Camden National Corporation Reports Third Quarter 2012 Results

Completed strategic acquisition of 15 branches

30 Oct, 2012, 15:27 ET from Camden National Corporation

CAMDEN, Maine, Oct. 30, 2012 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or "the Company"), a $2.5 billion bank holding company headquartered in Camden, Maine, reported net income for the third quarter of 2012 of $6.3 million and diluted earnings per share ("EPS") of $0.82. Third quarter 2012 results compare to net income of $6.4 million and EPS of $0.83 for the prior quarter, and net income of $6.9 million and EPS of $0.90 for the third quarter of 2011. For the third quarter of 2012, the Company achieved a return on assets of 1.03%, a return on tangible equity of 13.54%, a net interest margin of 3.30%, and an efficiency ratio of 55.10%. For the nine months ended September 30, 2012, the Company achieved a return on assets of 1.09%, a return on tangible equity of 14.31%, a net interest margin of 3.39%, and an efficiency ratio of 54.77%.

"I'm pleased that the Camden National team has been able to complete the acquisition of 15 Bank of America branches and divest one as required by the Department of Justice, while producing solid financial results for the quarter," said Camden National President and Chief Executive Officer Gregory A. Dufour. "Expanding and strengthening our geographic footprint is just one important aspect of the branch acquisition. Also of strategic importance is the welcoming of approximately 30,000 new customer relationships to our organization, which will allow us to better leverage the entire franchise to benefit both customers and shareholders."

Third Quarter 2012 Highlights

  • Strong core deposit growth as core deposit average balances grew $82.6 million between the second and third quarters of 2012.
  • A decrease in net interest margin of 10 basis points during the third quarter of 2012 compared to the previous quarter, reflecting the impact of the prolonged and historically low interest rate environment.
  • Higher capital levels as the total risk-based capital ratio increased to 16.39% at September 30, 2012.
  • Stability of asset quality as non-performing asset levels and total past due loans have trended downward since December 31, 2011, as the Company maintained its credit underwriting discipline.

Operating Results

Net interest income on a fully-taxable basis for the third quarter of 2012 increased to $18.7 million, compared to $18.6 million for the second quarter of 2012, and decreased $250,000 compared to the third quarter of 2011. The net interest margin for the third quarter of 2012 declined 10 basis points from the previous quarter and 21 basis points from the third quarter of 2011. The decline reflects the impact of reinvesting cash flow in both investment securities and loans at lower interest rates due to the continued low interest rate environment. The decline in the net interest margin was partially mitigated by growth in average investments and average loans of $61.6 million during the third quarter of 2012.

The provision for credit losses was $868,000 for the third quarter of 2012, compared to $835,000 for the prior quarter and $1.2 million for the third quarter of 2011. The decrease in the provision for credit losses from the third quarter of 2011 was a result of lower non-performing assets and stabilization of net charge-offs. Net loan charge-offs totaled $1.3 million during the third quarter of 2012, compared to $574,000 for the prior quarter and $1.2 million for the third quarter of 2011.

Non-interest income for the third quarter of 2012 was $5.0 million, compared to $5.8 million for both the second quarter of 2012 and the third quarter of 2011. The decrease from the prior quarter was primarily due to a decrease in security gains of $554,000 and mortgage banking income of $124,000. The decrease in non-interest income from the third quarter of 2011 was primarily due to non-recurring bank-owned life insurance proceeds of $550,000 recorded in the third quarter of 2011, and a decrease in mortgage banking income of $360,000, partially offset by a $215,000 increase in service charges and fees.

Non-interest expense for the third quarter of 2012 was $13.4 million, compared to $14.0 million for the second quarter of 2012 and $13.3 million for the third quarter of 2011. The third quarter of 2012 included non-recurring expenses of $396,000 in branch acquisition-related expenditures. The second quarter of 2012 included non-recurring expenses of $728,000 for the early extinguishment of borrowings and $308,000 in branch acquisition-related expenditures. Other than these non-recurring expenses, non-interest expense totaled $13.0 million for the third quarter of 2012, which was flat from the previous quarter and a 3% decline from the third quarter of 2011.

Balance Sheet

Total loans (excluding loans held for sale) of $1.5 billion grew by $26.6 million, or 2%, since year-end. For the first nine months of 2012, commercial real estate loans increased $31.2 million and consumer and home equity portfolios grew $9.1 million as a result of retail promotions. During the same period, our residential real estate loan portfolio declined $7.0 million, primarily due to sales of thirty-year fixed rate mortgages, and commercial loans declined $6.8 million.

Our investment portfolio totaled $751.7 million at September 30, 2012, an increase of $139.7 million since December 31, 2011. During the second and third quarters of 2012, we purchased approximately $115.0 million of investment securities as a pre-investment strategy in anticipation of excess cash resulting from the branch acquisition, which was completed on October 26, 2012.

Total average deposits increased $73.7 million during the third quarter of 2012 compared to the previous quarter. This increase in average deposits resulted from growth of $82.6 million in demand deposits, interest checking, savings, and money market accounts, partially offset by a decline in retail certificates of deposit average balances of $9.0 million. The growth in checking, savings and money market accounts is primarily due to a combination of businesses and individuals maintaining higher balances in short-term deposits, the acquisition of several large deposit relationships and the typical seasonal inflow of deposits during the third quarter of each year.

Asset Quality

"Credit quality remains stable, reflecting our adherence to our credit underwriting standards," said Dufour. "Non-performing assets were 12% lower than the previous quarter and total past due loans have declined since year-end."

Non-performing assets at September 30, 2012, were $26.3 million, or 1.06% of total assets, compared to $29.7 million, or 1.24% of total assets, at June 30, 2012. Annualized net charge-offs for the third quarter of 2012 increased to 0.33% from 0.15% in the second quarter of 2012. The allowance for credit losses to total loans decreased slightly to 1.49% at September 30, 2012, compared to 1.52% at June 30, 2012.

Dividends and Capital

The board of directors approved a dividend of $0.25 per share, payable on October 31, 2012, to shareholders of record as of October 15, 2012. This distribution resulted in an annualized dividend yield of 2.70%, based on the September 28, 2012, closing price of Camden National's common stock at $37.04 per share as reported by NASDAQ.

Camden National's total risk-based capital ratio increased to 16.39% at September 30, 2012, compared to 15.95% at December 31, 2011, as capital levels increased from retained earnings. Camden National and its wholly-owned subsidiary, Camden National Bank, exceeded the minimum total risk-based, Tier 1, and Tier 1 leverage ratios of 10.0%, 6.0%, and 5.0%, respectively, required by the Federal Reserve for an institution to be considered "well capitalized."

On September 25, 2012, the board of directors authorized the 2012 Common Stock Repurchase Program ("Repurchase Program"). The Repurchase Program will allow for the repurchase of up to 500,000 shares, or approximately 6.5%, of the Company's outstanding common stock over the next year.

"This is the annual renewal of our common stock repurchase program," said Dufour. "We view the repurchase program as one component of our capital management plan, which provides flexibility to efficiently return capital to our shareholders when conditions and events warrant." Under the 2011 Common Stock Repurchase Program, the Company repurchased 78,824 shares, or 16% of the program's allotment and 1% of total outstanding shares.

About Camden National Corporation

Camden National Corporation, recently recognized by Forbes as one of "America's Most Trustworthy Companies," is the holding company employing more than 500 Maine residents for two financial services companies including Camden National Bank and the wealth management company, Acadia Trust, N.A. Camden National Bank is a full-service community bank with a network of 50 banking offices throughout Maine. Acadia Trust offers investment management and fiduciary services with offices in Portland and Ellsworth. Located at Camden National Bank, Camden Financial Consultants offers full-service brokerage and insurance services.

Forward-Looking Statements

This press release and the documents incorporated by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, projections, and statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "plan," "target," or "goal," or future or conditional verbs such as "will," "may", "might", "should," "would", "could" and other expressions which predict or indicate future events or trends and which do not relate to historical matters. Forward-looking statements should not be relied on, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Camden National. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Camden National to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include, but are not limited to, the following: continued weakness in the United States economy in general and the regional and local economies within the New England region and Maine, which could result in a deterioration of credit quality, a change in the allowance for loan losses, or a reduced demand for the Company's credit or fee-based products and services; adverse changes in the local real estate market could result in a deterioration of credit quality and an increase in the allowance for loan loss, as most of the Company's loans are concentrated in Maine, and a substantial portion of these loans have real estate as collateral; changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; adverse changes in asset; competitive pressures, including continued industry consolidation, the increased financial services provided by non-banks and banking reform; continued volatility in the securities markets that could adversely affect the value or credit quality of the Company's assets, impairment of goodwill, the availability and terms of funding necessary to meet the Company's liquidity needs, and the Company's ability to originate loans and could lead to impairment in the value of securities in the Company's investment portfolios; changes in information technology that require increased capital spending; changes in consumer spending and savings habits; new laws and regulations regarding the financial services industry including but not limited to, the Dodd-Frank Wall Street Reform & Consumer Protection Act; changes in laws and regulations including laws and regulations concerning taxes, banking, securities and insurance; and changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters.  Additional factors that could also cause results to differ materially from those described above can be found in our Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q and other filings with the SEC. All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements.

These forward-looking statements were based on information, plans and estimates at the date of this press release, and Camden National does not promise and assumes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Use of Non-GAAP Financial Measures

In addition to evaluating the Company's results of operations in accordance with GAAP, management supplements this evaluation with certain non-GAAP financial measures, such as the efficiency and tangible equity ratios, tangible book value per share, and tax-equivalent net interest income. We believe these non-GAAP financial measures help investors in understanding the Company's operating performance and trends and allow for better performance comparisons to other banks. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions.  The reconciliation to the comparable GAAP financial measure can be found in this document or the Form 8-K related to this document, all of which can be found on Camden National's website at www.camdennational.com.

Annualized Data

Certain returns, yields, and performance ratios, are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full year or year-over-year amounts.  

Selected Financial Data (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2012

2011

2012

2011

Selected Financial and Per Share Data:

Return on average assets

1.03%

1.19%

1.09%

1.17%

Return on average equity

10.90%

12.44%

11.45%

12.73%

Return on average tangible equity

13.54%

15.67%

14.31%

16.18%

Tangible equity to tangible assets(1)

7.86%

7.67%

7.86%

7.67%

Efficiency ratio(2)

55.10%

53.97%

54.77%

54.20%

Net interest margin (fully-taxable equivalent)

3.30%

3.51%

3.39%

3.55%

Tier 1 leverage capital ratio

9.57%

9.43%

9.57%

9.43%

Tier 1 risk-based capital ratio

15.13%

14.80%

15.13%

14.80%

Total risk-based capital ratio

16.39%

16.05%

16.39%

16.05%

Basic earnings per share

$

0.82

$

0.90

$

2.51

$

2.65

Diluted earnings per share

$

0.82

$

0.90

$

2.51

$

2.65

Cash dividends declared per share

$

0.25

$

0.25

$

0.75

$

0.75

Book value per share

$

30.84

$

28.91

$

30.84

$

28.91

Tangible book value per share (3)

$

25.00

$

22.99

$

25.00

$

22.99

Weighted average number of common shares outstanding

7,619,411

7,677,972

7,655,619

7,671,911

Diluted weighted average number of common shares outstanding

7,639,434

7,683,570

7,669,763

7,680,401

(1) Computed by dividing total shareholders' equity less goodwill and other intangible assets by total assets less goodwill and other intangible assets.

(2) Computed by dividing non-interest expense (excluding prepayment penalties and acquisition costs) by the sum of net interest income (tax equivalent) and non-interest income  (excluding securities gains/losses and OTTI).

(3) Computed by dividing total shareholders' equity less goodwill and other intangible assets by the number of common shares outstanding.

Statement of Condition Data (unaudited)

 September 30,

 September 30,

 December 31,

(In thousands, except number of shares)

2012

2011

2011

Assets

Cash and due from banks

$

48,933

$

89,266

$

39,325

Securities

     Securities available for sale, at fair value

730,630

591,955

590,036

     Federal Home Loan Bank and Federal Reserve Bank stock, at cost

21,034

21,962

21,962

          Total securities

751,664

613,917

611,998

Trading account assets

2,259

2,162

2,244

Loans held for sale

-

762

6,061

Loans

1,540,600

1,512,312

1,514,028

   Less allowance for loan losses

(22,851)

(23,011)

(23,011)

          Net loans

1,517,749

1,489,301

1,491,017

Goodwill and other intangible assets

44,485

45,389

45,194

Bank-owned life insurance

44,706

44,019

43,672

Premises and equipment, net

25,084

23,970

24,113

Deferred tax asset

5,681

11,341

13,486

Interest receivable

6,373

6,519

6,431

Prepaid FDIC assessment

3,921

5,088

4,796

Other real estate owned

596

1,759

1,682

Other assets

16,424

13,223

12,701

     Total assets

$

2,467,875

$

2,346,716

$

2,302,720

Liabilities

Deposits

   Demand

$

212,011

$

278,900

$

256,330

   Interest checking, savings and money market

1,007,148

823,349

828,977

   Retail certificates of deposit

362,103

417,456

395,431

   Brokered deposits

108,057

121,552

110,628

     Total deposits

1,689,319

1,641,257

1,591,366

Federal Home Loan Bank advances

171,519

126,953

136,860

Other borrowed funds

270,691

279,033

275,656

Junior subordinated debentures

43,794

43,691

43,717

Accrued interest and other liabilities

57,574

33,843

36,245

     Total liabilities

2,232,897

2,124,777

2,083,844

Shareholders' Equity

Common stock, no par value; authorized 20,000,000 shares, issued and

outstanding 7,620,072, 7,678,143, and 7,664,975 shares on September 30, 2012 and 2011 and December 31, 2011, respectively

49,455

51,375

51,438

Retained earnings

178,844

165,300

165,377

Accumulated other comprehensive income

    Net unrealized gains on securities available for sale, net of tax

16,311

13,485

11,128

    Net unrealized losses on derivative instruments, at fair value, net of tax

(7,909)

(7,072)

(7,264)

    Net unrecognized losses on post-retirement plans, net of tax

(1,723)

(1,149)

(1,803)

          Total accumulated other comprehensive income

6,679

5,264

2,061

     Total shareholders' equity

234,978

221,939

218,876

     Total liabilities and shareholders' equity

$

2,467,875

$

2,346,716

$

2,302,720

 

Statement of Income Data (unaudited)

 Three Months Ended September 30,

 Nine Months Ended September 30,

(In thousands, except number of shares and per share data)

2012

2011

2012

2011

Interest income

Interest and fees on loans

$

18,084

$

19,515

$

54,787

$

59,241

Interest on U.S. government and sponsored enterprise obligations

4,153

4,439

12,387

14,241

Interest on state and political subdivision obligations

344

387

1,064

1,284

Interest on federal funds sold and other investments

55

45

160

125

     Total interest income

22,636

24,386

68,398

74,891

Interest expense

Interest on deposits

2,218

2,842

7,146

8,820

Interest on borrowings

1,337

2,265

4,164

7,319

Interest on junior subordinated debentures

634

632

1,904

1,983

     Total interest expense

4,189

5,739

13,214

18,122

     Net interest income

18,447

18,647

55,184

56,769

Provision for credit losses

868

1,182

2,708

3,271

     Net interest income after provision for credit losses

17,579

17,465

52,476

53,498

Non-interest income

Income from fiduciary services

1,155

1,517

3,883

4,503

Service charges on deposit accounts

1,386

1,296

3,857

3,879

Other service charges and fees

1,003

878

2,804

2,691

Bank-owned life insurance

353

910

1,034

1,784

Brokerage and insurance commissions

360

307

1,109

1,050

Mortgage banking income, net

8

368

476

500

Net gain on sale of securities

197

177

1,098

197

Other income

586

435

1,798

1,435

     Total non-interest income before other-than-temporary

        impairment of securities

5,048

5,888

16,059

16,039

Other-than-temporary impairment of securities

(10)

(61)

(39)

(88)

     Total non-interest income

5,038

5,827

16,020

15,951

Non-interest expenses

Salaries and employee benefits

7,270

7,437

21,150

21,402

Furniture, equipment and data processing

1,131

1,149

3,555

3,518

Net occupancy

930

944

3,061

2,960

Consulting and professional fees

408

601

1,351

2,143

Regulatory assessments

450

410

1,317

1,515

Other real estate owned and collection costs

571

519

1,694

1,425

Amortization of identifiable intangible assets

144

144

433

433

Acquisition costs (1)

396

-

704

-

Other expenses

2,070

2,105

7,003

6,470

     Total non-interest expenses

13,370

13,309

40,268

39,866

     Income before income taxes

9,247

9,983

28,228

29,583

Income taxes

2,992

3,054

8,978

9,245

Net income

$

6,255

$

6,929

$

19,250

$

20,338

Per Share Data:

Basic earnings per share

$

0.82

$

0.90

$

2.51

$

2.65

Diluted earnings per share

$

0.82

$

0.90

$

2.51

$

2.65

(1) Includes non-recurring costs associated with the acquisition and integration of the Bank of America branches.

Quarterly Average Balance, Interest and Yield/Rate Analysis (unaudited)

At or for the Three Months Ended

At or for the Three Months Ended

September 30, 2012

September 30, 2011

(In thousands)

Average

Yield/

Average

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Interest-earning assets:

     Securities - taxable

$

667,341

$

4,199

2.52%

$

551,930

$

4,473

3.24%

     Securities - nontaxable (1)

36,608

529

5.78%

41,992

595

5.67%

     Trading account assets

2,205

9

1.62%

2,249

11

1.76%

     Loans: (1) (2)

        Residential real estate

569,569

6,685

4.69%

588,050

7,443

5.06%

        Commercial real estate

497,051

6,139

4.83%

466,991

6,347

5.32%

        Commercial

165,263

1,957

4.63%

179,014

2,271

4.96%

        Municipal

16,478

187

4.51%

24,438

261

4.24%

        Consumer

288,384

3,181

4.39%

282,353

3,285

4.62%

     Total loans

1,536,745

18,149

4.67%

1,540,846

19,607

5.03%

  Total interest-earning assets

2,242,899

22,886

4.05%

2,137,017

24,686

4.58%

  Cash and due from banks

40,944

46,233

  Other assets

152,713

151,134

  Less allowance for loan losses

(23,059)

(22,993)

  Total assets

$

2,413,497

$

2,311,391

Liabilities & Shareholders' Equity

Retail deposits:

     Non-interest bearing demand deposits

$

210,203

-

-

$

264,571

-

-

     Interest checking accounts

401,204

95

0.09%

275,872

133

0.19%

     Savings accounts

196,507

61

0.12%

173,513

108

0.25%

     Money market accounts

367,532

512

0.55%

346,534

590

0.68%

     Certificates of deposit

368,505

1,188

1.28%

421,816

1,532

1.44%

         Total retail deposits

1,543,951

1,856

0.48%

1,482,306

2,363

0.63%

Borrowings:

     Brokered deposits

111,518

362

1.29%

130,156

479

1.46%

     Junior subordinated debentures

43,781

634

5.76%

43,679

632

5.74%

     Other borrowings

449,622

1,337

1.18%

408,180

2,265

2.20%

        Total borrowings

604,921

2,333

1.53%

582,015

3,376

2.30%

  Total funding liabilities

2,148,872

4,189

0.78%

2,064,321

5,739

1.10%

  Other liabilities

36,255

26,183

  Shareholders' equity

228,370

220,887

  Total liabilities & shareholders' equity

$

2,413,497

$

2,311,391

Net interest income (fully-taxable equivalent)

18,697

18,947

Less:  fully-taxable equivalent adjustment

(250)

(300)

  Net interest income

$

18,447

$

18,647

Net interest rate spread (fully-taxable equivalent)

3.27%

3.48%

Net interest margin (fully-taxable equivalent)

3.30%

3.51%

 (1)  Reported on tax-equivalent basis calculated using a tax rate of 35%.

 (2)  Non-accrual loans and loans held for sale are included in total average loans.

 

Year-to-date Average Balance, Interest and Yield/Rate Analysis (unaudited)

At or for the Nine Months Ended

At or for the Nine Months Ended

September 30, 2012

September 30, 2011

(In thousands)

Average

Yield/

Average

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Interest-earning assets:

     Securities - taxable

$

615,233

$

12,528

2.72%

$

568,477

$

14,346

3.36%

     Securities - nontaxable (1)

38,106

1,637

5.73%

45,220

1,975

5.82%

     Trading account assets

2,194

19

1.16%

2,256

20

1.16%

     Loans: (1) (2)

        Residential real estate

574,134

20,695

4.81%

593,072

22,799

5.13%

        Commercial real estate

488,142

18,263

4.92%

465,988

19,302

5.46%

        Commercial

167,681

5,985

4.69%

177,952

6,904

5.12%

        Municipal

14,527

534

4.91%

20,967

719

4.58%

        Consumer

285,522

9,497

4.44%

281,608

9,769

4.64%

     Total loans

1,530,006

54,974

4.76%

1,539,587

59,493

5.13%

  Total interest-earning assets

2,185,539

69,158

4.20%

2,155,540

75,834

4.67%

  Cash and due from banks

37,723

32,540

  Other assets

153,818

155,105

  Less allowance for loan losses

(23,146)

(22,822)

  Total assets

$

2,353,934

$

2,320,363

Liabilities & Shareholders' Equity

Retail deposits:

     Non-interest bearing demand deposits

$

242,855

-

-

$

241,480

-

-

     Interest checking accounts

319,463

251

0.10%

252,637

411

0.22%

     Savings accounts

188,797

242

0.17%

169,586

314

0.25%

     Money market accounts

357,938

1,568

0.59%

331,936

1,777

0.72%

     Certificates of deposit

379,216

3,786

1.33%

441,394

4,876

1.48%

         Total retail deposits

1,488,269

5,847

0.52%

1,437,033

7,378

0.69%

Borrowings:

     Brokered deposits

123,959

1,299

1.40%

122,788

1,442

1.57%

     Junior subordinated debentures

43,756

1,904

5.81%

43,653

1,983

6.07%

     Other borrowings

438,954

4,164

1.27%

479,949

7,319

2.04%

        Total borrowings

606,669

7,367

1.62%

646,390

10,744

2.22%

  Total funding liabilities

2,094,938

13,214

0.84%

2,083,423

18,122

1.16%

  Other liabilities

34,517

23,296

  Shareholders' equity

224,479

213,644

  Total liabilities & shareholders' equity

$

2,353,934

$

2,320,363

Net interest income (fully-taxable equivalent)

55,944

57,712

Less:  fully-taxable equivalent adjustment

(760)

(943)

  Net interest income

$

55,184

$

56,769

Net interest rate spread (fully-taxable equivalent)

3.36%

3.51%

Net interest margin (fully-taxable equivalent)

3.39%

3.55%

 (1)  Reported on tax-equivalent basis calculated using a tax rate of 35%.

 (2)  Non-accrual loans and loans held for sale are included in total average loans.

Asset Quality Data (unaudited)

 

At or for Nine Months Ended

 

At or for Six Months Ended

At or for Three Months Ended

At or for Twelve Months Ended

At or for Nine Months Ended

(In thousands)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

Non-accrual loans:

     Residential real estate

$

9,459

$

10,349

$

9,570

$

9,503

$

9,060

     Commercial real estate

7,121

7,362

7,578

7,830

9,596

     Commercial

3,765

4,687

4,253

3,955

4,278

     Consumer

1,929

1,912

2,477

2,822

1,502

Total non-accrual loans

22,274

24,310

23,878

24,110

24,436

Loans 90 days past due and accruing

246

562

183

236

-

Renegotiated loans not included above

3,162

3,177