EXHIBIT 99.3 – Supplemental, Unaudited Financial Information
CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS
(In Thousands, Except Per Share Data) (Unaudited)
| 9 MONTHS ENDED | % | |||||||||||
| SEPTEMBER 30, | INCREASE | |||||||||||
| 2015 | 2014 | (DECREASE) | ||||||||||
| EARNINGS PERFORMANCE | ||||||||||||
| Net Income | $ | 12,406 | $ | 12,718 | -2.45 | % | ||||||
| Return on Average Assets | 1.32 | % | 1.37 | % | -3.65 | % | ||||||
| Return on Average Equity | 8.78 | % | 9.18 | % | -4.36 | % | ||||||
| BALANCE SHEET HIGHLIGHTS | ||||||||||||
| Total Assets | $ | 1,232,531 | $ | 1,256,533 | -1.91 | % | ||||||
| Available-for-Sale Securities | 461,713 | 508,253 | -9.16 | % | ||||||||
| Loans (Net) | 672,449 | 621,960 | 8.12 | % | ||||||||
| Allowance for Loan Losses | 7,416 | 7,449 | -0.44 | % | ||||||||
| Deposits and Repo Sweep Accounts | 966,856 | 988,294 | -2.17 | % | ||||||||
| OFF-BALANCE SHEET | ||||||||||||
| Outstanding Balance of Mortgage Loans Sold with Servicing Retained | 152,275 | 150,695 | 1.05 | % | ||||||||
| Trust Assets Under Management | 790,215 | 812,376 | -2.73 | % | ||||||||
| SHAREHOLDERS' VALUE (PER COMMON SHARE) | ||||||||||||
| Net Income - Basic | $ | 1.02 | $ | 1.02 | 0.00 | % | ||||||
| Net Income - Diluted | $ | 1.01 | $ | 1.02 | -0.98 | % | ||||||
| Dividends | $ | 0.78 | $ | 0.78 | 0.00 | % | ||||||
| Common Book Value | $ | 15.60 | $ | 15.14 | 3.04 | % | ||||||
| Tangible Common Book Value | $ | 14.62 | $ | 14.17 | 3.18 | % | ||||||
| Market Value (Last Trade) | $ | 19.52 | $ | 19.00 | 2.74 | % | ||||||
| Market Value / Common Book Value | 125.13 | % | 125.50 | % | -0.29 | % | ||||||
| Market Value / Tangible Common Book Value | 133.52 | % | 134.09 | % | -0.43 | % | ||||||
| Price Earnings Multiple (Annualized) | 14.35 | 13.97 | 2.72 | % | ||||||||
| Dividend Yield (Annualized) | 5.33 | % | 5.47 | % | -2.56 | % | ||||||
| Common Shares Outstanding, End of Period | 12,187,033 | 12,339,120 | -1.23 | % | ||||||||
| SAFETY AND SOUNDNESS | ||||||||||||
| Tangible Common Equity / Tangible Assets | 14.59 | % | 14.05 | % | 3.84 | % | ||||||
| Nonperforming Assets / Total Assets | 1.28 | % | 1.45 | % | -11.72 | % | ||||||
| Allowance for Loan Losses / Total Loans | 1.09 | % | 1.18 | % | -7.63 | % | ||||||
| Total Risk Based Capital Ratio (a) | 24.63 | % | 27.42 | % | -10.18 | % | ||||||
| Tier 1 Risk Based Capital Ratio (a) | 23.47 | % | 26.09 | % | -10.04 | % | ||||||
| Common Equity Tier 1 Risk Based Capital Ratio (a) | 23.47 | % | ||||||||||
| Leverage Ratio (a) | 13.95 | % | �� | 13.78 | % | 1.23 | % | |||||
| AVERAGE BALANCES | ||||||||||||
| Average Assets | $ | 1,249,156 | $ | 1,236,883 | 0.99 | % | ||||||
| Average Equity | $ | 188,305 | $ | 184,699 | 1.95 | % | ||||||
(a) Capital ratios for the most recent period are estimated. The Common Equity Tier 1 Risk Based Capital Ratio became applicable to the Corporation in the first quarter 2015.
| 1 |
QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION
| (In Thousands) (Unaudited) | For the Three Months Ended: | |||||||||||||||||||||||||||
| Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | ||||||||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| Interest income | $ | 11,134 | $ | 11,186 | $ | 11,163 | $ | 11,468 | $ | 11,572 | $ | 11,563 | $ | 11,406 | ||||||||||||||
| Interest expense | 1,126 | 1,176 | 1,213 | 1,257 | 1,287 | 1,290 | 1,288 | |||||||||||||||||||||
| Net interest income | 10,008 | 10,010 | 9,950 | 10,211 | 10,285 | 10,273 | 10,118 | |||||||||||||||||||||
| Provision (credit) for loan losses | 302 | 221 | 3 | 123 | 218 | 446 | (311 | ) | ||||||||||||||||||||
| Net interest income after provision (credit) for loan losses | 9,706 | 9,789 | 9,947 | 10,088 | 10,067 | 9,827 | 10,429 | |||||||||||||||||||||
| Other income | 3,961 | 3,962 | 3,487 | 3,802 | 3,887 | 3,980 | 3,751 | |||||||||||||||||||||
| Net gains on available-for-sale securities | 79 | 932 | 74 | 210 | 760 | 103 | 31 | |||||||||||||||||||||
| Loss on prepayment of borrowings | 0 | 910 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Other expenses | 8,117 | 7,964 | 8,464 | 8,250 | 9,036 | 8,347 | 8,524 | |||||||||||||||||||||
| Income before income tax provision | 5,629 | 5,809 | 5,044 | 5,850 | 5,678 | 5,563 | 5,687 | |||||||||||||||||||||
| Income tax provision | 1,395 | 1,452 | 1,229 | 1,482 | 1,411 | 1,400 | 1,399 | |||||||||||||||||||||
| Net income | $ | 4,234 | $ | 4,357 | $ | 3,815 | $ | 4,368 | $ | 4,267 | $ | 4,163 | $ | 4,288 | ||||||||||||||
| Net income per share – basic | $ | 0.35 | $ | 0.36 | $ | 0.31 | $ | 0.35 | $ | 0.34 | $ | 0.33 | $ | 0.35 | ||||||||||||||
| Net income per share – diluted | $ | 0.35 | $ | 0.36 | $ | 0.31 | $ | 0.35 | $ | 0.34 | $ | 0.33 | $ | 0.34 | ||||||||||||||
QUARTERLY CONDENSED, CONSOLIDATED BALANCE SHEET INFORMATION
| (In Thousands) (Unaudited) | As of: | |||||||||||||||
| Sept. 30, | June 30, | Dec. 31, | Sept. 30, | |||||||||||||
| 2015 | 2015 | 2014 | 2014 | |||||||||||||
| ASSETS | ||||||||||||||||
| Cash & Due from Banks | $ | 32,221 | $ | 35,405 | $ | 36,047 | $ | 55,439 | ||||||||
| Available-for-Sale Securities | 461,713 | 497,111 | 516,807 | 508,253 | ||||||||||||
| Loans Held for Sale | 76 | 192 | 0 | 418 | ||||||||||||
| Loans, Net | 672,449 | 656,518 | 623,209 | 621,960 | ||||||||||||
| Intangible Assets | 11,978 | 11,983 | 11,994 | 12,003 | ||||||||||||
| Other Assets | 54,094 | 54,513 | 53,906 | 58,460 | ||||||||||||
| TOTAL ASSETS | $ | 1,232,531 | $ | 1,255,722 | $ | 1,241,963 | $ | 1,256,533 | ||||||||
| LIABILITIES | ||||||||||||||||
| Deposits | $ | 961,112 | $ | 978,449 | $ | 967,989 | $ | 981,529 | ||||||||
| Repo Sweep Accounts | 5,744 | 4,806 | 5,537 | 6,765 | ||||||||||||
| Total Deposits and Repo Sweeps | 966,856 | 983,255 | 973,526 | 988,294 | ||||||||||||
| Borrowed Funds | 67,342 | 77,916 | 73,060 | 73,131 | ||||||||||||
| Other Liabilities | 8,233 | 7,578 | 7,015 | 8,234 | ||||||||||||
| TOTAL LIABILITIES | 1,042,431 | 1,068,749 | 1,053,601 | 1,069,659 | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||
| Common Shareholders' Equity, Excluding Accumulated Other Comprehensive Income/ Loss | 183,978 | 182,887 | 183,002 | 182,837 | ||||||||||||
| Accumulated Other Comprehensive Income/ Loss: | ||||||||||||||||
| Net Unrealized Gains/Losses on Available-for-sale Securities | 6,116 | 4,077 | 5,281 | 3,940 | ||||||||||||
| Defined Benefit Plans Adjustment, Net | 6 | 9 | 79 | 97 | ||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 190,100 | 186,973 | 188,362 | 186,874 | ||||||||||||
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 1,232,531 | $ | 1,255,722 | $ | 1,241,963 | $ | 1,256,533 | ||||||||
| 2 |
| AVAILABLE-FOR-SALE SECURITIES | September 30, 2015 | June 30, 2015 | December 31, 2014 | |||||||||||||||||||||
| (In Thousands) | Amortized | Fair | Amortized | Fair | Amortized | Fair | ||||||||||||||||||
| Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||
| Obligations of U.S. Government agencies | $ | 15,664 | $ | 15,621 | $ | 27,189 | $ | 26,871 | $ | 27,221 | $ | 26,676 | ||||||||||||
| Obligations of states and political subdivisions: | ||||||||||||||||||||||||
| Tax-exempt | 108,115 | 112,396 | 115,908 | 119,749 | 120,086 | 124,839 | ||||||||||||||||||
| Taxable | 34,464 | 35,124 | 34,872 | 35,135 | 33,637 | 33,878 | ||||||||||||||||||
| Mortgage-backed securities | 71,681 | 72,697 | 76,323 | 76,790 | 82,479 | 83,903 | ||||||||||||||||||
| Collateralized mortgage obligations, Issued by U.S. Government agencies | 216,981 | 218,052 | 231,148 | 230,794 | 239,620 | 238,823 | ||||||||||||||||||
| Other collateralized debt obligations | 34 | 34 | 34 | 34 | 34 | 34 | ||||||||||||||||||
| Total debt securities | 446,939 | 453,924 | 485,474 | 489,373 | 503,077 | 508,153 | ||||||||||||||||||
| Marketable equity securities | 5,365 | 7,789 | 5,365 | 7,738 | 5,605 | 8,654 | ||||||||||||||||||
| Total | $ | 452,304 | $ | 461,713 | $ | 490,839 | $ | 497,111 | $ | 508,682 | $ | 516,807 | ||||||||||||
| Summary of Loans by Type | ||||||||||||||||
| (Excludes Loans Held for Sale) | ||||||||||||||||
| (In Thousands) | Sept. 30, | June 30, | Dec. 31, | Sept. 30, | ||||||||||||
| 2015 | 2015 | 2014 | 2014 | |||||||||||||
| Residential mortgage: | ||||||||||||||||
| Residential mortgage loans - first liens | $ | 298,096 | $ | 294,978 | $ | 291,882 | $ | 290,943 | ||||||||
| Residential mortgage loans - junior liens | 20,601 | 21,502 | 21,166 | 21,843 | ||||||||||||
| Home equity lines of credit | 39,572 | 39,140 | 36,629 | 35,975 | ||||||||||||
| 1-4 Family residential construction | 23,633 | 19,651 | 16,739 | 16,895 | ||||||||||||
| Total residential mortgage | 381,902 | 375,271 | 366,416 | 365,656 | ||||||||||||
| Commercial: | ||||||||||||||||
| Commercial loans secured by real estate | 135,760 | 135,063 | 145,878 | 144,410 | ||||||||||||
| Commercial and industrial | 72,011 | 61,427 | 50,157 | 50,615 | ||||||||||||
| Political subdivisions | 40,186 | 40,908 | 17,534 | 14,823 | ||||||||||||
| Commercial construction and land | 6,852 | 7,826 | 6,938 | 9,069 | ||||||||||||
| Loans secured by farmland | 7,521 | 7,565 | 7,916 | 8,542 | ||||||||||||
| Multi-family (5 or more) residential | 8,194 | 8,561 | 8,917 | 9,092 | ||||||||||||
| Agricultural loans | 4,588 | 4,287 | 3,221 | 3,284 | ||||||||||||
| Other commercial loans | 12,691 | 12,809 | 13,334 | 13,620 | ||||||||||||
| Total commercial | 287,803 | 278,446 | 253,895 | 253,455 | ||||||||||||
| Consumer | 10,160 | 10,101 | 10,234 | 10,298 | ||||||||||||
| Total | 679,865 | 663,818 | 630,545 | 629,409 | ||||||||||||
| Less: allowance for loan losses | (7,416 | ) | (7,300 | ) | (7,336 | ) | (7,449 | ) | ||||||||
| Loans, net | $ | 672,449 | $ | 656,518 | $ | 623,209 | $ | 621,960 | ||||||||
| Loans Held for Sale | ||||||||||||||||
| (In Thousands) | Sept. 30, | June 30, | Dec. 31, | Sept. 30, | ||||||||||||
| 2015 | 2015 | 2014 | 2014 | |||||||||||||
| Residential mortgage loans originated and serviced - outstanding balance | $ | 152,351 | $ | 151,324 | $ | 152,505 | $ | 151,113 | ||||||||
| Less: outstanding balance of loans sold | (152,275 | ) | (151,132 | ) | (152,505 | ) | (150,695 | ) | ||||||||
| Loans held for sale, net | $ | 76 | $ | 192 | $ | 0 | $ | 418 | ||||||||
| 3 |
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(In Thousands)
| 3 Months | 3 Months | 9 Months | 9 Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | |||||||||||||
| 2015 | 2015 | 2015 | 2014 | |||||||||||||
| Balance, beginning of period | $ | 7,300 | $ | 7,134 | $ | 7,336 | $ | 8,663 | ||||||||
| Charge-offs | (197 | ) | (77 | ) | (496 | ) | (1,881 | ) | ||||||||
| Recoveries | 11 | 22 | 50 | 314 | ||||||||||||
| Net charge-offs | (186 | ) | (55 | ) | (446 | ) | (1,567 | ) | ||||||||
| Provision for loan losses | 302 | 221 | 526 | 353 | ||||||||||||
| Balance, end of period | $ | 7,416 | $ | 7,300 | $ | 7,416 | $ | 7,449 | ||||||||
PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS
AND TROUBLED DEBT RESTRUCTURINGS (TDRs)
(In Thousands)
| Sept. 30, | June 30, | Dec 31, | Sept. 30, | |||||||||||||
| 2015 | 2015 | 2014 | 2014 | |||||||||||||
| Impaired loans with a valuation allowance | $ | 1,963 | $ | 3,880 | $ | 3,241 | $ | 4,059 | ||||||||
| Impaired loans without a valuation allowance | 7,812 | 7,764 | 9,075 | 10,035 | ||||||||||||
| Total impaired loans | $ | 9,775 | $ | 11,644 | $ | 12,316 | $ | 14,094 | ||||||||
| Total loans past due 30-89 days and still accruing | $ | 4,780 | $ | 3,803 | $ | 7,121 | $ | 5,458 | ||||||||
| Nonperforming assets: | ||||||||||||||||
| Total nonaccrual loans | $ | 11,632 | $ | 12,060 | $ | 12,610 | $ | 13,722 | ||||||||
| Total loans past due 90 days or more and still accruing | 2,833 | 2,529 | 2,843 | 2,602 | ||||||||||||
| Total nonperforming loans | 14,465 | 14,589 | 15,453 | 16,324 | ||||||||||||
| Foreclosed assets held for sale (real estate) | 1,363 | 1,223 | 1,189 | 1,888 | ||||||||||||
| Total nonperforming assets | $ | 15,828 | $ | 15,812 | $ | 16,642 | $ | 18,212 | ||||||||
| Loans subject to troubled debt restructurings (TDRs): | ||||||||||||||||
| Performing | $ | 1,043 | $ | 1,119 | $ | 1,807 | $ | 1,834 | ||||||||
| Nonperforming | 5,182 | 5,216 | 5,388 | 6,172 | ||||||||||||
| Total TDRs | $ | 6,225 | $ | 6,335 | $ | 7,195 | $ | 8,006 | ||||||||
| Total nonperforming loans as a % of loans | 2.13 | % | 2.20 | % | 2.45 | % | 2.59 | % | ||||||||
| Total nonperforming assets as a % of assets | 1.28 | % | 1.26 | % | 1.34 | % | 1.45 | % | ||||||||
| Allowance for loan losses as a % of total loans | 1.09 | % | 1.10 | % | 1.16 | % | 1.18 | % | ||||||||
| Allowance for loan losses as a % of nonperforming loans | 51.27 | % | 50.04 | % | 47.47 | % | 45.63 | % | ||||||||
| 4 |
Analysis of Average Daily Balances and Annualized Rates
(Dollars in Thousands)
| 3 Months | Annualized | 3 Months | Annualized | 3 Months | Annualized | |||||||||||||||||||
| Ended | Rate of | Ended | Rate of | Ended | Rate of | |||||||||||||||||||
| 9/30/2015 | Return/ | 6/30/2015 | Return/ | 9/30/2014 | 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 | $ | 361,481 | 2.02 | % | $ | 389,705 | 2.06 | % | $ | 381,833 | 2.16 | % | ||||||||||||
| Tax-exempt | 111,735 | 5.14 | % | 116,421 | 5.33 | % | 123,949 | 5.22 | % | |||||||||||||||
| Total available-for-sale securities | 473,216 | 2.75 | % | 506,126 | 2.81 | % | 505,782 | 2.91 | % | |||||||||||||||
| Interest-bearing due from banks | 19,774 | 0.46 | % | 21,970 | 0.46 | % | 35,133 | 0.37 | % | |||||||||||||||
| Loans held for sale | 245 | 8.10 | % | 145 | 8.30 | % | 263 | 7.54 | % | |||||||||||||||
| Loans receivable: | ||||||||||||||||||||||||
| Taxable | 610,516 | 5.10 | % | 592,188 | 5.25 | % | 587,799 | 5.43 | % | |||||||||||||||
| Tax-exempt | 63,219 | 4.50 | % | 49,026 | 4.88 | % | 38,537 | 5.48 | % | |||||||||||||||
| Total loans receivable | 673,735 | 5.05 | % | 641,214 | 5.22 | % | 626,336 | 5.43 | % | |||||||||||||||
| Total Earning Assets | 1,166,970 | 4.04 | % | 1,169,455 | 4.09 | % | 1,167,514 | 4.19 | % | |||||||||||||||
| Cash | 16,961 | 17,072 | 17,361 | |||||||||||||||||||||
| Unrealized gain/loss on securities | 7,015 | 10,260 | 7,810 | |||||||||||||||||||||
| Allowance for loan losses | (7,376 | ) | (7,226 | ) | (7,332 | ) | ||||||||||||||||||
| Bank premises and equipment | 15,808 | 16,095 | 16,581 | |||||||||||||||||||||
| Intangible Asset - Core Deposit Intangible | 38 | 44 | 64 | |||||||||||||||||||||
| Intangible Asset - Goodwill | 11,942 | 11,942 | 11,942 | |||||||||||||||||||||
| Other assets | 38,294 | 38,065 | 40,201 | |||||||||||||||||||||
| Total Assets | $ | 1,249,652 | $ | 1,255,707 | $ | 1,254,141 | ||||||||||||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Interest checking | $ | 197,189 | 0.11 | % | $ | 199,373 | 0.11 | % | $ | 186,034 | 0.12 | % | ||||||||||||
| Money market | 202,106 | 0.15 | % | 196,537 | 0.15 | % | 202,536 | 0.14 | % | |||||||||||||||
| Savings | 128,939 | 0.10 | % | 128,879 | 0.10 | % | 123,447 | 0.10 | % | |||||||||||||||
| Certificates of deposit | 125,886 | 0.66 | % | 122,634 | 0.67 | % | 137,136 | 0.76 | % | |||||||||||||||
| Individual Retirement Accounts | 109,661 | 0.41 | % | 111,765 | 0.41 | % | 120,079 | 0.40 | % | |||||||||||||||
| Other time deposits | 1,514 | 0.26 | % | 1,125 | 0.00 | % | 1,525 | 0.00 | % | |||||||||||||||
| Total interest-bearing deposits | 765,295 | 0.25 | % | 760,313 | 0.25 | % | 770,757 | 0.28 | % | |||||||||||||||
| Borrowed funds: | ||||||||||||||||||||||||
| Short-term | 12,972 | 0.28 | % | 9,185 | 0.22 | % | 5,325 | 0.07 | % | |||||||||||||||
| Long-term | 62,876 | 3.98 | % | 69,211 | 4.01 | % | 73,162 | 4.03 | % | |||||||||||||||
| Total borrowed funds | 75,848 | 3.34 | % | 78,396 | 3.57 | % | 78,487 | 3.76 | % | |||||||||||||||
| Total Interest-bearing Liabilities | 841,143 | 0.53 | % | 838,709 | 0.56 | % | 849,244 | 0.60 | % | |||||||||||||||
| Demand deposits | 212,022 | 220,839 | 208,773 | |||||||||||||||||||||
| Other liabilities | 8,803 | 7,756 | 10,975 | |||||||||||||||||||||
| Total Liabilities | 1,061,968 | 1,067,304 | 1,068,992 | |||||||||||||||||||||
| Stockholders' equity, excluding other comprehensive income/loss | 183,116 | 181,683 | 180,042 | |||||||||||||||||||||
| Other comprehensive income/loss | 4,568 | 6,720 | 5,107 | |||||||||||||||||||||
| Total Stockholders' Equity | 187,684 | 188,403 | 185,149 | |||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,249,652 | $ | 1,255,707 | $ | 1,254,141 | ||||||||||||||||||
| Interest Rate Spread | 3.51 | % | 3.53 | % | 3.59 | % | ||||||||||||||||||
| Net Interest Income/Earning Assets | 3.66 | % | 3.69 | % | 3.75 | % | ||||||||||||||||||
| Total Deposits (Interest-bearing and Demand) | $ | 977,317 | $ | 981,152 | $ | 979,530 | ||||||||||||||||||
(1) Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-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.
| 5 |
Analysis of Average Daily Balances and Annualized Rates
(Dollars in Thousands)
| 9 Months | Annualized | 9 Months | Annualized | |||||||||||||
| Ended | Rate of | Ended | Rate of | |||||||||||||
| 9/30/2015 | Return/ | 9/30/2014 | Return/ | |||||||||||||
| Average | Cost of | Average | Cost of | |||||||||||||
| Balance | Funds % | Balance | Funds % | |||||||||||||
| EARNING ASSETS | ||||||||||||||||
| Available-for-sale securities, at amortized cost: | ||||||||||||||||
| Taxable | $ | 379,666 | 2.08 | % | $ | 366,853 | 2.18 | % | ||||||||
| Tax-exempt | 115,255 | 5.27 | % | 124,508 | 5.34 | % | ||||||||||
| Total available-for-sale securities | 494,921 | 2.82 | % | 491,361 | 2.98 | % | ||||||||||
| Interest-bearing due from banks | 22,886 | 0.43 | % | 32,798 | 0.39 | % | ||||||||||
| Loans held for sale | 160 | 8.36 | % | 222 | 7.83 | % | ||||||||||
| Loans receivable: | ||||||||||||||||
| Taxable | 595,170 | 5.24 | % | 589,607 | 5.47 | % | ||||||||||
| Tax-exempt | 51,468 | 4.80 | % | 38,203 | 5.64 | % | ||||||||||
| Total loans receivable | 646,638 | 5.20 | % | 627,810 | 5.48 | % | ||||||||||
| Total Earning Assets | 1,164,605 | 4.10 | % | 1,152,191 | 4.27 | % | ||||||||||
| Cash | 16,723 | 17,052 | ||||||||||||||
| Unrealized gain/loss on securities | 9,287 | 5,719 | ||||||||||||||
| Allowance for loan losses | (7,331 | ) | (8,166 | ) | ||||||||||||
| Bank premises and equipment | 16,050 | 16,915 | ||||||||||||||
| Intangible Asset - Core Deposit Intangible | 44 | 74 | ||||||||||||||
| Intangible Asset - Goodwill | 11,942 | 11,942 | ||||||||||||||
| Other assets | 37,836 | 41,156 | ||||||||||||||
| Total Assets | $ | 1,249,156 | $ | 1,236,883 | ||||||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||
| Interest checking | $ | 196,109 | 0.11 | % | $ | 181,580 | 0.12 | % | ||||||||
| Money market | 197,852 | 0.15 | % | 198,987 | 0.14 | % | ||||||||||
| Savings | 128,561 | 0.10 | % | 121,257 | 0.10 | % | ||||||||||
| Certificates of deposit | 123,523 | 0.68 | % | 136,748 | 0.81 | % | ||||||||||
| Individual Retirement Accounts | 111,729 | 0.41 | % | 121,143 | 0.39 | % | ||||||||||
| Other time deposits | 1,150 | 0.12 | % | 1,161 | 0.00 | % | ||||||||||
| Total interest-bearing deposits | 758,924 | 0.26 | % | 760,876 | 0.29 | % | ||||||||||
| Borrowed funds: | ||||||||||||||||
| Short-term | 9,417 | 0.21 | % | 6,696 | 0.14 | % | ||||||||||
| Long-term | 68,332 | 4.01 | % | 73,231 | 4.03 | % | ||||||||||
| Total borrowed funds | 77,749 | 3.55 | % | 79,927 | 3.71 | % | ||||||||||
| Total Interest-bearing Liabilities | 836,673 | 0.56 | % | 840,803 | 0.61 | % | ||||||||||
| Demand deposits | 215,949 | 202,336 | ||||||||||||||
| Other liabilities | 8,229 | 9,045 | ||||||||||||||
| Total Liabilities | 1,060,851 | 1,052,184 | ||||||||||||||
| Stockholders' equity, excluding other comprehensive income/loss | 182,252 | 180,912 | ||||||||||||||
| Other comprehensive income/loss | 6,053 | 3,787 | ||||||||||||||
| Total Stockholders' Equity | 188,305 | 184,699 | ||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,249,156 | $ | 1,236,883 | ||||||||||||
| Interest Rate Spread | 3.54 | % | 3.66 | % | ||||||||||||
| Net Interest Income/Earning Assets | 3.69 | % | 3.82 | % | ||||||||||||
| Total Deposits (Interest-bearing and Demand) | $ | 974,873 | $ | 963,212 | ||||||||||||
(1) Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-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.
| 6 |
| COMPARISON OF NONINTEREST INCOME | ||||||||||||||||||||
| (In Thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| Service charges on deposit accounts | $ | 1,302 | $ | 1,305 | $ | 1,275 | $ | 3,629 | $ | 3,812 | ||||||||||
| Service charges and fees | 137 | 123 | 144 | 373 | 405 | |||||||||||||||
| Trust and financial management revenue | 1,123 | 1,241 | 1,140 | 3,478 | 3,325 | |||||||||||||||
| Brokerage revenue | 215 | 206 | 213 | 640 | 682 | |||||||||||||||
| Insurance commissions, fees and premiums | 24 | 23 | 44 | 87 | 103 | |||||||||||||||
| Interchange revenue from debit card transactions | 482 | 500 | 504 | 1,456 | 1,474 | |||||||||||||||
| Net gains from sales of loans | 243 | 183 | 141 | 573 | 557 | |||||||||||||||
| Increase (decrease) in fair value of servicing rights | 13 | (33 | ) | (17 | ) | (137 | ) | 35 | ||||||||||||
| Increase in cash surrender value of life insurance | 95 | 102 | 99 | 294 | 278 | |||||||||||||||
| Net (loss) gain from premises and equipment | (1 | ) | 0 | 9 | (1 | ) | 8 | |||||||||||||
| Other operating income | 328 | 312 | 335 | 1,018 | 939 | |||||||||||||||
| Total other operating income, before realized gains on available-for-sale securities, net | $ | 3,961 | $ | 3,962 | $ | 3,887 | $ | 11,410 | $ | 11,618 | ||||||||||
| COMPARISON OF NONINTEREST EXPENSE | ||||||||||||||||||||
| (In Thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| Salaries and wages | $ | 3,744 | $ | 3,603 | $ | 4,348 | $ | 10,834 | $ | 11,559 | ||||||||||
| Pensions and other employee benefits | 1,016 | 935 | 1,091 | 3,336 | 3,563 | |||||||||||||||
| Occupancy expense, net | 623 | 640 | 646 | 1,985 | 2,002 | |||||||||||||||
| Furniture and equipment expense | 477 | 467 | 461 | 1,398 | 1,399 | |||||||||||||||
| FDIC Assessments | 155 | 148 | 151 | 454 | 444 | |||||||||||||||
| Pennsylvania shares tax | 311 | 317 | 336 | 877 | 1,014 | |||||||||||||||
| Professional fees | 128 | 113 | 135 | 363 | 427 | |||||||||||||||
| Automated teller machine and interchange expense | 234 | 255 | 239 | 735 | 668 | |||||||||||||||
| Software subscriptions | 209 | 211 | 184 | 617 | 575 | |||||||||||||||
| Other operating expense | 1,220 | 1,275 | 1,445 | 3,946 | 4,256 | |||||||||||||||
| Total noninterest expense, before loss on prepayment of borrowings | 8,117 | 7,964 | 9,036 | 24,545 | 25,907 | |||||||||||||||
| Loss on prepayment of borrowings | 0 | 910 | 0 | 910 | 0 | |||||||||||||||
| Total noninterest expense | $ | 8,117 | $ | 8,874 | $ | 9,036 | $ | 25,455 | $ | 25,907 | ||||||||||
| 7 |