 YORK, Pa., July 23, 2020 GLOBE NEWSWIRE -- Codorus Valley Bancorp, Inc. Codorus Valley, or the Corporation NASDAQ: CVLY, parent company of PeoplesBank, A Codorus Valley Company PeoplesBank, collectively referred to as the Company, today announced net income of 3.1 million or 0.31 per share basic and diluted, for the quarter ended June 30, 2020, as compared to net income of 4.9 million or 0.49 per share basic and diluted, for the quarter ended June 30, 2019. For the first six months of 2020, net income was 61,000 or 0.01 per share basic and diluted, compared to 9.0 million or 0.90 per share basic and diluted, for the first six months of 2019. Earnings for the second quarter 2020 were adversely affected by an increase in the provision for loan and lease losses associated with the COVID-19 pandemic and due to a loan provision expense associated with commercial loan relationships, stated Larry J. Miller, Chairman, PresidentCEO. There has been considerable focus this quarter on providing SBA guaranteed Paycheck Protection Program PPP loans to 1,300 small and mid-size businesses, managing an influx of mortgage applications, and in continuing to adjust operations to safely re-open our financial centers, added Miller.The Corporations net interest income for the three months ended June 30, 2020 was 14.9 million, a decrease of 1.3 million or 8.3 percent when compared to the net interest income of 16.2 million for the same period in 2019. For the six months ended June 30, 2020, net interest income was 30.3 million, reflecting a decrease of 1.5 million or 4.7 percent compared to 31.8 million for the six months ended June 30, 2019. The Corporations tax-equivalent net interest margin NIM was 3.25 percent for the first half of 2020, compared to the tax-equivalent NIM of 3.72 percent for the same period in 2019. A major component of the reduction in the net interest margin 27 basis points were the actions taken by the Federal Reserve Board lowering benchmark interest rates 150 basis points during this period.The provision for loan and lease losses for the three months ended June 30, 2020 was 2.5 million compared to 1.2 million for the same period in 2019. For the six months ended June 30, 2020, the provision for loan and lease losses was 12.0 million compared to 2.2 million for the first six months of 2019. The increased provision expense was attributed primarily to the partial charge off arising from two distinct commercial lending relationships. In addition, changes in the external environment created by COVID-19 caused Management to increase the qualitative factors for certain loan segments in the allowance for loan and lease loss analysis, which resulted in additional provision for loan losses in the quarter. The Corporations nonperforming assets ratio was 1.31 percent as of June 30, 2020, a decrease from the nonperforming assets ratio as of June 30, 2019 of 1.44 percent. As of June 30, 2020, management believes the Allowance for Loan and Lease Losses is adequate, however, changing economic conditions associated with the COVID-19 pandemic may require future adjustments. Noninterest income for the second quarter 2020 was 3.5 million, a decrease of 100,000 or 2.9 percent, as compared to noninterest income of 3.6 million for the second quarter 2019. For the first six months of 2020, noninterest income was 7.0 million, an increase of 100,000 or 1.4 percent, as compared to noninterest income of 6.9 million for the first six months of 2019. Noninterest expense was 12.1 million for the second quarter 2020, a decrease of 400,000, or 3.0 percent, as compared to noninterest expense of 12.5 million for the second quarter 2019. For the first six months of 2020, noninterest expense totaled 25.5 million, an increase of 400,000 or 1.5 percent compared to 25.1 million for the first six months of 2019. Income tax expense for the quarter ended June 30, 2020 was 700,000 compared to 1.3 million for the same period in 2019. Income tax benefit for the six months ended June 30, 2020 was 300,000 compared to income tax expense of 2.4 million for the same period in 2019. Dividend Declared As recently announced, on July 14, 2020, the Board of Directors of the Corporation declared a regular quarterly cash dividend of 0.10 per share, payable on August 11, 2020 to shareholders of record at the close of business on July 28, 2020. The payment of this 0.10 per share cash dividend is a six-cents per share decrease from the 0.16 per share cash dividend that was paid for the past six quarters, respectively.COVID 19 PandemicThe coronavirus has affected nearly every aspect of personal and business life over the last quarter. The Company has needed to react quickly to changing guidelines from the CDC and at the state levels. The changes in how the Company must conduct its essential services to the community are continuing to evolve. Through the second quarter, efforts to mitigate the spread of this virus have been successful in both Pennsylvania and Maryland, allowing a path for re-opening businesses.In recent weeks, the nation has seen a resurgence of hot spots resulting in some states tightening up guidelines and issuing lockdowns. The impact on the Companys market area from the number of growing cases in other parts of the country is still unknown, but is starting to show signs of potential impact. Governor Wolf has recently announced a need to create stricter guidelines and travel restrictions in Pennsylvania in order to slow the spread of COVID-19 due to higher infection rates in other states.The PeoplesBank Crisis Management Team has been monitoring the situation closely and is meeting weekly to manage the changing dynamics of COVID-19.Associates Approximately 40 percent of the Companys associates are continuing to work off-premise. A phased approach and a comprehensive plan to safely return associates working remotely has been developed, and will be implemented as the number of COVID-19 cases decline. On-going associate communication and training related to staying healthy and safe during a pandemic has been a priority. At the time of this release, one associate has tested positive for COVID-19.Re-Opening A phased plan to re-open the majority of Financial Centers was also implemented in the second quarter. This involved developing and training associates on new lobby protocols, installing new signage, removing upholstered furniture, and adding plastic shields on the teller line.The first eight financial centers re-opened with lobby service on June 15th. The locations identified to open in the first phase were based on transaction volumes, higher staffing levels and the ability to serve clients across a geographic region. By the end of June, nineteen financial centers and three Retirement Community Office lobbies were open with several modifications to ensure the safety of clients and associates. These include shorter lobby hours, designated hours for seniors and clients at high risk, a designated lobby manager to screen and limit the number of clients in a lobby at a time, and additional cleaning protocols. Five Financial Centers continue to offer drive-thru and by appointment only hours, and four Retirement Community Offices and three Loan Production Offices Young Manor, Centerville, Bel Air remain closed.Client Hardship In addition to higher volume of calls to our Client Care Center, financial hardship telephone lines were set-up to assist clients with loan deferments, SBA loans, and fee waivers. The Company continued to waive ATM foreign fees throughout the entire second quarter for all clients.PeoplesBank continues to responsibly and prudently extend credit to qualified borrowers. In addition, we were active participants in the SBA Paycheck Protection Program PPP. As of July 15th, PeoplesBank has processed approximately 1,300 PPP loans totaling 180 million with projected fees exceeding 6 million. The majority of these loans 83 percent were supporting small businesses with loan amounts below 150,000.Digital Adoption In mid-June, PeoplesBank began promoting video call appointments to clients as another option for connecting with a financial mentor. Associates who serve as financial mentors participated in extensive training on how to conduct professional and effective video calls with clients. During this quarter, digital adoption continued to rise as record numbers of clients utilized online banking and mobile deposit features. The CompanyCodorus Valley Bancorp, Inc. is the largest independent financial services holding company headquartered in York, Pennsylvania. Codorus Valley primarily operates through its financial services subsidiary, PeoplesBank, A Codorus Valley Company. PeoplesBank offers a full range of consumer, business, wealth management, and mortgage services at financial centers located in communities throughout South Central Pennsylvania and Central Maryland. Codorus Valley Bancorp, Inc.s Common Stock is listed on the NASDAQ Global Market under the symbol CVLY.Forward-looking Statements Codorus Valley Bancorp, Inc. has made forward-looking statements in this Press Release. These forward-looking statements are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Corporation and its subsidiaries. When words such as believes, expects, anticipates, or similar expressions occur in this Press Release, the Corporation is making forward-looking statements. Note that many factors could affect the future financial results of the Corporation and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Press Release. 