EXHIBIT 99.3
PEOPLES SERVICE COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
June 30, 2014 and 2013
| 2014 | 2013 | |||||||
ASSETS | ||||||||
| Cash and cash equivalents, including | ||||||||
| interest-bearing accounts of $792,998 in 2014 | ||||||||
| and $8,658,160 in 2013 | $ | 5,602,552 | $ | 13,166,816 | ||||
| Interest-bearing time deposits | 20,813,000 | 20,108,146 | ||||||
| Securities available-for-sale | 31,871,781 | 32,135,901 | ||||||
| Federal Home Loan Bank stock, at cost | 927,300 | 993,900 | ||||||
| Loans, net of allowance for loan losses of | ||||||||
| $3,332,836 in 2014 and $3,668,740 in 2013 | 193,096,615 | 191,072,995 | ||||||
| Accrued interest receivable | 611,352 | 873,413 | ||||||
| Foreclosed and repossessed assets | 1,478,535 | 2,358,226 | ||||||
| Property and equipment, net | 10,848,172 | 10,950,438 | ||||||
| Deferred income taxes, net | 431,373 | 768,593 | ||||||
| Other assets | 154,428 | 220,825 | ||||||
| Total assets | $ | 265,835,108 | $ | 272,649,253 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Customer deposits | $ | 220,176,791 | $ | 226,752,640 | ||||
| Borrowings | 17,920,963 | 18,745,141 | ||||||
| Subordinated debentures issued to Capital Trust | 6,495,000 | 6,495,000 | ||||||
| Income taxes payable | 61,480 | 352,873 | ||||||
| Other liabilities | 557,420 | 767,778 | ||||||
| Total liabilities | 245,211,654 | 253,113,432 | ||||||
| Equity: | ||||||||
| Peoples Service Company's stockholder's equity: | ||||||||
| Common stock, $.01 par value; 3,000,000 shares | ||||||||
| authorized; 808,790 shares issued and outstanding | 8,088 | 8,088 | ||||||
| Additional paid-in-capital | 600,384 | 600,384 | ||||||
| Retained earnings | 15,218,362 | 14,525,411 | ||||||
| Accumulated other comprehensive income | 66,009 | (187,355 | ) | |||||
| Total Peoples Service Company's stockholder's equity | 15,892,843 | 14,946,528 | ||||||
| Noncontrolling interest | 4,730,611 | 4,589,293 | ||||||
| Total equity | 20,623,454 | 19,535,821 | ||||||
| Total liabilities and stockholders' equity | $ | 265,835,108 | $ | 272,649,253 | ||||
PEOPLES SERVICE COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Six Months Ended June 30, 2014 and 2013
| 2014 | 2013 | |||||||
| Interest income: | ||||||||
| Loans | $ | 4,931,849 | $ | 5,545,733 | ||||
| Securities | 283,188 | 152,567 | ||||||
| Other | 92,572 | 62,763 | ||||||
| Total interest income | 5,307,609 | 5,761,063 | ||||||
| Interest expense: | ||||||||
| Customer deposits | 525,593 | 748,151 | ||||||
| Subordinated debentures issued to Capital Trust | 66,521 | 68,277 | ||||||
| Federal funds purchased | 10 | 20 | ||||||
| Borrowings | 342,016 | 353,116 | ||||||
| Total interest expense | 934,140 | 1,169,564 | ||||||
| Net interest income | 4,373,469 | 4,591,499 | ||||||
| Provision for loan losses | - | - | ||||||
| Net interest income after provision for loan losses | 4,373,469 | 4,591,499 | ||||||
| Noninterest income: | ||||||||
| Service charges on deposit accounts | 220,123 | 231,932 | ||||||
| Other service charges and fees | 405,602 | 435,874 | ||||||
| Other income | 14,750 | 4,070 | ||||||
| Total noninterest income | 640,475 | 671,876 | ||||||
| Noninterest expense: | ||||||||
| Compensation and employee benefits | 2,470,368 | 2,485,986 | ||||||
| Occupancy and equipment | 729,946 | 725,061 | ||||||
| Telephone | 85,968 | 95,714 | ||||||
| Deposit insurance premiums | 97,466 | �� | 105,251 | |||||
| Foreclosure expenses | 33,620 | 52,615 | ||||||
| Data processing | 121,215 | 108,386 | ||||||
| Professional Fees (including $420,885 of Transaction Expenses in 2014) | 490,030 | 57,260 | ||||||
| Advertising | 54,412 | 80,857 | ||||||
| Loss on available-for-sale securities | 162,995 | - | ||||||
| (Gain) loss on property, equipment and foreclosed assets | (86,692 | ) | 114,509 | |||||
| Other | 276,287 | 284,704 | ||||||
| Total noninterest expense | 4,435,615 | 4,110,343 | ||||||
| Income (loss) before taxes | 578,329 | 1,153,032 | ||||||
| Income tax (benefit) expense | 212,051 | 423,755 | ||||||
| Net income (loss) | 366,278 | 729,277 | ||||||
| Less: Net income (loss) attributable to the noncontrolling interest | 82,558 | 155,301 | ||||||
| Net income (loss) attibutable to Peoples Service Company | $ | 283,720 | $ | 573,976 | ||||
2
PEOPLES SERVICE COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Six Months Ended June 30, 2014
| Peoples Service Company Stockholders' Equity | ||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||
| Accumulated | Peoples Service | |||||||||||||||||||||||||||||||
| Additional | Other | Company | ||||||||||||||||||||||||||||||
| Common Stock | Paid-in | Retained | Comprehensive | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||||
| Shares | Amount | Capital | Earnings | Income (Loss) | Equity | Interest | Equity | |||||||||||||||||||||||||
| Balances at December 31, 2012 | 808,790 | $ | 8,088 | $ | 600,384 | $ | 13,951,434 | $ | 96,192 | $ | 14,656,098 | $ | 4,593,466 | $ | 19,249,564 | |||||||||||||||||
| Net loss | - | - | - | 983,208 | - | 983,208 | 269,940 | 1,253,148 | ||||||||||||||||||||||||
| Change in net unrealized gain (loss) on | ||||||||||||||||||||||||||||||||
| securities available-for-sale, net | ||||||||||||||||||||||||||||||||
| of taxes of $229,616 | - | - | - | - | (314,257 | ) | (314,257 | ) | (76,712 | ) | (390,969 | ) | ||||||||||||||||||||
| Dividends paid | - | - | - | - | - | - | (184,440 | ) | (184,440 | ) | ||||||||||||||||||||||
| Balances at December 31, 2013 | 808,790 | 8,088 | 600,384 | 14,934,642 | (218,065 | ) | 15,325,049 | 4,602,254 | 19,927,303 | |||||||||||||||||||||||
| Net Income | - | - | - | 283,720 | - | 283,720 | 82,558 | 366,278 | ||||||||||||||||||||||||
| Change in net unrealized gain (loss) on | ||||||||||||||||||||||||||||||||
| securities available-for-sale, net | ||||||||||||||||||||||||||||||||
| of taxes of $(207,563) | - | - | - | - | 284,074 | 284,074 | 69,345 | 353,419 | ||||||||||||||||||||||||
| Dividends paid | - | - | - | - | - | - | (23,546 | ) | (23,546 | ) | ||||||||||||||||||||||
| Balances at June 30, 2014 | 808,790 | $ | 8,088 | $ | 600,384 | $ | 15,218,362 | $ | 66,009 | $ | 15,892,843 | $ | 4,730,611 | $ | 20,623,454 | |||||||||||||||||
3
PEOPLES SERVICE COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Six Months Ended June 30, 2014 and 2013
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income including income attributable | ||||||||
| to noncontrolling interest | $ | 366,278 | $ | 729,277 | ||||
| Adjustments to reconcile net income | ||||||||
| to net cash provided by operating activities: | ||||||||
| Depreciation | 257,710 | 272,662 | ||||||
| Premiums and discounts on securities | 371,507 | 403,367 | ||||||
| Loss on foreclosed and repossessed assets | (92,891 | ) | 104,913 | |||||
| Loss on available-for-sale securities | 162,995 | - | ||||||
| Net change in operating accounts: | ||||||||
| Accrued interest receivable | 215,021 | (39,873 | ) | |||||
| Other assets | 153,780 | 1,234,258 | ||||||
| Other liabilities | 147,876 | 218,816 | ||||||
| Deferred income taxes | - | - | ||||||
| Income taxes payable | (393,694 | ) | 253,207 | |||||
| Net cash from operating activities | 1,188,582 | 3,176,627 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of securities available-for-sale | (32,234,120 | ) | (16,842,100 | ) | ||||
| Proceeds from maturities and sales of securities available-for-sale | 33,389,927 | 315,000 | ||||||
| Proceeds from maturities and sales of securities held-to-maturity | - | - | ||||||
| Redemption of Federal Home Loan Bank stock | (900 | ) | 15,400 | |||||
| Net change in loans | (4,234,714 | ) | 15,091,510 | |||||
| Purchases of property and equipment | (155,358 | ) | (96,762 | ) | ||||
| Proceeds from sale of property and equipment | - | - | ||||||
| Proceeds from sale of foreclosed and repossessed assets | 1,292,891 | 1,193,224 | ||||||
| Net cash from investing activities | $ | (1,942,274 | ) | $ | (323,728 | ) | ||
4
PEOPLES SERVICE COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Six Months Ended June 30, 2014 and 2013
| 2014 | 2013 | |||||||
| Cash flows from financing activities: | ||||||||
| Net change in demand deposits, savings | ||||||||
| accounts, and certificates of deposit | $ | (7,656,616 | ) | $ | (586,590 | ) | ||
| Proceeds from borrowed funds | 17,250,000 | 491,000 | ||||||
| Repayments of borrowed funds | (17,250,000 | ) | (300,412 | ) | ||||
| Cash dividends paid | (23,545 | ) | (90,259 | ) | ||||
| Net cash used in financing activities | (7,680,161 | ) | (486,261 | ) | ||||
| Net increase in cash and cash equivalents | (8,433,853 | ) | 2,366,638 | |||||
| Cash and cash equivalents - beginning of year | 34,849,405 | 30,908,324 | ||||||
| Cash and cash equivalents - end of year | $ | 26,415,552 | $ | 33,274,962 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid during the year for: | ||||||||
| Interest | $ | 1,047,827 | $ | 1,308,744 | ||||
| Income taxes | 605,745 | 170,548 | ||||||
| Non-cash Investing and Financing Items: | ||||||||
| Loans charged-off to reserve | 322,756 | 389,454 | ||||||
| Loans transferred to foreclosed and repossessed assets | 176,000 | 93,247 | ||||||
5