ARROW FINANCIAL CORP - FORM 8-K - EX-99 - April 27, 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 $13.3 million in Net Income and Diluted EPS of $0.85 in Q1

•Key profitability ratios were strong in the first quarter with return on average assets (ROA) of 1.45% and return on average equity (ROE) of 15.81%.
•First-quarter provision for credit losses was ($648) thousand, due to improving economic forecasts.
•Deposits were $3.5 billion on March 31, 2021, up $218.9 million from the previous quarter.
•Over $70 million of additional Small Business Administration Paycheck Protection Program loans were funded in the first quarter of 2021, with over $210 million from inception of the program.

GLENS FALLS, N.Y. (April 27, 2021) – Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three-month period ended March 31, 2021. Net income for the first quarter of 2021 was $13.3 million, compared to $8.1 million in the first quarter of 2020. Net interest income increased to $26.2 million in the first quarter of 2021, compared to $23.0 million for the comparable quarter of 2020.

Annualized key profitability ratios remained strong, as measured by a return on average equity (ROE) of 15.81% and a return on average assets (ROA) of 1.45% for the first quarter, compared to 10.66% and 1.03%, respectively, for the prior year quarter.

“Arrow delivered a very strong first quarter. We continue to grow core deposits and provide support for our small business community with another $70 million in Paycheck Protection Program (PPP) loans," said Arrow President and CEO Thomas J. Murphy. “While the COVID-19 pandemic is ongoing, we had a very positive start to 2021 coupled with signs of broader economic improvement. Looking ahead, I believe our business and team are well-positioned to meet the changing needs of our customers and communities."

The following expands on our first quarter financial results:

COVID-19 Response: In the first quarter, Arrow's banking and insurance locations temporarily paused walk-in access to lobbies in response to a rise in community COVID-19 cases. Full access was restored in mid-March and we continue to use safety measures such as required face coverings, social distancing and personal protective equipment, including shields and hand sanitizing stations, along with frequent cleanings.

Also in the first quarter, Arrow reopened its PPP online portal for a new round of funding and saw continued demand from our customers. As of March 31, 2021, we had originated more than $212.8 million in PPP loans for more than 1,600 small businesses, $70.1 million of which occurred in the first quarter of 2021.

Arrow continues to monitor the impact of the pandemic on our business and closely watch local COVID-19 levels. Currently, remote work is encouraged whenever feasible for our employees, work-related travel remains paused and in-person meetings have been minimized.

Finally, Arrow is proud to share that its two banks were recently recognized as "Top Pandemic Performers" in a Rivel Banking Benchmark study of the Northeastern United States. Glens Falls National Bank ranked eighth in the state and Saratoga National Bank was in the top 25 based on customer feedback about 2020 pandemic performance.
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Loan Growth: Total loans reached $2.6 billion as of March 31, 2021. Loan growth for the first quarter of 2021 was $44.2 million and increased $225.1 million, or 9.3%, from March 31, 2020. Total outstanding commercial loans increased $196.8 million, or 29.2%, as compared to March 31, 2020. The increase in commercial loans includes $162.8 million in outstanding PPP loans. The consumer loan portfolio grew by $36.5 million, or 4.4%, as compared to March 31, 2020, primarily within the indirect automobile lending program. Total outstanding residential real estate loans, net of approximately $28.8 million of loans sold, decreased $14.9 million for the first quarter of 2021. Residential real estate loans decreased $8.2 million, or 0.9%, as compared to March 31, 2020.

Deposit Growth: At March 31, 2021, deposit balances reached $3.5 billion. Deposit growth for the first quarter of 2021 was $218.9 million and increased $642.6 million, or 22.9%, from the prior-year level. Noninterest-bearing deposits represented 21.8% of total deposits at March 31, 2021, compared to 17.4% of total deposits at March 31, 2020. At March 31, 2021, other time deposits were $145.8 million, a decrease of $100.1 million compared to the prior year. Municipal deposits increased $119.5 million, or 15.0% from March 31, 2020.

Net Interest Income: Net interest income for the first quarter increased to $26.2 million, up 13.7% from $23.0 million in the comparable quarter of 2020. Loan growth generated $25.2 million in interest and fees on loans for the first quarter of 2021, an increase of 1.3% from the $24.9 million from the quarter ending March 31, 2020. Interest and fees related to PPP loans produced $1.3 million in revenue in the first quarter of 2021. Interest expense for the first quarter of 2021 was $1.5 million, a decrease of $3.7 million, or 70.5%, from the $5.2 million in expense for the comparable quarter ending March 31, 2020. The net interest margin was 2.99% for the quarter, compared to 3.05% for the first quarter of 2020. 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 for the three months ended March 31, 2021 was $8.6 million, compared to $7.7 million in the comparable 2020 quarter. Favorable market conditions contributed to the net gain on the sale of loans of $1.4 million for the first quarter of 2021, an increase from $213 thousand for the comparable prior year quarter. In addition, income from fiduciary activities and fees for other services for the three months ended March 31, 2021 increased over the comparable quarter of 2020. Other operating income decreased in the first quarter of 2021 as compared to the first quarter of 2020 as a result of several factors, including the reduction of income related to interest rate swap agreements and the net difference of gains and losses from the sale of other real estate owned and fixed assets; partially offset by an increase in income related to bank-owned life insurance.

Noninterest Expense: Noninterest expense for the first quarter of 2021 increased 5.2% to $18.7 million, from $17.8 million for the first quarter of 2020. The largest component of noninterest expense is salaries and benefits paid to our employees, which totaled $11.1 million for the first quarter of 2021.

Provision for Income Taxes: The provision for income taxes was $3.5 million for the first quarter of 2021, compared to $2.0 million for the same quarter of 2020. The effective income tax rates for the three- month periods ended March 31, 2021 and 2020 were 20.6% and 20.1%, respectively.

Asset Quality: Asset quality remained solid at March 31, 2021, as evidenced by low levels of nonperforming assets and charge-offs. Net loan losses, expressed as an annualized percentage of average loans outstanding, were 0.07% for the three-month period ended March 31, 2021, an increase from 0.05% for the three-month period ended March 31, 2020. Nonperforming loans at March 31, 2021, were $8.4 million, up $2.9 million from the year-over-year level at March 31, 2020. Nonperforming assets of $8.7 million at March 31, 2021 represented 0.22% of period-end assets, an increase from 0.20% at March 31, 2020.

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Arrow adopted the Current Expected Credit Losses (CECL) methodology effective January 1, 2021. Arrow recorded a net increase to retained earnings of $120 thousand upon adoption of the new accounting standard. The transition adjustment at January 1, 2021 included a $1.30 million decrease in the allowance for credit losses on loans, and a $1.14 million establishment of an allowance for estimated credit losses on off-balance sheet credit exposures, net of the corresponding $41 thousand increase in deferred tax liabilities. For the first quarter of 2021, the provision for credit losses was ($648) thousand reflecting improving economic forecasts. The allowance for loan losses was $26.8 million on March 31, 2021, which represented 1.02% of loans outstanding, as compared to 0.98% on March 31, 2020.

Liquidity: As of March 31, 2021, Arrow’s liquidity position was strong. Deposit growth for the first quarter of 2021 was $218.9 million and interest-bearing cash balances at March 31, 2021 were $406.6 million. Arrow continues to be positioned to address any unexpected volatility, which may affect cash flow and deposit balances. At March 31, 2021, contingent collateralized lines of credit were in place and available through the Federal Home Loan Bank of New York and Federal Reserve Bank (Fed), totaling $1.4 billion. Arrow has additional liquidity options currently available, including access to unsecured lines of credit such as Fed funds and brokered markets.

Capital: Total stockholders’ equity was $342.4 million on March 31, 2021, up $33.0 million, or 10.7%, from March 31, 2020. Arrow's regulatory capital ratios remained strong in the first quarter of 2021. As of March 31, 2021, Arrow's Common Equity Tier 1 Capital Ratio was 13.56% and Total Risk-Based Capital Ratio was 15.49%. The capital ratios of Arrow and both its subsidiary banks continued to significantly exceed the “well capitalized” regulatory standards.

Cash and Stock Dividends: On March 15, 2021, 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 first quarter of 2020 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. Arrow is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include Upstate Agency, LLC and North Country Investment Advisers, Inc.

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 Arrow from time to time are useful in evaluating Arrow'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-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,
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estimates and projections about the future, including, in particular, statements regarding the uncertainty surrounding the COVID-19 pandemic. 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. Arrow 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 Arrow's Annual Report on Form 10-K for the year ended December 31, 2020, 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 Ended March 31
 20212020
INTEREST AND DIVIDEND INCOME  
Interest and Fees on Loans$25,183 $24,874 
Interest on Deposits at Banks85 124 
Interest and Dividends on Investment Securities:
Fully Taxable1,506 2,193 
Exempt from Federal Taxes920 1,035 
Total Interest and Dividend Income27,694 28,226 
INTEREST EXPENSE  
Interest-Bearing Checking Accounts219 487 
Savings Deposits565 2,471 
Time Deposits over $250,000120 533 
Other Time Deposits222 1,000 
Federal Funds Purchased and
  Securities Sold Under Agreements to Repurchase		2 22 
Federal Home Loan Bank Advances193 429 
Junior Subordinated Obligations Issued to
  Unconsolidated Subsidiary Trusts		169 228 
Interest on Financing Leases49 50 
Total Interest Expense1,539 5,220 
NET INTEREST INCOME26,155 23,006 
Provision for Credit Losses(648)2,772 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES26,803 20,234 
NONINTEREST INCOME  
Income From Fiduciary Activities2,378 2,213 
Fees for Other Services to Customers2,609 2,451 
Insurance Commissions1,640 1,632 
Net Gain (Loss) on Securities 160 (374)
Net Gain on Sales of Loans1,415 213 
Other Operating Income406 1,559 
Total Noninterest Income8,608 7,694 
NONINTEREST EXPENSE  
Salaries and Employee Benefits11,138 10,383 
Occupancy Expenses, Net1,593 1,449 
Technology and Equipment Expense3,459 3,352 
FDIC Assessments270 219 
Other Operating Expense2,218 2,351 
Total Noninterest Expense18,678 17,754 
INCOME BEFORE PROVISION FOR INCOME TAXES16,733 10,174 
Provision for Income Taxes3,453 2,047 
NET INCOME$13,280 $8,127 
Average Shares Outstanding 1:
  
Basic15,528 15,446 
Diluted15,563 15,476 
Per Common Share:  
Basic Earnings$0.86 $0.53 
Diluted Earnings0.85 0.53 
1 2020 Share and Per Share Amounts 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)
 March 31,
2021		December 31, 2020March 31,
2020
ASSETS  
Cash and Due From Banks$45,602 $42,116 $32,525 
Interest-Bearing Deposits at Banks406,605 338,875 106,004 
Investment Securities:
Available-for-Sale at Fair Value464,089 365,287 378,186 
Held-to-Maturity (Approximate Fair Value of $221,360 at March 31, 2021; $226,576 at December 31, 2020; and $242,804 at March 31, 2020)
214,561 218,405 238,520 
Equity Securities1,796 1,636 1,689 
FHLB and Federal Reserve Bank Stock5,360 5,349 5,379 
Loans2,639,243 2,595,030 2,414,193 
Allowance for Credit Losses(26,840)(29,232)(23,637)
Net Loans2,612,403 2,565,798 2,390,556 
Premises and Equipment, Net43,057 42,612 40,987 
Goodwill21,873 21,873 21,873 
Other Intangible Assets, Net2,049 1,950 1,640 
Other Assets86,316 84,735 73,973 
Total Assets$3,903,711 $3,688,636 $3,291,332 
LIABILITIES  
Noninterest-Bearing Deposits751,884 701,341 489,151 
Interest-Bearing Checking Accounts992,486 832,434 793,425 
Savings Deposits1,463,229 1,423,358 1,146,683 
Time Deposits over $250,000100,212 123,622 135,854 
Other Time Deposits145,777 153,971 245,892 
Total Deposits3,453,588 3,234,726 2,811,005 
Federal Funds Purchased and
  Securities Sold Under Agreements to Repurchase		6,795 17,486 57,909 
Federal Home Loan Bank Term Advances45,000 45,000 50,000 
Junior Subordinated Obligations Issued to Unconsolidated
  Subsidiary Trusts		20,000 20,000 20,000 
Finance Leases5,205 5,217 5,249 
Other Liabilities30,710 31,815 37,771 
Total Liabilities3,561,298 3,354,244 2,981,934 
STOCKHOLDERS’ EQUITY
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at March 31, 2021, December 31, 2020 and March 31, 2020
— — — 
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (20,194,474 Shares Issued at March 31, 2021 and December 31, 2020 and 19,606,449 at March 31, 2020)
20,194 20,194 19,606 
Additional Paid-in Capital354,358 353,662 336,021 
Retained Earnings51,263 41,899 37,441 
Accumulated Other Comprehensive Loss(3,096)(816)(2,412)
Treasury Stock, at Cost (4,651,719 Shares at March 31, 2021; 4,678,736 Shares at December 31, 2020 and 4,624,348 Shares at March 31, 2020)
(80,306)(80,547)(81,258)
Total Stockholders’ Equity342,413 334,392 309,398 
Total Liabilities and Stockholders’ Equity$3,903,711 $3,688,636 $3,291,332 
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Arrow Financial Corporation
Selected Quarterly Information
(Dollars In Thousands, Except Per Share Amounts - Unaudited)
Quarter Ended3/31/202112/31/20209/30/20206/30/20203/31/2020
Net Income$13,280 $12,495 $11,046 $9,159 $8,127 
Transactions in Net Income (Net of Tax):     
Net Changes in Fair Value of Equity Investments119 66 (53)(80)(279)
Share and Per Share Data:1
    
Period End Shares Outstanding15,543 15,516 15,489 15,461 15,432 
Basic Average Shares Outstanding15,528 15,499 15,472 15,441 15,446 
Diluted Average Shares Outstanding15,563 15,515 15,481 15,448 15,476 
Basic Earnings Per Share$0.86 $0.81 $0.71 $0.59 $0.53 
Diluted Earnings Per Share0.85 0.81 0.71 0.59 0.53 
Cash Dividend Per Share0.260 0.260 0.252 0.252 0.252 
Selected Quarterly Average Balances:    
  Interest-Bearing Deposits at Banks$334,155 $349,430 $242,928 $155,931 $32,787 
  Investment Securities593,822 590,151 592,457 607,094 603,748 
  Loans2,618,362 2,610,834 2,582,253 2,518,198 2,394,346 
  Deposits3,254,815 3,256,238 3,082,499 2,952,432 2,670,009 
  Other Borrowed Funds82,659 95,047 136,117 129,383 170,987 
  Shareholders' Equity340,708 331,899 324,269 316,380 306,527 
  Total Assets3,712,020 3,721,954 3,583,322 3,437,155 3,180,857 
Return on Average Assets, annualized1.45 %1.34 %1.23 %1.07 %1.03 %
Return on Average Equity, annualized15.81 %14.98 %13.55 %11.64 %10.66 %
Return on Average Tangible Equity, annualized 2
17.00 %16.13 %14.61 %12.58 %11.55 %
Average Earning Assets$3,546,339 $3,550,415 $3,417,638 $3,281,223 $3,030,881 
Average Paying Liabilities2,639,240 2,674,795 2,545,435 2,457,690 2,362,515 
Interest Income27,694 28,372 27,296 28,002 28,226 
Tax-Equivalent Adjustment 3
235 251 284 281 288 
Interest Income, Tax-Equivalent 3
27,929 28,623 27,580 28,283 28,514 
Interest Expense1,539 1,918 2,396 3,160 5,220 
Net Interest Income26,155 26,454 24,900 24,842 23,006 
Net Interest Income, Tax-Equivalent 3
26,390 26,705 25,184 25,123 23,294 
Net Interest Margin, annualized2.99 %2.96 %2.90 %3.05 %3.05 %
Net Interest Margin, Tax-Equivalent, annualized 3
3.02 %2.99 %2.93 %3.08 %3.09 %
Efficiency Ratio Calculation: 4
    
Noninterest Expense$18,678 $18,192 $17,487 $17,245 $17,754 
Less: Intangible Asset Amortization54 56 56 57 58 
Net Noninterest Expense$18,624 $18,136 $17,431 $17,188 $17,696 
Net Interest Income, Tax-Equivalent$26,390 $26,705 $25,184 $25,123 $23,294 
Noninterest Income8,608 9,103 8,697 7,164 7,694 
Less: Net Gain (Loss) on Securities160 88 (72)(106)(374)
Net Gross Income$34,838 $35,720 $33,953 $32,393 $31,362 
Efficiency Ratio53.46 %50.77 %51.34 %53.06 %56.42 %
Period-End Capital Information:     
Total Stockholders' Equity (i.e. Book Value)$342,413 $334,392 $325,660 $317,687 $309,398 
Book Value per Share 1
22.03 21.55 21.02 20.55 20.05 
Goodwill and Other Intangible Assets, net23,922 23,823 23,662 23,535 23,513 
Tangible Book Value per Share 1,2
20.49 20.02 19.50 19.03 18.53 
Capital Ratios:5
  
Tier 1 Leverage Ratio9.37 %9.07 %9.17 %9.32 %9.87 %
Common Equity Tier 1 Capital Ratio
13.56 %13.39 %13.20 %13.07 %12.84 %
Tier 1 Risk-Based Capital Ratio14.39 %14.24 %14.06 %13.94 %13.72 %
Total Risk-Based Capital Ratio15.49 %15.48 %15.28 %15.10 %14.76 %
Assets Under Trust Admin. & Investment Mgmt.$1,725,754 $1,659,029 $1,537,128 $1,502,866 $1,342,531 

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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 Measures Reconciliation: Tangible Book Value and Tangible Equity exclude goodwill and other intangible assets, net from total equity.  These are non-GAAP financial measures which Arrow believes provides investors with information that is useful in understanding its financial performance.
3/31/202112/31/20209/30/20206/30/20203/31/2020
Total Stockholders' Equity (GAAP)$342,413 $334,392 $325,660 $317,687 $309,398 
Less: Goodwill and Other Intangible assets, net23,922 23,823 23,662 23,535 23,513 
Tangible Equity (Non-GAAP)$318,491 $310,569 $301,998 $294,152 $285,885 
Period End Shares Outstanding15,543 15,516 15,489 15,461 15,432 
Tangible Book Value per Share (Non-GAAP)$20.49 $20.02 $19.50 $19.03 $18.53 
Net Income13,280 12,495 11,046 9,159 8,127 
Return on Average Tangible Equity (Net Income/Tangible Equity - Annualized)17.00 %16.13 %14.61 %12.58 %11.55 %
3.Non-GAAP Financial Measures Reconciliation: Net Interest Margin, Tax-Equivalent is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which Arrow believes provides investors with information that is useful in understanding its financial performance.
3/31/202112/31/20209/30/20206/30/20203/31/2020
Interest Income (GAAP)$27,694 $28,372 $27,296 $28,002 $28,226 
Add: Tax-Equivalent adjustment
     (Non-GAAP)		235 251 284 281 288 
Interest Income - Tax Equivalent
     (Non-GAAP)		$27,929 $28,623 $27,580 $28,283 $28,514 
Net Interest Income (GAAP)$26,155 $26,454 $24,900 $24,842 $23,006 
Add: Tax-Equivalent adjustment
     (Non-GAAP)		235 251 284 281 288 
Net Interest Income - Tax Equivalent
     (Non-GAAP)		$26,390 $26,705 $25,184 $25,123 $23,294 
Average Earning Assets$3,546,339 $3,550,415 $3,417,638 $3,281,223 $3,030,881 
Net Interest Margin (Non-GAAP)*3.02 %2.99 %2.93 %3.08 %3.09 %
4.Non-GAAP Financial Measures: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. Arrow believes the efficiency ratio provides investors with information that is useful in understanding its financial performance. Arrow defines efficiency ratio as the ratio of noninterest expense to net gross income (which equals 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 CET1 ratio at March 31, 2021 listed in the tables (i.e., 13.56%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).
3/31/202112/31/20209/30/20206/30/20203/31/2020
Total Risk Weighted Assets$2,404,456 $2,357,094 $2,321,637 $2,283,430 $2,275,902 
Common Equity Tier 1 Capital326,039 315,696 306,356 298,362 292,165 
Common Equity Tier 1 Ratio13.56 %13.39 %13.20 %13.07 %12.84 %

     * Quarterly ratios have been annualized
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Arrow Financial Corporation
Consolidated Financial Information
(Dollars in Thousands - Unaudited)
Quarter Ended:3/31/202112/31/20203/31/2020
Loan Portfolio  
Commercial Loans$288,551 $240,554 $147,100 
Commercial Real Estate Loans581,507 571,787 526,130 
  Subtotal Commercial Loan Portfolio870,058 812,341 673,230 
Consumer Loans861,171 859,768 824,709 
Residential Real Estate Loans908,014 922,921 916,254 
Total Loans$2,639,243 $2,595,030 $2,414,193 
Allowance for Credit Losses   
Allowance for Credit Losses, Beginning of Quarter$29,232 $28,446 $21,187 
Impact of the Adoption of ASU 2016-13(1,300)— — 
Loans Charged-off(633)(630)(481)
Less Recoveries of Loans Previously Charged-off189 179 159 
Net Loans Charged-off(444)(451)(322)
Provision for Credit Losses(648)1,237 2,772 
Allowance for Credit Losses, End of Quarter$26,840 $29,232 $23,637 
Nonperforming Assets   
Nonaccrual Loans$8,087 $6,033 $4,943 
Loans Past Due 90 or More Days and Accruing242 228 437 
Loans Restructured and in Compliance with Modified Terms97 145 136 
Total Nonperforming Loans8,426 6,406 5,516 
Repossessed Assets242 155 160 
Other Real Estate Owned— — 782 
Total Nonperforming Assets$8,668 $6,561 $6,458 
Key Asset Quality Ratios   
Net Loans Charged-off to Average Loans,
   Quarter-to-date Annualized		0.07 %0.07 %0.05 %
Provision for Credit Losses to Average Loans,
  Quarter-to-date Annualized		(0.10)%0.19 %0.47 %
Allowance for Credit Losses to Period-End Loans1.02 %1.13 %0.98 %
Allowance for Credit Losses to Period-End Nonperforming Loans318.54 %456.32 %428.52 %
Nonperforming Loans to Period-End Loans0.32 %0.25 %0.23 %
Nonperforming Assets to Period-End Assets0.22 %0.18 %0.20 %
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