UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
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OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): January 25, 2016
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Peoples Bancorp of North Carolina, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
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North Carolina
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(State or Other Jurisdiction of Incorporation)
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000-27205
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56-2132396
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(Commission File No.)
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(IRS Employer Identification No.)
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518 West C Street, Newton, North Carolina
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28658
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(Address of Principal Executive Offices)
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(Zip Code)
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(828) 464-5620
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(Registrant's Telephone Number, Including Area Code)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Peoples Bancorp of North Carolina, Inc.
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INDEX
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Page
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Item 2.02 – Results of Operations and Financial Condition
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3
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Item 9.01 – Financial Statements and Exhibits
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3
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Signatures
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4
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Exhibit (99)(a) Press Release dated January 25, 2016
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5
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PEOPLES BANCORP OF NORTH CAROLINA, INC.
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Date: January 25, 2016
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By:
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/s/ A. Joseph Lampron, Jr.
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A. Joseph Lampron, Jr.
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Executive Vice President and Chief Financial Officer
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Contact: | Lance A. Sellers |
·
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Net earnings were $2.2 million or $0.40 basic net earnings per share and $0.39 diluted net earnings per share for the three months ended December 31, 2015, as compared to $1.8 million or $0.32 basic and diluted net earnings per share for the same period one year ago.
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·
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Net earnings were $9.6 million or $1.73 basic net earnings per share and $1.72 diluted net earnings per share for the year ended December 31, 2015, as compared to $9.4 million or $1.67 basic net earnings per share and $1.66 diluted net earnings per share for the same period one year ago.
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·
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Non-performing assets declined to $9.2 million or 0.88% of total assets at December 31, 2015, compared to $12.7 million or 1.2% of total assets at December 31, 2014.
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·
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Total loans increased $37.2 million to $689.1 million at December 31, 2015, compared to $651.9 million at December 31, 2014.
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·
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Core deposits were $801.2 million or 96.3% of total deposits at December 31, 2015, compared to $755.8 million or 92.8% of total deposits at December 31, 2014.
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CONSOLIDATED BALANCE SHEETS
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||||||||
December 31, 2015 and December 31, 2014
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(Dollars in thousands)
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December 31, 2015
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December 31, 2014
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(Unaudited)
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(Audited)
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ASSETS:
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Cash and due from banks
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$
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29,194
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$
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51,213
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Interest-bearing deposits
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10,569
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17,885
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Cash and cash equivalents
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39,763
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69,098
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Investment securities available for sale
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268,530
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281,099
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Other investments
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3,636
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4,031
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Total securities
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272,166
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285,130
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Mortgage loans held for sale
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4,149
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1,375
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Loans
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689,091
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651,891
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Less: Allowance for loan losses
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(9,589
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)
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(11,082
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)
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Net loans
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679,502
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640,809
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Premises and equipment, net
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16,976
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17,000
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Cash surrender value of life insurance
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14,546
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14,125
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Accrued interest receivable and other assets
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11,379
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12,957
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Total assets
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$
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1,038,481
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$
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1,040,494
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LIABILITIES AND SHAREHOLDERS' EQUITY:
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Deposits:
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Noninterest-bearing demand
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$
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244,231
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$
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210,758
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NOW, MMDA & savings
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431,052
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407,504
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Time, $250,000 or more
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26,891
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47,872
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Other time
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130,001
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148,566
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Total deposits
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832,175
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814,700
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Securities sold under agreements to repurchase
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27,874
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48,430
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FHLB borrowings
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43,500
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50,000
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Junior subordinated debentures
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20,619
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20,619
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Accrued interest payable and other liabilities
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9,449
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8,080
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Total liabilities
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933,617
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941,829
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Shareholders' equity:
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Series A preferred stock, $1,000 stated value; authorized
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5,000,000 shares; no shares issued and outstanding
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-
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-
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Common stock, no par value; authorized
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20,000,000 shares; issued and outstanding | ||||||||
5,510,538 shares at 12/31/15 and
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5,612,588 shares at 12/31/14
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46,171
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48,088
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Retained earnings
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53,183
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45,124
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Accumulated other comprehensive income
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5,510
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5,453
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Total shareholders' equity
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104,864
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98,665
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Total liabilities and shareholders' equity
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$
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1,038,481
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$
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1,040,494
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CONSOLIDATED STATEMENTS OF INCOME
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For the three months and years ended December 31, 2015 and 2014
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(Dollars in thousands, except per share amounts)
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Three months ended
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Years ended
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December 31,
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December 31,
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2015
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2014
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2015
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2014
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Audited)
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INTEREST INCOME:
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Interest and fees on loans
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$
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8,082
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$
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7,749
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$
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31,098
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$
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30,305
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Interest on due from banks
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5
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23
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26
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65
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Interest on investment securities:
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U.S. Government sponsored enterprises
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657
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697
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2,616
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2,995
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State and political subdivisions
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1,135
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1,163
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4,600
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4,677
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Other
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81
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85
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326
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378
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Total interest income
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9,960
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9,717
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38,666
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38,420
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INTEREST EXPENSE:
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NOW, MMDA & savings deposits
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109
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124
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432
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499
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Time deposits
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184
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264
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870
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1,188
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FHLB borrowings
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441
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516
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1,735
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2,166
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Junior subordinated debentures
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105
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98
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402
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389
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Other
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11
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12
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45
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45
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Total interest expense
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850
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1,014
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3,484
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4,287
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NET INTEREST INCOME
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9,110
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8,703
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35,182
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34,133
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PROVISION FOR (REDUCTION OF PROVISION
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FOR) LOAN LOSSES
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(210
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)
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(672
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)
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(17
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)
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(699
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)
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NET INTEREST INCOME AFTER
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PROVISION FOR LOAN LOSSES
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9,320
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9,375
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35,199
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34,832
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NON-INTEREST INCOME:
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Service charges
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1,149
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1,307
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4,647
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4,961
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Other service charges and fees
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214
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188
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931
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1,080
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Gain on sale of securities
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-
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-
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-
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266
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Mortgage banking income
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320
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256
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1,130
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804
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Insurance and brokerage commissions
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170
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180
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714
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701
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Miscellaneous
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1,651
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1,075
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5,890
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4,352
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Total non-interest income
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3,504
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3,006
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13,312
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12,164
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NON-INTEREST EXPENSES:
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Salaries and employee benefits
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4,602
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4,747
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18,285
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17,530
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Occupancy
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1,710
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1,775
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6,288
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6,251
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Other
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3,711
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4,419
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11,205
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11,890
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Total non-interest expense
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10,023
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10,941
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35,778
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35,671
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EARNINGS BEFORE INCOME TAXES
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2,801
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1,440
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12,733
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11,325
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INCOME TAXES
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613
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(376
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)
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3,100
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1,937
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NET EARNINGS
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$
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2,188
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$
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1,816
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$
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9,633
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$
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9,388
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PER SHARE AMOUNTS
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Basic net earnings
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$
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0.40
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$
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0.32
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$
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1.73
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$
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1.67
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Diluted net earnings
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$
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0.39
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$
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0.32
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$
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1.72
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$
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1.66
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Cash dividends
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$
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0.08
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$
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0.06
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$
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0.28
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$
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0.18
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Book value
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$
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19.03
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$
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17.58
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$
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19.03
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$
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17.58
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FINANCIAL HIGHLIGHTS
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For the three months and years ended December 31, 2015 and 2014
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(Dollars in thousands)
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Three months ended
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Years ended
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December 31,
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December 31,
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2015
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2014
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2015
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2014
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Audited)
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SELECTED AVERAGE BALANCES:
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Available for sale securities
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$
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261,512
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$
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272,768
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$
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266,830
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$
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287,371
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Loans
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687,592
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648,355
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669,628
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631,025
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||||||||||||
Earning assets
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951,843
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962,515
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952,251
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949,537
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Assets
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1,043,587
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1,054,504
|
1,038,594
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1,036,486
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||||||||||||
Deposits
|
819,638
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824,706
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816,628
|
808,399
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||||||||||||
Shareholders' equity
|
105,122
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98,452
|
106,644
|
96,877
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SELECTED KEY DATA:
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Net interest margin (tax equivalent)
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3.99
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%
|
3.83
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%
|
3.94
|
%
|
3.84
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%
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Return on average assets
|
0.83
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%
|
0.68
|
%
|
0.93
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%
|
0.91
|
%
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Return on average shareholders' equity
|
8.26
|
%
|
7.32
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%
|
9.03
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%
|
9.69
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%
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Shareholders' equity to total assets (period end)
|
10.10
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%
|
9.48
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%
|
10.10
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%
|
9.48
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%
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ALLOWANCE FOR LOAN LOSSES:
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Balance, beginning of period
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$
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10,420
|
$
|
12,344
|
$
|
11,082
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$
|
13,501
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||||||||
Provision for loan losses
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(210
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)
|
(672
|
)
|
(17
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)
|
(699
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)
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Charge-offs
|
(668
|
)
|
(718
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)
|
(1,844
|
)
|
(2,637
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)
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Recoveries
|
47
|
128
|
368
|
917
|
||||||||||||
Balance, end of period
|
$
|
9,589
|
$
|
11,082
|
$
|
9,589
|
$
|
11,082
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ASSET QUALITY:
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Non-accrual loans
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$
|
8,432
|
$
|
10,729
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||||||||||||
90 days past due and still accruing
|
17
|
-
|
||||||||||||||
Other real estate owned
|
739
|
2,016
|
||||||||||||||
Total non-performing assets
|
$
|
9,188
|
$
|
12,745
|
||||||||||||
Non-performing assets to total assets
|
0.88
|
%
|
1.22
|
%
|
||||||||||||
Allowance for loan losses to non-performing assets
|
104.36
|
%
|
86.95
|
%
|
||||||||||||
Allowance for loan losses to total loans
|
1.39
|
%
|
1.70
|
%
|
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LOAN RISK GRADE ANALYSIS:
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Percentage of Loans
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By Risk Grade
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12/31/2015
|
12/31/2014
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Risk Grade 1 (excellent quality)
|
1.66
|
%
|
2.18
|
%
|
||||||||||||
Risk Grade 2 (high quality)
|
24.40
|
%
|
22.30
|
%
|
||||||||||||
Risk Grade 3 (good quality)
|
53.64
|
%
|
50.76
|
%
|
||||||||||||
Risk Grade 4 (management attention)
|
14.26
|
%
|
16.54
|
%
|
||||||||||||
Risk Grade 5 (watch)
|
3.26
|
%
|
4.62
|
%
|
||||||||||||
Risk Grade 6 (substandard)
|
2.53
|
%
|
3.30
|
%
|
||||||||||||
Risk Grade 7 (doubtful)
|
0.00
|
%
|
0.00
|
%
|
||||||||||||
Risk Grade 8 (loss)
|
0.00
|
%
|
0.00
|
%
|
||||||||||||
At December 31, 2015, including non-accrual loans, there were five relationships exceeding $1.0 million in the Watch risk grade (which totaled $10.6 million) and one relationship exceeding $1.0 million in the Substandard risk grade (which totaled $1.3 million). There were two relationship with loans in both the Watch and Substandard risk grades, which exceeded $1.0 million for loans in both risk grades combined.
|
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(END)
|