Financial Condition Summary
March 31, 2020 as Compared to December 31, 2019
Total assets were $746,055,000 on March 31, 2020 compared with $725,394,000 at December 31, 2019, an increase of 2.85%. The increase
in total assets was funded from the growth in deposits.
Total deposits increased from $649,459,000 as of December 31, 2019 to
$668,270,000 on March 31, 2020, an increase of 2.90%. The increase resulted in large part from increases in all deposit categories, including non-interest-bearing demand deposits, NOW, money market,
savings accounts, and time deposits.
Total loans, excluding loans held for sale, decreased to $576,133,000 on March 31, 2020 from
$578,103,000 on December 31, 2019, resulting from anticipated early pay-offs of a few large loans. Loans, excluding loans held for sale and net of deferred fees and costs and the allowance for loan
losses, decreased to $570,659,000 on March 31, 2020 from $573,274,000 on December 31, 2019, an decrease of 0.46%. The following summarizes the position of the Banks loan portfolio as of the dates indicated by dollar amount and
percentages (dollar amounts in thousands):
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March 31, 2020
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December 31, 2019
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Amount
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Percentage
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Amount
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Percentage
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Commercial
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$
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115,529
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20.05
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%
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$
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114,257
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19.76
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%
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Commercial Real Estate
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302,562
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52.52
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%
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303,900
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52.57
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%
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Consumer
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91,330
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15.85
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%
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89,945
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15.56
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%
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Residential
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66,712
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11.58
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%
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70,001
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12.11
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%
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Total loans
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$
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576,133
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100.00
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%
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$
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578,103
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100.00
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%
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Total nonperforming assets, which consist of non-accrual loans, loans
past due 90 days or more and still accruing, and other real estate owned (OREO) decreased to $3,215,000 on March 31, 2020 from $3,640,000 on December 31, 2019. OREO decreased to $1,761,000 on March 31, 2020 from $2,339,000
on December 31, 2019. The decrease in OREO was due in large part to the sale of one large OREO property during the quarter. Non-performing loans increased from $1,301,000 at December 31, 2019 to
$1,454,000 at March 31, 2020. As discussed in more detail below under Results of OperationsAllowance and Provision for Loan Losses, management has provided for the anticipated losses on these loans in the allowance for loan
losses. Loan payments received on non-accrual loans are first applied to principal. When a loan is placed on non-accrual status there are several negative implications.
First, all interest accrued but unpaid at the time of the classification is reversed and deducted from the interest income totals for the Bank. Second, accruals of interest are discontinued until it becomes certain that both principal and interest
can be repaid. Third, there may be actual losses that necessitate additional provisions for loan losses charged against earnings.
As a
result of the COVID-19 pandemic, we anticipate that our commercial, commercial real estate, residential and consumer borrowers will continue to encounter economic difficulties, which could lead to increases in
our levels of nonperforming assets, impaired loans and troubled debt restructurings. Any potential financial impacts are unknown at this time.
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