EXHIBIT 99.3 – Supplemental, Unaudited Financial Information
| AVAILABLE-FOR-SALE SECURITIES | March 31, 2015 | December 31, 2014 | ||||||||||||||
| (In Thousands) | Amortized | Fair | Amortized | Fair | ||||||||||||
| Cost | Value | Cost | Value | |||||||||||||
| Obligations of U.S. Government agencies | $ | 27,205 | $ | 27,025 | $ | 27,221 | $ | 26,676 | ||||||||
| Obligations of states and political subdivisions: | ||||||||||||||||
| Tax-exempt | 117,378 | 122,502 | 120,086 | 124,839 | ||||||||||||
| Taxable | 36,861 | 37,417 | 33,637 | 33,878 | ||||||||||||
| Mortgage-backed securities | 90,130 | 92,088 | 82,479 | 83,903 | ||||||||||||
| Collateralized mortgage obligations, | ||||||||||||||||
| Issued by U.S. Government agencies | 238,794 | 240,077 | 239,620 | 238,823 | ||||||||||||
| Other collateralized debt obligations | 34 | 34 | 34 | 34 | ||||||||||||
| Total debt securities | 510,402 | 519,143 | 503,077 | 508,153 | ||||||||||||
| Marketable equity securities | 5,636 | 8,671 | 5,605 | 8,654 | ||||||||||||
| Total | $ | 516,038 | $ | 527,814 | $ | 508,682 | $ | 516,807 | ||||||||
| Summary of Loans by Type | ||||||||||||
| (Excludes Loans Held for Sale) | ||||||||||||
| (In Thousands) | March 31, | Dec. 31, | March 31, | |||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Residential mortgage: | ||||||||||||
| Residential mortgage loans - first liens | $ | 291,612 | $ | 291,882 | $ | 295,869 | ||||||
| Residential mortgage loans - junior liens | 20,896 | 21,166 | 23,048 | |||||||||
| Home equity lines of credit | 37,049 | 36,629 | 34,755 | |||||||||
| 1-4 Family residential construction | 16,217 | 16,739 | 12,635 | |||||||||
| Total residential mortgage | 365,774 | 366,416 | 366,307 | |||||||||
| Commercial: | ||||||||||||
| Commercial loans secured by real estate | 140,851 | 145,878 | 146,569 | |||||||||
| Commercial and industrial | 51,563 | 50,157 | 40,477 | |||||||||
| Political subdivisions | 19,479 | 17,534 | 10,436 | |||||||||
| Commercial construction and land | 7,249 | 6,938 | 14,692 | |||||||||
| Loans secured by farmland | 7,789 | 7,916 | 8,602 | |||||||||
| Multi-family (5 or more) residential | 8,673 | 8,917 | 10,906 | |||||||||
| Agricultural loans | 3,158 | 3,221 | 3,159 | |||||||||
| Other commercial loans | 13,187 | 13,334 | 14,343 | |||||||||
| Total commercial | 251,949 | 253,895 | 249,184 | |||||||||
| Consumer | 10,622 | 10,234 | 10,327 | |||||||||
| Total | 628,345 | 630,545 | 625,818 | |||||||||
| Less: allowance for loan losses | (7,134 | ) | (7,336 | ) | (8,343 | ) | ||||||
| Loans, net | $ | 621,211 | $ | 623,209 | $ | 617,475 | ||||||
| Loans Held for Sale | ||||||||||||
| (In Thousands) | March 31, | Dec. 31, | March 31, | |||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Residential mortgage loans originated | ||||||||||||
| and serviced - outstanding balance | $ | 151,486 | $ | 152,505 | $ | 147,524 | ||||||
| Less: outstanding balance of loans sold | (151,272 | ) | (152,505 | ) | (147,391 | ) | ||||||
| Loans held for sale, net | $ | 214 | $ | 0 | $ | 133 | ||||||
| ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||
| (In Thousands) | ||||||||||||||||
| 3 Months | 3 Months | Year | 3 Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| March 31, | Dec. 31, | Dec. 31, | March 31, | |||||||||||||
| 2015 | 2014 | 2014 | 2014 | |||||||||||||
| Balance, beginning of period | $ | 7,336 | $ | 7,449 | $ | 8,663 | $ | 8,663 | ||||||||
| Charge-offs | (222 | ) | (258 | ) | (2,139 | ) | (274 | ) | ||||||||
| Recoveries | 17 | 22 | 336 | 265 | ||||||||||||
| Net charge-offs | (205 | ) | (236 | ) | (1,803 | ) | (9 | ) | ||||||||
| Provision (credit) for loan losses | 3 | 123 | 476 | (311 | ) | |||||||||||
| Balance, end of period | $ | 7,134 | $ | 7,336 | $ | 7,336 | $ | 8,343 | ||||||||
| PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS | ||||||||||||
| AND TROUBLED DEBT RESTRUCTURINGS (TDRs) | ||||||||||||
| (In Thousands) | ||||||||||||
| March 31, | Dec 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Impaired loans with a valuation allowance | $ | 4,312 | $ | 3,241 | $ | 9,576 | ||||||
| Impaired loans without a valuation allowance | 8,851 | 9,075 | 5,430 | |||||||||
| Total impaired loans | $ | 13,163 | $ | 12,316 | $ | 15,006 | ||||||
| Total loans past due 30-89 days and still accruing | $ | 5,722 | $ | 7,121 | $ | 7,650 | ||||||
| Nonperforming assets: | ||||||||||||
| Total nonaccrual loans | $ | 11,944 | $ | 12,610 | $ | 14,257 | ||||||
| Total loans past due 90 days or more and still accruing | 3,086 | 2,843 | 2,160 | |||||||||
| Total nonperforming loans | 15,030 | 15,453 | 16,417 | |||||||||
| Foreclosed assets held for sale (real estate) | 1,583 | 1,189 | 1,321 | |||||||||
| Total nonperforming assets | $ | 16,613 | $ | 16,642 | $ | 17,738 | ||||||
| Loans subject to troubled debt restructurings (TDRs): | ||||||||||||
| Performing | $ | 1,872 | $ | 1,807 | $ | 3,020 | ||||||
| Nonperforming | 5,252 | 5,388 | 112 | |||||||||
| Total TDRs | $ | 7,124 | $ | 7,195 | $ | 3,132 | ||||||
| Total nonperforming loans as a % of loans | 2.39 | % | 2.45 | % | 2.62 | % | ||||||
| Total nonperforming assets as a % of assets | 1.33 | % | 1.34 | % | 1.44 | % | ||||||
| Allowance for loan losses as a % of total loans | 1.14 | % | 1.16 | % | 1.33 | % | ||||||
| Allowance for loan losses as a % of nonperforming loans | 47.47 | % | 47.47 | % | 50.82 | % | ||||||
| Analysis of Average Daily Balances and Rates | ||||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| 3 Months | 3 Months | 3 Months | ||||||||||||||||||||||
| Ended | Rate of | Ended | Rate of | Ended | Rate of | |||||||||||||||||||
| 3/31/2015 | Return/ | 12/31/2014 | Return/ | 3/31/2014 | Return/ | |||||||||||||||||||
| Average | Cost of | Average | Cost of | Average | Cost of | |||||||||||||||||||
| Balance | Funds % | Balance | Funds % | Balance | Funds % | |||||||||||||||||||
| EARNING ASSETS | ||||||||||||||||||||||||
| Available-for-sale securities, | ||||||||||||||||||||||||
| at amortized cost: | ||||||||||||||||||||||||
| Taxable | $ | 388,104 | 2.15 | % | $ | 383,802 | 2.10 | % | $ | 345,663 | 2.22 | % | ||||||||||||
| Tax-exempt | $ | 117,674 | 5.35 | % | 121,735 | 5.22 | % | 126,030 | 5.45 | % | ||||||||||||||
| Total available-for-sale securities | 505,778 | 2.90 | % | 505,537 | 2.85 | % | 471,693 | 3.08 | % | |||||||||||||||
| Interest-bearing due from banks | 26,994 | 0.39 | % | 31,655 | 0.39 | % | 30,099 | 0.40 | % | |||||||||||||||
| Loans held for sale | 89 | 9.11 | % | 151 | 7.88 | % | 119 | 10.22 | % | |||||||||||||||
| Loans receivable: | ||||||||||||||||||||||||
| Taxable | 582,498 | 5.37 | % | 587,675 | 5.40 | % | 595,514 | 5.45 | % | |||||||||||||||
| Tax-exempt | 41,925 | 5.15 | % | 39,909 | 5.28 | % | 39,662 | 5.82 | % | |||||||||||||||
| Total loans receivable | 624,423 | 5.35 | % | 627,584 | 5.40 | % | 635,176 | 5.47 | % | |||||||||||||||
| Total Earning Assets | 1,157,284 | 4.16 | % | 1,164,927 | 4.16 | % | 1,137,087 | 4.35 | % | |||||||||||||||
| Cash | 16,127 | 16,310 | 16,299 | |||||||||||||||||||||
| Unrealized gain/loss on securities | 10,626 | 8,222 | 2,752 | |||||||||||||||||||||
| Allowance for loan losses | (7,391 | ) | (7,476 | ) | (8,780 | ) | ||||||||||||||||||
| Bank premises and equipment | 16,252 | 16,415 | 17,283 | |||||||||||||||||||||
| Intangible Asset - Core Deposit Intangible | 50 | 58 | 83 | |||||||||||||||||||||
| Intangible Asset - Goodwill | 11,942 | 11,942 | 11,942 | |||||||||||||||||||||
| Other assets | 37,135 | 38,442 | 42,326 | |||||||||||||||||||||
| Total Assets | $ | 1,242,025 | $ | 1,248,840 | $ | 1,218,992 | ||||||||||||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Interest checking | $ | 191,705 | 0.12 | % | $ | 190,681 | 0.11 | % | $ | 179,617 | 0.12 | % | ||||||||||||
| Money market | 194,834 | 0.15 | % | 198,999 | 0.14 | % | 195,596 | 0.14 | % | |||||||||||||||
| Savings | 127,853 | 0.10 | % | 122,955 | 0.10 | % | 118,529 | 0.10 | % | |||||||||||||||
| Certificates of deposit | 122,007 | 0.71 | % | 128,750 | 0.73 | % | 134,833 | 0.87 | % | |||||||||||||||
| Individual Retirement Accounts | 113,806 | 0.40 | % | 116,672 | 0.40 | % | 122,389 | 0.38 | % | |||||||||||||||
| Other time deposits | 803 | 0.00 | % | 677 | 0.59 | % | 812 | 0.00 | % | |||||||||||||||
| Total interest-bearing deposits | 751,008 | 0.26 | % | 758,734 | 0.27 | % | 751,776 | 0.30 | % | |||||||||||||||
| Borrowed funds: | ||||||||||||||||||||||||
| Short-term | 6,017 | 0.07 | % | 6,886 | 0.12 | % | 10,049 | 0.20 | % | |||||||||||||||
| Long-term | 73,020 | 4.03 | % | 73,092 | 4.03 | % | 73,300 | 4.03 | % | |||||||||||||||
| Total borrowed funds | 79,037 | 3.73 | % | 79,978 | 3.69 | % | 83,349 | 3.57 | % | |||||||||||||||
| Total Interest-bearing Liabilities | 830,045 | 0.59 | % | 838,712 | 0.59 | % | 835,125 | 0.63 | % | |||||||||||||||
| Demand deposits | 215,019 | 213,230 | 193,402 | |||||||||||||||||||||
| Other liabilities | 8,120 | 9,144 | 8,158 | |||||||||||||||||||||
| Total Liabilities | 1,053,184 | 1,061,086 | 1,036,685 | |||||||||||||||||||||
| Stockholders' equity, excluding accumulated | ||||||||||||||||||||||||
| other comprehensive income/loss | 181,944 | 182,336 | 180,440 | |||||||||||||||||||||
| Accumulated other comprehensive income/loss | 6,897 | 5,418 | 1,867 | |||||||||||||||||||||
| Total Stockholders' Equity | 188,841 | 187,754 | 182,307 | |||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,242,025 | $ | 1,248,840 | $ | 1,218,992 | ||||||||||||||||||
| Interest Rate Spread | 3.57 | % | 3.57 | % | 3.72 | % | ||||||||||||||||||
| Net Interest Income/Earning Assets | 3.74 | % | 3.73 | % | 3.89 | % | ||||||||||||||||||
| Total Deposits (Interest-bearing | ||||||||||||||||||||||||
| and Demand) | $ | 966,027 | $ | 971,964 | $ | 945,178 | ||||||||||||||||||
(1) Changes in income on tax-exempt securities and loans are presented on a fully tax-equivalent basis, using the Corporation’s marginal federal income tax rate of 35%.
(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.
| COMPARISON OF NONINTEREST INCOME | ||||||||||||
| (In Thousands) | Three Months Ended | |||||||||||
| March 31, | Dec. 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Service charges on deposit accounts | $ | 1,022 | $ | 1,213 | $ | 1,223 | ||||||
| Service charges and fees | 113 | 133 | 127 | |||||||||
| Trust and financial management revenue | 1,114 | 1,165 | 1,047 | |||||||||
| Brokerage revenue | 219 | 219 | 227 | |||||||||
| Insurance commissions, fees and premiums | 40 | 15 | 32 | |||||||||
| Interchange revenue from debit card transactions | 474 | 485 | 453 | |||||||||
| Net gains from sales of loans | 147 | 211 | 151 | |||||||||
| (Decrease) increase in fair value of servicing rights | (117 | ) | (62 | ) | 105 | |||||||
| Increase in cash surrender value of life insurance | 97 | 98 | 88 | |||||||||
| Other operating income | 378 | 325 | 298 | |||||||||
| Total noninterest income, before realized gains | ||||||||||||
| on available-for-sale securities, net | $ | 3,487 | $ | 3,802 | $ | 3,751 | ||||||
| COMPARISON OF NONINTEREST EXPENSE | ||||||||||||
| (In Thousands) | Three Months Ended | |||||||||||
| March 31, | Dec. 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Salaries and wages | $ | 3,487 | $ | 3,562 | $ | 3,565 | ||||||
| Pensions and other employee benefits | 1,385 | 1,206 | 1,319 | |||||||||
| Occupancy expense, net | 722 | 626 | 715 | |||||||||
| Furniture and equipment expense | 454 | 460 | 472 | |||||||||
| FDIC assessments | 151 | 156 | 147 | |||||||||
| Pennsylvania shares tax | 249 | 336 | 341 | |||||||||
| Professional fees | 122 | 272 | 148 | |||||||||
| Automated teller machine and interchange expense | 246 | 256 | 211 | |||||||||
| Software subscriptions | 197 | 209 | 190 | |||||||||
| Other operating expense | 1,451 | 1,167 | 1,416 | |||||||||
| Total noninterest expense | $ | 8,464 | $ | 8,250 | $ | 8,524 | ||||||