Camden National Corporation Reports Third Quarter 2012 Results Completed strategic acquisition of 15 branches

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



3,256



3,276



3,310


Total non-performing loans



25,682



28,049



27,317



27,622



27,746


Other real estate owned:

















     Residential real estate



421



1,045



1,226



791



1,098


     Commercial real estate



175



652



672



891



661


Total other real estate owned



596



1,697



1,898



1,682



1,759


Total non-performing assets


$

26,278


$

29,746


$

29,215


$

29,304


$

29,505



















Loans 30-89 days past due:

















     Residential real estate


$

1,256


$

780


$

1,961


$

2,429


$

1,447


     Commercial real estate



1,938



2,122



3,075



2,107



1,149


     Commercial



1,135



762



846



911



1,226


     Consumer



452



310



245



1,793



505


Total loans 30-89 days past due


$

4,781


$

3,974


$

6,127


$

7,240


$

4,327




































Allowance for loan losses at the beginning of the period


$

23,011


$

23,011


$

23,011


$

22,293


$

22,293


Provision for loan losses



2,676



1,817



991



4,741



3,270


Charge-offs:

















     Residential real estate



1,024



446



308



1,216



1,036


     Commercial real estate



209



209



179



1,633



946


     Commercial



1,146



416



191



1,256



1,080


     Consumer



987



879



411



920



355


Total charge-offs



3,366



1,950



1,089



5,025



3,417


Total recoveries



530



384



97



1,002



865


Net charge-offs



2,836



1,566



992



4,023



2,552


Allowance for loan losses at the end of the period


$

22,851


$

23,262


$

23,010


$

23,011


$

23,011



















Components of allowance for credit losses:

















     Allowance for loan losses


$

22,851


$

23,262


$

23,010


$

23,011


$

23,011


     Liability for unfunded credit commitments



51



43



34



20



26


Balance of allowance for credit losses


$

22,902


$

23,305


$

23,044


$

23,031


$

23,037