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Cathie Wood Watch: Ark Buys One Favorite, Dumps Another
Ark Innovation ETF has descended 48% over the past year and 77% from its February 2021 peak.

Ark Innovation ETF has descended 48% over the past year and 77% from its February 2021 peak.
Famed investor Cathie Wood, chief executive of Ark Investment Management, continued dumping one of her favorite stocks Jan. 24 and bought another one.
ARK Genomic Revolution ETF (ARKG) - Get Free Report picked up 87,383 shares of Teladoc Health (TDOC) - Get Free Report, an online medical care platform. That stash was valued at $2.4 million as of the Jan. 24 close.
Wood likely was trying to take advantage of the stock’s 65% drop over the past year. Online businesses have suffered, as the pandemic sent some people back to the office, cutting their time on the Internet.
Teladoc is the ninth biggest holding in Wood’s flagship Ark Innovation ETF (ARKK) - Get Free Report.
On the opposite side, Wood apparently is trying to take advantage of the recent rebound of Exact Sciences (EXAS) - Get Free Report, a medical diagnostics company famous for its at-home colon cancer test.
Ark funds shed 100,326 shares of Exact Sciences Jan. 24, valued at $6.6 million. Ark funds tossed away 175,491 shares of the stock Jan. 23. All those shares together were valued at $18 million as of the Jan. 24 close.
Exact Sciences’ stock has lost 8% over the past year, but it has jumped 110% since Oct. 14, buoyed by strong earnings and the overall market’s rally. Exact Sciences is the biggest holding in Ark Innovation ETF.
PATRICK T. FALLON/AFP via Getty Images
Wood’s Returns Tumble
Meanwhile, Wood’s performance hasn’t exactly overwhelmed the investment world over the past year, as her young technology stocks have slumped. Ark Innovation ETF has slid 48% during that period and 77% from its February 2021 peak.
To be sure, the fund has rebounded 19% so far this year, joining the technology stock surge.
Wood has defended her strategy by noting that she has a five-year investment horizon. But the five-year annualized return of Ark Innovation was negative 0.68% through Jan. 24, compared with the S&P 500’s positive total return of 9.11%.
The fund’s performance also doesn’t come close to Wood’s goal for annualized returns of 15% over five-year periods.
Ark Innovation’s subpar returns apparently aren’t deterring investors. The $7.2 billion fund registered a net investment inflow of $164 million in the past five days and $1.45 billion over the last year, according to ETF research firm VettaFi.
What Draws Investors to Wood
You might wonder why so many investors have stuck with Wood. The fact that she had one spectacular year certainly helps. Ark Innovation skyrocketed 153% in 2020.
Also, Wood has become something of a rock star in the investment world, appearing frequently in the media. She explains financial concepts in ways that novice investors can understand.
Wood does have her detractors. Morningstar analyst Robby Greengold issued a scathing critique of Ark Innovation last year.
“ARKK shows few signs of improving its risk management or ability to successfully navigate the challenging territory it explores,” he wrote.
Wood, of course, begged to differ. “I do know there are companies like that one [Morningstar] that do not understand what we're doing,” she said in an interview with Magnifi Media by Tifin.
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Comerica Bank’s California Index Declined Sharply in October
Comerica Bank’s California Index Declined Sharply in October
PR Newswire
DALLAS, Jan. 31, 2023
DALLAS, Jan. 31, 2023 /PRNewswire/ — The Comerica California Economic Activity Index declined 4.9% annualized in the three months through October. The I…

Comerica Bank's California Index Declined Sharply in October
PR Newswire
DALLAS, Jan. 31, 2023
DALLAS, Jan. 31, 2023 /PRNewswire/ -- The Comerica California Economic Activity Index declined 4.9% annualized in the three months through October. The Index has turned lower after robust increases in the first half of the year, but was still up 5.7% from a year-ago in October.
Four of the nine components that constitute the Index rose in October. Employment rose by 59,800, but continuing claims for unemployment insurance rose, too, for the fourth consecutive month, after falling in the first half of the year. California's unemployment rate, which fell nearly 2 percentage points in the first seven months of the year, rose in October. The unemployment rate is likely to rise further in the coming months, as key sectors like tech face strong headwinds. Electricity consumption by California's industrial sector declined another 0.9% in October after falling 3.0% in the third quarter.
Housing starts fell 13.0% in October. House prices fell for the fifth consecutive month and were down 7.2% from May. Housing affordability is a longstanding problem in California and has gotten worse as first home prices and then interest rates surged post-pandemic. Declines in house prices and weak residential investment are likely in 2023. The travel industry lost momentum as it entered the fourth quarter. The seasonally-adjusted hotel occupancy rate fell 2.4 percentage points in October following a 3.6 percentage point decline in the third quarter. Seasonally adjusted air passenger traffic was down 7.1% in October after an 8.7% contraction in the third quarter.
California's economy is expected to soften in the coming months, as it faces several headwinds from a weakening housing sector, high interest rates and inflation, and slowing consumer spending. On top of these issues that weigh on state economies across the U.S., the tech slowdown is an additional negative for the Golden State.
The Comerica California Economic Activity Index is a monthly composite indicator of state economic activity. The Index provides a wholistic advance view of the state of California's economy, using economic data that are available about one quarter earlier than real GDP is released. The index is comprised of nine components: Nonfarm payroll employment, continuing claims for unemployment insurance, housing starts, house prices, industrial electricity sales, foreign trade, enplanements, hotel occupancy, and state revenues. All data are seasonally adjusted with nominal values converted to constant dollar values as appropriate. To filter out month-to-month volatility in the index components, the index is calculated from the three-month moving averages of its components. Values for a minority of components are projected from the prior months' release due to the timing of data releases.
Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Michigan, California, Florida and Arizona. Additionally, Comerica has select businesses operating in Canada and Mexico. Comerica reported total assets of $85.4 billion as of Dec. 31, 2022.
To subscribe to our publications or for questions, contact us at ComericaEcon@comerica.com. Archives are available at www.comerica.com/insights.
View original content to download multimedia:https://www.prnewswire.com/news-releases/comerica-banks-california-index-declined-sharply-in-october-301735271.html
SOURCE Comerica Bank
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VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES RECORD 2022 FOURTH QUARTER AND RECORD FULL YEAR EARNINGS
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES RECORD 2022 FOURTH QUARTER AND RECORD FULL YEAR EARNINGS
PR Newswire
CHARLOTTESVILLE, Va., Jan. 31, 2023
CHARLOTTESVILLE, Va., Jan. 31, 2023 /PRNewswire/ — Virginia National Bankshares Corporation…

VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES RECORD 2022 FOURTH QUARTER AND RECORD FULL YEAR EARNINGS
PR Newswire
CHARLOTTESVILLE, Va., Jan. 31, 2023
CHARLOTTESVILLE, Va., Jan. 31, 2023 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported record quarterly net income of $7.1 million, or $1.32 per diluted share, for the quarter ended December 31, 2022, which represents a 35% increase over net income of $5.2 million, or $0.98 per diluted share, recognized for the quarter ended December 31, 2021. For the twelve months ended December 31, 2022, record net income of $23.4 million, or $4.38 per diluted share, was recognized, compared to $10.1 million, or $2.14 per diluted share, for the twelve months ended December 31, 2021. Note that pre-tax merger and merger-related expenses of $7.4 million were incurred in the year-to-date period ended December 31, 2021, in connection with the April 1, 2021 mergers of Fauquier Bankshares, Inc. ("Fauquier") and The Fauquier Bank ("TFB") with and into the Company and Virginia National Bank (the "Bank"), respectively.
"We are proud to post record results for the fourth quarter and calendar year of 2022," commented President and Chief Executive Officer, Glenn W. Rust. "Our earn back period for the 2021 merger with Fauquier was less than two years and we continue to reap the benefits of an effectively managed overhead cost structure. We posted a return on average assets of 1.30% for 2022 and we continue to maintain a strong credit discipline."
Fourth Quarter 2022 Highlights
- Return on average assets ("ROAA") for the three months ended December 31, 2022 increased to 1.65% compared to 1.06% realized in the same period in the prior year.
- Return on average equity ("ROAE") for the three months ended December 31, 2022 improved to 22.23% compared to 12.86% realized in same period in the prior year.
- The efficiency ratio on a fully tax equivalent basis ("FTE") (a non-GAAP financial measure)1 was 51.7% for the three months ended December 31, 2022, an improvement over 57.7% for the same period in the prior year.
- The Company did not incur any merger or merger-related expenses in 2022, compared to $7.4 million incurred during 2021.
- The Company is realizing significant savings in salaries and employee benefits, data processing and professional fees associated with the merger. Full-time equivalent employee headcount was 215 as of April 1, 2021, the effective date of the merger, and is down to 157 as of December 31, 2022. In addition, the Company closed two branches in the fourth quarter of 2022, reducing future operating costs.
- During the fourth quarter of 2022, the Company sold its interest in Sturman Wealth Advisors, resulting in a gain on sale of the line of business of $404 thousand. All goodwill and unamortized intangible assets associated with the 2016 purchase of this business line have been eliminated from the Company's balance sheet.
Loans and Asset Quality
- Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.08% as of December 31, 2022, compared to 0.10% as of December 31, 2021. Nonperforming assets have been reduced to $1.4 million as of December 31, 2022, compared to $1.9 million as of December 31, 2021, and the Company currently holds no other real estate owned.
- Four loans to three borrowers are in non-accrual status, totaling $673 thousand, as of December 31, 2022, compared to $495 thousand as of December 31, 2021. Loans acquired from TFB ("acquired loans") that otherwise would be in non-accrual status are not included in this figure, as they earn interest through the yield accretion.
- Loans 90 days or more past due and still accruing interest amounted to $705 thousand as of December 31, 2022, compared to $800 thousand as of December 31, 2021. The portfolio includes three non-insured student loans that are 90 days or more past due and still accruing interest, amounting to $59 thousand. Acquired loans that are greater than 90 days past due and still accruing interest are included in this figure, net of their fair value mark.
- The period-end allowance for loan losses ("ALLL") as a percentage of total loans was 0.59% as of December 31, 2022 and 0.56% as of December 31, 2021. The fair value mark that was allocated to the acquired loans was $21.3 million as of April 1, 2021 with a remaining balance of $15.9 million as of December 31, 2022. The ALLL as a percentage of gross loans, excluding the impact of the acquired loans and fair value mark (a non-GAAP financial measure)1, would have been 0.90% as of December 31, 2022 and 0.95% as of December 31, 2021. The total of the ALLL and the fair value mark as a percentage of gross loans (a non-GAAP financial measure)1 amounted to 2.29% as of December 31, 2022 and 2.30% as of December 31, 2021.
- A provision for loan losses of $136 thousand was recognized during the three months ended December 31, 2022, compared to $537 thousand recognized in the three months ended December 31, 2021.
- Gross loans outstanding at December 31, 2022 totaled $936.4 million, a decrease of $124.8 million, or 12%, compared to December 31, 2021. Loans originated and funded during 2022 were offset by: 1) paydowns of legacy organic loans due mainly to business sales, property sales and participation fluctuations, 2) workouts and paydowns of loans, the majority of which originated from legacy Fauquier, and 3) the forgiveness of Small Business Administration Paycheck Protection Program loans.
Net Interest Income
- Net interest income for the three months ended December 31, 2022 of $15.4 million increased $3.0 million, or 24%, compared to the three months ended December 31, 2021, due primarily to the increase in average balances of securities, positively impacting net interest income through rate and volume, offset by the reduction in average balances of loans.
- The fair value accretion on acquired loans positively impacted net interest income by 21 basis points ("bps") during the current quarter.
- The overall cost of funds, including noninterest deposits, of 23 bps incurred in the three months ended December 31, 2022 increased 8 bps from 22 bps in the same period in the prior year. Overall, the cost of interest-bearing deposits increased period over period, from a cost of 30 bps to 32 bps. Average balances in noninterest-bearing deposits remained relatively flat period over period.
- Low-cost deposits, which include noninterest checking accounts and interest-bearing checking, savings and money market accounts, remained in excess of 91% of total deposits at December 31, 2022 and 2021.
Noninterest Income
Noninterest income for the three months ended December 31, 2022 decreased $100 thousand, or 3%, compared to the three months ended December 31, 2021, primarily due to the decline in wealth management fees, due to an anticipated reduction in the number of accounts served by the Trust & Estate segment and the decline in performance fees collected by Masonry Capital Management. In the fourth quarter of 2022, the Company received a $267 thousand recovery of unearned premiums related to the loss of insurance on the student loan portfolio, bringing the total recovered life-to-date to over $1 million. The Company also closed on the sale of Sturman Wealth Advisors, as noted above, in the current period.
Noninterest Expense
Noninterest expense for the three months ended December 31, 2022 increased $592 thousand, or 7%, compared to the three months ended December 31, 2021, due to combination of several variances, including an increase in losses due to fraud and an impairment charge on an asset held for sale, offset by reduced plastics expense as a result of changing vendors and lower salaries and employee benefits as a result of efficiencies gained from the merger. In addition, the fourth quarter of 2021 noninterest expense included a favorable adjustment to merger and merger-related expenses after receiving a refund from a third-party vendor for system implementation credits and adjusting merger-related accrued bonuses.
Book Value
Book value per share was $25.05 as of December 31, 2022 and $30.50 as of December 31, 2021, and tangible book value per share (a non-GAAP financial measure)1 was $22.36 as of December 31, 2022 compared to $27.36 as of December 31, 2021. These values declined due to the increase in unrealized losses on the investment portfolio period over period.
Income Taxes
The effective tax rate for the twelve months ended December 31, 2022 amounted to 17.9% compared to 15.5% for the twelve months ended December 31, 2021, which are both lower than the statutory rate due to the recognition of low-income housing tax credits and the effect of tax-exempt income from municipal bonds and bank owned life insurance policies. The 2021 effective tax rate was also impacted by the non-deductibility of certain merger-related expenses for tax purposes.
Dividends
Cash dividends of $1.6 million, or $0.30 per share, were declared during the current quarter, and $6.4 million, or $1.20 per share, were declared during the current year.
1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.
About Virginia National Bankshares Corporation
Virginia National Bankshares Corporation, headquartered in Charlottesville, Virginia, is the bank holding company for Virginia National Bank. The Bank has nine banking offices throughout Fauquier and Prince William counties, three banking offices in Charlottesville and Albemarle County, and banking offices in Winchester and Richmond, Virginia. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. Investment management services are offered through Masonry Capital Management, LLC, a registered investment adviser and wholly-owned subsidiary of the Company.
The Company's common stock trades on the Nasdaq Capital Market under the symbol "VABK." Additional information on the Company is also available at www.vnbcorp.com.
Non-GAAP Financial Measures
The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures to supplement the evaluation of the Company's performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release.
Forward-Looking Statements; Other Information
Certain statements in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, statements with respect to the Company's operations, performance, future strategy and goals, and are often characterized by use of qualified words such as "expect," "believe," "estimate," "project," "anticipate," "intend," "will," "should," or words of similar meaning or other statements concerning the opinions or judgement of the Company and its management about future events. While Company management believes such statements to be reasonable, future events and predictions are subject to circumstances that are not within the control of the Company and its management. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, the effects of and changes in: general economic and market conditions, including the effects of declines in real estate values, an increase in unemployment levels and general economic contraction as a result of COVID-19 or other pandemics; fluctuations in interest rates, deposits, loan demand, and asset quality; assumptions that underlie the Company's allowance for loan losses; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (e.g., COVID-19 or other pandemics), and of governmental and societal responses thereto; the performance of vendors or other parties with which the Company does business; competition; technology; changes in laws, regulations and guidance; changes in accounting principles or guidelines; performance of assets under management; expected revenue synergies and cost savings from the recently completed merger with Fauquier may not be fully realized or realized within the expected timeframe; the businesses of the Company and Fauquier may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; revenues following the merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the merger; and other factors impacting financial services businesses. Many of these factors and additional risks and uncertainties are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and other reports filed from time to time by the Company with the Securities and Exchange Commission. These statements speak only as of the date made, and the Company does not undertake to update any forward-looking statements to reflect changes or events that may occur after this release.
VIRGINIA NATIONAL BANKSHARES CORPORATION | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(dollars in thousands, except per share data) | |||||||
December 31, 2022 | December 31, 2021* | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 20,993 | $ | 20,345 | |||
Interest-bearing deposits in other banks | 19,098 | 336,032 | |||||
Federal funds sold | 45 | 152,463 | |||||
Securities: | |||||||
Available for sale, at fair value | 538,186 | 303,817 | |||||
Restricted securities, at cost | 5,137 | 4,950 | |||||
Total securities | 543,323 | 308,767 | |||||
Loans, net of deferred fees and costs | 936,415 | 1,061,211 | |||||
Allowance for loan losses | (5,552) | (5,984) | |||||
Loans, net | 930,863 | 1,055,227 | |||||
Premises and equipment, net | 17,808 | 25,093 | |||||
Assets held for sale | 965 | - | |||||
Bank owned life insurance | 38,552 | 31,234 | |||||
Goodwill | 7,768 | 8,140 | |||||
Core deposit intangible, net | 6,586 | 8,271 | |||||
Other intangible assets, net | - | 274 | |||||
Other real estate owned, net | - | 611 | |||||
Right of use asset, net | 6,536 | 7,583 | |||||
Deferred tax asset, net | 17,165 | 4,840 | |||||
Accrued interest receivable and other assets | 13,151 | 13,304 | |||||
Total assets | $ | 1,622,853 | $ | 1,972,184 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities: | |||||||
Demand deposits: | |||||||
Noninterest-bearing | $ | 495,649 | $ | 522,281 | |||
Interest-bearing | 399,983 | 446,314 | |||||
Money market and savings deposit accounts | 467,600 | 665,530 | |||||
Certificates of deposit and other time deposits | 115,106 | 162,045 | |||||
Total deposits | 1,478,338 | 1,796,170 | |||||
Junior subordinated debt, net | 3,413 | 3,367 | |||||
Lease liability | 6,173 | 7,108 | |||||
Accrued interest payable and other liabilities | 1,513 | 3,552 | |||||
Total liabilities | 1,489,437 | 1,810,197 | |||||
Commitments and contingent liabilities | |||||||
Shareholders' equity: | |||||||
Preferred stock, $2.50 par value | - | - | |||||
Common stock, $2.50 par value | 13,214 | 13,178 | |||||
Capital surplus | 105,344 | 104,584 | |||||
Retained earnings | 63,482 | 46,436 | |||||
Accumulated other comprehensive loss | (48,624) | (2,211) | |||||
Total shareholders' equity | 133,416 | 161,987 | |||||
Total liabilities and shareholders' equity | $ | 1,622,853 | $ | 1,972,184 | |||
Common shares outstanding | 5,337,271 | 5,308,335 | |||||
Common shares authorized | 10,000,000 | 10,000,000 | |||||
Preferred shares outstanding | - | - | |||||
Preferred shares authorized | 2,000,000 | 2,000,000 |
* Derived from audited consolidated financial statements
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the three months ended | For the twelve months ended | |||||||||||||||
December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
Interest and dividend income: | ||||||||||||||||
Loans, including fees | $ | 11,828 | $ | 11,995 | $ | 44,231 | $ | 43,899 | ||||||||
Federal funds sold | 426 | 61 | 1,088 | 139 | ||||||||||||
Other interest-bearing deposits | 494 | 139 | 1,467 | 233 | ||||||||||||
Investment securities: | ||||||||||||||||
Taxable | 3,116 | 804 | 8,416 | 2,810 | ||||||||||||
Tax exempt | 324 | 292 | 1,249 | 1,021 | ||||||||||||
Dividends | 88 | 49 | 280 | 170 | ||||||||||||
Total interest and dividend income | 16,276 | 13,340 | 56,731 | 48,272 | ||||||||||||
Interest expense: | ||||||||||||||||
Demand and savings deposits | 682 | 710 | 2,327 | 2,308 | ||||||||||||
Certificates and other time deposits | 158 | 222 | 657 | 1,108 | ||||||||||||
Junior subordinated debt | 52 | 49 | 200 | (132) | ||||||||||||
Total interest expense | 892 | 981 | 3,184 | 3,284 | ||||||||||||
Net interest income | 15,384 | 12,359 | 53,547 | 44,988 | ||||||||||||
Provision for loan losses | 136 | 537 | 106 | 1,014 | ||||||||||||
Net interest income after provision for loan losses | 15,248 | 11,822 | 53,441 | 43,974 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management fees | 721 | 1,455 | 2,440 | 3,508 | ||||||||||||
Advisory and brokerage income | 131 | 246 | 770 | 1,154 | ||||||||||||
Deposit account fees | 433 | 477 | 1,799 | 1,459 | ||||||||||||
Debit/credit card and ATM fees | 648 | 509 | 2,794 | 2,070 | ||||||||||||
Earnings/increase in value of bank owned life insurance | 254 | 201 | 963 | 708 | ||||||||||||
Resolution of commercial dispute | - | - | 2,400 | - | ||||||||||||
Gain on sale of business line | 404 | - | 404 | - | ||||||||||||
Gains (losses) on sale of assets, net | (74) | 1 | 1,043 | 81 | ||||||||||||
Other | 411 | 139 | 1,048 | 1,485 | ||||||||||||
Total noninterest income | 2,928 | 3,028 | 13,661 | 10,465 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 4,191 | 4,424 | 17,260 | 16,129 | ||||||||||||
Net occupancy | 729 | 932 | 4,526 | 3,575 | ||||||||||||
Equipment | 111 | 305 | 897 | 966 | ||||||||||||
Bank franchise tax | 304 | 214 | 1,216 | 1,136 | ||||||||||||
Computer software | 229 | 276 | 1,136 | 1,020 | ||||||||||||
Data processing | 805 | 620 | 2,954 | 2,793 | ||||||||||||
FDIC deposit insurance assessment | 90 | 264 | 511 | 858 | ||||||||||||
Marketing, advertising and promotion | 351 | 216 | 1,224 | 922 | ||||||||||||
Merger and merger-related expenses | - | (664) | - | 7,423 | ||||||||||||
Plastics expense | 72 | 389 | 394 | 978 | ||||||||||||
Professional fees | 306 | 244 | 1,357 | 1,117 | ||||||||||||
Core deposit intangible amortization | 403 | 544 | 1,684 | 1,389 | ||||||||||||
Impairment on assets held for sale | 242 | - | 242 | - | ||||||||||||
Other | 1,683 | 1,160 | 5,155 | 4,216 | ||||||||||||
Total noninterest expense | 9,516 | 8,924 | 38,556 | 42,522 | ||||||||||||
Income before income taxes | 8,660 | 5,926 | 28,546 | 11,917 | ||||||||||||
Provision for income taxes | 1,603 | 707 | 5,108 | 1,846 | ||||||||||||
Net income | $ | 7,057 | $ | 5,219 | $ | 23,438 | $ | 10,071 | ||||||||
Net income per common share, basic | $ | 1.32 | $ | 0.98 | $ | 4.40 | $ | 2.16 | ||||||||
Net income per common share, diluted | $ | 1.32 | $ | 0.98 | $ | 4.38 | $ | 2.14 | ||||||||
Weighted average common shares outstanding, basic | 5,333,902 | 5,308,108 | 5,324,740 | 4,668,761 | ||||||||||||
Weighted average common shares outstanding, diluted | 5,362,220 | 5,338,088 | 5,351,358 | 4,695,405 |
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
At or For the Three Months Ended | ||||||||||||||||||||
December 31, | September 30, | June 30, 2022 | March 31, | December 31, | ||||||||||||||||
Common Share Data: | ||||||||||||||||||||
Net income per weighted average share, basic | $ | 1.32 | $ | 1.08 | $ | 1.07 | $ | 0.93 | $ | 0.98 | ||||||||||
Net income per weighted average share, diluted | $ | 1.32 | $ | 1.08 | $ | 1.06 | $ | 0.92 | $ | 0.98 | ||||||||||
Weighted average shares outstanding, basic | 5,333,902 | 5,326,543 | 5,326,271 | 5,311,983 | 5,308,108 | |||||||||||||||
Weighted average shares outstanding, diluted | 5,362,220 | 5,348,900 | 5,347,008 | 5,343,564 | 5,338,088 | |||||||||||||||
Actual shares outstanding | 5,327,271 | 5,327,271 | 5,326,271 | 5,326,271 | 5,308,335 | |||||||||||||||
Tangible book value per share at period end | $ | 22.36 | $ | 20.77 | $ | 22.24 | $ | 24.37 | $ | 27.36 | ||||||||||
Key Ratios: | ||||||||||||||||||||
Return on average assets 1 | 1.65 | % | 1.30 | % | 1.27 | % | 1.03 | % | 1.06 | % | ||||||||||
Return on average equity 1 | 22.23 | % | 16.50 | % | 16.16 | % | 12.53 | % | 12.86 | % | ||||||||||
Net interest margin (FTE) 2 | 3.91 | % | 3.47 | % | 3.02 | % | 2.59 | % | 2.72 | % | ||||||||||
Efficiency ratio (FTE) 3 | 51.7 | % | 57.0 | % | 58.3 | % | 62.0 | % | 57.7 | % | ||||||||||
Loan-to-deposit ratio | 63.3 | % | 59.0 | % | 60.1 | % | 56.8 | % | 59.1 | % | ||||||||||
Net Interest Income: | ||||||||||||||||||||
Net interest income | $ | 15,384 | $ | 14,277 | $ | 12,461 | $ | 11,425 | $ | 12,359 | ||||||||||
Net interest income (FTE) 2 | $ | 15,470 | $ | 14,361 | $ | 12,543 | $ | 11,490 | $ | 12,437 | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Tier 1 leverage ratio | 9.77 | % | 9.17 | % | 8.79 | % | 8.03 | % | 7.61 | % | ||||||||||
Total risk-based capital ratio | 17.64 | % | 16.97 | % | 16.51 | % | 15.66 | % | 14.56 | % | ||||||||||
Assets and Asset Quality: | ||||||||||||||||||||
Average earning assets | $ | 1,568,765 | $ | 1,644,124 | $ | 1,668,471 | $ | 1,802,461 | $ | 1,817,010 | ||||||||||
Average gross loans | $ | 938,740 | $ | 959,086 | $ | 984,883 | $ | 1,031,593 | $ | 1,088,278 | ||||||||||
Paycheck Protection Program loans, end of period | $ | 234 | $ | 254 | $ | 1,925 | $ | 9,976 | $ | 24,482 | ||||||||||
Fair value mark on acquired loans | $ | 15,887 | $ | 17,046 | $ | 17,502 | $ | 17,920 | $ | 18,466 | ||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning of period | $ | 5,485 | $ | 5,503 | $ | 5,834 | $ | 5,984 | $ | 5,623 | ||||||||||
Provision for (recovery of) loan losses | 136 | 39 | (217) | 148 | 537 | |||||||||||||||
Charge-offs | (472) | (119) | (191) | (473) | (230) | |||||||||||||||
Recoveries | 403 | 62 | 77 | 175 | 54 | |||||||||||||||
Net charge-offs | (69) | (57) | (114) | (298) | (176) | |||||||||||||||
End of period | $ | 5,552 | $ | 5,485 | $ | 5,503 | $ | 5,834 | $ | 5,984 | ||||||||||
Non-accrual loans 4 | $ | 673 | $ | 607 | $ | 511 | $ | 518 | $ | 495 | ||||||||||
Loans 90 days or more past due and still accruing 5 | 705 | 859 | 626 | 837 | 800 | |||||||||||||||
OREO | - | - | - | 611 | 611 | |||||||||||||||
Total nonperforming assets (NPA) | $ | 1,378 | $ | 1,466 | $ | 1,137 | $ | 1,966 | $ | 1,906 | ||||||||||
NPA as a % of total assets | 0.08 | % | 0.08 | % | 0.07 | % | 0.10 | % | 0.10 | % | ||||||||||
NPA as a % of gross loans plus OREO | 0.15 | % | 0.16 | % | 0.12 | % | 0.20 | % | 0.18 | % | ||||||||||
ALLL to gross loans | 0.59 | % | 0.58 | % | 0.57 | % | 0.58 | % | 0.56 | % | ||||||||||
ALLL + fair value mark to gross loans (non-GAAP) | 2.29 | % | 2.38 | % | 2.39 | % | 2.35 | % | 2.30 | % | ||||||||||
Non-accruing loans to gross loans 4 | 0.07 | % | 0.06 | % | 0.05 | % | 0.05 | % | 0.05 | % | ||||||||||
Net charge-offs to average loans 1 | 0.03 | % | 0.02 | % | 0.05 | % | 0.12 | % | 0.06 | % | ||||||||||
1 | Ratio is computed on an annualized basis. |
2 | The net interest margin and net interest income are reported on a fully tax-equivalent basis (FTE) basis, using a Federal income tax rate of 21%. |
3 | The efficiency ratio (FTE) is computed as a percentage of noninterest expense divided by the sum of net interest income (FTE) and noninterest income. This is a non-GAAP financial measure that management believes provides investors with important information regarding operational efficiency. Management believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information should not be viewed as a substitute for GAAP. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may calculate them differently. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release. |
4 | Acquired loans which otherwise would be in non-accrual status are not included in this figure, as they earn interest through the yield accretion. |
5 | Past due loans from the acquired portfolio are included at fair value. |
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||||||||||
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||||||||||||
Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable Securities | $ | 471,566 | $ | 3,204 | 2.72 | % | $ | 225,757 | $ | 853 | 1.51 | % | ||||||||||||
Tax Exempt Securities 1 | 67,090 | 410 | 2.44 | % | 63,083 | 370 | 2.35 | % | ||||||||||||||||
Total Securities 1 | 538,656 | 3,614 | 2.68 | % | 288,840 | 1,223 | 1.69 | % | ||||||||||||||||
Loans: | ||||||||||||||||||||||||
Real Estate | 820,751 | 10,322 | 4.99 | % | 923,040 | 10,456 | 4.49 | % | ||||||||||||||||
Commercial | 71,730 | 785 | 4.34 | % | 109,024 | 846 | 3.08 | % | ||||||||||||||||
Consumer | 46,259 | 721 | 6.18 | % | 56,214 | 693 | 4.89 | % | ||||||||||||||||
Total Loans | 938,740 | 11,828 | 5.00 | % | 1,088,278 | 11,995 | 4.37 | % | ||||||||||||||||
Fed Funds Sold | 46,042 | 426 | 3.67 | % | 152,435 | 61 | 0.16 | % | ||||||||||||||||
Other interest-bearing deposits | 45,327 | 494 | 4.32 | % | 287,457 | 139 | 0.19 | % | ||||||||||||||||
Total Earning Assets | 1,568,765 | 16,362 | 4.14 | % | 1,817,010 | 13,418 | 2.93 | % | ||||||||||||||||
Less: Allowance for Loan Losses | (5,395) | (5,704) | ||||||||||||||||||||||
Total Non-Earning Assets | 135,015 | 140,539 | ||||||||||||||||||||||
Total Assets | $ | 1,698,385 | $ | 1,951,845 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||
Interest Checking | $ | 403,570 | $ | 55 | 0.05 | % | $ | 421,372 | $ | 70 | 0.07 | % | ||||||||||||
Money Market and Savings Deposits | 500,397 | 627 | 0.50 | % | 660,438 | 639 | 0.38 | % | ||||||||||||||||
Time Deposits | 125,334 | 158 | 0.50 | % | 162,584 | 222 | 0.54 | % | ||||||||||||||||
Total Interest-Bearing Deposits | 1,029,301 | 840 | 0.32 | % | 1,244,394 | 931 | 0.30 | % | ||||||||||||||||
Borrowings | 2 | — | — | — | — | — | ||||||||||||||||||
Junior subordinated debt | 3,406 | 52 | 6.06 | % | 3,360 | 50 | 5.90 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | 1,032,709 | 892 | 0.34 | % | 1,247,754 | 981 | 0.31 | % | ||||||||||||||||
Non-Interest-Bearing Liabilities: | ||||||||||||||||||||||||
Demand deposits | 531,719 | 532,397 | ||||||||||||||||||||||
Other liabilities | 8,019 | 10,741 | ||||||||||||||||||||||
Total Liabilities | 1,572,447 | 1,790,892 | ||||||||||||||||||||||
Shareholders' Equity | 125,938 | 160,953 | ||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,698,385 | $ | 1,951,845 | ||||||||||||||||||||
Net Interest Income (FTE) | $ | 15,470 | $ | 12,437 | ||||||||||||||||||||
Interest Rate Spread 2 | 3.80 | % | 2.62 | % | ||||||||||||||||||||
Cost of Funds | 0.23 | % | 0.22 | % | ||||||||||||||||||||
Interest Expense as a Percentage of | 0.23 | % | 0.21 | % | ||||||||||||||||||||
Net Interest Margin (FTE) 3 | 3.91 | % | 2.72 | % | ||||||||||||||||||||
1 | Tax-exempt income for investment securities has been adjusted to a fully tax-equivalent basis (FTE), using a Federal income tax rate of 21%. |
Refer to the Reconcilement of Non-GAAP Measures table at the end of this release. | |
2 | Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. |
3 | Net interest margin (FTE) is net interest income expressed as a percentage of average earning assets. |
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||||||||||
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
For the twelve months ended | ||||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||||||||||||
Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable Securities | $ | 373,680 | $ | 8,696 | 2.33 | % | $ | 198,450 | $ | 2,980 | 1.50 | % | ||||||||||||
Tax Exempt Securities 1 | 65,861 | 1,582 | 2.40 | % | 53,716 | 1,292 | 2.41 | % | ||||||||||||||||
Total Securities 1 | 439,541 | 10,278 | 2.34 | % | 252,166 | 4,272 | 1.69 | % | ||||||||||||||||
Loans: | ||||||||||||||||||||||||
Real Estate | 847,238 | 38,011 | 4.49 | % | 808,707 | 35,303 | 4.37 | % | ||||||||||||||||
Commercial | 81,410 | 3,583 | 4.40 | % | 145,462 | 5,731 | 3.94 | % | ||||||||||||||||
Consumer | 49,619 | 2,637 | 5.31 | % | 63,039 | 2,865 | 4.54 | % | ||||||||||||||||
Total Loans | 978,267 | 44,231 | 4.52 | % | 1,017,208 | 43,899 | 4.32 | % | ||||||||||||||||
Fed Funds Sold | 100,033 | 1,088 | 1.09 | % | 109,104 | 139 | 0.13 | % | ||||||||||||||||
Other interest-bearing deposits | 161,260 | 1,467 | 0.91 | % | 160,960 | 233 | 0.14 | % | ||||||||||||||||
Total Earning Assets | 1,679,101 | 57,064 | 3.40 | % | 1,539,438 | 48,543 | 3.15 | % | ||||||||||||||||
Less: Allowance for Loan Losses | (5,702) | (5,297) | ||||||||||||||||||||||
Total Non-Earning Assets | 124,525 | 115,193 | ||||||||||||||||||||||
Total Assets | $ | 1,797,924 | $ | 1,649,334 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||
Interest Checking | $ | 409,504 | $ | 230 | 0.06 | % | $ | 355,419 | $ | 261 | 0.07 | % | ||||||||||||
Money Market and Savings Deposits | 563,374 | 2,097 | 0.37 | % | 529,027 | 2,047 | 0.39 | % | ||||||||||||||||
Time Deposits | 144,564 | 657 | 0.45 | % | 152,211 | 1,108 | 0.73 | % | ||||||||||||||||
Total Interest-Bearing Deposits | 1,117,442 | 2,984 | 0.27 | % | 1,036,657 | 3,416 | 0.33 | % | ||||||||||||||||
Borrowings | — | — | — | 23,700 | (280) | -1.18 | % | |||||||||||||||||
Junior subordinated debt | 3,389 | 200 | 5.90 | % | 2,565 | 148 | 5.77 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | 1,120,831 | 3,184 | 0.28 | % | 1,062,922 | 3,284 | 0.31 | % | ||||||||||||||||
Non-Interest-Bearing Liabilities: | ||||||||||||||||||||||||
Demand deposits | 526,389 | 434,989 | ||||||||||||||||||||||
Other liabilities | 9,581 | 10,875 | ||||||||||||||||||||||
Total Liabilities | 1,656,801 | 1,508,786 | ||||||||||||||||||||||
Shareholders' Equity | 141,123 | 140,548 | ||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,797,924 | $ | 1,649,334 | ||||||||||||||||||||
Net Interest Income (FTE) | $ | 53,880 | $ | 45,259 | ||||||||||||||||||||
Interest Rate Spread 2 | 3.11 | % | 2.84 | % | ||||||||||||||||||||
Cost of Funds | 0.19 | % | 0.22 | % | ||||||||||||||||||||
Interest Expense as a Percentage of | 0.19 | % | 0.21 | % | ||||||||||||||||||||
Net Interest Margin (FTE) 3 | 3.21 | % | 2.94 | % | ||||||||||||||||||||
1 | Tax-exempt income for investment securities has been adjusted to a fully tax-equivalent basis (FTE), using a Federal income tax rate of 21%. |
Refer to the Reconcilement of Non-GAAP Measures table at the end of this release. | |
2 | Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. |
3 | Net interest margin (FTE) is net interest income expressed as a percentage of average earning assets. |
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||||||
RECONCILIATION OF CERTAIN QUARTERLY NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | September 30, | June 30, 2022 | March 31, 2022 | December 31, | ||||||||||||||||
Fully tax-equivalent measures | ||||||||||||||||||||
Net interest income | $ | 15,384 | $ | 14,277 | $ | 12,461 | $ | 11,425 | $ | 12,359 | ||||||||||
Fully tax-equivalent adjustment | 86 | 83 | 82 | 65 | 78 | |||||||||||||||
Net interest income (FTE) 1 | $ | 15,470 | $ | 14,360 | $ | 12,543 | $ | 11,490 | $ | 12,437 | ||||||||||
Efficiency ratio 2 | 52.0 | % | 57.3 | % | 58.6 | % | 62.3 | % | 58.0 | % | ||||||||||
Fully tax-equivalent adjustment | -0.3 | % | -0.3 | % | -0.3 | % | -0.3 | % | -0.3 | % | ||||||||||
Efficiency ratio (FTE) 3 | 51.7 | % | 57.0 | % | 58.3 | % | 62.0 | % | 57.7 | % | ||||||||||
Net interest margin | 3.89 | % | 3.45 | % | 3.00 | % | 2.57 | % | 2.70 | % | ||||||||||
Fully tax-equivalent adjustment | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | ||||||||||
Net interest margin (FTE) 1 | 3.91 | % | 3.47 | % | 3.02 | % | 2.59 | % | 2.72 | % | ||||||||||
As of | ||||||||||||||||||||
December 31, | September 30, | June 30, 2022 | March 31, 2022 | December 31, | ||||||||||||||||
Other financial measures | ||||||||||||||||||||
ALLL to gross loans | 0.59 | % | 0.58 | % | 0.57 | % | 0.58 | % | 0.56 | % | ||||||||||
Impact of acquired loans and fair value mark | 0.31 | % | 0.32 | % | 0.34 | % | 0.37 | % | 0.39 | % | ||||||||||
ALLL to gross loans, excluding acquired loans and | 0.90 | % | 0.90 | % | 0.91 | % | 0.95 | % | 0.95 | % | ||||||||||
ALLL to gross loans | 0.59 | % | 0.58 | % | 0.57 | % | 0.58 | % | 0.56 | % | ||||||||||
Fair value mark to gross loans | 1.70 | % | 1.80 | % | 1.82 | % | 1.77 | % | 1.74 | % | ||||||||||
ALLL + fair value mark to gross loans (non-GAAP) | 2.29 | % | 2.38 | % | 2.39 | % | 2.35 | % | 2.30 | % | ||||||||||
Book value per share | $ | 25.05 | $ | 23.65 | $ | 25.20 | $ | 27.42 | $ | 30.50 | ||||||||||
Impact of intangible assets | (2.69) | (2.88) | (2.96) | (3.05) | $ | (3.14) | ||||||||||||||
Tangible book value per share (non-GAAP) | $ | 22.36 | $ | 20.77 | $ | 22.24 | $ | 24.37 | $ | 27.36 | ||||||||||
1 | FTE calculations use a Federal income tax rate of 21%. |
2 | The efficiency ratio, GAAP basis, is computed by dividing noninterest expense by the sum of net interest income and noninterest income. |
3 | The efficiency ratio, FTE, is computed by dividing noninterest expense by the sum of net interest income (FTE) and noninterest income. |
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||
RECONCILIATION OF CERTAIN ANNUAL NON-GAAP FINANCIAL MEASURES | ||||||||
(dollars in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
For the Twelve Months Ended | ||||||||
December 31, 2022 | December 31, 2021 | |||||||
Fully tax-equivalent measures | ||||||||
Net interest income | $ | 53,547 | $ | 44,988 | ||||
Fully tax-equivalent adjustment | 333 | 271 | ||||||
Net interest income (FTE) 1 | $ | 53,880 | $ | 45,259 | ||||
Efficiency ratio 2 | 57.4 | % | 76.7 | % | ||||
Fully tax-equivalent adjustment | -0.3 | % | -0.4 | % | ||||
Efficiency ratio (FTE) 3 | 57.1 | % | 76.3 | % | ||||
Net interest margin | 3.19 | % | 2.92 | % | ||||
Fully tax-equivalent adjustment | 0.02 | % | 0.02 | % | ||||
Net interest margin (FTE) 1 | 3.21 | % | 2.94 | % | ||||
1 | FTE calculations use a Federal income tax rate of 21%. |
2 | The efficiency ratio, GAAP basis, is computed by dividing noninterest expense by the sum of net interest income and noninterest income. |
3 | The efficiency ratio, FTE, is computed by dividing noninterest expense by the sum of net interest income (FTE) and noninterest income. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-record-2022-fourth-quarter-and-record-full-year-earnings-301735291.html
SOURCE Virginia National Bankshares Corporation
Uncategorized
Comerica Bank’s Michigan Index Declined Through October
Comerica Bank’s Michigan Index Declined Through October
PR Newswire
DALLAS, Jan. 31, 2023
DALLAS, Jan. 31, 2023 /PRNewswire/ — The Comerica Michigan Economic Activity Index fell 2.9% annualized in the three months through October. The Index was up…

Comerica Bank's Michigan Index Declined Through October
PR Newswire
DALLAS, Jan. 31, 2023
DALLAS, Jan. 31, 2023 /PRNewswire/ -- The Comerica Michigan Economic Activity Index fell 2.9% annualized in the three months through October. The Index was up a solid 3.6% from the same month of last year. Only four of the index's nine components increased in October.
Employment rose in the month – but so did continuing claims for unemployment insurance, painting a mixed picture of the state's job market.
Car and light truck assemblies rose to 10.5 million units at a seasonally adjusted annualized pace in October from 10.3 million in September and topped 10 million for the seventh consecutive month. October's run rate was just shy of the 10.6 million units assembled in 2019 prior to the pandemic, a further sign that supply chain disruptions are finally abating; assemblies slowed in November and December, though, which will weigh on the index in the next few releases. Electricity consumption by the state's industrial sector declined in October.
House prices declined for the fifth consecutive month and were down 1.9% from the peak in May. Housing starts rose for a third consecutive month and were still up 21.7% from a year earlier, even after a precipitous decline in July. Housing is likely to weaken further near-term as high prices and soaring mortgage rates weigh on demand.
Michigan's economy will likely slow along with national and global economies in 2023. Rising interest rates will slow credit-intensive sectors, such as housing and commercial real estate investment. The auto industry will likely outperform other types of durable consumer goods manufacturing as car dealers restock inventories, but even it could face a lower speed limit on its rebound due to higher interest rates.
The Comerica Michigan Economic Activity Index is a monthly composite indicator of state economic activity. The Index provides a wholistic advance view of the state of Michigan's economy, using economic data that are available about one quarter earlier than real GDP is released. The index is comprised of nine components: Nonfarm payroll employment, continuing claims for unemployment insurance, housing starts, house prices, industrial electricity sales, auto and light truck production, foreign trade, hotel occupancy, and sales tax revenue. All data are seasonally adjusted with nominal values converted to constant dollar values as appropriate. To filter out month-to-month volatility in the index components, the index is calculated from the three-month moving averages of its components. Values for a minority of components are projected from the prior months' release due to the timing of data releases.
Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Michigan, California, Florida and Arizona. Additionally, Comerica has select businesses operating in Canada and Mexico. Comerica reported total assets of $85.4 billion as of Dec. 31, 2022.
To subscribe to our publications or for questions, contact us at ComericaEcon@comerica.com. Archives are available at www.comerica.com/insights.
View original content to download multimedia:https://www.prnewswire.com/news-releases/comerica-banks-michigan-index-declined-through-october-301735233.html
SOURCE Comerica Bank
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