YORK, Pa., Oct. 17, 2019 (GLOBE NEWSWIRE) — Codorus Valley Bancorp, Inc. (Codorus Valley, or the Corporation) (NASDAQ: CVLY), parent company of PeoplesBank, A Codorus Valley Company (PeoplesBank), today announced net income of $5.2 million or $0.53 per share basic and $0.52 per share diluted, for the quarter ended September 30, 2019, as compared to net income of $5.1 million or $0.51 per share basic and diluted, for the quarter ended September 30, 2018.  For the first nine months of 2019, net income was $14.2 million or $1.43 per share basic and $1.42 per share diluted, compared to $15.2 million or $1.54 per share basic and $1.53 per share diluted, for the first nine months of 2018.  Earnings per share as reported were adjusted for a 5 percent stock dividend declared by the Board of Directors of the Corporation on October 8, 2019, payable on December 10, 2019 to shareholders of record at the close of business on October 22, 2019.
“Earnings for the third quarter 2019 increased slightly from the same period in 2018,” stated Larry J. Miller, Chairman, President/CEO.  Miller continued, “In August 2019, PeoplesBank opened its twelfth Retirement Community Office at Bethany Village, a continuing care retirement community located in Mechanicsburg, PA.  August 2019 also marked the one-year anniversary of the opening of the new Oregon Pike location in Lancaster County, PA.  We have been pleased with the number of new retail and business clients we have served and the positive growth in loans and deposits since our opening.  Our positive experience this past year has further validated the growth opportunities for PeoplesBank in the Lancaster market.  In September, we announced plans to open a Lancaster City location in spring 2020.”The Corporation’s net interest income for the three months ended September 30, 2019 was $16.0 million, a decrease of $400,000 or 2.6 percent when compared to the net interest income of $16.4 million for the same period in 2018.  For the nine months ended September 30, 2019, net interest income was $47.8 million, reflecting a decrease of $100,000 or 0.1 percent compared to $47.9 million for the nine months ended September 30, 2018.  The Corporation’s tax-equivalent net interest margin was 3.68 percent for the nine months ended September 30, 2019 compared to the tax-equivalent net interest margin of 3.88 percent for the same period in 2018.  The decrease was attributed to a temporary increase in balance sheet liquidity and changes in the yield curve.There was no provision for loan losses for the three months ended September 30, 2019 compared to $1.3 million for the same period in 2018.  The decreased provision expense was primarily attributed to a decline in loan balances and an increase in specific reserve allocations for impaired assets of $1.1 million, which were primarily offset by declines in the general reserve.  The increase in specific reserve allocations was primarily attributable to the transfers of three commercial credits to nonaccrual status during the third quarter.  For the nine months ended September 30, 2019, the provision for loan losses was $2.3 million compared to $1.8 million for the first nine months of 2018.  The Corporation’s nonperforming assets ratio was 2.26 percent as of September 30, 2019, an increase from the nonperforming assets ratio as of December 31, 2018 of 1.67 percent and an increase from the nonperforming assets ratio as of September 30, 2018 of 1.00 percent.    Noninterest income for the third quarter of 2019 was $3.5 million, an increase of $200,000, or 5.0 percent, as compared to noninterest income of $3.3 million for the third quarter of 2018.  For the first nine months of 2019, noninterest income was $10.3 million, an increase of $200,000, or 2.7 percent compared to $10.1 million for the first nine months of 2018.  Higher trust and investment services fees and income from bank owned life insurance was offset by lower gains on sale of loans held for sale.Noninterest expense was $12.9 million for the third quarter of 2019, an increase of $900,000, or 7.1 percent, as compared to noninterest expense of $12.0 million for the third quarter of 2018.  For the first nine months of 2019, noninterest expenses totaled $37.9 million, an increase of $1.0 million, or 2.8 percent, as compared to $36.9 million for the first nine months of 2018.  Higher personnel costs accounted for the majority of the increase, which was offset by lower charitable donations.Income tax expense for the quarter ended September 30, 2019 and 2018 was $1.4 million.  Income tax expense for the nine months ended September 30, 2019 was $3.8 million compared to $4.0 million for the same period in 2018.  The effective tax rates for the three months ended September 30, 2019 and 2018 were 21.6 percent and 21.4 percent, respectively.  The effective tax rates for the nine months ended September 30, 2019 and 2018 were 21.2 percent and 21.0 percent, respectively.Other NewsAs recently announced, on October 8, 2019, the Board of Directors of the Corporation declared a regular quarterly cash dividend of $0.16 per share, payable on November 12, 2019 to shareholders of record at the close of business on October 22, 2019. Also on October 8, 2019, a 5 percent common stock dividend was declared, payable on December 10, 2019 to shareholders of record at the close of business on October 22, 2019.In August, PeoplesBank announced plans to close the Fallston Financial Center located in Fallston, Maryland.  Clients who are housed at the Fallston location are being reassigned to the Perry Hall Financial Center, located seven miles away.  The location will close effective December 6, 2019.PeoplesBank announced in September plans to open a Financial Center in Lancaster City at 101 N. Queen Street in early spring 2020.  This location will be part of a newly updated mixed use four story building that includes retail, office and residential living.We continue to purchase shares of the Corporation’s stock under the Share Repurchase Program (the “Program”), which began in June.  As of September 30, 2019, the Corporation has repurchased 156,800 shares in the amount of $3,530,989.  Repurchased shares are retained as treasury shares to be available for future issuance, with 23,236 shares reissued as of September 30, 2019.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 StatementsCodorus 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 2018 Form 10-K and 2019 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:

 

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