.58% for the year ended December 31, 2021.

Forward-looking Statements- Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are forward-looking in nature and involve a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to (1) significant increases in competitive pressure in the banking industry; (2) the impact of changes in interest rates; (3) a decline in economic conditions in the Central Valley and the Greater Sacramento Region, including the impact of inflation; (4) the Company’s ability to continue its internal growth at historical rates; (5) the Company’s ability to maintain its net interest margin; (6) the decline in quality of the Company’s earning assets; (7) a decline in credit quality; (8) changes in the regulatory environment; (9) fluctuations in the real estate market; (10) changes in business conditions and inflation; (11) changes in securities markets (12) risks associated with acquisitions, relating to difficulty in integrating combined operations and related negative impact on earnings, and incurrence of substantial expenses; (13) political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, pandemic diseases or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; (14) the other risks set forth in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.


	December 31,		September 30,		December 31,
(In thousands, except share amounts)	2022		2022		2021

ASSETS
Cash and due from banks	$	25,485	$	32,535	$	29,412
Interest-earning deposits in other banks	5,685		9,043		134,055

Total cash and cash equivalents	31,170		41,578		163,467
Available-for-sale investment securities	648,825		668,300		1,109,208
Held-to-maturity investment securities	305,107		305,482		—
Equity securities	6,558		6,544		7,416
Loans, less allowance for credit losses of $10,848, $10,366, and $9,600 at December 31, 2022, September 30, 2022, and December 31, 2021, respectively	1,245,456		1,214,904		1,029,511
Bank premises and equipment, net	7,987		7,909		8,380

Bank owned life insurance	40,537		40,289		39,553
Federal Home Loan Bank stock	6,169		6,169		5,595
Goodwill	53,777		53,777		53,777
Core deposit intangibles	68		102		522
Accrued interest receivable and other assets	76,865		80,644		32,710
Total assets	$	2,422,519	$	2,425,698	$	2,450,139

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	1,056,567	$	1,044,678	$	963,584
Interest bearing	1,043,082		1,094,466		1,159,213
Total deposits	2,099,649		2,139,144		2,122,797
Short-term borrowings	46,000		25,000		—

Senior debt and subordinated debentures	69,599		69,563		39,454
Accrued interest payable and other liabilities	32,611		33,177		40,043
Total liabilities	2,247,859		2,266,884		2,202,294
Shareholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding	—		—		—
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,735,291, 11,732,011, and 11,916,651, at December 31, 2022, September 30, 2022, and December 31, 2021, respectively	61,487		61,262		66,820

Retained earnings	194,400		188,174		173,393
Accumulated other comprehensive (loss) income, net of tax	(81,227)		(90,622)		7,632
Total shareholders’ equity	174,660		158,814		247,845
Total liabilities and shareholders’ equity	$	2,422,519	$	2,425,698	$	2,450,139

(Unaudited)


	For the Three Months Ended,						For the Years Ended
	December 31,		September 31,		December 31,		December 31,
(In thousands, except share and per-share amounts)	2022		2022		2021		2022		2021

INTEREST INCOME:
Interest and fees on loans	$	16,155	$	14,708	$	13,548	$	55,907	$	54,077
Interest on deposits in other banks	234		48		40		391		129

Interest and dividends on investment securities:
Taxable	5,426		4,411		4,106		20,011		14,044
Exempt from Federal income taxes	1,534		1,825		1,463		6,679		5,606
Total interest income	23,349		20,992		19,157		82,988		73,856
INTEREST EXPENSE:
Interest on deposits	483		231		253		1,197		1,036
Interest on subordinated debentures and borrowings	873		597		196		2,225		266

Total interest expense	1,356		828		449		3,422		1,302
Net interest income before provision for credit losses	21,993		20,164		18,708		79,566		72,554
PROVISION FOR (REVERSAL OF) CREDIT LOSSES	500		500		(500)		1,000		(4,300)
Net interest income after provision for credit losses	21,493		19,664		19,208		78,566		76,854
NON-INTEREST INCOME:
Service charges	457		475		515		2,014		1,901






Net realized (losses) gains on sales and calls of investment securities	(953)		(14)		463		(1,730)		501





Other income	1,466		1,019		1,803		4,770		6,603
Total non-interest income	970		1,480		2,781		5,054		9,005
NON-INTEREST EXPENSES:
Salaries and employee benefits	7,416		7,500		7,712		28,917		28,720
Occupancy and equipment	1,262		1,363		1,344		5,131		4,882














Other expense	3,474		3,935		3,706		14,431		14,240
Total non-interest expenses	12,152		12,798		12,762		48,479		47,842
Income before provision for income taxes	10,311		8,346		9,227		35,141		38,017
PROVISION FOR INCOME TAXES	2,678		1,962		2,389		8,496		9,616
Net income	$	7,633	$	6,384	$	6,838	$	26,645	$	28,401



Net income per common share:
Basic earnings per common share	$	0.65	$	0.55	$	0.57	$	2.27	$	2.32
Weighted average common shares used in basic computation	11,690,410		11,678,532		11,956,045		11,715,376		12,237,424
Diluted earnings per common share	$	0.65	$	0.55	$	0.57	$	2.27	$	2.31
Weighted average common shares used in diluted computation	11,708,753		11,689,323		11,994,590		11,739,074		12,281,932
Cash dividends per common share	$	0.12	$	0.12	$	0.12	$	0.48	$	0.47


	Dec. 31,		Sept. 30,		Jun. 30,		Mar. 31,		Dec. 31,
For the three months ended	2022		2022		2022		2022		2021
(In thousands, except share and per share amounts)
Net interest income	$	21,993	$	20,164	$	19,810	$	17,597	$	18,708
Provision for (reversal of) credit losses	500		500		—		—		(500)
Net interest income after provision for credit losses	21,493		19,664		19,810		17,597		19,208
Total non-interest income	970		1,480		770		1,834		2,781
Total non-interest expense	12,152		12,798		12,083		11,445		12,762
Provision for income taxes	2,678		1,962		1,955		1,900		2,389
Net income	$	7,633	$	6,384	$	6,542	$	6,086	$	6,838

Basic earnings per common share	$	0.65	$	0.55	$	0.56	$	0.51	$	0.57
Weighted average common shares used in basic computation	11,690,410		11,678,532		11,665,074		11,829,245		11,956,045
Diluted earnings per common share	$	0.65	$	0.55	$	0.56	$	0.51	$	0.57
Weighted average common shares used in diluted computation	11,708,753		11,689,323		11,685,850		11,872,025		11,994,590


	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
As of and for the three months ended	2022			2022			2022			2022			2021
(Dollars in thousands, except per share amounts)
Allowance for credit losses to total loans	0.86		%	0.85		%	0.87		%	0.97		%	0.92		%
Non-performing assets to total assets	—		%	0.01		%	0.01		%	0.01		%	0.04		%
Total non-performing assets	$	—		$	251		$	271		$	292		$	946
Total nonaccrual loans	$	—		$	251		$	271		$	292		$	946
Total substandard loans	$	27,785		$	22,657		$	10,756		$	10,739		$	8,540
Total special mention loans	$	31,023		$	30,894		$	34,509		$	39,901		$	40,845
Net loan charge-offs (recoveries)	$	18		$	7		$	(9)		$	(264)		$	(39)
Net charge-offs (recoveries) to average loans (annualized)	0.01		%	—		%	—		%	(0.10)		%	(0.01)		%
Book value per share	$	14.88		$	13.54		$	13.90		$	16.31		$	20.80
Tangible book value per share	$	10.30		$	8.94		$	9.29		$	11.70		$	16.24
Tangible common equity	$	120,814		$	104,935		$	108,863		$	137,501		$	193,546
Cost of total deposits	0.09		%	0.04		%	0.04		%	0.05		%	0.05		%
Interest and dividends on investment securities exempt from Federal income taxes	$	1,534		$	1,825		$	1,879		$	1,440		$	1,463
Net interest margin (calculated on a fully tax equivalent basis) (1)	3.80		%	3.57		%	3.48		%	3.19		%	3.39		%
Return on average assets (2)	1.25		%	1.06		%	1.07		%	0.99		%	1.13		%
Return on average equity (2)	18.79		%	14.42		%	14.73		%	10.51		%	11.21		%
Loan to deposit ratio	59.83		%	57.28		%	53.94		%	46.80		%	48.95		%
Efficiency ratio	49.85		%	57.20		%	54.20		%	57.66		%	58.94		%
Tier 1 leverage - Bancorp	8.37		%	8.26		%	7.89		%	7.87		%	8.03		%
Tier 1 leverage - Bank	10.86		%	10.73		%	9.10		%	8.54		%	8.47		%
Common equity tier 1 - Bancorp	11.92		%	11.56		%	11.94		%	12.06		%	12.48		%
Common equity tier 1 - Bank	15.87		%	15.41		%	14.15		%	13.43		%	13.52		%
Tier 1 risk-based capital - Bancorp	12.22		%	11.86		%	12.26		%	12.38		%	12.82		%
Tier 1 risk-based capital - Bank	15.87		%	15.41		%	14.15		%	13.43		%	13.52		%
Total risk-based capital - Bancorp	14.92		%	14.54		%	15.07		%	15.27		%	15.80		%
Total risk based capital - Bank	16.53		%	16.03		%	14.78		%	14.08		%	14.18		%


	For the Three Months Ended									For the Years Ended
AVERAGE AMOUNTS	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands)	2022			2022			2021			2022			2021

Interest-bearing deposits in other banks	$	24,607		$	6,192		$	104,725		$	48,032		$	104,710
Investments	1,076,245			1,095,774			1,081,842			1,132,093			916,963
Loans (1)	1,238,592			1,189,762			1,046,602			1,133,641			1,067,316
Earning assets	2,339,444			2,291,728			2,233,169			2,313,766			2,088,989
Allowance for credit losses	(10,436)			(9,877)			(10,036)			(10,005)			(11,482)
Nonaccrual loans	160			260			1,139			278			2,337

Other non-earning assets	112,484			132,303			192,318			135,355			187,771
Total assets	$	2,441,652		$	2,414,414		$	2,416,590		$	2,439,394		$	2,267,615

Interest bearing deposits	$	1,075,482		$	1,105,934		$	1,158,542		$	1,149,581		$	1,074,493
Other borrowings	75,936			60,794			23,837			63,752			9,864
Total interest-bearing liabilities	1,151,418			1,166,728			1,182,379			1,213,333			1,084,357
Non-interest bearing demand deposits	1,093,593			1,041,698			944,816			1,006,511			900,083
Non-interest bearing liabilities	34,182			28,905			45,349			32,532			36,311
Total liabilities	2,279,193			2,237,331			2,172,544			2,252,376			2,020,751
Total equity	162,459			177,083			244,046			187,018			246,864
Total liabilities and equity	$	2,441,652		$	2,414,414		$	2,416,590		$	2,439,394		$	2,267,615

AVERAGE RATES

Interest-earning deposits in other banks	3.80		%	3.10		%	0.15		%	0.81		%	0.12		%
Investments	2.74		%	2.45		%	2.20		%	2.51		%	2.31		%
Loans (3)	5.17		%	4.90		%	5.14		%	4.93		%	5.07		%
Earning assets	4.03		%	3.72		%	3.47		%	3.66		%	3.61		%
Interest-bearing deposits	0.18		%	0.08		%	0.09		%	0.10		%	0.10		%
Other borrowings	4.60		%	3.93		%	3.29		%	3.49		%	2.70		%
Total interest-bearing liabilities	0.47		%	0.28		%	0.15		%	0.28		%	0.12		%
Net interest margin (calculated on a fully tax equivalent basis) (2)	3.80		%	3.57		%	3.39		%	3.52		%	3.54		%


Loan Risk Rating (In thousands)	December 31, 2022		September 30, 2022		December 31, 2021
Pass	$	1,196,110	$	1,170,422	$	988,855
Special mention	31,023		30,894		40,845
Substandard	27,785		22,657		8,540
Doubtful	—		—		—
Total	$	1,254,918	$	1,223,973	$	1,038,240