Codorus Valley Bancorp Inc (CVLY, Financial) filed Quarterly Report for the period ended 2010-03-31.
Codorus Valley Bancorp Inc has a market cap of $33.2 million; its shares were traded at around $8.13 with and P/S ratio of 0.7. The dividend yield of Codorus Valley Bancorp Inc stocks is 3%. Codorus Valley Bancorp Inc had an annual average earning growth of 4.4% over the past 10 years.
The $2,142,000 or 42 percent increase in net interest income for the current quarter reflected a larger volume of interest earning assets, principally business loans and investment securities. Net interest income was also favorably impacted by lower rates paid on deposit products, which reflected the low level of short-term market interest rates. The net interest margin was 3.69 percent for the first three months of 2010, compared to 2.95 percent for the same period in 2009. The provision for loan losses for the current period increased $476,000 or 195 percent due to reserve allocations for specific impaired business loans, continued uncertainty in the economy and declining commercial real estate values. The $276,000 or 5 percent increase in noninterest expense was primarily the result of increased carrying costs on impaired loans and foreclosed real estate, and increased FDIC deposit insurance premiums. The $140,000 or 8 percent decrease in noninterest income for the current quarter was primarily the result of a $163,000 gain from the sale of investment securities realized in the first quarter of 2009. No investment securities gains or losses were realized thus far in 2010.
For the first quarter of 2010, total interest income increased $1,266,000 or 14 percent above 2009 due primarily to an increase in the average volume of earning assets. Earning assets averaged $832 million and yielded 5.31 percent (tax equivalent basis) for the current quarter, compared to $730 million and 5.28 percent, respectively, for the first quarter of 2009. The $102 million or 14 percent increase in average earning assets was primarily the result of growth in the business loan and investment securities portfolios. The increase in investment securities, principally U.S. agency mortgage-backed bonds and tax-exempt municipal bonds, resulted from a leverage strategy, which is discussed in the Investment Securities section of this report.
For the first quarter of 2010, total interest expense decreased $876,000 or 21 percent below the first quarter of 2009 due to a decrease in the average rates paid on deposits. Total interest bearing liabilities averaged $756 million at an average rate of 1.78 percent for the current quarter, compared to $652 million and 2.61 percent, respectively, for the first quarter of 2009. The $104 million or 16 percent increase in average interest bearing liabilities was the result of growth in the average volume of money market and time deposits. The continued influence of the Federal Reserve Bank to keep market interest rates low, as a means of stimulating the economy, have helped to lower the Corporations funding costs. Federally insured bank deposits continue to provide safe haven to our clients who are concerned about the economy, volatility in the capital markets and the high level of unemployment.
On March 31, 2010, nonaccrual loans consisted of collateralized business and residential mortgage loans, and consumer loans. The level of nonaccrual loans was relatively high for both periods primarily as a result of prolonged weakened economic conditions and the corresponding effects it has had on our commercial borrowers. The nonaccrual loan portfolio balance totaled $21,239,000 on March 31, 2010, a decrease of $4,319,000 or 17 percent, compared to year-end 2009. The decrease resulted primarily from the reclassification of a nonaccrual loan to foreclosed real estate identified below as property no. 1 and, to a lesser degree, payments by borrowers. On March 31, 2010, the nonaccrual loans portfolio was comprised of twenty-one unrelated accounts ranging in size from $1,000 to $5,041,000. Five unrelated commercial loan accounts, which represent 90 percent of the total nonaccrual loan portfolio balance, are described below.
On March 31, 2010, the foreclosed real estate portfolio balance totaled $6,773,000, representing a $2,541,000 or 27 percent decrease, compared to year-end 2009. Subsequent to year-end 2009, one nonaccrual loan at December 31, 2009 was foreclosed on and reclassified to foreclosed real estate, identified as property no.1 below, and four properties were liquidated with a carrying value of $5,844,000, which resulted in the recognition of a net gain totaling $122,000. The net gain was included in foreclosed real estate expense. On March 31, 2010, the portfolio was comprised of five unrelated accounts ranging in size from $102,000 to $3,298,000, which we are actively attempting to liquidate. Foreclosed real estate is included in the other assets category on the Corporations balance sheet. Three unrelated accounts, which represent 97 percent of the total foreclosed real estate portfolio balance, are described below. As of March 31, 2010, no valuation allowance has been established for these accounts because, in our judgment, the carrying value reflects fair value less estimated costs to sell. However, a valuation allowance may be required in the future on foreclosed real estate as additional information becomes available.
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Codorus Valley Bancorp Inc has a market cap of $33.2 million; its shares were traded at around $8.13 with and P/S ratio of 0.7. The dividend yield of Codorus Valley Bancorp Inc stocks is 3%. Codorus Valley Bancorp Inc had an annual average earning growth of 4.4% over the past 10 years.
Highlight of Business Operations:
The Corporation earned net income available to common shareholders of $1,466,000 or $0.36 per share ($0.36 diluted) for the three-month period ended March 31, 2010, compared to $740,000 or $0.18 per share ($0.18 diluted), for the same period of 2009. The $726,000 or 98 percent increase in net income available to common shareholders was the result of an increase in net interest income, which more than offset increases in the provision for loan losses and noninterest expense, and a decrease in noninterest income.The $2,142,000 or 42 percent increase in net interest income for the current quarter reflected a larger volume of interest earning assets, principally business loans and investment securities. Net interest income was also favorably impacted by lower rates paid on deposit products, which reflected the low level of short-term market interest rates. The net interest margin was 3.69 percent for the first three months of 2010, compared to 2.95 percent for the same period in 2009. The provision for loan losses for the current period increased $476,000 or 195 percent due to reserve allocations for specific impaired business loans, continued uncertainty in the economy and declining commercial real estate values. The $276,000 or 5 percent increase in noninterest expense was primarily the result of increased carrying costs on impaired loans and foreclosed real estate, and increased FDIC deposit insurance premiums. The $140,000 or 8 percent decrease in noninterest income for the current quarter was primarily the result of a $163,000 gain from the sale of investment securities realized in the first quarter of 2009. No investment securities gains or losses were realized thus far in 2010.
For the first quarter of 2010, total interest income increased $1,266,000 or 14 percent above 2009 due primarily to an increase in the average volume of earning assets. Earning assets averaged $832 million and yielded 5.31 percent (tax equivalent basis) for the current quarter, compared to $730 million and 5.28 percent, respectively, for the first quarter of 2009. The $102 million or 14 percent increase in average earning assets was primarily the result of growth in the business loan and investment securities portfolios. The increase in investment securities, principally U.S. agency mortgage-backed bonds and tax-exempt municipal bonds, resulted from a leverage strategy, which is discussed in the Investment Securities section of this report.
For the first quarter of 2010, total interest expense decreased $876,000 or 21 percent below the first quarter of 2009 due to a decrease in the average rates paid on deposits. Total interest bearing liabilities averaged $756 million at an average rate of 1.78 percent for the current quarter, compared to $652 million and 2.61 percent, respectively, for the first quarter of 2009. The $104 million or 16 percent increase in average interest bearing liabilities was the result of growth in the average volume of money market and time deposits. The continued influence of the Federal Reserve Bank to keep market interest rates low, as a means of stimulating the economy, have helped to lower the Corporations funding costs. Federally insured bank deposits continue to provide safe haven to our clients who are concerned about the economy, volatility in the capital markets and the high level of unemployment.
On March 31, 2010, nonaccrual loans consisted of collateralized business and residential mortgage loans, and consumer loans. The level of nonaccrual loans was relatively high for both periods primarily as a result of prolonged weakened economic conditions and the corresponding effects it has had on our commercial borrowers. The nonaccrual loan portfolio balance totaled $21,239,000 on March 31, 2010, a decrease of $4,319,000 or 17 percent, compared to year-end 2009. The decrease resulted primarily from the reclassification of a nonaccrual loan to foreclosed real estate identified below as property no. 1 and, to a lesser degree, payments by borrowers. On March 31, 2010, the nonaccrual loans portfolio was comprised of twenty-one unrelated accounts ranging in size from $1,000 to $5,041,000. Five unrelated commercial loan accounts, which represent 90 percent of the total nonaccrual loan portfolio balance, are described below.
On March 31, 2010, the foreclosed real estate portfolio balance totaled $6,773,000, representing a $2,541,000 or 27 percent decrease, compared to year-end 2009. Subsequent to year-end 2009, one nonaccrual loan at December 31, 2009 was foreclosed on and reclassified to foreclosed real estate, identified as property no.1 below, and four properties were liquidated with a carrying value of $5,844,000, which resulted in the recognition of a net gain totaling $122,000. The net gain was included in foreclosed real estate expense. On March 31, 2010, the portfolio was comprised of five unrelated accounts ranging in size from $102,000 to $3,298,000, which we are actively attempting to liquidate. Foreclosed real estate is included in the other assets category on the Corporations balance sheet. Three unrelated accounts, which represent 97 percent of the total foreclosed real estate portfolio balance, are described below. As of March 31, 2010, no valuation allowance has been established for these accounts because, in our judgment, the carrying value reflects fair value less estimated costs to sell. However, a valuation allowance may be required in the future on foreclosed real estate as additional information becomes available.
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