Exhibit 99.1

October 31, 2016

Earnings Report

September 30, 2016

Dear Shareholders:

We are pleased to announce continued growth for your company.  Year-to-date net income was $6.3 million for the period ending September 30, 2016 compared to $5.2 million for the period ending September 30, 2015, reflecting an increase of 21.4%.  Year-to-date diluted earnings per share was $2.10 for the period ending September 30, 2016 compared to $1.85 for the same period last year, a 13.5% increase over the same period of 2015.  Total assets were $991.1 million as of September 30, 2016 compared to $933.5 million as of September 30, 2015, reflecting growth of 6.2%.

The increase in total assets of $57.6 million from prior year reflects growth from our existing branches.  The components of the change include an increase in net loans of $46.2 million, an increase in investment securities of $17.0 million, an increase in total deposits of $23.2 million, and an increase in other borrowed funds of $20.6 million.

The increase in year-to-date net income of $1.1 million from prior year was driven by an increase in net interest income after provision of $3.1 million, offset by an increase in other expenses of $2.1 million.  The rise in net interest income was due to increased loans and securities associated with the growth in those asset classes, as well as improving asset quality.  The rise in other expenses was due to, among other things, an increase in compensation expense associated with the increase in employees year-over-year and an increase in professional consulting expenses.

We are pleased with the results of the first nine months of 2016 but recognize the banking industry continues to face challenges, including heightened competition and enhanced supervisory oversight.  Increased competition is putting pressure on margins while banking regulators are becoming increasingly concerned about growth, capital levels, and cyber security, among other things.  This cumulative environment exerts downward pressure on revenues and upward pressure on costs.  In response to these challenges, we will be pursuing opportunities for profitable growth and improved efficiency to accomplish what is in the long term best interest of our shareholders, customers, and employees.

Thank you for your continued support and we look forward to the remainder of the year.

UNAUDITED

CONSOLIDATED BALANCE SHEET

(in thousands)

CONSOLIDATED INCOME STATEMENT

(in thousands)