ARROW FINANCIAL CORP - FORM 8-K - EX-99 - January 28, 2021

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250 Glen Street
Glens Falls, NY 12801
NASDAQ® Symbol: "AROW"
Website: arrowfinancial.com

Media Contact: Dori McDannold
Tel: (518) 415-4313


Arrow Reports Annual Net Income of $40.8 million and Continued COVID-19 Response

•Net income for 2020 reached a record high of $40.8 million, up 8.9% year-over-year.
•Diluted Earnings Per Share (EPS) grew to $2.64 for the year.
•Profitability ratios remained solid in 2020, as return on average equity (ROE) was 12.77% and return on average assets (ROA) was 1.17%.
•Record highs were also achieved at year-end for total assets and total equity.
•Significant support provided throughout the pandemic for employees, customers and the community.

GLENS FALLS, N.Y. (January 28, 2021) – Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three- and 12-month periods ended December 31, 2020. For the fourth quarter of 2020, net income was $12.5 million, an increase of $2.8 million, or 28.3%, from the fourth quarter of 2019. For the year ended December 31, 2020, net income was a record $40.8 million, up 8.9% over net income of $37.5 million for 2019. Diluted EPS was $0.81 for the fourth quarter, up 28.6% from $0.63 from the comparable 2019 quarter, and $2.64 for 2020, up 8.5% from $2.43 in 2019.

Profitability ratios remained solid in 2020, as return on average equity (ROE) and return on average assets (ROA) were 12.77% and 1.17%, respectively, as compared to 13.17% and 1.24%, respectively, for 2019. ROE was 14.98% for the fourth quarter, up from 13.05% from the fourth quarter of 2019. ROA was 1.34% for the fourth quarter, which represents an increase from 1.24% for the comparable 2019 quarter.

“Arrow delivered a strong performance in 2020 amid the challenges of a global pandemic, ending the year with record earnings, steady growth, sustained profitability and credit quality," said Arrow President and CEO Thomas J. Murphy. “As we reflect on the year, we are proud to have provided temporary financial assistance, stimulus program support, Paycheck Protection Program loans and charitable contributions in our communities. I thank our team for their continued focus on safety and customer needs during these unprecedented times."

In 2020, Arrow opened a 12th Saratoga National Bank Branch, as well as a Capital Region Business Development Office in Latham, New York. Additionally, Glens Falls National Bank consolidated Branches in Queensbury and Greenwich into nearby locations.

COVID-19 Response: As part of our continued focus on health and safety, Arrow again limited access at its facilities to appointment-only in early 2021. Drive-ins and ATMs are currently open, and we continue to promote digital banking alternatives. Inside our facilities, safety measures continue to be followed, including required face coverings, social distancing and personal protective equipment such as shields and hand sanitizing stations, along with frequent cleanings.

Requests in our banks for financial hardship assistance were reduced from early pandemic levels. Loans being deferred as a result of the COVID-19 pandemic were $15.3 million as of December 31, 2020. We also worked closely with small business borrowers from the first round of Small Business Administration Paycheck Protection Program (PPP) loans on the forgiveness process. Currently, we are helping customers obtain funding through an additional round of PPP support. As of year-end, we had assisted more than 1,400 small businesses, with more than $142.7 million in aggregate PPP loans.

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We continue to monitor the impact of the pandemic on our business and results of operations. Remote work is encouraged whenever feasible for our employees. In addition, work-related travel remains paused and in-person meetings have been minimized. We remain committed to delivering essential financial services to our communities.

The following expands on fourth quarter and 2020 results:

Loan Growth: At December 31, 2020, total loan balances reached $2.6 billion, up $209 million, or 8.8%, from the prior-year level. The consumer loan portfolio grew by $48.6 million, or 6.0%, over the balance at December 31, 2019, primarily as a result of continued strength in the indirect automobile lending program. The residential real estate loan portfolio increased $9.2 million, or 1.0%. The increase in the real estate loan portfolio is net of approximately $83.9 million of loans sold in 2020. Commercial loans, including commercial real estate, increased $151.1 million, or 22.9%, over the balances at December 31, 2019. The increase in commercial loans includes $114.6 million in remaining PPP loans.

Deposit Growth: At December 31, 2020, total deposit balances reached $3.2 billion, up by $618.7 million, or 23.6%, from the prior-year level. Noninterest-bearing deposits grew by $216.4 million, or 44.6%, during 2020, and represented 21.7% of total deposits at year-end as compared to the prior-year level of 18.5%. At December 31, 2020, total time deposits decreased $117.7 million from the prior-year level, including $80.6 million in brokered time deposits.

Net Interest Income: Net interest income for the year ending December 31, 2020 was $99.2 million, an increase of $11.2 million, or 12.7%, from the prior year. Loan growth generated $100.5 million in interest and fees on loans, an increase of 5.3% from the $95.5 million in interest and fees on loans for the year ending December 31, 2019. Interest expense for the year ending December 31, 2020 was $12.7 million. This is a decrease of $9.0 million, or 41.5%, from the $21.7 million in expense for the year ending December 31, 2019. The net interest margin was 2.99% for the year ending December 31, 2020, as compared to 3.05% for the year ended December 31, 2019. In the fourth quarter of 2020, the net interest margin was 2.96%, as compared to 3.06% for the fourth quarter of 2019. The decrease in net interest margin from the prior year was due to a variety of factors, including lower interest rates and increased cash balances.

Noninterest Income: Noninterest income was $32.7 million for the year ending December 31, 2020, an increase of 14.4% as compared to $28.6 million for the year ending December 31, 2019. Favorable market conditions in 2020 contributed to a $3.3 million increase in the gain on the sale of loans. Income generated from fiduciary activities as well as fees for other services from customers were flat compared to the prior year. Insurance revenue decreased by $306 thousand from the prior year. Noninterest income represented 24.8% of total revenues in 2020 as compared to 24.5% for the year ending December 31, 2019. Other operating income increased in 2020 as compared to 2019 as a result of several factors, including gain on sale of fixed assets and other real estate owned, as well as increased income related to interest rate swap agreements and bank owned life insurance.

Noninterest Expense: Noninterest expense for the year ending December 31, 2020 increased by $3.2 million, or 4.8%, to $70.7 million compared to $67.5 million in 2019. The largest component of noninterest expense is salaries and benefits paid to our employees, which totaled $42.1 million in 2020. Noninterest expense for the three-month period ended December 31, 2020 increased $1.1 million, or 6.4%, as compared to the fourth quarter of 2019.

Provision for Income Taxes: The provision for income taxes for 2020 was $11.0 million compared to $9.6 million for 2019. The effective income tax rates for 2020 and 2019 were 21.3% and 20.4%, respectively.

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Asset Quality: Asset quality remained strong in 2020, as evidenced by low levels of nonperforming assets and charge-offs. Net loan losses for the fourth quarter of 2020, expressed as an annualized percentage of average loans outstanding, were 0.07%, an increase from 0.06% for the fourth quarter of 2019. Net loan losses for the full year 2020 were 0.05% of average loans outstanding, consistent with the 2019 ratio. Nonperforming assets of $6.6 million at December 31, 2020, represented 0.18% of period-end assets, consistent with December 31, 2019.

Arrow's allowance for loan losses was $29.2 million at December 31, 2020, which represented 1.13% of loans outstanding, an increase from 0.89% at year-end 2019. Although credit quality remains strong, the increase in the allowance reflects the uncertainty related to the COVID-19 pandemic. When expressed as a percentage of nonperforming loans, the allowance for loan loss coverage ratio was 456.3% at year-end 2020. Arrow adopted the Current Expected Credit Losses (CECL) accounting standard as of January 1, 2021.

Liquidity: At December 31, 2020, Arrow’s liquidity position was strong. Interest-bearing cash balances at December 31, 2020 were $338.9 million. Arrow continues to be well-prepared to address any unexpected volatility, which may affect cash flow and deposit balances. At December 31, 2020, contingent collateralized lines of credit were established and available through the Federal Home Loan Bank of New York and Federal Reserve Bank, totaling $1.5 billion. Arrow also has additional liquidity options currently available, including unsecured lines of credit such as Fed Funds and brokered markets.

Capital: Total shareholders’ equity grew to a record of $334.4 million at period-end, an increase of $32.7 million, or 10.8%, above the year-end 2019 balance. Arrow's regulatory capital ratios remained strong in 2020. At December 31, 2020, Arrow's Common Equity Tier 1 Capital Ratio was 13.39% and Total Risk-Based Capital Ratio was 15.48%. The capital ratios of Arrow and both its subsidiary banks continued to significantly exceed the “well capitalized” regulatory standards.

Cash and Stock Dividends: On December 15, 2020, Arrow distributed a cash dividend of $0.26 per share. The cash dividend was 3% higher than the cash dividend paid by Arrow in the fourth quarter of 2019 when adjusted for the 3% stock dividend distributed on September 25, 2020.

Industry Recognition: Both of Arrow's banking subsidiaries, Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company, continue to hold BauerFinancial, Inc. 5-Star Superior Bank ratings.

——————

About Arrow: Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisers, Inc. and Upstate Agency, LLC.

Non-GAAP Financial Measures Reconciliation: In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. Certain non-GAAP financial measures include: tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income, tax-equivalent and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Non-
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GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Selected Quarterly Information."

Safe Harbor Statement: The information contained in this news release may contain statements that are not historical in nature but rather are based on management’s beliefs, assumptions, expectations, estimates and projections about the future. These statements may be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication. The Company undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and other filings with the Securities and Exchange Commission.


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ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts - Unaudited)

 Three Months EndedTwelve Months Ended
 December 31,December 31,
 2020201920202019
INTEREST AND DIVIDEND INCOME    
Interest and Fees on Loans$25,835 $24,924 $100,492 $95,467 
Interest on Deposits at Banks92 150 321 722 
Interest and Dividends on Investment Securities:
Fully Taxable1,510 2,212 7,131 8,883 
Exempt from Federal Taxes935 1,081 3,952 4,687 
Total Interest and Dividend Income28,372 28,367 111,896 109,759 
INTEREST EXPENSE    
Interest-Bearing Checking Accounts231 550 1,292 1,985 
Savings Deposits640 2,473 5,090 8,399 
Time Deposits over $250,000202 570 1,465 1,932 
Other Time Deposits422 1,125 2,782 4,224 
Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase		5 25 60 100 
Federal Home Loan Bank Advances198 439 1,063 3,952 
Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts		172 239 746 1,019 
Interest on Financing Leases48 28 196 99 
Total Interest Expense1,918 5,449 12,694 21,710 
NET INTEREST INCOME26,454 22,918 99,202 88,049 
Provision for Loan Losses1,236 634 9,319 2,079 
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES		25,218 22,284 89,883 85,970 
NONINTEREST INCOME    
Income From Fiduciary Activities2,277 2,238 8,890 8,809 
Fees for Other Services to Customers2,655 2,606 10,003 10,176 
Insurance Commissions1,799 1,592 6,876 7,182 
Net Gain (Loss) on Securities88 67 (464)289 
Net Gain on Sales of Loans1,696 121 3,889 622 
Other Operating Income588 457 3,464 1,477 
Total Noninterest Income9,103 7,081 32,658 28,555 
NONINTEREST EXPENSE    
Salaries and Employee Benefits11,058 9,341 42,061 38,402 
Occupancy Expenses, Net1,393 1,384 5,614 5,407 
Technology and Equipment Expense3,169 3,365 12,976 13,054 
FDIC Assessments293 213 1,063 157 
Other Operating Expense2,279 2,796 8,964 10,430 
Total Noninterest Expense18,192 17,099 70,678 67,450 
INCOME BEFORE PROVISION FOR INCOME TAXES16,129 12,266 51,863 47,075 
Provision for Income Taxes3,634 2,526 11,036 9,600 
NET INCOME$12,495 $9,740 $40,827 $37,475 
Average Shares Outstanding1:
    
Basic15,499 15,427 15,465 15,388 
Diluted15,515 15,476 15,479 15,433 
Per Common Share:    
Basic Earnings$0.81 $0.63 $2.64 $2.44 
Diluted Earnings0.81 0.63 2.64 2.43 
1 Share and per share data have been restated for the September 25, 2020, 3% stock dividend.

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ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts - Unaudited)
 December 31, 2020December 31, 2019
ASSETS  
Cash and Due From Banks$42,116 $47,035 
Interest-Bearing Deposits at Banks338,875 23,186 
Investment Securities:
Available-for-Sale365,287 357,334 
Held-to-Maturity (Approximate Fair Value of $226,576 at
  December 31, 2020, and $249,618 at December 31, 2019)
218,405 245,065 
Equity Securities1,636 2,063 
Other Investments5,349 10,317 
Loans2,595,030 2,386,120 
Allowance for Loan Losses(29,232)(21,187)
Net Loans2,565,798 2,364,933 
Premises and Equipment, Net42,612 40,629 
Goodwill21,873 21,873 
Other Intangible Assets, Net1,950 1,661 
Other Assets84,735 70,179 
Total Assets$3,688,636 $3,184,275 
LIABILITIES
Noninterest-Bearing Deposits$701,341 $484,944 
Interest-Bearing Checking Accounts832,434 689,221 
Savings Deposits1,423,358 1,046,568 
Time Deposits over $250,000123,622 123,968 
Other Time Deposits153,971 271,353 
Total Deposits3,234,726 2,616,054 
Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase		17,486 51,099 
Federal Home Loan Bank Overnight Advances— 130,000 
Federal Home Loan Bank Term Advances45,000 30,000 
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts20,000 20,000 
Finance Leases5,217 5,254 
Other Liabilities31,815 30,140 
Total Liabilities3,354,244 2,882,547 
STOCKHOLDERS’ EQUITY
Preferred Stock, $1 Par Value, 1,000,000 Shares Authorized
— — 
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (20,194,474 Shares Issued at December 31, 2020, and 19,606,449 Shares Issued at December 31, 2019)
20,194 19,606 
Additional Paid-in Capital353,662 335,355 
Retained Earnings 41,899 33,218 
Accumulated Other Comprehensive Loss(816)(6,357)
Treasury Stock, at Cost (4,678,736 Shares at December 31, 2020, and 4,608,258 Shares at December 31, 2019)
(80,547)(80,094)
Total Stockholders’ Equity334,392 301,728 
Total Liabilities and Stockholders’ Equity$3,688,636 $3,184,275 
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Arrow Financial Corporation
Selected Quarterly Information
(Dollars In Thousands, Except Per Share Amounts - Unaudited)
Quarter Ended12/31/20209/30/20206/30/20203/31/202012/31/2019
Net Income$12,495 $11,046 $9,159 $8,127 $9,740 
Transactions Recorded in Net Income (Net of Tax):     
Net Gain (Loss) on Securities66 (53)(80)(279)50 
Share and Per Share Data:1
     
Period End Shares Outstanding15,516 15,489 15,461 15,432 15,448 
Basic Average Shares Outstanding15,499 15,472 15,441 15,446 15,427 
Diluted Average Shares Outstanding15,515 15,481 15,448 15,476 15,476 
Basic Earnings Per Share$0.81 $0.71 $0.59 $0.53 $0.63 
Diluted Earnings Per Share0.81 0.71 0.59 0.53 0.63 
Cash Dividend Per Share0.260 0.252 0.252 0.252 0.252 
Selected Quarterly Average Balances:     
  Interest-Bearing Deposits at Banks$349,430 $242,928 $155,931 $32,787 $28,880 
  Investment Securities590,151 592,457 607,094 603,748 582,982 
  Loans2,610,834 2,582,253 2,518,198 2,394,346 2,358,110 
  Deposits3,256,238 3,082,499 2,952,432 2,670,009 2,607,421 
  Other Borrowed Funds95,047 136,117 129,383 170,987 177,877 
  Shareholders’ Equity331,899 324,269 316,380 306,527 296,124 
  Total Assets3,721,954 3,583,322 3,437,155 3,180,857 3,113,114 
Return on Average Assets, annualized1.34 %1.23 %1.07 %1.03 %1.24 %
Return on Average Equity, annualized14.98 %13.55 %11.64 %10.66 %13.05 %
Return on Average Tangible Equity, annualized 2
16.13 %14.61 %12.58 %11.55 %14.18 %
Average Earning Assets3,550,415 3,417,638 3,281,223 3,030,881 2,969,972 
Average Paying Liabilities2,674,795 2,545,435 2,457,690 2,362,515 2,293,804 
Interest Income28,372 27,296 28,002 28,226 28,367 
Tax-Equivalent Adjustment 3
251 284 281 288 321 
Interest Income, Tax-Equivalent 3
28,623 27,580 28,283 28,514 28,688 
Interest Expense1,918 2,396 3,160 5,220 5,449 
Net Interest Income26,454 24,900 24,842 23,006 22,918 
Net Interest Income, Tax-Equivalent 3
26,705 25,184 25,123 23,294 23,239 
Net Interest Margin, annualized2.96 %2.90 %3.05 %3.05 %3.06 %
Net Interest Margin, Tax-Equivalent, annualized 3
2.99 %2.93 %3.08 %3.09 %3.10 %
Efficiency Ratio Calculation: 4
     
Noninterest Expense$18,192 $17,487 $17,245 $17,754 $17,099 
Less: Intangible Asset Amortization56 56 5758 60 
Net Noninterest Expense$18,136 $17,431 $17,188 $17,696 $17,039 
Net Interest Income, Tax-Equivalent$26,705 $25,184 $25,123 $23,294 $23,239 
Noninterest Income9,103 8,697 7,164 7,694 7,081 
Less: Net Gain (Loss) on Securities88 (72)(106)(374)67 
Net Gross Income$35,720 $33,953 $32,393 $31,362 $30,253 
Efficiency Ratio50.77 %51.34 %53.06 %56.42 %56.32 %
Period-End Capital Information:
     
Total Stockholders’ Equity (i.e. Book Value)$334,392 $325,660 $317,687 $309,398 $301,728 
Book Value per Share 1
21.55 21.02 20.55 20.05 19.53 
Goodwill and Other Intangible Assets, net23,823 23,662 23,535 23,513 23,534 
Tangible Book Value per Share 1,2
20.02 19.50 19.03 18.53 18.01 
Capital Ratios:5
     
Tier 1 Leverage Ratio9.07 %9.17 %9.32 %9.87 %9.98 %
Common Equity Tier 1 Capital Ratio
13.39 %13.20 %13.07 %12.84 %12.94 %
Tier 1 Risk-Based Capital Ratio14.24 %14.06 %13.94 %13.72 %13.83 %
Total Risk-Based Capital Ratio15.48 %15.28 %15.10 %14.76 %14.78 %
Assets Under Trust Administration & Investment Mgmt$1,659,029 $1,537,128 $1,502,866 $1,342,531 $1,543,653 
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Arrow Financial Corporation
Selected Quarterly Information - Continued
(Dollars In Thousands, Except Per Share Amounts - Unaudited)
Footnotes:
1.
Share and per share data have been restated for the September 25, 2020, 3% stock dividend.

2.Non-GAAP Financial Measure Reconciliation: Tangible Book Value, Tangible Equity, and Return on Tangible Equity exclude goodwill and other intangible assets, net from total equity.  These are non-GAAP financial measures which we believe provide investors with information that is useful in understanding our financial performance.
12/31/20209/30/20206/30/20203/31/202012/31/2019
Total Stockholders' Equity (GAAP)$334,392 $325,660 $317,687 $309,398 $301,728 
Less: Goodwill and Other Intangible assets, net23,823 23,662 23,535 23,513 23,534 
Tangible Equity (Non-GAAP)$310,569 $301,998 $294,152 $285,885 $278,194 
Period End Shares Outstanding15,516 15,489 15,461 15,432 15,448 
Tangible Book Value per Share (Non-GAAP)$20.02 $19.50 $19.03 $18.53 $18.01 
Net Income12,495 11,046 9,159 8,127 9,740 
Return on Tangible Equity (Net Income/Tangible Equity - Annualized)16.13 %14.61 %12.58 %11.55 %14.18 %
3.Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance.
12/31/20209/30/20206/30/20203/31/202012/31/2019
Interest Income (GAAP)$28,372 $27,296 $28,002 $28,226 $28,367 
Add: Tax Equivalent Adjustment (Non-GAAP)251 284 281 288 321 
Interest Income - Tax Equivalent (Non-GAAP)$28,623 $27,580 $28,283 $28,514 $28,688 
Net Interest Income (GAAP)$26,454 $24,900 $24,842 $23,006 $22,918 
Add: Tax-Equivalent adjustment (Non-GAAP)251 284 281 288 321 
Net Interest Income - Tax Equivalent (Non-GAAP)$26,705 $25,184 $25,123 $23,294 $23,239 
Average Earning Assets3,550,415 3,417,638 3,281,223 3,030,881 2,969,972 
Net Interest Margin (Non-GAAP)*2.99 %2.93 %3.08 %3.09 %3.10 %
4.Non-GAAP Financial Measure Reconciliation: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. We believe the efficiency ratio provides investors with information that is useful in understanding our financial performance. We define our efficiency ratio as the ratio of our noninterest expense to our net gross income (which equals our tax-equivalent net interest income plus noninterest income, as adjusted).
5.
For the current quarter, all of the regulatory capital ratios in the table above, as well as the Total Risk-Weighted Assets and Common Equity Tier 1 Capital amounts listed in the table below, are estimates based on, and calculated in accordance with bank regulatory capital rules. All prior quarters reflect actual results. The December 31, 2020 CET1 ratio listed in the tables (i.e., 13.39%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).
12/31/20209/30/20206/30/20203/31/202012/31/2019
Total Risk Weighted Assets2,357,094 2,321,637 2,283,430 2,275,902 2,237,127 
Common Equity Tier 1 Capital315,696 306,356 298,362 292,165 289,409 
Common Equity Tier 1 Ratio13.39 %13.20 %13.07 %12.84 %12.94 %
 * Quarterly ratios have been annualized

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Arrow Financial Corporation
Consolidated Financial Information
(Dollars in Thousands - Unaudited)
Quarter Ended:12/31/202012/31/2019
Loan Portfolio  
Commercial Loans$240,554 $150,660 
Commercial Real Estate Loans571,787 510,541 
  Subtotal Commercial Loan Portfolio812,341 661,201 
Consumer Loans 859,768 811,198 
Residential Real Estate Loans922,921 913,721 
Total Loans$2,595,030 $2,386,120 
Allowance for Loan Losses  
Allowance for Loan Losses, Beginning of Quarter$28,446 $20,931 
Loans Charged-off(630)(503)
Recoveries of Loans Previously Charged-off179 125 
Net Loans Charged-off(451)(378)
Provision for Loan Losses1,237 634 
Allowance for Loan Losses, End of Quarter$29,232 $21,187 
Nonperforming Assets  
Nonaccrual Loans$6,033 $4,005 
Loans Past Due 90 or More Days and Accruing228 253
Loans Restructured and in Compliance with Modified Terms145 143 
Total Nonperforming Loans6,406 4,401 
Repossessed Assets155 139 
Other Real Estate Owned— 1,122 
Total Nonperforming Assets$6,561 $5,662 
Key Asset Quality Ratios  
Net Loans Charged-off to Average Loans, Quarter-to-date
  Annualized		0.07 %0.06 %
Provision for Loan Losses to Average Loans, Quarter-to-date
  Annualized		0.19 %0.11 %
Allowance for Loan Losses to Period-End Loans1.13 %0.89 %
Allowance for Loan Losses to Period-End Nonperforming Loans456.32 %481.41 %
Nonperforming Loans to Period-End Loans0.25 %0.18 %
Nonperforming Assets to Period-End Assets0.18 %0.18 %
Twelve-Month Period Ended:
Allowance for Loan Losses  
Allowance for Loan Losses, Beginning of Year$21,187 $20,196 
Loans Charged-off(1,989)(1,735)
Recoveries of Loans Previously Charged-off715 647 
Net Loans Charged-off(1,274)(1,088)
Provision for Loan Losses9,319 2,079 
Allowance for Loan Losses, End of Year$29,232 $21,187 
Key Asset Quality Ratios  
Net Loans Charged-off to Average Loans0.05 %0.05 %
Provision for Loan Losses to Average Loans0.37 %0.09 %
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