Arrow Reports Year-Over-Year Loan Growth of 10.8% and $8.9 million in Q2 Net Income

- Total loans grew by $45.1 million in the second quarter of 2019.

- Second quarter net income was $8.9 million.

- Second quarter diluted earnings per share (EPS) of $0.62.

- Second quarter net interest income increased 3.6% over the prior-year comparable quarter.

- Continued strong profitability, asset quality and capital ratios.

News provided by

Jul 22, 2019, 07:16 ET

GLENS FALLS, N.Y., July 22, 2019 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three-month period ended June 30, 2019. Net income for the second quarter of 2019 was $8.9 million, compared to $9.7 million in the second quarter of 2018. Steady loan growth continued in the second quarter of 2019, as total loans grew by $45.1 million from March 31, 2019 to $2.3 billion. Driven primarily by this growth, net interest income increased to $21.7 million in the second quarter of 2019, compared to $21.0 million for the comparable quarter of 2018.

Annualized key profitability ratios remained strong, as measured by a return on average equity of 12.79% and a return on average assets of 1.20% for the second quarter, compared to 15.22% and 1.38%, respectively, a year earlier.

"Thanks to the efforts of our team, Arrow continued its solid performance with steady loan growth and strong asset quality through the second quarter of the year," said President and CEO Thomas J. Murphy. "Our Company is well-positioned to adapt to the continuing changes in a complex rate environment. Additionally, we are making strategic lending decisions within our communities that will help our region thrive, and we are making important investments that will help us provide an enhanced customer experience."

The Company continued its forward momentum and expansion in the Capital Region with the opening of a new Saratoga National Bank and Trust Company office in Rotterdam, New York in the second quarter. Additionally, the company announced plans for the opening of its 12^th Saratoga National Bank office, in Latham, New York, anticipated in early 2020.

The following expands on our second-quarter results:

Cash Dividend: On June 14, 2019, the Company distributed a cash dividend of $0.26 per share. The June 14, 2019 cash dividend was 7.1% higher than the $0.25 cash dividend paid by the Company in the second quarter of 2018, when adjusted for the 3% stock dividend distributed on September 27, 2018. The 2018 increase from $0.25 per share to $0.26 per share was the first increase in per share dividend amount since 2008.

Loan Growth: Total loans reached $2.3 billion as of June 30, 2019, which represents an increase of $222.4 million, or 10.8% as compared to June 30, 2018. The consumer loan portfolio grew by $117.1 million, or 17.7%, as compared to June 30, 2018, primarily within the indirect automobile lending program. The total residential real estate loan portfolio increased $60.0 million, or 7.4%, as compared to June 30, 2018. Total outstanding commercial loans increased $45.3 million, or 7.8%, as compared to June 30, 2018.

Deposit Growth: At June 30, 2019, deposit balances reached $2.5 billion, up $199.0 million, or 8.6%, from the prior-year level. Noninterest-bearing deposits represented 18.7% of total deposits at June 30, 2019. At June 30, 2019, other time deposits were $289.3 million, an increase of $119.7 million compared to the prior year. Time deposits include brokered deposits acquired to diversify source of funds to more favorable rates as compared to other borrowings.

Net Interest Income: Driven by strong loan growth, second quarter 2019 net interest income increased to $21.7 million, up 3.6% from $21.0 million in the comparable quarter of 2018. The net interest margin was 3.04% for the quarter, compared to 3.11% for the second quarter of 2018. The decrease in net interest margin from the prior year was the result of the migration to higher yielding deposit accounts due to rise in short-term market rates.

Noninterest Income: Noninterest income for the three months ended June 30, 2019, was $6.9 million, compared to $7.9 million in the comparable 2018 quarter. Despite the decline from the prior year, total noninterest income represented 24.1% of total revenues in the second quarter of 2019.

Noninterest Expense: Noninterest expense for the second quarter of 2019 increased 4.4% to $16.9 million, from $16.2 million for the second quarter of 2018. Technology and equipment expense increased $394 thousand, and other operating expense increased $409 thousand from the comparable quarter in 2018.

Provision for Income Taxes: The provision for income taxes was $2.3 million for the second quarter of both 2019 and 2018. The effective income tax rates for the three-month periods ended June 30, 2019 and 2018 were 20.5% and 19.3%, respectively.

Asset Quality: Asset quality remained strong at June 30, 2019, with continued low levels of nonperforming loans and net charge-offs. Nonperforming loans at June 30, 2019, were $5.5 million, up $26.0 thousand from the level at December 31, 2018. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.02% for the three-month period ended June 30, 2019, up from the prior-year comparable quarter of 0.01%. The allowance for loan losses was $20.7 million at June 30, 2019, which represented 0.91% of loans outstanding, as compared to 0.95% at June 30, 2018. The loss provision expense for the second quarter of 2019 was $455 thousand, down $174 thousand from the provision for the comparable 2018 quarter.

Capital: Total stockholders' equity was a record $284.6 million at June 30, 2019, up $25.2 million, or 9.7%, from the comparable quarter of 2018. Overall regulatory capital ratios also remained strong in 2019, with the Company's common equity tier 1 ratio estimated to be 12.99% and the total risk-based capital ratio estimated to be 14.91% at June 30, 2019. These capital levels at the Company and both its subsidiary banks continue to significantly exceed the "well capitalized" regulatory standard.

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 49 and 41 quarters, respectively. In May, Seifried & Brew named Glens Falls National and Saratoga National to the top 15th percentile of Community Banks based on their performance in 2018.

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, 2018, and other filings with the Securities and Exchange Commission.

250 Glen Street
Glens Falls, NY 12801

NASDAQ® Symbol: "AROW"
Website: arrowfinancial.com

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts - Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
INTEREST AND DIVIDEND INCOME
Interest and Fees on Loans	$	23,520	$	19,909	$	45,923	$	38,767
Interest on Deposits at Banks	195		158		390		292
Interest and Dividends on Investment Securities:
Fully Taxable	2,284		2,048		4,653		3,941
Exempt from Federal Taxes	1,228		1,475		2,474		3,008
Total Interest and Dividend Income	27,227		23,590		53,440		46,008
INTEREST EXPENSE
Interest-Bearing Checking Accounts	453		388		935		775
Savings Deposits	2,008		711		3,609		1,233
Time Deposits over $250,000	515		328		911		532
Other Time Deposits	1,131		282		1,844		541
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	25		16		47		32
Federal Home Loan Bank Advances	1,099		656		2,693		1,070
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	261		247		530		461
Interest on Financing Leases	28		—		43		—
Total Interest Expense	5,520		2,628		10,612		4,644
NET INTEREST INCOME	21,707		20,962		42,828		41,364
Provision for Loan Losses	455		629		927		1,375
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	21,252		20,333		41,901		39,989
NONINTEREST INCOME
Income From Fiduciary Activities	2,252		2,647		4,359		4,844
Fees for Other Services to Customers	2,545		2,570		4,947		4,950
Insurance Commissions	1,935		2,192		3,654		4,095
Net Gain on Securities Transactions	—		223		76		241
Net Gain on Sales of Loans	140		23		244		61
Other Operating Income	24		256		503		609
Total Noninterest Income	6,896		7,911		13,783		14,800
NONINTEREST EXPENSE
Salaries and Employee Benefits	9,727		9,812		19,046		19,181
Occupancy Expenses, Net	1,279		1,270		2,699		2,610
Technology and Equipment Expense	3,243		2,849		6,384		5,547
FDIC Assessments	212		223		424		440
Other Operating Expense	2,447		2,038		5,007		4,370
Total Noninterest Expense	16,908		16,192		33,560		32,148
INCOME BEFORE PROVISION FOR INCOME TAXES	11,240		12,052		22,124		22,641
Provision for Income Taxes	2,306		2,322		4,456		4,380
NET INCOME	$	8,934	$	9,730	$	17,668	$	18,261
Average Shares Outstanding ¹:
Basic	14,487		14,394		14,478		14,374
Diluted	14,527		14,480		14,523		14,459
Per Common Share:
Basic Earnings	$	0.62	$	0.68	$	1.22	$	1.27
Diluted Earnings	0.62		0.67		1.22		1.26
¹ 2018 Share and Per Share Amounts 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)

	June 30, 2019			December 31, 2018			June 30, 2018
ASSETS
Cash and Due From Banks	$	34,650		$	56,529		$	38,552
Interest-Bearing Deposits at Banks	28,045			27,710			22,189
Investment Securities:
Available-for-Sale	285,878			317,535			325,387
Held-to-Maturity (Approximate Fair Value of $266,068 at June 30, 2019; $280,338 at December 31, 2018; and $292,605 at June 30, 2018)	262,541			283,476			297,885
Equity Securities	1,850			1,774			1,802
Other Investments	8,202			15,506			11,089
Loans	2,280,308			2,196,215			2,057,862
Allowance for Loan Losses	(20,695)			(20,196)			(19,640)
Net Loans	2,259,613			2,176,019			2,038,222
Premises and Equipment, Net	38,836			30,446			28,104
Goodwill	21,873			21,873			21,873
Other Intangible Assets, Net	1,730			1,852			2,060
Other Assets	62,532			55,614			58,008
Total Assets	$	3,005,750		$	2,988,334		$	2,845,171
LIABILITIES
Noninterest-Bearing Deposits	$	467,179		$	472,768		$	467,048
Interest-Bearing Checking Accounts	741,395			790,781			861,959
Savings Deposits	908,642			818,048			735,217
Time Deposits over $250,000	97,220			73,583			70,950
Other Time Deposits	289,317			190,404			169,607
Total Deposits	2,503,753			2,345,584			2,304,781
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	51,149			54,659			60,248
Federal Home Loan Bank Overnight Advances	83,000			234,000			136,000
Federal Home Loan Bank Term Advances	30,000			45,000			45,000
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000			20,000			20,000
Finance Leases	5,270		—	—		—	—
Other Liabilities	27,929			19,507			19,654
Total Liabilities	2,721,101			2,718,750			2,585,683
STOCKHOLDERS' EQUITY
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at June 30, 2019; $5 Par Value and 1,000,000 Shares Authorized at December 31, 2018 and June 30, 2018	—			—			—
Common Stock, $1 Par Value; 30,000,000 Shares Authorized at June 30, 2019 and 20,000,000 Shares Authorized at December 31, 2018 and June 30, 2018 (19,035,565 Shares Issued at June 30, 2019 and December 31, 2018 and 18,481,301 at June 30, 2018)	19,035			19,035			18,481
Additional Paid-in Capital	316,229			314,533			292,020
Retained Earnings	39,397			29,257			40,326
Unallocated ESOP Shares (5,001 Shares at June 30, 2019; 5,001 Shares at December 31, 2018 and 9,643 Shares at June 30, 2018)	(100)			(100)			(200)
Accumulated Other Comprehensive Loss	(9,647)			(13,810)			(11,804)
Treasury Stock, at Cost (4,517,412 Shares at June 30, 2019; 4,558,207 Shares at December 31, 2018 and 4,467,909 Shares at June 30, 2018)	(80,265)			(79,331)			(79,335)
Total Stockholders' Equity	284,649			269,584			259,488
Total Liabilities and Stockholders' Equity	$	3,005,750		$	2,988,334		$	2,845,171

Arrow Financial Corporation Selected Quarterly Information (Dollars In Thousands, Except Per Share Amounts - Unaudited)

Quarter Ended	6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
Net Income	$	8,934		$	8,734		$	8,758		$	9,260		$	9,730
Transactions in Net Income (Net of Tax):
Net Changes in Fair Value of Equity Investments	—			57			(106)			85			166

Share and Per Share Data:¹
Period End Shares Outstanding	14,513			14,474			14,472			14,441			14,424
Basic Average Shares Outstanding	14,487			14,469			14,451			14,431			14,394
Diluted Average Shares Outstanding	14,527			14,520			14,514			14,520			14,480
Basic Earnings Per Share	$	0.62		$	0.60		$	0.61		$	0.64		$	0.68
Diluted Earnings Per Share	0.62			0.60			0.60			0.64			0.67
Cash Dividend Per Share	0.260			0.260			0.260			0.252			0.243

Selected Quarterly Average Balances:
Interest-Bearing Deposits at Banks	$	25,107		$	26,163		$	34,782		$	30,522		$	28,543
Investment Securities	584,679			611,161			637,341			636,847			647,913
Loans	2,255,299			2,210,642			2,160,435			2,089,651			2,026,598
Deposits	2,436,290			2,347,985			2,347,231			2,279,709			2,325,202
Other Borrowed Funds	250,283			327,138			315,172			314,304			219,737
Shareholders' Equity	280,247			272,864			268,503			263,139			256,358
Total Assets	2,997,458			2,977,056			2,954,029			2,879,854			2,823,061
Return on Average Assets, annualized	1.20		%	1.19		%	1.18		%	1.28		%	1.38		%
Return on Average Equity, annualized	12.79		%	12.98		%	12.94		%	13.96		%	15.22		%
Return on Average Tangible Equity, annualized ²	13.96		%	14.22		%	14.20		%	15.36		%	16.80		%
Average Earning Assets	$	2,865,085		$	2,847,966		$	2,832,558		$	2,757,020		$	2,703,054
Average Paying Liabilities	2,235,462			2,224,403			2,189,233			2,110,924			2,100,085
Interest Income	27,227			26,213			26,000			24,495			23,590
Tax-Equivalent Adjustment ³	376			373			376			376			468
Interest Income, Tax-Equivalent ³	27,603			26,586			26,376			24,871			24,058
Interest Expense	5,520			5,092			4,343			3,498			2,628
Net Interest Income	21,707			21,121			21,657			20,997			20,962
Net Interest Income, Tax-Equivalent ³	22,083			21,494			22,033			21,373			21,430
Net Interest Margin, annualized	3.04		%	3.01		%	3.03		%	3.02		%	3.11		%
Net Interest Margin, Tax-Equivalent, annualized³	3.09		%	3.06		%	3.09		%	3.08		%	3.18		%

Efficiency Ratio Calculation: ⁴
Noninterest Expense	$	16,908		$	16,652		$	16,881		$	16,026		$	16,192
Less: Intangible Asset Amortization	44			79			65			65			66
Net Noninterest Expense	$	16,864		$	16,573		$	16,816		$	15,961		$	16,126
Net Interest Income, Tax-Equivalent	$	22,083		$	21,494		$	22,033		$	21,373		$	21,430
Noninterest Income	6,896			6,887			6,799			7,350			7,911
Less: Net Changes in Fair Value of Equity Invest.	—			76			(142)			114			223
Net Gross Income	$	28,979		$	28,305		$	28,974		$	28,609		$	29,118
Efficiency Ratio	58.19		%	58.55		%	58.04		%	55.79		%	55.38		%

Period-End Capital Information:
Total Stockholders' Equity (i.e. Book Value)	$	284,649		$	276,609		$	269,584		$	264,810		$	259,488
Book Value per Share¹	19.61			19.11			18.63			18.34			17.99
Goodwill and Other Intangible Assets, net	23,603			23,650			23,725			23,827			23,933
Tangible Book Value per Share ^1,2	17.99			17.48			16.99			16.69			16.33

Capital Ratios:⁵
Tier 1 Leverage Ratio	9.88		%	9.73		%	9.61		%	9.67		%	9.65		%
Common Equity Tier 1 Capital Ratio	12.99		%	12.98		%	12.89		%	12.89		%	13.01		%
Tier 1 Risk-Based Capital Ratio	13.93		%	13.95		%	13.87		%	13.90		%	14.04		%
Total Risk-Based Capital Ratio	14.91		%	14.93		%	14.86		%	14.90		%	15.06		%

Assets Under Trust Admin. & Investment Mgmt.	$	1,496,966		$	1,483,259		$	1,385,752		$	1,551,289		$	1,479,753

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 Measures Reconciliation: Tangible Book Value and 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.
		6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
	Total Stockholders' Equity (GAAP)	$	284,649		$	276,609		$	269,584		$	264,810		$	259,488
	Less: Goodwill and Other Intangible assets, net	23,603			23,650			23,725			23,827			23,933
	Tangible Equity (Non-GAAP)	$	261,046		$	252,959		$	245,859		$	240,983		$	235,555

	Period End Shares Outstanding	14,513			14,474			14,472			14,441			14,424
	Tangible Book Value per Share (Non-GAAP)	$	17.99		$	17.48		$	16.99		$	16.69		$	16.33
	Net Income	8,934			8,734			8,758			9,260			9,730
	Return on Tangible Equity (Net Income/Tangible Equity - Annualized)	13.96		%	14.22		%	14.20		%	15.36		%	16.80		%

3.	Non-GAAP Financial Measures Reconciliation: Net Interest Margin, Tax-Equivalent 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.
		6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
	Interest Income (GAAP)	$	27,227		$	26,213		$	26,000		$	24,495		$	23,590
	Add: Tax-Equivalent adjustment (Non-GAAP)	376			373			376			376			468
	Interest Income - Tax Equivalent (Non-GAAP)	$	27,603		$	26,586		$	26,376		$	24,871		$	24,058
	Net Interest Income (GAAP)	$	21,707		$	21,121		$	21,657		$	20,997		$	20,962
	Add: Tax-Equivalent adjustment (Non-GAAP)	376			373			376			376			468
	Net Interest Income - Tax Equivalent (Non-GAAP)	$	22,083		$	21,494		$	22,033		$	21,373		$	21,430
	Average Earning Assets	$	2,865,085		$	2,847,966		$	2,832,558		$	2,757,020		$	2,703,054
	Net Interest Margin (Non-GAAP)*	3.09		%	3.06		%	3.09		%	3.08		%	3.18		%

4.	Non-GAAP Financial Measures: 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 CET1 ratio at June 30, 2019 listed in the tables (i.e., 12.99%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).
		6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
	Total Risk Weighted Assets	$	2,121,541		$	2,075,115		$	2,046,495		$	1,999,849		$	1,934,890
	Common Equity Tier 1 Capital	275,528			269,363			263,863			257,852			251,666
	Common Equity Tier 1 Ratio	12.99		%	12.98		%	12.89		%	12.89		%	13.01		%

* Quarterly ratios have been annualized

Arrow Financial Corporation Consolidated Financial Information (Dollars in Thousands - Unaudited)

Quarter Ended:	6/30/2019			12/31/2018			6/30/2018
Loan Portfolio
Commercial Loans	$	138,331		$	136,890		$	118,881
Commercial Real Estate Loans	490,274			484,562			464,393
Subtotal Commercial Loan Portfolio	628,605			621,452			583,274
Consumer Loans	779,024			719,510			661,908
Residential Real Estate Loans	872,679			855,253			812,680
Total Loans	$	2,280,308		$	2,196,215		$	2,057,862
Allowance for Loan Losses
Allowance for Loan Losses, Beginning of Quarter	$	20,373		$	20,003		$	19,057
Loans Charged-off	(368)			(573)			(264)
Less Recoveries of Loans Previously Charged-off	235			120			218
Net Loans Charged-off	(133)			(453)			(46)
Provision for Loan Losses	455			646			629
Allowance for Loan Losses, End of Quarter	$	20,695		$	20,196		$	19,640
Nonperforming Assets
Nonaccrual Loans	$	4,949		$	4,159		$	3,880
Loans Past Due 90 or More Days and Accruing	457			1,225			170
Loans Restructured and in Compliance with Modified Terms	142			138			106
Total Nonperforming Loans	5,548			5,522			4,156
Repossessed Assets	115			130			76
Other Real Estate Owned	1,258			1,130			1,412
Total Nonperforming Assets	$	6,921		$	6,782		$	5,644
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Quarter-to-date Annualized	0.02		%	0.08		%	0.01		%
Provision for Loan Losses to Average Loans, Quarter-to-date Annualized	0.08		%	0.12		%	0.12		%
Allowance for Loan Losses to Period-End Loans	0.91		%	0.92		%	0.95		%
Allowance for Loan Losses to Period-End Nonperforming Loans	373.02		%	365.74		%	472.57		%
Nonperforming Loans to Period-End Loans	0.24		%	0.25		%	0.20		%
Nonperforming Assets to Period-End Assets	0.23		%	0.23		%	0.20		%
Six-Month Period Ended:
Allowance for Loan Losses
Allowance for Loan Losses, Beginning of Year	$	20,196					$	18,586
Loans Charged-off	(830)						(634)
Less Recoveries of Loans Previously Charged-off	402						313
Net Loans Charged-off	(428)						(321)
Provision for Loan Losses	927						1,375
Allowance for Loan Losses, End of Period	$	20,695					$	19,640
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Annualized	0.04		%				0.03		%
Provision for Loan Losses to Average Loans, Annualized	0.08		%				0.14		%