Exhibit 99.1
NEWS RELEASE	FOR IMMEDIATE RELEASE

 

DCB Financial Corp Announces Pre-Tax Income of $400,000 for Third Quarter 2015

Reversal of Valuation Allowance on Net Deferred Tax Assets Adds $10.7 Million to Net Income

Lewis Center, OH, November 2, 2015 - DCB Financial Corp (the “Company”), (OTCPink:DCBF), parent holding company of The Delaware County Bank & Trust Company, Lewis Center, Ohio (the “Bank”) announced net income of $11.1 million or $1.52 per diluted share for the three months ended September 30, 2015, compared to net income of $50,000 or $0.01 per diluted share for the same period in 2014. The Company reversed a valuation allowance that had previously been recorded against its net deferred tax assets, resulting in a one-time tax benefit in the third quarter of 2015 of $10.7 million or $1.46 per diluted share. Pre-tax income was $400,000 for the third quarter of 2015, compared with $50,000 in the year-ago quarter.

Net income was $11.5 million or $1.58 per diluted share for the nine months ended September 30, 2015, compared to net income of $206,000 or $0.03 per diluted share for the same period in 2014. Pre-tax income was $783,000 or $0.11 per diluted share for the nine months ended September 30, 2015, compared with $206,000 or $0.03 per diluted share in the year-ago period.

On a quarterly basis, the Company determines whether a valuation allowance is necessary on its net deferred tax assets. In doing so, the Company considers all evidence available, both positive and negative, in determining whether it is more likely than not that the net deferred tax assets will be realized. After weighing all available evidence at September 30, 2015, the Company concluded that it is more likely than not that its net deferred tax assets will be realized. As a result, the company reversed the valuation allowance against its net deferred tax assets, resulting in the recognition of a $10.7 million federal income tax benefit in the Company’s net income in the third quarter of 2015.

Ronald J. Seiffert, President and CEO for the Company said, “The reversal of the valuation allowance on our net deferred tax assets reflects the positive trends in the Company’s core earnings and asset quality over the past seven quarters, along with our confidence in the Company’s ability to generate taxable income in future years sufficient to utilize the net deferred tax assets.”

Seiffert continued, “We are continuing to develop a number of strategic initiatives that are designed to further enhance the Company’s profitability in coming quarters, including a planned expansion of our residential mortgage and small-business lending capabilities going into 2016.”

Balance Sheet Highlights

Total assets were $541.7 million at September 30, 2015, compared with $541.6 million at June 30, 2015 and $515.4 million at December 31, 2014. Cash and cash equivalents increased $13.8 million since the end of 2014 due primarily to deposit growth during the period, and net deferred tax assets increased $10.4 million as the result of the reversal of the valuation allowance in the third quarter of 2015.

Total loans were $380.3 million at September 30, 2015, compared with $382.2 million at June 30, 2015 and $385.4 million at December 31, 2014. The Company has experienced significant prepayments in its commercial portfolio in 2015, including 5 relationships aggregating $5.7 million that paid off during the first quarter and 6 relationships aggregating $7.1 million that paid off in the third quarter. Non-performing troubled-debt restructured loans comprised approximately one-third of these large payoffs during 2015.

The Company has classified the $4.8 million carrying amount of its headquarters building as held-for-sale as of September 30, 2015, reflecting the Company’s plan to sell and simultaneously lease back the property.

Deposits totaled $474.9 million at September 30, 2015, compared with $470.5 million at June 30, 2015 and $453.2 million at December 31, 2014. Much of the growth in deposits during 2015 has been the result of higher balances maintained by existing municipal and business customers.

Shareholders’ equity increased $11.5 million in the nine months of 2015 to $58.7 million at September 30, 2015 due to net income for the period, which was comprised of pre-tax income of $783,000 and the income tax benefit of $10.7 million that resulted from the reversal of the valuation allowance against the Company’s net deferred tax assets. The Company’s tangible common equity to tangible assets ratio was 10.8% at September 30, 2015.

The Bank’s Tier 1 leverage ratio was 9.18% and its total risk-based capital ratio was 14.23% at September 30, 2015, both of which were well above the regulatory thresholds required to be classified as a “well-capitalized” institution, which are 5.0% and 10.0%, respectively. The effect of the income tax benefit recorded in the third quarter added approximately 50 basis points to the Bank’s regulatory capital ratios.

Asset Quality and the Provision for Loan Losses

Delinquent loans (including non-accrual loans) totaled $1.5 million or 0.40% of total loans at September 30, 2015, compared to $2.4 million or 0.63% of total loans at June 30, 2015 and $2.2 million or 0.58% of total loans at December 31, 2014. Non-accrual loans totaled $1.3 million or 0.35% of total loans at September 30, 2015, compared to $1.5 million or 0.38% of total loans at June 30, 2015 and $1.4 million or 0.36% of total loans at December 31, 2014.

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Non-performing assets dropped $3.6 million or 30.4% in the third quarter, and were $8.2 million or 1.52% of total assets at September 30, 2015, compared with $11.8 million or 2.18% of total assets at June 30, 2015 and $12.6 million or 2.45% of total assets at December 31, 2014. Troubled debt restructurings (“TDR’s”), which are performing in accordance with the restructured terms and accruing interest, but are included in non-performing assets, were $6.1 million at September 30, 2015, compared to $9.1 million at June 30, 2015, and $9.6 million at December 31, 2014. During the third quarter the Company sold two commercial mortgage loans that had been classified as impaired TDR’s, at the aggregate outstanding amount of the loans of $3.2 million.

Net recoveries of previously charged-off loans totaling $192,000 were recorded in the third quarter of 2015, compared to net charge-offs of $392,000 or 0.43% (annualized) of average loans in the year-ago quarter, and net recoveries of $75,000 in the second quarter of 2015.

Net charge-offs were $30,000 or 0.02% (annualized) of average loans in the first nine months of 2015, compared to net charge-offs of $2.5 million or 0.91% (annualized) of average loans in the first nine months of 2014. Three relationships comprised approximately 71% of the gross charge-offs in the first nine months of 2014, which were charged against specific allowance allocations established in the fourth quarter of 2013.

The Company recorded a negative provision for loan losses of $150,000 in the third quarter of 2015, due primarily to the net recoveries recorded in the quarter and to the favorable impact on the allowance for loan losses of the reduction in non-performing loans during the quarter. The negative provision for loan losses recorded in the third quarter had the effect of offsetting the provision for loan losses of $150,000 that was recorded in the first quarter of 2015, resulting in no provision for loan losses for the nine months ended September 30, 2015. There was no provision for loan losses recorded in the three months and nine months ended September 30, 2014.

The allowance for loan losses was $4.2 million at September 30, 2015 and at June 30, 2015 and December 31, 2014. The ratio of the allowance for loan losses to total loans was 1.12% at September 30, 2015, compared to 1.09% at June 30, 2015, and 1.10% at December 31, 2014. The ratio of the allowance for loan losses to non-performing loans (including TDR’s) was 56.6% at September 30, 2015, compared to 37.8% at June 30, 2015, and 36.8% at December 31, 2014. The ratio of the allowance for loan losses to non-accrual loans was 314% at September 30, 2015, compared to 286% at June 30, 2015, and 306% at December 31, 2014.

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Net Interest Income

Net interest income totaled $4.2 million in the quarter ended September 30, 2015, compared with $4.0 million in the year-ago quarter and $4.2 million in the second quarter of 2015. The net interest margin was 3.35% in the third quarter of 2015, compared to 3.40% in the year-ago quarter and 3.40% in the second quarter of 2015. The decline in the net interest margin was due primarily to the reinvestment of loan amortization and payoffs into loans with lower current yields, as well as from the effect of higher interest-bearing cash balances, with yields averaging 0.25%.

Total average interest-earning assets were $496.5 million in the third quarter of 2015, which was an increase of $33.0 million or 7.1% from the year-ago quarter and was an increase of $5.5 million compared with the second quarter of 2015. Average loans outstanding in the third quarter were $21.0 million higher than the year-ago quarter, and were up $5.3 million compared with the second quarter of 2015. The increase in the third quarter’s average loan balances have occurred despite the decline in actual period end loans outstanding at September 30, 2015 as the result of the timing of the large commercial loan payoffs that occurred in the third quarter of 2015, along with the effect on average balances throughout 2015 of the $16.2 million of growth in the portfolio that occurred in the fourth quarter of 2014. Total average loans were 77.2% of total average interest-earning assets in the third quarter of 2015, compared with 78.2% in the year-ago quarter and 77.0% in the second quarter of 2015.

Total average interest-bearing deposit balances increased $11.9 million in the third quarter of 2015 compared to the year-ago quarter, with an increase of $17.4 million in the average balances of lower-costing interest-bearing demand, savings and money market accounts (transaction accounts) offsetting a decrease in the average balance of time deposits of $5.5 million. Transaction accounts comprised 79.1% of total interest-bearing deposits in the third quarter of 2015, compared to 76.8% in the year-ago quarter and 78.9% in the second quarter of 2015.

Net interest income totaled $12.5 million in the nine months ended September 30, 2015, which was an increase of $594,000 or 5.0% compared with $11.9 million in the year-ago period. The net interest margin was 3.41% for the nine months ended September 30, 2015, compared with 3.45% in the year-ago period.

Average interest-earning assets were $491.7 million in the first nine months of 2015, which was an increase of $30.3 million or 6.6% from the first nine months of 2014. Average loans outstanding in the first nine months of 2015 increased $20.9 million compared to the year-ago period, and totaled 77.4% of total interest-earning assets in the nine months ended September 30, 2015, compared with 78.0% in the nine months ended September 30, 2014.

The average balance in time deposits decreased $7.1 million in the first nine months of 2015 compared with the year-ago period, while the average balances in lower-costing interest-bearing demand, savings and money market accounts increased $25.0 million. Transaction accounts comprised 78.8% of total interest-bearing deposits in the first nine months of 2015, compared to 75.6% in the first nine months of 2014.

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Non-Interest Income and Non-Interest Expenses

Non-interest income was $1.2 million in the third quarter of 2015, compared to $1.1 million in the third quarter of 2014 and $1.2 million in the second quarter of 2015. Non-interest income was $3.6 million in the nine months September 30, 2015, compared to $3.3 million in the first nine months of 2014. Income from wealth management fees and treasury management fees increased $126,000 and $30,000, respectively in the first nine months of 2015 compared to the year-ago period largely from the impact of business development activities.

Non-interest income accounted for 22.9% of total revenue in the third quarter of 2015, compared with 22.6% in the year-ago quarter and 22.2% in the second quarter of 2015. Non-interest income accounted for 22.2% of total revenue in both the nine months ended September 30, 2015 and in the year-ago period.

Non-interest expenses were $5.2 million for the third quarter of 2015, compared with $5.1 million in the year-ago quarter and $5.2 million for the second quarter of 2015. The Company’s efficiency ratio was 95.0% in the third quarter of 2015, compared with 98.7% in the year-ago quarter, and 95.0% in the second quarter of 2015.

Non-interest expenses were $15.3 million in the nine months ended September 30, 2015, compared to $15.0 million in the year-ago period. The Company’s efficiency ratio was 95.0% for the first nine months of 2015, compared to 98.1% in the year-ago period.

About DCB Financial Corp

DCB Financial Corp is a financial holding company formed under the laws of the State of Ohio. The Company is the parent of The Delaware County Bank & Trust Company, a state-chartered commercial bank. The Bank conducts business from its main offices at 110 Riverbend Avenue in Lewis Center, Ohio, and through its eight full-service and six limited-service branch offices located in Central Ohio. The Bank provides customary retail and commercial banking and cash management services to its customers, including checking and savings accounts, time deposits, IRAs, safe deposit facilities, personal loans, commercial loans, commercial leases, real estate mortgage loans, night depository facilities and trust and personalized wealth management services.

Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of DCB Financial Corp. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: an increase in competitive pressure in the banking industry; changes in the interest rate environment which may affect the net interest margin; changes in the regulatory environment; general economic conditions, either nationally or regionally, resulting in, among other things, in a deterioration in credit quality; changes in business conditions and inflation; changes in the securities markets; changes in technology used in the banking business; our ability to maintain and increase market share and control expenses; increases in FDIC insurance premiums may cause earnings to decrease; and other risks set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and in subsequent filings with the Securities and Exchange Commission.

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The Company does not undertake, and specifically disclaims any obligation, to publicly revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Contact:	DCB Financial Corp
	Ronald J. Seiffert, President and CEO
	(740) 657-7000
	J. Daniel Mohr, Executive Vice President and CFO
	(740) 657-7510

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DCB Financial Corp

Consolidated Balance Sheets (Unaudited)

	September 30, 2015			December 31, 2014
	(Dollars in thousands, except share and per share data)
Assets
Cash and due from financial institutions	$	6,883		$	6,247
Interest-bearing deposits		28,148			15,027
Total cash and cash equivalents		35,031			21,274
Securities available-for-sale		82,019			75,909
Loans		380,290			385,444
Less allowance for loan losses		(4,206	)		(4,236	)
Net loans		376,084			381,208
Real estate owned		785			1,111
Investment in FHLB stock		3,250			3,250
Premises and equipment, net		5,178			10,016
Premises and equipment held-for-sale		4,771			—
Bank-owned life insurance		20,598			20,027
Deferred tax asset, net		10,383			—
Accrued interest receivable and other assets		3,635			2,587
Total assets	$	541,734		$	515,382
Liabilities and shareholders’ equity
Liabilities:
Deposits:
Non-interest bearing	$	123,870		$	111,022
Interest bearing		351,037			342,170
Total deposits		474,907			453,192
Borrowings		4,711			11,808
Accrued interest payable and other liabilities		3,420			3,171
Total liabilities		483,038			468,171
Shareholders’ equity:
Common stock		16,456			16,064
Retained earnings		49,526			38,055
Treasury stock		(7,416	)		(7,416	)
Accumulated other comprehensive income		609			654
Deferred stock-based compensation		(479	)		(146	)
Total shareholders’ equity		58,696			47,211
Total liabilities and shareholders’ equity	$	541,734		$	515,382
Common shares outstanding		7,287,435			7,233,795
Book value per common share	$	8.05		$	6.53

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DCB Financial Corp

Consolidated Statements of Operations (Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
	(Dollars in thousands, except share and per share data)
Interest income:
Loans	$	3,979		$	3,775		$	11,884		$	11,231
Securities		473			494			1,460			1,582
Federal funds sold and interest bearing deposits		17			9			46			32
Total interest income		4,469			4,278			13,390			12,845
Interest expense:
Deposits:
Savings and money market  accounts		153			147			445			416
Time accounts		88			104			272			341
NOW accounts		16			19			49			56
		257			270			766			813
Borrowings		35			36			106			108
Total interest expense		292			306			872			921
Net interest income		4,177			3,972			12,518			11,924
Provision for loan losses		(150	)		—			—			—
Net interest income after provision for loan losses		4,327			3,972			12,518			11,924
Non-interest income:
Service charges		523			485			1,475			1,485
Wealth management fees		438			420			1,217			1,091
Treasury management fees		81			58			203			173
Income from bank-owned life insurance		163			165			571			566
Loss on loans held for sale		—			(189	)		—			(546	)
Loss on sale of REO		(19	)		(69	)		(20	)		(73	)
Gain on sale of securities, available-for-sale		—			241			—			101
Gain on sale of branch		—			—			—			438
Other non-interest income		37			29			115			92
Total non-interest income		1,223			1,140			3,561			3,327
Non-interest expense:
Salaries and employee benefits		2,771			2,821			8,302			8,311
Occupancy and equipment		1,010			892			2,996			2,841
Professional services		405			366			1,042			983
Advertising		169			100			418			258
Office supplies, postage and courier		81			72			232			256
FDIC insurance premium		95			180			302			520
State franchise taxes		75			67			225			199
Other non-interest expense		544			564			1,779			1,677
Total non-interest expense		5,150			5,062			15,296			15,045
Income before income tax benefit		400			50			783			206
Income tax benefit		(10,688	)		—			(10,688	)		—
Net income	$	11,088		$	50		$	11,471		$	206
Share and Per Share Data
Basic average common shares outstanding		7,287,435			7,192,350			7,244,394			7,192,350
Diluted average common shares outstanding		7,307,244			7,249,194			7,263,409			7,242,431
Basic earnings per common share	$	1.52		$	0.01		$	1.58		$	0.03
Diluted earnings per common share	$	1.52		$	0.01		$	1.58		$	0.03

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DCB Financial Corp

Consolidated Average Balances (Unaudited)

	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
	(Dollars in thousands)
Earning assets
Interest bearing cash	$	27,563	$	18,324	$	26,167	$	17,867
Securities		82,088		78,692		81,172		79,188
Tax-exempt securities		3,560		4,228		3,584		4,546
Loans (1)		383,323		362,313		380,824		359,896
Total earning assets		496,534		463,557		491,747		461,497
Non-earning assets		39,432		41,264		40,060		40,956
Total assets	$	535,966	$	504,821	$	531,807	$	502,453
Interest bearing liabilities
Interest bearing DDA	$	80,287	$	79,564	$	80,583	$	78,962
Money market		153,318		137,854		155,706		132,880
Savings accounts		43,628		42,440		43,425		42,890
Time deposits		73,151		78,621		74,972		82,052
Borrowings		7,759		6,723		6,304		5,637
Total interest bearing liabilities		358,143		345,202		360,990		342,421
Non-interest bearing deposits	$	126,128	$	109,938	$	119,593	$	110,305
Other non-interest bearing liabilities		4,927		3,575		4,491		4,240
Total liabilities		489,198		458,715		485,074		456,966
Shareholders’ equity		46,768		46,106		46,733		45,487
Total liabilities and shareholders’ equity	$	535,966	$	504,821	$	531,807	$	502,453

(1) Includes loans held for sale in 2014

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DCB Financial Corp

Loans and Deposits (Unaudited)

The following table sets forth the composition of the Company’s loan portfolio at the dates indicated (includes loans held for sale):

	September 30, 2015						June 30, 2015						December 31, 2014
	Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Loan portfolio composition
Commercial and industrial	$	99,498			26.2	%	$	102,754			26.9	%	$	106,222			27.6	%
Commercial real estate		103,891			27.3	%		105,615			27.7	%		111,851			29.0	%
Real estate and home equity		135,934			35.8	%		134,090			35.1	%		129,650			33.7	%
Consumer and credit card		40,689			10.7	%		39,403			10.3	%		37,507			9.7	%
Total loans	$	380,012			100.0	%	$	381,862			100.0	%	$	385,230			100.0	%
Net deferred loan costs		278						302						214
Allowance for loan losses		(4,206	)					(4,164	)					(4,236	)
Net loans	$	376,084					$	378,000					$	381,208

The following table sets forth the composition of the Company’s deposits at the dates indicated :

	September 30, 2015					June 30, 2015					December 31, 2014
	Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Deposit composition
Non-interest bearing demand	$	123,870		26.1	%	$	118,114		25.1	%	$	111,022		24.5	%
Interest bearing demand		81,939		17.3	%		79,954		17.0	%		77,534		17.1	%
Total demand		205,809		43.4	%		198,068		42.1	%		188,556		41.6	%
Savings		44,408		9.3	%		43,722		9.3	%		42,634		9.4	%
Money market		151,910		32.0	%		154,344		32.8	%		147,667		32.6	%
Time deposits		72,780		15.3	%		74,391		15.8	%		74,335		16.4	%
Total deposits	$	474,907		100.0	%	$	470,525		100.0	%	$	453,192		100.0	%

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DCB Financial Corp

Asset Quality (Unaudited)

The following table represents a summary of delinquent loans grouped by the number of days delinquent at the dates indicated:

Delinquent loans and leases	September 30, 2015					June 30, 2015					December 31, 2014
	$		%(1)			$		%(1)			$		%(1)
	(Dollars in thousands)
30 days past due and still accruing	$	60		0.02	%	$	460		0.12	%	$	336		0.09	%
60 days past due and still accruing		129		0.03	%		22		0.01	%		37		0.01	%
90 days past due and still accruing		—		0.00	%		475		0.12	%		480		0.12	%
Non-accrual		1,338		0.35	%		1,457		0.38	%		1,384		0.36	%
Total	$	1,527		0.40	%	$	2,414		0.63	%	$	2,237		0.58	%

(1) As a percentage of total loans, excluding deferred costs

The following table represents information concerning the aggregate amount of non-performing assets (includes loans held for sale):

Non-performing assets	September 30, 2015		June 30, 2015		December 31, 2014
	(Dollars in thousands)
Non-accruing loans:
Residential real estate loans and home equity	$	679	$	766	$	334
Commercial real estate		30		31		298
Commercial and industrial		573		593		632
Consumer loans and credit cards		56		67		120
Total non-accruing loans		1,338		1,457		1,384
Accruing loans delinquent 90 days or more		—		475		480
Total non-performing loans (excluding TDR’s)		1,338		1,932		1,864
Other real estate and repossessed assets		785		807		1,111
Total non-performing assets (excluding TDR’s)	$	2,123	$	2,739	$	2,975
Troubled debt restructurings(1)	$	6,089	$	9,068	$	9,633
Total non-performing loans (including TDR’s)	$	7,427	$	11,000	$	11,497
Total non-performing assets (including TDR’s)	$	8,212	$	11,807	$	12,608

(1) TDR’s that are in compliance with their modified terms and accruing interest.

The following table summarizes changes in the allowance for loan losses arising from loans charged off, recoveries on loans and leases previously charged off and additions to the allowance which have been charged to expense:

Allowance for loan losses	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
	(Dollars in thousands)
Allowance for loan losses, beginning of period	$	4,164		$	4,568		$	4,236		$	6,725
Loans charged-off		(63	)		(445	)		(570	)		(2,703	)
Recoveries of loans previously charged-off		255			53			540			251
Net recoveries (charge-offs)		192			(392	)		(30	)		(2,452	)
Allowance related to loans transferred to held-for-sale		—			—			—			(97	)
Provision for loan losses		(150	)		—			—			—
Allowance for loan losses, end of period	$	4,206		$	4,176		$	4,206		$	4,176

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DCB Financial Corp

Consolidated Financial Information (Unaudited)

Key Ratios	At or for the three months ended September 30,						At or for the nine months ended September 30,
	2015			2014			2015			2014
Return on average assets		8.26	%		0.04	%		4.31	%		0.05	%
Return on average equity		94.9	%		0.43	%		49.1	%		0.60	%
Yield on earning assets		3.57	%		3.66	%		3.76	%		3.71	%
Cost of interest-bearing liabilities		0.32	%		0.35	%		0.32	%		0.42	%
Net interest margin (1)		3.35	%		3.40	%		3.41	%		3.45	%
Non-interest income to total income (2)		22.9	%		22.6	%		22.2	%		22.2	%
Efficiency ratio (3)		95.0	%		98.7	%		95.0	%		98.1	%
Net loans (recovered) charged-off to average loans, annualized		(0.20	)%		0.43	%		0.02	%		0.91	%
Provision for loan losses to average loans, annualized		(0.16	)%		0.00	%		0.0	%		0.00	%
Allowance for loan losses to total loans		1.12	%		1.13	%		1.12	%		1.13	%
Allowance for loan losses to non-accrual loans		314.4	%		138.9	%		314.4	%		138.9	%
Non-accrual loans to total loans		0.35	%		0.81	%		0.35	%		0.81	%
Non-performing assets to total assets  (including performing TDR’s)		1.52	%		2.81	%		1.52	%		2.81	%
Non-performing assets to total assets  (excluding performing TDR’s)		0.39	%		0.84	%		0.39	%		0.84	%

(1) Net interest income divided by average earning assets

(2) Non-interest income (excluding net realized gains and losses on securities and other non-recurring gains and losses) divided by the sum of net interest income and non-interest income (as adjusted)

(3) Non-interest expense (less OREO expense and non-recurring expenses and losses) divided by the sum of net interest income and non-interest income (as adjusted)

12

DCB Financial Corp

Selected Quarterly Financial Data (Unaudited)

	2015									2014
	Third			Second			First			Fourth			Third
	(Dollars in thousands, except per share data)
Interest income	$	4,469		$	4,454		$	4,467		$	4,536		$	4,278
Interest expense		292			295			285			291			306
Net interest income		4,177			4,159			4,182			4,245			3,972
Provision for loan losses		(150	)		—			150			150			—
Net interest income after provision for loan losses		4,327			4,159			4,032			4,094			3,972
Non-interest income		1,223			1,180			1,158			1,132			1,140
Non-interest expenses		5,150			5,195			4,951			5,059			5,062
Income before income tax benefit		400			144			239			168			50
Income tax benefit		(10,688	)		—			—			—			—
Net income	$	11,088		$	144		$	239		$	168		$	50
Stock and related per share data
Basic and diluted earnings per common share	$	1.52		$	0.02		$	0.03		$	0.02		$	0.01
Basic weighted average common shares outstanding		7,287,435			7,287,435			7,237,371			7.196,404			7,192,350
Diluted weighted average common shares outstanding		7,307,244			7,303,902			7,253,840			7,232,961			7,249,194
Common book value per share	$	8.05		$	6.51		$	6.54		$	6.53		$	6.49
Capital Ratios:
Bank
Tier 1 leverage ratio		9.18	%		8.63	%		8.65	%		9.00	%		8.96	%
Common equity tier 1 capital ratio		13.09	%		12.68	%		12.62	%		12.40	%		12.42	%
Tier 1 risk based capital ratio		13.09	%		12.68	%		12.62	%		12.40	%		12.42	%
Total risk based capital ratio		14.23	%		13.83	%		13.75	%		13.56	%		13.57	%
Total equity to assets ratio (consolidated)		10.83	%		8.80	%		9.15	%		9.16	%		9.33	%
Selected ratios:
Return on average assets		8.26	%		0.19	%		0.18	%		0.13	%		0.04	%
Return on average equity		94.9	%		2.17	%		2.05	%		1.44	%		0.43	%
Yield on earning assets		3.57	%		3.61	%		3.73	%		3.86	%		3.66	%
Cost of interest-bearing liabilities		0.32	%		0.33	%		0.32	%		0.33	%		0.35	%
Net interest margin		3.35	%		3.40	%		3.50	%		3.62	%		3.40	%
Non-interest income to total income (1)		22.9	%		22.2	%		21.5	%		20.6	%		22.6	%
Efficiency ratio (2)		95.0	%		95.0	%		92.9	%		94.6	%		98.7	%
Asset quality ratios:
Net loans (recovered) charged-off to average loans, annualized		(0.20	)%		(0.08	)%		0.31	%		0.10	%		0.43	%
Provision for loan losses to average loans, annualized		(0.16	)%		0.00	%		0.16	%		0.16	%		0.00	%
Allowance for loan losses to total loans		1.12	%		1.09	%		1.08	%		1.10	%		1.13	%
Allowance for loan losses to non-accrual loans		314	%		286	%		362	%		306	%		139	%
Non-accrual loans to total loans		0.35	%		0.38	%		0.30	%		0.36	%		0.81	%
Non-performing assets to total assets (including performing TDR’s)		1.52	%		2.18	%		2.26	%		2.45	%		2.81	%
Non-performing assets to total assets (excluding  performing TDR’s)		0.39	%		0.51	%		0.42	%		0.58	%		0.84	%

(1) Non-interest income (net of realized gains and losses on securities and other non-recurring items) divided by the sum of net interest income and non-interest income (as adjusted)

(2) Non-interest expense (less OREO expense) divided by the sum of net interest income and non-interest income (as adjusted)

13