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Arrow Reports Record Net Income of $36.3 Million and 12.6% Loan Growth for 2018

-- Net income for 2018 reached a record high of $36.3 million, up 23.7% year-over-year.

-- Diluted Earnings Per Share (EPS) grew 22.5% to a record $2.50 for the year.

-- Period-end total loan balances reached a new record of $2.2 billion, achieving double-digit growth for the fifth consecutive year.

-- Record highs were also achieved at year-end for total assets and total equity.

-- Profitability, asset quality and capital ratios all remain strong.

GLENS FALLS, N.Y., Jan. 29, 2019 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three- and twelve-month periods ended December 31, 2018. For the fourth quarter of 2018, net income was $8.8 million, an increase of $687 thousand, or 8.5%, from the fourth quarter of 2017. For the year ended December 31, 2018, net income was a record $36.3 million, up 23.7% over net income of $29.3 million for 2017. Diluted EPS was $0.60 for the fourth quarter, up 7.1% from 0.56 from the comparable 2017 quarter, and $2.50 for 2018, up 22.5% from $2.04 in 2017.

Profitability ratios also improved in 2018, as return on average equity (ROE) and return on average assets (ROA) were 13.96% and 1.27%, respectively, for the year, as compared to 12.14% and 1.09%, respectively, for 2017.

Arrow President and CEO Thomas J. Murphy stated, "Arrow's performance throughout 2018 was solid once again, as demonstrated by steady growth, improving profitability, excellent credit quality and our constant commitment to servicing our customers and their communities. I'm so proud of the impact that our company has had on our shareholders, our customers and the communities we serve. Arrow remains well-positioned heading into 2019, as our team continues to focus on long-term planning and responsible growth."

Cash and Stock Dividends: On December 14, 2018, the Company distributed a cash dividend of $0.26 per share. This cash dividend reflected a $0.01 per share increase from the $0.25 cash dividend paid in the fourth quarter of 2017. Additionally, a 3% stock dividend was distributed on September 27, 2018. This is the tenth consecutive year the Company declared a stock dividend. The December 14, 2018 cash dividend was 7.1% higher than the cash dividend paid by the Company in the fourth quarter of 2017 when adjusted for the 3% stock dividend. All prior-period per-share data have been adjusted to reflect the September 27, 2018 stock dividend.

The following expands on our fourth quarter and 2018 results:

Loan Growth: At December 31, 2018, total loan balances reached a record high of $2.2 billion, up $245.4 million, or 12.6%, from the prior-year level. This represents the fifth consecutive year of double-digit loan growth. The growth was spread across all three of our major categories: consumer, residential real estate and commercial. The consumer loan portfolio grew by $116.7 million, or 19.4%, over the balance at December 31, 2017, primarily as a result of continued strength in the indirect automobile lending program. The residential real estate loan portfolio increased $80.8 million, or 10.4%, while commercial loans increased $47.9 million, or 8.4%, over the balances at December 31, 2017.

Deposit Growth: At December 31, 2018, total deposit balances reached $2.3 billion, up by $100.5 million, or 4.5%, from the prior-year level. Noninterest-bearing deposits grew by $30.8 million, or 7.0%, during 2018, and represented 20.2% of total deposits at year-end, up from the prior-year level of 19.7%. Higher market rates contributed to increased demand for savings and time deposits; as these balances increased by $123.5 million and $62.7 million, respectively.

Net Interest Income: The Net Interest Margin (NIM) increased to 3.07% for the year ending December 31, 2018, an increase of 0.05% from the 2017 level of 3.02%. The improved NIM, combined with loan growth generated $84.0 million in net interest income in 2018, a $6.4 million, or 8.2%, increase over 2017. NIM was 3.03% for the fourth quarter of 2018, as compared to 3.08% for the same quarter of 2017. For the fourth quarter of 2018, net interest income was $21.7 million, an increase of 6.6% as compared to the fourth quarter of 2017.

Noninterest Income: Noninterest income of $28.9 million for the year ended December 31, 2018 increased by 4.7% when compared to $27.6 million for the year ended December 31, 2017. Income generated from fiduciary activities increased by $838 thousand, or 10%, in 2018. Insurance revenue decreased in 2018 by $724 thousand, but still contributed $7.9 million in noninterest income. Meanwhile, service fee income increased in 2018 by $543 thousand, or 5.7%, over 2017, and all other noninterest income increased by $647 thousand. The increase in total other noninterest income in 2018 was positively impacted by a $213 thousand net gain on the fair value of equity securities. Noninterest income for the three-month period ended December 31, 2018 increased $47 thousand as compared to the fourth quarter of 2017.

Noninterest Expense: Noninterest expense for the year ending December 31, 2018 increased by $2.4 million, or 3.7%, to $65.1 million compared to $62.7 million in 2017. The largest component of noninterest expense is salaries and benefits paid to our employees, which totaled $38.8 million in 2018. Noninterest expense for the three-month period ended December 31, 2018 increased $838 thousand, or 5.2%, as compared to the fourth quarter of 2017.

Provision for Income Taxes: The provision for income taxes for 2018 was $9.0 million compared to $10.5 million for 2017. The effective income tax rates for 2018 and 2017 were 19.9% and 26.4%, respectively, which reflects the impact of the Tax Cuts and Jobs Act of 2017.

Asset Quality: Asset quality remained strong, as evidenced by low levels of nonperforming assets and charge-offs. Net loan losses for the fourth quarter of 2018, expressed as an annualized percentage of average loans outstanding, were 0.08%. Net loan losses for the full year 2018 were 0.05% of average loans outstanding, down one basis point from the 2017 ratio of 0.06%. Nonperforming assets of $6.8 million at December 31, 2018, represented 0.23% of period-end assets, down from 0.28% at December 31, 2017.

The Company's allowance for loan losses was $20.2 million at December 31, 2018, which represented 0.92% of loans outstanding, a decrease of three basis points from the ratio of 0.95% at year-end 2017. This decrease was primarily driven by continued strong asset quality. When expressed as a percentage of nonperforming loans, the allowance for loan loss coverage ratio grew to 365.7% at year-end 2018, compared to 312.4% at year-end 2017.

Capital: Total shareholders' equity grew to a record of $269.6 million at period-end, an increase of $20.0 million, or 8.0%, above the year-end 2017 balance. The Company's regulatory capital ratios remained strong in 2018. At December 31, 2018, the Company's Common Equity Tier 1 Capital Ratio was 12.89% and Total Risk-Based Capital Ratio was 14.86%. The capital ratios of the Company and both its subsidiary banks continued to significantly exceed the "well capitalized" regulatory standards.

Industry Recognition: Both of the Company's banking subsidiaries maintained their BauerFinancial, Inc. 5-Star Superior Bank rating. Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company have continued to earn this designation for the last 47 and 39 quarters, respectively.

About Arrow: Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisers, Inc. and Upstate Agency, LLC.

Non-GAAP Financial Measures Reconciliation: In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. Certain non-GAAP financial measures include: tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income, tax-equivalent and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Selected Quarterly Information."

Safe Harbor Statement: The information contained in this news release may contain statements that are not historical in nature but rather are based on management's beliefs, assumptions, expectations, estimates and projections about the future. These statements may be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication. The Company undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2017, and other filings with the Securities and Exchange Commission.

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts - Unaudited)


















Three Months Ended


Twelve Months Ended


December 31,


December 31,


2018


2017


2018


2017

INTEREST AND DIVIDEND INCOME








Interest and Fees on Loans

$

22,041



$

18,509



$

81,647



$

70,202


Interest on Deposits at Banks

237



106



711



348


Interest and Dividends on Investment Securities:








Fully Taxable

2,454



1,957



8,582



7,884


Exempt from Federal Taxes

1,268



1,563



5,563



6,223


Total Interest and Dividend Income

26,000



22,135



96,503



84,657


INTEREST EXPENSE








Interest-Bearing Checking Accounts

453



422



1,618



1,510


Savings Deposits

1,323



408



3,457



1,371


Time Deposits over $250,000

350



95



1,183



282


Other Time Deposits

509



248



1,420



950


Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase

15



15



62



44


Federal Home Loan Bank Advances

1,439



433



3,779



2,083


Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts

254



200



966



766


Total Interest Expense

4,343



1,821



12,485



7,006


NET INTEREST INCOME

21,657



20,314



84,018



77,651


Provision for Loan Losses

646



1,157



2,607



2,736


NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

21,011



19,157



81,411



74,915


NONINTEREST INCOME








Income From Fiduciary Activities

2,149



2,133



9,255



8,417


Fees for Other Services to Customers

2,579



2,469



10,134



9,591


Insurance Commissions

1,769



2,186



7,888



8,612


Net (Loss) Gain on Securities

(142)



(458)



213



(448)


Net Gain on Sales of Loans

20



115



135



546


Other Operating Income

424



307



1,324



927


Total Noninterest Income

6,799



6,752



28,949



27,645


NONINTEREST EXPENSE








Salaries and Employee Benefits

9,836



9,937



38,788



37,677


Occupancy Expenses, Net

2,564



2,150



9,787



9,560


FDIC Assessments

223



212



881



891


Other Operating Expense

4,258



3,744



15,599



14,577


Total Noninterest Expense

16,881



16,043



65,055



62,705


INCOME BEFORE PROVISION FOR INCOME TAXES

10,929



9,866



45,305



39,855


Provision for Income Taxes

2,171



1,795



9,026



10,529


NET INCOME

$

8,758



$

8,071



$

36,279



$

29,326


Average Shares Outstanding1:








Basic

14,451



14,322



14,408



14,310


Diluted

14,514



14,426



14,488



14,406


Per Common Share:








Basic Earnings

$

0.61



$

0.56



$

2.52



$

2.05


Diluted Earnings

0.60



0.56



2.50



2.04


1 Share and per share data have been restated for the September 27, 2018, 3% stock dividend.

 

 

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts - Unaudited)










December 31,
2018


December 31,
2017

ASSETS




Cash and Due From Banks

$

56,529



$

42,562


Interest-Bearing Deposits at Banks

27,710



30,276


Investment Securities:




Available-for-Sale

317,535



300,200


Held-to-Maturity (Approximate Fair Value of $280,338 at
December 31, 2018, and $335,901 at December 31, 2017)

283,476



335,907


Equity Securities

1,774




Other Investments

15,506



9,949


Loans

2,196,215



1,950,770


Allowance for Loan Losses

(20,196)



(18,586)


Net Loans

2,176,019



1,932,184


Premises and Equipment, Net

30,446



27,619


Goodwill

21,873



21,873


Other Intangible Assets, Net

1,852



2,289


Other Assets

55,614



57,606


Total Assets

$

2,988,334



$

2,760,465


LIABILITIES




Noninterest-Bearing Deposits

$

472,768



$

441,945


Interest-Bearing Checking Accounts

790,781



907,315


Savings Deposits

818,048



694,573


Time Deposits over $250,000

73,583



38,147


Other Time Deposits

190,404



163,136


Total Deposits

2,345,584



2,245,116


Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase

54,659



64,966


Federal Home Loan Bank Overnight Advances

234,000



105,000


Federal Home Loan Bank Term Advances

45,000



55,000


Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts

20,000



20,000


Other Liabilities

19,507



20,780


Total Liabilities

2,718,750



2,510,862


STOCKHOLDERS' EQUITY




Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized




Common Stock, $1 Par Value; 20,000,000 Shares Authorized
 (19,035,565 Shares Issued at December 31, 2018, and
18,481,301 Shares Issued at December 31, 2017)

19,035



18,481


Additional Paid-in Capital

314,533



290,219


Retained Earnings

29,257



28,818


Unallocated ESOP Shares (5,001 Shares at December 31, 2018, and 9,643 Shares at December 31, 2017)

(100)



(200)


Accumulated Other Comprehensive Loss

(13,810)



(8,514)


Treasury Stock, at Cost (4,558,207 Shares at December 31, 2018, and 4,541,524 Shares at December 31, 2017)

(79,331)



(79,201)


Total Stockholders' Equity

269,584



249,603


Total Liabilities and Stockholders' Equity

$

2,988,334



$

2,760,465


 

 

Arrow Financial Corporation

Selected Quarterly Information

(Dollars In Thousands, Except Per Share Amounts - Unaudited)





















Quarter Ended

12/31/2018



9/30/2018



6/30/2018



3/31/2018



12/31/2017


Net Income

$

8,758



$

9,260



$

9,730



$

8,531



$

8,071


Transactions Recorded in Net Income (Net of Tax):










Net Realized Gain (Loss) on Available-for-Sale Securities

16









(278)


Net Unrealized (Loss) Gain on Equity Securities

(106)



85



166



13




Tax Benefit from Net Deferred Tax Liability Revaluation









1,116












Share and Per Share Data:1










Period End Shares Outstanding

14,472



14,441



14,424



14,368



14,348


Basic Average Shares Outstanding

14,451



14,431



14,394



14,354



14,322


Diluted Average Shares Outstanding

14,514



14,520



14,480



14,436



14,426


Basic Earnings Per Share

$

0.61



$

0.64



$

0.68



$

0.59



$

0.56


Diluted Earnings Per Share

0.60



0.64



0.67



0.59



0.56


Cash Dividend Per Share

0.260



0.252



0.243



0.243



0.243












Selected Quarterly Average Balances:















  Interest-Bearing Deposits at Banks

$

34,782



$

30,522



$

28,543



$

27,978



$

27,047


  Investment Securities

637,341



636,847



647,913



642,442



660,043


  Loans

2,160,435



2,089,651



2,026,598



1,971,240



1,930,590


  Deposits

2,347,231



2,279,709



2,325,202



2,305,736



2,284,206


  Other Borrowed Funds

315,172



314,304



219,737



184,613



187,366


  Shareholders' Equity

268,503



263,139



256,358



251,109



247,253


  Total Assets

2,954,031



2,879,854



2,823,061



2,763,706



2,744,180


Return on Average Assets, annualized

1.18

%


1.28

%


1.38

%


1.25

%


1.17

%

Return on Average Equity, annualized

12.94

%


13.96

%


15.22

%


13.78

%


12.95

%

Return on Average Tangible Equity, annualized 2

14.20

%


15.36

%


16.80

%


15.24

%


14.36

%

Average Earning Assets

2,831,438



2,757,020



2,703,054



2,641,660



2,617,680


Average Paying Liabilities

2,189,233



2,110,924



2,100,085



2,050,661



2,029,811


Interest Income

26,000



24,495



23,590



22,418



22,135


Tax-Equivalent Adjustment 3

376



376



468



491



980


Interest Income, Tax-Equivalent 3

26,376



24,871



24,058



22,909



23,115


Interest Expense

4,343



3,498



2,628



2,016



1,821


Net Interest Income

21,657



20,997



20,962



20,402



20,314


Net Interest Income, Tax-Equivalent 3

22,033



21,373



21,430



20,893



21,294


Net Interest Margin, annualized

3.03

%


3.02

%


3.11

%


3.13

%


3.08

%

Net Interest Margin, Tax-Equivalent, annualized 3

3.09

%


3.08

%


3.18

%


3.21

%


3.23

%











Efficiency Ratio Calculation: 4










Noninterest Expense

$

16,881



$

16,026



$

16,192



$

15,955



$

16,045


Less: Intangible Asset Amortization

65



65



66



67



69


Net Noninterest Expense

$

16,816



$

15,961



$

16,126



$

15,888



$

15,976


Net Interest Income, Tax-Equivalent

$

22,033



$

21,373



$

21,430



$

20,893



$

21,294


Noninterest Income

6,799



7,350



7,911



6,888



6,752


Less: Net (Loss) Gain on Sales of Securities

20









(458)


Less: Net (Loss) Gain on Equity Securities

$

(142)



114



223



18




Net Gross Income

$

28,954



$

28,609



$

29,118



$

27,763



$

28,504


Efficiency Ratio

58.08

%


55.79

%


55.38

%


57.23

%


56.05

%











Period-End Capital Information:










Total Stockholders' Equity (i.e. Book Value)

$

269,584



$

264,810



$

259,488



$

252,734



$

249,603


Book Value per Share 1

18.63



18.34



17.99



17.59



17.40


Goodwill and Other Intangible Assets, net

23,725



23,827



23,933



24,045



24,162


Tangible Book Value per Share 1,2

16.99



16.69



16.33



15.92



15.71












Capital Ratios:5










Tier 1 Leverage Ratio

9.61

%


9.67

%


9.65

%


9.62

%


9.49

%

Common Equity Tier 1 Capital Ratio 

12.89

%


12.89

%


13.01

%


12.97

%


12.89

%

Tier 1 Risk-Based Capital Ratio

13.87

%


13.90

%


14.04

%


14.03

%


13.97

%

Total Risk-Based Capital Ratio

14.86

%


14.90

%


15.06

%


15.04

%


14.99

%











Assets Under Trust Administration & Investment Mgmt

$

1,385,752



$

1,551,289



$

1,479,753



$

1,470,191



$

1,452,994


 

 

Arrow Financial Corporation

Selected Quarterly Information - Continued

(Dollars In Thousands, Except Per Share Amounts - Unaudited)






















Footnotes:




















1.

Share and per share data have been restated for the September 27, 2018, 3% stock dividend.



2.

Non-GAAP Financial Measure Reconciliation: 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.



12/31/2018


9/30/2018


6/30/2018


3/31/2018


12/31/2017


Total Stockholders' Equity (GAAP)

$

269,584



$

264,810



$

259,488



$

252,734



$

249,603



Less: Goodwill and Other Intangible assets, net

23,725



23,827



23,933



24,045



24,162



Tangible Equity (Non-GAAP)

$

245,859



$

240,983



$

235,555



$

228,689



$

225,441














Period End Shares Outstanding

14,472



14,441



14,424



14,368



14,348



Tangible Book Value per Share (Non-GAAP)

$

16.99



$

16.69



$

16.33



$

15.92



$

15.71



Net Income

8,758



9,260



9,730



8,531



8,071



Return on Tangible Equity (Net Income/Tangible Equity - Annualized)

14.20

%


15.36

%


16.80

%


15.24

%


14.36

%












3.

Non-GAAP Financial Measure Reconciliation: 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.



12/31/2018


9/30/2018


6/30/2018


3/31/2018


12/31/2017


Interest Income (GAAP)

$

26,000



$

24,495



$

23,590



$

22,418



$

22,135



Add: Tax Equivalent Adjustment (Non-GAAP)

376



376



468



491



980



Interest Income - Tax Equivalent (Non-GAAP)

$

26,376



$

24,871



$

24,058



$

22,909



$

23,115














Net Interest Income (GAAP)

$

21,657



$

20,997



$

20,962



$

20,402



$

20,314



Add: Tax-Equivalent adjustment (Non-GAAP)

376



376



468



491



980



Net Interest Income - Tax Equivalent (Non-GAAP)

$

22,033



$

21,373



$

21,430



$

20,893



$

21,294



Average Earning Assets

2,831,438



2,757,020



2,703,054



2,641,660



2,617,680



Net Interest Margin (Non-GAAP)*

3.09

%


3.08

%


3.18

%


3.21

%


3.23

%












4.

Non-GAAP Financial Measure Reconciliation: 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).












5.

For the current quarter, all of the regulatory capital ratios in the table above, as well as the Total Risk-Weighted Assets and Common Equity Tier 1 Capital amounts listed in the table below, are estimates based on, and calculated in accordance with bank regulatory capital rules. All prior quarters reflect actual results. The December 31, 2018 CET1 ratio listed in the tables (i.e., 12.89%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).



12/31/2018


9/30/2018


6/30/2018


3/31/2018


12/31/2017


Total Risk Weighted Assets

2,046,495



1,999,849



1,934,890



1,889,719



1,856,242



Common Equity Tier 1 Capital

283,913



257,852



259,488



265,066



259,378



Common Equity Tier 1 Ratio

12.89

%


12.89

%


13.01

%


12.97

%


12.89

%














    * Quarterly ratios have been annualized











 

 

Arrow Financial Corporation

Consolidated Financial Information

(Dollars in Thousands - Unaudited)









Quarter Ended:

12/31/2018


12/31/2017

Loan Portfolio




Commercial Loans

$

136,890



$

129,249


Commercial Real Estate Loans

484,562



444,248


  Subtotal Commercial Loan Portfolio

621,452



573,497


Consumer Loans

719,510



602,827


Residential Real Estate Loans

855,253



774,446


Total Loans

$

2,196,215



$

1,950,770


Allowance for Loan Losses




Allowance for Loan Losses, Beginning of Quarter

$

20,003



$

17,695


Loans Charged-off

(573)



(363)


Recoveries of Loans Previously Charged-off

120



97


Net Loans Charged-off

(453)



(266)


Provision for Loan Losses

646



1,157


Allowance for Loan Losses, End of Quarter

$

20,196



$

18,586


Nonperforming Assets




Nonaccrual Loans

$

4,159



$

5,526


Loans Past Due 90 or More Days and Accruing

1,225



319


Loans Restructured and in Compliance with Modified Terms

138



105


Total Nonperforming Loans

5,522



5,950


Repossessed Assets

130



109


Other Real Estate Owned

1,130



1,738


Total Nonperforming Assets

$

6,782



$

7,797


Key Asset Quality Ratios




Net Loans Charged-off to Average Loans, Quarter-to-date

  Annualized

0.08

%


0.05

%

Provision for Loan Losses to Average Loans, Quarter-to-date

  Annualized

0.12

%


0.24

%

Allowance for Loan Losses to Period-End Loans

0.92

%


0.95

%

Allowance for Loan Losses to Period-End Nonperforming Loans

365.74

%


312.37

%

Nonperforming Loans to Period-End Loans

0.25

%


0.31

%

Nonperforming Assets to Period-End Assets

0.23

%


0.28

%

Twelve-Month Period Ended:




Allowance for Loan Losses




Allowance for Loan Losses, Beginning of Year

$

18,586



$

17,012


Loans Charged-off

(1,533)



(1,559)


Recoveries of Loans Previously Charged-off

536



397


Net Loans Charged-off

(997)



(1,162)


Provision for Loan Losses

2,607



2,736


Allowance for Loan Losses, End of Year

$

20,196



$

18,586


Key Asset Quality Ratios




Net Loans Charged-off to Average Loans

0.05

%


0.06

%

Provision for Loan Losses to Average Loans

0.13

%


0.15

%

 

Cision

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