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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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 October 19, 2020
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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:
October 19, 2020
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By:
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/s/
Jeffrey N. Hooper
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Jeffrey
N. Hooper
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Executive
Vice President and Chief Financial Officer
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September
30,
2020
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December
31,
2019
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September
30,
2019
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(Unaudited)
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(Audited)
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(Unaudited)
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ASSETS:
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Cash and due from
banks
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$48,355
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$48,337
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$48,605
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Interest-bearing
deposits
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15,778
|
720
|
80,948
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Federal funds
sold
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140,095
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3,330
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-
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Cash and cash
equivalents
|
204,228
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52,387
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129,553
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Investment
securities available for sale
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222,991
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195,746
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186,263
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Other
investments
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7,163
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4,231
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7,239
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Total
securities
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230,154
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199,977
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193,502
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Mortgage loans held
for sale
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8,960
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4,417
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4,263
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Loans
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973,871
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849,874
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845,599
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Less: Allowance for
loan losses
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(9,892)
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(6,680)
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(6,578)
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Net
loans
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963,979
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843,194
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839,021
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Premises and
equipment, net
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19,057
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18,604
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18,730
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Cash surrender
value of life insurance
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16,742
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16,319
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16,222
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Accrued interest
receivable and other assets
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19,128
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19,984
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21,908
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Total
assets
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$1,462,248
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$1,154,882
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$1,223,199
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LIABILITIES
AND SHAREHOLDERS' EQUITY:
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Deposits:
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Noninterest-bearing
demand
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$455,199
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$338,004
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$339,081
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NOW, MMDA &
savings
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626,674
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516,757
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509,611
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Time, $250,000 or
more
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24,717
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34,269
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33,082
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Other
time
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79,806
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77,487
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79,794
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Total
deposits
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1,186,396
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966,517
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961,568
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Securities sold
under agreements to repurchase
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34,151
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24,221
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21,927
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FHLB
borrowings
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70,000
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-
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70,000
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Junior subordinated
debentures
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15,464
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15,619
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20,619
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Accrued interest
payable and other liabilities
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16,786
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14,405
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16,402
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Total
liabilities
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1,322,797
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1,020,762
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1,090,516
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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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-
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Common stock, no
par value; authorized
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20,000,000 shares;
issued and outstanding
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5,787,504 shares
9/30/20
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5,912,300 shares
12/31/19, 5,912,300 shares 9/30/19
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56,871
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59,813
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59,813
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Retained
earnings
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76,580
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70,663
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68,528
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Accumulated other
comprehensive income
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6,000
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3,644
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4,342
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Total shareholders'
equity
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139,451
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134,120
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132,683
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Total liabilities
and shareholders' equity
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$1,462,248
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$1,154,882
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$1,223,199
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Three
months ended
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Nine
months ended
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||
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September
30,
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September
30,
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2020
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2019
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2020
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2019
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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INTEREST
INCOME:
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Interest and fees
on loans
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$10,507
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$11,004
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$31,367
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$32,517
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Interest on due
from banks
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19
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87
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103
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136
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Interest on federal
funds sold
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33
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-
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178
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-
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Interest on
investment securities:
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U.S. Government
sponsored enterprises
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528
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628
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1,864
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1,942
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State and political
subdivisions
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717
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671
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2,042
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2,265
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Other
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64
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40
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202
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128
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Total interest
income
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11,868
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12,430
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35,756
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36,988
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INTEREST
EXPENSE:
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NOW, MMDA &
savings deposits
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482
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455
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1,455
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1,057
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Time
deposits
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224
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259
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725
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581
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FHLB
borrowings
|
103
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21
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269
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70
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Junior subordinated
debentures
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76
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210
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296
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656
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Other
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57
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49
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150
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168
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Total interest
expense
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942
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994
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2,895
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2,532
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NET
INTEREST INCOME
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10,926
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11,436
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32,861
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34,456
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PROVISION
FOR LOAN LOSSES
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522
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422
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3,460
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677
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NET
INTEREST INCOME AFTER
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PROVISION
FOR LOAN LOSSES
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10,404
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11,014
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29,401
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33,779
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NON-INTEREST
INCOME:
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Service
charges
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809
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1,178
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2,635
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3,409
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Other service
charges and fees
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188
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202
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543
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548
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Gain/(loss) on sale
of securities
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1,688
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(5)
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2,145
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226
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Mortgage banking
income
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750
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376
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1,635
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834
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Insurance and
brokerage commissions
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200
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206
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647
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642
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Appraisal
management fee income
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1,871
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1,311
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4,955
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3,285
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Miscellaneous
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1,626
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1,440
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4,406
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4,269
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Total non-interest
income
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7,132
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4,708
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16,966
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13,213
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NON-INTEREST
EXPENSES:
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Salaries and
employee benefits
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5,737
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5,695
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16,996
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17,060
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Occupancy
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1,943
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1,861
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5,725
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5,409
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Appraisal
management fee expense
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1,478
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1,012
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3,845
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2,538
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Other
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2,756
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2,699
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8,249
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8,420
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Total non-interest
expense
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11,914
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11,267
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34,815
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33,427
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EARNINGS BEFORE
INCOME TAXES
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5,622
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4,455
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11,552
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13,565
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INCOME
TAXES
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1,113
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834
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2,115
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2,464
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NET
EARNINGS
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$4,509
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$3,621
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$9,437
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$11,101
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PER
SHARE AMOUNTS
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Basic net
earnings
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$0.78
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$0.62
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$1.62
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$1.87
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Diluted net
earnings
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$0.78
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$0.61
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$1.62
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$1.86
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Cash
dividends
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$0.15
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$0.14
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$0.60
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$0.52
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Book
value
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$24.10
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$22.44
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$24.10
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$22.44
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Three
months ended
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Nine
months ended
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September
30,
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September
30,
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||
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2020
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2019
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2020
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2019
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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SELECTED
AVERAGE BALANCES:
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Available for sale
securities
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$200,101
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$180,439
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$194,710
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$185,107
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Loans
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970,529
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840,523
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926,663
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829,385
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Earning
assets
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1,343,323
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1,044,159
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1,235,660
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1,028,573
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Assets
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1,438,238
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1,139,256
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1,332,249
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1,122,226
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Deposits
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1,170,627
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939,254
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1,083,089
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916,420
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Shareholders'
equity
|
140,007
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131,890
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140,191
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132,053
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SELECTED
KEY DATA:
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Net interest margin
(tax equivalent)
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3.28%
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4.41%
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3.60%
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4.56%
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Return on average
assets
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1.25%
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1.26%
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0.95%
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1.32%
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Return on average
shareholders' equity
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12.81%
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10.89%
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8.99%
|
11.24%
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Shareholders'
equity to total assets (period end)
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9.54%
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10.85%
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9.54%
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10.85%
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ALLOWANCE
FOR LOAN LOSSES:
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Balance, beginning
of period
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$9,433
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$6,541
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$6,680
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$6,445
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Provision for loan
losses
|
522
|
422
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3,460
|
677
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Charge-offs
|
(152)
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(551)
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(529)
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(911)
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Recoveries
|
89
|
166
|
281
|
367
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Balance, end of
period
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$9,892
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$6,578
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$9,892
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$6,578
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ASSET
QUALITY:
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Non-accrual
loans
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$3,475
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$3,258
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90 days past due
and still accruing
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|
84
|
-
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Other real estate
owned
|
|
|
128
|
26
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Total
non-performing assets
|
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$3,687
|
$3,284
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Non-performing
assets to total assets
|
|
|
0.25%
|
0.27%
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Loans modifications
related to COVID-19
|
|
|
$119,706
|
$-
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Allowance for loan
losses to non-performing assets
|
|
|
268.29%
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200.30%
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Allowance for loan
losses to total loans
|
|
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1.02%
|
0.78%
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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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9/30/20
|
9/30/19
|
Risk Grade 1
(excellent quality)
|
0.68%
|
0.60%
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Risk Grade 2 (high
quality)
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20.89%
|
25.00%
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Risk Grade 3 (good
quality)
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65.93%
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61.91%
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Risk Grade 4
(management attention)
|
9.89%
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10.32%
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Risk Grade 5
(watch)
|
1.90%
|
1.43%
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Risk Grade 6
(substandard)
|
0.71%
|
0.74%
|
Risk Grade 7
(doubtful)
|
0.00%
|
0.00%
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Risk Grade 8
(loss)
|
0.00%
|
0.00%
|