EXHIBIT 99.3 – Supplemental, Unaudited Financial Information
| AVAILABLE-FOR-SALE SECURITIES | December 31, 2010 | September 30, 2010 | December 31, 2009 | |||
| (In Thousands) | Amortized | Fair | Amortized | Fair | Amortized | Fair |
| Cost | Value | Cost | Value | Cost | Value | |
| Obligations of other U.S. Government agencies | $44,005 | $44,247 | $51,337 | $52,032 | $48,949 | $48,993 |
| Obligations of states and political subdivisions | 135,018 | 127,542 | 122,452 | 123,778 | 109,109 | 104,990 |
| Mortgage-backed securities | 113,176 | 118,386 | 120,470 | 126,283 | 150,700 | 156,378 |
| Collateralized mortgage obligations: | ||||||
| Issued by U.S. Government agencies | 131,040 | 130,826 | 109,270 | 110,728 | 47,083 | 47,708 |
| Private label | 0 | 0 | 0 | 0 | 15,465 | 15,494 |
| Corporate bonds | 1,000 | 1,027 | 1,000 | 1,031 | 1,000 | 1,041 |
| Trust preferred securities issued by individual institutions | 6,535 | 7,838 | 6,461 | 5,889 | 7,043 | 6,018 |
| Collateralized debt obligations: | ||||||
| Pooled trust preferred securities - senior tranches | 9,957 | 7,400 | 11,027 | 8,000 | 11,383 | 8,199 |
| Pooled trust preferred securities - mezzanine tranches | 0 | 0 | 0 | 0 | 266 | 115 |
| Other collateralized debt obligations | 681 | 681 | 690 | 690 | 690 | 690 |
| Total debt securities | 441,412 | 437,946 | 422,707 | 428,431 | 391,688 | 389,626 |
| Marketable equity securities | 4,589 | 6,009 | 4,027 | 4,961 | 5,367 | 6,662 |
| Total | $446,001 | $443,956 | $426,734 | $433,392 | $397,055 | $396,288 |
| SUMMARY OF LOANS BY TYPE | |||
| (Excludes Loans Held for Sale) | |||
| (In Thousands) | Dec. 31, | Sept. 30, | Dec. 31, |
| 2010 | 2010 | 2009 | |
| Real estate - residential mortgage | $410,589 | $414,348 | $419,773 |
| Real estate - commercial mortgage | 167,094 | 162,245 | 163,483 |
| Real estate – construction | 38,383 | 38,557 | 26,716 |
| Consumer | 14,996 | 15,932 | 19,202 |
| Agricultural | 3,472 | 3,754 | 3,848 |
| Commercial | 59,005 | 55,096 | 49,753 |
| Other | 392 | 259 | 638 |
| Political subdivisions | 36,480 | 35,937 | 37,598 |
| Total | 730,411 | 726,128 | 721,011 |
| Less: allowance for loan losses | (9,107) | (8,602) | (8,265) |
| Loans, net | $721,304 | $717,526 | $712,746 |
| ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES | ||||
| (In Thousands) | ||||
| 3 Months | 3 Months | Year | Year | |
| Ended | Ended | Ended | Ended | |
| Dec. 31, | Sept. 30, | Dec. 31, | Dec. 31, | |
| 2010 | 2010 | 2010 | 2009 | |
| Balance, beginning of period | $8,602 | $8,461 | $8,265 | $7,857 |
| Charge-offs: | ||||
| Real estate loans | 170 | 68 | 393 | 149 |
| Installment loans | 53 | 44 | 188 | 293 |
| Credit cards and related plans | 0 | 0 | 0 | 0 |
| Commercial and other loans | 10 | 4 | 38 | 36 |
| Total charge-offs | 233 | 116 | 619 | 478 |
| Recoveries: | ||||
| Real estate loans | 2 | 32 | 55 | 8 |
| Installment loans | 15 | 36 | 102 | 104 |
| Credit cards and related plans | 0 | 0 | 0 | 0 |
| Commercial and other loans | 2 | 0 | 113 | 94 |
| Total recoveries | 19 | 68 | 270 | 206 |
| Net charge-offs | 214 | 48 | 349 | 272 |
| Provision for loan losses | 719 | 189 | 1,191 | 680 |
| Balance, end of period | $9,107 | $8,602 | $9,107 | $8,265 |
| (In Thousands) | |||
| Dec. 31, | Sept. 30, | Dec. 31, | |
| 2010 | 2010 | 2009 | |
| Total loans past due 30-89 days and still | |||
| Accruing | $7,125 | $6,323 | $9,445 |
| Nonperforming assets: | |||
| Total loans past due 90 days or more and still accruing | $727 | $1,404 | $31 |
| Total nonaccrual loans | 10,809 | 8,786 | 9,092 |
| Foreclosed assets held for sale (real estate) | 537 | 530 | 873 |
| Total nonperforming assets | $12,073 | $10,720 | $9,996 |
| Total nonperforming assets as a % of assets | 0.92% | 0.82% | 0.76% |
| (Dollars in Thousands) | ||||
| 3 Months | 3 Months | |||
| Ended | Rate of | Ended | Rate of | |
| 12/31/2010 | Return/ | 9/30/2010 | Return/ | |
| Average | Cost of | Average | Cost of | |
| Balance | Funds % | Balance | Funds % | |
| EARNING ASSETS | ||||
| Available-for-sale securities, at amortized cost: | ||||
| Taxable | $312,889 | 3.46% | $313,385 | 3.42% |
| Tax-exempt | 120,990 | 6.06% | 114,139 | 6.30% |
| Total available-for-sale securities | 433,879 | 4.18% | 427,524 | 4.19% |
| Held-to-maturity securities, | ||||
| Taxable | 0 | 0.00% | 0 | 0.00% |
| Trading securities | 0 | 0.00% | 0 | 0.00% |
| Interest-bearing due from banks | 40,139 | 0.22% | 45,661 | 0.23% |
| Federal funds sold | 1 | 0.00% | 36 | 0.00% |
| Loans: | ||||
| Taxable | 693,013 | 6.36% | 690,084 | 6.41% |
| Tax-exempt | 35,273 | 6.51% | 35,324 | 6.56% |
| Total loans | 728,286 | 6.37% | 725,408 | 6.42% |
| Total Earning Assets | 1,202,305 | 5.38% | 1,198,629 | 5.39% |
| Cash | 17,493 | 17,788 | ||
| Unrealized gain/loss on securities | 4,694 | 4,746 | ||
| Allowance for loan losses | (8,686) | (8,586) | ||
| Bank premises and equipment | 22,923 | 23,319 | ||
| Intangible Asset - Core Deposit Intangible | 352 | 396 | ||
| Intangible Asset - Goodwill | 11,942 | 11,942 | ||
| Other assets | 62,350 | 72,735 | ||
| Total Assets | $1,313,373 | $1,320,969 | ||
| INTEREST-BEARING LIABILITIES | ||||
| Interest-bearing deposits: | ||||
| Interest checking | $164,011 | 0.40% | $153,933 | 0.51% |
| Money market | 207,574 | 0.37% | 204,470 | 0.38% |
| Savings | 85,098 | 0.25% | 79,484 | 0.24% |
| Certificates of deposit | 217,005 | 2.05% | 222,117 | 2.16% |
| Individual Retirement Accounts | 162,908 | 3.01% | 163,794 | 3.04% |
| Other time deposits | 755 | 0.53% | 1,839 | 0.43% |
| Total interest-bearing deposits | 837,351 | 1.32% | 825,637 | 1.40% |
| Borrowed funds: | ||||
| Short-term | 19,498 | 0.22% | 23,328 | 0.26% |
| Long-term | 150,635 | 4.01% | 166,887 | 4.06% |
| Total borrowed funds | 170,133 | 3.58% | 190,215 | 3.59% |
| Total Interest-bearing Liabilities | 1,007,484 | 1.70% | 1,015,852 | 1.81% |
| Demand deposits | 156,932 | 150,299 | ||
| Other liabilities | 7,495 | 8,209 | ||
| Total Liabilities | 1,171,911 | 1,174,360 | ||
| Stockholders' equity, excluding other comprehensive income/loss | 138,592 | 143,738 | ||
| Other comprehensive income/loss | 2,870 | 2,871 | ||
| Total Stockholders' Equity | 141,462 | 146,609 | ||
| Total Liabilities and Stockholders' Equity | $1,313,373 | $1,320,969 | ||
| Interest Rate Spread | 3.68% | 3.58% | ||
| Net Interest Income/Earning Assets | 3.95% | 3.85% | ||
| Total Deposits (Interest-bearing and Demand) | $994,283 | $975,936 | ||
(1) Rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis.
(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.
| Analysis of Average Daily Balances and Rates | ||||
| (Dollars in Thousands) | ||||
| Year | Year | |||
| Ended | Rate of | Ended | Rate of | |
| 12/31/2010 | Return/ | 12/31/2009 | Return/ | |
| Average | Cost of | Average | Cost of | |
| Balance | Funds % | Balance | Funds % | |
| EARNING ASSETS | ||||
| Available-for-sale securities, at amortized cost: | ||||
| Taxable | $314,462 | 3.61% | $342,332 | 4.82% |
| Tax-exempt | 113,058 | 6.33% | 97,491 | 6.71% |
| Total available-for-sale securities | 427,520 | 4.33% | 439,823 | 5.24% |
| Held-to-maturity securities, | ||||
| Taxable | 38 | 5.27% | 373 | 5.63% |
| Trading securities | 29 | 6.99% | 1,005 | 6.37% |
| Interest-bearing due from banks | 54,655 | 0.23% | 29,348 | 0.21% |
| Federal funds sold | 48 | 0.00% | 8,983 | 0.17% |
| Loans: | ||||
| Taxable | 687,520 | 6.43% | 689,275 | 6.56% |
| Tax-exempt | 35,798 | 6.55% | 39,473 | 6.18% |
| Total loans | 723,318 | 6.44% | 728,748 | 6.54% |
| Total Earning Assets | 1,205,608 | 5.41% | 1,208,280 | 5.87% |
| Cash | 17,505 | 17,042 | ||
| Unrealized gain/loss on securities | 2,555 | (24,334) | ||
| Allowance for loan losses | (8,552) | (7,914) | ||
| Bank premises and equipment | 23,522 | 25,239 | ||
| Intangible Asset - Core Deposit Intangible | 417 | 669 | ||
| Intangible Asset - Goodwill | 11,942 | 11,953 | ||
| Other assets | 73,148 | 65,151 | ||
| Total Assets | $1,326,145 | $1,296,086 | ||
| INTEREST-BEARING LIABILITIES | ||||
| Interest-bearing deposits: | ||||
| Interest checking | $147,494 | 0.54% | $104,444 | 0.86% |
| Money market | 203,191 | 0.43% | 200,982 | 1.00% |
| Savings | 78,012 | 0.25% | 69,002 | 0.39% |
| Certificates of deposit | 225,542 | 2.24% | 226,913 | 2.94% |
| Individual Retirement Accounts | 162,754 | 3.06% | 154,340 | 3.11% |
| Other time deposits | 1,242 | 0.48% | 1,276 | 0.47% |
| Total interest-bearing deposits | 818,235 | 1.46% | 756,957 | 1.94% |
| Borrowed funds: | ||||
| Short-term | 27,563 | 0.64% | 38,731 | 1.40% |
| Long-term | 175,229 | 4.09% | 221,682 | 4.18% |
| Total borrowed funds | 202,792 | 3.62% | 260,413 | 3.77% |
| Total Interest-bearing Liabilities | 1,021,027 | 1.88% | 1,017,370 | 2.40% |
| Demand deposits | 147,380 | 129,746 | ||
| Other liabilities | 7,605 | 7,183 | ||
| Total Liabilities | 1,176,012 | 1,154,299 | ||
| Stockholders' equity, excluding other comprehensive income/loss | 148,735 | 158,120 | ||
| Other comprehensive income/loss | 1,398 | (16,333) | ||
| Total Stockholders' Equity | 150,133 | 141,787 | ||
| Total Liabilities and Stockholders' Equity | $1,326,145 | $1,296,086 | ||
| Interest Rate Spread | 3.53% | 3.47% | ||
| Net Interest Income/Earning Assets | 3.81% | 3.84% | ||
| Total Deposits (Interest-bearing and Demand) | $965,615 | $886,703 | ||
(1) Rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis.
(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.
| COMPARISON OF NON-INTEREST INCOME | |||||
| (In Thousands) | Three Months Ended | Year Ended | |||
| Dec. 31, | Sept. 30, | Dec. 31, | Dec. 31, | Dec. 31, | |
| 2010 | 2010 | 2009 | 2010 | 2009 | |
| Service charges on deposit accounts | $1,130 | $1,166 | $1,277 | $4,579 | $4,791 |
| Service charges and fees | 264 | 191 | 181 | 858 | 796 |
| Trust and financial management revenue | 870 | 876 | 866 | 3,475 | 3,262 |
| Insurance commissions, fees and premiums | 62 | 65 | 67 | 248 | 293 |
| Increase in cash surrender value of life insurance | 114 | 121 | 117 | 466 | 501 |
| Interchange revenue from debit card transactions | 452 | 427 | 363 | 1,678 | 1,338 |
| Net gains from sales of loans | 268 | 275 | 26 | 761 | 106 |
| Brokerage revenue | 147 | 102 | 107 | 465 | 464 |
| Other operating income | 173 | 352 | 659 | 1,387 | 1,470 |
| Total other operating income, before realized gains (losses) on available-for-sale securities, net | $3,480 | $3,575 | $3,663 | $13,917 | $13,021 |
| COMPARISON OF NON-INTEREST EXPENSE | |||||
| (In Thousands) | Three Months Ended | Year Ended | |||
| Dec. 31, | Sept. 30, | Dec. 31, | Dec. 31, | Dec. 31, | |
| 2010 | 2010 | 2009 | 2010 | 2009 | |
| Salaries and wages | $3,432 | $3,354 | $2,744 | $13,063 | $12,737 |
| Pensions and other employee benefits | 938 | 980 | 719 | 3,840 | 3,956 |
| Occupancy expense, net | 641 | 654 | 668 | 2,645 | 2,741 |
| Furniture and equipment expense | 493 | 500 | 613 | 2,103 | 2,679 |
| FDIC Assessments | 249 | 382 | 441 | 1,450 | 2,092 |
| Pennsylvania shares tax | 306 | 305 | 318 | 1,222 | 1,272 |
| Other operating expense | 1,661 | 1,920 | 2,179 | 7,246 | 8,534 |
| Total Other Expense | $7,720 | $8,095 | $7,682 | $31,569 | $34,011 |