NWFL Norwood Financial Corporation

Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and fiscal year ended December 31, 2024.

Jim Donnelly, President and Chief Executive Officer of Norwood Financial Corp and Wayne Bank, stated, “During the fourth quarter, we successfully completed a capital raise that enabled us to reposition our investment portfolio for improved yields on the portfolio in future periods. While we incurred a one-time $20 million loss as a result of this repositioning, we believe the portfolio is better positioned for the current and future interest rate environment. Excluding this loss, we performed well during the fourth quarter, delivering higher net interest income year-over-year for both the fourth quarter and the full year. As a result of these actions, we believe the Company is financially stronger and better protected from changes in interest rates and will enhance our future performance.”

Selected Financial Highlights

(dollars in thousands, except per share data)	Three Months Ended						Twelve Months Ended
	December 31, 2024						December 31, 2024
	2024		2023		Change		2024		2023		Change
Net interest income	16,625		15,293		1,332		62,191		62,067		124
Net interest spread (fte)	2.31%		2.23%		8 bps		2.17%		2.47%		(30 bps	)
Net interest margin (fte)	3.04%		2.93%		11 bps		2.91%		3.06%		(15 bps	)
Net income (loss)	(12,651	)	355		(13,006	)	(160	)	16,759		(16,919	)
Diluted earnings per share	(1.54	)	0.04		(1.41	)	(0.02	)	2.07		(2.09	)
Return on average assets	(2.19%	)	0.06%		(225 bps	)	-0.01%		0.79%		(80 bps	)
Return on tangible equity	(30.77%	)	1.01%		(3,178 bps	)	(0.10%	)	11.66%		(1,167 bps	)
Discussion of financial results for the three months ended December 31, 2024: The Company has a net loss of $12.7 million for the three months ended December 31, 2024. This was $13 million lower than the same period last year due one-time $20 million loss incurred on the sale of securities during December. Net interest income was higher during the fourth quarter of 2024 than 2023 as increases in asset yields outpaced increases in yields on liabilities. Correspondingly, the net interest margin in the fourth quarter was 3.04% in 2024 compared to 2.93% in 2023. Discussion of financial results for the year ended December 31, 2024: The Company posted a had a net loss of $160 thousand, or -$0.02 per diluted share, for the full-fiscal year ended year December 31, 2024 compared to net income of $16.8 million, or $2.07 per diluted share, for the fiscal year ended December in31. 2023. This loss was primarily due to a one-time $20 million loss incurred on the sale of securities during December 2024. The full-year net interest margin was 2.91% in 2024 versus 3.06% in 2023. Deposit costs were higher in 2024, especially in the earlier part of the year, before the Federal Reserve began to cut rates. Total non-interest expenses for 2024 were $48.6 million compared to $43.5 million in 2023. The increase was generally due to higher compensation and data processing costs. Adjusted net income for the year was lower as higher net interest income and total other income was more than offset by an increase in total other expenses. As of December 31, 2024, total assets were $2.317 billion, compared to $2.201 billion at December 31, 2023. Loans receivable were $1.693 billion, total deposits were $1.859 billion, and stockholders’ equity was $213.5 million. Tangible Common Equity was 8.05% as of December 31, 2024, versus 6.98% at the end of 2023.
The following non-GAAP financial measures exclude the one-time $20.0 million net realized loss incurred in the fourth quarter as a result of the repositioning of our investment portfolio. Please see “Non-GAAP Financial Measures” below for a reconciliation of all non-GAAP financial measures.
(dollars in thousands, except per share data)	Three Months Ended						Twelve Months Ended
	December 31, 2024						December 31, 2024
	2024		2023		Change		2024		2023		Change
Adjusted net income	3,119		355		2,764		15,610		16,759		(1,149	)
Adjusted diluted earnings per share	0.38		0.04		0.34		1.93		2.07		(0.14	)
Adjusted return on average assets	0.54%		0.06%		48 bps		0.69%		0.79%		(10 bps	)
Adjusted return on tangible equity	7.59%		1.01%		654 bps		9.97%		11.66%		(169 bps	)

Norwood Financial Corp is the parent company of Wayne Bank, which operates from 16 offices throughout Northeastern Pennsylvania and 14 offices in 4 Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Non-GAAP Financial Measures

This release references adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity, all of which are non-GAAP (Generally Accepted Accounting Principles) financial measures. Adjusted values were derived by reversing the effect of loss on sale of securities in 2024 along with the attendant tax effect. We believe the presentation of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity ensures comparability of these measures as the portfolio restructuring is not something the Company expects to be a recurring event.

Adjusted Return on Average Assets
(Dollars in thousands)
	Three Months Ended December 31,									Twelve Months Ended December 31,
		2024				2023					2024				2023
Net (loss) income	$	(12,651	)		$	355				$	(160	)		$	16,759
Average assets		2,299,732				2,166,821					2,250,171				2,128,570
Return on average assets (annualized)		-2.19	%			0.06	%				-0.01	%			0.79	%
Net (loss) income		(12,651	)			355					(160	)			16,759
Net realized losses on sale of securities		19,962				0					19,962				0
Tax effect at 21%		(4,192	)			0					(4,192	)			0
Adjusted Net Income (Non-GAAP)		3,119				355					15,610				16,759
Average assets		2,299,732				2,166,821					2,250,171				2,128,570
Adjusted return on average assets (annualized)
(Non-GAAP)		0.54	%			0.06	%				0.69	%			0.79	%
Adjusted Return on Average Tangible Shareholders' Equity
(Dollars in thousands)
	Three Months Ended December 31,									Twelve Months Ended December 31,
		2024				2023					2024				2023
Net (loss) income	$	(12,651	)		$	355				$	(160	)		$	16,759
Average shareholders' equity		192,981				168,317					185,952				173,273
Average intangible assets		29,424				29,495					29,449				29,526
Average tangible shareholders' equity		163,557				138,822					156,503				143,747
Return on average tangible shareholders' equity (annualized)		-30.77	%			1.01	%				-0.10	%			11.66	%
Net (loss) income		(12,651	)			355					(160	)			16,759
Net realized losses on sale of securities		19,962				0					19,962				0
Tax effect at 21%		(4,192	)			0					(4,192	)			0
Adjusted Net Income (Non-GAAP)		3,119				355					15,610				16,759
Average tangible shareholders' equity		163,557				138,822					156,503				143,747
Adjusted return on average shareholders' equity (annualized)
(Non-GAAP)		7.59	%			1.01	%				9.97	%			11.66	%
Adjusted Earnings Per Share
(Dollars in thousands)
	Three Months Ended December 31,									Twelve Months Ended December 31,
		2024				2023					2024				2023
GAAP-Based Earnings Per Share, Basic	$	(1.54	)		$	0.04				$	(0.02	)		$	2.08
GAAP-Based Earnings Per Share, Diluted	$	(1.54	)		$	0.04				$	(0.02	)		$	2.07
Net (Loss) Income		(12,651	)			355					(160	)			16,759
Net realized losses on sale of securities		19,962				0					19,962				0
Tax effect at 21%		(4,192	)			0					(4,192	)			0
Adjusted Net Income (Non-GAAP)		3,119				355					15,610				16,759
Adjusted Earnings per Share, Basic (Non-GAAP)	$	0.38			$	0.04				$	1.93			$	2.08
Adjusted Earnings per Share, Diluted (Non-GAAP)	$	0.38			$	0.04				$	1.93			$	2.07

The following table reconciles average equity to average tangible equity:

Tangible Book Value
(Dollars in thousands)
	December 31,
		2024				2023
Total shareholders' equity		213,508				181,070
Adjustments:
Goodwill		(29,266	)			(29,266	)
Other intangible assets		(152	)			(221	)
Tangible common equity (Non-GAAP)		184,090				151,583
Common shares outstanding		9,272,906				8,110,157
Book value per common share		23.02				22.33
Tangible book value per common share (Non-GAAP)		19.85				18.69

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact:	John M. McCaffery
	Executive Vice President &
	Chief Financial Officer
	NORWOOD FINANCIAL CORP
	272-304-3003
	www.waynebank.com

NORWOOD FINANCIAL CORP
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
(unaudited)
		December 31
		2024				2023
ASSETS
Cash and due from banks	$	27,562			$	28,533
Interest-bearing deposits with banks		44,777				37,587
Cash and cash equivalents		72,339				66,120
Securities available for sale		397,846				406,259
Loans receivable		1,713,638				1,603,618
Less: Allowance for credit losses		19,843				18,968
Net loans receivable		1,693,795				1,584,650
Regulatory stock, at cost		13,366				7,318
Bank premises and equipment, net		19,657				17,838
Bank owned life insurance		46,657				46,439
Foreclosed real estate owned		-				97
Accrued interest receivable		8,466				8,123
Deferred tax assets, net		17,696				21,353
Goodwill		29,266				29,266
Other intangible assets		152				221
Other assets		18,222				13,395
TOTAL ASSETS	$	2,317,462			$	2,201,079
LIABILITIES
Deposits:
Non-interest bearing demand	$	381,479			$	399,545
Interest-bearing		1,477,684				1,395,614
Total deposits		1,859,163				1,795,159
Short-term borrowings		113,069				74,076
Other borrowings		101,793				124,236
Accrued interest payable		12,615				10,510
Other liabilities		17,314				16,028
TOTAL LIABILITIES		2,103,954				2,020,009
STOCKHOLDERS' EQUITY
Preferred Stock, no par value per share, authorized 5,000,000 shares		-				-
Common Stock, $.10 par value per share,
authorized: 20,000,000 shares,
issued: 2024: 9,487,067 shares, 2023: 8,310,847 shares		949				831
Surplus		98,513				97,700
Retained earnings		152,964				135,284
Treasury stock, at cost: 2024: 214,161 shares, 2023: 200,690 shares		(5,797	)			(5,397	)
Accumulated other comprehensive loss		(33,121	)			(47,348	)
TOTAL STOCKHOLDERS' EQUITY		213,508				181,070
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	2,317,462			$	2,201,079

NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
	Three Months Ended December 31,									Twelve Months Ended December 31,
			2024				2023					2024				2023
INTEREST INCOME
Loans receivable, including fees	$		26,122		$		23,328			$		99,388		$		85,209
Securities			2,789				2,504					10,424				9,922
Other			574				253					2,768				409
Total Interest income			29,485				26,085					112,580				95,540
INTEREST EXPENSE
Deposits			10,984				8,910					42,334				26,029
Short-term borrowings			348				346					1,363				3,048
Other borrowings			1,528				1,536					6,692				4,396
Total Interest expense			12,860				10,792					50,389				33,473
NET INTEREST INCOME			16,625				15,293					62,191				62,067
PROVISION FOR CREDIT LOSSES		$	1,604			$	6,116				$	2,673			$	5,548
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			15,021				9,177					59,518				56,519
OTHER INCOME
Service charges and fees			1,595				1,421					5,959				5,613
Income from fiduciary activities			224				210					943				898
Net realized (losses) gains on sales of securities			(19,962	)			-					(19,962	)			(209	)
Gains on sales of loans, net			50				36					195				63
Gains on sales of foreclosed real estate owned			-				66					32				80
Earnings and proceeds on life insurance policies			275				242					1,056				1,012
Other			159				148					626				667
Total other income			(17,659	)			2,123					(11,151	)			8,124
OTHER EXPENSES
Salaries and employee benefits			6,690				5,672					25,018				23,565
Occupancy, furniture and equipment			1,291				1,265					5,049				5,083
Data processing and related operations			1,312				877					4,520				3,342
Taxes, other than income			163				77					615				566
Professional fees			504				544					2,173				1,676
FDIC Insurance assessment			335				287					1,344				985
Foreclosed real estate			9				17					54				129
Amortization of intangibles			15				19					69				85
Other			3,100				2,091					9,783				8,066
Total other expenses			13,419				10,849					48,625				43,497
INCOME BEFORE TAX (BENEFIT) EXPENSE			(16,057	)			451					(258	)			21,146
INCOME TAX (BENEFIT) EXPENSE			(3,406	)			96					(98	)			4,387
NET (LOSS) INCOME	$		(12,651	)	$		355			$		(160	)	$		16,759
Basic (loss) earnings per share	$		(1.54	)	$		0.04			$		(0.02	)	$		2.08
Diluted (loss) earnings per share	$		(1.54	)	$		0.04			$		(0.02	)	$		2.07

NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
	For the Quarter Ended
	December 31, 2024								September 30, 2024								December 31, 2023
	Average						Average		Average						Average		Average						Average
	Balance			Interest			Rate		Balance			Interest			Rate		Balance			Interest			Rate
	(2)			(1)			(3)		(2)			(1)			(3)		(2)			(1)			(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	46,629		$	574		4.90	%	$	36,221		$	497		5.46	%	$	18,282		$	253		5.49	%
Securities available for sale:
Taxable		404,777			2,434		2.39			392,168			2,161		2.19			403,044			2,126		2.09
Tax-exempt (1)		65,628			449		2.72			67,563			461		2.71			70,049			479		2.71
Total securities available for sale (1)		470,405			2,883		2.44			459,731			2,622		2.27			473,093			2,605		2.18
Loans receivable (1) (4) (5)		1,690,650			26,246		6.18			1,651,921			25,575		6.16			1,605,496			23,422		5.79
Total interest-earning assets		2,207,684			29,703		5.35			2,147,873			28,694		5.31			2,096,871			26,280		4.97
Non-interest earning assets:
Cash and due from banks		27,283								28,193								27,791
Allowance for credit losses		(18,741	)							(17,944	)							(16,728	)
Other assets		83,506								78,344								58,231
Total non-interest earning assets		92,048								88,593								69,294
Total Assets	$	2,299,732							$	2,236,466							$	2,166,165
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	528,330		$	3,017		2.27		$	461,897		$	2,782		2.40		$	463,792		$	2,059		1.76
Savings		209,362			162		0.31			221,366			13		0.02			226,809			119		0.21
Time		764,819			7,805		4.06			734,235			7,758		4.20			679,587			6,732		3.93
Total interest-bearing deposits		1,502,511			10,984		2.91			1,417,498			10,553		2.96			1,370,188			8,910		2.58
Short-term borrowings		46,267			348		2.99			53,622			323		2.40			59,836			346		2.29
Other borrowings		133,620			1,528		4.55			146,357			1,680		4.57			131,071			1,536		4.65
Total interest-bearing liabilities		1,682,398			12,860		3.04			1,617,477			12,556		3.09			1,561,095			10,792		2.74
Non-interest bearing liabilities:
Demand deposits		394,001								400,314								411,434
Other liabilities		30,352								29,540								25,316
Total non-interest bearing liabilities		424,353								429,854								436,750
Stockholders' equity		192,981								189,135								168,320
Total Liabilities and Stockholders' Equity	$	2,299,732							$	2,236,466							$	2,166,165
Net interest income/spread (tax equivalent basis)					16,843		2.31	%					16,138		2.23	%					15,488		2.23	%
Tax-equivalent basis adjustment					(218	)							(207	)							(195	)
Net interest income				$	16,625							$	15,931							$	15,293
Net interest margin (tax equivalent basis)							3.04	%							2.99	%							2.93	%
(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.
	Year to Date
	December 31, 2024								September 30, 2024								December 31, 2023
	Average						Average		Average						Average		Average						Average
	Balance			Interest			Rate		Balance			Interest			Rate		Balance			Interest			Rate
	(2)			(1)			(3)		(2)			(1)			(3)		(2)			(1)			(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	51,433		$	2,768		5.38	%	$	53,046		$	2,194		5.52	%	$	7,537		$	409		5.43	%
Securities available for sale:
Taxable		400,050			8,948		2.24			398,462			6,514		2.18			411,633			8,390		2.04
Tax-exempt (1)		68,041			1,868		2.75			68,852			1,419		2.75			70,598			1,940		2.75
Total securities available for sale (1)		468,091			10,816		2.31			467,314			7,933		2.27			482,231			10,330		2.14
Loans receivable (1) (4) (5)		1,646,128			99,815		6.06			1,631,179			73,569		6.02			1,565,665			85,550		5.46
Total interest-earning assets		2,165,652			113,399		5.24			2,151,539			83,696		5.20			2,055,433			96,289		4.68
Non-interest earning assets:
Cash and due from banks		26,629								26,409								26,633
Allowance for credit losses		(18,450	)							(18,353	)							(18,122	)
Other assets		76,340								73,935								64,626
Total non-interest earning assets		84,519								81,991								73,137
Total Assets	$	2,250,171							$	2,233,530							$	2,128,570
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	476,106		$	10,506		2.21		$	460,579		$	7,489		2.17		$	466,329		$	5,824		1.25
Savings		220,190			711		0.32			223,825			549		0.33			248,629			378		0.15
Time		744,895			31,117		4.18			738,205			23,311		4.22			610,726			19,827		3.25
Total interest-bearing deposits		1,441,191			42,334		2.94			1,422,609			31,349		2.94			1,325,684			26,029		1.96
Short-term borrowings		54,867			1,363		2.48			57,754			1,015		2.35			93,455			3,048		3.26
Other borrowings		146,195			6,692		4.58			150,418			5,165		4.59			94,931			4,396		4.63
Total interest-bearing liabilities		1,642,253			50,389		3.07			1,630,781			37,529		3.07			1,514,070			33,473		2.21
Non-interest bearing liabilities:
Demand deposits		393,616								391,479								418,631
Other liabilities		28,350								27,677								22,595
Total non-interest bearing liabilities		421,966								419,156								441,226
Stockholders' equity		185,952								183,593								173,274
Total Liabilities and Stockholders' Equity	$	2,250,171							$	2,233,530							$	2,128,570
Net interest income/spread (tax equivalent basis)					63,010		2.17	%					46,167		2.12	%					62,816		2.47	%
Tax-equivalent basis adjustment					(819	)							(601	)							(749	)
Net interest income				$	62,191							$	45,566							$	62,067
Net interest margin (tax equivalent basis)							2.91	%							2.87	%							3.06	%
(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.

NORWOOD FINANCIAL CORP
Financial Highlights (Unaudited)
(dollars in thousands, except per share data)
For the Three Months Ended December 31		2024				2023
Net interest income	$	16,625			$	15,293
Net (loss) income		(12,651	)			355
Net interest spread (fully taxable equivalent)		2.31%				2.23%
Net interest margin (fully taxable equivalent)		3.04%				2.93%
Return on average assets		-2.19%				0.06%
Return on average equity		-26.08%				0.84%
Return on average tangible equity		-30.77%				1.01%
Basic (loss) earnings per share	$	(1.54	)		$	0.04
Diluted (loss) earnings per share	$	(1.54	)		$	0.04
For the Twelve Months Ended December 31		2024				2023
Net interest income	$	62,191			$	62,067
Net (loss) income		(160	)			16,759
Net interest spread (fully taxable equivalent)		2.17%				2.47%
Net interest margin (fully taxable equivalent)		2.91%				3.06%
Return on average assets		-0.01%				0.79%
Return on average equity		-0.09%				9.67%
Return on average tangible equity		-0.10%				11.66%
Basic (loss) earnings per share	$	(0.02	)		$	2.08
Diluted (loss) earnings per share	$	(0.02	)		$	2.07
As of December 31		2024				2023
Total assets	$	2,317,462			$	2,201,079
Total loans receivable		1,713,638				1,603,618
Allowance for credit losses		19,843				18,968
Total deposits		1,859,163				1,795,159
Stockholders' equity		213,508				181,070
Trust assets under management		205,097				192,374
Book value per share	$	23.02			$	22.33
Tangible book value per share	$	19.85			$	18.69
Equity to total assets		9.21%				8.23%
Allowance to total loans receivable		1.16%				1.18%
Nonperforming loans to total loans		0.46%				0.48%
Nonperforming assets to total assets		0.34%				0.35%

NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars in thousands)
		December 31			September 30			June 30			March 31			December 31
		2024			2024			2024			2024			2023
ASSETS
Cash and due from banks	$	27,562		$	47,072		$	29,903		$	19,519		$	28,533
Interest-bearing deposits with banks		44,777			35,808			39,492			92,444			37,587
Cash and cash equivalents		72,339			82,880			69,395			111,963			66,120
Securities available for sale		397,846			396,891			397,578			398,374			406,259
Loans receivable		1,713,638			1,675,139			1,641,356			1,621,448			1,603,618
Less: Allowance for credit losses		19,843			18,699			17,807			18,020			18,968
Net loans receivable		1,693,795			1,656,440			1,623,549			1,603,428			1,584,650
Regulatory stock, at cost		13,366			6,329			6,443			6,545			7,318
Bank owned life insurance		46,657			46,382			46,121			45,869			46,439
Bank premises and equipment, net		19,657			18,503			18,264			18,057			17,838
Foreclosed real estate owned		0			0			0			97			97
Goodwill and other intangibles		29,418			29,433			29,449			29,468			29,487
Other assets		44,384			42,893			44,517			46,622			42,871
TOTAL ASSETS	$	2,317,462		$	2,279,751		$	2,235,316		$	2,260,423		$	2,201,079
LIABILITIES
Deposits:
Non-interest bearing demand	$	381,479		$	420,967		$	391,849		$	383,362		$	399,545
Interest-bearing deposits		1,477,684			1,434,284			1,419,323			1,455,636			1,395,614
Total deposits		1,859,163			1,855,251			1,811,172			1,838,998			1,795,159
Borrowings		214,862			197,412			210,422			211,234			198,312
Other liabilities		29,929			31,434			31,534			28,978			26,538
TOTAL LIABILITIES		2,103,954			2,084,097			2,053,128			2,079,210			2,020,009
STOCKHOLDERS' EQUITY		213,508			195,654			182,188			181,213			181,070
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	2,317,462		$	2,279,751		$	2,235,316		$	2,260,423		$	2,201,079
NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
		December 31			September 30			June 30			March 31			December 31
Three months ended		2024			2024			2024			2024			2023
INTEREST INCOME
Loans receivable, including fees	$	26,122		$	25,464		$	24,121		$	23,681		$	23,328
Securities		2,789			2,526			2,584			2,526			2,504
Other		574			497			966			731			253
Total interest income		29,485			28,487			27,671			26,938			26,085
INTEREST EXPENSE
Deposits		10,984			10,553			10,687			10,110			8,910
Borrowings		1,876			2,003			2,059			2,118			1,882
Total interest expense		12,860			12,556			12,746			12,228			10,792
NET INTEREST INCOME		16,625			15,931			14,925			14,710			15,293
PROVISION FOR (RELEASE OF) CREDIT LOSSES		1,604			1,345			347			(624	)		6,116
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION
FOR CREDIT LOSSES		15,021			14,586			14,578			15,334			9,177
OTHER INCOME
Service charges and fees		1,595			1,517			1,504			1,343			1,421
Income from fiduciary activities		224			256			225			238			210
Net realized (losses) gains on sales of securities		(19,962	)		-			-			-			-
Gains on sales of loans, net		50			103			36			6			36
Gains on sales of foreclosed real estate owned		-			-			32			-			66
Earnings and proceeds on life insurance policies		275			261			253			268			242
Other		159			158			157			151			148
Total other income		(17,659	)		2,295			2,207			2,006			2,123
OTHER EXPENSES
Salaries and employee benefits		6,690			6,239			5,954			6,135			5,672
Occupancy, furniture and equipment, net		1,291			1,269			1,229			1,261			1,265
Foreclosed real estate		9			9			15			21			17
FDIC insurance assessment		335			339			309			361			287
Other		5,094			4,175			3,937			3,954			3,608
Total other expenses		13,419			12,031			11,444			11,732			10,849
INCOME BEFORE TAX (BENEFIT) EXPENSE		(16,057	)		4,850			5,341			5,608			451
INCOME TAX (BENEFIT) EXPENSE		(3,406	)		1,006			1,128			1,175			96
NET (LOSS) INCOME	$	(12,651	)	$	3,844		$	4,213		$	4,433		$	355
Basic (loss) earnings per share	$	(1.54	)	$	0.48		$	0.52		$	0.55		$	0.04
Diluted (loss) earnings per share	$	(1.54	)	$	0.48		$	0.52		$	0.55		$	0.04
Book Value per share	$	23.02		$	24.92		$	23.26		$	23.01		$	22.99
Tangible Book Value per share		19.85			21.28			19.62			19.38			19.36
Return on average assets (annualized)		-2.19	%		0.68%			0.75%			0.80%			0.06%
Return on average equity (annualized)		-26.08	%		8.09%			9.41%			9.79%			0.84%
Return on average tangible equity (annualized)		-30.77	%		9.58%			11.26%			11.68%			1.01%
Net interest spread (fte)		2.31%			2.23%			2.06%			2.06%			2.23%
Net interest margin (fte)		3.04%			2.99%			2.80%			2.79%			2.93%
Allowance for credit losses to total loans		1.16%			1.12%			1.08%			1.11%			1.18%
Net charge-offs to average loans (annualized)		0.12%			0.08%			0.13%			0.08%			0.79%
Nonperforming loans to total loans		0.46%			0.47%			0.47%			0.23%			0.48%
Nonperforming assets to total assets		0.34%			0.35%			0.34%			0.17%			0.35%