EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS
(In Thousands, Except Per Share Data) (Unaudited)
| | 9 MONTHS ENDED | | | % | |
| | SEPTEMBER 30, | | | INCREASE | |
| | 2016 | | | 2015 | | | (DECREASE) | |
EARNINGS PERFORMANCE | | | | | | | | | | | | |
Net Income | | $ | 11,531 | | | $ | 12,406 | | | | -7.05 | % |
Return on Average Assets | | | 1.25 | % | | | 1.32 | % | | | -5.30 | % |
Return on Average Equity | | | 8.16 | % | | | 8.78 | % | | | -7.06 | % |
| | | | | | | | | | | | |
BALANCE SHEET HIGHLIGHTS | | | | | | | | | | | | |
Total Assets | | $ | 1,245,333 | | | $ | 1,232,531 | | | | 1.04 | % |
Available-for-Sale Securities | | | 409,800 | | | | 461,713 | | | | -11.24 | % |
Loans (Net) | | | 733,917 | | | | 672,449 | | | | 9.14 | % |
Allowance for Loan Losses | | | 8,421 | | | | 7,416 | | | | 13.55 | % |
Deposits and Repo Sweep Accounts | | | 998,200 | | | | 966,856 | | | | 3.24 | % |
| | | | | | | | | | | | |
OFF-BALANCE SHEET | | | | | | | | | | | | |
Outstanding Balance of Mortgage Loans Sold with Servicing Retained | | | 157,845 | | | | 152,275 | | | | 3.66 | % |
Trust Assets Under Management | | | 867,852 | | | | 790,215 | | | | 9.82 | % |
| | | | | | | | | | | | |
SHAREHOLDERS' VALUE (PER COMMON SHARE) | | | | | | | | | | | | |
Net Income - Basic | | $ | 0.95 | | | $ | 1.02 | | | | -6.86 | % |
Net Income - Diluted | | $ | 0.95 | | | $ | 1.01 | | | | -5.94 | % |
Cash Dividends Declared | | $ | 0.78 | | | $ | 0.78 | | | | 0.00 | % |
Common Book Value | | $ | 15.77 | | | $ | 15.60 | | | | 1.09 | % |
Tangible Common Book Value | | $ | 14.78 | | | $ | 14.62 | | | | 1.09 | % |
Market Value (Last Trade) | | $ | 21.97 | | | $ | 19.52 | | | | 12.55 | % |
Market Value / Common Book Value | | | 139.32 | % | | | 125.13 | % | | | 11.34 | % |
Market Value / Tangible Common Book Value | | | 148.65 | % | | | 133.52 | % | | | 11.33 | % |
Price Earnings Multiple (Annualized) | | | 17.34 | | | | 14.35 | | | | 20.84 | % |
Dividend Yield (Annualized) | | | 4.73 | % | | | 5.33 | % | | | -11.26 | % |
Common Shares Outstanding, End of Period | | | 12,087,223 | | | | 12,187,033 | | | | -0.82 | % |
| | | | | | | | | | | | |
SAFETY AND SOUNDNESS | | | | | | | | | | | | |
Tangible Common Equity / Tangible Assets | | | 14.48 | % | | | 14.59 | % | | | -0.69 | % |
Nonperforming Assets / Total Assets | | | 1.61 | % | | | 1.28 | % | | | 25.78 | % |
Allowance for Loan Losses / Total Loans | | | 1.13 | % | | | 1.09 | % | | | 3.67 | % |
Total Risk Based Capital Ratio (a) | | | 23.58 | % | | | 24.54 | % | | | -3.91 | % |
Tier 1 Risk Based Capital Ratio (a) | | | 22.47 | % | | | 23.39 | % | | | -3.93 | % |
Common Equity Tier 1 Risk Based Capital Ratio (a) | | | 22.47 | % | | | 23.39 | % | | | -3.93 | % |
Leverage Ratio (a) | | | 14.18 | % | | | 13.95 | % | | | 1.65 | % |
| | | | | | | | | | | | |
AVERAGE BALANCES | | | | | | | | | | | | |
Average Assets | | $ | 1,226,733 | | | $ | 1,249,156 | | | | -1.80 | % |
Average Equity | | $ | 188,424 | | | $ | 188,305 | | | | 0.06 | % |
(a) Capital ratios for the most recent period are estimated.
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, | |
| | 2016 | | | 2016 | | | 2016 | | | 2015 | | | 2015 | | | 2015 | | | 2015 | |
Interest income | | $ | 11,131 | | | $ | 10,924 | | | $ | 10,937 | | | $ | 11,036 | | | $ | 11,134 | | | $ | 11,186 | | | $ | 11,163 | |
Interest expense | | | 944 | | | | 925 | | | | 904 | | | | 1,087 | | | | 1,126 | | | | 1,176 | | | | 1,213 | |
Net interest income | | | 10,187 | | | | 9,999 | | | | 10,033 | | | | 9,949 | | | | 10,008 | | | | 10,010 | | | | 9,950 | |
Provision for loan losses | | | 538 | | | | 318 | | | | 368 | | | | 319 | | | | 302 | | | | 221 | | | | 3 | |
Net interest income after provision for loan losses | | | 9,649 | | | | 9,681 | | | | 9,665 | | | | 9,630 | | | | 9,706 | | | | 9,789 | | | | 9,947 | |
Other income | | | 3,884 | | | | 3,906 | | | | 3,690 | | | | 3,999 | | | | 3,961 | | | | 3,962 | | | | 3,556 | |
Net gains on available-for-sale securities | | | 584 | | | | 122 | | | | 383 | | | | 1,776 | | | | 79 | | | | 932 | | | | 74 | |
Loss on prepayment of borrowings | | | 0 | | | | 0 | | | | 0 | | | | 1,663 | | | | 0 | | | | 910 | | | | 0 | |
Other expenses | | | 8,579 | | | | 8,535 | | | | 9,072 | | | | 8,416 | | | | 8,117 | | | | 7,964 | | | | 8,533 | |
Income before income tax provision | | | 5,538 | | | | 5,174 | | | | 4,666 | | | | 5,326 | | | | 5,629 | | | | 5,809 | | | | 5,044 | |
Income tax provision | | | 1,451 | | | | 1,303 | | | | 1,093 | | | | 1,261 | | | | 1,395 | | | | 1,452 | | | | 1,229 | |
Net income | | $ | 4,087 | | | $ | 3,871 | | | $ | 3,573 | | | $ | 4,065 | | | $ | 4,234 | | | $ | 4,357 | | | $ | 3,815 | |
Net income per share – basic | | $ | 0.34 | | | $ | 0.32 | | | $ | 0.29 | | | $ | 0.33 | | | $ | 0.35 | | | $ | 0.36 | | | $ | 0.31 | |
Net income per share – diluted | | $ | 0.34 | | | $ | 0.32 | | | $ | 0.29 | | | $ | 0.33 | | | $ | 0.35 | | | $ | 0.36 | | | $ | 0.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
QUARTERLY CONDENSED, CONSOLIDATED BALANCE SHEET INFORMATION |
(In Thousands) (Unaudited) | | As of: | | | | | | | | | | | | | | | | | | | |
| | Sept. 30, | | | June 30, | | | Dec. 31, | | | Sept. 30, | | | | | | | | | | |
| | 2016 | | | 2016 | | | 2015 | | | 2015 | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash & Due from Banks | | $ | 34,070 | | | $ | 27,436 | | | $ | 36,061 | | | $ | 32,221 | | | | | | | | | | | | | |
Available-for-Sale Securities | | | 409,800 | | | | 417,205 | | | | 420,290 | | | | 461,713 | | | | | | | | | | | | | |
Loans Held for Sale | | | 621 | | | | 381 | | | | 280 | | | | 76 | | | | | | | | | | | | | |
Loans, Net | | | 733,917 | | | | 719,913 | | | | 696,991 | | | | 672,449 | | | | | | | | | | | | | |
Intangible Assets | | | 11,963 | | | | 11,966 | | | | 11,972 | | | | 11,978 | | | | | | | | | | | | | |
Other Assets | | | 54,962 | | | | 54,117 | | | | 57,823 | | | | 54,094 | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 1,245,333 | | | $ | 1,231,018 | | | $ | 1,223,417 | | | $ | 1,232,531 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | $ | 991,880 | | | $ | 967,951 | | | $ | 935,615 | | | $ | 961,112 | | | | | | | | | | | | | |
Repo Sweep Accounts | | | 6,320 | | | | 5,661 | | | | 4,915 | | | | 5,744 | | | | | | | | | | | | | |
Total Deposits and Repo Sweeps | | | 998,200 | | | | 973,612 | | | | 940,530 | | | | 966,856 | | | | | | | | | | | | | |
Borrowed Funds | | | 46,808 | | | | 58,656 | | | | 87,348 | | | | 67,342 | | | | | | | | | | | | | |
Other Liabilities | | | 9,722 | | | | 8,220 | | | | 8,052 | | | | 8,233 | | | | | | | | | | | | | |
TOTAL LIABILITIES | | | 1,054,730 | | | | 1,040,488 | | | | 1,035,930 | | | | 1,042,431 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Shareholders' Equity, Excluding | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated Other Comprehensive Income/ Loss | | | 185,173 | | | | 183,636 | | | | 184,959 | | | | 183,978 | | | | | | | | | | | | | |
Accumulated Other Comprehensive Income/ Loss: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Unrealized Gains/Losses on | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale Securities | | �� | 5,388 | | | | 6,849 | | | | 2,493 | | | | 6,116 | | | | | | | | | | | | | |
Defined Benefit Plans Adjustment, Net | | | 42 | | | | 45 | | | | 35 | | | | 6 | | | | | | | | | | | | | |
TOTAL SHAREHOLDERS' EQUITY | | | 190,603 | | | | 190,530 | | | | 187,487 | | | | 190,100 | | | | | | | | | | | | | |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | | $ | 1,245,333 | | | $ | 1,231,018 | | | $ | 1,223,417 | | | $ | 1,232,531 | | | | | | | | | | | | | |
AVAILABLE-FOR-SALE SECURITIES | | September 30, 2016 | | | June 30, 2016 | | | December 31, 2015 | |
(In Thousands) | | Amortized | | | Fair | | | Amortized | | | Fair | | | Amortized | | | Fair | |
| | Cost | | | Value | | | Cost | | | Value | | | Cost | | | Value | |
Obligations of U.S. Government agencies | | $ | 9,667 | | | $ | 9,747 | | | $ | 9,664 | | | $ | 9,781 | | | $ | 10,663 | | | $ | 10,483 | |
Obligations of states and political subdivisions: | | | | | | | | | | | | | | | | | | | | | | | | |
Tax-exempt | | | 116,797 | | | | 121,283 | | | | 110,702 | | | | 116,056 | | | | 103,414 | | | | 107,757 | |
Taxable | | | 32,764 | | | | 33,672 | | | | 34,015 | | | | 35,132 | | | | 34,317 | | | | 34,597 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential pass-through securities | | | 60,966 | | | | 62,187 | | | | 64,108 | | | | 65,407 | | | | 73,227 | | | | 73,343 | |
Residential collateralized mortgage obligations | | | 164,508 | | | | 165,719 | | | | 175,889 | | | | 177,980 | | | | 193,145 | | | | 191,715 | |
Commercial mortgage-backed securities | | | 16,056 | | | | 16,112 | | | | 11,120 | | | | 11,239 | | | | 0 | | | | 0 | |
Other collateralized debt obligations | | | 0 | | | | 0 | | | | 1 | | | | 1 | | | | 9 | | | | 9 | |
Total debt securities | | | 400,758 | | | | 408,720 | | | | 405,499 | | | | 415,596 | | | | 414,775 | | | | 417,904 | |
Marketable equity securities | | | 752 | | | | 1,080 | | | | 1,171 | | | | 1,609 | | | | 1,680 | | | | 2,386 | |
Total | | $ | 401,510 | | | $ | 409,800 | | | $ | 406,670 | | | $ | 417,205 | | | $ | 416,455 | | | $ | 420,290 | |
Summary of Loans by Type | | | | | | | | | | | | |
(Excludes Loans Held for Sale) | | | | | | | | | | | | |
(In Thousands) | | Sept. 30, | | | June 30, | | | Dec. 31, | | | Sept. 30, | |
| | 2016 | | | 2016 | | | 2015 | | | 2015 | |
Residential mortgage: | | | | | | | | | | | | | | | | |
Residential mortgage loans - first liens | | $ | 325,533 | | | $ | 315,191 | | | $ | 304,783 | | | $ | 298,096 | |
Residential mortgage loans - junior liens | | | 22,794 | | | | 22,159 | | | | 21,146 | | | | 20,601 | |
Home equity lines of credit | | | 38,623 | | | | 39,054 | | | | 39,040 | | | | 38,585 | |
1-4 Family residential construction | | | 23,310 | | | | 22,241 | | | | 21,121 | | | | 23,633 | |
Total residential mortgage | | | 410,260 | | | | 398,645 | | | | 386,090 | | | | 380,915 | |
Commercial: | | | | | | | | | | | | | | | | |
Commercial loans secured by real estate | | | 149,938 | | | | 153,070 | | | | 154,779 | | | | 135,760 | |
Commercial and industrial | | | 86,969 | | | | 82,390 | | | | 75,196 | | | | 72,011 | |
Political subdivisions | | | 38,653 | | | | 41,026 | | | | 40,007 | | | | 40,186 | |
Commercial construction and land | | | 12,809 | | | | 9,193 | | | | 5,122 | | | | 6,852 | |
Loans secured by farmland | | | 6,900 | | | | 6,615 | | | | 7,019 | | | | 7,521 | |
Multi-family (5 or more) residential | | | 8,133 | | | | 8,173 | | | | 9,188 | | | | 9,181 | |
Agricultural loans | | | 4,313 | | | | 4,692 | | | | 4,671 | | | | 4,588 | |
Other commercial loans | | | 11,557 | | | | 11,904 | | | | 12,152 | | | | 12,691 | |
Total commercial | | | 319,272 | | | | 317,063 | | | | 308,134 | | | | 288,790 | |
Consumer | | | 12,806 | | | | 12,134 | | | | 10,656 | | | | 10,160 | |
Total | | | 742,338 | | | | 727,842 | | | | 704,880 | | | | 679,865 | |
Less: allowance for loan losses | | | (8,421 | ) | | | (7,929 | ) | | | (7,889 | ) | | | (7,416 | ) |
Loans, net | | $ | 733,917 | | | $ | 719,913 | | | $ | 696,991 | | | $ | 672,449 | |
Loans Held for Sale | | | | | | | | | | | | |
(In Thousands) | | Sept. 30, | | | June 30, | | | Dec. 31, | | | Sept. 30, | |
| | 2016 | | | 2016 | | | 2015 | | | 2015 | |
Residential mortgage loans originated and serviced - outstanding balance | | $ | 158,466 | | | $ | 156,798 | | | $ | 152,728 | | | $ | 152,351 | |
Less: outstanding balance of loans sold | | | (157,845 | ) | | | (156,417 | ) | | | (152,448 | ) | | | (152,275 | ) |
Loans held for sale, net | | $ | 621 | | | $ | 381 | | | $ | 280 | | | $ | 76 | |
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, | |
| | 2016 | | | 2016 | | | 2016 | | | 2015 | |
Balance, beginning of period | | $ | 7,929 | | | $ | 7,661 | | | $ | 7,889 | | | $ | 7,336 | |
Charge-offs | | | (61 | ) | | | (63 | ) | | | (737 | ) | | | (496 | ) |
Recoveries | | | 15 | | | | 13 | | | | 45 | | | | 50 | |
Net charge-offs | | | (46 | ) | | | (50 | ) | | | (692 | ) | | | (446 | ) |
Provision for loan losses | | | 538 | | | | 318 | | | | 1,224 | | | | 526 | |
Balance, end of period | | $ | 8,421 | | | $ | 7,929 | | | $ | 8,421 | | | $ | 7,416 | |
PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS
AND TROUBLED DEBT RESTRUCTURINGS (TDRs)
(In Thousands)
| | Sept. 30, | | | June 30, | | | Dec 31, | | | Sept. 30, | |
| | 2016 | | | 2016 | | | 2015 | | | 2015 | |
Impaired loans with a valuation allowance | | $ | 3,621 | | | $ | 1,275 | | | $ | 1,933 | | | $ | 1,963 | |
Impaired loans without a valuation allowance | | | 7,514 | | | | 8,055 | | | | 8,041 | | | | 7,812 | |
Total impaired loans | | $ | 11,135 | | | $ | 9,330 | | | $ | 9,974 | | | $ | 9,775 | |
| | | | | | | | | | | | | | | | |
Total loans past due 30-89 days and still accruing | | $ | 4,040 | | | $ | 6,945 | | | $ | 7,057 | | | $ | 4,780 | |
| | | | | | | | | | | | | | | | |
Nonperforming assets: | | | | | | | | | | | | | | | | |
Total nonaccrual loans | | $ | 10,206 | | | $ | 10,504 | | | $ | 11,517 | | | $ | 11,632 | |
Total loans past due 90 days or more and still accruing | | | 7,539 | | | | 4,654 | | | | 3,229 | | | | 2,833 | |
Total nonperforming loans | | | 17,745 | | | | 15,158 | | | | 14,746 | | | | 14,465 | |
Foreclosed assets held for sale (real estate) | | | 2,321 | | | | 2,052 | | | | 1,260 | | | | 1,363 | |
Total nonperforming assets | | $ | 20,066 | | | $ | 17,210 | | | $ | 16,006 | | | $ | 15,828 | |
| | | | | | | | | | | | | | | | |
Loans subject to troubled debt restructurings (TDRs): | | | | | | | | | | | | | | | | |
Performing | | $ | 946 | | | $ | 1,047 | | | $ | 1,186 | | | $ | 1,043 | |
Nonperforming | | | 5,032 | | | | 5,102 | | | | 5,178 | | | | 5,182 | |
Total TDRs | | $ | 5,978 | | | $ | 6,149 | | | $ | 6,364 | | | $ | 6,225 | |
| | | | | | | | | | | | | | | | |
Total nonperforming loans as a % of loans | | | 2.39 | % | | | 2.08 | % | | | 2.09 | % | | | 2.13 | % |
Total nonperforming assets as a % of assets | | | 1.61 | % | | | 1.40 | % | | | 1.31 | % | | | 1.28 | % |
Allowance for loan losses as a % of total loans | | | 1.13 | % | | | 1.09 | % | | | 1.12 | % | | | 1.09 | % |
Allowance for loan losses as a % of nonperforming loans | | | 47.46 | % | | | 52.31 | % | | | 53.50 | % | | | 51.27 | % |
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 | |
| | 9/30/2016 | | | Return/ | | | 6/30/2016 | | | Return/ | | | 9/30/2015 | | | 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 | | $ | 291,847 | | | | 1.98 | % | | $ | 297,608 | | | | 2.02 | % | | $ | 361,481 | | | | 2.02 | % |
Tax-exempt | | | 112,679 | | | | 4.51 | % | | | 108,652 | | | | 4.79 | % | | | 111,735 | | | | 5.14 | % |
Total available-for-sale securities | | | 404,526 | | | | 2.69 | % | | | 406,260 | | | | 2.76 | % | | | 473,216 | | | | 2.75 | % |
Interest-bearing due from banks | | | 17,138 | | | | 0.67 | % | | | 24,250 | | | | 0.60 | % | | | 19,774 | | | | 0.46 | % |
Loans held for sale | | | 556 | | | | 5.01 | % | | | 540 | | | | 5.96 | % | | | 245 | | | | 8.10 | % |
Loans receivable: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 671,408 | | | | 4.95 | % | | | 650,213 | | | | 5.00 | % | | | 610,516 | | | | 5.10 | % |
Tax-exempt | | | 61,608 | | | | 4.50 | % | | | 61,669 | | | | 4.50 | % | | | 63,219 | | | | 4.50 | % |
Total loans receivable | | | 733,016 | | | | 4.91 | % | | | 711,882 | | | | 4.96 | % | | | 673,735 | | | | 5.05 | % |
Total Earning Assets | | | 1,155,236 | | | | 4.07 | % | | | 1,142,932 | | | | 4.09 | % | | | 1,166,970 | | | | 4.04 | % |
Cash | | | 17,523 | | | | | | | | 16,522 | | | | | | | | 16,961 | | | | | |
Unrealized gain/loss on securities | | | 9,654 | | | | | | | | 7,737 | | | | | | | | 7,015 | | | | | |
Allowance for loan losses | | | (8,050 | ) | | | | | | | (7,756 | ) | | | | | | | (7,376 | ) | | | | |
Bank premises and equipment | | | 15,379 | | | | | | | | 15,390 | | | | | | | | 15,808 | | | | | |
Intangible Asset - Core Deposit Intangible | | | 24 | | | | | | | | 25 | | | | | | | | 38 | | | | | |
Intangible Asset – Goodwill | | | 11,942 | | | | | | | | 11,942 | | | | | | | | 11,942 | | | | | |
Other assets | | | 38,225 | | | | | | | | 38,938 | | | | | | | | 38,294 | | | | | |
Total Assets | | $ | 1,239,933 | | | | | | | $ | 1,225,730 | | | | | | | $ | 1,249,652 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest checking | | $ | 200,789 | | | | 0.15 | % | | $ | 196,918 | | | | 0.15 | % | | $ | 197,189 | | | | 0.11 | % |
Money market | | | 205,158 | | | | 0.17 | % | | | 200,896 | | | | 0.17 | % | | | 202,106 | | | | 0.15 | % |
Savings | | | 133,269 | | | | 0.10 | % | | | 132,353 | | | | 0.10 | % | | | 128,939 | | | | 0.10 | % |
Certificates of deposit | | | 123,475 | | | | 0.77 | % | | | 117,825 | | | | 0.75 | % | | | 125,886 | | | | 0.66 | % |
Individual Retirement Accounts | | | 103,259 | | | | 0.42 | % | | | 104,030 | | | | 0.42 | % | | | 109,661 | | | | 0.41 | % |
Other time deposits | | | 1,523 | | | | 0.26 | % | | | 1,140 | | | | 0.00 | % | | | 1,514 | | | | 0.26 | % |
Total interest-bearing deposits | | | 767,473 | | | | 0.28 | % | | | 753,162 | | | | 0.28 | % | | | 765,295 | | | | 0.25 | % |
Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term | | | 18,655 | | | | 0.64 | % | | | 23,225 | | | | 0.71 | % | | | 12,972 | | | | 0.28 | % |
Long-term | | | 38,571 | | | | 3.76 | % | | | 38,649 | | | | 3.77 | % | | | 62,876 | | | | 3.98 | % |
Total borrowed funds | | | 57,226 | | | | 2.75 | % | | | 61,874 | | | | 2.62 | % | | | 75,848 | | | | 3.34 | % |
Total Interest-bearing Liabilities | | | 824,699 | | | | 0.46 | % | | | 815,036 | | | | 0.46 | % | | | 841,143 | | | | 0.53 | % |
Demand deposits | | | 215,880 | | | | | | | | 215,443 | | | | | | | | 212,022 | | | | | |
Other liabilities | | | 9,057 | | | | | | | | 8,304 | | | | | | | | 8,803 | | | | | |
Total Liabilities | | | 1,049,636 | | | | | | | | 1,038,783 | | | | | | | | 1,061,968 | | | | | |
Stockholders' equity, excluding other comprehensive income/loss | | | 183,966 | | | | | | | | 181,882 | | | | | | | | 183,116 | | | | | |
Other comprehensive income/loss | | | 6,331 | | | | | | | | 5,065 | | | | | | | | 4,568 | | | | | |
Total Stockholders' Equity | | | 190,297 | | | | | | | | 186,947 | | | | | | | | 187,684 | | | | | |
Total Liabilities and Stockholders' Equity | | $ | 1,239,933 | | | | | | | $ | 1,225,730 | | | | | | | $ | 1,249,652 | | | | | |
Interest Rate Spread | | | | | | | 3.61 | % | | | | | | | 3.63 | % | | | | | | | 3.51 | % |
Net Interest Income/Earning Assets | | | | | | | 3.74 | % | | | | | | | 3.76 | % | | | | | | | 3.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Deposits (Interest-bearing and Demand) | | $ | 983,353 | | | | | | | $ | 968,605 | | | | | | | $ | 977,317 | | | | | |
(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.
(3) Rates of return on earning assets and costs of funds are presented on an annualized basis.
Analysis of Average Daily Balances and Rates
(Dollars in Thousands)
| | 9 Months | | | | | | 9 Months | | | | |
| | Ended | | | Rate of | | | Ended | | | Rate of | |
| | 9/30/2016 | | | Return/ | | | 9/30/2015 | | | Return/ | |
| | Average | | | Cost of | | | Average | | | Cost of | |
| | Balance | | | Funds % | | | Balance | | | Funds % | |
EARNING ASSETS | | | | | | | | | | | | | | | | |
Available-for-sale securities, at amortized cost: | | | | | | | | | | | | | | | | |
Taxable | | $ | 298,421 | | | | 2.03 | % | | $ | 379,666 | | | | 2.08 | % |
Tax-exempt | | | 108,926 | | | | 4.83 | % | | | 115,255 | | | | 5.27 | % |
Total available-for-sale securities | | | 407,347 | | | | 2.78 | % | | | 494,921 | | | | 2.82 | % |
Interest-bearing due from banks | | | 20,566 | | | | 0.58 | % | | | 22,886 | | | | 0.43 | % |
Loans held for sale | | | 516 | | | | 5.44 | % | | | 160 | | | | 8.36 | % |
Loans receivable: | | | | | | | | | | | | | | | | |
Taxable | | | 654,256 | | | | 4.98 | % | | | 595,170 | | | | 5.24 | % |
Tax-exempt | | | 61,319 | | | | 4.51 | % | | | 51,468 | | | | 4.80 | % |
Total loans receivable | | | 715,575 | | | | 4.94 | % | | | 646,638 | | | | 5.20 | % |
Total Earning Assets | | | 1,144,004 | | | | 4.09 | % | | | 1,164,605 | | | | 4.10 | % |
Cash | | | 16,548 | | | | | | | | 16,723 | | | | | |
Unrealized gain/loss on securities | | | 8,154 | | | | | | | | 9,287 | | | | | |
Allowance for loan losses | | | (7,913 | ) | | | | | | | (7,331 | ) | | | | |
Bank premises and equipment | | | 15,409 | | | | | | | | 16,050 | | | | | |
Intangible Asset - Core Deposit Intangible | | | 26 | | | | | | | | 44 | | | | | |
Intangible Asset – Goodwill | | | 11,942 | | | | | | | | 11,942 | | | | | |
Other assets | | | 38,563 | | | | | | | | 37,836 | | | | | |
Total Assets | | $ | 1,226,733 | | | | | | | $ | 1,249,156 | | | | | |
| | | | | | | | | | | | | | | | |
INTEREST-BEARING LIABILITIES | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | |
Interest checking | | $ | 197,628 | | | | 0.14 | % | | $ | 196,109 | | | | 0.11 | % |
Money market | | | 199,211 | | | | 0.17 | % | | | 197,852 | | | | 0.15 | % |
Savings | | | 131,880 | | | | 0.10 | % | | | 128,561 | | | | 0.10 | % |
Certificates of deposit | | | 118,256 | | | | 0.75 | % | | | 123,523 | | | | 0.68 | % |
Individual Retirement Accounts | | | 104,280 | | | | 0.42 | % | | | 111,729 | | | | 0.41 | % |
Other time deposits | | | 1,157 | | | | 0.12 | % | | | 1,150 | | | | 0.12 | % |
Total interest-bearing deposits | | | 752,412 | | | | 0.28 | % | | | 758,924 | | | | 0.26 | % |
Borrowed funds: | | | | | | | | | | | | | | | | |
Short-term | | | 25,828 | | | | 0.69 | % | | | 9,417 | | | | 0.21 | % |
Long-term | | | 38,648 | | | | 3.77 | % | | | 68,332 | | | | 4.01 | % |
Total borrowed funds | | | 64,476 | | | | 2.53 | % | | | 77,749 | | | | 3.55 | % |
Total Interest-bearing Liabilities | | | 816,888 | | | | 0.45 | % | | | 836,673 | | | | 0.56 | % |
Demand deposits | | | 213,172 | | | | | | | | 215,949 | | | | | |
Other liabilities | | | 8,249 | | | | | | | | 8,229 | | | | | |
Total Liabilities | | | 1,038,309 | | | | | | | | 1,060,851 | | | | | |
Stockholders' equity, excluding other comprehensive income/loss | | | 183,078 | | | | | | | | 182,252 | | | | | |
Other comprehensive income/loss | | | 5,346 | | | | | | | | 6,053 | | | | | |
Total Stockholders' Equity | | | 188,424 | | | | | | | | 188,305 | | | | | |
Total Liabilities and Stockholders' Equity | | $ | 1,226,733 | | | | | | | $ | 1,249,156 | | | | | |
Interest Rate Spread | | | | | | | 3.64 | % | | | | | | | 3.54 | % |
Net Interest Income/Earning Assets | | | | | | | 3.77 | % | | | | | | | 3.69 | % |
| | | | | | | | | | | | | | | | |
Total Deposits (Interest-bearing and Demand) | | $ | 965,584 | | | | | | | $ | 974,873 | | | | | |
(1) 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.
(3) Rates of return on earning assets and costs of funds are presented on an annualized basis.
COMPARISON OF NONINTEREST INCOME
(In Thousands) | | Three Months Ended | | | Nine Months Ended | |
| | Sept. 30, | | | June 30, | | | Sept. 30, | | | Sept. 30, | | | Sept. 30, | |
| | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
Service charges on deposit accounts | | $ | 1,221 | | | $ | 1,164 | | | $ | 1,302 | | | $ | 3,523 | | | $ | 3,629 | |
Service charges and fees | | | 118 | | | | 123 | | | | 137 | | | | 335 | | | | 373 | |
Trust and financial management revenue | | | 1,172 | | | | 1,251 | | | | 1,123 | | | | 3,567 | | | | 3,478 | |
Brokerage revenue | | | 216 | | | | 180 | | | | 215 | | | | 569 | | | | 640 | |
Insurance commissions, fees and premiums | | | 26 | | | | 27 | | | | 24 | | | | 74 | | | | 87 | |
Interchange revenue from debit card transactions | | | 481 | | | | 487 | | | | 482 | | | | 1,431 | | | | 1,456 | |
Net gains from sales of loans | | | 236 | | | | 295 | | | | 243 | | | | 699 | | | | 573 | |
(Decrease) increase in fair value of servicing rights | | | (68 | ) | | | (108 | ) | | | 13 | | | | (247 | ) | | | (137 | ) |
Increase in cash surrender value of life insurance | | | 97 | | | | 93 | | | | 95 | | | | 286 | | | | 294 | |
Other operating income | | | 385 | | | | 394 | | | | 327 | | | | 1,243 | | | | 1,086 | |
Total other operating income, before realized gains on available-for-sale securities, net | | $ | 3,884 | | | $ | 3,906 | | | $ | 3,961 | | | $ | 11,480 | | | $ | 11,479 | |
COMPARISON OF NONINTEREST EXPENSE | | | | | | | | | | | | | | | |
(In Thousands) | | Three Months Ended | | | Nine Months Ended | |
| | Sept. 30, | | | June 30, | | | Sept. 30, | | | Sept. 30, | | | Sept. 30, | |
| | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
Salaries and wages | | $ | 3,901 | | | $ | 3,913 | | | $ | 3,744 | | | $ | 11,701 | | | $ | 10,834 | |
Pensions and other employee benefits | | | 1,060 | | | | 1,002 | | | | 1,016 | | | | 3,499 | | | | 3,336 | |
Occupancy expense, net | | | 601 | | | | 560 | | | | 623 | | | | 1,770 | | | | 1,985 | |
Furniture and equipment expense | | | 435 | | | | 439 | | | | 477 | | | | 1,301 | | | | 1,398 | |
FDIC Assessments | | | 151 | | | | 155 | | | | 155 | | | | 448 | | | | 454 | |
Pennsylvania shares tax | | | 287 | | | | 323 | | | | 311 | | | | 932 | | | | 946 | |
Professional fees | | | 245 | | | | 282 | | | | 141 | | | | 816 | | | | 437 | |
Automated teller machine and interchange expense | | | 291 | | | | 267 | | | | 234 | | | | 807 | | | | 735 | |
Software subscriptions | | | 237 | | | | 251 | | | | 209 | | | | 729 | | | | 617 | |
Other operating expense | | | 1,371 | | | | 1,343 | | | | 1,207 | | | | 4,183 | | | | 3,872 | |
Total noninterest expense, before loss on prepayment of borrowings | | | 8,579 | | | | 8,535 | | | | 8,117 | | | | 26,186 | | | | 24,614 | |
Loss on prepayment of borrowings | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 910 | |
Total noninterest expense | | $ | 8,579 | | | $ | 8,535 | | | $ | 8,117 | | | $ | 26,186 | | | $ | 25,524 | |