New York | 22-2448962 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
250 GLEN STREET, GLENS FALLS, NEW YORK 12801 | ||||
(Address of principal executive offices) (Zip Code) | ||||
Registrant’s telephone number, including area code: (518) 745-1000 |
Large accelerated filer | Accelerated filer x | ||||||
Non-accelerated filer | (Do not check if a smaller reporting company) | ||||||
Smaller reporting company | |||||||
Emerging growth company | |||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the Exchange Act. __ |
Class | Outstanding as of October 31, 2017 | |
Common Stock, par value $1.00 per share | 13,920,322 |
Page | |
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) (Unaudited) | |||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2016 | |||||||||
ASSETS | |||||||||||
Cash and Due From Banks | $ | 55,683 | $ | 43,024 | $ | 66,556 | |||||
Interest-Bearing Deposits at Banks | 24,983 | 14,331 | 35,503 | ||||||||
Investment Securities: | |||||||||||
Available-for-Sale | 315,459 | 346,996 | 339,190 | ||||||||
Held-to-Maturity (Approximate Fair Value of $343,899 at September 30, 2017; $343,751 at December 31, 2016; and $347,441 at September 30, 2016) | 341,526 | 345,427 | 338,238 | ||||||||
Other Investments | 6,704 | 10,912 | 5,371 | ||||||||
Loans | 1,908,799 | 1,753,268 | 1,707,216 | ||||||||
Allowance for Loan Losses | (17,695 | ) | (17,012 | ) | (16,975 | ) | |||||
Net Loans | 1,891,104 | 1,736,256 | 1,690,241 | ||||||||
Premises and Equipment, Net | 26,432 | 26,938 | 26,718 | ||||||||
Goodwill | 21,873 | 21,873 | 21,873 | ||||||||
Other Intangible Assets, Net | 2,395 | 2,696 | 2,802 | ||||||||
Other Assets | 58,303 | 56,789 | 53,993 | ||||||||
Total Assets | $ | 2,744,462 | $ | 2,605,242 | $ | 2,580,485 | |||||
LIABILITIES | |||||||||||
Noninterest-Bearing Deposits | $ | 448,515 | $ | 387,280 | $ | 381,760 | |||||
Interest-Bearing Checking Accounts | 967,250 | 877,988 | 993,221 | ||||||||
Savings Deposits | 696,805 | 651,965 | 629,201 | ||||||||
Time Deposits over $250,000 | 28,464 | 32,878 | 45,237 | ||||||||
Other Time Deposits | 166,082 | 166,435 | 163,768 | ||||||||
Total Deposits | 2,307,116 | 2,116,546 | 2,213,187 | ||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 61,419 | 35,836 | 38,589 | ||||||||
Federal Home Loan Bank Overnight Advances | 33,000 | 123,000 | — | ||||||||
Federal Home Loan Bank Term Advances | 55,000 | 55,000 | 55,000 | ||||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | ||||||||
Other Liabilities | 23,279 | 22,008 | 24,501 | ||||||||
Total Liabilities | 2,499,814 | 2,372,390 | 2,351,277 | ||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized | — | — | — | ||||||||
Common Stock, $1 Par Value; 20,000,000 Shares Authorized (18,481,301 Shares Issued and Outstanding at September 30, 2017; 17,943,201 at December 31, 2016 and 17,943,201 at September 30, 2016) | 18,481 | 17,943 | 17,943 | ||||||||
Additional Paid-in Capital | 289,294 | 270,880 | 269,680 | ||||||||
Retained Earnings | 22,581 | 28,644 | 25,400 | ||||||||
Unallocated ESOP Shares (20,050 Shares at September 30, 2017; 19,466 Shares at December 31, 2016 and 38,396 Shares at September 30, 2016) | (400 | ) | (400 | ) | (750 | ) | |||||
Accumulated Other Comprehensive Loss | (6,135 | ) | (6,834 | ) | (5,442 | ) | |||||
Treasury Stock, at Cost (4,570,291 Shares at September 30, 2017; 4,441,093 Shares at December 31, 2016 and 4,479,257 Shares at September 30, 2016) | (79,173 | ) | (77,381 | ) | (77,623 | ) | |||||
Total Stockholders’ Equity | 244,648 | 232,852 | 229,208 | ||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,744,462 | $ | 2,605,242 | $ | 2,580,485 |
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||
Interest and Fees on Loans | $ | 17,996 | $ | 15,833 | $ | 51,693 | $ | 46,565 | |||||||
Interest on Deposits at Banks | 104 | 34 | 242 | 100 | |||||||||||
Interest and Dividends on Investment Securities: | |||||||||||||||
Fully Taxable | 1,924 | 1,889 | 5,927 | 5,994 | |||||||||||
Exempt from Federal Taxes | 1,575 | 1,526 | 4,660 | 4,486 | |||||||||||
Total Interest and Dividend Income | 21,599 | 19,282 | 62,522 | 57,145 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Interest-Bearing Checking Accounts | 376 | 320 | 1,088 | 941 | |||||||||||
Savings Deposits | 356 | 231 | 963 | 677 | |||||||||||
Time Deposits over $250,000 | 66 | 61 | 187 | 133 | |||||||||||
Other Time Deposits | 241 | 231 | 702 | 677 | |||||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 13 | 9 | 29 | 24 | |||||||||||
Federal Home Loan Bank Advances | 700 | 390 | 1,651 | 1,013 | |||||||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 197 | 163 | 564 | 487 | |||||||||||
Total Interest Expense | 1,949 | 1,405 | 5,184 | 3,952 | |||||||||||
NET INTEREST INCOME | 19,650 | 17,877 | 57,338 | 53,193 | |||||||||||
Provision for Loan Losses | 800 | 480 | 1,580 | 1,550 | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 18,850 | 17,397 | 55,758 | 51,643 | |||||||||||
NONINTEREST INCOME | |||||||||||||||
Income From Fiduciary Activities | 2,116 | 1,923 | 6,284 | 5,854 | |||||||||||
Fees for Other Services to Customers | 2,453 | 2,491 | 7,122 | 7,144 | |||||||||||
Insurance Commissions | 2,113 | 2,127 | 6,426 | 6,468 | |||||||||||
Net Gain on Securities Transactions | 10 | — | 10 | 144 | |||||||||||
Net Gain on Sales of Loans | 182 | 310 | 431 | 649 | |||||||||||
Other Operating Income | 267 | 263 | 620 | 925 | |||||||||||
Total Noninterest Income | 7,141 | 7,114 | 20,893 | 21,184 | |||||||||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries and Employee Benefits | 9,251 | 8,693 | 27,343 | 25,223 | |||||||||||
Occupancy Expenses, Net | 2,371 | 2,425 | 7,410 | 7,223 | |||||||||||
FDIC Assessments | 225 | 217 | 679 | 844 | |||||||||||
Other Operating Expense | 3,701 | 3,747 | 11,229 | 11,047 | |||||||||||
Total Noninterest Expense | 15,548 | 15,082 | 46,661 | 44,337 | |||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 10,443 | 9,429 | 29,990 | 28,490 | |||||||||||
Provision for Income Taxes | 3,027 | 2,691 | 8,735 | 8,556 | |||||||||||
NET INCOME | $ | 7,416 | $ | 6,738 | $ | 21,255 | $ | 19,934 | |||||||
Average Shares Outstanding 1: | |||||||||||||||
Basic | 13,889 | 13,810 | 13,889 | 13,775 | |||||||||||
Diluted | 13,966 | 13,901 | 13,981 | 13,842 | |||||||||||
Per Common Share: | |||||||||||||||
Basic Earnings | $ | 0.53 | $ | 0.49 | $ | 1.53 | $ | 1.45 | |||||||
Diluted Earnings | 0.53 | 0.48 | 1.52 | 1.44 |
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands) (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Income | $ | 7,416 | $ | 6,738 | $ | 21,255 | $ | 19,934 | |||||||
Other Comprehensive Income, Net of Tax: | |||||||||||||||
Net Unrealized Securities Holding Gains (Losses) Arising During the Period | 9 | (810 | ) | 465 | 2,309 | ||||||||||
Reclassification Adjustments for Securities Gains Included in Net Income | (6 | ) | — | (6 | ) | (88 | ) | ||||||||
Amortization of Net Retirement Plan Actuarial Loss | 64 | 111 | 245 | 314 | |||||||||||
Accretion of Net Retirement Plan Prior Service Credit | (2 | ) | (1 | ) | (5 | ) | (5 | ) | |||||||
Other Comprehensive Income (Loss) | 65 | (700 | ) | 699 | 2,530 | ||||||||||
Comprehensive Income | $ | 7,481 | $ | 6,038 | $ | 21,954 | $ | 22,464 | |||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Unallo-cated ESOP Shares | Accumu-lated Other Com- prehensive Loss | Treasury Stock | Total | |||||||||||||||||||||
Balance at December 31, 2016 | $ | 17,943 | $ | 270,880 | $ | 28,644 | $ | (400 | ) | $ | (6,834 | ) | $ | (77,381 | ) | $ | 232,852 | ||||||||||
Net Income | — | — | 21,255 | — | — | — | 21,255 | ||||||||||||||||||||
Other Comprehensive Income | — | — | — | — | 699 | — | 699 | ||||||||||||||||||||
3% Stock Dividend (538,100 Shares) | 538 | 16,661 | (17,199 | ) | — | — | — | — | |||||||||||||||||||
Cash Dividends Paid, $.728 per Share 1 | — | — | (10,119 | ) | — | — | — | (10,119 | ) | ||||||||||||||||||
Stock Options Exercised, Net (34,489 Shares) | — | 335 | — | — | — | 399 | 734 | ||||||||||||||||||||
Shares Issued Under the Directors’ Stock Plan (3,927 Shares) | — | 84 | — | — | — | 42 | 126 | ||||||||||||||||||||
Shares Issued Under the Employee Stock Purchase Plan (10,869 Shares) | — | 230 | — | — | — | 121 | 351 | ||||||||||||||||||||
Shares Issued for Dividend Reinvestment Plans (37,525 Shares) | — | 843 | — | — | — | 413 | 1,256 | ||||||||||||||||||||
Stock-Based Compensation Expense | — | 261 | — | — | — | — | 261 | ||||||||||||||||||||
Purchase of Treasury Stock (83,256 Shares) | — | — | — | — | — | (2,767 | ) | (2,767 | ) | ||||||||||||||||||
Balance at September 30, 2017 | $ | 18,481 | $ | 289,294 | $ | 22,581 | $ | (400 | ) | $ | (6,135 | ) | $ | (79,173 | ) | $ | 244,648 | ||||||||||
Balance at December 31, 2015 | $ | 17,421 | $ | 250,680 | $ | 32,139 | $ | (1,100 | ) | $ | (7,972 | ) | $ | (77,197 | ) | $ | 213,971 | ||||||||||
Net Income | — | — | 19,934 | — | — | — | 19,934 | ||||||||||||||||||||
Other Comprehensive Income | — | — | — | — | 2,530 | — | 2,530 | ||||||||||||||||||||
3% Stock Dividend (522,425 Shares) | 522 | 16,415 | (16,937 | ) | — | — | — | — | |||||||||||||||||||
Cash Dividends Paid, $.707 per Share 1 | — | — | (9,736 | ) | — | — | — | (9,736 | ) | ||||||||||||||||||
Stock Options Exercised, Net (80,449 Shares) | — | 980 | — | — | — | 795 | 1,775 | ||||||||||||||||||||
Shares Issued Under the Directors’ Stock Plan (3,522 Shares) | — | 76 | — | — | — | 36 | 112 | ||||||||||||||||||||
Shares Issued Under the Employee Stock Purchase Plan (13,041 Shares) | — | 229 | — | — | — | 129 | 358 | ||||||||||||||||||||
Shares Issued for Dividend Reinvestment Plans (44,448 Shares) | — | 862 | — | — | — | 440 | 1,302 | ||||||||||||||||||||
Stock-Based Compensation Expense | — | 215 | — | — | — | — | 215 | ||||||||||||||||||||
Tax Benefit for Disposition of Stock Options | — | 63 | — | — | — | — | 63 | ||||||||||||||||||||
Purchase of Treasury Stock (64,146 Shares) | — | — | — | — | — | (1,826 | ) | (1,826 | ) | ||||||||||||||||||
Allocation of ESOP Stock (17,997 Shares) | — | 160 | — | 350 | — | — | 510 | ||||||||||||||||||||
Balance at September 30, 2016 | $ | 17,943 | $ | 269,680 | $ | 25,400 | $ | (750 | ) | $ | (5,442 | ) | $ | (77,623 | ) | $ | 229,208 |
Nine Months Ended September 30, | |||||||
Cash Flows from Operating Activities: | 2017 | 2016 | |||||
Net Income | $ | 21,255 | $ | 19,934 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Provision for Loan Losses | 1,580 | 1,550 | |||||
Depreciation and Amortization | 4,247 | 4,605 | |||||
Allocation of ESOP Stock | — | 510 | |||||
Net Gains on the Sale of Securities Available-for-Sale | (10 | ) | (144 | ) | |||
Loans Originated and Held-for-Sale | (14,890 | ) | (20,025 | ) | |||
Proceeds from the Sale of Loans Held-for-Sale | 14,481 | 19,557 | |||||
Net Gains on the Sale of Loans | (431 | ) | (649 | ) | |||
Net Losses on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 197 | 120 | |||||
Contributions to Retirement Benefit Plans | (640 | ) | (534 | ) | |||
Deferred Income Tax Benefit | (20 | ) | (464 | ) | |||
Shares Issued Under the Directors’ Stock Plan | 126 | 112 | |||||
Stock-Based Compensation Expense | 261 | 215 | |||||
Tax Benefit from Exercise of Stock Options | 112 | — | |||||
Net Increase in Other Assets | (1,689 | ) | (3,045 | ) | |||
Net Increase in Other Liabilities | 1,819 | 3,427 | |||||
Net Cash Provided By Operating Activities | 26,398 | 25,169 | |||||
Cash Flows from Investing Activities: | |||||||
Proceeds from the Sale of Securities Available-for-Sale | 10,015 | 10,568 | |||||
Proceeds from the Maturities and Calls of Securities Available-for-Sale | 43,617 | 65,965 | |||||
Purchases of Securities Available-for-Sale | (22,503 | ) | (10,920 | ) | |||
Proceeds from the Maturities and Calls of Securities Held-to-Maturity | 39,062 | 42,295 | |||||
Purchases of Securities Held-to-Maturity | (36,018 | ) | (60,786 | ) | |||
Net Increase in Loans | (156,643 | ) | (133,616 | ) | |||
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 830 | 1,743 | |||||
Purchase of Premises and Equipment | (1,335 | ) | (1,083 | ) | |||
Proceeds from the Sale of a Subsidiary, Net | 72 | 72 | |||||
Net Decrease in Other Investments | 4,208 | 3,468 | |||||
Net Cash Used By Investing Activities | (118,695 | ) | (82,294 | ) | |||
Cash Flows from Financing Activities: | |||||||
Net Increase in Deposits | 190,570 | 182,764 | |||||
Net Increase (Decrease) in Short-Term Federal Home Loan Bank Borrowings | (90,000 | ) | (82,000 | ) | |||
Net Increase (Decrease) in Short-Term Borrowings | 25,583 | 15,416 | |||||
Purchase of Treasury Stock | (2,767 | ) | (1,826 | ) | |||
Stock Options Exercised, Net | 734 | 1,775 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 351 | 358 | |||||
Tax Benefit from Exercise of Stock Options | — | 63 | |||||
Shares Issued for Dividend Reinvestment Plans | 1,256 | 1,302 | |||||
Cash Dividends Paid | (10,119 | ) | (9,736 | ) | |||
Net Cash Provided By Financing Activities | 115,608 | 108,116 | |||||
Net Increase in Cash and Cash Equivalents | 23,311 | 50,991 | |||||
Cash and Cash Equivalents at Beginning of Period | 57,355 | 51,068 | |||||
Cash and Cash Equivalents at End of Period | $ | 80,666 | $ | 102,059 | |||
Supplemental Disclosures to Statements of Cash Flow Information: | |||||||
Interest on Deposits and Borrowings | $ | 5,168 | $ | 3,932 | |||
Income Taxes | 8,404 | 9,761 | |||||
Non-cash Investing and Financing Activity: | |||||||
Transfer of Loans to Other Real Estate Owned and Repossessed Assets | 1,055 | 856 |
Available-For-Sale Securities | ||||||||||||||||||||||||
U.S. Government & Agency Obligations | State and Municipal Obligations | Mortgage- Backed Securities - Residential | Corporate and Other Debt Securities | Mutual Funds and Equity Securities | Total Available- For-Sale Securities | |||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||
Available-For-Sale Securities, at Amortized Cost | $ | 146,976 | $ | 11,875 | $ | 152,858 | $ | 2,500 | $ | 1,120 | $ | 315,329 | ||||||||||||
Available-For-Sale Securities, at Fair Value | 146,978 | 11,902 | 152,806 | 2,299 | 1,474 | 315,459 | ||||||||||||||||||
Gross Unrealized Gains | 152 | 27 | 964 | — | 354 | 1,497 | ||||||||||||||||||
Gross Unrealized Losses | 150 | — | 1,016 | 201 | — | 1,367 | ||||||||||||||||||
Available-For-Sale Securities, Pledged as Collateral | 206,637 | |||||||||||||||||||||||
Maturities of Debt Securities, at Amortized Cost: | ||||||||||||||||||||||||
Within One Year | $ | — | $ | 9,068 | $ | 3,649 | $ | 1,500 | $ | 14,217 | ||||||||||||||
From 1 - 5 Years | 146,976 | 1,890 | 114,127 | — | 262,993 | |||||||||||||||||||
From 5 - 10 Years | — | 397 | 35,082 | — | 35,479 | |||||||||||||||||||
Over 10 Years | — | 520 | — | 1,000 | 1,520 | |||||||||||||||||||
Maturities of Debt Securities, at Fair Value: | ||||||||||||||||||||||||
Within One Year | $ | — | $ | 9,076 | $ | 3,691 | $ | 1,499 | $ | 14,266 | ||||||||||||||
From 1 - 5 Years | 146,978 | 1,910 | 114,202 | — | 263,090 | |||||||||||||||||||
From 5 - 10 Years | — | 396 | 34,913 | — | 35,309 | |||||||||||||||||||
Over 10 Years | — | 520 | — | 800 | 1,320 | |||||||||||||||||||
Securities in a Continuous Loss Position, at Fair Value: | ||||||||||||||||||||||||
Less than 12 Months | $ | 89,563 | $ | — | $ | 85,091 | $ | 500 | $ | — | $ | 175,154 | ||||||||||||
12 Months or Longer | — | — | — | 1,800 | — | 1,800 | ||||||||||||||||||
Total | $ | 89,563 | $ | — | $ | 85,091 | $ | 2,300 | $ | — | $ | 176,954 | ||||||||||||
Number of Securities in a Continuous Loss Position | 23 | — | 31 | 3 | — | 57 | ||||||||||||||||||
Unrealized Losses on Securities in a Continuous Loss Position: | ||||||||||||||||||||||||
Less than 12 Months | $ | 150 | $ | — | $ | 1,016 | $ | — | $ | — | $ | 1,166 | ||||||||||||
12 Months or Longer | — | — | — | 201 | — | 201 | ||||||||||||||||||
Total | $ | 150 | $ | — | $ | 1,016 | $ | 201 | $ | — | $ | 1,367 | ||||||||||||
Disaggregated Details: | ||||||||||||||||||||||||
US Treasury Obligations, at Amortized Cost | $ | 64,711 | ||||||||||||||||||||||
US Treasury Obligations, at Fair Value | 64,730 | |||||||||||||||||||||||
US Agency Obligations, at Amortized Cost | 82,265 | |||||||||||||||||||||||
US Agency Obligations, at Fair Value | 82,248 | |||||||||||||||||||||||
US Government Agency Securities, at Amortized Cost | $ | 503 | ||||||||||||||||||||||
US Government Agency Securities, at Fair Value | 505 | |||||||||||||||||||||||
Government Sponsored Entity Securities, at Amortized Cost | 152,355 | |||||||||||||||||||||||
Government Sponsored Entity Securities, at Fair Value | 152,301 | |||||||||||||||||||||||
Available-For-Sale Securities | ||||||||||||||||||||||||
U.S. Government & Agency Obligations | State and Municipal Obligations | Mortgage- Backed Securities - Residential | Corporate and Other Debt Securities | Mutual Funds and Equity Securities | Total Available- For-Sale Securities | |||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||
Available-For-Sale Securities, at Amortized Cost | $ | 147,110 | $ | 27,684 | $ | 168,189 | $ | 3,512 | $ | 1,120 | $ | 347,615 | ||||||||||||
Available-For-Sale Securities, at Fair Value | 147,377 | 27,690 | 167,239 | 3,308 | 1,382 | 346,996 | ||||||||||||||||||
Gross Unrealized Gains | 304 | 24 | 986 | — | 262 | 1,576 | ||||||||||||||||||
Gross Unrealized Losses | 37 | 18 | 1,936 | 204 | — | 2,195 | ||||||||||||||||||
Available-For-Sale Securities, Pledged as Collateral, at Fair Value | 262,852 | |||||||||||||||||||||||
Securities in a Continuous Loss Position, at Fair Value: | ||||||||||||||||||||||||
Less than 12 Months | $ | 70,605 | $ | 12,165 | $ | 126,825 | $ | 500 | $ | — | $ | 210,095 | ||||||||||||
12 Months or Longer | — | 7,377 | — | 2,809 | — | 10,186 | ||||||||||||||||||
Total | $ | 70,605 | $ | 19,542 | $ | 126,825 | $ | 3,309 | $ | — | $ | 220,281 | ||||||||||||
Number of Securities in a Continuous Loss Position | 19 | 84 | 40 | 4 | — | 147 | ||||||||||||||||||
Unrealized Losses on Securities in a Continuous Loss Position: | ||||||||||||||||||||||||
Less than 12 Months | $ | 37 | $ | 13 | $ | 1,936 | $ | 1 | $ | — | $ | 1,987 | ||||||||||||
12 Months or Longer | — | 5 | — | 203 | — | 208 | ||||||||||||||||||
Total | $ | 37 | $ | 18 | $ | 1,936 | $ | 204 | $ | — | $ | 2,195 | ||||||||||||
Disaggregated Details: | ||||||||||||||||||||||||
US Treasury Obligations, at Amortized Cost | $ | 54,701 | ||||||||||||||||||||||
US Treasury Obligations, at Fair Value | 54,706 | |||||||||||||||||||||||
US Agency Obligations, at Amortized Cost | 92,409 | |||||||||||||||||||||||
US Agency Obligations, at Fair Value | 92,671 | |||||||||||||||||||||||
US Government Agency Securities, at Amortized Cost | $ | 3,694 | ||||||||||||||||||||||
US Government Agency Securities, at Fair Value | 3,724 | |||||||||||||||||||||||
Government Sponsored Entity Securities, at Amortized Cost | 164,495 | |||||||||||||||||||||||
Government Sponsored Entity Securities, at Fair Value | 163,515 | |||||||||||||||||||||||
Available-For-Sale Securities | ||||||||||||||||||||||||
U.S. Government & Agency Obligations | State and Municipal Obligations | Mortgage- Backed Securities - Residential | Corporate and Other Debt Securities | Mutual Funds and Equity Securities | Total Available- For-Sale Securities | |||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||||||
Available-For-Sale Securities, at Amortized Cost | $ | 152,511 | $ | 31,562 | $ | 144,598 | $ | 4,500 | $ | 1,120 | $ | 334,291 | ||||||||||||
Available-For-Sale Securities, at Fair Value | 153,926 | 31,628 | 148,087 | 4,299 | 1,250 | 339,190 | ||||||||||||||||||
Gross Unrealized Gains | 1,415 | 69 | 3,489 | — | 130 | 5,103 | ||||||||||||||||||
Gross Unrealized Losses | — | 3 | — | 201 | — | 204 | ||||||||||||||||||
Available-For-Sale Securities, Pledged as Collateral | 277,832 | |||||||||||||||||||||||
Securities in a Continuous Loss Position, at Fair Value: | ||||||||||||||||||||||||
Less than 12 Months | $ | — | $ | 9,237 | $ | — | $ | 1,022 | $ | — | $ | 10,259 | ||||||||||||
12 Months or Longer | — | — | — | 1,800 | — | 1,800 | ||||||||||||||||||
Total | $ | — | $ | 9,237 | $ | — | $ | 2,822 | $ | — | $ | 12,059 | ||||||||||||
Number of Securities in a Continuous Loss Position | — | 1 | 2 | 3 | — | 6 | ||||||||||||||||||
Unrealized Losses on Securities in a Continuous Loss Position: | ||||||||||||||||||||||||
Less than 12 Months | $ | — | $ | 3 | $ | — | $ | 1 | $ | — | $ | 4 | ||||||||||||
12 Months or Longer | — | — | — | 200 | — | 200 | ||||||||||||||||||
Total | $ | — | $ | 3 | $ | — | $ | 201 | $ | — | $ | 204 | ||||||||||||
Disaggregated Details: | ||||||||||||||||||||||||
US Agency Obligations, at Amortized Cost | $ | 152,511 | ||||||||||||||||||||||
US Agency Obligations, at Fair Value | 153,926 | |||||||||||||||||||||||
US Government Agency Securities, at Amortized Cost | $ | 10,849 | ||||||||||||||||||||||
US Government Agency Securities, at Fair Value | 11,003 | |||||||||||||||||||||||
Government Sponsored Entity Securities, at Amortized Cost | 133,749 | |||||||||||||||||||||||
Government Sponsored Entity Securities, at Fair Value | 137,084 |
Held-To-Maturity Securities | ||||||||||||||||
State and Municipal Obligations | Mortgage- Backed Securities - Residential | Corporate and Other Debt Securities | Total Held-To Maturity Securities | |||||||||||||
September 30, 2017 | ||||||||||||||||
Held-To-Maturity Securities, at Amortized Cost | $ | 277,738 | $ | 63,788 | $ | — | $ | 341,526 | ||||||||
Held-To-Maturity Securities, at Fair Value | 279,384 | 64,515 | — | 343,899 | ||||||||||||
Gross Unrealized Gains | 2,977 | 738 | — | 3,715 | ||||||||||||
Gross Unrealized Losses | 1,331 | 11 | — | 1,342 | ||||||||||||
Held-To-Maturity Securities, Pledged as Collateral | 325,096 | |||||||||||||||
Maturities of Debt Securities, at Amortized Cost: | ||||||||||||||||
Within One Year | $ | 39,609 | $ | — | $ | — | $ | 39,609 | ||||||||
From 1 - 5 Years | 79,412 | 54,504 | — | 133,916 | ||||||||||||
From 5 - 10 Years | 154,981 | 9,284 | — | 164,265 | ||||||||||||
Over 10 Years | 3,736 | — | — | 3,736 | ||||||||||||
Maturities of Debt Securities, at Fair Value: | ||||||||||||||||
Within One Year | $ | 39,782 | $ | — | $ | — | $ | 39,782 | ||||||||
From 1 - 5 Years | 80,944 | 55,120 | — | 136,064 | ||||||||||||
From 5 - 10 Years | 154,892 | 9,395 | — | 164,287 | ||||||||||||
Over 10 Years | 3,766 | — | — | 3,766 | ||||||||||||
Securities in a Continuous Loss Position, at Fair Value: | ||||||||||||||||
Less than 12 Months | $ | 78,238 | $ | 3,544 | $ | — | $ | 81,782 | ||||||||
12 Months or Longer | 13,331 | — | — | 13,331 | ||||||||||||
Total | $ | 91,569 | $ | 3,544 | $ | — | $ | 95,113 | ||||||||
Number of Securities in a Continuous Loss Position | 252 | 7 | — | 259 | ||||||||||||
Unrealized Losses on Securities in a Continuous Loss Position: | ||||||||||||||||
Less than 12 Months | $ | 1,034 | $ | 11 | $ | — | $ | 1,045 | ||||||||
12 Months or Longer | 297 | — | — | 297 | ||||||||||||
Total | $ | 1,331 | $ | 11 | $ | — | $ | 1,342 | ||||||||
Disaggregated Details: | ||||||||||||||||
US Government Agency Securities, at Amortized Cost | $ | 2,792 | ||||||||||||||
US Government Agency Securities, at Fair Value | 2,799 | |||||||||||||||
Government Sponsored Entity Securities, at Amortized Cost | 60,996 | |||||||||||||||
Government Sponsored Entity Securities, at Fair Value | 61,716 | |||||||||||||||
Held-To-Maturity Securities | ||||||||||||||||
State and Municipal Obligations | Mortgage- Backed Securities - Residential | Corporate and Other Debt Securities | Total Held-To Maturity Securities | |||||||||||||
December 31, 2016 | ||||||||||||||||
Held-To-Maturity Securities, at Amortized Cost | $ | 268,892 | $ | 75,535 | $ | 1,000 | $ | 345,427 | ||||||||
Held-To-Maturity Securities, at Fair Value | 267,127 | 75,624 | 1,000 | 343,751 | ||||||||||||
Gross Unrealized Gains | 2,058 | 258 | — | 2,316 | ||||||||||||
Gross Unrealized Losses | 3,823 | 169 | — | 3,992 | ||||||||||||
Held-To-Maturity Securities, Pledged as Collateral | 321,202 | |||||||||||||||
Securities in a Continuous Loss Position, at Fair Value: | ||||||||||||||||
Less than 12 Months | $ | 107,255 | $ | 13,306 | $ | — | $ | 120,561 | ||||||||
12 Months or Longer | 12,363 | — | — | 12,363 | ||||||||||||
Total | $ | 119,618 | $ | 13,306 | $ | — | $ | 132,924 | ||||||||
Number of Securities in a Continuous Loss Position | 347 | 13 | — | 360 | ||||||||||||
Unrealized Losses on Securities in a Continuous Loss Position: | ||||||||||||||||
Less than 12 Months | $ | 3,129 | $ | 169 | $ | — | $ | 3,298 | ||||||||
12 Months or Longer | 694 | — | — | 694 | ||||||||||||
Total | $ | 3,823 | $ | 169 | $ | — | $ | 3,992 | ||||||||
Disaggregated Details: | ||||||||||||||||
US Government Agency Securities, at Amortized Cost | $ | 3,206 | ||||||||||||||
US Government Agency Securities, at Fair Value | 3,222 | |||||||||||||||
Government Sponsored Entity Securities, at Amortized Cost | 72,329 | |||||||||||||||
Government Sponsored Entity Securities, at Fair Value | 72,402 | |||||||||||||||
September 30, 2016 | ||||||||||||||||
Held-To-Maturity Securities, at Amortized Cost | $ | 257,255 | $ | 79,983 | $ | 1,000 | $ | 338,238 | ||||||||
Held-To-Maturity Securities, at Fair Value | 263,897 | 82,544 | 1,000 | 347,441 | ||||||||||||
Gross Unrealized Gains | 6,712 | 2,561 | — | 9,273 | ||||||||||||
Gross Unrealized Losses | 70 | — | — | 70 | ||||||||||||
Held-To-Maturity Securities, Pledged as Collateral | 320.774 | |||||||||||||||
Securities in a Continuous Loss Position, at Fair Value: | ||||||||||||||||
Less than 12 Months | $ | 11,891 | $ | — | $ | — | $ | 11,891 | ||||||||
12 Months or Longer | 1,172 | — | — | 1,172 | ||||||||||||
Total | $ | 13,063 | $ | — | $ | — | $ | 13,063 | ||||||||
Number of Securities in a Continuous Loss Position | 3 | — | — | 3 | ||||||||||||
Unrealized Losses on Securities in a Continuous Loss Position: | ||||||||||||||||
Less than 12 Months | $ | 68 | $ | — | $ | — | $ | 68 | ||||||||
12 Months or Longer | 2 | — | — | 2 | ||||||||||||
Total | $ | 70 | $ | — | $ | — | $ | 70 | ||||||||
Held-To-Maturity Securities | ||||||||||||||||
State and Municipal Obligations | Mortgage- Backed Securities - Residential | Corporate and Other Debt Securities | Total Held-To Maturity Securities | |||||||||||||
September 30, 2016 | ||||||||||||||||
Disaggregated Details: | ||||||||||||||||
US Government Agency Securities, at Amortized Cost | $ | 3,497 | ||||||||||||||
US Government Agency Securities, at Fair Value | 3,622 | |||||||||||||||
Government Sponsored Entity Securities, at Amortized Cost | 76,486 | |||||||||||||||
Government Sponsored Entity Securities, at Fair Value | 78,922 |
Commercial | |||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||
September 30, 2017 | |||||||||||||||||||
Loans Past Due 30-59 Days | $ | 122 | $ | 442 | $ | 4,781 | $ | 1,675 | $ | 7,020 | |||||||||
Loans Past Due 60-89 Days | — | — | 914 | 77 | 991 | ||||||||||||||
Loans Past Due 90 or more Days | 102 | 807 | 291 | 1,742 | 2,942 | ||||||||||||||
Total Loans Past Due | 224 | 1,249 | 5,986 | 3,494 | 10,953 | ||||||||||||||
Current Loans | 125,136 | 439,467 | 586,043 | 747,200 | 1,897,846 | ||||||||||||||
Total Loans | $ | 125,360 | $ | 440,716 | $ | 592,029 | $ | 750,694 | $ | 1,908,799 | |||||||||
Loans 90 or More Days Past Due and Still Accruing Interest | $ | — | $ | — | $ | 41 | $ | 926 | $ | 967 | |||||||||
Nonaccrual Loans | 609 | 1,249 | 507 | 3,117 | 5,482 | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Loans Past Due 30-59 Days | $ | 112 | $ | 121 | $ | 5,593 | $ | 2,368 | $ | 8,194 | |||||||||
Loans Past Due 60-89 Days | 29 | — | 898 | 142 | 1,069 | ||||||||||||||
Loans Past Due 90 or more Days | 148 | — | 513 | 1,975 | 2,636 | ||||||||||||||
Total Loans Past Due | 289 | 121 | 7,004 | 4,485 | 11,899 | ||||||||||||||
Current Loans | 104,866 | 431,525 | 530,357 | 674,621 | 1,741,369 | ||||||||||||||
Total Loans | $ | 105,155 | $ | 431,646 | $ | 537,361 | $ | 679,106 | $ | 1,753,268 | |||||||||
Loans 90 or More Days Past Due and Still Accruing Interest | $ | — | $ | — | $ | 158 | $ | 1,043 | $ | 1,201 | |||||||||
Nonaccrual Loans | $ | 155 | $ | 875 | $ | 589 | $ | 2,574 | 4,193 | ||||||||||
September 30, 2016 | |||||||||||||||||||
Loans Past Due 30-59 Days | $ | 38 | $ | — | $ | 3,793 | $ | 271 | $ | 4,102 | |||||||||
Loans Past Due 60-89 Days | 67 | — | 1,412 | 1,450 | 2,929 | ||||||||||||||
Loans Past Due 90 or more Days | 160 | 1,106 | 343 | 1,467 | 3,076 | ||||||||||||||
Total Loans Past Due | 265 | 1,106 | 5,548 | 3,188 | 10,107 | ||||||||||||||
Current Loans | 102,789 | 427,905 | 518,155 | 648,260 | 1,697,109 | ||||||||||||||
Total Loans | $ | 103,054 | $ | 429,011 | $ | 523,703 | $ | 651,448 | $ | 1,707,216 | |||||||||
Loans 90 or More Days Past Due and Still Accruing Interest | $ | — | $ | — | $ | — | $ | 548 | $ | 548 | |||||||||
Nonaccrual Loans | $ | 160 | $ | 3,689 | $ | 532 | $ | 1,726 | 6,107 |
Allowance for Loan Losses | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||
Roll-forward of the Allowance for Loan Losses for the Quarterly Periods: | |||||||||||||||||||||||
June 30, 2017 | $ | 925 | $ | 4,983 | $ | 7,305 | $ | 4,229 | $ | — | $ | 17,442 | |||||||||||
Charge-offs | — | (342 | ) | (280 | ) | — | — | (622 | ) | ||||||||||||||
Recoveries | 1 | — | 74 | — | — | 75 | |||||||||||||||||
Provision | (46 | ) | 446 | 509 | (109 | ) | — | 800 | |||||||||||||||
September 30, 2017 | $ | 880 | $ | 5,087 | $ | 7,608 | $ | 4,120 | $ | — | $ | 17,695 | |||||||||||
June 30, 2016 | $ | 1,128 | $ | 5,816 | $ | 5,742 | $ | 4,026 | $ | 86 | $ | 16,798 | |||||||||||
Charge-offs | (34 | ) | — | (243 | ) | (90 | ) | — | (367 | ) | |||||||||||||
Recoveries | 5 | — | 59 | — | — | 64 | |||||||||||||||||
Provision | (76 | ) | (75 | ) | 513 | 166 | (48 | ) | 480 | ||||||||||||||
September 30, 2016 | $ | 1,023 | $ | 5,741 | $ | 6,071 | $ | 4,102 | $ | 38 | $ | 16,975 | |||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||
Roll-forward of the Allowance for Loan Losses for the Year-to-Date Periods: | |||||||||||||||||||||||
December 31, 2016 | $ | 1,017 | $ | 5,677 | $ | 6,120 | $ | 4,198 | $ | — | $ | 17,012 | |||||||||||
Charge-offs | (2 | ) | (342 | ) | (847 | ) | (6 | ) | — | (1,197 | ) | ||||||||||||
Recoveries | 8 | — | 292 | — | — | 300 | |||||||||||||||||
Provision | (143 | ) | (248 | ) | 2,043 | (72 | ) | — | 1,580 | ||||||||||||||
September 30, 2017 | $ | 880 | $ | 5,087 | $ | 7,608 | $ | 4,120 | $ | — | $ | 17,695 | |||||||||||
December 31, 2015 | $ | 1,827 | $ | 4,520 | $ | 5,554 | $ | 3,790 | $ | 347 | $ | 16,038 | |||||||||||
Charge-offs | (86 | ) | — | (591 | ) | (107 | ) | — | (784 | ) | |||||||||||||
Recoveries | 20 | — | 150 | 1 | — | 171 | |||||||||||||||||
Provision | (738 | ) | 1,221 | 958 | 418 | (309 | ) | 1,550 | |||||||||||||||
September 30, 2016 | $ | 1,023 | $ | 5,741 | $ | 6,071 | $ | 4,102 | $ | 38 | $ | 16,975 | |||||||||||
September 30, 2017 | |||||||||||||||||||||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | $ | 104 | $ | — | $ | — | $ | 34 | $ | — | $ | 138 | |||||||||||
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 776 | 5,087 | 7,608 | 4,086 | — | 17,557 | |||||||||||||||||
Ending Loan Balance - Individually Evaluated for Impairment | 489 | 1,543 | 104 | 1,139 | — | 3,275 | |||||||||||||||||
Ending Loan Balance - Collectively Evaluated for Impairment | $ | 124,871 | $ | 439,172 | $ | 591,925 | $ | 749,556 | $ | — | $ | 1,905,524 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 1,017 | 5,677 | 6,120 | 4,198 | — | 17,012 | |||||||||||||||||
Ending Loan Balance - Individually Evaluated for Impairment | — | 890 | 91 | 1,098 | — | 2,079 | |||||||||||||||||
Ending Loan Balance - Collectively Evaluated for Impairment | $ | 105,155 | $ | 430,756 | $ | 537,270 | $ | 678,008 | $ | — | $ | 1,751,189 | |||||||||||
September 30, 2016 | |||||||||||||||||||||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | $ | — | $ | 240 | $ | — | $ | — | $ | — | $ | 240 | |||||||||||
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 1,023 | 5,501 | 6,071 | 4,102 | 38 | 16,735 | |||||||||||||||||
Ending Loan Balance - Individually Evaluated for Impairment | — | 3,538 | 90 | 317 | — | 3,945 | |||||||||||||||||
Ending Loan Balance - Collectively Evaluated for Impairment | $ | 103,054 | $ | 425,473 | $ | 523,613 | $ | 651,131 | $ | — | $ | 1,703,271 |
• | Changes in the volume and severity of past due, nonaccrual and adversely classified loans |
• | Changes in the nature and volume of the portfolio and in the terms of loans |
• | Changes in the value of the underlying collateral for collateral dependent loans |
• | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses |
• | Changes in the quality of the loan review system |
• | Changes in the experience, ability, and depth of lending management and other relevant staff |
• | Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio |
• | The existence and effect of any concentrations of credit, and changes in the level of such concentrations |
• | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio or pool |
Loan Credit Quality Indicators | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||
September 30, 2017 | |||||||||||||||||||
Credit Risk Profile by Creditworthiness Category: | |||||||||||||||||||
Satisfactory | $ | 120,622 | $ | 411,685 | $ | — | $ | — | $ | 532,307 | |||||||||
Special Mention | 1,394 | 1,401 | — | — | 2,795 | ||||||||||||||
Substandard | 3,344 | 26,822 | — | — | 30,166 | ||||||||||||||
Doubtful | — | 807 | — | — | 807 | ||||||||||||||
Credit Risk Profile Based on Payment Activity: | |||||||||||||||||||
Performing | $ | — | $ | — | $ | 591,499 | $ | 746,652 | $ | 1,338,151 | |||||||||
Nonperforming | — | — | 530 | 4,043 | 4,573 | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Credit Risk Profile by Creditworthiness Category: | |||||||||||||||||||
Satisfactory | $ | 95,722 | $ | 396,907 | $ | — | $ | — | $ | 492,629 | |||||||||
Special Mention | 1,359 | 7,008 | — | — | 8,367 | ||||||||||||||
Substandard | 8,074 | 27,731 | — | — | 35,805 | ||||||||||||||
Doubtful | — | — | — | — | — | ||||||||||||||
Credit Risk Profile Based on Payment Activity: | |||||||||||||||||||
Performing | $ | — | $ | — | $ | 536,614 | $ | 675,489 | $ | 1,212,103 | |||||||||
Nonperforming | — | — | 747 | 3,617 | 4,364 | ||||||||||||||
September 30, 2016 | |||||||||||||||||||
Credit Risk Profile by Creditworthiness Category: | |||||||||||||||||||
Satisfactory | $ | 93,903 | $ | 392,697 | $ | — | $ | — | $ | 486,600 | |||||||||
Special Mention | 1,274 | 10,472 | — | — | 11,746 | ||||||||||||||
Substandard | 7,877 | 25,842 | — | — | 33,719 | ||||||||||||||
Doubtful | — | — | — | — | — | ||||||||||||||
Credit Risk Profile Based on Payment Activity: | |||||||||||||||||||
Performing | $ | — | $ | — | $ | 523,171 | $ | 649,093 | $ | 1,172,264 | |||||||||
Nonperforming | — | — | 532 | 2,355 | 2,887 |
Impaired Loans | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||
September 30, 2017 | |||||||||||||||||||
Recorded Investment: | |||||||||||||||||||
With No Related Allowance | $ | — | $ | 818 | $ | 104 | $ | 851 | $ | 1,773 | |||||||||
With a Related Allowance | 489 | 725 | — | 288 | 1,502 | ||||||||||||||
Unpaid Principal Balance: | |||||||||||||||||||
With No Related Allowance | — | 818 | 90 | 850 | 1,758 | ||||||||||||||
With a Related Allowance | 489 | 723 | — | 288 | 1,500 | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Recorded Investment: | |||||||||||||||||||
With No Related Allowance | $ | — | $ | 890 | $ | 91 | $ | 1,098 | $ | 2,079 | |||||||||
With a Related Allowance | — | — | — | — | — | ||||||||||||||
Unpaid Principal Balance: | |||||||||||||||||||
With No Related Allowance | — | 890 | 91 | 1,098 | 2,079 | ||||||||||||||
With a Related Allowance | — | — | — | — | — | ||||||||||||||
September 30, 2016 | |||||||||||||||||||
Recorded Investment: | |||||||||||||||||||
With No Related Allowance | $ | — | $ | 898 | $ | 90 | $ | 317 | $ | 1,305 | |||||||||
With a Related Allowance | — | 2,640 | — | — | 2,640 | ||||||||||||||
Unpaid Principal Balance: | |||||||||||||||||||
With No Related Allowance | — | 898 | 90 | 317 | $ | 1,305 | |||||||||||||
With a Related Allowance | — | 2,640 | — | — | 2,640 | ||||||||||||||
For the Quarter Ended: | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Average Recorded Balance: | |||||||||||||||||||
With No Related Allowance | $ | — | $ | 998 | $ | 96 | $ | 827 | $ | 1,921 | |||||||||
With a Related Allowance | 496 | 363 | — | 288 | 1,147 | ||||||||||||||
Interest Income Recognized: | |||||||||||||||||||
With No Related Allowance | — | — | 1 | — | 1 | ||||||||||||||
With a Related Allowance | — | — | — | — | — | ||||||||||||||
Cash Basis Income: | |||||||||||||||||||
With No Related Allowance | — | — | — | — | — | ||||||||||||||
With a Related Allowance | — | — | — | — | — | ||||||||||||||
September 30, 2016 | |||||||||||||||||||
Average Recorded Balance: | |||||||||||||||||||
With No Related Allowance | $ | — | $ | 1,374 | $ | 92 | $ | 479 | $ | 1,945 | |||||||||
With a Related Allowance | — | 2,166 | — | — | 2,166 | ||||||||||||||
Interest Income Recognized: | |||||||||||||||||||
With No Related Allowance | — | 3 | 2 | — | 5 | ||||||||||||||
With a Related Allowance | — | — | — | — | — | ||||||||||||||
Cash Basis Income: | |||||||||||||||||||
With No Related Allowance | — | — | — | — | — | ||||||||||||||
With a Related Allowance | — | — | — | — | — |
Impaired Loans | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||
For the Year-To-Date Period Ended: | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Average Recorded Balance: | |||||||||||||||||||
With No Related Allowance | $ | — | $ | 854 | $ | 98 | $ | 975 | $ | 1,927 | |||||||||
With a Related Allowance | 245 | 363 | — | 144 | 752 | ||||||||||||||
Interest Income Recognized: | |||||||||||||||||||
With No Related Allowance | — | — | 3 | — | 3 | ||||||||||||||
With a Related Allowance | — | — | — | 4 | 4 | ||||||||||||||
Cash Basis Income: | |||||||||||||||||||
With No Related Allowance | — | — | — | — | — | ||||||||||||||
With a Related Allowance | — | — | — | — | — | ||||||||||||||
September 30, 2016 | |||||||||||||||||||
Average Recorded Balance: | |||||||||||||||||||
With No Related Allowance | $ | 78 | $ | 1,635 | $ | 102 | $ | 481 | $ | 2,296 | |||||||||
With a Related Allowance | — | 1,320 | — | — | 1,320 | ||||||||||||||
Interest Income Recognized: | |||||||||||||||||||
With No Related Allowance | — | 14 | 4 | — | 18 | ||||||||||||||
With a Related Allowance | — | — | — | — | — | ||||||||||||||
Cash Basis Income: | |||||||||||||||||||
With No Related Allowance | — | — | — | — | — | ||||||||||||||
With a Related Allowance | — | — | — | — | — |
Loans Modified in Trouble Debt Restructurings During the Period | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||
For the Quarter Ended: | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Number of Loans | 1 | — | 2 | — | 3 | ||||||||||||||
Pre-Modification Outstanding Recorded Investment | $ | 725 | $ | — | $ | 25 | $ | — | $ | 750 | |||||||||
Post-Modification Outstanding Recorded Investment | 725 | — | 25 | — | 750 | ||||||||||||||
Subsequent Default, Number of Contracts | — | — | — | — | — | ||||||||||||||
Subsequent Default, Recorded Investment | — | — | — | — | — | ||||||||||||||
September 30, 2016 | |||||||||||||||||||
Number of Loans | — | — | 1 | — | 1 | ||||||||||||||
Pre-Modification Outstanding Recorded Investment | $ | — | $ | — | $ | 15 | $ | — | $ | 15 | |||||||||
Post-Modification Outstanding Recorded Investment | — | — | 15 | — | 15 | ||||||||||||||
Subsequent Default, Number of Contracts | — | — | — | — | — | ||||||||||||||
Subsequent Default, Recorded Investment | — | — | — | — | — | ||||||||||||||
For the Year-To-Date Period Ended: | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Number of Loans | 2 | — | 6 | — | 8 | ||||||||||||||
Pre-Modification Outstanding Recorded Investment | $ | 1,228 | $ | — | $ | 51 | $ | — | $ | 1,279 | |||||||||
Post-Modification Outstanding Recorded Investment | 1,228 | — | 51 | — | 1,279 | ||||||||||||||
Subsequent Default, Number of Contracts | — | — | — | — | — | ||||||||||||||
Subsequent Default, Recorded Investment | — | — | — | — | — | ||||||||||||||
September 30, 2016 | |||||||||||||||||||
Number of Loans | — | — | 2 | — | 2 | ||||||||||||||
Pre-Modification Outstanding Recorded Investment | $ | — | $ | — | $ | 23 | $ | — | $ | 23 | |||||||||
Post-Modification Outstanding Recorded Investment | — | — | 23 | — | 23 | ||||||||||||||
Subsequent Default, Number of Contracts | — | — | — | — | — | ||||||||||||||
Subsequent Default, Recorded Investment | — | — | — | — | — |
Commitments to Extend Credit and Letters of Credit | |||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2016 | |||||||||
Notional Amount: | |||||||||||
Commitments to Extend Credit | $ | 316,449 | $ | 296,442 | $ | 300,439 | |||||
Standby Letters of Credit | 3,672 | 3,445 | 3,483 | ||||||||
Fair Value: | |||||||||||
Commitments to Extend Credit | $ | — | $ | — | $ | — | |||||
Standby Letters of Credit | 18 | 30 | 31 |
Schedule of Comprehensive Income | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Tax | Tax | ||||||||||||||||||||||
Before-Tax | (Expense) | Net-of-Tax | Before-Tax | (Expense) | Net-of-Tax | ||||||||||||||||||
Amount | Benefit | Amount | Amount | Benefit | Amount | ||||||||||||||||||
2017 | |||||||||||||||||||||||
Net Unrealized Securities Holding (Losses) Gains Arising During the Period | 6 | $ | 3 | 9 | 749 | $ | (284 | ) | 465 | ||||||||||||||
Reclassification Adjustment for Securities Gains Included in Net Income | (10 | ) | 4 | (6 | ) | (10 | ) | 4 | (6 | ) | |||||||||||||
Amortization of Net Retirement Plan Actuarial Loss | 179 | (115 | ) | 64 | 537 | (292 | ) | 245 | |||||||||||||||
Accretion of Net Retirement Plan Prior Service Credit | (3 | ) | 1 | (2 | ) | (8 | ) | 3 | (5 | ) | |||||||||||||
Other Comprehensive Income (Loss) | $ | 172 | $ | (107 | ) | $ | 65 | $ | 1,268 | $ | (569 | ) | $ | 699 | |||||||||
2016 | |||||||||||||||||||||||
Net Unrealized Securities Holding Gains (Losses) Arising During the Period | (1,264 | ) | $ | 454 | (810 | ) | 3,868 | $ | (1,559 | ) | 2,309 | ||||||||||||
Reclassification Adjustment for Securities Gains Included in Net Income | — | — | — | (144 | ) | 56 | (88 | ) | |||||||||||||||
Amortization of Net Retirement Plan Actuarial Loss | 181 | (70 | ) | 111 | 503 | (189 | ) | 314 | |||||||||||||||
Accretion of Net Retirement Plan Prior Service Credit | (3 | ) | 2 | (1 | ) | (7 | ) | 2 | (5 | ) | |||||||||||||
Other Comprehensive Income (Loss) | $ | (1,086 | ) | $ | 386 | $ | (700 | ) | $ | 4,220 | $ | (1,690 | ) | $ | 2,530 |
Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) | |||||||||||||||
Unrealized | Defined Benefit Plan Items | ||||||||||||||
Gains and | |||||||||||||||
Losses on | Net Prior | ||||||||||||||
Available-for- | Net Gain | Service | |||||||||||||
Sale Securities | (Loss) | (Cost ) Credit | Total | ||||||||||||
For the Quarter-To-Date periods ended: | |||||||||||||||
June 30, 2017 | $ | 74 | $ | (5,556 | ) | $ | (718 | ) | $ | (6,200 | ) | ||||
Other comprehensive income or loss before reclassifications | 9 | — | — | 9 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (6 | ) | 64 | (2 | ) | 56 | |||||||||
Net current-period other comprehensive income | 3 | 64 | (2 | ) | 65 | ||||||||||
September 30, 2017 | $ | 77 | $ | (5,492 | ) | $ | (720 | ) | $ | (6,135 | ) | ||||
June 30, 2016 | $ | 3,660 | $ | (7,690 | ) | $ | (712 | ) | $ | (4,742 | ) | ||||
Other comprehensive income or loss before reclassifications | (810 | ) | — | — | (810 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | 111 | (1 | ) | 110 | ||||||||||
Net current-period other comprehensive income | (810 | ) | 111 | (1 | ) | (700 | ) | ||||||||
September 30, 2016 | $ | 2,850 | $ | (7,579 | ) | $ | (713 | ) | $ | (5,442 | ) | ||||
For the Year-To-Date periods ended: | |||||||||||||||
December 31, 2016 | $ | (382 | ) | $ | (5,737 | ) | $ | (715 | ) | $ | (6,834 | ) | |||
Other comprehensive income or loss before reclassifications | 465 | — | — | 465 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (6 | ) | 245 | (5 | ) | 234 | |||||||||
Net current-period other comprehensive income | 459 | 245 | (5 | ) | 699 | ||||||||||
September 30, 2017 | $ | 77 | $ | (5,492 | ) | $ | (720 | ) | $ | (6,135 | ) | ||||
December 31, 2015 | $ | 629 | $ | (7,893 | ) | $ | (708 | ) | $ | (7,972 | ) | ||||
Other comprehensive income or loss before reclassifications | 2,309 | — | — | 2,309 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (88 | ) | 314 | (5 | ) | 221 | |||||||||
Net current-period other comprehensive income | 2,221 | 314 | (5 | ) | 2,530 | ||||||||||
September 30, 2016 | $ | 2,850 | $ | (7,579 | ) | $ | (713 | ) | $ | (5,442 | ) | ||||
Reclassifications Out of Accumulated Other Comprehensive Income (1) | ||||||
Amounts Reclassified | ||||||
Details about Accumulated Other | from Accumulated Other | Affected Line Item in the Statement | ||||
Comprehensive Income (Loss) Components | Comprehensive Income | Where Net Income Is Presented | ||||
For the Quarter-to-date periods ended: | ||||||
September 30, 2017 | ||||||
Unrealized gains and losses on available-for-sale securities | $ | 10 | Gain on Securities Transactions | |||
10 | Total before Tax | |||||
(4 | ) | Provision for Income Taxes | ||||
$ | 6 | Net of Tax | ||||
Amortization of defined benefit pension items: | ||||||
Prior-service costs | $ | 3 | (2) | Salaries and Employee Benefits | ||
Actuarial gains/(losses) | (179 | ) | (2) | Salaries and Employee Benefits | ||
(176 | ) | Total before Tax | ||||
114 | Provision for Income Taxes | |||||
$ | (62 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (56 | ) | Net of Tax | ||
September 30, 2016 | ||||||
Unrealized gains and losses on available-for-sale securities | $ | — | Gain on Securities Transactions | |||
— | Total before Tax | |||||
— | Provision for Income Taxes | |||||
$ | — | Net of Tax | ||||
Amortization of defined benefit pension items: | ||||||
Prior-service costs | $ | 3 | (2) | Salaries and Employee Benefits | ||
Actuarial gains/(losses) | (181 | ) | (2) | Salaries and Employee Benefits | ||
(178 | ) | Total before Tax | ||||
68 | Provision for Income Taxes | |||||
$ | (110 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (110 | ) | Net of Tax | ||
For the Year-to-date periods ended: | ||||||
September 30, 2017 | ||||||
Unrealized gains and losses on available-for-sale securities | $ | 10 | Gain on Securities Transactions | |||
10 | Total before Tax | |||||
(4 | ) | Provision for Income Taxes | ||||
$ | 6 | Net of Tax | ||||
Amortization of defined benefit pension items: | ||||||
Prior-service costs | $ | 8 | (2) | Salaries and Employee Benefits | ||
Actuarial gains/(losses) | (537 | ) | (2) | Salaries and Employee Benefits | ||
(529 | ) | Total before Tax | ||||
289 | Provision for Income Taxes | |||||
$ | (240 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (234 | ) | Net of Tax |
Reclassifications Out of Accumulated Other Comprehensive Income (1) | ||||||
Amounts Reclassified | ||||||
Details about Accumulated Other | from Accumulated Other | Affected Line Item in the Statement | ||||
Comprehensive Income (Loss) Components | Comprehensive Income | Where Net Income Is Presented | ||||
September 30, 2016 | ||||||
Unrealized gains and losses on available-for-sale securities | $ | 144 | Gain on Securities Transactions | |||
144 | Total before Tax | |||||
(56 | ) | Provision for Income Taxes | ||||
$ | 88 | Net of Tax | ||||
Amortization of defined benefit pension items: | ||||||
Prior-service costs | 7 | (2) | Salaries and Employee Benefits | |||
Actuarial gains/(losses) | $ | (503 | ) | (2) | Salaries and Employee Benefits | |
(496 | ) | Total before Tax | ||||
187 | Provision for Income Taxes | |||||
$ | (309 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (221 | ) | Net of Tax | ||
Schedule of Share-based Compensation Arrangements | |||
Stock Option Plans | |||
Roll-Forward of Shares Outstanding: | |||
Outstanding at January 1, 2017 | 366,329 | ||
Granted | 55,621 | ||
Exercised | (35,937 | ) | |
Forfeited | — | ||
Outstanding at September 30, 2017 | 386,013 | ||
Exercisable at Period-End | 242,706 | ||
Vested and Expected to Vest | 143,307 | ||
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: | |||
Outstanding at January 1, 2017 | $ | 21.86 | |
Granted | 36.12 | ||
Exercised | 20.46 | ||
Forfeited | — | ||
Outstanding at September 30, 2017 | 24.05 | ||
Exercisable at Period-End | 21.34 | ||
Vested and Expected to Vest | 28.62 | ||
Grants Issued During 2017 - Weighted Average Information: | |||
Fair Value | $ | 6.25 | |
Fair Value Assumptions: | |||
Dividend Yield | 2.72 | % | |
Expected Volatility | 21.40 | % | |
Risk Free Interest Rate | 2.25 | % | |
Expected Lives (in years) | 6.88 |
Share-Based Compensation Expense | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Share-Based Compensation Expense | $ | 90 | $ | 71 | $ | 262 | $ | 215 |
Select | ||||||||||||
Employees' | Executive | Postretirement | ||||||||||
Pension | Retirement | Benefit | ||||||||||
Plan | Plan | Plans | ||||||||||
Net Periodic Benefit Cost | ||||||||||||
For the Three Months Ended September 30, 2017: | ||||||||||||
Service Cost | $ | 350 | $ | 10 | $ | 37 | ||||||
Interest Cost | 362 | 55 | 75 | |||||||||
Expected Return on Plan Assets | (800 | ) | — | — | ||||||||
Amortization of Prior Service (Credit) Cost | (14 | ) | 14 | (3 | ) | |||||||
Amortization of Net Loss | 148 | 31 | — | |||||||||
Net Periodic Benefit Cost | $ | 46 | $ | 110 | $ | 109 | ||||||
Plan Contributions During the Period | $ | — | $ | 116 | $ | 65 | ||||||
For the Three Months Ended September 30, 2016: | ||||||||||||
Service Cost | $ | 376 | $ | 8 | $ | 63 | ||||||
Interest Cost | 420 | 56 | 83 | |||||||||
Expected Return on Plan Assets | (828 | ) | — | — | ||||||||
Amortization of Prior Service (Credit) Cost | (14 | ) | 14 | (3 | ) | |||||||
Amortization of Net Loss | 140 | 28 | — | |||||||||
Net Periodic Benefit Cost | $ | 94 | $ | 106 | $ | 143 | ||||||
Plan Contributions During the Period | $ | — | $ | 131 | $ | 47 | ||||||
Net Periodic Benefit Cost | ||||||||||||
For the Nine Months Ended September 30, 2017: | ||||||||||||
Service Cost | $ | 1,050 | $ | 30 | $ | 110 | ||||||
Interest Cost | 1,085 | 164 | 224 | |||||||||
Expected Return on Plan Assets | (2,399 | ) | — | — | ||||||||
Amortization of Prior Service Cost (Credit) | (43 | ) | 43 | (8 | ) | |||||||
Amortization of Net Loss | 443 | 94 | — | |||||||||
Net Periodic Benefit Cost | $ | 136 | $ | 331 | $ | 326 | ||||||
Plan Contributions During the Period | $ | — | $ | 345 | $ | 295 | ||||||
Estimated Future Contributions in the Current Fiscal Year | $ | — | $ | 115 | $ | 98 | ||||||
For the Nine Months Ended September 30, 2016: | ||||||||||||
Service Cost | $ | 1,127 | $ | 24 | $ | 188 | ||||||
Interest Cost | 1,262 | 163 | 178 | |||||||||
Expected Return on Plan Assets | (2,483 | ) | — | — | ||||||||
Amortization of Prior Service (Credit) Cost | (42 | ) | 43 | (8 | ) | |||||||
Amortization of Net Loss | 419 | 84 | — | |||||||||
Net Periodic Benefit Cost | $ | 283 | $ | 314 | $ | 358 | ||||||
Plan Contributions During the Period | $ | — | $ | 350 | $ | 197 |
Earnings Per Share | |||||||||||||||
Quarterly Period Ended: | Year-to-Date Period Ended: | ||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||
Earnings Per Share - Basic: | |||||||||||||||
Net Income | $ | 7,416 | $ | 6,738 | $ | 21,255 | $ | 19,934 | |||||||
Weighted Average Shares - Basic | 13,889 | 13,810 | 13,889 | 13,775 | |||||||||||
Earnings Per Share - Basic | $ | 0.53 | $ | 0.49 | $ | 1.53 | $ | 1.45 | |||||||
Earnings Per Share - Diluted: | |||||||||||||||
Net Income | $ | 7,416 | $ | 6,738 | $ | 21,255 | $ | 19,934 | |||||||
Weighted Average Shares - Basic | 13,889 | 13,810 | 13,889 | 13,775 | |||||||||||
Dilutive Average Shares Attributable to Stock Options | 77 | 91 | 92 | 67 | |||||||||||
Weighted Average Shares - Diluted | 13,966 | 13,901 | 13,981 | 13,842 | |||||||||||
Earnings Per Share - Diluted | $ | 0.53 | $ | 0.48 | $ | 1.52 | $ | 1.44 |
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis | |||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||
Fair Value | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | |||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis: | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Securities Available-for Sale: | |||||||||||||||||||
U.S. Government & Agency Obligations | $ | 146,978 | $ | 64,730 | $ | 82,248 | $ | — | |||||||||||
State and Municipal Obligations | 11,902 | — | 11,902 | — | |||||||||||||||
Mortgage-Backed Securities - Residential | 152,806 | — | 152,806 | — | |||||||||||||||
Corporate and Other Debt Securities | 2,299 | — | 2,299 | — | |||||||||||||||
Mutual Funds and Equity Securities | 1,474 | — | 1,474 | — | |||||||||||||||
Total Securities Available-for-Sale | $ | 315,459 | $ | 64,730 | $ | 250,729 | $ | — | |||||||||||
December 31, 2016 | |||||||||||||||||||
Securities Available-for Sale: | |||||||||||||||||||
U.S. Government & Agency Obligations | $ | 147,377 | $ | 54,706 | $ | 92,671 | $ | — | |||||||||||
State and Municipal Obligations | 27,690 | — | 27,690 | — | |||||||||||||||
Mortgage-Backed Securities - Residential | 167,239 | — | 167,239 | — | |||||||||||||||
Corporate and Other Debt Securities | 3,308 | — | 3,308 | — | |||||||||||||||
Mutual Funds and Equity Securities | 1,382 | — | 1,382 | — | |||||||||||||||
Total Securities Available-for Sale | $ | 346,996 | $ | 54,706 | $ | 292,290 | $ | — | |||||||||||
September 30, 2016 | |||||||||||||||||||
Securities Available-for Sale: | |||||||||||||||||||
U.S. Government & Agency Obligations | $ | 153,926 | $ | — | $ | 153,926 | $ | — | |||||||||||
State and Municipal Obligations | 31,628 | — | 31,628 | — | |||||||||||||||
Mortgage-Backed Securities - Residential | 148,087 | — | 148,087 | — | |||||||||||||||
Corporate and Other Debt Securities | 4,299 | — | 4,299 | — | |||||||||||||||
Mutual Funds and Equity Securities | 1,250 | — | 1,250 | — | |||||||||||||||
Total Securities Available-for Sale | $ | 339,190 | $ | — | $ | 339,190 | $ | — | |||||||||||
Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Collateral Dependent Impaired Loans | $ | 1,502 | $ | — | $ | — | $ | 1,502 | $ | (138 | ) | ||||||||
Other Real Estate Owned and Repossessed Assets, Net | 1,713 | — | — | 1,713 | (655 | ) | |||||||||||||
December 31, 2016 | |||||||||||||||||||
Collateral Dependent Impaired Loans | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Other Real Estate Owned and Repossessed Assets, Net | $ | 1,686 | $ | — | — | 1,686 | $ | (587 | ) | ||||||||||
September 30, 2016 | |||||||||||||||||||
Collateral Dependent Impaired Loans | $ | 2,640 | $ | — | $ | — | $ | 2,640 | $ | (240 | ) | ||||||||
Other Real Estate Owned and Repossessed Assets, Net | 1,016 | — | — | 1,016 | (319 | ) |
• | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
• | Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and |
• | Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Schedule of Fair Values by Balance Sheet Grouping | |||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||
Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
September 30, 2017 | |||||||||||||||||||
Cash and Cash Equivalents | $ | 80,666 | $ | 80,666 | $ | 80,666 | $ | — | $ | — | |||||||||
Securities Available-for-Sale | 315,459 | 315,459 | 64,730 | 250,729 | — | ||||||||||||||
Securities Held-to-Maturity | 341,526 | 343,899 | — | 343,899 | — | ||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 6,704 | 6,704 | — | 6,704 | — | ||||||||||||||
Net Loans | 1,891,104 | 1,870,379 | — | — | 1,870,379 | ||||||||||||||
Accrued Interest Receivable | 7,692 | 7,692 | — | 7,692 | — | ||||||||||||||
Deposits | 2,307,116 | 2,299,011 | — | 2,299,011 | — | ||||||||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 61,419 | 61,419 | — | 61,419 | — | ||||||||||||||
Federal Home Loan Bank Overnight Advances | 33,000 | 33,000 | — | 33,000 | — | ||||||||||||||
Federal Home Loan Bank Term Advances | 55,000 | 55,110 | — | 55,110 | — | ||||||||||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | — | 20,000 | — | ||||||||||||||
Accrued Interest Payable | 260 | 260 | — | 260 | — | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Cash and Cash Equivalents | $ | 57,355 | $ | 57,355 | $ | 57,355 | $ | — | $ | — | |||||||||
Securities Available-for-Sale | 346,996 | 346,996 | 54,706 | 292,290 | — | ||||||||||||||
Securities Held-to-Maturity | 345,427 | 343,751 | — | 343,751 | — | ||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 10,912 | 10,912 | — | 10,912 | — | ||||||||||||||
Net Loans | 1,736,256 | 1,720,078 | — | — | 1,720,078 | ||||||||||||||
Accrued Interest Receivable | 6,684 | 6,684 | — | 6,684 | — | ||||||||||||||
Deposits | 2,116,546 | 2,109,557 | — | 2,109,557 | — | ||||||||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 35,836 | 35,836 | — | 35,836 | — | ||||||||||||||
Federal Home Loan Bank Overnight Advances | 123,000 | 123,000 | — | 123,000 | — | ||||||||||||||
Federal Home Loan Bank Term Advances | 55,000 | 55,118 | — | 55,118 | — | ||||||||||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | — | 20,000 | — | ||||||||||||||
Accrued Interest Payable | 247 | 247 | — | 247 | — | ||||||||||||||
September 30, 2016 | |||||||||||||||||||
Cash and Cash Equivalents | $ | 102,059 | $ | 102,059 | $ | 102,059 | $ | — | $ | — | |||||||||
Securities Available-for-Sale | 339,190 | 339,190 | — | 339,190 | — | ||||||||||||||
Securities Held-to-Maturity | 338,238 | 347,441 | — | 347,441 | — | ||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 5,371 | 5,371 | — | 5,371 | — | ||||||||||||||
Net Loans | 1,690,241 | 1,696,929 | — | — | 1,696,929 | ||||||||||||||
Accrued Interest Receivable | 7,046 | 7,046 | — | 7,046 | — | ||||||||||||||
Deposits | 2,213,187 | 2,207,985 | — | 2,207,985 | — | ||||||||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 38,589 | 38,589 | — | 38,589 | — | ||||||||||||||
Federal Home Loan Bank Overnight Advances | — | — | — | — | — | ||||||||||||||
Federal Home Loan Bank Term Advances | 55,000 | 55,955 | — | 55,955 | — | ||||||||||||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | — | 20,000 | — | ||||||||||||||
Accrued Interest Payable | 247 | 247 | — | 247 | — |
Examples of Forward-Looking Statements: | ||
Topic | Page | Location |
Future compliance with regulatory capital standards | 46 | First paragraph under "Regulatory Capital and Increase in Stockholders' Equity" |
VISA | 47 | "VISA Class B Common Stock" |
Impact of market rate structure on net interest margin, loan yields and deposit rates | 51 | All paragraphs under "Quarterly Taxable Equivalent Yield on Loans" |
Impact of market rate structure on net interest margin, loan yields and deposit rates | 65 | Last paragraph under "Quantitative and Qualitative Disclosures about Market Risk |
Future level of residential real estate loans | 50 | Both paragraphs under "Residential Real Estate Loans" |
Future level of indirect consumer loans | 51 | Last paragraph under "Consumer Loans" |
Future level of commercial loans | 51 | Third paragraph under "Commercial Loans, and Commercial Real Estate Loans" |
Impact of changes in mortgage rates | 53 | First paragraph under "Investment Sales, Purchases and Maturities" |
Provision for loan losses | 54 | First paragraph in section |
Future level of nonperforming assets | 55 | Last four paragraphs under "Risk Elements" |
Liquidity | 58 | Last paragraph under "LIQUIDITY" |
Fees for other services to customers | 60, 63 | Second paragraph under "Noninterest Income" |
a. | rapid and dramatic changes in economic and market conditions, such as the U.S. economy experienced during the financial crisis of 2008-2010; |
d. | significant changes in banking, corporate income tax, or other laws and regulations, including both enactment of new legal or regulatory measures (e.g., the Dodd-Frank Act) or the modification or elimination of pre-existing measures; |
e. | significant changes in U.S. monetary or fiscal policy, including new or revised monetary programs or targets adopted or announced by the Federal Reserve ("monetary tightening or easing") or significant new federal legislation materially affecting the federal budget ("fiscal tightening or expansion"); |
f. | enhanced competition from unforeseen sources (e.g., so-called Fintech enterprises); and |
g. | similar uncertainties inherent in banking operations or business generally, including technological developments and changes. |
Arrow Financial Corporation Selected Quarterly Information (Dollars In Thousands, Except Per Share Amounts - Unaudited) | |||||||||||||||||||
Quarter Ended | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||||||
Net Income | $ | 7,416 | $ | 7,208 | $ | 6,631 | $ | 6,600 | $ | 6,738 | |||||||||
Transactions Recorded in Net Income (Net of Tax): | |||||||||||||||||||
Net Gain (Loss) on Securities Transactions | 6 | — | — | (101 | ) | — | |||||||||||||
Share and Per Share Data:(1) | |||||||||||||||||||
Period End Shares Outstanding | 13,891 | 13,900 | 13,886 | 13,887 | 13,828 | ||||||||||||||
Basic Average Shares Outstanding | 13,889 | 13,890 | 13,889 | 13,844 | 13,810 | ||||||||||||||
Diluted Average Shares Outstanding | 13,966 | 13,975 | 14,001 | 13,972 | 13,901 | ||||||||||||||
Basic Earnings Per Share | $ | 0.53 | $ | 0.52 | $ | 0.48 | $ | 0.48 | $ | 0.49 | |||||||||
Diluted Earnings Per Share | 0.53 | 0.52 | 0.47 | 0.47 | 0.48 | ||||||||||||||
Cash Dividend Per Share | 0.243 | 0.243 | 0.243 | 0.243 | 0.236 | ||||||||||||||
Selected Quarterly Average Balances: | |||||||||||||||||||
Interest-Bearing Deposits at Banks | 27,143 | 24,480 | 23,565 | 34,731 | 21,635 | ||||||||||||||
Investment Securities | 677,368 | 684,570 | 695,615 | 684,906 | 696,712 | ||||||||||||||
Loans | 1,892,766 | 1,842,543 | 1,781,113 | 1,726,738 | 1,680,850 | ||||||||||||||
Deposits | 2,193,778 | 2,206,365 | 2,161,798 | 2,160,156 | 2,063,832 | ||||||||||||||
Other Borrowed Funds | 262,864 | 207,270 | 205,436 | 157,044 | 209,946 | ||||||||||||||
Stockholders’ Equity | 243,801 | 239,396 | 235,257 | 230,198 | 228,048 | ||||||||||||||
Total Assets | 2,725,653 | 2,677,843 | 2,626,470 | 2,572,425 | 2,528,124 | ||||||||||||||
Return on Average Assets, annualized | 1.08 | % | 1.08 | % | 1.02 | % | 1.02 | % | 1.06 | % | |||||||||
Return on Average Equity, annualized | 12.07 | % | 12.08 | % | 11.43 | % | 11.41 | % | 11.75 | % | |||||||||
Return on Tangible Equity, annualized (2) | 13.40 | % | 13.45 | % | 12.76 | % | 12.77 | % | 13.18 | % | |||||||||
Average Earning Assets | 2,597,277 | 2,551,593 | 2,500,293 | 2,446,375 | 2,399,197 | ||||||||||||||
Average Paying Liabilities | 2,012,802 | 2,005,421 | 1,977,628 | 1,933,974 | 1,892,583 | ||||||||||||||
Interest Income, Tax-Equivalent (3) | 22,565 | 21,875 | 20,945 | 20,709 | 20,222 | ||||||||||||||
Interest Expense | 1,949 | 1,699 | 1,536 | 1,404 | 1,405 | ||||||||||||||
Net Interest Income, Tax-Equivalent (3) | 20,616 | 20,176 | 19,409 | 19,305 | 18,817 | ||||||||||||||
Tax-Equivalent Adjustment (3) | 966 | 949 | 948 | 939 | 940 | ||||||||||||||
Net Interest Margin, annualized (3) | 3.15 | % | 3.17 | % | 3.15 | % | 3.14 | % | 3.12 | % | |||||||||
Efficiency Ratio Calculation: (4) | |||||||||||||||||||
Noninterest Expense | $ | 15,548 | $ | 15,637 | $ | 15,475 | $ | 15,272 | $ | 15,082 | |||||||||
Less: Intangible Asset Amortization | 69 | 70 | 71 | 73 | 74 | ||||||||||||||
Net Noninterest Expense | 15,479 | 15,567 | 15,404 | 15,199 | 15,008 | ||||||||||||||
Net Interest Income, Tax-Equivalent (3) | 20,616 | 20,176 | 19,409 | 19,305 | 18,817 | ||||||||||||||
Noninterest Income | 7,141 | 7,057 | 6,695 | 6,648 | 7,114 | ||||||||||||||
Less: Net Securities Gain (Loss) | 10 | — | — | (166 | ) | — | |||||||||||||
Net Gross Income | 27,747 | 27,233 | 26,104 | 26,119 | 25,931 | ||||||||||||||
Efficiency Ratio (Non-GAAP) | 55.79 | % | 57.16 | % | 59.01 | % | 58.19 | % | 57.88 | % | |||||||||
Period-End Capital Information: | |||||||||||||||||||
Total Stockholders’ Equity (i.e. Book Value) | $ | 244,648 | $ | 240,752 | $ | 236,111 | $ | 232,852 | $ | 229,208 | |||||||||
Book Value per Share (1) | 17.61 | 17.32 | 17.00 | 16.77 | 16.58 | ||||||||||||||
Goodwill and Other Intangible Assets, net | 24,268 | 24,355 | 24,448 | 24,569 | 24,675 | ||||||||||||||
Tangible Book Value per Share (1,2) | 15.86 | 15.57 | 15.24 | 15.00 | 14.79 | ||||||||||||||
Capital Ratios:(5) | |||||||||||||||||||
Tier 1 Leverage Ratio | 9.30 | % | 9.35 | % | 9.37 | % | 9.47% | 9.44% | |||||||||||
Common Equity Tier 1 Capital Ratio | 12.70 | % | 12.68 | % | 12.84 | % | 12.97% | 12.80% | |||||||||||
Tier 1 Risk-Based Capital Ratio | 13.79 | % | 13.79 | % | 13.99 | % | 14.14% | 13.98% | |||||||||||
Total Risk-Based Capital Ratio | 14.77 | % | 14.77 | % | 14.98 | % | 15.15% | 14.99% | |||||||||||
Assets Under Trust Administration and Investment Management | $ | 1,411,608 | $ | 1,356,262 | $ | 1,333,690 | $ | 1,301,408 | $ | 1,284,051 |
Footnotes: | ||||||||||||||||||||
1. | Share and Per Share Data have been restated for the September 28, 2017, 3% stock dividend. | |||||||||||||||||||
2. | Tangible Book Value, Tangible Equity and Return on Tangible Equity exclude goodwill and other intangible assets, net from total equity. These are non-GAAP financial measures which we believe provide investors with information that is useful in understanding our financial performance. See "Use of Non-GAAP Financial Measures" on page 38. | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||||||||
Total Stockholders' Equity (GAAP) | $ | 244,648 | $ | 240,752 | $ | 236,111 | $ | 232,852 | $ | 229,208 | ||||||||||
Less: Goodwill and Other Intangible assets, net | 24,268 | 24,355 | 24,448 | 24,569 | 24,675 | |||||||||||||||
Tangible Equity (Non-GAAP) | $ | 220,380 | $ | 216,397 | $ | 211,663 | $ | 208,283 | $ | 204,533 | ||||||||||
Period End Shares Outstanding | 13,891 | 13,900 | 13,886 | 13,887 | 13,828 | |||||||||||||||
Tangible Book Value per Share (Non-GAAP) | $ | 15.86 | $ | 15.57 | $ | 15.24 | $ | 15.00 | $ | 14.79 | ||||||||||
Net Income | 7,416 | 7,208 | 6,631 | 6,600 | 6,738 | |||||||||||||||
Return on Tangible Equity (Net Income/Tangible Equity - Annualized) | 13.40 | % | 13.45 | % | 12.76 | % | 12.77 | % | 13.18 | % | ||||||||||
3. | Net Interest Margin is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance. See "Use of Non-GAAP Financial Measures" on page 38. | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||||||||
Interest Income (GAAP) | $ | 21,599 | $ | 20,926 | $ | 19,997 | $ | 19,770 | $ | 19,282 | ||||||||||
Add: Tax-Equivalent adjustment (Non-GAAP) | 966 | 949 | 948 | 939 | 940 | |||||||||||||||
Interest Income - Tax Equivalent (Non-GAAP) | $ | 22,565 | $ | 21,875 | $ | 20,945 | $ | 20,709 | $ | 20,222 | ||||||||||
Net Interest Income (GAAP) | $ | 19,650 | $ | 19,227 | $ | 18,461 | $ | 18,366 | $ | 17,877 | ||||||||||
Add: Tax-Equivalent adjustment (Non-GAAP) | 966 | 949 | 948 | 939 | 940 | |||||||||||||||
Net Interest Income - Tax Equivalent (Non-GAAP) | $ | 20,616 | $ | 20,176 | $ | 19,409 | $ | 19,305 | $ | 18,817 | ||||||||||
Average Earning Assets | $ | 2,597,277 | $ | 2,551,593 | $ | 2,500,293 | $ | 2,446,375 | $ | 2,399,197 | ||||||||||
Net Interest Margin (Non-GAAP)* | 3.15 | % | 3.17 | % | 3.15 | % | 3.14 | % | 3.12 | % | ||||||||||
4. | Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. We believe the efficiency ratio provides investors with information that is useful in understanding our financial performance. We define our efficiency ratio as the ratio of our noninterest expense to our net gross income (which equals our tax-equivalent net interest income plus noninterest income, as adjusted). There is no GAAP financial measure that is closely comparable to the efficiency ratio. See "Use of Non-GAAP Financial Measures" on page 38. | |||||||||||||||||||
5. | For the recently-completed quarter, all of the regulatory capital ratios in the table on page 40 and the table in this Note 5, below, as well as the Total Risk-Weighted Assets and Common Equity Tier 1 Capital amounts listed in the table below, are estimates based on, and calculated in accordance with, bank regulatory capital rules. The Common Equity Tier 1 Capital Ratio (CET1 Ratio) of Arrow as of 9/30/2017 that is listed in the tables (i.e., 12.70%) not only exceeds the currently required minimum CET1 Ratio (including Conservation Buffer) of 5.750%, but also exceeds the minimum CET1 Ratio that will be required when the Conservation Buffer is fully phased-in, on January 1, 2019, of 7.00% (including the ultimate required Conservation Buffer of 2.50%). | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||||||||
Total Risk Weighted Assets | $ | 1,830,730 | $ | 1,802,455 | $ | 1,747,318 | $ | 1,707,829 | $ | 1,690,646 | ||||||||||
Common Equity Tier 1 Capital | 232,473 | 228,586 | 224,369 | 221,472 | 216,382 | |||||||||||||||
Common Equity Tier 1 Capital Ratio | 12.70 | % | 12.68 | % | 12.84 | % | 12.97 | % | 12.80 | % |
Arrow Financial Corporation Selected Year-to-Date Information (Dollars In Thousands, Except Per Share Amounts - Unaudited) | |||||||
Nine Months Ended | 9/30/2017 | 9/30/2016 | |||||
Net Income | $ | 21,255 | $ | 19,934 | |||
Transactions Recorded in Net Income (Net of Tax): | |||||||
Net Gain on Securities Transactions | 6 | 88 | |||||
Share and Per Share Data:(1) | |||||||
Period End Shares Outstanding | 13,891 | 13,828 | |||||
Basic Average Shares Outstanding | 13,889 | 13,775 | |||||
Diluted Average Shares Outstanding | 13,981 | 13,842 | |||||
Basic Earnings Per Share | $ | 1.53 | $ | 1.45 | |||
Diluted Earnings Per Share | 1.52 | 1.44 | |||||
Cash Dividend Per Share | 0.73 | 0.71 | |||||
Selected Year-to-Date Average Balances: | |||||||
Interest-Bearing Deposits at Banks | 25,076 | 21,665 | |||||
Investment Securities | 685,784 | 704,890 | |||||
Loans | 1,839,216 | 1,641,899 | |||||
Deposits | 2,187,431 | 2,072,052 | |||||
Other Borrowed Funds | 225,400 | 173,159 | |||||
Stockholders’ Equity | 239,516 | 223,214 | |||||
Total Assets | 2,677,018 | 2,493,909 | |||||
Return on Average Assets, annualized | 1.06 | % | 1.07 | % | |||
Return on Average Equity, annualized | 11.86 | % | 11.93 | % | |||
Return on Tangible Equity, annualized (Non-GAAP) (2) | 13.21 | % | 13.42 | % | |||
Average Earning Assets | 2,550,076 | 2,368,454 | |||||
Average Paying Liabilities | 1,998,746 | 1,883,717 | |||||
Interest Income, Tax-Equivalent (Non-GAAP) (3) | 65,385 | 59,925 | |||||
Interest Expense | 5,184 | 3,952 | |||||
Net Interest Income, Tax-Equivalent (Non-GAAP) (3) | 60,201 | 55,973 | |||||
Tax-Equivalent Adjustment (Non-GAAP) (3) | 2,863 | 2,780 | |||||
Net Interest Margin, annualized (Non-GAAP) (3) | 3.16 | % | 3.16 | % | |||
Efficiency Ratio Calculation: (4) | |||||||
Noninterest Expense | 46,661 | 44,337 | |||||
Less: Intangible Asset Amortization | 210 | 223 | |||||
Net Noninterest Expense | 46,451 | 44,114 | |||||
Net Interest Income, Tax-Equivalent (Non-GAAP) (3) | 60,201 | 55,973 | |||||
Noninterest Income | 20,893 | 21,184 | |||||
Less: Net Securities Gain | 10 | 144 | |||||
Net Gross Income | 81,084 | 77,013 | |||||
Efficiency Ratio (Non-GAAP) | 57.29 | % | 57.28 | % | |||
Footnotes: | ||||||||
1. | Share and Per Share Data have been restated for the September 28, 2017, 3% stock dividend. | |||||||
2. | Tangible Book Value, Tangible Equity and Return on Tangible Equity exclude goodwill and other intangible assets, net from total equity. These are non-GAAP financial measures which we believe provide investors with information that is useful in understanding our financial performance. See "Use of Non-GAAP Financial Measures" on page 38. | |||||||
9/30/2017 | 9/30/2016 | |||||||
Total Stockholders' Equity (GAAP) | $ | 244,648 | $ | 229,208 | ||||
Less: Goodwill and Other Intangible assets, net | 24,268 | 24,675 | ||||||
Tangible Equity (Non-GAAP) | $ | 220,380 | $ | 204,533 | ||||
Period End Shares Outstanding | 13,891 | 13,828 | ||||||
Tangible Book Value per Share (Non-GAAP) | $ | 15.86 | $ | 14.79 | ||||
Net Income | 21,255 | 19,934 | ||||||
Return on Tangible Equity (Net Income/Tangible Equity - Annualized) | 13.21 | % | 13.42 | % | ||||
3. | Net Interest Margin is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance. See "Use of Non-GAAP Financial Measures" on page 38. | |||||||
9/30/2017 | 9/30/2016 | |||||||
Interest Income (GAAP) | $ | 62,522 | $ | 57,145 | ||||
Add: Tax-Equivalent adjustment (Non-GAAP) | $ | 2,863 | $ | 2,780 | ||||
Net Interest Income - Tax Equivalent (Non-GAAP) | $ | 65,385 | $ | 59,925 | ||||
Net Interest Income (GAAP) | $ | 57,338 | $ | 53,193 | ||||
Add: Tax-Equivalent adjustment (Non-GAAP) | 2,863 | 2,780 | ||||||
Net Interest Income - Tax Equivalent (Non-GAAP) | $ | 60,201 | $ | 55,973 | ||||
Average Earning Assets | $ | 2,550,076 | $ | 2,368,454 | ||||
Net Interest Margin (Non-GAAP)* | 3.16 | % | 3.16 | % | ||||
4. | Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. We believe the efficiency ratio provides investors with information that is useful in understanding our financial performance. We define our efficiency ratio as the ratio of our noninterest expense to our net gross income (which equals our tax-equivalent net interest income plus noninterest income, as adjusted). See "Use of Non-GAAP Financial Measures" on page 38. |
Average Consolidated Balance Sheets and Net Interest Income Analysis | |||||||||||||||||||||
(see “Use of Non-GAAP Financial Measures” on page 38) | |||||||||||||||||||||
(Fully Taxable Basis using a marginal tax rate of 35%) | |||||||||||||||||||||
(Dollars In Thousands) | |||||||||||||||||||||
Quarter Ended September 30: | 2017 | 2016 | |||||||||||||||||||
Interest | Rate | Interest | Rate | ||||||||||||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | ||||||||||||||||
Balance | Expense | Paid | Balance | Expense | Paid | ||||||||||||||||
Interest-Bearing Deposits at Banks | $ | 27,143 | $ | 104 | 1.52 | % | $ | 21,635 | $ | 34 | 0.63 | % | |||||||||
Investment Securities: | |||||||||||||||||||||
Fully Taxable | 389,092 | 1,928 | 1.97 | 409,355 | 1,893 | 1.84 | |||||||||||||||
Exempt from Federal Taxes | 288,276 | 2,404 | 3.31 | 287,357 | 2,332 | 3.23 | |||||||||||||||
Loans | 1,892,766 | 18,129 | 3.80 | 1,680,850 | 15,963 | 3.78 | |||||||||||||||
Total Earning Assets | 2,597,277 | 22,565 | 3.45 | 2,399,197 | 20,222 | 3.35 | |||||||||||||||
Allowance for Loan Losses | (17,393 | ) | (16,696 | ) | |||||||||||||||||
Cash and Due From Banks | 37,592 | 36,041 | |||||||||||||||||||
Other Assets | 108,177 | 109,582 | |||||||||||||||||||
Total Assets | $ | 2,725,653 | $ | 2,528,124 | |||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-Bearing Checking Accounts | $ | 869,748 | 376 | 0.17 | $ | 869,439 | 320 | 0.15 | |||||||||||||
Savings Deposits | 682,347 | 356 | 0.21 | 607,850 | 231 | 0.15 | |||||||||||||||
Time Deposits of $250,000 or More | 31,067 | 66 | 0.84 | 75,388 | 128 | 0.68 | |||||||||||||||
Other Time Deposits | 166,776 | 241 | 0.57 | 129,960 | 164 | 0.50 | |||||||||||||||
Total Interest-Bearing Deposits | 1,749,938 | 1,039 | 0.24 | 1,682,637 | 843 | 0.20 | |||||||||||||||
Short-Term Borrowings | 187,864 | 465 | 0.98 | 134,946 | 152 | 0.45 | |||||||||||||||
FHLBNY Term Advances and Other Long-Term Debt | 75,000 | 445 | 2.35 | 75,000 | 410 | 2.17 | |||||||||||||||
Total Interest-Bearing Liabilities | 2,012,802 | 1,949 | 0.38 | 1,892,583 | 1,405 | 0.30 | |||||||||||||||
Demand Deposits | 443,840 | 381,195 | |||||||||||||||||||
Other Liabilities | 25,210 | 26,298 | |||||||||||||||||||
Total Liabilities | 2,481,852 | 2,300,076 | |||||||||||||||||||
Stockholders’ Equity | 243,801 | 228,048 | |||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,725,653 | $ | 2,528,124 | |||||||||||||||||
Net Interest Income (Tax-equivalent Basis) (Non-GAAP) (1) | 20,616 | 18,817 | |||||||||||||||||||
Reversal of Tax Equivalent Adjustment | (966 | ) | (0.15 | )% | (940 | ) | (0.16 | )% | |||||||||||||
Net Interest Income | $ | 19,650 | $ | 17,877 | |||||||||||||||||
Net Interest Spread (Non-GAAP) (1) | 3.07 | % | 3.05 | % | |||||||||||||||||
Net Interest Margin (Non-GAAP) (1) | 3.15 | % | 3.12 | % |
Average Consolidated Balance Sheets and Net Interest Income Analysis | |||||||||||||||||||||
(see “Use of Non-GAAP Financial Measures” on page 38) | |||||||||||||||||||||
(Fully Taxable Basis using a marginal tax rate of 35%) | |||||||||||||||||||||
(Dollars In Thousands) | |||||||||||||||||||||
Nine-Month Period Ended September 30: | 2017 | 2016 | |||||||||||||||||||
Interest | Rate | Interest | Rate | ||||||||||||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | ||||||||||||||||
Balance | Expense | Paid | Balance | Expense | Paid | ||||||||||||||||
Interest-Bearing Deposits at Banks | $ | 25,076 | $ | 242 | 1.29 | % | $ | 21,665 | $ | 100 | 0.62 | % | |||||||||
Investment Securities: | |||||||||||||||||||||
Fully Taxable | 398,231 | 5,940 | 1.99 | 427,937 | 6,006 | 1.87 | |||||||||||||||
Exempt from Federal Taxes | 287,553 | 7,116 | 3.31 | 276,953 | 6,861 | 3.31 | |||||||||||||||
Loans | 1,839,216 | 52,087 | 3.79 | 1,641,899 | 46,958 | 3.82 | |||||||||||||||
Total Earning Assets | 2,550,076 | 65,385 | 3.43 | 2,368,454 | 59,925 | 3.38 | |||||||||||||||
Allowance for Loan Losses | (17,172 | ) | (16,316 | ) | |||||||||||||||||
Cash and Due From Banks | 36,056 | 32,327 | |||||||||||||||||||
Other Assets | 108,058 | 109,444 | |||||||||||||||||||
Total Assets | $ | 2,677,018 | $ | 2,493,909 | |||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-Bearing Checking Accounts | $ | 894,206 | 1,088 | 0.16 | $ | 909,268 | 941 | 0.14 | |||||||||||||
Savings Deposits | 680,419 | 963 | 0.19 | 604,886 | 677 | 0.15 | |||||||||||||||
Time Deposits of $250,000 or More | 31,974 | 187 | 0.78 | 66,230 | 313 | 0.63 | |||||||||||||||
Other Time Deposits | 166,747 | 702 | 0.56 | 130,174 | 497 | 0.51 | |||||||||||||||
Total Interest-Bearing Deposits | 1,773,346 | 2,940 | 0.22 | 1,710,558 | 2,428 | 0.19 | |||||||||||||||
Short-Term Borrowings | 150,400 | 946 | 0.84 | 98,159 | 303 | 0.41 | |||||||||||||||
FHLBNY Term Advances and Other Long-Term Debt | 75,000 | 1,298 | 2.31 | 75,000 | 1,221 | 2.17 | |||||||||||||||
Total Interest-Bearing Liabilities | 1,998,746 | 5,184 | 0.35 | 1,883,717 | 3,952 | 0.28 | |||||||||||||||
Demand Deposits | 414,085 | 361,494 | |||||||||||||||||||
Other Liabilities | 24,671 | 25,484 | |||||||||||||||||||
Total Liabilities | 2,437,502 | 2,270,695 | |||||||||||||||||||
Stockholders’ Equity | 239,516 | 223,214 | |||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,677,018 | $ | 2,493,909 | |||||||||||||||||
Net Interest Income (Tax-equivalent Basis) (Non-GAAP) | 60,201 | 55,973 | |||||||||||||||||||
Reversal of Tax Equivalent Adjustment | (2,863 | ) | (0.15 | )% | (2,780 | ) | (0.16 | )% | |||||||||||||
Net Interest Income | $ | 57,338 | $ | 53,193 | |||||||||||||||||
Net Interest Spread (Non-GAAP) (1) | 3.08 | % | 3.10 | % | |||||||||||||||||
Net Interest Margin (Non-GAAP) (1) | 3.16 | % | 3.16 | % |
At Period-End | $ Change | $ Change | % Change | % Change | |||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2016 | From December | From September | From December (not annualized) | From September | |||||||||||||||||||
Interest-Bearing Bank Balances | $ | 24,983 | $ | 14,331 | $ | 35,503 | $ | 10,652 | $ | (10,520 | ) | 74.3 | % | (29.6 | )% | ||||||||||
Securities Available-for-Sale | 315,459 | 346,996 | 339,190 | (31,537 | ) | (23,731 | ) | (9.1 | )% | (7.0 | )% | ||||||||||||||
Securities Held-to-Maturity | 341,526 | 345,427 | 338,238 | (3,901 | ) | 3,288 | (1.1 | )% | 1.0 | % | |||||||||||||||
Loans (1) | 1,908,799 | 1,753,268 | 1,707,216 | 155,531 | 201,583 | 8.9 | % | 11.8 | % | ||||||||||||||||
Allowance for Loan Losses | 17,695 | 17,012 | 16,975 | 683 | 720 | 4.0 | % | 4.2 | % | ||||||||||||||||
Earning Assets (1) | 2,597,471 | 2,470,934 | 2,425,518 | 126,537 | 171,953 | 5.1 | % | 7.1 | % | ||||||||||||||||
Total Assets | $ | 2,744,462 | $ | 2,605,242 | $ | 2,580,485 | $ | 139,220 | $ | 163,977 | 5.3 | % | 6.4 | % | |||||||||||
Demand Deposits | $ | 448,515 | $ | 387,280 | $ | 381,760 | $ | 61,235 | $ | 66,755 | 15.8 | % | 17.5 | % | |||||||||||
Interest-Bearing Checking Accounts | 967,250 | 877,988 | 993,221 | 89,262 | (25,971 | ) | 10.2 | % | (2.6 | )% | |||||||||||||||
Savings Deposits | 696,805 | 651,965 | 629,201 | 44,840 | 67,604 | 6.9 | % | 10.7 | % | ||||||||||||||||
Time Deposits over $250,000 | 28,464 | 32,878 | 45,237 | (4,414 | ) | (16,773 | ) | (13.4 | )% | (37.1 | )% | ||||||||||||||
Other Time Deposits | 166,082 | 166,435 | 163,768 | (353 | ) | 2,314 | (0.2 | )% | 1.4 | % | |||||||||||||||
Total Deposits | $ | 2,307,116 | $ | 2,116,546 | $ | 2,213,187 | $ | 190,570 | $ | 93,929 | 9.0 | % | 4.2 | % | |||||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | $ | 61,419 | $ | 35,836 | $ | 38,589 | $ | 25,583 | $ | 22,830 | 71.4 | % | 59.2 | % | |||||||||||
FHLBNY Advances - Overnight | 33,000 | 123,000 | — | (90,000 | ) | 33,000 | (73.2 | )% | — | % | |||||||||||||||
FHLBNY Advances - Term | 55,000 | 55,000 | 55,000 | — | — | — | % | — | % | ||||||||||||||||
Stockholders' Equity | 244,648 | 232,852 | 229,208 | 11,796 | 15,440 | 5.1 | % | 6.7 | % |
1. | Commercial loans. This segment of our portfolio increased significantly by $20.2 million, or 19.2%, during the first nine months of 2017, representing the impact of demand for such loans during the period. |
3. | Consumer loans (primarily automobile loans through indirect lending). As of September 30, 2017, these loans, primarily auto loans, had increased by $54.7 million, or 10.2%, from the December 31, 2016 balance, reflecting a continuation of strong demand for new and used vehicles region-wide and an expansion of our dealer network for indirect lending. |
Quarter Ended | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Demand Deposits | $ | 443,840 | $ | 408,214 | $ | 389,606 | $ | 383,226 | $ | 381,195 | |||||||||
Interest-Bearing Checking Accounts | 869,748 | 918,235 | 894,911 | 921,971 | 869,439 | ||||||||||||||
Savings Deposits | 682,347 | 681,197 | 677,662 | 649,928 | 607,850 | ||||||||||||||
Time Deposits over $250,000 | 31,067 | 31,126 | 33,758 | 39,058 | 41,267 | ||||||||||||||
Other Time Deposits | 166,776 | 167,593 | 165,861 | 165,973 | 164,081 | ||||||||||||||
Total Deposits | $ | 2,193,778 | $ | 2,206,365 | $ | 2,161,798 | $ | 2,160,156 | $ | 2,063,832 |
Quarter Ended | ||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||
Demand Deposits | 20.2 | % | 18.5 | % | 18.0 | % | 17.7 | % | 18.5 | % | ||||
Interest-Bearing Checking Accounts | 39.6 | % | 41.6 | % | 41.4 | % | 42.7 | % | 42.1 | % | ||||
Savings Deposits | 31.2 | % | 30.9 | % | 31.3 | % | 30.1 | % | 29.4 | % | ||||
Time Deposits over $250,000 | 1.4 | % | 1.4 | % | 1.6 | % | 1.8 | % | 2.0 | % | ||||
Other Time Deposits | 7.6 | % | 7.6 | % | 7.7 | % | 7.7 | % | 8.0 | % | ||||
Total Deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Quarter Ended | ||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||
Demand Deposits | — | % | — | % | — | % | — | % | — | % | ||||
Interest-Bearing Checking Accounts | 0.17 | 0.17 | 0.15 | 0.15 | 0.15 | |||||||||
Savings Deposits | 0.21 | 0.19 | 0.17 | 0.16 | 0.15 | |||||||||
Time Deposits over $250,000 | 0.84 | 0.85 | 0.66 | 0.55 | 0.59 | |||||||||
Other Time Deposits | 0.57 | 0.56 | 0.56 | 0.60 | 0.56 | |||||||||
Total Deposits | 0.19 | 0.18 | 0.17 | 0.16 | 0.16 |
Quarter Ended | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Commercial and Commercial Real Estate | $ | 561,260 | $ | 556,014 | $ | 541,187 | $ | 532,456 | $ | 524,523 | |||||||||
Residential Real Estate | 563,793 | 538,884 | 518,263 | 490,427 | 470,865 | ||||||||||||||
Home Equity | 137,251 | 138,125 | 135,910 | 135,939 | 133,009 | ||||||||||||||
Consumer Loans (1) | 630,462 | 609,520 | 585,753 | 567,916 | 552,454 | ||||||||||||||
Total Loans | $ | 1,892,766 | $ | 1,842,543 | $ | 1,781,113 | $ | 1,726,738 | $ | 1,680,851 |
Quarter Ended | ||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||
Commercial and Commercial Real Estate | 29.7 | % | 30.2 | % | 30.4 | % | 30.8 | % | 31.2 | % | ||||
Residential Real Estate | 29.8 | % | 29.2 | % | 29.1 | % | 28.4 | % | 28.0 | % | ||||
Home Equity | 7.3 | % | 7.5 | % | 7.6 | % | 7.9 | % | 7.9 | % | ||||
Consumer Loans (1) | 33.2 | % | 33.1 | % | 32.9 | % | 32.9 | % | 32.9 | % | ||||
Total Loans | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Quarter Ended | ||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||
Commercial and Commercial Real Estate | 4.32 | % | 4.30 | % | 4.25 | % | 4.29 | % | 4.28 | % | ||||
Residential Real Estate | 3.98 | % | 4.03 | % | 4.10 | % | 4.09 | % | 4.20 | % | ||||
Home Equity | 3.55 | % | 3.41 | % | 3.28 | % | 3.11 | % | 3.13 | % | ||||
Consumer Loans | 3.23 | % | 3.21 | % | 3.14 | % | 3.18 | % | 3.19 | % | ||||
Total Loans | 3.80 | % | 3.79 | % | 3.76 | % | 3.78 | % | 3.82 | % |
(Dollars in Thousands) | |||||||||||||||||||||||
Fair Value at Period-End | Net Unrealized Gains (Losses) For Period Ended | ||||||||||||||||||||||
9/30/2017 | 12/31/2016 | Change | 9/30/2017 | 12/31/2016 | Change | ||||||||||||||||||
Securities Available-for-Sale: | |||||||||||||||||||||||
U.S. Treasury Securities | $ | 64,730 | $ | 54,706 | $ | 10,024 | $ | 19 | $ | 5 | $ | 14 | |||||||||||
U.S. Agency Securities | 82,248 | 92,671 | (10,423 | ) | (17 | ) | 262 | (279 | ) | ||||||||||||||
State and Municipal Obligations | 11,902 | 27,690 | (15,788 | ) | 27 | 6 | 21 | ||||||||||||||||
Mortgage-Backed Securities-Residential | 152,806 | 167,239 | (14,433 | ) | (52 | ) | (950 | ) | 898 | ||||||||||||||
Corporate and Other Debt Securities | 2,299 | 3,308 | (1,009 | ) | (201 | ) | (204 | ) | 3 | ||||||||||||||
Mutual Funds and Equity Securities | 1,474 | 1,382 | 92 | 354 | 262 | 92 | |||||||||||||||||
Total | $ | 315,459 | $ | 346,996 | $ | (31,537 | ) | $ | 130 | $ | (619 | ) | $ | 749 | |||||||||
Securities Held-to-Maturity: | |||||||||||||||||||||||
State and Municipal Obligations | $ | 279,384 | $ | 267,127 | $ | 12,257 | $ | 1,646 | $ | (1,765 | ) | $ | 3,411 | ||||||||||
Mortgage-Backed Securities-Residential | 64,515 | 75,624 | (11,109 | ) | 727 | 89 | 638 | ||||||||||||||||
Corporate and Other Debt Securities | — | 1,000 | (1,000 | ) | — | — | — | ||||||||||||||||
Total | $ | 343,899 | $ | 343,751 | $ | 148 | $ | 2,373 | $ | (1,676 | ) | $ | 4,049 |
Three Months Ended | Nine Months Ended | ||||||||||||||
Sales | 9/30/2017 | 9/30/2016 | 9/30/2017 | 9/30/2016 | |||||||||||
Available-For-Sale Portfolio: | |||||||||||||||
Mortgage-Backed Securities-Residential | $ | — | $ | — | $ | — | $ | — | |||||||
U.S. Treasury Securities | — | — | — | — | |||||||||||
U.S. Agency Securities | 10,005 | — | 10,005 | 4,793 | |||||||||||
Corporate Bonds and Other | — | — | — | 5,631 | |||||||||||
Total | 10,005 | — | 10,005 | 10,424 | |||||||||||
Net Gains on Securities Transactions | 10 | — | 10 | 144 | |||||||||||
Proceeds on the Sales of Securities | $ | 10,015 | $ | — | $ | 10,015 | $ | 10,568 | |||||||
Held-to-Maturity Portfolio: | |||||||||||||||
State and Municipal Obligations | $ | — | $ | — | $ | — | $ | 2 | |||||||
Net Gains on Securities Transactions | — | — | — | — | |||||||||||
Proceeds on the Sales of Securities | $ | — | $ | — | $ | — | $ | 2 |
Three Months Ended | Nine Months Ended | ||||||||||||||
Purchases: | 9/30/2017 | 9/30/2016 | 9/30/2017 | 9/30/2016 | |||||||||||
Available-for-Sale Portfolio | |||||||||||||||
U.S. Treasury Securities | $ | 10,179 | $ | — | $ | 10,179 | $ | — | |||||||
U.S. Agency Securities | — | — | — | — | |||||||||||
State and Municipal Obligations | — | — | — | 10,920 | |||||||||||
Mortgage-Backed Securities-Residential | — | — | 12,324 | — | |||||||||||
Other | — | — | — | — | |||||||||||
Total Purchases | $ | 10,179 | $ | — | $ | 22,503 | $ | 10,920 | |||||||
Maturities & Calls | $ | 11,750 | $ | 22,185 | $ | 43,617 | $ | 65,965 |
Three Months Ended | Nine Months Ended | ||||||||||||||
Purchases: | 9/30/2017 | 9/30/2016 | 9/30/2017 | 9/30/2016 | |||||||||||
Held-to-Maturity Portfolio | |||||||||||||||
State and Municipal Obligations | $ | 2,583 | $ | 850 | $ | 36,018 | $ | 60,786 | |||||||
Mortgage-Backed Securities-Residential | — | — | — | — | |||||||||||
Total Purchases | $ | 2,583 | $ | 850 | $ | 36,018 | $ | 60,786 | |||||||
Maturities & Calls | $ | 8,800 | $ | 17,699 | $ | 39,062 | $ | 42,295 |
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Loan Balances: | |||||||||||||||||||
Period-End Loans | $ | 1,908,799 | $ | 1,878,632 | $ | 1,810,805 | $ | 1,753,268 | $ | 1,707,216 | |||||||||
Average Loans, Year-to-Date | 1,839,216 | 1,811,998 | 1,781,113 | 1,663,225 | 1,641,899 | ||||||||||||||
Average Loans, Quarter-to-Date | 1,892,766 | 1,842,543 | 1,781,113 | 1,726,738 | 1,680,850 | ||||||||||||||
Period-End Assets | 2,744,462 | 2,721,721 | 2,656,386 | 2,605,242 | 2,580,485 | ||||||||||||||
Allowance for Loan Losses, Year-to-Date: | |||||||||||||||||||
Allowance for Loan Losses, Beginning of Period | $ | 17,012 | $ | 17,012 | $ | 17,012 | $ | 16,038 | $ | 16,038 | |||||||||
Provision for Loan Losses, YTD | 1,580 | 780 | 358 | 2,033 | 1,550 | ||||||||||||||
Loans Charged-off, YTD | (1,197 | ) | (574 | ) | (270 | ) | (1,270 | ) | (784 | ) | |||||||||
Recoveries of Loans Previously Charged-off | 300 | 224 | 116 | 211 | 171 | ||||||||||||||
Net Charge-offs, YTD | (897 | ) | (350 | ) | (154 | ) | (1,059 | ) | (613 | ) | |||||||||
Allowance for Loan Losses, End of Period | $ | 17,695 | $ | 17,442 | $ | 17,216 | $ | 17,012 | $ | 16,975 | |||||||||
Allowance for Loan Losses, Quarter-to-Date: | |||||||||||||||||||
Allowance for Loan Losses, Beginning of Period | $ | 17,442 | $ | 17,216 | $ | 17,012 | $ | 16,975 | $ | 16,798 | |||||||||
Provision for Loan Losses, QTD | 800 | 422 | 358 | 483 | 480 | ||||||||||||||
Loans Charged-off, QTD | (622 | ) | (305 | ) | (270 | ) | (486 | ) | (367 | ) | |||||||||
Recoveries of Loans Previously Charged-off | 75 | 109 | 116 | 40 | 64 | ||||||||||||||
Net Charge-offs, QTD | (547 | ) | (196 | ) | (154 | ) | (446 | ) | (303 | ) | |||||||||
Allowance for Loan Losses, End of Period | $ | 17,695 | $ | 17,442 | $ | 17,216 | $ | 17,012 | $ | 16,975 | |||||||||
Nonperforming Assets, at Period-End: | |||||||||||||||||||
Nonaccrual Loans | $ | 5,482 | $ | 5,222 | $ | 4,273 | $ | 4,193 | $ | 6,107 | |||||||||
Loans Past Due 90 or More Days and Still Accruing Interest | 967 | 1,821 | — | 1,201 | 548 | ||||||||||||||
Restructured and in Compliance with Modified Terms | 828 | 101 | 101 | 106 | 107 | ||||||||||||||
Total Nonperforming Loans | 7,277 | 7,144 | 4,374 | 5,500 | 6,762 | ||||||||||||||
Repossessed Assets | 62 | 90 | 103 | 101 | 149 | ||||||||||||||
Other Real Estate Owned | 1,651 | 1,523 | 1,631 | 1,585 | 868 | ||||||||||||||
Total Nonperforming Assets | $ | 8,990 | $ | 8,757 | $ | 6,108 | $ | 7,186 | $ | 7,779 | |||||||||
Asset Quality Ratios: | |||||||||||||||||||
Allowance to Nonperforming Loans | 243.16 | % | 244.15 | % | 393.60 | % | 309.31 | % | 251.04 | % | |||||||||
Allowance to Period-End Loans | 0.93 | % | 0.93 | % | 0.95 | % | 0.97 | % | 0.99 | % | |||||||||
Provision to Average Loans (Quarter) (1) | 0.17 | % | 0.09 | % | 0.08 | % | 0.11 | % | 0.11 | % | |||||||||
Provision to Average Loans (YTD) (1) | 0.11 | % | 0.09 | % | 0.08 | % | 0.12 | % | 0.13 | % | |||||||||
Net Charge-offs to Average Loans (Quarter) (1) | 0.11 | % | 0.04 | % | 0.04 | % | 0.10 | % | 0.07 | % | |||||||||
Net Charge-offs to Average Loans (YTD) (1) | 0.07 | % | 0.04 | % | 0.04 | % | 0.06 | % | 0.05 | % | |||||||||
Nonperforming Loans to Total Loans | 0.38 | % | 0.38 | % | 0.24 | % | 0.31 | % | 0.40 | % | |||||||||
Nonperforming Assets to Total Assets | 0.33 | % | 0.32 | % | 0.23 | % | 0.28 | % | 0.30 | % | |||||||||
(1) Annualized |
Loans Past Due 30-89 Days and Accruing Interest ($ in 000's) | |||||||||||
9/30/2017 | 12/31/2016 | 9/30/2016 | |||||||||
Commercial Loans | $ | 122 | $ | 134 | $ | 105 | |||||
Commercial Real Estate Loans | — | 121 | — | ||||||||
Residential Real Estate Loans | 1,063 | 2,461 | 1,693 | ||||||||
Consumer Loans - Primarily Indirect Automobile | 5,615 | 6,369 | 5,144 | ||||||||
Total Delinquent Loans | $ | 6,800 | $ | 9,085 | $ | 6,942 |
Capital Ratio | Year, as of January 1 | |||||
2017 | 2018 | 2019 | ||||
Minimum CET1 Ratio | 4.500 | % | 4.500 | % | 4.500 | % |
Capital Conservation Buffer ("Buffer") | 1.250 | % | 1.875 | % | 2.500 | % |
Minimum CET1 Ratio Plus Buffer | 5.750 | % | 6.375 | % | 7.000 | % |
Minimum Tier 1 Risk-Based Capital Ratio | 6.000 | % | 6.000 | % | 6.000 | % |
Minimum Tier 1 Risk-Based Capital Ratio Plus Buffer | 7.250 | % | 7.875 | % | 8.500 | % |
Minimum Total Risk-Based Capital Ratio | 8.000 | % | 8.000 | % | 8.000 | % |
Minimum Total Risk-Based Capital Ratio Plus Buffer | 9.250 | % | 9.875 | % | 10.500 | % |
Minimum Leverage Ratio | 4.000 | % | 4.000 | % | 4.000 | % |
Common | Tier 1 | Total | |||||||||
Equity | Risk-Based | Risk-Based | Tier 1 | ||||||||
Tier 1 Capital | Capital | Capital | Leverage | ||||||||
Ratio | Ratio | Ratio | Ratio | ||||||||
Arrow Financial Corporation | 12.70 | % | 13.79 | % | 14.77 | % | 9.30 | % | |||
Glens Falls National Bank & Trust Co. | 13.35 | % | 13.36 | % | 14.33 | % | 8.88 | % | |||
Saratoga National Bank & Trust Co. | 13.20 | % | 13.20 | % | 14.15 | % | 9.42 | % | |||
Current Regulatory Minimum (2017) | 5.750%(1) | 7.250%(1) | 9.250%(1) | 4.000 | % | ||||||
FDICIA's Prompt Corrective Action - "Well-Capitalized" Standard (2017) | 6.500 | % | 8.000 | % | 10.000 | % | 5.000 | % | |||
Final Regulatory Minimum (1/1/2019) | 7.000%(2) | 8.500%(2) | 10.500%(2) | 4.000 | % | ||||||
(1) Including currently phased-in 1.25% capital conservation buffer | |||||||||||
(2) Including the fully phased-in 2.50 % capital conservation buffer |
Cash | |||||||||||
Market Price | Dividends | ||||||||||
Low | High | Declared | |||||||||
2016 | |||||||||||
First Quarter | $ | 23.13 | $ | 25.96 | $ | 0.236 | |||||
Second Quarter | 24.42 | 28.65 | 0.236 | ||||||||
Third Quarter | 27.79 | 33.08 | 0.236 | ||||||||
Fourth Quarter | 29.67 | 40.49 | 0.243 | ||||||||
2017 | |||||||||||
First Quarter | $ | 31.80 | $ | 39.76 | $ | 0.243 | |||||
Second Quarter | 30.15 | 34.95 | 0.243 | ||||||||
Third Quarter | 29.81 | 35.00 | 0.243 | ||||||||
Fourth Quarter (dividend payable December 15, 2017) | TBD | TBD | 0.250 |
Quarter Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash Dividends Per Share | $ | 0.243 | $ | 0.236 | |||
Diluted Earnings Per Share | 0.53 | 0.48 | |||||
Dividend Payout Ratio | 45.85 | % | 49.17 | % | |||
Total Equity (in thousands) | 244,648 | $ | 229,208 | ||||
Shares Issued and Outstanding (in thousands) | 13,891 | 13,828 | |||||
Book Value Per Share | $ | 17.61 | $ | 16.58 | |||
Intangible Assets (in thousands) | 24,268 | 24,675 | |||||
Tangible Book Value Per Share | $ | 15.86 | $ | 14.79 |
Quarter Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Net Income | $ | 7,416 | $ | 6,738 | $ | 678 | 10.1 | % | ||||||
Diluted Earnings Per Share | 0.53 | 0.48 | 0.05 | 10.4 | ||||||||||
Return on Average Assets | 1.08 | % | 1.06 | % | 0.02 | % | 1.9 | |||||||
Return on Average Equity | 12.07 | % | 11.75 | % | 0.32 | % | 2.7 |
Quarter Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Interest and Dividend Income | $ | 22,565 | $ | 20,222 | $ | 2,343 | 11.6 | % | ||||||
Interest Expense | 1,949 | 1,405 | 544 | 38.7 | % | |||||||||
Net Interest Income | 20,616 | 18,817 | 1,799 | 9.6 | % | |||||||||
Tax-Equivalent Adjustment | 966 | 940 | 26 | 2.8 | % | |||||||||
Average Earning Assets (1) | 2,597,277 | 2,399,197 | 198,080 | 8.3 | % | |||||||||
Average Interest-Bearing Liabilities | 2,012,802 | 1,892,583 | 120,219 | 6.4 | % | |||||||||
Yield on Earning Assets (1) | 3.45 | % | 3.35 | % | 0.10 | % | 3.0 | % | ||||||
Cost of Interest-Bearing Liabilities | 0.38 | 0.30 | 0.08 | % | 26.7 | % | ||||||||
Net Interest Spread | 3.07 | 3.05 | 0.02 | % | 0.7 | % | ||||||||
Net Interest Margin | 3.15 | 3.12 | 0.03 | % | 1.0 | % |
Quarter Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Income From Fiduciary Activities | $ | 2,116 | $ | 1,923 | $ | 193 | 10.0 | % | ||||||
Fees for Other Services to Customers | 2,453 | 2,491 | (38 | ) | (1.5 | )% | ||||||||
Insurance Commissions | 2,113 | 2,127 | (14 | ) | (0.7 | )% | ||||||||
Net Gain on Securities Transactions | 10 | — | 10 | — | % | |||||||||
Net Gain on the Sale of Loans | 182 | 310 | (128 | ) | (41.3 | )% | ||||||||
Other Operating Income | 267 | 263 | 4 | 1.5 | % | |||||||||
Total Noninterest Income | $ | 7,141 | $ | 7,114 | $ | 27 | 0.4 | % |
Quarter Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Salaries and Employee Benefits | $ | 9,251 | $ | 8,693 | $ | 558 | 6.4 | % | ||||||
Occupancy Expense of Premises, Net | 1,145 | 1,257 | (112 | ) | (8.9 | ) | ||||||||
Furniture and Equipment Expense | 1,226 | 1,168 | 58 | 5.0 | ||||||||||
FDIC and FICO Assessments | 225 | 217 | 8 | 3.7 | ||||||||||
Amortization | 69 | 74 | (5 | ) | (6.8 | ) | ||||||||
Other Operating Expense | 3,632 | 3,673 | (41 | ) | (1.1 | ) | ||||||||
Total Noninterest Expense | $ | 15,548 | $ | 15,082 | $ | 466 | 3.1 | |||||||
Efficiency Ratio | 55.79 | % | 57.88 | % | (2.09 | )% | (3.6 | ) |
Quarter Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Provision for Income Taxes | $ | 3,027 | $ | 2,691 | $ | 336 | 12.5 | % | ||||||
Effective Tax Rate | 29.0 | % | 28.5 | % | 0.5 | 1.8 |
Nine Months Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Net Income | $ | 21,255 | $ | 19,934 | $ | 1,321 | 6.6 | % | ||||||
Diluted Earnings Per Share | 1.52 | 1.44 | 0.08 | 5.6 | ||||||||||
Return on Average Assets | 1.06 | % | 1.07 | % | (0.01 | )% | (0.9 | ) | ||||||
Return on Average Equity | 11.86 | % | 11.93 | % | (0.07 | )% | (0.6 | ) |
Nine Months Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Interest and Dividend Income | $ | 65,385 | $ | 59,925 | $ | 5,460 | 9.1 | % | ||||||
Interest Expense | 5,184 | 3,952 | 1,232 | 31.2 | % | |||||||||
Net Interest Income | 60,201 | 55,973 | 4,228 | 7.6 | % | |||||||||
Tax-Equivalent Adjustment | 2,863 | 2,780 | 83 | 3.0 | % | |||||||||
Average Earning Assets (1) | 2,550,076 | 2,368,454 | 181,622 | 7.7 | % | |||||||||
Average Interest-Bearing Liabilities | 1,998,746 | 1,883,717 | 115,029 | 6.1 | % | |||||||||
Yield on Earning Assets (1) | 3.43 | % | 3.38 | % | 0.05 | % | 1.5 | % | ||||||
Cost of Interest-Bearing Liabilities | 0.35 | 0.28 | 0.07 | % | 25.0 | % | ||||||||
Net Interest Spread | 3.08 | 3.10 | (0.02 | )% | (0.6 | )% | ||||||||
Net Interest Margin | 3.16 | 3.16 | — | % | — | % |
Nine Months Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Income From Fiduciary Activities | $ | 6,284 | $ | 5,854 | $ | 430 | 7.3 | % | ||||||
Fees for Other Services to Customers | 7,122 | 7,144 | (22 | ) | (0.3 | ) | ||||||||
Insurance Commissions | 6,426 | 6,468 | (42 | ) | (0.6 | ) | ||||||||
Net Gain on Securities Transactions | 10 | 144 | (134 | ) | (93.1 | ) | ||||||||
Net Gain on the Sale of Loans | 431 | 649 | (218 | ) | (33.6 | ) | ||||||||
Other Operating Income | 620 | 925 | (305 | ) | (33.0 | ) | ||||||||
Total Noninterest Income | $ | 20,893 | $ | 21,184 | $ | (291 | ) | (1.4 | ) |
Nine Months Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Salaries and Employee Benefits | $ | 27,343 | $ | 25,223 | $ | 2,120 | 8.4 | % | ||||||
Occupancy Expense of Premises, Net | 3,761 | 3,819 | (58 | ) | (1.5 | ) | ||||||||
Furniture and Equipment Expense | 3,649 | 3,404 | 245 | 7.2 | ||||||||||
FDIC and FICO Assessments | 679 | 844 | (165 | ) | (19.5 | ) | ||||||||
Amortization | 210 | 223 | (13 | ) | (5.8 | ) | ||||||||
Other Operating Expense | 11,019 | 10,824 | 195 | 1.8 | ||||||||||
Total Noninterest Expense | $ | 46,661 | $ | 44,337 | $ | 2,324 | 5.2 | |||||||
Efficiency Ratio | 57.29 | % | 57.28 | % | 0.01 | % | — |
Nine Months Ended | ||||||||||||||
9/30/2017 | 9/30/2016 | Change | % Change | |||||||||||
Provision for Income Taxes | $ | 8,735 | $ | 8,556 | $ | 179 | 2.1 | % | ||||||
Effective Tax Rate | 29.1 | % | 30.0 | % | (0.9 | ) | (3.0 | ) |
Third Quarter 2017 Calendar Month | (A) Total Number of Shares Purchased 1 | (B) Average Price Paid Per Share 1 | (C) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs 2 | (D) Maximum Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs 3 | |||||||||
July | 8,138 | $ | 31.28 | 6,180 | $ | 3,502,520 | |||||||
August | 22,678 | 31.34 | 20,600 | 2,856,516 | |||||||||
September | 14,456 | 31.88 | — | 2,856,516 | |||||||||
Total | 45,272 | 31.50 | 26,780 |
Exhibit Number | Exhibit |
10.1 | |
15 | |
31.1 | |
31.2 | |
32 | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* Management contracts or compensation plans required to be filed as an exhibit. |
November 7, 2017 | /s/Thomas J. Murphy |
Date | Thomas J. Murphy, President and |
Chief Executive Officer | |
November 7, 2017 | /s/Edward J. Campanella |
Date | Edward J. Campanella, Senior Vice President, |
Treasurer and Chief Financial Officer | |
(Principal Financial Officer and | |
Principal Accounting Officer) |
A. | Executive has resigned his director and officer positions with Employer with such resignation and the termination of Executive from such director and officer positions effective as of September 4, 2017 (the “Resignation Effective Date”) and has irrevocably resigned his employment with Employer as of the Last Day of Employment (defined below), and these resignations have been accepted. |
B. | Executive will continue to be employed as a non-officer employee of Employer through the close of business on December 31, 2017 (the “Last Day of Employment”) on the terms described below, and has voluntarily and irrevocably resigned his employment with Employer as of the Last Day of Employment, at which time and upon which date, Executive’s employment with Employer will terminate, and these resignations have been accepted. |
C. | Without any admission or concern as to fault, liability or wrongdoing, to ensure an effective, amicable and smooth transition in leadership, and to avoid the time, distractions and resource expenditures potentially associated with Executive’s departure, Employer and Executive desire to resolve all matters relating to or arising out of Executive’s employment by Employer and Executive’s resignation of his director and officer positions and the termination of Executive’s employment with Employer on the terms described herein. |
D. | Executive has been (and hereby is) advised in writing to consult with an attorney prior to finally accepting this Agreement. |
1. | Resignation by Executive from all Director and Officer Positions; Termination of Executive’s Employment. |
(a) | Resignation from all Director and Officer Positions. Executive has voluntarily resigned from his director and officer positions with Employer effective as of the Resignation Effective Date. These resignations are accepted. Any and all right or authority of Executive to act as an agent of Employer, in any manner whatsoever, is terminated as of the Resignation Effective Date. |
(b) | Resignation of Employment with Employer. Executive likewise hereby voluntarily and irrevocably resigns his employment with Employer effective as of the Last Day of Employment, and will be employed by Employer during the period from the date of this Agreement until the Last Day of Employment on the terms described herein. This resignation is accepted. The employment of Executive by Employer, in any capacity whatsoever, will terminate and cease as of the Last Day of Employment. |
(c) | Advisory Period. Executive shall be employed by Employer as an employee advisor during a period beginning with the Resignation Effective Date and ending on the Last Day of Employment (the “Advisory Period”), reporting to the Chief Financial Officer; provided, however, that Employer shall have the right to terminate the Executive for (i) any willful misconduct by the Executive which is materially injurious to the Employer or its subsidiaries, monetarily or otherwise, (ii) any willful failure by the Executive to follow the reasonable directions of the Chief Financial Officer, (iii) any failure by the Executive substantially to perform any reasonable directions of the Chief Executive Officer (other than failure resulting from disability or death), within ten (10) days after delivery to the Executive by the Employer of a written demand for substantial performance, which written demand shall specifically identify the manner in which the Employer believes that the Executive has not substantially performed, or (iv) intentionally providing false or misleading information to, or otherwise misleading, the Chief Financial Officer. Executive’s principal duties during the Advisory Period shall include the transition of all finance, treasury, controller, reporting and audit functions.. During the Advisory Period, Executive shall be paid on a salaried basis at an annual rate of $240,000, subject to applicable withholding, payable in equal bi-weekly installments or at such other intervals as is consistent with the regular payroll practice of Employer. |
2. | Separation Benefits. In consideration for the representations, warranties, covenants and agreements made by Executive and contained in this Agreement and conditional upon the terms of this Agreement. Employer will pay Executive an aggregate of $260,000 during the 2018 calendar year, subject to applicable withholding; payable in equal bi-weekly installments or at such other intervals as is consistent with the regular payroll practice of Employer (the “Separation Payment”) and subject to the condition that within 21 days after the Last Day of Employment, Executive signs and delivers a completed Schedule I and does not revoke his acceptance of the same within 7 days after returning the completed Schedule I. Said salary payments will commence as soon as administratively practicable in 2018 after such conditions are satisfied. |
3. | Treatment of Outstanding Equity Awards. Executive has outstanding vested and unvested stock options. Executive’s vested stock options shall be exercisable in accordance with the terms of the applicable award agreement and Employer’s 1998 Long-Term Incentive Plan, the 2008 Long-Term Incentive Plan and the 2013 Long-Term Incentive Plan, as applicable, which may provide for a stated exercise period upon termination of employment including, possibly, a stated exercise period upon “early retirement,” (as defined under the principal retirement plan of Arrow Financial Corporation). His unvested stock options shall be forfeited immediately following the Last Day of Employment, consistent with the terms of the applicable award agreement and underlying plan document. |
(a) | Prior Agreements, Practices, Policies, Procedures and Plans Superseded. In consideration of the Separation Payment and other benefits accruing to Executive hereunder, and subject to Section 11 hereof, except as is contemplated by Section 6(f), Executive agrees that the Employment Agreement dated January 27, 2016 by and among Executive, Arrow Financial Corporation and its wholly owned subsidiary, Glens Falls National Bank and Trust Company, and any other agreement between Employer and Executive with respect to severance or separation payments, is terminated as of the date hereof and any such agreement or any other severance practice, program, policy, procedure, arrangement or plan (except as explicitly set forth herein) of Employer is superseded in its entirety by the terms of this Agreement in all respects. Executive will have no further rights, and Employer will have no further obligations, under any such agreement, practice, program, policy, procedure, arrangement or plan (except as explicitly set forth herein). For the avoidance of doubt, nothing in this Agreement is intended to or in effect terminates any agreements of Executive pertaining to intellectual property, inventions, confidentiality or non-solicitation. |
(b) | Representations. Executive represents and warrants to Employer that (i) Executive (A) has not filed any suit, action, claim, allegation or other proceeding at law or in equity, before any court, governmental agency, arbitration panel or other forum of any nature (an “Action”) with respect to the matters released in Section 4(c) below and (B) will not prosecute, and will immediately dismiss with prejudice, any pending Action with respect to the matters released in Section 4(c) below; (ii) Executive has not assigned to any other person or entity any right(s) or claim(s) Executive may have against Employer; (iii) in deciding to execute this Agreement (A) no fact, evidence, event or |
(1) | Executive hereby releases, gives up and waives any and all known and unknown rights, causes of action, lawsuits and claims for liability Executive may now or in the future have against any of the Employer Parties (defined below) in any way arising out of, based upon or relating to (i) Executive’s employment with Employer or the termination of or resignation from such employment, (ii) any promise, policy, practice, agreement, action or conduct of any of the Employer Parties to date, or (iii) any fact occurring prior to this date. Executive acknowledges that this means that, among other claims, he is releasing the Employer Parties from and may not bring claims against any of them under (i) Title VII of the Civil Rights Act of 1964 or Sections 1981 and 1983 of the Civil Rights Act of 1866, which prohibit discrimination based on race, color, national origin, ancestry, religion, or sex; (ii) the Age Discrimination in Employment Act, which prohibits discrimination based on age; (iii) the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; (iv) the Americans with Disabilities Act and Sections 503 and 504 of the Rehabilitation Act of 1973, which prohibit discrimination based on disability; (v) the WARN Act, which requires that advance notice be given of certain workforce reductions; (vi) the Employee Retirement Income Security Act, which among other things, protects employee benefits; (vii) the Family and Medical Leave Act of 1993, which requires employers to provide leaves of absence under certain circumstances; (viii) the Sarbanes-Oxley Act of 2002, which, among other things, provides “whistleblower” protection; (ix) the National Labor Relations Act, the New York State Human Rights Law, the New York State Labor Law (including but not limited to the New York State Worker Adjustment and Retraining Notification Act, all provisions prohibiting discrimination and retaliation, and all provisions regulating wage and hour law), the New York State Corrections Law, the New York State Civil Rights Law, Section 125 of the New York Workers' Compensation Law, and the New York City Human Rights Law, all as amended and including all of their respective implementing regulations, (x) any applicable federal, state or local law prohibiting any form of discrimination or retaliation; (xi) any law prohibiting retaliation based on exercise by Executive of rights under any law, providing “whistleblower” protection, providing workers’ compensation benefits, protecting union activity, mandating leaves of absence, prohibiting discrimination based on veteran status |
(2) | Employer hereby releases, gives up and waives any and all known and unknown rights, causes of action, lawsuits and claims for liability Employer may now or in the future have against Executive in any way arising out of, based upon or relating to (i) Executive’s employment with Employer or the termination of or resignation from such employment, (ii) any promise, policy, agreement, action or conduct of Executive to date, or (iii) any fact occurring prior to this date, except for rights, claims, causes of action and claims for liability against Executive in any way based on any violation by Executive of the Employer’s Code of Conduct, any criminal conduct |
(d) | Nature of Release. It is expressly understood and agreed that this Agreement is intended to cover and does cover not only all known losses and damages but any future losses and damages not now known or anticipated but which may later develop or be discovered, including the effects and consequences thereof. It is further expressly understood and agreed that this Agreement may be pleaded as a counterclaim to or as a defense in bar or abatement of any action taken by or on behalf of either Employer or Executive. Executive agrees that neither this Agreement nor performance hereunder constitutes or should be construed as an admission by any of the Employer Parties of any fault, liability, wrongdoing, or violation of any Employer policy, any federal, state, foreign or local law or regulation, common law, or any breach of any contract or any other wrongdoing of any type, all of which are expressly denied by Employer. Likewise, Employer agrees that neither this Agreement nor performance hereunder constitutes or should be construed as an admission by Executive of any fault, liability, wrongdoing, or violation of any Employer policy, any federal, state, foreign or local law or regulation, common law, or any breach of any contract or any other wrongdoing of any type, all of which are expressly denied by Executive. |
5. | Covenant Not To Sue; Indemnification. Executive and Employer each agree not to enter into any suit, action or other proceeding at law or in equity (including administrative actions), or to prosecute further any existing suit or action that might presently exist, or to make any claim or demand of any kind or nature against any of the Employer Parties or Executive (as the case may be), in any such case asserting any claim released by Executive or Employer (as the case may be) by Section 4(c)(1) and (2) of this Agreement. If Employer or Executive enters into any such suit, action or other proceeding in violation of this Section 5, the party who does so shall (i) indemnify, defend and hold the other (which, in the case of Employer shall include all the Employer Parties) harmless from and against any and all liabilities, obligations, losses, damages, penalties, claims, action, suits, costs, expenses and disbursements (including attorneys’ fees and expenses and court costs whether or not litigation is commenced and, if litigation is commenced, during all trial and appellate phases of such litigation) of any kind and nature whatsoever which may be imposed on, incurred by or asserted against any such person in any way relating to, arising out of, connected with or resulting from such actions, including any of the matters released hereunder and (ii) in the case of Executive, immediately return the Separation Payment to Employer. |
(a) | Confidentiality; Return of Property. Executive acknowledges that, as an executive of Employer, he has had access to confidential, proprietary and trade secret information of Employer. In addition, Executive acknowledges the competitive nature of Employer’s business and agrees and reaffirms that any information that is not public (by lawful means) or otherwise readily accessible by the public through lawful means acquired by Executive regarding Employer’s business, finances, costs, pricing, contracts, customers, prospects, plans, products, methods, technology, legal proceedings, personnel, directors and officers (whether or not such information is marked confidential) shall be considered Employer’s confidential information. In furtherance and not limitation of any prior agreements, to the extent that any of the following is not public (by lawful means) or otherwise readily accessible by the public through lawful means regarding confidentiality, Executive agrees not to disclose to anyone (other than Employer), or use for Executive’s benefit or the benefit of any other person (other than Employer), any trade secrets, marketing documents or information, financial statements, reports, salary information, product cost or price information, technical information, financial information, methods, technology, any information relating to customers, prospects, bids, proposals or sales or any other information acquired by Executive regarding Employer or its business, directors, officers and employees (whether or not such information is marked confidential). Furthermore, Executive agrees to return to Employer, on the Last Day of Employment, all Employer property and any information (including any copies thereof, electronic or otherwise) that Executive has received, prepared or helped to prepare during the course of Executive’s employment with Employer; provided, however, that Employer agrees to transfer title to Executive on an “as is, where is” basis to the 2011 Toyota Avalon provided to Executive for his use while an executive officer of Employer promptly following the Last Day of Employment and the expiration of the revocation period set forth in Schedule I attached hereto. All risk of loss with respect to the 2011 Toyota Avalon will pass to Executive upon the transfer of title to the vehicle to Executive and Employer will no longer be responsible for insurance or maintenance for such vehicle as of such date. |
(b) | Non-Compete. Employer agrees to waive its rights to enforce that certain covenant not to compete set forth in Section 9(a) of the Employment Agreement. |
(c) | Non-Solicitation. In consideration of the Separation Payment, and in furtherance and not limitation of any prior agreement between Executive and Employer with respect to non-solicitation matters, Executive acknowledges and agrees that, for a period of two (2) years following the Last Day of Employment, Executive shall not, directly or indirectly: (i) acting on behalf of any Financial Institution, regardless of where such Financial Institution is located or doing business, solicit any banking, lending or trust business or the business of providing financial, insurance or investment adviser services or products business for such Financial Institution from, or otherwise seek to obtain as a customer or client of such Financial Institution, any person or entity that, to the knowledge of the Executive, was a customer or client of Employer, and whom Executive, or anyone supervised directly or indirectly by Executive, worked or dealt with, at any point during the one-year period immediately preceding the Last Day of Employment; or (ii) acting on behalf of any other corporation or entity, including any Financial Institution, regardless of where such other corporation or entity is located or doing business, employ, recruit or solicit as an employee of such corporation or entity or retain or seek to retain as an agent or consultant of such corporation or entity, or any of its affiliates, any individual employed by or retained as an agent or consultant of Employer in furtherance of the |
(d) | Insider Trading Policy. Executive shall remain subject to the Employer’s insider trading policy through the Last Day of Employment. In no event shall Executive trade in the securities of Employer in violation of any state or federal securities laws. |
(e) | Equitable Relief. Executive acknowledges and agrees that (i) any breach of this Agreement by Executive, including any breach of the terms of this Section 6, will cause Employer irreparable injury and damage, (ii) the provisions of this Agreement are necessarily of a special, unique and extraordinary nature and (iii) if Executive breaches or threatens to breach any such provisions, Employer shall be entitled, in addition to any other remedies and damages Employer could recover as a result of any such breach, to obtain equitable relief, including restraining orders or injunctions, both temporary and permanent, in order to prevent future violation thereof by Executive or any person with whom Executive may be affiliated. |
(f) | Existing Obligations. Executive agrees to remain bound by and to comply with, and reaffirms Executive’s obligations under, any agreement or policy relating to confidential information, invention, intellectual property, non-solicitation, or similar matters to which Executive is now subject, notwithstanding the reasons why Executive’s employment terminated or any conduct occurring prior to this date. The covenants and agreements set out in this Section 6 above are in addition to, and do not in any way cancel or supersede, any of such obligations or agreements. For the avoidance of doubt, Employer waives its rights to enforce any covenant not to compete which Executive may have agreed to prior to the date hereof. |
(g) | Survival. The provisions of this Section 6 shall survive any termination of this Agreement. |
(h) | Reformation. It is the intention of the parties to restrict the activities of the Executive under this Section 6(c) only to the extent necessary for the protection of the legitimate business interests of Employer, and the parties specifically covenant and agree that should any of the clauses or provisions of the restrictions set forth therein, under any set of circumstances, be held by a court of competent jurisdiction to be illegal, invalid or unenforceable under present or future laws effective, then and in that event, the provision shall not be rendered invalid or unenforceable and instead the parties consent and agree that the court so holding may reduce the extent or duration of such restrictions or effect any other change to such restrictions to such lesser degree or extent necessary to render such restrictions enforceable by said court to the maximum extent permissible under applicable law. The enforceability of the provisions of this Section 6 shall not be affected by the existence or non-existence of any agreement with similar terms between Employer and another employee, or by the failure of Employer to enforce, its agreement to waive or change the terms of any such agreement with another employee containing similar terms. |
(a) | Non-Disparagement. For a period of ten (10) years following the Last Day of Employment, Executive will not, directly or indirectly, make any statements, declarations, announcements, assertions, remarks, comments or suggestions, orally or in writing, that individually or collectively |
(b) | No Re-Employment. Executive will never apply for or seek employment with Employer, or be employed by Employer, and agrees that Employer may refuse to employ him (or, if he has already been employed, dismiss him following discovery of that fact) without liability. |
8. | Legal Proceedings. Executive agrees to cooperate with Employer and its legal counsel, and to furnish any and all complete and truthful information, testimony or affidavits, in connection with any matter that arose during his employment with Employer, or in connection with any litigation, governmental proceeding or investigation, arbitration or claim, that in any way relates to the business or operations of Employer, or of which Executive may have any knowledge or involvement. Executive will make his best efforts to consult with and provide information to Employer and its legal counsel concerning all such matters, and appear as and when requested to provide any such information, assistance or testimony on reasonable notice. Employer will use its reasonable efforts to have such cooperation performed at reasonable times and places and in a manner as not to unreasonably interfere with any other employment or other business activity in which Executive may then be engaged. Nothing in this Agreement shall be construed or interpreted as requiring Executive to provide any testimony, sworn statement or declaration that is not complete and truthful. If Employer requires Executive to travel outside the metropolitan area in the United States where he then resides to provide any testimony or otherwise provide any such assistance, then Employer agrees to reimburse Executive for any reasonable, customary and necessary travel and lodging expenses incurred by him to do so provided Executive submits all documentation required under Employer’s reimbursement policies and as otherwise may be required to satisfy any requirements under applicable tax laws for Employer to deduct those expenses. To the extent that Executive is required to spend significant time assisting Employer as contemplated under this Section 8, Employer shall compensate the Executive at a reasonable hourly rate to be agreed upon by the parties, each party acting reasonably. Nothing in this Agreement shall prevent Executive from giving truthful testimony or information to law enforcement entities, administrative agencies or courts or in any other legal proceedings as required by law, including, but not limited to, assisting in an investigation or proceeding brought by any governmental or regulatory body or official related to alleged violations of any law relating to fraud or any rule or regulation of the Securities and Exchange Commission. |
9. | Further Assurances. Executive agrees to execute such further instruments and take such further actions as Employer shall reasonably require to accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, Executive agrees to execute a second release, in a form attached hereto as Schedule I, upon the occurrence of the Last Day of Employment. Executive acknowledges and agrees that the execution of such a release and the expiration of the applicable revocation period with respect to such release is a condition to the payment of the Separation Payment hereunder. |
(a) | Entire Agreement. This Agreement contains the entire agreement between the parties concerning the separation of the Executive from all positions of the Executive with the Employer. This Agreement and any agreement, instrument or document to be executed in connection herewith (as referenced herein) contain the parties’ entire understanding and agreement with respect to the subject matter hereof (the termination of Executive’s employment and directorships with Employer, the Separation Payment and the treatment of the outstanding equity awards currently held by Executive and the release of any potential related claims). Any discussions, agreements, promises, representations, |
(b) | Modification, Amendment and Waiver. Neither this Agreement, nor any part hereof, may be modified or amended orally, by trade usage or by course of conduct or dealing, but only by and pursuant to an instrument in writing duly executed and delivered by the party sought to be charged therewith. No covenant or condition of this Agreement can be waived, except by the written consent of the party entitled to receive the benefit thereof. Forbearance or indulgence by a party in any regard whatsoever shall not constitute a waiver of a covenant or condition to be performed by the other party to which the same may apply, and, until complete performance by such other party of such covenant or condition, the party entitled to receive the benefit thereof shall be entitled to invoke any remedy available to it under this Agreement, at law, in equity, by statute or otherwise, despite such forbearance or indulgence. |
(c) | Successors, Assigns and Third Party Beneficiaries. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and permitted assigns and is freely assignable by Employer. Except as expressly provided herein, neither this Agreement nor any rights hereunder may be assigned or transferred, and no duties may be delegated, by any party hereto without the prior written consent of the other party hereto. Each subsidiary or affiliate of Arrow Financial Corporation (and their predecessors, successors and assigns) shall be a third-party beneficiary of this Agreement, as if such subsidiary or affiliate was specifically party hereto. |
(d) | Construction. This Agreement shall not be construed more strictly against one party than against another party merely by virtue of the fact that this Agreement may have been physically prepared by such party, or such party’s counsel, it being agreed that all parties, and their respective counsel, have mutually participated in the negotiation and preparation of this Agreement. Unless the context of this Agreement clearly requires otherwise: (i) references to the plural include the singular and vice versa; (ii) references to any person include such person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement; (iii) references to one gender include all genders; (iv) “including” is not limiting; (v) “or” has the inclusive meaning represented by the phrase “and/or”; (vi) the words “hereof”, “herein”, “hereby”, “hereunder” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement; (vii) article, section, subsection, clause, exhibit and schedule references are to this Agreement unless otherwise specified; (viii) reference to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof; and (ix) general or specific references to any law means such law as amended, modified, codified or re-enacted, in whole or in part, and in effect from time to time. |
(e) | Governing Law. This Agreement is deemed to have been entered into and accepted in the State of New York, and all questions with respect to the formation and construction of this Agreement, and the rights and obligations of the parties hereto, shall be governed by and determined in accordance with the laws of the State of New York, which are applicable to agreements entered into and performed |
(f) | Severability. If any Section (or part thereof) of this Agreement is found by a court of competent jurisdiction to be contrary to, prohibited by or invalid under any applicable law, such court may modify such Section (or part thereof) so, as modified, such Section (or part thereof) will be enforceable and will to the maximum extent possible comply with the apparent intent of the parties in drafting such Section (or part thereof). No such modification or omission of a Section (or part thereof) shall in any way affect or impair such Section (or part thereof) in any other jurisdiction. If, in the sole judgment of Employer, a Section (or part thereof) of this Agreement is so modified or omitted in a manner which eliminates a substantial part of the benefit intended to be received by Employer hereunder, then Employer may rescind this Agreement and Executive shall immediately return to Employer the Separation Payment hereunder. |
(g) | Captions. The captions, headings and titles of the various Sections of this Agreement are for convenience of reference only, and shall not be deemed or construed to limit or expand the substantive provisions of such Sections. |
(h) | Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which together shall constitute a single agreement. A facsimile signature is as good as an original. |
11. | Execution and Delivery; Time to Consider Agreement; Time to Revoke Agreement. This Agreement was presented to Executive on October 17, 2017. Executive has been advised (and hereby is advised) to take this Agreement home, read it, consult with an attorney or attorneys of his choice and carefully consider all of its provisions before signing it. |
EXECUTIVE: /s/ Terry R. Goodemote Terry R. Goodemote | EMPLOYER: ARROW FINANCIAL CORPORATION By: /s/ Thomas J. Murphy Name: Thomas J. Murphy Title: President and CEO |
A. | Employee and Employer previously entered into that certain Executive Separation Agreement and Release dated as of ______________, 2017 (the “Separation Agreement”), pursuant to which Employee, among other things, (i) resigned his director and officer positions with Employer effective as of the date thereof, (ii) accepted continued employment as a non-officer employee of Employer and (iii) agreed to execute and deliver this Agreement within 21 days after the Last Day of Employment as a condition to receiving the Separation Payment. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Separation Agreement. |
B. | Without any admission or concern as to fault, liability or wrongdoing, to ensure an effective and smooth transition in leadership, and to avoid the time, distractions and resource expenditures potentially associated with Employee’s departure, Employer and Employee desire to resolve all matters relating to or arising out of Employee’s employment by Employer on the terms described below. |
C. | Employee is signing this Agreement in order to satisfy a condition to receiving the Separation Payment, |
D. | Employee has been (and hereby is) advised in writing to consult with an attorney prior to finally accepting this Agreement. |
1. | Resignation by Employee; Separation Benefits. Employee has voluntarily and irrevocably resigned his employment with Employer effective as of the Last Date of Employment. The employment of Employee by Employer, in any capacity whatsoever, has terminated and ceased. Employer shall provide to Employee the Separation Payment and the other benefits to which he is entitled in accordance with the terms and conditions of the Separation Agreement, conditional upon Employee’s execution of this Agreement, expiration of the revocation period provided herein and continued performance of all obligations under this Agreement and the Separation Agreement. |
(a) | Prior Agreements, Practices, Policies, Procedures and Plans Superseded. Employee agrees that any agreement (other than the Separation Agreement or as is specifically contemplated in the Separation Agreement) between Employer and Employee with respect to employment, severance or separation payments, is hereby terminated and any such agreement or any other severance practice, |
(b) | Representations. Employee represents and warrants to Employer that (i) Employee (A) has not filed any suit, action, claim, allegation or other proceeding at law or in equity, before any court, governmental agency, arbitration panel or other forum of any nature (an “Action”) with respect to the matters released in Section 2(c) below and (B) will not prosecute, and will immediately dismiss with prejudice, any pending Action with respect to the matters released in Section 2(c) below; (ii) Employee has not assigned to any other person or entity any right(s) or claim(s) Employee may have against Employer; (iii) in deciding to execute this Agreement (A) no fact, evidence, event or transaction currently unknown to Employee, but which may hereinafter become known to Employee, shall affect in any way or any manner the final or unconditional nature of this Agreement; (B) Employee’s execution of this Agreement is a knowing and voluntary act on Employee’s part; (C) Employee has read and fully understands the terms of this Agreement, including the final and binding nature and effect of Employee’s waiver of rights by execution of this Agreement and has been advised (and hereby is advised) in writing to consult with an attorney before signing the Agreement at the time Employee first received this Agreement; (D) Employee has been provided with a reasonable and adequate period of time to consider this Agreement and consult with his attorneys and advisors concerning this Agreement before signing it; and (E) Employee has not been promised anything or provided any consideration for entering into this Agreement that is not specified in this Agreement. In addition, Employee hereby represents and warrants to Employer that he has disclosed to the Chairman of the Arrow Financial Corporation Board of Directors, on or prior to the date hereof, any material violation of federal, state, foreign or local criminal law or regulation that is applicable to Employer, any threatened or pending federal, state, foreign or local governmental criminal investigation against Employer and any practice or policy of Employer that may be unlawful under applicable federal, state, foreign or local criminal law. Further, Employee represents and warrants to Employer that the facts relating to Employee contained in the Preliminary Statement are true and correct. |
(1) | Employee hereby releases, gives up and waives any and all known and unknown rights, causes of action, lawsuits and claims for liability Employee may now or in the future have against any of the Employer Parties (defined below) in any way arising out of, based upon or relating to (i) Employee’s employment with Employer or the termination of or resignation from such employment, (ii) any promise, policy, practice, agreement, action or conduct of any of the Employer Parties to date, or (iii) any fact occurring prior to this date. Employee acknowledges that this means that, among other claims, he is releasing the Employer Parties from and may not bring claims against any of them under (i) Title VII of the Civil Rights Act of 1964 or Sections 1981 and 1983 of the Civil Rights Act of 1866, which prohibit discrimination based on race, color, national origin, ancestry, religion, or sex; (ii) the Age Discrimination in Employment Act, which prohibits discrimination based on age; (iii) the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; (iv) the Americans with Disabilities Act and Sections 503 and 504 of the Rehabilitation Act of 1973, which prohibit discrimination based on disability; (v) the WARN Act, which requires that advance notice be given of certain workforce reductions; (vi) the Employee Retirement Income Security Act, |
(2) | Employer hereby releases, gives up and waives any and all known and unknown rights, causes of action, lawsuits and claims for liability Employer may now or in the future have against Employee in any way arising out of, based upon or relating to (i) Employee’s employment with Employer or the termination of or resignation from such employment, (ii) any promise, policy, agreement, action or conduct of Employee to date, or (iii) any fact occurring prior to this date, except for rights, claims, causes of action and claims for liability against Employee in any way based on any violation by Employee of the Employer’s Code of Conduct, any criminal conduct by Employee, any knowing or intentional violation of law by Employee, or any fraud or breach of fiduciary duty by Employee (“Retained Claims”). Notwithstanding anything contained herein to the contrary, this release does not include (and Employer does not release) any Retained Claims, any claim for breach of this Agreement or the Separation Agreement or any confidentiality or non-solicitation agreement signed by Employee, or any claims arising after this date. |
(d) | Nature of Release. It is expressly understood and agreed that this Agreement is intended to cover and does cover not only all known losses and damages but any future losses and damages not now known or anticipated but which may later develop or be discovered, including the effects and consequences thereof. It is further expressly understood and agreed that this Agreement may be pleaded as a counterclaim to or as a defense in bar or abatement of any action taken by or on behalf of either Employer or Employee. Employee agrees that neither this Agreement nor performance hereunder constitutes or should be construed as an admission by any of the Employer Parties of any fault, liability, wrongdoing, or violation of any Employer policy, any federal, state, foreign or local law or regulation, common law, or any breach of any contract or any other wrongdoing of any type, all of which are expressly denied by Employer. Likewise, Employer agrees that neither this Agreement nor performance hereunder constitutes or should be construed as an admission by Employee of any fault, liability, wrongdoing, or violation of any Employer policy, any federal, state, foreign or local law or regulation, common law, or any breach of any contract or any other wrongdoing of any type, all of which are expressly denied by Employee. |
3. | Covenant Not To Sue; Indemnification. Employee and Employer each agree not to enter into any suit, action or other proceeding at law or in equity (including administrative actions), or to prosecute further any existing suit or action that might presently exist, or to make any claim or demand of any kind or nature against any of the Employer Parties or Employee (as the case may be), in any such case asserting any claim released by Employee or Employer (as the case may be) by Section 4(c)(1) and (2) of this Agreement. If Employer or Employee enters into any such suit, action or other proceeding in violation of this Section 5, the party who does so shall (i) indemnify, defend and hold the other (which, in the case of Employer shall include all the Employer Parties) harmless from and against any and all liabilities, obligations, losses, damages, penalties, claims, action, suits, costs, expenses and disbursements (including attorneys’ fees and expenses and court costs whether or not litigation is commenced and, if litigation is commenced, during all |
(a) | Entire Agreement. This Agreement and the Separation Agreement contains the entire agreement between the parties concerning the separation of the Employee from all positions of the Employee with the Employer. This Agreement, the Separation Agreement and any agreement, instrument or document to be executed in connection herewith (as referenced herein) contain the parties’ entire understanding and agreement with respect to the subject matter hereof (the termination of Employee’s employment and directorships with Employer, the Separation Payment and the treatment of the outstanding equity awards currently held by Employee and the release of any potential related claims). Any discussions, agreements, promises, representations, warranties or statements between the parties or their representatives (whether or not conflicting or inconsistent) that are not expressly contained or incorporated herein or in the Separation Agreement shall be null and void and are merged into this Agreement, except that any confidentiality agreement, non-solicitation agreement, invention or intellectual property rights or assignment, equity award agreement or other agreement between Employer and Employee, and any qualified or non-qualified plan document expressly covering a party’s rights after termination of employment, shall remain in full force and effect, in accordance with its terms, after the execution of this Agreement, except to the extent specified in this Agreement or the Separation Agreement. |
(b) | Modification, Amendment and Waiver. Neither this Agreement, nor any part hereof, may be modified or amended orally, by trade usage or by course of conduct or dealing, but only by and pursuant to an instrument in writing duly executed and delivered by the party sought to be charged therewith. No covenant or condition of this Agreement can be waived, except by the written consent of the party entitled to receive the benefit thereof. Forbearance or indulgence by a party in any regard whatsoever shall not constitute a waiver of a covenant or condition to be performed by the other party to which the same may apply, and, until complete performance by such other party of such covenant or condition, the party entitled to receive the benefit thereof shall be entitled to invoke any |
(c) | Successors, Assigns and Third Party Beneficiaries. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and permitted assigns and is freely assignable by Employer. Except as expressly provided herein, neither this Agreement nor any rights hereunder may be assigned or transferred, and no duties may be delegated, by any party hereto without the prior written consent of the other party hereto. Each subsidiary or affiliate of Arrow Financial Corporation (and their predecessors, successors and assigns) shall be a third-party beneficiary of this Agreement, as if such subsidiary or affiliate was specifically party hereto. |
(d) | Construction. This Agreement shall not be construed more strictly against one party than against another party merely by virtue of the fact that this Agreement may have been physically prepared by such party, or such party’s counsel, it being agreed that all parties, and their respective counsel, have mutually participated in the negotiation and preparation of this Agreement. Unless the context of this Agreement clearly requires otherwise: (i) references to the plural include the singular and vice versa; (ii) references to any person include such person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement; (iii) references to one gender include all genders; (iv) “including” is not limiting; (v) “or” has the inclusive meaning represented by the phrase “and/or”; (vi) the words “hereof”, “herein”, “hereby”, “hereunder” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement; (vii) article, section, subsection, clause, exhibit and schedule references are to this Agreement unless otherwise specified; (viii) reference to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof; and (ix) general or specific references to any law means such law as amended, modified, codified or re-enacted, in whole or in part, and in effect from time to time. |
(e) | Governing Law. This Agreement is deemed to have been entered into and accepted in the State of New York, and all questions with respect to the formation and construction of this Agreement, and the rights and obligations of the parties hereto, shall be governed by and determined in accordance with the laws of the State of New York, which are applicable to agreements entered into and performed entirely within such State, without giving effect to the choice or conflicts of law provisions thereof. Employer and Employee each hereby agree that all claims, actions, suits and proceedings between the parties hereto relating to this Agreement may be filed, tried and litigated in the state courts of the State of New York or (if federal jurisdiction exists) the United States District Court for the Northern District of New York. In connection with the foregoing, the parties hereto consent to the jurisdiction and venue of such courts and expressly waive any claims or defenses of lack of personal jurisdiction of or proper venue by such courts, and any claim that either such forum is not a convenient or the most convenient forum. In the event of a breach of this Agreement, the breaching party agrees to pay all costs of enforcement and collection of any and all remedies and damages, including reasonable attorneys’ fees. |
(f) | Severability. If any Section (or part thereof) of this Agreement is found by a court of competent jurisdiction to be contrary to, prohibited by or invalid under any applicable law, such court may modify such Section (or part thereof) so, as modified, such Section (or part thereof) will be enforceable and will to the maximum extent possible comply with the apparent intent of the parties in drafting such Section (or part thereof). No such modification or omission of a Section (or part thereof) shall in any way affect or impair such Section (or part thereof) in any other jurisdiction. If, |
(g) | Captions. The captions, headings and titles of the various Sections of this Agreement are for convenience of reference only, and shall not be deemed or construed to limit or expand the substantive provisions of such Sections. |
(h) | Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which together shall constitute a single agreement. A facsimile signature is as good as an original. |
5. | Execution and Delivery, Time to Consider Agreement, Time to Revoke Agreement. This Agreement was presented to Employee on October 17, 2017. Employee has been advised (and hereby is advised) to take this Agreement home, read it, consult with an attorney or attorneys of his choice and carefully consider all of its provisions before signing it. |
EXECUTIVE: Terry R. Goodemote | EMPLOYER: ARROW FINANCIAL CORPORATION By: Name: Title: |
5- 10 | 0 0 0 |
Full Years of Service | Percentage of Insurance at Retirement Continued at No Cost to Retiree |
5 but less than 10 | 0% |
10 but less than 25 | 25% |
25 or more | 50% |
EXECUTIVE: Terry R. Goodemote | EMPLOYER: ARROW FINANCIAL CORPORATION By: Name: Title: |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
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