FORM 10-K | ||
☒
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Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the fiscal year ended December 31, 2014
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or
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☐
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the transition period from _____________ to _____________.
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Commission file Number 0-15536 | ||
CODORUS VALLEY BANCORP, INC.
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(Exact name of registrant as specified in its charter)
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Pennsylvania
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23-2428543
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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105 Leader Heights Road, P.O. Box 2887, York, Pennsylvania 17405
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(Address of principal executive offices) (Zip Code)
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Registrant’s telephone number, including area code:
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(717) 747-1519
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Name of each exchange on which registered
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Common Stock, $2.50 par value
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NASDAQ Stock Market LLC
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Large accelerated filer ☐
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Accelerated filer ☒
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Non-accelerated filer ☐
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Smaller Reporting Company ☐
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Item 15. |
102
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103
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8 |
● | Provides extensive authorities to the federal bank regulatory agencies and, in particular, the Federal Reserve, to take proactive steps to reduce or eliminate threats to the safety of the financial system, impose strict controls on large bank holding companies ($50 billion or more) and nonbank financial companies to limit their risk, and take direct control of troubled financial companies considered systemically significant; | |
● | Increases bank supervision by restructuring the supervision of holding companies and depository institutions; establishes the equivalent of a prompt corrective action program for large bank holding companies; requires that capital requirements for holding companies be at least as strict as capital requirements for depository institutions; disallows new issuances of trust preferred securities from qualifying for Tier 1 capital treatment; directs federal bank regulators to develop specific capital requirements for holding companies and depository institutions that address activities that pose risk to the financial system, such as significant activities in higher risk areas, or concentrations in assets whose reported values are based on models; | |
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Establishes the Bureau of Consumer Financial Protection (“Bureau”) as an independent entity within the Federal Reserve System that has assumed responsibility for supervision and enforcement of most consumer protection laws, and has authority to supervise, examine and take enforcement action with respect to depository institutions with more than $10 billion in assets and nonbank mortgage industry participants and other designated nonbank providers of consumer financial services;
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Places certain limitations on investment and other activities by depository institutions, holding companies and their affiliates; expands the coverage of Section 23A of the Federal Reserve Act to include the credit exposure related to additional transactions, including derivatives; and
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Significantly increases the regulation of residential mortgage lending and servicing by banks and nonbanks by requiring, among other things, mortgage originators to ensure that the consumer will have the capacity to repay the loan; requires mortgage loan securitizers to retain a certain amount of risk, unless the mortgages conform to the new regulatory standards as qualified residential mortgages.
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9 |
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11 |
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increase loan delinquencies;
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increase problem assets and foreclosures;
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increase claims and lawsuits;
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decrease the demand for our products and services; and
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decrease the value of collateral for loans, especially real estate, in turn reducing customers’ borrowing power, the value of assets associated with nonperforming loans and collateral coverage.
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12 |
13 |
14 |
15 |
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17 |
18 |
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our financial condition, performance, creditworthiness and prospects;
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quarterly variations in our operating results or the quality of our assets;
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operating results that vary from the expectations of management, analysts and investors;
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changes in expectations as to our future financial performance;
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announcements of innovations, new products, strategic developments, significant contracts, acquisitions and other material events by us or our competitors;
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the operating and securities price performance of other companies that investors believe are comparable to us;
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future sales of our equity or equity-related securities;
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the credit, mortgage and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally;
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changes in global financial markets and global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility and other geopolitical, regulatory or judicial events; and
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the relatively low trading volume of our common stock.
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19 |
20 |
21 |
22 |
2014
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2013
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Dividends
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Dividends
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Quarter
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High
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Low
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Per Share
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High
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Low
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Per Share
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First
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$ | 21.29 | $ | 18.23 | $ | 0.114 | $ | 15.33 | $ | 12.01 | $ | 0.100 | ||||||||||||
Second
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20.88 | 18.52 | $ | 0.114 | 15.95 | 13.83 | $ | 0.100 | ||||||||||||||||
Third
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20.81 | 19.02 | $ | 0.119 | 17.32 | 15.65 | $ | 0.109 | ||||||||||||||||
Fourth
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24.00 | 16.29 | $ | 0.119 | 20.93 | 15.93 | $ | 0.109 |
23 |
Equity Compensation Plan Information
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Number of securities
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Number of securities
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remaining available for future
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to be issued upon
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Weighted-average
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issuance under equity
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exercise of outstanding
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exercise price of
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compensation plans
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options, warrants, and
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outstanding options,
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(excluding securities
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|||||||||||
Plan Category
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rights
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warrants and rights
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reflected in the first column)
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Equity compensation plans
approved by security holders
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190,585 | $ | 11.88 | 351,551 | (1) | ||||||||
Equity compensation plans not
approved by security holders
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0 | 0 | 16,545 | (2) | |||||||||
Total
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190,585 | $ | 11.88 | 368,096 |
(1) |
Includes 173,413 shares available for issuance under the 2007 Employee Stock Purchase Plan.
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(2) |
Shares available for issuance under the 2001 Employee Stock Bonus Plan that provides for shares
of common stock to employees as performance-based compensation.
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24 |
2014
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2013
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2012
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2011
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2010
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Summary of operations
(in thousands)
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Interest income
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$ | 50,400 | $ | 46,972 | $ | 46,512 | $ | 45,411 | $ | 44,027 | ||||||||||
Interest expense
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8,040 | 8,619 | 10,527 | 12,359 | 13,154 | |||||||||||||||
Net interest income
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42,360 | 38,353 | 35,985 | 33,052 | 30,873 | |||||||||||||||
Provision for loan losses
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1,600 | 1,470 | 1,750 | 4,935 | 2,990 | |||||||||||||||
Noninterest income
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8,153 | 7,754 | 8,190 | 7,358 | 7,574 | |||||||||||||||
Noninterest expense
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32,476 | 30,154 | 29,928 | 27,079 | 28,116 | |||||||||||||||
Income before income taxes
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16,437 | 14,483 | 12,497 | 8,396 | 7,341 | |||||||||||||||
Provision for income taxes
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4,668 | 3,917 | 3,103 | 1,617 | 1,133 | |||||||||||||||
Net income
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11,769 | 10,566 | 9,394 | 6,779 | 6,208 | |||||||||||||||
Preferred stock dividends and discount accretion
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174 | 250 | 384 | 1,460 | 980 | |||||||||||||||
Net income available to common shareholders
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$ | 11,595 | $ | 10,316 | $ | 9,010 | $ | 5,319 | $ | 5,228 | ||||||||||
Per common share
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(adjusted for stock dividends)
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Net income, basic
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$ | 2.07 | $ | 2.07 | $ | 1.84 | $ | 1.10 | $ | 1.10 | ||||||||||
Net income, diluted
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$ | 2.03 | $ | 2.03 | $ | 1.82 | $ | 1.10 | $ | 1.10 | ||||||||||
Cash dividends paid
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$ | 0.466 | $ | 0.417 | $ | 0.347 | $ | 0.304 | $ | 0.216 | ||||||||||
Stock dividends distributed
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5 | % | 5 | % | 5 | % | - | - | ||||||||||||
Book value
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$ | 18.25 | $ | 16.40 | $ | 15.45 | $ | 14.03 | $ | 12.53 | ||||||||||
Tangible book value
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$ | 18.25 | $ | 16.40 | $ | 15.45 | $ | 13.99 | $ | 12.47 | ||||||||||
Cash dividend payout ratio
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22.5 | % | 20.1 | % | 18.8 | % | 27.3 | % | 19.6 | % | ||||||||||
Weighted average shares outstanding
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5,611,806 | 4,981,789 | 4,896,752 | 4,814,041 | 4,738,381 | |||||||||||||||
Weighted average diluted shares outstanding
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5,710,117 | 5,081,307 | 4,963,624 | 4,844,670 | 4,745,655 | |||||||||||||||
Profitability ratios
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Return on average shareholders
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equity (ROE)
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10.22 | % | 10.08 | % | 9.55 | % | 8.04 | % | 8.12 | % | ||||||||||
Return on average assets (ROA)
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0.98 | % | 0.96 | % | 0.90 | % | 0.69 | % | 0.67 | % | ||||||||||
Net interest margin
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3.84 | % | 3.83 | % | 3.81 | % | 3.73 | % | 3.72 | % | ||||||||||
Efficiency ratio
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62.83 | % | 63.01 | % | 65.65 | % | 64.20 | % | 69.87 | % | ||||||||||
Net overhead ratio
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2.08 | % | 2.05 | % | 2.13 | % | 2.02 | % | 2.24 | % | ||||||||||
Capital ratios
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Tier 1 risk-based capital
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13.24 | % | 12.79 | % | 13.59 | % | 13.35 | % | 12.51 | % | ||||||||||
Total risk-based capital
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14.42 | % | 13.89 | % | 14.79 | % | 14.55 | % | 13.64 | % | ||||||||||
Average shareholders’ equity to average assets
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9.62 | % | 9.57 | % | 9.45 | % | 8.56 | % | 8.29 | % | ||||||||||
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Summary of financial condition
at year-end
(in thousands)
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Investment securities
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$ | 216,973 | $ | 233,483 | $ | 236,925 | $ | 237,496 | $ | 226,603 | ||||||||||
Loans
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920,554 | 859,898 | 740,225 | 696,384 | 645,839 | |||||||||||||||
Assets
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1,213,846 | 1,150,641 | 1,059,737 | 1,012,132 | 957,332 | |||||||||||||||
Deposits
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954,973 | 925,303 | 901,307 | 854,399 | 806,110 | |||||||||||||||
Borrowings
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132,590 | 110,856 | 50,171 | 56,885 | 68,805 | |||||||||||||||
Equity
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118,440 | 107,649 | 101,331 | 93,242 | 76,539 | |||||||||||||||
Other data
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Number of bank offices
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21 | 20 | 18 | 18 | 17 | |||||||||||||||
Number of employees (
full-time equivalents
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238 | 229 | 219 | 203 | 198 | |||||||||||||||
Wealth Management assets,
market value (
in thousands
)
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$ | 307,000 | $ | 261,044 | $ | 329,626 | $ | 277,505 | $ | 368,985 |
25 |
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Operating, legal and regulatory risks;
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Credit risk, including an increase in nonperforming assets requiring loss provisions and the incurrence of carrying costs related to nonperforming assets;
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Interest rate fluctuations which could increase our cost of funds or decrease our yield on earning
assets and therefore reduce our net interest income;
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Declines in the market value of investment securities considered to be other-than-temporary;
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Unavailability of capital when needed or availability at less than favorable terms;
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Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, may adversely affect the Corporation’s operations, net income or reputation;
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Inability to achieve merger-related synergies, and difficulties in integrating the business and operations of acquired institutions;
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A prolonged economic downturn;
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Political and competitive forces affecting banking, securities, asset management and credit services businesses;
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The effects of and changes in the rate of FDIC premiums, including special assessments;
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Future legislative or administrative changes to U.S. governmental capital programs;
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Enacted financial reform legislation, e.g., Dodd-Frank Wall Street Reform and Consumer Protection Act, may have a significant impact on the Corporation’s business and results of operations; and
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The risk that management’s analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.
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26 |
27 |
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Net interest income for 2014 increased $4,007,000 or 10 percent when compared to 2013, primarily due to an increase in the volume of commercial loans, and decreases in funding costs.
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Noninterest income for 2014 increased $399,000 or 5 percent when compared to 2013, primarily due to increases in trust fees, service fees on deposits, and gains on sales of investment securities. These increases more than offset a decrease in gains from the sale of residential mortgages.
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Noninterest expense for 2014 increased $2,322,000 or 8 percent above 2013, as personnel costs rose due to both franchise expansion activities (new financial centers), and planned staff additions given the Corporation’s overall business growth. Also, noninterest expenses for 2014 included pre-merger expenses associated with the Corporation’s acquisition of Madison Bancorp, Inc.
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The loan loss provision for 2014 increased $130,000 compared to 2013, reflective of the Corporation’s continued commercial loan growth and related credit risk profile.
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The provision for income taxes for 2014 increased $751,000 above the income tax provision for 2013. The increase is directionally consistent with the higher pretax income for 2014 versus 2013, and reflects a decrease in the amount of tax-exempt income when compared to 2013.
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Preferred stock dividends for 2014 decreased $76,000 compared to 2013. During 2014, the Corporation redeemed $13,000,000 of $25,000,000 in outstanding shares of preferred stock issued under the U.S. Treasury’s Small Business Lending Fund Program (SBLF Program).
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Earnings per share was $2.07 basic and $2.03 diluted, for both 2014 and 2013, as the increase in net income for 2014 was neutralized by the per common share dilutive impact of the Corporation’s private placement common capital raise which was completed in the first quarter of 2014.
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Net interest margin (tax-equivalent basis) for 2014 was 3.84 percent, compared to 3.83 percent for 2013. Given the continued low interest rate environment, the Corporation was able to decrease its cost of interest-bearing liabilities to 0.84 percent in 2014, as compared to 0.97 percent in 2013. However, these low market interest rates also resulted in slightly reduced yields on loans and investments, as the Corporation’s average yield on earning assets declined to 4.55 percent in 2014, compared to 4.66 percent in 2013.
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29 |
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31 |
32 |
2014
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2013
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2012
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Average
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Yield/
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Average
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Yield/
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Average
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Yield/
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|||||||||||||||||||||||||||||||
(dollars in thousands)
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Balance
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Interest
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Rate
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Balance
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Interest
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Rate
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Balance
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Interest
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Rate
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Assets
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Interest bearing deposits with banks
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$ | 25,336 | $ | 63 | 0.25 | % | $ | 25,674 | $ | 65 | 0.25 | % | $ | 37,101 | $ | 94 | 0.25 | % | ||||||||||||||||||
Investment securities:
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Taxable
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150,232 | 3,611 | 2.40 | 134,573 | 2,916 | 2.17 | 145,357 | 3,381 | 2.33 | |||||||||||||||||||||||||||
Tax-exempt
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74,579 | 2,913 | 3.91 | 90,850 | 3,561 | 3.92 | 84,357 | 3,587 | 4.25 | |||||||||||||||||||||||||||
Total investment securities
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224,811 | 6,524 | 2.90 | 225,423 | 6,477 | 2.87 | 229,714 | 6,968 | 3.03 | |||||||||||||||||||||||||||
Loans:
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Taxable (1)
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867,122 | 44,151 | 5.09 | 774,683 | 41,163 | 5.31 | 700,915 | 40,096 | 5.72 | |||||||||||||||||||||||||||
Tax-exempt
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18,754 | 926 | 4.94 | 11,716 | 643 | 5.49 | 13,150 | 770 | 5.86 | |||||||||||||||||||||||||||
Total loans
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885,876 | 45,077 | 5.09 | 786,399 | 41,806 | 5.32 | 714,065 | 40,866 | 5.72 | |||||||||||||||||||||||||||
Total earning assets
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1,136,023 | 51,664 | 4.55 | 1,037,496 | 48,348 | 4.66 | 980,880 | 47,928 | 4.89 | |||||||||||||||||||||||||||
Other assets (2)
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60,721 | 57,720 | 60,431 | |||||||||||||||||||||||||||||||||
Total assets
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$ | 1,196,744 | $ | 1,095,216 | $ | 1,041,311 | ||||||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity
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Deposits:
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Interest bearing demand
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$ | 390,417 | $ | 1,352 | 0.35 | % | $ | 371,503 | $ | 1,402 | 0.38 | % | $ | 336,077 | $ | 1,335 | 0.40 | % | ||||||||||||||||||
Savings
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41,485 | 71 | 0.17 | 37,906 | 94 | 0.25 | 33,516 | 84 | 0.25 | |||||||||||||||||||||||||||
Time
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410,917 | 5,245 | 1.28 | 408,229 | 6,159 | 1.51 | 427,536 | 8,196 | 1.92 | |||||||||||||||||||||||||||
Total interest bearing deposits
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842,819 | 6,668 | 0.79 | 817,638 | 7,655 | 0.94 | 797,129 | 9,615 | 1.21 | |||||||||||||||||||||||||||
Short-term borrowings
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33,744 | 170 | 0.50 | 22,724 | 125 | 0.55 | 20,843 | 122 | 0.59 | |||||||||||||||||||||||||||
Long-term debt
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81,164 | 1,202 | 1.48 | 47,018 | 839 | 1.78 | 36,212 | 790 | 2.18 | |||||||||||||||||||||||||||
Total interest bearing liabilities
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957,727 | 8,040 | 0.84 | 887,380 | 8,619 | 0.97 | 854,184 | 10,527 | 1.23 | |||||||||||||||||||||||||||
Noninterest bearing deposits
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115,982 | 95,738 | 82,008 | |||||||||||||||||||||||||||||||||
Other liabilities
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7,859 | 7,268 | 6,727 | |||||||||||||||||||||||||||||||||
Shareholders’ equity
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115,176 | 104,830 | 98,392 | |||||||||||||||||||||||||||||||||
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Total liabilities and
shareholders’ equity
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$ | 1,196,744 | $ | 1,095,216 | $ | 1,041,311 | ||||||||||||||||||||||||||||||
Net interest income (tax
equivalent basis)
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$ | 43,624 | $ | 39,729 | $ | 37,401 | ||||||||||||||||||||||||||||||
Net interest margin (3)
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3.84 | % | 3.83 | % | 3.81 | % | ||||||||||||||||||||||||||||||
Tax equivalent adjustment
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(1,264 | ) | (1,376 | ) | (1,416 | ) | ||||||||||||||||||||||||||||||
Net interest income
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$ | 42,360 | $ | 38,353 | $ | 35,985 |
(1)
|
Average balance includes average nonaccrual loans of $10,615,000 in 2014, $10,588,000 in 2013, and $11,538,000 in 2012. Interest includes net loan fees of $1,973,000 in 2014, $1,458,000 in 2013, and $1,060,000 in 2012.
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(2)
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Average balance includes average bank owned life insurance, foreclosed real estate and unrealized holding gains (losses) on investment securities.
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(3)
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Net interest income (tax equivalent basis) annualized as a percent of average interest earning assets.
|
33 |
2014 vs. 2013
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2013 vs. 2012
|
|||||||||||||||||||||||
Increase (decrease) due
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Increase (decrease) due
|
|||||||||||||||||||||||
to change in
|
to change in
|
|||||||||||||||||||||||
(dollars in thousands)
|
Volume
|
Rate
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Net
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Volume
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Rate
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Net
|
||||||||||||||||||
Interest Income
|
||||||||||||||||||||||||
Interest bearing deposits with banks
|
$ | (2 | ) | $ | 0 | $ | (2 | ) | $ | (29 | ) | $ | 0 | $ | (29 | ) | ||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
334 | 361 | 695 | (201 | ) | (264 | ) | (465 | ) | |||||||||||||||
Tax-exempt
|
(638 | ) | (10 | ) | (648 | ) | 278 | (304 | ) | (26 | ) | |||||||||||||
Loans:
|
||||||||||||||||||||||||
Taxable
|
5,573 | (2,585 | ) | 2,988 | 4,809 | (3,742 | ) | 1,067 | ||||||||||||||||
Tax-exempt
|
386 | (103 | ) | 283 | (84 | ) | (43 | ) | (127 | ) | ||||||||||||||
Total interest income
|
5,653 | (2,337 | ) | 3,316 | 4,773 | (4,353 | ) | 420 | ||||||||||||||||
Interest Expense
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Interest bearing demand
|
81 | (131 | ) | (50 | ) | 127 | (60 | ) | 67 | |||||||||||||||
Savings
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9 | (32 | ) | (23 | ) | 11 | (1 | ) | 10 | |||||||||||||||
Time
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41 | (955 | ) | (914 | ) | (370 | ) | (1,667 | ) | (2,037 | ) | |||||||||||||
Short-term borrowings
|
60 | (15 | ) | 45 | 7 | (4 | ) | 3 | ||||||||||||||||
Long-term debt
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590 | (227 | ) | 363 | 236 | (187 | ) | 49 | ||||||||||||||||
Total interest expense
|
781 | (1,360 | ) | (579 | ) | 11 | (1,919 | ) | (1,908 | ) | ||||||||||||||
Net interest income
|
$ | 4,872 | $ | (977 | ) | $ | 3,895 | $ | 4,762 | $ | (2,434 | ) | $ | 2,328 |
34 |
Table 3 - Noninterest income
|
||||||||||||
(
dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Trust and investment services fees
|
$ | 2,223 | $ | 1,922 | $ | 1,702 | ||||||
Income from mutual fund, annuity and insurance sales
|
648 | 614 | 896 | |||||||||
Service charges on deposit accounts
|
2,968 | 2,727 | 2,560 | |||||||||
Income from bank owned life insurance
|
714 | 727 | 633 | |||||||||
Other income
|
630 | 662 | 645 | |||||||||
Net gain on sales of loans held for sale
|
452 | 1,019 | 1,327 | |||||||||
Net gain on sales of securities
|
518 | 83 | 427 | |||||||||
Total noninterest income
|
$ | 8,153 | $ | 7,754 | $ | 8,190 |
35 |
Table 4 - Noninterest expense
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Personnel
|
$ | 18,025 | $ | 16,827 | $ | 15,312 | ||||||
Occupancy of premises, net
|
2,089 | 2,049 | 1,977 | |||||||||
Furniture and equipment
|
2,251 | 2,045 | 1,851 | |||||||||
Postage, stationery and supplies
|
741 | 586 | 508 | |||||||||
Professional and legal
|
758 | 667 | 534 | |||||||||
Marketing
|
1,295 | 1,074 | 907 | |||||||||
FDIC insurance
|
663 | 622 | 733 | |||||||||
Debit card processing
|
790 | 773 | 707 | |||||||||
Charitable donations
|
1,134 | 685 | 640 | |||||||||
Telephone
|
570 | 543 | 532 | |||||||||
External data processing
|
878 | 693 | 605 | |||||||||
Foreclosed real estate including (gains) losses on sales
|
425 | 713 | 2,830 | |||||||||
Other
|
2,857 | 2,877 | 2,792 | |||||||||
Total noninterest expense
|
$ | 32,476 | $ | 30,154 | $ | 29,928 |
36 |
37 |
38 |
Table 5-Investment Securities
|
||||||||||||||||||||||||
December 31,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||||||||
(dollars in thousands)
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
U.S. Treasury notes
|
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 5,001 | $ | 5,032 | ||||||||||||
U.S. agency
|
17,811 | 17,907 | 33,265 | 33,499 | 37,000 | 38,058 | ||||||||||||||||||
U.S. agency mortgage-backed, residential
|
122,443 | 124,815 | 105,181 | 105,919 | 84,630 | 88,233 | ||||||||||||||||||
State and municipal
|
68,879 | 70,452 | 87,004 | 89,323 | 98,744 | 102,739 | ||||||||||||||||||
Total debt securities
|
$ | 209,133 | $ | 213,174 | $ | 225,450 | $ | 228,741 | $ | 225,375 | $ | 234,062 |
39 |
(1) Weighted average yields (tax equivalent basis) were calculated on the amortized cost basis.
|
||||||||||||||||||||||||
(2) U.S. agency mortgage-backed securities are included in the maturity categories based on average expected life.
|
40 |
December 31,
|
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
2014
|
%
|
2013
|
%
|
2012
|
%
|
2011
|
%
|
2010
|
%
|
||||||||||||||||||||||||||||||
Commercial, financial and agricultural
|
$ | 658,627 | 71.6 | $ | 607,779 | 70.7 | $ | 510,544 | 69.2 | $ | 462,061 | 66.6 | $ | 419,649 | 65.5 | |||||||||||||||||||||||||
Real estate-construction and
land development
|
114,695 | 12.5 | 106,436 | 12.4 | 96,936 | 13.2 | 103,514 | 14.9 | 95,735 | 14.9 | ||||||||||||||||||||||||||||||
Total commercial related loans
|
773,322 | 84.1 | 714,215 | 83.1 | 607,480 | 82.4 | 565,575 | 81.5 | 515,384 | 80.4 | ||||||||||||||||||||||||||||||
Real estate - residential mortgages
|
32,453 | 3.5 | 25,695 | 3.0 | 23,511 | 3.2 | 21,324 | 3.1 | 20,357 | 3.2 | ||||||||||||||||||||||||||||||
Consumer and home equity
|
114,315 | 12.4 | 119,474 | 13.9 | 106,143 | 14.4 | 106,616 | 15.4 | 105,108 | 16.4 | ||||||||||||||||||||||||||||||
Total consumer related loans
|
146,768 | 15.9 | 145,169 | 16.9 | 129,654 | 17.6 | 127,940 | 18.5 | 125,465 | 19.6 | ||||||||||||||||||||||||||||||
Total loans
|
$ | 920,090 | 100.0 | $ | 859,384 | 100.0 | $ | 737,134 | 100.0 | $ | 693,515 | 100.0 | $ | 640,849 | 100.0 |
December 31, 2014
|
||||||||||||||||
Maturity Distribution
|
||||||||||||||||
One
|
||||||||||||||||
One year
|
through
|
After
|
||||||||||||||
(dollars in thousands)
|
or less
|
five years
|
five years
|
Total
|
||||||||||||
Commercial, financial and agricultural
|
$ | 77,418 | $ | 150,767 | $ | 430,442 | $ | 658,627 | ||||||||
Real estate-construction and land development
|
54,585 | 38,941 | 21,169 | 114,695 | ||||||||||||
Total commercial related loans
|
$ | 132,003 | $ | 189,708 | $ | 451,611 | $ | 773,322 | ||||||||
Fixed interest rates
|
$ | 24,923 | $ | 135,391 | $ | 399,425 | $ | 559,739 | ||||||||
Floating interest rates
|
107,080 | 54,317 | 52,186 | 213,583 | ||||||||||||
Total commercial related loans
|
$ | 132,003 | $ | 189,708 | $ | 451,611 | $ | 773,322 |
41 |
42 |
43 |
44 |
Ratios
|
Federal
|
Federal
|
Capital *
|
|||||||||||||||||||||
at December 31,
|
Minimum
|
Well
|
at December 31,
|
|||||||||||||||||||||
(dollars in thousands)
|
2014
|
2013
|
Required
|
Capitalized
|
2014
|
2013
|
||||||||||||||||||
Tier 1 risk-based capital
|
||||||||||||||||||||||||
(as a percentage of risk weighted assets)
|
||||||||||||||||||||||||
Codorus Valley Bancorp, Inc. (consolidated)
|
13.24 | % | 12.79 | % | 4.00 | % | n/a | % | $ | 125,773 | $ | 115,477 | ||||||||||||
PeoplesBank
|
12.85 | 12.42 | 4.00 | 6.00 | 121,634 | 111,713 | ||||||||||||||||||
Total risk-based capital
|
||||||||||||||||||||||||
(as a percentage of risk weighted assets)
|
||||||||||||||||||||||||
Codorus Valley Bancorp, Inc. (consolidated)
|
14.42 | % | 13.89 | % | 8.00 | % | n/a | % | $ | 136,935 | $ | 125,452 | ||||||||||||
PeoplesBank
|
14.03 | 13.53 | 8.00 | 10.00 | 132,796 | 121,688 | ||||||||||||||||||
Leverage
|
||||||||||||||||||||||||
(Tier 1 capital as a percentage of average total assets)
|
||||||||||||||||||||||||
Codorus Valley Bancorp, Inc. (consolidated)
|
10.32 | % | 10.18 | % | 4.00 | % | n/a | % | $ | 125,773 | $ | 115,477 | ||||||||||||
PeoplesBank
|
10.01 | 9.88 | 4.00 | 5.00 | 121,634 | 111,713 | ||||||||||||||||||
* Net unrealized gains and losses on securities available-for-sale, net of taxes, are disregarded for capital ratio computation
purposes in accordance with federal regulatory banking guidelines.
|
45 |
As of January 1:
|
|||||
2015
|
2016
|
2017
|
2018
|
2019
|
|
Minimum common equity Tier 1 capital ratio
|
4.5%
|
4.5%
|
4.5%
|
4.5%
|
4.5%
|
Common equity Tier 1 capital conservation buffer
|
N/A
|
0.625%
|
1.25%
|
1.875%
|
2.5%
|
Minimum common equity Tier 1 capital ratio plus capital conservation buffer
|
4.5%
|
5.125%
|
5.75%
|
6.375%
|
7.0%
|
Phase-in of most deductions from common equity Tier 1 capital
|
40%
|
60%
|
80%
|
100%
|
100%
|
Minimum Tier 1 capital ratio
|
6.0%
|
6.0%
|
6.0%
|
6.0%
|
6.0%
|
Minimum Tier 1 capital ratio plus capital conservation buffer
|
N/A
|
6.625%
|
7.25%
|
7.875%
|
8.5%
|
Minimum total capital ratio
|
8.0%
|
8.0%
|
8.0%
|
8.0%
|
8.0%
|
Minimum total capital ratio plus capital conservation buffer
|
N/A
|
8.625%
|
9.25%
|
9.875%
|
10.5%
|
Capital Conservation Buffer
(as a % of risk-weighted assets)
|
Maximum Payout
(as a % of eligible retained income)
|
Greater than 2.5%
|
No payout limitation applies
|
≤2.5% and >1.875%
|
60%
|
≤1.875% and >1.25%
|
40%
|
≤1.25% and >0.625%
|
20%
|
≤0.625%
|
0%
|
46 |
●
|
The Corporation follows detailed written lending policies and procedures.
|
●
|
Lending authority is granted commensurate with dollar amount, loan type, level of risk, and loan officer experience.
|
●
|
Loan review committees function at both the senior lending officer level and the Board level to review and approve loans that exceed pre-established dollar thresholds and/or meet other criteria.
|
●
|
The Corporation lends mainly within its primary geographical market area, including York County, Pennsylvania and northern-central Maryland. Although this focus may pose a geographical concentration risk, the diverse local economies and employee knowledge of our customers lessens this risk.
|
●
|
The loan portfolio is diversified to prevent dependency upon a single customer or small group of related customers.
|
●
|
The Corporation does not participate in the subprime lending market, nor does it invest in securities backed by subprime mortgages.
|
●
|
The Corporation does not lend to foreign countries or persons residing therein.
|
Loan type
|
LTV ratio %
|
|
Residential, owner occupied 1-4 units, tax assessment (MD)
|
90
|
|
Residential, owner occupied 1-4 units, tax assessment (PA)
|
80
|
|
Residential, owner occupied 1-4 units, certified appraisal
|
80
|
|
Residential, non-owner occupied 1-4 units, certified appraisal
|
75
|
|
Residential, 5 or more units
|
75
|
|
Agricultural
|
75
|
|
Commercial
|
70
|
|
Industrial
|
65
|
|
Vacant land (depending on improvements, approvals)
|
60-70
|
|
Special/limited use properties
|
50
|
47 |
48 |
December 31,
|
|||||||||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||
Nonaccrual loans
|
$
|
6,384
|
$
|
13,231
|
$
|
6,232
|
$
|
5,931
|
$
|
14,844
|
|||||||||
Nonaccrual loans, troubled debt restructurings
|
2,242
|
2,069
|
2,110
|
5,770
|
3,680
|
||||||||||||||
Accruing loans that are contractually past due
90 days or more as to principal and interest
|
54
|
0
|
186
|
0
|
197
|
||||||||||||||
Total nonperforming loans
|
8,680
|
15,300
|
8,528
|
11,701
|
18,721
|
||||||||||||||
Foreclosed real estate, net of allowance
|
2,542
|
4,068
|
3,633
|
16,243
|
10,572
|
||||||||||||||
Total nonperforming assets
|
$
|
11,222
|
$
|
19,368
|
$
|
12,161
|
$
|
27,944
|
$
|
29,293
|
|||||||||
Accruing troubled debt restructurings
|
$
|
1,996
|
$
|
3,342
|
$
|
3,550
|
$
|
3,272
|
$
|
0
|
|||||||||
Total period-end loans, net of deferred fees
|
$
|
920,090
|
$
|
859,384
|
$
|
737,134
|
$
|
693,515
|
$
|
640,849
|
|||||||||
Allowance for loan losses (ALL)
|
$
|
11,162
|
$
|
9,975
|
$
|
9,302
|
$
|
8,702
|
$
|
7,626
|
|||||||||
ALL as a % of total period-end loans
|
1.21
|
%
|
1.16
|
%
|
1.26
|
%
|
1.25
|
%
|
1.19
|
%
|
|||||||||
Annualized net charge-offs as a % of average total loans
|
0.05
|
%
|
0.10
|
%
|
0.16
|
%
|
0.58
|
%
|
0.39
|
%
|
|||||||||
ALL as a % of nonperforming loans
|
128.59
|
%
|
65.20
|
%
|
109.08
|
%
|
74.38
|
%
|
40.74
|
%
|
|||||||||
Nonperforming loans as a % of total period-end loans
|
0.94
|
%
|
1.78
|
%
|
1.16
|
%
|
1.69
|
%
|
2.92
|
%
|
|||||||||
Nonperforming assets as a % of total period-end
loans and net foreclosed real estate
|
1.22
|
%
|
2.24
|
%
|
1.64
|
%
|
3.94
|
%
|
4.50
|
%
|
|||||||||
Nonperforming assets as a % of total period-end assets
|
0.92
|
%
|
1.68
|
%
|
1.15
|
%
|
2.76
|
%
|
3.06
|
%
|
|||||||||
Nonperforming assets as a % of total period-end
shareholders’ equity
|
9.47
|
%
|
17.99
|
%
|
12.00
|
%
|
29.97
|
%
|
38.27
|
%
|
49 |
50 |
51 |
(dollars in thousands)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
Balance - beginning of year
|
$ | 9,975 | $ | 9,302 | $ | 8,702 | $ | 7,626 | $ | 7,175 | ||||||||||
Provision charged to operating expense
|
1,600 | 1,470 | 1,750 | 4,935 | 2,990 | |||||||||||||||
Loans charged off:
|
||||||||||||||||||||
Commercial, financial and agricultural
|
326 | 591 | 607 | 3,444 | 1,519 | |||||||||||||||
Real estate - construction and land development
|
0 | 0 | 2 | 0 | 789 | |||||||||||||||
Real estate - residential mortgages
|
30 | 27 | 115 | 141 | 31 | |||||||||||||||
Consumer and home equity
|
396 | 380 | 501 | 371 | 298 | |||||||||||||||
Total loans charged off
|
752 | 998 | 1,225 | 3,956 | 2,637 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial, financial and agricultural
|
248 | 102 | 17 | 9 | 24 | |||||||||||||||
Real estate - residential mortgages
|
4 | 2 | 41 | 0 | 0 | |||||||||||||||
Consumer and home equity
|
87 | 97 | 17 | 88 | 74 | |||||||||||||||
Total recoveries
|
339 | 201 | 75 | 97 | 98 | |||||||||||||||
Net charge-offs
|
413 | 797 | 1,150 | 3,859 | 2,539 | |||||||||||||||
Balance - end of year
|
$ | 11,162 | $ | 9,975 | $ | 9,302 | $ | 8,702 | $ | 7,626 |
Ratios:
|
||||||||||||||||||||
Net charge offs as a % of average total loans
|
0.05 | % | 0.10 | % | 0.16 | % | 0.58 | % | 0.39 | % | ||||||||||
Allowance for loan losses as a % of total period-end loans
|
1.21 | % | 1.16 | % | 1.26 | % | 1.25 | % | 1.19 | % | ||||||||||
Allowance for loan losses as a % of nonperforming loans
|
128.59 | % | 65.20 | % | 109.08 | % | 74.38 | % | 40.74 | % |
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
% Total
|
% Total
|
% Total
|
% Total
|
% Total
|
||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Commercial,
financial and
agricultural
|
$ | 7,134 | 71.6 | $ | 6,131 | 70.7 | $ | 6,461 | 69.2 | $ | 5,950 | 66.6 | $ | 5,226 | 65.5 | |||||||||||||||||||||||||
Real estate - construction
and land development
|
2,236 | 12.5 | 2,073 | 12.4 | 1,571 | 13.2 | 2,170 | 14.9 | 1,561 | 14.9 | ||||||||||||||||||||||||||||||
Total commercial related
|
9,370 | 84.1 | 8,204 | 83.1 | 8,032 | 82.4 | 8,120 | 81.5 | 6,787 | 80.4 | ||||||||||||||||||||||||||||||
Real estate - residential
mortgages
|
64 | 3.5 | 65 | 3.0 | 124 | 3.2 | 88 | 3.1 | 30 | 3.2 | ||||||||||||||||||||||||||||||
Consumer and home equity
|
392 | 12.4 | 506 | 13.9 | 475 | 14.4 | 257 | 15.4 | 284 | 16.4 | ||||||||||||||||||||||||||||||
Total consumer related
|
456 | 15.9 | 571 | 16.9 | 599 | 17.6 | 345 | 18.5 | 314 | 19.6 | ||||||||||||||||||||||||||||||
Unallocated
|
1,336 | n/a | 1,200 | n/a | 671 | n/a | 237 | n/a | 525 | n/a | ||||||||||||||||||||||||||||||
Total
|
$ | 11,162 | 100.0 | $ | 9,975 | 100.0 | $ | 9,302 | 100.0 | $ | 8,702 | 100.0 | $ | 7,626 | 100.0 |
52 |
53 |
December 31,
|
December 31,
|
|||||||
(dollars in thousands, except share and per share data)
|
2014
|
2013
|
||||||
Assets
|
||||||||
Interest bearing deposits with banks
|
$ | 17,420 | $ | 1,947 | ||||
Cash and due from banks
|
13,674 | 13,115 | ||||||
Total cash and cash equivalents
|
31,094 | 15,062 | ||||||
Securities, available-for-sale
|
213,174 | 228,741 | ||||||
Restricted investment in bank stocks, at cost
|
3,799 | 4,742 | ||||||
Loans held for sale
|
464 | 514 | ||||||
Loans (net of deferred fees of $2,249 - 2014 and $1,963 - 2013)
|
920,090 | 859,384 | ||||||
Less-allowance for loan losses
|
(11,162 | ) | (9,975 | ) | ||||
Net loans
|
908,928 | 849,409 | ||||||
Premises and equipment, net
|
18,471 | 14,599 | ||||||
Other assets
|
37,916 | 37,574 | ||||||
Total assets
|
$ | 1,213,846 | $ | 1,150,641 | ||||
Liabilities
|
||||||||
Deposits
|
||||||||
Noninterest bearing
|
$ | 121,673 | $ | 107,921 | ||||
Interest bearing
|
833,300 | 817,382 | ||||||
Total deposits
|
954,973 | 925,303 | ||||||
Short-term borrowings
|
42,184 | 40,363 | ||||||
Long-term debt
|
90,406 | 70,493 | ||||||
Other liabilities
|
7,843 | 6,833 | ||||||
Total liabilities
|
1,095,406 | 1,042,992 | ||||||
Shareholders
’
equity
|
||||||||
Preferred stock, par value $2.50 per share; $1,000 liquidation preference,
1,000,000 shares authorized; Series B shares issued and outstanding:
12,000 at December 31, 2014 and 25,000 at December 31, 2013
|
12,000 | 25,000 | ||||||
Common stock, par value $2.50 per share; 15,000,000 shares authorized; shares issued
and outstanding: 5,830,913 at December 31, 2014 and 4,800,318 at December 31, 2013
|
14,577 | 12,001 | ||||||
Additional paid-in capital
|
62,713 | 45,399 | ||||||
Retained earnings
|
26,483 | 23,077 | ||||||
Accumulated other comprehensive income
|
2,667 | 2,172 | ||||||
Total shareholders
’
equity
|
118,440 | 107,649 | ||||||
Total liabilities and shareholders’ equity
|
$ | 1,213,846 | $ | 1,150,641 |
54 |
Years ended December 31,
|
||||||||||||
(dollars in thousands, except per share data)
|
2014
|
2013
|
2012
|
|||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$ | 44,770 | $ | 41,594 | $ | 40,613 | ||||||
Investment securities:
|
||||||||||||
Taxable
|
3,400 | 2,885 | 3,367 | |||||||||
Tax-exempt
|
1,956 | 2,397 | 2,424 | |||||||||
Dividends
|
211 | 31 | 14 | |||||||||
Other
|
63 | 65 | 94 | |||||||||
Total interest income
|
50,400 | 46,972 | 46,512 | |||||||||
Interest expense
|
||||||||||||
Deposits
|
6,668 | 7,655 | 9,615 | |||||||||
Federal funds purchased and other short-term borrowings
|
170 | 125 | 122 | |||||||||
Long-term debt
|
1,202 | 839 | 790 | |||||||||
Total interest expense
|
8,040 | 8,619 | 10,527 | |||||||||
Net interest income
|
42,360 | 38,353 | 35,985 | |||||||||
Provision for loan losses
|
1,600 | 1,470 | 1,750 | |||||||||
Net interest income after provision for loan losses
|
40,760 | 36,883 | 34,235 | |||||||||
Noninterest income
|
||||||||||||
Trust and investment services fees
|
2,223 | 1,922 | 1,702 | |||||||||
Income from mutual fund, annuity and insurance sales
|
648 | 614 | 896 | |||||||||
Service charges on deposit accounts
|
2,968 | 2,727 | 2,560 | |||||||||
Income from bank owned life insurance
|
714 | 727 | 633 | |||||||||
Other income
|
630 | 662 | 645 | |||||||||
Net gain on sales of loans held for sale
|
452 | 1,019 | 1,327 | |||||||||
Net gain on sales of securities
|
518 | 83 | 427 | |||||||||
Total noninterest income
|
8,153 | 7,754 | 8,190 | |||||||||
Noninterest expense
|
||||||||||||
Personnel
|
18,025 | 16,827 | 15,312 | |||||||||
Occupancy of premises, net
|
2,089 | 2,049 | 1,977 | |||||||||
Furniture and equipment
|
2,251 | 2,045 | 1,851 | |||||||||
Postage, stationery and supplies
|
741 | 586 | 508 | |||||||||
Professional and legal
|
758 | 667 | 534 | |||||||||
Marketing
|
1,295 | 1,074 | 907 | |||||||||
FDIC insurance
|
663 | 622 | 733 | |||||||||
Debit card processing
|
790 | 773 | 707 | |||||||||
Charitable donations
|
1,134 | 685 | 640 | |||||||||
Telephone
|
570 | 543 | 532 | |||||||||
External data processing
|
878 | 693 | 605 | |||||||||
Foreclosed real estate including (gains) losses on sales
|
425 | 713 | 2,830 | |||||||||
Other
|
2,857 | 2,877 | 2,792 | |||||||||
Total noninterest expense
|
32,476 | 30,154 | 29,928 | |||||||||
Income before income taxes
|
16,437 | 14,483 | 12,497 | |||||||||
Provision for income taxes
|
4,668 | 3,917 | 3,103 | |||||||||
Net income
|
11,769 | 10,566 | 9,394 | |||||||||
Preferred stock dividends
|
174 | 250 | 384 | |||||||||
Net income available to common shareholders
|
$ | 11,595 | $ | 10,316 | $ | 9,010 | ||||||
Net income per common share, basic
|
$ | 2.07 | $ | 2.07 | $ | 1.84 | ||||||
Net income per common share, diluted
|
$ | 2.03 | $ | 2.03 | $ | 1.82 |
55 |
Years ended December 31,
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Net income
|
$ | 11,769 | $ | 10,566 | $ | 9,394 | ||||||
Other comprehensive income (loss):
|
||||||||||||
Securities available for sale:
|
||||||||||||
Net unrealized holding gains (losses) arising during the period
|
||||||||||||
(net of tax expense (benefit) of $431, ($1,806), and $47, respectively)
|
837 | (3,506 | ) | 91 | ||||||||
Reclassification adjustment for (gains) included in net income
|
||||||||||||
(net of tax expense of $176, $28, and $145, respectively) (a) (b)
|
(342 | ) | (55 | ) | (282 | ) | ||||||
Net unrealized gains (losses)
|
495 | (3,561 | ) | (191 | ) | |||||||
Comprehensive income
|
$ | 12,264 | $ | 7,005 | $ | 9,203 |
|
(a)
|
Amounts are included in net gain on sales of securities on the Consolidated Statements of Income within noninterest income.
|
|
(b)
|
Income tax amounts are included in provision for income taxes on the Consolidated Statements of Income.
|
56 |
Years ended December 31,
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$ | 11,769 | $ | 10,566 | $ | 9,394 | ||||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||||||
Depreciation/amortization
|
1,772 | 1,546 | 1,377 | |||||||||
Net amortization of premiums on securities
|
978 | 1,223 | 1,438 | |||||||||
Amortization of deferred loan origination fees and costs
|
(774 | ) | (588 | ) | (311 | ) | ||||||
Amortization of intangible assets
|
0 | 0 | 190 | |||||||||
Provision for loan losses
|
1,600 | 1,470 | 1,750 | |||||||||
Provision for losses on foreclosed real estate
|
60 | 342 | 2,663 | |||||||||
Deferred income tax expense (benefit)
|
77 | (437 | ) | 385 | ||||||||
Amortization of investment in real estate partnership
|
208 | 325 | 335 | |||||||||
Increase in bank owned life insurance
|
(714 | ) | (727 | ) | (633 | ) | ||||||
Originations of loans held for sale
|
(21,894 | ) | (52,877 | ) | (72,298 | ) | ||||||
Proceeds from sales of loans held for sale
|
22,396 | 56,215 | 73,403 | |||||||||
Net gain on sales of loans held for sale
|
(452 | ) | (1,019 | ) | (1,327 | ) | ||||||
Loss on disposal of premises and equipment
|
5 | 1 | 9 | |||||||||
Net gain on sales of securities available-for-sale
|
(518 | ) | (83 | ) | (427 | ) | ||||||
Net loss (gain) on sales of foreclosed real estate
|
50 | (15 | ) | 167 | ||||||||
Stock-based compensation
|
288 | 318 | 295 | |||||||||
(Increase) decrease in interest receivable
|
(119 | ) | (4 | ) | 73 | |||||||
(Increase) decrease in other assets
|
(442 | ) | 1,475 | 416 | ||||||||
Increase (decrease) in interest payable
|
86 | (79 | ) | (51 | ) | |||||||
Increase (decrease) in other liabilities
|
969 | (4 | ) | (365 | ) | |||||||
Net cash provided by operating activities
|
15,345 | 17,648 | 16,483 | |||||||||
Cash flows from investing activities
|
||||||||||||
Purchases of securities, available-for-sale
|
(37,736 | ) | (63,161 | ) | (63,119 | ) | ||||||
Maturities, repayments and calls of securities, available-for-sale
|
40,682 | 41,855 | 44,178 | |||||||||
Sales of securities, available-for-sale
|
12,911 | 20,090 | 17,440 | |||||||||
Redemption (purchase) of restricted investment in bank stock
|
943 | (1,879 | ) | 772 | ||||||||
Net increase in loans made to customers
|
(61,940 | ) | (123,171 | ) | (44,689 | ) | ||||||
Purchases of premises and equipment
|
(5,649 | ) | (4,653 | ) | (2,018 | ) | ||||||
Investment in bank owned life insurance
|
(1,186 | ) | (5,307 | ) | (237 | ) | ||||||
Proceeds from bank owned life insurance
|
82 | 0 | 206 | |||||||||
Investment in foreclosed real estate
|
0 | 0 | (17 | ) | ||||||||
Proceeds from sales of foreclosed real estate
|
2,970 | 207 | 10,028 | |||||||||
Net cash used in investing activities
|
(48,923 | ) | (136,019 | ) | (37,456 | ) | ||||||
Cash flows from financing activities
|
||||||||||||
Net increase in demand and savings deposits
|
44,599 | 34,734 | 63,343 | |||||||||
Net decrease in time deposits
|
(14,929 | ) | (10,738 | ) | (16,435 | ) | ||||||
Net increase in short-term borrowings
|
1,821 | 21,007 | 9,099 | |||||||||
Proceeds from issuance of long-term debt
|
20,000 | 40,000 | 0 | |||||||||
Repayment of long-term debt
|
(87 | ) | (322 | ) | (15,813 | ) | ||||||
Tax benefit on vested restricted stock
|
52 | 89 | 44 | |||||||||
Cash dividends paid to preferred shareholders
|
(207 | ) | (250 | ) | (634 | ) | ||||||
Cash dividends paid to common shareholders
|
(2,611 | ) | (2,074 | ) | (1,690 | ) | ||||||
Redemption of preferred stock
|
(13,000 | ) | 0 | 0 | ||||||||
Net issuance of common stock
|
13,982 | 1,239 | 627 | |||||||||
Cash paid in lieu of fractional shares
|
(10 | ) | (9 | ) | (6 | ) | ||||||
Net cash provided by financing activities
|
49,610 | 83,676 | 38,535 | |||||||||
Net increase (decrease) in cash and cash equivalents
|
16,032 | (34,695 | ) | 17,562 | ||||||||
Cash and cash equivalents at beginning of year
|
15,062 | 49,757 | 32,195 | |||||||||
Cash and cash equivalents at end of period
|
$ | 31,094 | $ | 15,062 | $ | 49,757 |
57 |
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||||||
Preferred
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
|||||||||||||||||||||||
(dollars in thousands, except per share data)
|
Stock
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
|||||||||||||||||||||
Balance, January 1, 2012
|
$ | 25,000 | $ | 10,507 | $ | 37,253 | $ | 14,558 | $ | 5,924 | $ | 0 | $ | 93,242 | ||||||||||||||
Net income
|
9,394 | 9,394 | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
(191 | ) | (191 | ) | ||||||||||||||||||||||||
Common stock cash dividends ($0.347 per share, adjusted)
|
(1,690 | ) | (1,690 | ) | ||||||||||||||||||||||||
5% common stock dividend, 211,564 shares at fair value
|
529 | 2,475 | (3,010 | ) | (6 | ) | ||||||||||||||||||||||
Preferred stock cash dividends
|
(384 | ) | (384 | ) | ||||||||||||||||||||||||
Stock-based compensation including related tax benefit
|
339 | 339 | ||||||||||||||||||||||||||
Withheld shares of restricted stock
|
(80 | ) | (80 | ) | ||||||||||||||||||||||||
Issuance and reissuance of common stock including related tax benefit:
|
||||||||||||||||||||||||||||
23,165 shares under the dividend reinvestment
and stock purchase plan
|
50 | 216 | 44 | 310 | ||||||||||||||||||||||||
28,264 shares under the employee stock option plan
|
65 | 199 | 36 | 300 | ||||||||||||||||||||||||
10,784 shares under employee stock purchase plan
|
27 | 70 | 97 | |||||||||||||||||||||||||
11,290 shares of stock-based compensation awards
|
28 | (28 | ) | 0 | ||||||||||||||||||||||||
Balance, December 31, 2012
|
$ | 25,000 | $ | 11,206 | $ | 40,524 | $ | 18,868 | $ | 5,733 | $ | 0 | $ | 101,331 | ||||||||||||||
Net income
|
10,566 | 10,566 | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
(3,561 | ) | (3,561 | ) | ||||||||||||||||||||||||
Common stock cash dividends ($0.417 per share, adjusted)
|
(2,074 | ) | (2,074 | ) | ||||||||||||||||||||||||
5% common stock dividend, 225,937 shares at fair value
|
565 | 3,459 | (4,033 | ) | (9 | ) | ||||||||||||||||||||||
Preferred stock cash dividends
|
(250 | ) | (250 | ) | ||||||||||||||||||||||||
Stock-based compensation including related tax benefit
|
407 | 407 | ||||||||||||||||||||||||||
Forfeiture and withheld shares of restricted stock
|
5 | (169 | ) | (164 | ) | |||||||||||||||||||||||
Issuance and reissuance of common stock including related tax benefit:
|
||||||||||||||||||||||||||||
19,683 shares under the dividend reinvestment
and stock purchase plan
|
40 | 233 | 82 | 355 | ||||||||||||||||||||||||
65,441 shares under the employee stock option plan
|
159 | 739 | 38 | 936 | ||||||||||||||||||||||||
8,420 shares under employee stock purchase plan
|
10 | 53 | 49 | 112 | ||||||||||||||||||||||||
8,480 shares of stock-based compensation awards
|
21 | (21 | ) | 0 | ||||||||||||||||||||||||
Balance, December 31, 2013
|
$ | 25,000 | $ | 12,001 | $ | 45,399 | $ | 23,077 | $ | 2,172 | $ | 0 | $ | 107,649 | ||||||||||||||
Net income
|
11,769 | 11,769 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
495 | 495 | ||||||||||||||||||||||||||
Common stock cash dividends ($0.466 per share, adjusted)
|
(2,611 | ) | (2,611 | ) | ||||||||||||||||||||||||
5% common stock dividend, 275,900 shares at fair value
|
690 | 4,878 | (5,578 | ) | (10 | ) | ||||||||||||||||||||||
Preferred stock cash dividends
|
(174 | ) | (174 | ) | ||||||||||||||||||||||||
Redemption of preferred stock
|
(13,000 | ) | (13,000 | ) | ||||||||||||||||||||||||
Stock-based compensation including related tax benefit
|
340 | 340 | ||||||||||||||||||||||||||
Forfeiture and withheld shares of restricted stock
|
4 | (39 | ) | (35 | ) | |||||||||||||||||||||||
Issuance and reissuance of common stock including related tax benefit:
|
||||||||||||||||||||||||||||
650,000 shares through private placement
|
1,625 | 10,885 | 12,510 | |||||||||||||||||||||||||
17,749 shares under the dividend reinvestment
and stock purchase plan
|
42 | 333 | 2 | 377 | ||||||||||||||||||||||||
72,585 shares under the employee stock option plan
|
181 | 819 | 1,000 | |||||||||||||||||||||||||
7,710 shares under employee stock purchase plan
|
17 | 106 | 7 | 130 | ||||||||||||||||||||||||
9,830 shares of stock-based compensation awards
|
21 | (51 | ) | 30 | 0 | |||||||||||||||||||||||
Balance, December 31, 2014
|
$ | 12,000 | $ | 14,577 | $ | 62,713 | $ | 26,483 | $ | 2,667 | $ | 0 | $ | 118,440 |
58 |
59 |
60 |
●
|
Changes in national and local economies and business conditions
|
●
|
Changes in the value of collateral for collateral dependent loans
|
●
|
Changes in the level of concentrations of credit
|
●
|
Changes in the volume and severity of classified and past due loans
|
●
|
Changes in the nature and volume of the portfolio
|
●
|
Changes in collection, charge-off, and recovery procedures
|
●
|
Changes in underwriting standards and loan terms
|
●
|
Changes in the quality of the loan review system
|
●
|
Changes in the experience/ability of lending management and key lending staff
|
●
|
Regulatory and legal regulations that could affect the level of credit losses
|
●
|
Other pertinent environmental factors
|
61 |
62 |
63 |
64 |
(in thousands, except per share data)
|
2014
|
2013
|
2012
|
|||||||||
Net income available to common shareholders
|
$ | 11,595 | $ | 10,316 | $ | 9,010 | ||||||
Weighted average shares outstanding (basic)
|
5,612 | 4,982 | 4,897 | |||||||||
Effect of dilutive stock options
|
98 | 99 | 67 | |||||||||
Weighted average shares outstanding (diluted)
|
5,710 | 5,081 | 4,964 | |||||||||
Basic earnings per common share
|
$ | 2.07 | $ | 2.07 | $ | 1.84 | ||||||
Diluted earnings per common share
|
$ | 2.03 | $ | 2.03 | $ | 1.82 | ||||||
Anti-dilutive stock options excluded from the computation of earnings per share
|
56 | 24 | 117 |
65 |
Years ended December 31,
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Cash paid during the period for:
|
||||||||||||
Income taxes
|
$ | 3,511 | $ | 3,740 | $ | 2,825 | ||||||
Interest
|
$ | 7,954 | $ | 8,698 | $ | 10,578 | ||||||
Noncash investing activities:
|
||||||||||||
Transfer of loans to foreclosed real estate
|
$ | 1,597 | $ | 969 | $ | 231 | ||||||
Charitable donation of foreclosed real estate
|
$ | 43 | $ | 0 | $ | 0 | ||||||
Transfer of loans held for sale to held-to-maturity portfolio
|
$ | 0 | $ | 258 | $ | 0 | ||||||
Increase in other liabilities for preferred dividends declared
|
$ | 0 | $ | 0 | $ | 63 |
66 |
Amortized
Cost |
Gross Unrealized
|
Fair
|
||||||||||||||
(dollars in thousands)
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31, 2014
|
||||||||||||||||
Debt securities:
|
||||||||||||||||
U.S. agency
|
$ | 17,811 | $ | 193 | $ | (97 | ) | $ | 17,907 | |||||||
U.S. agency mortgage-backed, residential
|
122,443 | 2,373 | (1 | ) | 124,815 | |||||||||||
State and municipal
|
68,879 | 1,610 | (37 | ) | 70,452 | |||||||||||
Total debt securities
|
$ | 209,133 | $ | 4,176 | $ | (135 | ) | $ | 213,174 | |||||||
December 31, 2013
|
||||||||||||||||
Debt securities:
|
||||||||||||||||
U.S. agency
|
$ | 33,265 | $ | 695 | $ | (461 | ) | $ | 33,499 | |||||||
U.S. agency mortgage-backed, residential
|
105,181 | 1,563 | (825 | ) | 105,919 | |||||||||||
State and municipal
|
87,004 | 2,411 | (92 | ) | 89,323 | |||||||||||
Total debt securities
|
$ | 225,450 | $ | 4,669 | $ | (1,378 | ) | $ | 228,741 |
Available-for-sale
|
||||||||
Amortized
|
Fair
|
|||||||
(dollars in thousands)
|
Cost
|
Value
|
||||||
Due in one year or less
|
$ | 14,644 | $ | 14,812 | ||||
Due after one year through five years
|
143,343 | 146,297 | ||||||
Due after five years through ten years
|
47,328 | 48,074 | ||||||
Due after ten years
|
3,818 | 3,991 | ||||||
Total debt securities
|
$ | 209,133 | $ | 213,174 |
Years ended December 31,
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Realized gains
|
$ | 518 | $ | 127 | $ | 428 | ||||||
Realized losses
|
0 | (44 | ) | (1 | ) | |||||||
Net gains
|
$ | 518 | $ | 83 | $ | 427 |
67 |
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(dollars in thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
U.S. agency
|
$ | 5,999 | $ | (27 | ) | $ | 5,019 | $ | (70 | ) | $ | 11,018 | $ | (97 | ) | |||||||||
U.S. agency mortgage-backed, residential
|
2,054 | (1 | ) | 0 | 0 | 2,054 | (1 | ) | ||||||||||||||||
State and municipal
|
6,379 | (18 | ) | 1,686 | (19 | ) | 8,065 | (37 | ) | |||||||||||||||
Total temporarily impaired debt
securities, available-for-sale
|
$ | 14,432 | $ | (46 | ) | $ | 6,705 | $ | (89 | ) | $ | 21,137 | $ | (135 | ) | |||||||||
December 31, 2013
|
||||||||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
U.S. agency
|
$ | 15,351 | $ | (461 | ) | $ | 0 | $ | 0 | $ | 15,351 | $ | (461 | ) | ||||||||||
U.S. agency mortgage-backed, residential
|
56,787 | (825 | ) | 0 | 0 | 56,787 | (825 | ) | ||||||||||||||||
State and municipal
|
9,897 | (78 | ) | 797 | (14 | ) | 10,694 | (92 | ) | |||||||||||||||
Total temporarily impaired debt
securities, available-for-sale
|
$ | 82,035 | $ | (1,364 | ) | $ | 797 | $ | (14 | ) | $ | 82,832 | $ | (1,378 | ) |
68 |
December 31,
|
% Total
|
December 31,
|
% Total
|
|||||||||||||
(dollars in thousands)
|
2014
|
Loans
|
2013
|
Loans
|
||||||||||||
Builder & developer
|
$ | 114,695 | 12.5 | $ | 106,436 | 12.4 | ||||||||||
Commercial real estate investor
|
144,206 | 15.7 | 141,372 | 16.5 | ||||||||||||
Residential real estate investor
|
97,562 | 10.6 | 78,400 | 9.1 | ||||||||||||
Hotel/Motel
|
79,412 | 8.6 | 70,324 | 8.2 | ||||||||||||
Wholesale & retail
|
75,063 | 8.2 | 75,445 | 8.8 | ||||||||||||
Manufacturing
|
34,162 | 3.7 | 36,872 | 4.3 | ||||||||||||
Agriculture
|
42,136 | 4.6 | 38,041 | 4.4 | ||||||||||||
Other
|
186,086 | 20.2 | 167,325 | 19.4 | ||||||||||||
Total commercial related loans
|
773,322 | 84.1 | 714,215 | 83.1 | ||||||||||||
Residential mortgages
|
32,453 | 3.5 | 25,695 | 3.0 | ||||||||||||
Home equity
|
82,256 | 8.9 | 80,859 | 9.4 | ||||||||||||
Other
|
32,059 | 3.5 | 38,615 | 4.5 | ||||||||||||
Total consumer related loans
|
146,768 | 15.9 | 145,169 | 16.9 | ||||||||||||
Total loans
|
$ | 920,090 | 100.0 | $ | 859,384 | 100.0 |
69 |
70 |
Special
|
||||||||||||||||||||
(dollars in thousands)
|
Pass
|
Mention
|
Substandard
|
Nonaccrual
|
Total
|
|||||||||||||||
December 31, 2014
|
||||||||||||||||||||
Builder & developer
|
$ | 102,109 | $ | 6,613 | $ | 3,861 | $ | 2,112 | $ | 114,695 | ||||||||||
Commercial real estate investor
|
133,923 | 3,733 | 3,377 | 3,173 | 144,206 | |||||||||||||||
Residential real estate investor
|
91,765 | 4,059 | 266 | 1,472 | 97,562 | |||||||||||||||
Hotel/Motel
|
78,892 | 0 | 0 | 520 | 79,412 | |||||||||||||||
Wholesale & retail
|
66,415 | 8,526 | 0 | 122 | 75,063 | |||||||||||||||
Manufacturing
|
29,528 | 3,979 | 655 | 0 | 34,162 | |||||||||||||||
Agriculture
|
39,025 | 2,679 | 432 | 0 | 42,136 | |||||||||||||||
Other
|
183,556 | 1,083 | 840 | 607 | 186,086 | |||||||||||||||
Total commercial related loans
|
725,213 | 30,672 | 9,431 | 8,006 | 773,322 | |||||||||||||||
Residential mortgage
|
32,307 | 0 | 28 | 118 | 32,453 | |||||||||||||||
Home equity
|
81,581 | 566 | 0 | 109 | 82,256 | |||||||||||||||
Other
|
31,586 | 80 | 0 | 393 | 32,059 | |||||||||||||||
Total consumer related loans
|
145,474 | 646 | 28 | 620 | 146,768 | |||||||||||||||
Total loans
|
$ | 870,687 | $ | 31,318 | $ | 9,459 | $ | 8,626 | $ | 920,090 | ||||||||||
December 31, 2013
|
||||||||||||||||||||
Builder & developer
|
$ | 91,106 | $ | 4,879 | $ | 4,786 | $ | 5,665 | $ | 106,436 | ||||||||||
Commercial real estate investor
|
129,763 | 3,749 | 3,426 | 4,434 | 141,372 | |||||||||||||||
Residential real estate investor
|
74,626 | 1,790 | 187 | 1,797 | 78,400 | |||||||||||||||
Hotel/Motel
|
70,324 | 0 | 0 | 0 | 70,324 | |||||||||||||||
Wholesale & retail
|
73,425 | 892 | 0 | 1,128 | 75,445 | |||||||||||||||
Manufacturing
|
34,986 | 1,215 | 671 | 0 | 36,872 | |||||||||||||||
Agriculture
|
34,961 | 2,629 | 451 | 0 | 38,041 | |||||||||||||||
Other
|
164,621 | 880 | 482 | 1,342 | 167,325 | |||||||||||||||
Total commercial related loans
|
673,812 | 16,034 | 10,003 | 14,366 | 714,215 | |||||||||||||||
Residential mortgage
|
25,541 | 4 | 30 | 120 | 25,695 | |||||||||||||||
Home equity
|
80,271 | 357 | 11 | 220 | 80,859 | |||||||||||||||
Other
|
37,814 | 207 | 0 | 594 | 38,615 | |||||||||||||||
Total consumer related loans
|
143,626 | 568 | 41 | 934 | 145,169 | |||||||||||||||
Total loans
|
$ | 817,438 | $ | 16,602 | $ | 10,044 | $ | 15,300 | $ | 859,384 |
71 |
December 31, 2014
|
December 31, 2013
|
|||||||||||||||||||||||
Unpaid
|
Unpaid
|
|||||||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
|||||||||||||||||||
(dollars in thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
||||||||||||||||||
Impaired loans with no related allowance:
|
||||||||||||||||||||||||
Builder & developer
|
$ | 3,928 | $ | 3,928 | - | $ | 3,861 | $ | 3,861 | - | ||||||||||||||
Commercial real estate investor
|
5,055 | 5,055 | - | 7,860 | 7,860 | - | ||||||||||||||||||
Residential real estate investor
|
785 | 785 | - | 354 | 579 | - | ||||||||||||||||||
Hotel/Motel
|
520 | 520 | - | 0 | 0 | - | ||||||||||||||||||
Wholesale & retail
|
394 | 394 | - | 1,403 | 1,403 | - | ||||||||||||||||||
Manufacturing
|
655 | 655 | - | 671 | 671 | - | ||||||||||||||||||
Agriculture
|
0 | 0 | - | 0 | 0 | - | ||||||||||||||||||
Other commercial
|
973 | 973 | - | 1,498 | 1,498 | - | ||||||||||||||||||
Residential mortgage
|
146 | 172 | - | 150 | 176 | - | ||||||||||||||||||
Home equity
|
109 | 109 | - | 231 | 256 | - | ||||||||||||||||||
Other consumer
|
393 | 393 | - | 594 | 609 | - | ||||||||||||||||||
Total impaired loans with no related allowance
|
$ | 12,958 | $ | 12,984 | - | $ | 16,622 | $ | 16,913 | - | ||||||||||||||
Impaired loans with a related allowance:
|
||||||||||||||||||||||||
Builder & developer
|
$ | 2,045 | $ | 2,045 | $ | 953 | $ | 7,733 | $ | 7,733 | $ | 850 | ||||||||||||
Commercial real estate investor
|
1,495 | 1,495 | 600 | 0 | 0 | 0 | ||||||||||||||||||
Residential real estate investor
|
953 | 953 | 559 | 1,630 | 1,630 | 650 | ||||||||||||||||||
Hotel/Motel
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Wholesale & retail
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Manufacturing
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Agriculture
|
432 | 432 | 100 | 451 | 451 | 100 | ||||||||||||||||||
Other commercial
|
474 | 474 | 300 | 326 | 326 | 120 | ||||||||||||||||||
Residential mortgage
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Home equity
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total impaired loans with a related allowance
|
$ | 5,399 | $ | 5,399 | $ | 2,512 | $ | 10,140 | $ | 10,140 | $ | 1,720 | ||||||||||||
Total impaired loans:
|
||||||||||||||||||||||||
Builder & developer
|
$ | 5,973 | $ | 5,973 | $ | 953 | $ | 11,594 | $ | 11,594 | $ | 850 | ||||||||||||
Commercial real estate investor
|
6,550 | 6,550 | 600 | 7,860 | 7,860 | 0 | ||||||||||||||||||
Residential real estate investor
|
1,738 | 1,738 | 559 | 1,984 | 2,209 | 650 | ||||||||||||||||||
Hotel/Motel
|
520 | 520 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Wholesale & retail
|
394 | 394 | 0 | 1,403 | 1,403 | 0 | ||||||||||||||||||
Manufacturing
|
655 | 655 | 0 | 671 | 671 | 0 | ||||||||||||||||||
Agriculture
|
432 | 432 | 100 | 451 | 451 | 100 | ||||||||||||||||||
Other commercial
|
1,447 | 1,447 | 300 | 1,824 | 1,824 | 120 | ||||||||||||||||||
Residential mortgage
|
146 | 172 | 0 | 150 | 176 | 0 | ||||||||||||||||||
Home equity
|
109 | 109 | 0 | 231 | 256 | 0 | ||||||||||||||||||
Other consumer
|
393 | 393 | 0 | 594 | 609 | 0 | ||||||||||||||||||
Total impaired loans
|
$ | 18,357 | $ | 18,383 | $ | 2,512 | $ | 26,762 | $ | 27,053 | $ | 1,720 |
72 |
December 31, 2014
|
For the years ended
December 31, 2013 |
December 31, 2012
|
||||||||||||||||||||||||||||||||||
Average
|
Total
|
Cash
Basis |
Average
|
Total
|
Cash
Basis |
Average
|
Total
|
Cash
Basis |
||||||||||||||||||||||||||||
Recorded
|
Interest
|
Interest
|
Recorded
|
Interest
|
Interest
|
Recorded
|
Interest
|
Interest
|
||||||||||||||||||||||||||||
(dollars in thousands)
|
Investment
|
Income
|
Income
|
Investment
|
Income
|
Income
|
Investment
|
Income
|
Income
|
|||||||||||||||||||||||||||
Impaired loans with no related allowance:
|
||||||||||||||||||||||||||||||||||||
Builder & developer
|
$ | 4,154 | $ | 290 | $ | 20 | $ | 8,703 | $ | 215 | $ | 8 | $ | 8,849 | $ | 570 | $ | 65 | ||||||||||||||||||
Commercial real estate investor
|
6,794 | 213 | 102 | 6,334 | 301 | 162 | 4,910 | 281 | 108 | |||||||||||||||||||||||||||
Residential real estate investor
|
527 | 35 | 26 | 238 | 7 | 5 | 307 | 5 | 4 | |||||||||||||||||||||||||||
Hotel/Motel
|
463 | 19 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Wholesale & retail
|
764 | 90 | 78 | 2,229 | 65 | 66 | 2,711 | 28 | 4 | |||||||||||||||||||||||||||
Manufacturing
|
665 | 42 | 0 | 683 | 44 | 0 | 707 | 42 | 0 | |||||||||||||||||||||||||||
Agriculture
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other commercial
|
1,156 | 148 | 128 | 1,570 | 19 | 4 | 4,020 | 177 | 138 | |||||||||||||||||||||||||||
Residential mortgage
|
147 | 4 | 3 | 124 | 6 | 5 | 133 | 6 | 4 | |||||||||||||||||||||||||||
Home equity
|
208 | 4 | 3 | 327 | 8 | 1 | 274 | 8 | 1 | |||||||||||||||||||||||||||
Other consumer
|
482 | 32 | 32 | 621 | 23 | 23 | 435 | 22 | 10 | |||||||||||||||||||||||||||
Total impaired loans with no related allowance
|
$ | 15,360 | $ | 877 | $ | 392 | $ | 20,829 | $ | 688 | $ | 274 | $ | 22,346 | $ | 1,139 | $ | 334 | ||||||||||||||||||
Impaired loans with a related allowance:
|
||||||||||||||||||||||||||||||||||||
Builder & developer
|
$ | 3,958 | $ | 18 | $ | 0 | $ | 1,624 | $ | 294 | $ | 0 | $ | 260 | $ | 6 | $ | 4 | ||||||||||||||||||
Commercial real estate investor
|
299 | 87 | 0 | 0 | 0 | 0 | 45 | 0 | 0 | |||||||||||||||||||||||||||
Residential real estate investor
|
1,409 | 7 | 0 | 2,284 | 18 | 0 | 1,483 | 64 | 0 | |||||||||||||||||||||||||||
Hotel/Motel
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Wholesale & retail
|
0 | 0 | 0 | 0 | 0 | 0 | 105 | 0 | 0 | |||||||||||||||||||||||||||
Manufacturing
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Agriculture
|
442 | 31 | 0 | 462 | 33 | 0 | 481 | 34 | 0 | |||||||||||||||||||||||||||
Other commercial
|
390 | 22 | 0 | 694 | 0 | 0 | 935 | 2 | 0 | |||||||||||||||||||||||||||
Residential mortgage
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Home equity
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other consumer
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total impaired loans with a related allowance
|
$ | 6,498 | $ | 165 | $ | 0 | $ | 5,064 | $ | 345 | $ | 0 | $ | 3,309 | $ | 106 | $ | 4 | ||||||||||||||||||
Total impaired loans:
|
||||||||||||||||||||||||||||||||||||
Builder & developer
|
$ | 8,112 | $ | 308 | $ | 20 | $ | 10,327 | $ | 509 | $ | 8 | $ | 9,109 | $ | 576 | $ | 69 | ||||||||||||||||||
Commercial real estate investor
|
7,093 | 300 | 102 | 6,334 | 301 | 162 | 4,955 | 281 | 108 | |||||||||||||||||||||||||||
Residential real estate investor
|
1,936 | 42 | 26 | 2,522 | 25 | 5 | 1,790 | 69 | 4 | |||||||||||||||||||||||||||
Hotel/Motel
|
463 | 19 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Wholesale & retail
|
764 | 90 | 78 | 2,229 | 65 | 66 | 2,816 | 28 | 4 | |||||||||||||||||||||||||||
Manufacturing
|
665 | 42 | 0 | 683 | 44 | 0 | 707 | 42 | 0 | |||||||||||||||||||||||||||
Agriculture
|
442 | 31 | 0 | 462 | 33 | 0 | 481 | 34 | 0 | |||||||||||||||||||||||||||
Other commercial
|
1,546 | 170 | 128 | 2,264 | 19 | 4 | 4,955 | 179 | 138 | |||||||||||||||||||||||||||
Residential mortgage
|
147 | 4 | 3 | 124 | 6 | 5 | 133 | 6 | 4 | |||||||||||||||||||||||||||
Home equity
|
208 | 4 | 3 | 327 | 8 | 1 | 274 | 8 | 1 | |||||||||||||||||||||||||||
Other consumer
|
482 | 32 | 32 | 621 | 23 | 23 | 435 | 22 | 10 | |||||||||||||||||||||||||||
Total impaired loans
|
$ | 21,858 | $ | 1,042 | $ | 392 | $ | 25,893 | $ | 1,033 | $ | 274 | $ | 25,655 | $ | 1,245 | $ | 338 |
73 |
≥ 90 Days
|
||||||||||||||||||||||||||||
30-59 | 60-89 |
Past Due
|
Total Past
|
|||||||||||||||||||||||||
Days
|
Days
|
and
|
Due and
|
Total
|
||||||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Past Due
|
Accruing
|
Nonaccrual
|
Nonaccrual
|
Current
|
Loans
|
|||||||||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||||||
Builder & developer
|
$ | 106 | $ | 0 | $ | 0 | $ | 2,112 | $ | 2,218 | $ | 112,477 | $ | 114,695 | ||||||||||||||
Commercial real estate investor
|
0 | 0 | 0 | 3,173 | 3,173 | 141,033 | 144,206 | |||||||||||||||||||||
Residential real estate investor
|
51 | 55 | 25 | 1,472 | 1,603 | 95,959 | 97,562 | |||||||||||||||||||||
Hotel/Motel
|
0 | 0 | 0 | 520 | 520 | 78,892 | 79,412 | |||||||||||||||||||||
Wholesale & retail
|
163 | 0 | 0 | 122 | 285 | 74,778 | 75,063 | |||||||||||||||||||||
Manufacturing
|
0 | 0 | 0 | 0 | 0 | 34,162 | 34,162 | |||||||||||||||||||||
Agriculture
|
432 | 0 | 0 | 0 | 432 | 41,704 | 42,136 | |||||||||||||||||||||
Other
|
1,200 | 129 | 0 | 607 | 1,936 | 184,150 | 186,086 | |||||||||||||||||||||
Total commercial related loans
|
1,952 | 184 | 25 | 8,006 | 10,167 | 763,155 | 773,322 | |||||||||||||||||||||
Residential mortgage
|
0 | 0 | 29 | 118 | 147 | 32,306 | 32,453 | |||||||||||||||||||||
Home equity
|
2,450 | 0 | 0 | 109 | 2,559 | 79,697 | 82,256 | |||||||||||||||||||||
Other
|
94 | 80 | 0 | 393 | 567 | 31,492 | 32,059 | |||||||||||||||||||||
Total consumer related loans
|
2,544 | 80 | 29 | 620 | 3,273 | 143,495 | 146,768 | |||||||||||||||||||||
Total loans
|
$ | 4,496 | $ | 264 | $ | 54 | $ | 8,626 | $ | 13,440 | $ | 906,650 | $ | 920,090 | ||||||||||||||
December 31, 2013
|
||||||||||||||||||||||||||||
Builder & developer
|
$ | 220 | $ | 0 | $ | 0 | $ | 5,665 | $ | 5,885 | $ | 100,551 | $ | 106,436 | ||||||||||||||
Commercial real estate investor
|
0 | 0 | 0 | 4,434 | 4,434 | 136,938 | 141,372 | |||||||||||||||||||||
Residential real estate investor
|
0 | 265 | 0 | 1,797 | 2,062 | 76,338 | 78,400 | |||||||||||||||||||||
Hotel/Motel
|
0 | 0 | 0 | 0 | 0 | 70,324 | 70,324 | |||||||||||||||||||||
Wholesale & retail
|
0 | 0 | 0 | 1,128 | 1,128 | 74,317 | 75,445 | |||||||||||||||||||||
Manufacturing
|
0 | 0 | 0 | 0 | 0 | 36,872 | 36,872 | |||||||||||||||||||||
Agriculture
|
0 | 0 | 0 | 0 | 0 | 38,041 | 38,041 | |||||||||||||||||||||
Other
|
109 | 0 | 0 | 1,342 | 1,451 | 165,874 | 167,325 | |||||||||||||||||||||
Total commercial related loans
|
329 | 265 | 0 | 14,366 | 14,960 | 699,255 | 714,215 | |||||||||||||||||||||
Residential mortgage
|
0 | 0 | 0 | 120 | 120 | 25,575 | 25,695 | |||||||||||||||||||||
Home equity
|
171 | 0 | 0 | 220 | 391 | 80,468 | 80,859 | |||||||||||||||||||||
Other
|
118 | 161 | 0 | 594 | 873 | 37,742 | 38,615 | |||||||||||||||||||||
Total consumer related loans
|
289 | 161 | 0 | 934 | 1,384 | 143,785 | 145,169 | |||||||||||||||||||||
Total loans
|
$ | 618 | $ | 426 | $ | 0 | $ | 15,300 | $ | 16,344 | $ | 843,040 | $ | 859,384 |
74 |
Modifications
|
||||||||||||||||
Pre-Modification
|
Post-Modification
|
|||||||||||||||
Number
|
Outstanding
|
Outstanding
|
Recorded
|
|||||||||||||
of
|
Recorded
|
Recorded
|
Investment
|
|||||||||||||
(dollars in thousands)
|
Contracts
|
Investment
|
Investment
|
at Period End
|
||||||||||||
Years ended:
|
||||||||||||||||
December 31, 2014
|
||||||||||||||||
Commercial related loans accruing
|
1 | $ | 192 | $ | 192 | $ | 188 | |||||||||
Consumer related loans nonaccrual
|
1 | $ | 150 | $ | 120 | $ | 120 | |||||||||
December 31, 2013
|
||||||||||||||||
Commercial related loans accruing
|
1 | $ | 208 | $ | 208 | $ | 199 | |||||||||
Commercial related loans nonaccrual
|
2 | $ | 2,482 | $ | 2,482 | $ | 2,069 |
75 |
Commercial
|
Residential
|
Total
|
||||||||||||||||||||||||||||||||||
Builder &
|
real estate
|
real estate
|
Hotel/
|
Wholesale &
|
commercial
|
|||||||||||||||||||||||||||||||
(dollars in thousands)
|
developer
|
investor
|
investor
|
Motel
|
retail
|
Manufacturing
|
Agriculture
|
Other
|
related
|
|||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance, January 1, 2014
|
$ | 2,073 | $ | 1,500 | $ | 1,482 | $ | 595 | $ | 637 | $ | 217 | $ | 307 | $ | 1,393 | $ | 8,204 | ||||||||||||||||||
Charge-offs
|
0 | (200 | ) | (91 | ) | 0 | (35 | ) | 0 | 0 | 0 | (326 | ) | |||||||||||||||||||||||
Recoveries
|
3 | 0 | 215 | 0 | 30 | 0 | 0 | 0 | 248 | |||||||||||||||||||||||||||
Provisions
|
160 | 904 | (122 | ) | 76 | 59 | (16 | ) | 22 | 161 | 1,244 | |||||||||||||||||||||||||
Balance, December 31, 2014
|
$ | 2,236 | $ | 2,204 | $ | 1,484 | $ | 671 | $ | 691 | $ | 201 | $ | 329 | $ | 1,554 | $ | 9,370 | ||||||||||||||||||
Balance, January 1, 2013
|
$ | 1,571 | $ | 1,259 | $ | 1,195 | $ | 485 | $ | 1,913 | $ | 237 | $ | 202 | $ | 1,170 | $ | 8,032 | ||||||||||||||||||
Charge-offs
|
(62 | ) | 0 | (310 | ) | 0 | (210 | ) | 0 | 0 | (9 | ) | (591 | ) | ||||||||||||||||||||||
Recoveries
|
0 | 0 | 0 | 0 | 85 | 0 | 0 | 17 | 102 | |||||||||||||||||||||||||||
Provisions
|
564 | 241 | 597 | 110 | (1,151 | ) | (20 | ) | 105 | 215 | 661 | |||||||||||||||||||||||||
Balance, December 31, 2013
|
$ | 2,073 | $ | 1,500 | $ | 1,482 | $ | 595 | $ | 637 | $ | 217 | $ | 307 | $ | 1,393 | $ | 8,204 | ||||||||||||||||||
Balance, January 1, 2012
|
$ | 2,170 | $ | 2,003 | $ | 505 | $ | 394 | $ | 1,806 | $ | 151 | $ | 184 | $ | 907 | $ | 8,120 | ||||||||||||||||||
Charge-offs
|
(217 | ) | (67 | ) | (15 | ) | 0 | 0 | 0 | 0 | (310 | ) | (609 | ) | ||||||||||||||||||||||
Recoveries
|
0 | 0 | 0 | 0 | 16 | 0 | 0 | 1 | 17 | |||||||||||||||||||||||||||
Provisions
|
(382 | ) | (677 | ) | 705 | 91 | 91 | 86 | 18 | 572 | 504 | |||||||||||||||||||||||||
Balance, December 31, 2012
|
$ | 1,571 | $ | 1,259 | $ | 1,195 | $ | 485 | $ | 1,913 | $ | 237 | $ | 202 | $ | 1,170 | $ | 8,032 | ||||||||||||||||||
(dollars in thousands)
|
Residential
mortgage |
Home
equity |
Other
|
Total
consumer related |
Unallocated
|
Total
|
||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance, January 1, 2014
|
$ | 65 | $ | 237 | $ | 269 | $ | 571 | $ | 1,200 | $ | 9,975 | ||||||||||||||||||||||||
Charge-offs
|
(30 | ) | (116 | ) | (280 | ) | (426 | ) | 0 | (752 | ) | |||||||||||||||||||||||||
Recoveries
|
4 | 40 | 47 | 91 | 0 | 339 | ||||||||||||||||||||||||||||||
Provisions
|
25 | 15 | 180 | 220 | 136 | 1,600 | ||||||||||||||||||||||||||||||
Balance, December 31, 2014
|
$ | 64 | $ | 176 | $ | 216 | $ | 456 | $ | 1,336 | $ | 11,162 | ||||||||||||||||||||||||
Balance, January 1, 2013
|
$ | 124 | $ | 237 | $ | 238 | $ | 599 | $ | 671 | $ | 9,302 | ||||||||||||||||||||||||
Charge-offs
|
(27 | ) | (116 | ) | (264 | ) | (407 | ) | 0 | (998 | ) | |||||||||||||||||||||||||
Recoveries
|
2 | 9 | 88 | 99 | 0 | 201 | ||||||||||||||||||||||||||||||
Provisions
|
(34 | ) | 107 | 207 | 280 | 529 | 1,470 | |||||||||||||||||||||||||||||
Balance, December 31, 2013
|
$ | 65 | $ | 237 | $ | 269 | $ | 571 | $ | 1,200 | $ | 9,975 | ||||||||||||||||||||||||
Balance, January 1, 2012
|
$ | 88 | $ | 86 | $ | 171 | $ | 345 | $ | 237 | $ | 8,702 | ||||||||||||||||||||||||
Charge-offs
|
(115 | ) | (189 | ) | (312 | ) | (616 | ) | 0 | (1,225 | ) | |||||||||||||||||||||||||
Recoveries
|
41 | 2 | 15 | 58 | 0 | 75 | ||||||||||||||||||||||||||||||
Provisions
|
110 | 338 | 364 | 812 | 434 | 1,750 | ||||||||||||||||||||||||||||||
Balance, December 31, 2012
|
$ | 124 | $ | 237 | $ | 238 | $ | 599 | $ | 671 | $ | 9,302 |
76 |
Commercial
|
Residential
|
Total
|
||||||||||||||||||||||||||||||||||
Builder &
|
real estate
|
real estate
|
Hotel/
|
Wholesale &
|
commercial
|
|||||||||||||||||||||||||||||||
(dollars in thousands)
|
developer
|
investor
|
investor
|
Motel
|
retail
|
Manufacturing
|
Agriculture
|
Other
|
related
|
|||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 953 | $ | 600 | $ | 559 | $ | 0 | $ | 0 | $ | 0 | $ | 100 | $ | 300 | $ | 2,512 | ||||||||||||||||||
Collectively evaluated for impairment
|
1,283 | 1,604 | 925 | 671 | 691 | 201 | 229 | 1,254 | 6,858 | |||||||||||||||||||||||||||
Balance, December 31, 2014
|
$ | 2,236 | $ | 2,204 | $ | 1,484 | $ | 671 | $ | 691 | $ | 201 | $ | 329 | $ | 1,554 | $ | 9,370 | ||||||||||||||||||
Individually evaluated for impairment
|
$ | 850 | $ | 0 | $ | 650 | $ | 0 | $ | 0 | $ | 0 | $ | 100 | $ | 120 | $ | 1,720 | ||||||||||||||||||
Collectively evaluated for impairment
|
1,223 | 1,500 | 832 | 595 | 637 | 217 | 207 | 1,273 | 6,484 | |||||||||||||||||||||||||||
Balance, December 31, 2013
|
$ | 2,073 | $ | 1,500 | $ | 1,482 | $ | 595 | $ | 637 | $ | 217 | $ | 307 | $ | 1,393 | $ | 8,204 | ||||||||||||||||||
Individually evaluated for impairment
|
$ | 147 | $ | 0 | $ | 700 | $ | 0 | $ | 0 | $ | 0 | $ | 100 | $ | 215 | $ | 1,162 | ||||||||||||||||||
Collectively evaluated for impairment
|
1,424 | 1,259 | 495 | 485 | 1,913 | 237 | 102 | 955 | 6,870 | |||||||||||||||||||||||||||
Balance, December 31, 2012
|
$ | 1,571 | $ | 1,259 | $ | 1,195 | $ | 485 | $ | 1,913 | $ | 237 | $ | 202 | $ | 1,170 | $ | 8,032 | ||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 5,973 | $ | 6,550 | $ | 1,738 | $ | 520 | $ | 394 | $ | 655 | $ | 432 | $ | 1,447 | $ | 17,709 | ||||||||||||||||||
Collectively evaluated for impairment
|
108,722 | 137,656 | 95,824 | 78,892 | 74,669 | 33,507 | 41,704 | 184,639 | 755,613 | |||||||||||||||||||||||||||
Balance, December 31, 2014
|
$ | 114,695 | $ | 144,206 | $ | 97,562 | $ | 79,412 | $ | 75,063 | $ | 34,162 | $ | 42,136 | $ | 186,086 | $ | 773,322 | ||||||||||||||||||
Individually evaluated for impairment
|
$ | 11,594 | $ | 7,860 | $ | 1,984 | $ | 0 | $ | 1,403 | $ | 671 | $ | 451 | $ | 1,824 | $ | 25,787 | ||||||||||||||||||
Collectively evaluated for impairment
|
94,842 | 133,512 | 76,416 | 70,324 | 74,042 | 36,201 | 37,590 | 165,501 | 688,428 | |||||||||||||||||||||||||||
Balance, December 31, 2013
|
$ | 106,436 | $ | 141,372 | $ | 78,400 | $ | 70,324 | $ | 75,445 | $ | 36,872 | $ | 38,041 | $ | 167,325 | $ | 714,215 | ||||||||||||||||||
Individually evaluated for impairment
|
$ | 12,467 | $ | 5,736 | $ | 2,731 | $ | 0 | $ | 3,048 | $ | 699 | $ | 471 | $ | 2,455 | $ | 27,607 | ||||||||||||||||||
Collectively evaluated for impairment
|
84,469 | 116,978 | 63,688 | 64,948 | 67,395 | 39,559 | 20,457 | 122,379 | 579,873 | |||||||||||||||||||||||||||
Balance, December 31, 2012
|
$ | 96,936 | $ | 122,714 | $ | 66,419 | $ | 64,948 | $ | 70,443 | $ | 40,258 | $ | 20,928 | $ | 124,834 | $ | 607,480 |
Total
|
||||||||||||||||||||||||
Residential
|
Home
|
consumer
|
||||||||||||||||||||||
(dollars in thousands)
|
mortgage
|
equity
|
Other
|
related
|
Unallocated
|
Total
|
||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2,512 | ||||||||||||
Collectively evaluated for impairment
|
64 | 176 | 216 | 456 | 1,336 | 8,650 | ||||||||||||||||||
Balance, December 31, 2014
|
$ | 64 | $ | 176 | $ | 216 | $ | 456 | $ | 1,336 | $ | 11,162 | ||||||||||||
Individually evaluated for impairment
|
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,720 | ||||||||||||
Collectively evaluated for impairment
|
65 | 237 | 269 | 571 | 1,200 | 8,255 | ||||||||||||||||||
Balance, December 31, 2013
|
$ | 65 | $ | 237 | $ | 269 | $ | 571 | $ | 1,200 | $ | 9,975 | ||||||||||||
Individually evaluated for impairment
|
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,162 | ||||||||||||
Collectively evaluated for impairment
|
124 | 237 | 238 | 599 | 671 | 8,140 | ||||||||||||||||||
Balance, December 31, 2012
|
$ | 124 | $ | 237 | $ | 238 | $ | 599 | $ | 671 | $ | 9,302 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 146 | $ | 109 | $ | 393 | $ | 648 | $ | $ | 18,357 | |||||||||||||
Collectively evaluated for impairment
|
32,307 | 82,147 | 31,666 | 146,120 | 901,733 | |||||||||||||||||||
Balance, December 31, 2014
|
$ | 32,453 | $ | 82,256 | $ | 32,059 | $ | 146,768 | $ | $ | 920,090 | |||||||||||||
Individually evaluated for impairment
|
$ | 150 | $ | 231 | $ | 594 | $ | 975 | $ | $ | 26,762 | |||||||||||||
Collectively evaluated for impairment
|
25,545 | 80,628 | 38,021 | 144,194 | 832,622 | |||||||||||||||||||
Balance, December 31, 2013
|
$ | 25,695 | $ | 80,859 | $ | 38,615 | $ | 145,169 | $ | $ | 859,384 | |||||||||||||
Individually evaluated for impairment
|
$ | 85 | $ | 340 | $ | 642 | $ | 1,067 | $ | $ | 28,674 | |||||||||||||
Collectively evaluated for impairment
|
23,426 | 65,518 | 39,643 | 128,587 | 708,460 | |||||||||||||||||||
Balance, December 31, 2012
|
$ | 23,511 | $ | 65,858 | $ | 40,285 | $ | 129,654 | $ | $ | 737,134 |
77 |
(dollars in thousands)
|
2014
|
2013
|
||||||
Land
|
$ | 3,477 | $ | 3,445 | ||||
Buildings and improvements
|
18,544 | 14,448 | ||||||
Capitalized leased premises
|
672 | 672 | ||||||
Equipment
|
15,539 | 14,151 | ||||||
38,232 | 32,716 | |||||||
Less-accumulated depreciation/amortization
|
(19,761 | ) | (18,117 | ) | ||||
Premises and equipment, net
|
$ | 18,471 | $ | 14,599 |
Capital
|
Operating
|
|||||||
(dollars in thousands)
|
Lease
|
Leases
|
||||||
2015
|
$ | 102 | $ | 716 | ||||
2016
|
0 | 670 | ||||||
2017
|
0 | 635 | ||||||
2018
|
0 | 604 | ||||||
2019
|
0 | 420 | ||||||
Thereafter
|
0 | 614 | ||||||
Total future minimum lease payments
|
102 | $ | 3,659 | |||||
Less interest
|
(6 | ) | ||||||
Present value of minimum lease payments
|
$ | 96 |
December 31,
|
||||||||
(dollars in thousands)
|
2014
|
2013
|
||||||
Noninterest bearing demand
|
$ | 121,673 | $ | 107,921 | ||||
NOW
|
90,158 | 83,949 | ||||||
Money market
|
313,932 | 292,870 | ||||||
Savings
|
43,098 | 39,522 | ||||||
Time deposits less than $100,000
|
222,237 | 230,641 | ||||||
Time deposits $100,000 or more
|
163,875 | 170,400 | ||||||
Total deposits
|
$ | 954,973 | $ | 925,303 |
78 |
(dollars in thousands)
|
2014
|
|||
2015
|
$ | 182,901 | ||
2016
|
69,830 | |||
2017
|
84,823 | |||
2018
|
23,538 | |||
2019
|
24,249 | |||
Thereafter
|
771 | |||
Total time deposits
|
$ | 386,112 |
2014
|
2013
|
2012
|
||||||||||||||||||||||
(dollars in thousands)
|
Repurchase
agreements |
Other
Short-term
borrowings |
Repurchase
agreements |
Other
Short-term
|
Repurchase
agreements |
Other
Short-term borrowings |
||||||||||||||||||
Amount outstanding at end of year
|
$ | 42,184 | $ | 0 | $ | 24,597 | $ | 15,766 | $ | 19,356 | $ | 0 | ||||||||||||
Weighted average interest rate at end of year
|
0.46 | % | 0 | % | 0.54 | % | 0.25 | % | 0.56 | % | 0 | % | ||||||||||||
Maximum amount outstanding at any month-end
|
$ | 51,218 | $ | 11,825 | $ | 25,702 | $ | 15,766 | $ | 26,166 | $ | 0 | ||||||||||||
Daily average amount outstanding
|
$ | 32,688 | $ | 1,056 | $ | 22,174 | $ | 542 | $ | 20,843 | $ | 0 | ||||||||||||
Approximate weighted average interest rate for the year
|
0.51 | % | 0.21 | % | 0.56 | % | 0.20 | % | 0.58 | % | 0 | % |
79 |
|
||||||||
December 31,
|
||||||||
(dollars in thousands)
|
2014
|
2013
|
||||||
PeoplesBank’s obligations:
|
||||||||
FHLBP
|
||||||||
Due July 2015, 1.90%
|
$ | 5,000 | $ | 5,000 | ||||
Due July 2016, 2.35%
|
5,000 | 5,000 | ||||||
Due September 2016, 1.18%
|
10,000 | 10,000 | ||||||
Due October 2016, 1.06%
|
10,000 | 10,000 | ||||||
Due October 2016, 1.10%
|
10,000 | 10,000 | ||||||
Due April 2017, 0.97%
|
10,000 | 0 | ||||||
Due November 2017, 1.19%
|
5,000 | 0 | ||||||
Due March 2018, 1.17%
|
10,000 | 10,000 | ||||||
Due June 2018, 1.87%
|
5,000 | 5,000 | ||||||
Due November 2018, 1.62%
|
5,000 | 0 | ||||||
Due June 2019, 2.10%
|
5,000 | 5,000 | ||||||
Total FHLBP
|
80,000 | 60,000 | ||||||
Capital lease obligation
|
96 | 183 | ||||||
Codorus Valley Bancorp, Inc. obligations:
|
||||||||
Junior subordinated debt
|
||||||||
Due 2034, 2.26%, floating rate based on 3 month
|
||||||||
LIBOR plus 2.02%, callable quarterly
|
3,093 | 3,093 | ||||||
Due 2036, 1.77% floating rate based on 3 month
|
||||||||
LIBOR plus 1.54%, callable quarterly
|
7,217 | 7,217 | ||||||
Total long-term debt
|
$ | 90,406 | $ | 70,493 |
80 |
81 |
82 |
Number of
|
Number of
|
Number of shares
|
||||||||
shares
|
outstanding
|
available for future
|
||||||||
Plan
|
Types of grants
|
reserved
(
2)
|
options (2)
|
issuance (2)
|
||||||
Stock options
|
||||||||||
2000 Stock Incentive Plan
|
Stock appreciation rights
|
|||||||||
(2000 Plan) (1)
|
Restricted stock
|
55,519 | 22,743 | 0 | ||||||
Stock options
|
||||||||||
Stock appreciation rights
|
||||||||||
2007 Long Term Incentive
|
Restricted stock
|
|||||||||
Plan (LTIP)
|
Stock awards
|
345,980 | 167,842 (3) | 178,138 | ||||||
2007 Employee Stock
|
||||||||||
Purchase Plan (ESPP)
|
Stock option
|
173,413 | 0 | 173,413 | ||||||
Employee Stock
|
||||||||||
Bonus Plan (ESBP)
|
Stock awards
|
16,545 | 0 | 16,545 |
(1) |
All options available for grant under the 2000 Plan have been granted.
|
(2) |
Shares/options are subject to adjustment in the event of specified changes in the Corporation’s
capital structure.
|
(3) |
Amount includes 34,491 of unvested options.
|
83 |
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Compensation expense
|
$ | 256 | $ | 292 | $ | 270 | ||||||
Tax benefit
|
(61 | ) | (74 | ) | (67 | ) | ||||||
Net income effect
|
$ | 195 | $ | 218 | $ | 203 |
2014
|
2013
|
2012
|
||||||||||
Nonqualified stock options
|
11,846 | 9,713 | 11,899 | |||||||||
Incentive stock options
|
22,645 | 13,495 | 15,850 | |||||||||
Restricted stock
|
9,840 | 8,480 | 11,290 |
2014
|
2013
|
2012
|
||||||||||
Fair value
|
$
|
5.42
|
$
|
6.55
|
$
|
4.74
|
||||||
Expected life (in years)
|
5.5
|
5.5
|
7.43
|
|||||||||
Risk-free interest rate
|
1.56
|
%
|
1.44
|
%
|
1.10
|
%
|
||||||
Expected volatility
|
36.01
|
%
|
46.43
|
%
|
43.84
|
%
|
||||||
Expected dividend yield
|
2.33
|
%
|
2.67
|
%
|
3.19
|
%
|
84 |
Weighted Average
|
Weighted Average
|
Aggregate
|
|||||||||||
Exercise Price
|
Remaining
|
Intrinsic Value
|
|||||||||||
Options
|
Per Share
|
Contractual Term
|
($000) | ||||||||||
Outstanding at January 1, 2014
|
234,483 | $ | 10.12 |
6.3 years
|
$ | 1,989 | |||||||
Granted
|
34,491 | 19.70 | |||||||||||
Exercised
|
(75,658 | ) | 9.74 | ||||||||||
Cancelled
|
(2,731 | ) | 18.33 | ||||||||||
Outstanding at December 31, 2014
|
190,585 | $ | 11.88 |
6.6 years
|
$ | 1,486 | |||||||
Exercisable at December 31, 2014
|
156,094 | $ | 10.16 |
5.9 years
|
$ | 1,486 |
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Total intrinsic value of options exercised
|
$ | 777 | $ | 467 | $ | 140 | ||||||
Cash received from options exercised
|
$ | 737 | $ | 794 | $ | 252 | ||||||
Tax deduction realized from options exercised
|
$ | 264 | $ | 141 | $ | 48 |
Stock Options
|
Restricted Stock
|
|||||||||||||||
Weighted Average
|
Weighted Average
|
|||||||||||||||
Exercise Price
|
Grant Date
|
|||||||||||||||
Options
|
Per Share
|
Shares
|
Fair Value
|
|||||||||||||
Non-vested at January 1, 2014
|
24,372 | $ | 18.33 | 27,431 | $ | 13.06 | ||||||||||
Vested
|
(21,641 | ) | 18.33 | (14,193 | ) | 9.85 | ||||||||||
Cancelled
|
(2,731 | ) | 18.33 | (1,488 | ) | 16.66 | ||||||||||
Granted
|
34,491 | 19.70 | 9,840 | 19.70 | ||||||||||||
Non-vested at December 31, 2014
|
34,491 | $ | 19.70 | 21,590 | $ | 17.95 | ||||||||||
2014
|
2013
|
2012
|
||||||||||
ESPP shares purchased
|
7,710 | 8,420 | 10,784 | |||||||||
Average purchase price per share (85% of market value)
|
$ | 16.776 | $ | 13.386 | $ | 8.969 | ||||||
Compensation expense recognized (in thousands)
|
$ | 32 | $ | 26 | $ | 24 |
85 |
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Current tax provision
|
||||||||||||
Federal
|
$ | 4,204 | $ | 4,042 | $ | 2,486 | ||||||
State
|
387 | 312 | 232 | |||||||||
Total current tax provision
|
4,591 | 4,354 | 2,718 | |||||||||
Deferred tax expense (benefit)
|
||||||||||||
Federal
|
141 | (383 | ) | 419 | ||||||||
State
|
(64 | ) | (54 | ) | (34 | ) | ||||||
Total deferred tax expense (benefit)
|
77 | (437 | ) | 385 | ||||||||
Total tax provision
|
$ | 4,668 | $ | 3,917 | $ | 3,103 |
2014
|
2013
|
2012
|
||||||||||
Statutory tax rate
|
35.0 | % | 35.0 | % | 34.0 | % | ||||||
Increase (decrease) resulting from:
|
||||||||||||
Low-income housing credits
|
(0.5 | ) | (0.9 | ) | (1.8 | ) | ||||||
Tax-exempt interest income
|
(5.1 | ) | (6.3 | ) | (7.5 | ) | ||||||
Bank owned life insurance income
|
(1.5 | ) | (1.7 | ) | (1.7 | ) | ||||||
State income taxes, net of federal tax benefit
|
1.3 | 1.2 | 1.1 | |||||||||
Other, net
|
(0.8 | ) | (0.3 | ) | 0.7 | |||||||
Effective income tax rate
|
28.4 | % | 27.0 | % | 24.8 | % |
(dollars in thousands)
|
2014
|
2013
|
||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$ | 4,145 | $ | 3,579 | ||||
Deferred compensation
|
1,578 | 1,468 | ||||||
Low-income housing partnerships
|
542 | 567 | ||||||
Foreclosed real estate
|
626 | 1,419 | ||||||
Other
|
438 | 313 | ||||||
Total deferred tax assets
|
$ | 7,329 | $ | 7,346 | ||||
Deferred tax liabilities
|
||||||||
Deferred loan fees
|
$ | 523 | $ | 424 | ||||
Depreciation
|
384 | 422 | ||||||
Net unrealized gains on available-for-sale securities
|
1,374 | 1,119 | ||||||
Other
|
299 | 300 | ||||||
Total deferred tax liabilities
|
$ | 2,580 | $ | 2,265 | ||||
Net deferred tax assets
|
$ | 4,749 | $ | 5,081 |
86 |
(dollars in thousands)
|
2014
|
2013
|
||||||
Commitments to grant loans
|
||||||||
Fixed rate
|
$ | 40,215 | $ | 46,164 | ||||
Variable rate
|
11,652 | 7,779 | ||||||
Unfunded commitments of existing loans
|
||||||||
Fixed rate
|
$ | 51,487 | $ | 52,956 | ||||
Variable rate
|
148,904 | 142,578 | ||||||
Standby letters of credit
|
$ | 19,651 | $ | 27,673 |
87 |
Fair Value Measurements
|
||||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
Quoted Prices in
|
Significant Other
|
Significant Other
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
(dollars in thousands)
|
Total
|
Identical Assets
|
Inputs
|
Inputs
|
||||||||||||
December 31, 2014
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. agency
|
$ | 17,907 | $ | 0 | $ | 17,907 | $ | 0 | ||||||||
U.S. agency mortgage-backed, residential
|
124,815 | 0 | 124,815 | 0 | ||||||||||||
State and municipal
|
70,452 | 0 | 70,452 | 0 | ||||||||||||
December 31, 2013
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. agency
|
$ | 33,499 | $ | 0 | $ | 33,499 | $ | 0 | ||||||||
U.S. agency mortgage-backed, residential
|
105,919 | 0 | 105,919 | 0 | ||||||||||||
State and municipal
|
89,323 | 0 | 89,323 | 0 |
88 |
Fair Value Measurements
|
||||||||||||||||
(Level 1)
|
(Level 3)
|
|||||||||||||||
Quoted Prices in
|
(Level 2)
|
Significant Other
|
||||||||||||||
Active Markets for
|
Significant Other
|
Unobservable
|
||||||||||||||
(dollars in thousands)
|
Total
|
Identical Assets
|
Observable Inputs
|
Inputs
|
||||||||||||
December 31, 2014
|
||||||||||||||||
Impaired loans
|
$ | 3,058 | $ | 0 | $ | 0 | $ | 3,058 | ||||||||
Foreclosed real estate
|
1,198 | 0 | 0 | 1,198 | ||||||||||||
December 31, 2013
|
||||||||||||||||
Impaired loans
|
$ | 8,669 | $ | 0 | $ | 0 | $ | 8,669 | ||||||||
Foreclosed real estate
|
3,098 | 0 | 0 | 3,098 |
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||||||
Fair Value
|
Valuation
|
Unobservable
|
Weighted
|
|||||||||||
(dollars in thousands)
|
Estimate
|
Techniques
|
Input
|
Range
|
Average
|
|||||||||
December 31, 2014
|
||||||||||||||
Impaired loans
|
$ | 3,058 |
Appraisal
(1)
|
Appraisal adjustments
(2)
|
13% - 25 | % | 16 | % | ||||||
Foreclosed real estate
|
1,198 |
Appraisal
(1)
|
Appraisal adjustments
(2)
|
15% - 68 | % | 64 | % | |||||||
December 31, 2013
|
||||||||||||||
Impaired loans
|
$ | 8,669 |
Appraisal
(1)
|
Appraisal adjustments
(2)
|
13% - 27 | % | 19 | % | ||||||
Foreclosed real estate
|
3,098 |
Appraisal
(1)
|
Appraisal adjustments
(2)
|
8% - 67 | % | 45 | % |
(1)
|
Fair value is generally determined through independent appraisals, which generally include various level 3 inputs that are not identifiable.
|
(2)
|
Appraisals may be adjusted downward by the Corporation’s management for qualitative factors such as economic conditions, and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
|
89 |
90 |
Fair Value Estimates
|
||||||||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||||
Quoted Prices
|
Significant
|
Significant
|
||||||||||||||||||
in Active
|
Other
|
Other
|
||||||||||||||||||
Carrying
|
Estimated
|
Markets for
|
Observable
|
Unobservable
|
||||||||||||||||
(dollars in thousands)
|
Amount
|
Fair Value
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||||
December 31, 2014
|
||||||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 31,094 | $ | 31,094 | $ | 31,094 | $ | 0 | $ | 0 | ||||||||||
Securities available-for-sale
|
213,174 | 213,174 | 0 | 213,174 | 0 | |||||||||||||||
Restricted investment in bank stocks
|
3,799 | 3,799 | 0 | 3,799 | 0 | |||||||||||||||
Loans held for sale
|
464 | 475 | 0 | 475 | 0 | |||||||||||||||
Loans, net
|
908,928 | 924,930 | 0 | 0 | 924,930 | |||||||||||||||
Interest receivable
|
3,702 | 3,702 | 0 | 3,702 | 0 | |||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$ | 954,973 | $ | 955,581 | $ | 0 | $ | 955,581 | $ | 0 | ||||||||||
Short-term borrowings
|
42,184 | 42,184 | 0 | 42,184 | 0 | |||||||||||||||
Long-term debt
|
90,406 | 88,120 | 0 | 80,367 | 7,753 | |||||||||||||||
Interest payable
|
477 | 477 | 0 | 477 | 0 | |||||||||||||||
Off-balance sheet instruments
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
December 31, 2013
|
||||||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 15,062 | $ | 15,062 | $ | 15,062 | $ | 0 | $ | 0 | ||||||||||
Securities available-for-sale
|
228,741 | 228,741 | 0 | 228,741 | 0 | |||||||||||||||
Restricted investment in bank stocks
|
4,742 | 4,742 | 0 | 4,742 | 0 | |||||||||||||||
Loans held for sale
|
514 | 524 | 0 | 524 | 0 | |||||||||||||||
Loans, net
|
849,409 | 868,413 | 0 | 0 | 868,413 | |||||||||||||||
Interest receivable
|
3,583 | 3,583 | 0 | 3,583 | 0 | |||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$ | 925,303 | $ | 927,396 | $ | 0 | $ | 927,396 | $ | 0 | ||||||||||
Short-term borrowings
|
40,363 | 40,363 | 0 | 40,363 | 0 | |||||||||||||||
Long-term debt
|
70,493 | 68,604 | 0 | 60,417 | 8,187 | |||||||||||||||
Interest payable
|
391 | 391 | 0 | 391 | 0 | |||||||||||||||
Off-balance sheet instruments
|
0 | 0 | 0 | 0 | 0 |
91 |
Gross
|
Net Amounts
|
||||||||||||||||||||||||
Gross
|
Amounts
|
of Liabilities
|
Gross amounts Not Offset in
|
||||||||||||||||||||||
Amounts of
|
Offset in the
|
Presented in
|
the Statements of Condition
|
||||||||||||||||||||||
Recognized
|
Statements of
|
the Statements
|
Financial
|
Cash Collateral
|
Net
|
||||||||||||||||||||
(dollars in thousands)
|
Liabilities
|
Condition
|
of Condition
|
Instruments
|
Pledged
|
Amount
|
|||||||||||||||||||
December 31, 2014
|
|||||||||||||||||||||||||
Repurchase Agreements
|
(1) | $ | 42,184 | $ | 0 | $ | 42,184 | $ | (42,184 | ) | $ | 0 | $ | 0 | |||||||||||
December 31, 2013
|
|||||||||||||||||||||||||
Repurchase Agreements
|
(1) | $ | 24,597 | $ | 0 | $ | 24,597 | $ | (24,597 | ) | $ | 0 | $ | 0 |
|
(1)
|
As of December 31, 2014 and 2013, the fair value of securities pledged in connection with repurchase agreements was $60,872,000 and $29,299,000, respectively.
|
92 |
Condensed Balance Sheets
|
||||||||
December 31,
|
||||||||
(dollars in thousands)
|
2014
|
2013
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 678 | $ | 239 | ||||
Investment in bank subsidiary
|
124,301 | 113,885 | ||||||
Investment in other subsidiaries
|
317 | 790 | ||||||
Premises and equipment, net
|
3,724 | 3,570 | ||||||
Other assets
|
711 | 677 | ||||||
Total assets
|
$ | 129,731 | $ | 119,161 | ||||
Liabilities
|
||||||||
Long-term debt
|
$ | 10,310 | $ | 10,310 | ||||
Long-term debt with bank subsidiary
|
900 | 1,051 | ||||||
Other liabilities
|
81 | 151 | ||||||
Total liabilities
|
11,291 | 11,512 | ||||||
Shareholders’ equity
|
118,440 | 107,649 | ||||||
Total liabilities and shareholders’ equity
|
$ | 129,731 | $ | 119,161 |
Condensed Statements of Income and Comprehensive Income
|
||||||||||||
Years ended December 31,
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Income
|
||||||||||||
Interest from investment securities
|
$ | 6 | $ | 6 | $ | 7 | ||||||
Dividends from bank subsidiary
|
2,336 | 1,520 | 2,022 | |||||||||
Total income
|
2,342 | 1,526 | 2,029 | |||||||||
Expense
|
||||||||||||
Interest expense on long-term debt
|
272 | 290 | 320 | |||||||||
Occupancy of premises, net
|
154 | 213 | 133 | |||||||||
Other
|
316 | 324 | 293 | |||||||||
Total expense
|
742 | 827 | 746 | |||||||||
Income before applicable income tax benefit and
undistributed earnings (losses) of subsidiaries
|
1,600 | 699 | 1,283 | |||||||||
Applicable income tax benefit
|
249 | 278 | 249 | |||||||||
Income before undistributed earnings (losses) of subsidiaries
|
1,849 | 977 | 1,532 | |||||||||
Equity in undistributed earnings of bank subsidiary
|
9,920 | 9,593 | 7,874 | |||||||||
Equity in undistributed losses of other subsidiaries
|
0 | (4 | ) | (12 | ) | |||||||
Net income
|
$ | 11,769 | $ | 10,566 | $ | 9,394 | ||||||
Preferred stock dividends
|
174 | 250 | 384 | |||||||||
Net income available to common shareholders
|
$ | 11,595 | $ | 10,316 | $ | 9,010 | ||||||
Comprehensive income
|
$ | 12,264 | $ | 7,005 | $ | 9,203 |
93 |
Condensed Statements of Cash Flows
|
||||||||||||
Years ended December 31,
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$ | 11,769 | $ | 10,566 | $ | 9,394 | ||||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||||||
Depreciation
|
196 | 182 | 160 | |||||||||
Equity in undistributed earnings of subsidiaries, net
|
(9,920 | ) | (9,589 | ) | (7,862 | ) | ||||||
Loss on disposal of premises and equipment
|
0 | 1 | 0 | |||||||||
Other, net
|
216 | 147 | 208 | |||||||||
Net cash provided by operating activities
|
2,261 | 1,307 | 1,900 | |||||||||
Cash flows from investing activities
|
||||||||||||
Return of investment in other subsidiary
|
476 | 0 | 360 | |||||||||
Investment in other subsidiary
|
(3 | ) | 0 | 0 | ||||||||
Purchases of premises and equipment
|
(350 | ) | (237 | ) | (231 | ) | ||||||
Net cash provided by (used in) investing activities
|
123 | (237 | ) | 129 | ||||||||
Cash flows from financing activities
|
||||||||||||
Repayments of long-term debt
|
(151 | ) | (138 | ) | (128 | ) | ||||||
Tax benefit on vested restricted stock
|
52 | 89 | 44 | |||||||||
Cash dividends paid to preferred shareholders
|
(207 | ) | (250 | ) | (634 | ) | ||||||
Cash dividends paid to common shareholders
|
(2,611 | ) | (2,074 | ) | (1,690 | ) | ||||||
Redemption of preferred stock
|
(13,000 | ) | 0 | 0 | ||||||||
Net issuance of common stock
|
13,982 | 1,239 | 627 | |||||||||
Cash paid in lieu of fractional shares
|
(10 | ) | (9 | ) | (6 | ) | ||||||
Net cash used in financing activities
|
(1,945 | ) | (1,143 | ) | (1,787 | ) | ||||||
Net increase (decrease) in cash and cash equivalents
|
439 | (73 | ) | 242 | ||||||||
Cash and cash equivalents at beginning of year
|
239 | 312 | 70 | |||||||||
Cash and cash equivalents at end of year
|
$ | 678 | $ | 239 | $ | 312 |
94 |
2014
|
2013
|
|||||||||||||||||||||||||||||||
(dollars in thousands,
|
Quarter
|
Quarter
|
||||||||||||||||||||||||||||||
except per share data)
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
First
|
||||||||||||||||||||||||
Interest income
|
$ | 12,953 | $ | 12,670 | $ | 12,364 | $ | 12,413 | $ | 12,319 | $ | 11,819 | $ | 11,473 | $ | 11,361 | ||||||||||||||||
Interest expense
|
1,949 | 2,024 | 2,075 | 1,992 | 2,114 | 2,124 | 2,172 | 2,209 | ||||||||||||||||||||||||
Net interest income
|
11,004 | 10,646 | 10,289 | 10,421 | 10,205 | 9,695 | 9,301 | 9,152 | ||||||||||||||||||||||||
Provision for loan losses
|
500 | 250 | 300 | 550 | 500 | 150 | 560 | 260 | ||||||||||||||||||||||||
Noninterest income
|
1,825 | 1,892 | 1,816 | 1,650 | 1,671 | 1,621 | 1,672 | 1,688 | ||||||||||||||||||||||||
Net gain on sales of loans held for sale
|
146 | 124 | 102 | 80 | 145 | 233 | 322 | 319 | ||||||||||||||||||||||||
Noninterest expense
|
8,840 | 8,002 | 7,986 | 7,648 | 8,012 | 7,732 | 7,157 | 7,253 | ||||||||||||||||||||||||
Income before taxes and securities gain
|
3,635 | 4,410 | 3,921 | 3,953 | 3,509 | 3,667 | 3,578 | 3,646 | ||||||||||||||||||||||||
Net gain on sales of securities
|
372 | 146 | 0 | 0 | 39 | 0 | 44 | 0 | ||||||||||||||||||||||||
Income before income taxes
|
4,007 | 4,556 | 3,921 | 3,953 | 3,548 | 3,667 | 3,622 | 3,646 | ||||||||||||||||||||||||
Provision for income taxes
|
1,227 | 1,377 | 1,114 | 950 | 966 | 990 | 977 | 984 | ||||||||||||||||||||||||
Net income
|
2,780 | 3,179 | 2,807 | 3,003 | 2,582 | 2,677 | 2,645 | 2,662 | ||||||||||||||||||||||||
Preferred stock dividends
|
30 | 30 | 52 | 62 | 63 | 62 | 62 | 63 | ||||||||||||||||||||||||
Net income available to common shareholders
|
$ | 2,750 | $ | 3,149 | $ | 2,755 | $ | 2,941 | $ | 2,519 | $ | 2,615 | $ | 2,583 | $ | 2,599 | ||||||||||||||||
Net income per common share, basic (1)
|
$ | 0.47 | $ | 0.54 | $ | 0.48 | $ | 0.58 | $ | 0.50 | $ | 0.52 | $ | 0.52 | $ | 0.53 | ||||||||||||||||
Net income per common share, diluted (1)
|
$ | 0.46 | $ | 0.54 | $ | 0.47 | $ | 0.56 | $ | 0.49 | $ | 0.51 | $ | 0.51 | $ | 0.52 |
(1) adjusted for common stock dividends distributed.
|
95 |
/s/ Larry J. Miller
|
/s/ Michael D. Peduzzi
|
|||
Larry J. Miller
|
Michael D. Peduzzi, CPA
|
|||
(Principal Executive Officer)
|
(Principal Financial and Accounting
|
|||
Vice-Chairman, President | Officer) Treasurer, and | |||
and Chief Executive Officer | Assistant Secretary | |||
March 10, 2015 | March 10, 2015 |
96 |
97 |
98 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Shareholders
of Codorus Valley Bancorp, Inc.
York, Pennsylvania
We have audited the accompanying Codorus Valley Bancorp, Inc. and subsidiaries' (“the Corporation”) consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for the year ended December 31, 2012. These consolidated financial statements are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated results of the Corporation's operations and its cash flows for the year ended December 31, 2012, in conformity with accounting principles generally accepted in the United States of America.
/s/ Baker Tilly Virchow Krause, LLP
Allentown, Pennsylvania
March 28, 2013
99 |
100 |
101 |
(a)
|
Documents filed as part of this Form 10-K report.
|
|||
1.
|
Financial Statements
|
|||
The following consolidated statements of Codorus Valley Bancorp, Inc. are incorporated by reference to Part II, Item 8 hereof:
|
||||
2.
|
Financial Statement Schedules
|
|||
Required financial statement schedules are omitted. This information is either not applicable, not required or is shown in the respective financial statements or in the notes thereto.
|
||||
3.
|
Exhibits filed as part of 10-K pursuant to Item 601 of Regulation S-K.
|
|||
See Exhibit Index.
|
102 |
/s/ Larry J. Miller
|
|||
Larry J. Miller, Vice-Chairman,
|
Date: March 10, 2015
|
||
President and Chief Executive Officer
|
/s/ Rodney L. Krebs
|
Chairman of the Board of
|
3/10/15
|
||
Rodney L. Krebs
|
Directors and Director
|
|||
/s/ Larry J. Miller
|
President, Chief Executive Officer,
|
3/10/15
|
||
Larry J. Miller
|
Vice-Chairman of the Board of
|
|||
(Principal Executive Officer)
|
Directors and Director
|
|||
/s/ D. Reed Anderson
|
Director
|
3/10/15
|
||
D. Reed Anderson, Esq.
|
||||
/s/ Cynthia A. Dotzel
|
Director
|
3/10/15
|
||
Cynthia A. Dotzel, CPA
|
||||
/s/ Jeffrey R. Hines
|
Director
|
3/10/15
|
||
Jeffrey R Hines, P.E.
|
||||
/s/ MacGregor S. Jones
|
Director
|
3/10/15
|
||
MacGregor S. Jones
|
||||
|
Director
|
3/10/15
|
||
Dallas L. Smith
|
||||
/s/ Harry R. Swift
|
Director
|
3/10/15
|
||
Harry R. Swift, Esq.
|
||||
/s/ Michael D. Peduzzi
|
Treasurer and Assistant Secretary
|
3/10/15
|
||
Michael D. Peduzzi, CPA
|
||||
(Principal Financial and Accounting Officer)
|
103 |
Exhibit
|
|||
Number
|
Description of Exhibit
|
||
3.1
|
Amended Articles of Incorporation (Incorporated by reference to Exhibit 3(i) to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2012, filed with the Commission on November 13, 2012)
|
||
3.2
|
Amended By-laws (Incorporated by reference to Exhibit 3(ii) to the Registrant’s Current Report on Form 8-K, filed with the Commission on February 17, 2012)
|
||
3.3
|
Certificate of Designations for the Series A Preferred Stock (Incorporated by reference to Exhibit 3.3 to the Registrant’s Current Report on Form 10-Q for September 30, 2013, filed with the Commission on November 12, 2013)
|
||
3.4
|
Certificate of Designation of Senior Non-Cumulative Perpetual Preferred Stock, Series B (Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on August 24, 2011)
|
||
4
|
Rights Agreement dated as of November 4, 2005 (Incorporated by reference to Exhibit 4 to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2010, filed with the Commission on November 15, 2010), as amended January 9, 2009 (Incorporated by reference to Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2010, filed with the Commission on November 15, 2010), as further amended August 17, 2011 (Incorporated by reference to exhibit 4.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on August 24, 2011)
|
||
4.1
|
Small Business Lending Fund- Securities Purchase Agreement, dated August 18, 2011, between Codorus Valley Bancorp, Inc. and the Secretary of the Treasury, with respect to the issuance and sale of the SBLF Preferred Stock (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on August 24, 2011)
|
||
10.1
|
Employment Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley Company and Larry J. Miller, dated December 27, 2005. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2010, filed with the Commission on November 15, 2010), as amended August 9, 2011 (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on August 11, 2011) *
|
||
10.2
|
Change of Control Agreement by and among Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley Company and Jann A. Weaver, dated December 27, 2005. (Incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2010, filed with the Commission on November 15, 2010) *
|
||
10.3
|
2000 Stock Incentive Plan (Incorporated by reference to Exhibit 4.3 of Registration Statement No. 333-40532 on Form S-8, filed with the Commission on June 30, 2000) *
|
104 |
10.4
|
2001 Employee Stock Bonus Plan (Incorporated by reference to Exhibit 99.1 of Registration Statement No. 333-68410 on Form S-8, filed with the Commission on August 27, 2001) *
|
|
10.5
|
Dividend Reinvestment and Stock Purchase Plan (Incorporated by reference to Exhibit 10.1 of Registration Statement No. 333-179179 on Form S-3D, filed with the Commission on January 26, 2012)
|
|
10.6
|
Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Larry J. Miller dated October 1, 1998 – filed herein *
|
|
10.7
|
Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Harry R. Swift dated October 1, 1998 – filed herein *
|
|
10.8
|
Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Jann Allen Weaver dated October 1, 1998 – filed herein *
|
|
10.9
|
Amendment to Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Larry J. Miller dated December 27, 2005 – filed herein *
|
|
10.10
|
Amendment to Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Harry R. Swift dated December 27, 2005 – filed herein *
|
|
10.11
|
Amendment to Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Jann Allen Weaver dated December 27, 2005 – filed herein *
|
|
10.12
|
Second Amendment to Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Larry J. Miller dated December 23, 2008 – filed herein *
|
|
10.13
|
Second Amendment to Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Harry R. Swift dated December 23, 2008 – filed herein *
|
|
10.14
|
Second Amendment to Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company and Jann Allen Weaver dated December 23, 2008 – filed herein *
|
|
10.15
|
Form of Group Term Replacement Plan, dated January 1, 2009 pertaining to senior officers of the Corporation’s subsidiary, PeoplesBank, A Codorus Valley Company – filed herein *
|
|
10.16
|
Form of Director Group Term Replacement Plan, dated December 1, 1998, including Split Dollar Policy Endorsements pertaining to non-employee directors of the Corporation’s subsidiary, PeoplesBank, A Codorus Valley Company – filed herein *
|
|
10.17
|
Long-Term Nursing Care Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley Company and Larry J. Miller, dated December 27, 2005. (Incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2010, filed with the Commission on November 15, 2010) *
|
|
10.18
|
Codorus Valley Bancorp, Inc. Change in Control and Supplemental Benefit Trust Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley Company and Hershey Trust Company, dated January 25, 2006. (Incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2010, filed with the Commission on November 15, 2010) and Resignation and Appointment of Trustee. (Incorporated by reference to Exhibit 10.15 of the Registrant’s Annual Report on Form 10-K for December 31, 2011 filed with the Commission on March 27, 2012)
|
105 |
10.19
|
Amended and Restated Declaration of Trust of CVB Statutory Trust No. 2, dated as of June 28, 2006, among Codorus Valley Bancorp, Inc., as sponsor, the Delaware and institutional trustee named therein, and the administrators named therein. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on June 30, 2006)
|
|
10.20
|
Indenture, dated as of June 28, 2006, between Codorus Valley Bancorp, Inc., as issuer, and the trustee named therein, relating to the Junior Subordinated Debt Securities due 2036. (Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on June 30, 2006)
|
|
10.21
|
Guarantee Agreement, dated as of June 28, 2006, between Codorus Valley Bancorp, Inc. and guarantee trustee named therein. (Incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the Commission on June 30, 2006)
|
|
10.22
|
2007 Long-Term Incentive Plan of Codorus Valley Bancorp, Inc. (Incorporated by reference to Exhibit A of the Registrant’s definitive proxy statement, dated April 6, 2012) *
|
|
10.23
|
2007 Employee Stock Purchase Plan (Incorporated by reference to Exhibit B of the Registrant’s definitive proxy statement, dated April 6, 2012) *
|
|
10.24
|
Executive Incentive Plan – filed herein *
|
|
10.25
|
Employment Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley Company and Michael F. Allen, dated July 23, 2012. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K/A, filed with the Commission on March 19, 2013)*
|
|
14
|
Code of Ethics (Incorporated by reference to Exhibit 14 to the Registrant’s Quarterly Report on Form 10-Q for September 30, 2012 filed with the Commission on November 13, 2012)
|
|
|
||
21
|
List of subsidiaries of the Codorus Valley Bancorp, Inc.
|
|
23
|
Consents of Independent Registered Public Accounting Firms
|
|
24
|
Power of Attorney
|
|
31.1
|
Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31.2
|
Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
106 |
107 |
EXHIBIT 10.6
5.2.1 | Removal. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act or by the Pennsylvania Department of Banking pursuant to state law. |
5.3.1 | Non-compete Provision . The Executive shall not, for a period of three (3) years after termination either directly or indirectly, either as an individual or as a proprietor, stockholder, partner, officer, director, employee, agent, consultant or independent contractor of any individual, partnership, corporation or other entity (excluding an ownership interest of one percent (1%) or less in the stock of a publicly traded company): |
(i)
|
become employed by, participate in, or be connected in any manner with the ownership, management, operation or control of any bank, savings and loan or other similar financial institution if the Executive’s responsibilities will include providing banking or other financial services in York County or within fifty (50) mile of any office maintained by the Company as of the date of the termination of the Executive’s employment or if the Executive regularly conducts business in or from an office or branch in York County or any other county or city in which the Company has an office or branch as of the date of the termination of the Executive’s employment; or
|
(ii) |
participate in any way in hiring or otherwise engaging, or assisting any other person or entity in hiring or otherwise engaging, on a temporary, part-time or permanent basis, any individual who was employed by the Company during the three (3) year period immediately prior to the termination of the Executive’s employment; or
|
|
(iii)
|
assist, advise, or serve in any capacity, representative or otherwise, any third party in any action against the Company or transaction involving the Company; or
|
|
(iv) |
sell, offer to sell, provide banking or other financial services, assist any other person in selling or providing banking or other financial services, or solicit or otherwise compete for, either directly or indirectly, any orders, contract, or accounts for services of a kind or nature like or substantially similar to the
|
|
(v) |
divulge, disclose, or communicate to others in any manner whatsoever, any confidential information of the Company, including, but not limited to, the names and addresses of customers of the Company, as they may have existed from time to time or of any of the Company’s prospective customers, work performed or services rendered for any customer, any method and/or procedures relating to projects or other work developed for the Company, earnings or other information concerning the Company. The restrictions contained in this subparagraph (v) apply to all information regarding the Company, regardless of the source who provided or compiled such information. Notwithstanding anything to the contrary, the terms of this subparagraph (v) shall not be limited to the three (3) year restriction set forth above and all information referred to herein shall not be disclosed unless and until it becomes known to the general public from sources other than the Executive.
|
5.3.2 |
Judicial Remedies
. In the event of a breach or threatened breach by the Executive of any provision of these restrictions, the Executive recognizes the substantial and immediate harm that a breach or threatened breach will impose upon the Company, and further recognizes that in such event monetary damages may be inadequate to fully protect the Company. Accordingly, in the event of a breach or threatened breach of this Agreement, the Executive consents to the Company’s entitlement to such
ex
parte
, preliminary, interlocutory, temporary or permanent injunctive, or any other equitable relief, protecting and fully enforcing the Company’s rights hereunder and preventing the Executive from further breaching any of his obligations set forth herein. The Executive expressly waives any requirement, based on any statute, rule of procedure, or other source, that the Company post a bond as a condition of obtaining any of the above-described remedies. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to the Company at law or in equity for such breach or threatened breach, including the recovery of damages from the Executive. The Executive expressly acknowledges and agrees that: (i) the restrictions set forth in Section 5.3.1 are reasonable, in terms of scope, duration, geographic area, and otherwise, (ii) the protections afforded the Company in Section 5.3.1 are necessary to protect its legitimate business interest, (iii) the restrictions set forth in Section 5.3.1 will not be materially adverse to the
|
5.3.3 |
Overbreadth of Restrictive Covenant.
It is the intention of the parties that if any restrictive covenant in this Agreement is determined by a court of competent jurisdiction to be overly broad, then the court should enforce such restrictive covenant to the maximum extent permitted under the law as to area, breadth and duration.
|
EXECUTIVE: | COMPANY: | |||||
PEOPLESBANK, A CODORUS VALLEY CO. | ||||||
/s/ Larry J. Miller | By: | /s/ Barry A. Keller | ||||
Larry J. Miller | Barry A. Keller | |||||
Title: | Chairman of the Board of Directors |
Primary:
|
Contingent:
|
Signature: | /s/ Larry J. Miller |
Date: | October 1, 1998 |
Early
|
Early
|
Disability
|
|||||||||||||
Termination
|
Vested
|
Termination
|
Change of Control
|
Annual Benefit
|
|||||||||||
Plan
|
Benefit
|
Accrual
|
Vesting
|
Accrual
|
Annual Benefit
|
Annual Benefit
|
Payable
|
||||||||
Year
|
Level
|
Balance
|
Schedule
|
Balance
|
Payable at 60
|
Payable at 60
|
Immediately
|
||||||||
1
|
100,000
|
45,448
|
100.00%
|
45,448
|
11,876
|
100,000
|
4,562
|
||||||||
2
|
100,000
|
94,668
|
100.00%
|
94,668
|
22,842
|
100,000
|
9,502
|
||||||||
3
|
100,000
|
147,974
|
100.00%
|
147,974
|
32,967
|
100,000
|
14,853
|
||||||||
4
|
100,000
|
205,703
|
100.00%
|
205,703
|
42,317
|
100,000
|
20,647
|
||||||||
5
|
100,000
|
268,225
|
100.00%
|
268,225
|
50,950
|
100,000
|
26,922
|
||||||||
6
|
100,000
|
335,935
|
100.00%
|
335,935
|
58,921
|
100,000
|
33,719
|
||||||||
7
|
100,000
|
409,265
|
100.00%
|
409,265
|
66,281
|
100,000
|
41,079
|
||||||||
8
|
100,000
|
488,682
|
100.00%
|
488,682
|
73,078
|
100,000
|
49,050
|
||||||||
9
|
100,000
|
574,691
|
100.00%
|
574,691
|
79,353
|
100,000
|
57,683
|
||||||||
10
|
100,000
|
667,838
|
100.00%
|
667,838
|
85,147
|
100,000
|
67,033
|
||||||||
11
|
100,000
|
768,716
|
100.00%
|
768,716
|
90,498
|
100,000
|
77,158
|
||||||||
12
|
100,000
|
877,967
|
100.00%
|
877,967
|
95,438
|
100,000
|
88,124
|
||||||||
13
|
100,000
|
996,286
|
100.00%
|
996,286
|
100,000
|
100,000
|
100,000
|
EXHIBIT 10.7
5.2.1
|
Removal
. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act or by the Pennsylvania Department of Banking pursuant to state law.
|
5.3.1
|
Non-compete Provision
. The Executive shall not, for a period of three (3) years after termination either directly or indirectly, either as an individual or as a proprietor, stockholder, partner, officer, director, employee, agent, consultant or independent contractor of any individual, partnership, corporation or other entity (excluding an ownership interest of one percent (1%) or less in the stock of a publicly traded company):
|
(i)
|
become employed by, participate in, or be connected in any manner with the ownership, management, operation or control of any bank, savings and loan or other similar financial institution if the Executive’s responsibilities will include providing banking or other financial services in York County or within fifty (50) mile of any office maintained by the Company as of the date of the termination of the Executive’s employment or if the Executive regularly conducts business in or from an office or branch in York County or any other county or city in which the Company has an office or branch as of the date of the termination of the Executive’s employment; or
|
(ii)
|
participate in any way in hiring or otherwise engaging, or assisting any other person or entity in hiring or otherwise engaging, on a temporary, part-time or permanent basis, any individual who was employed by the Company during the three (3) year period immediately prior to the termination of the Executive’s employment; or
|
(iii)
|
assist, advise, or serve in any capacity, representative or otherwise, any third party in any action against the Company or transaction involving the Company; or |
(iv)
|
sell, offer to sell, provide banking or other financial services, assist any other person in selling or providing banking or other financial services, or solicit or otherwise compete for, either directly or indirectly, any orders, contract, or accounts for services of a kind or nature like or substantially similar to the services performed or products sold by the Company (the preceding
|
|
hereinafter referred to as “Services”), to or from any person or entity from whom the Executive or the Company provided banking or other financial services, sold, offered to sell or solicited orders, contracts or accounts for Services during the three (3) year period immediately prior to the termination of the Executive’s employment; or
|
(v)
|
divulge, disclose, or communicate to others in any manner whatsoever, any confidential information of the Company, including, but not limited to, the names and addresses of customers of the Company, as they may have existed from time to time or of any of the Company’s prospective customers, work performed or services rendered for any customer, any method and/or procedures relating to projects or other work developed for the Company, earnings or other information concerning the Company. The restrictions contained in this subparagraph (v) apply to all information regarding the Company, regardless of the source who provided or compiled such information. Notwithstanding anything to the contrary, the terms of this subparagraph (v) shall not be limited to the three (3) year restriction set forth above and all information referred to herein shall not be disclosed unless and until it becomes known to the general public from sources other than the Executive.
|
(vi)
|
The restriction set forth in this Agreement shall not prohibit the Executive from engaging in the private practice of law after a Termination of Employment.
|
5.3.2
|
Judicial Remedies
. In the event of a breach or threatened breach by the Executive of any provision of these restrictions, the Executive recognizes the substantial and immediate harm that a breach or threatened breach will impose upon the Company, and further recognizes that in such event monetary damages may be inadequate to fully protect the Company. Accordingly, in the event of a breach or threatened breach of this Agreement, the Executive consents to the Company’s entitlement to such
ex
parte
, preliminary, interlocutory, temporary or permanent injunctive, or any other equitable relief, protecting and fully enforcing the Company’s rights hereunder and preventing the Executive from further breaching any of his obligations set forth herein. The Executive expressly waives any requirement, based on any statute, rule of procedure, or other source, that the Company post a bond as a condition of obtaining any of the above-described remedies. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to the Company at law or in equity for such breach or threatened breach, including the recovery of damages from the Executive. The Executive expressly acknowledges and agrees that: (i) the restrictions set forth in Section 5.3.1 are reasonable, in terms of scope, duration, geographic area, and otherwise, (ii) the protections afforded the Company in Section 5.3.1 are necessary to protect its legitimate business interest,
|
(iii) the restrictions set forth in Section 5.3.1 will not be materially adverse to the Executive’s employment with the Company, and (iv) his agreement to observe such restrictions forms a material part of the consideration for this Agreement.
|
5.3.3
|
Overbreadth of Restrictive Covenant.
It is the intention of the parties that if any restrictive covenant in this Agreement is determined by a court of competent jurisdiction to be overly broad, then the court should enforce such restrictive covenant to the maximum extent permitted under the law as to area, breadth and duration.
|
EXECUTIVE: | COMPANY: | ||||
PEOPLESBANK, A CODORUS VALLEY CO. | |||||
/s/ Harry R. Swift | By: | /s/ Barry A. Keller | |||
Harry R. Swift | Barry A. Keller | ||||
Title: | Chairman of the Board of Directors |
Primary: | |||
Contingent: |
Note:
|
To name a trust as beneficiary, please provide the name of the trustee(s) and the
exact
name and date of the trust agreement.
|
Signature: | /s/Harry R. Swift | ||||
Date: | 10-1-98 | ||||
Accepted by the Company this
1
st
day of
October
, 1998.
|
|||||
By: | /s/ Barry A. Keller | ||||
Barry A. Keller | |||||
Title: | Chairman of the Board of Directors |
Early
|
Early
|
Disability
|
|||||||||||||
Termination
|
Vested
|
Termination
|
Change of Control
|
Annual Benefit
|
|||||||||||
Plan
|
Benefit
|
Accrual
|
Vesting
|
Accrual
|
Annual Benefit
|
Annual Benefit
|
Payable
|
||||||||
Year
|
Level
|
Balance
|
Schedule
|
Balance
|
Payable at 65
|
Payable at 65
|
Immediately
|
||||||||
1
|
75,000
|
23,530
|
100.00%
|
23,530
|
8,239
|
75,000
|
2,698
|
||||||||
2
|
75,000
|
49,013
|
100.00%
|
49,013
|
15,847
|
75,000
|
5,621
|
||||||||
3
|
75,000
|
76,611
|
100.00%
|
76,611
|
22,872
|
75,000
|
8,786
|
||||||||
4
|
75,000
|
106,500
|
100.00%
|
106,500
|
29,359
|
75,000
|
12,213
|
||||||||
5
|
75,000
|
138,869
|
100.00%
|
138,869
|
35,348
|
75,000
|
15,925
|
||||||||
6
|
75,000
|
173,926
|
100.00%
|
173,926
|
40,879
|
75,000
|
19,945
|
||||||||
7
|
75,000
|
211,891
|
100.00%
|
211,891
|
45,985
|
75,000
|
24,299
|
||||||||
8
|
75,000
|
253,008
|
100.00%
|
253,008
|
50,701
|
75,000
|
29,015
|
||||||||
9
|
75,000
|
297,538
|
100.00%
|
297,538
|
55,055
|
75,000
|
34,121
|
||||||||
10
|
75,000
|
345,763
|
100.00%
|
345,763
|
59,075
|
75,000
|
39,652
|
||||||||
11
|
75,000
|
397,992
|
100.00%
|
397,992
|
62,787
|
75,000
|
45,641
|
||||||||
12
|
75,000
|
454,555
|
100.00%
|
454,555
|
66,214
|
75,000
|
52,128
|
||||||||
13
|
75,000
|
515,813
|
100.00%
|
515,813
|
69,379
|
75,000
|
59,153
|
||||||||
14
|
75,000
|
582,155
|
100.00%
|
582,155
|
72,302
|
75,000
|
66,761
|
||||||||
15
|
75,000
|
654,004
|
100.00%
|
654,004
|
75,000
|
75,000
|
75,000
|
EXHIBIT 10.8
5.2.1
|
Removal. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act or by the Pennsylvania Department of Banking pursuant to state law.
|
5.3.1
|
Non-compete Provision
. The Executive shall not, for a period of one (1) year after termination either directly or indirectly, either as an individual or as a proprietor, stockholder, partner, officer, director, employee, agent, consultant or independent contractor of any individual, partnership, corporation or other entity (excluding an ownership interest of one percent (1%) or less in the stock of a publicly traded company):
|
|
(i)
|
become employed by, participate in, or be connected in any manner with the ownership, management, operation or control of any bank, savings and loan or other similar financial institution if the Executive’s responsibilities will include providing banking or other financial services in York County or within twenty-five (25) miles of the Codorus Valley Corporate Center, 105 Leader Heights Road, York, PA as of the date of the termination of the Executive’s employment or if the Executive regularly conducts business in or from an office or branch in York County as of the date of the termination of the Executive’s employment; or
|
|
(ii)
|
participate in any way in hiring or otherwise engaging, or assisting any other person or entity in hiring or otherwise engaging, on a temporary, part-time or permanent basis, any individual who was employed by the Company during the one (1) year period immediately prior to the termination of the Executive’s employment; or
|
|
(iii)
|
assist, advise, or serve in any capacity, representative or otherwise, any third party in any action against the Company or transaction involving the Company; or
|
|
(iv)
|
sell, offer to sell, provide banking or other financial services, assist any other person in selling or providing banking or other financial services, or solicit or otherwise compete for, either directly or indirectly, any orders, contract, or accounts for services of a kind or nature like or substantially similar to the
|
|
services performed or products sold by the Company (the preceding hereinafter referred to as “Services”), to or from any person or entity from whom the Executive or the Company provided banking or other financial services, sold, offered to sell or solicited orders, contracts or accounts for Services during the one (1) year period immediately prior to the termination of the Executive’s employment; or
|
|
(v)
|
divulge, disclose, or communicate to others in any manner whatsoever, any confidential information of the Company, including, but not limited to, the names and addresses of customers of the Company, as they may have existed from time to time or of any of the Company’s prospective customers, work performed or services rendered for any customer, any method and/or procedures relating to projects or other work developed for the Company, earnings or other information concerning the Company. The restrictions contained in this subparagraph (v) apply to all information regarding the Company, regardless of the source who provided or compiled such information. Notwithstanding anything to the contrary, the terms of this subparagraph (v) shall not be limited to the one (1) year restriction set forth above and all information referred to herein shall not be disclosed unless and until it becomes known to the general public from sources other than the Executive.
|
5.3.2
|
Judicial Remedies
. In the event of a breach or threatened breach by the Executive of any provision of these restrictions, the Executive recognizes the substantial and immediate harm that a breach or threatened breach will impose upon the Company, and further recognizes that in such event monetary damages may be inadequate to fully protect the Company. Accordingly, in the event of a breach or threatened breach of this Agreement, the Executive consents to the Company’s entitlement to such
ex
parte
, preliminary, interlocutory, temporary or permanent injunctive, or any other equitable relief, protecting and fully enforcing the Company’s rights hereunder and preventing the Executive from further breaching any of his obligations set forth herein. The Executive expressly waives any requirement, based on any statute, rule of procedure, or other source, that the Company post a bond as a condition of obtaining any of the above-described remedies. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to the Company at law or in equity for such breach or threatened breach, including the recovery of damages from the Executive. The Executive expressly acknowledges and agrees that: (i) the restrictions set forth in Section 5.3.1 are reasonable, in terms of scope, duration, geographic area, and otherwise, (ii) the protections afforded the Company in Section 5.3.1 are necessary to protect its legitimate business interest, (iii) the restrictions set forth in Section 5.3.1 will not be materially adverse to the
|
Executive’s employment with the Company, and (iv) his agreement to observe such restrictions forms a material part of the consideration for this Agreement.
|
5.3.3
|
Overbreadth of Restrictive Covenant.
It is the intention of the parties that if any restrictive covenant in this Agreement is determined by a court of competent jurisdiction to be overly broad, then the court should enforce such restrictive covenant to the maximum extent permitted under the law as to area, breadth and duration.
|
EXECUTIVE: | COMPANY: | ||||
PEOPLESBANK, A CODORUS VALLEY CO. | |||||
/s/ Jann Allen Weaver | By: | /s/ Barry A. Keller | |||
Barry A. Keller | |||||
Title: | Chairman of the Board of Directors |
Primary: | |||
Contingent: | |||
Note:
|
To name a trust as beneficiary, please provide the name of the trustee(s) and the
exact
name and date of the trust agreement.
|
Signature: | /s/ Jann A. Weaver | ||||
Date: | 10-1-98 | ||||
Accepted by the Company this
1st
day of
October
, 1998.
|
|||||
By: | /s/ Barry A. Keller | ||||
Barry A. Keller | |||||
Title: | Chairman of the Board of Directors |
Early
|
Early
|
Disability
|
|||||||||||||
Termination
|
Vested
|
Termination
|
Change of Control
|
Annual Benefit
|
|||||||||||
Plan
|
Benefit
|
Accrual
|
Vesting
|
Accrual
|
Annual Benefit
|
Annual Benefit
|
Payable
|
||||||||
Year
|
Level
|
Balance
|
Schedule
|
Balance
|
Payable at 65
|
Payable at 65
|
Immediately
|
||||||||
1
|
55,000
|
13,828
|
100.00%
|
13,828
|
5,679
|
5,679
|
1,586
|
||||||||
2
|
55,000
|
28,804
|
100.00%
|
28,804
|
10,924
|
10,924
|
3,303
|
||||||||
3
|
55,000
|
45,023
|
100.00%
|
45,023
|
15,766
|
15,766
|
5,163
|
||||||||
4
|
55,000
|
62,589
|
100.00%
|
62,589
|
20,237
|
20,237
|
7,178
|
||||||||
5
|
55,000
|
81,612
|
100.00%
|
81,612
|
24,365
|
24,365
|
9,359
|
||||||||
6
|
55,000
|
102,214
|
100.00%
|
102,214
|
28,177
|
28,177
|
11,722
|
||||||||
7
|
55,000
|
124,526
|
100.00%
|
124,526
|
31,697
|
31,697
|
14,280
|
||||||||
8
|
55,000
|
148,690
|
100.00%
|
148,690
|
34,947
|
34,947
|
17,051
|
||||||||
9
|
55,000
|
174,859
|
100.00%
|
174,859
|
37,949
|
37,949
|
20,053
|
||||||||
10
|
55,000
|
203,200
|
100.00%
|
203,200
|
40,720
|
40,720
|
23,303
|
||||||||
11
|
55,000
|
233,894
|
100.00%
|
233,894
|
43,278
|
43,278
|
26,823
|
||||||||
12
|
55,000
|
267,136
|
100.00%
|
267,136
|
45,641
|
45,641
|
30,635
|
||||||||
13
|
55,000
|
303,136
|
100.00%
|
303,136
|
47,822
|
47,822
|
34,763
|
||||||||
14
|
55,000
|
342,125
|
100.00%
|
342,125
|
49,837
|
49,837
|
39,234
|
||||||||
15
|
55,000
|
384,349
|
100.00%
|
384,349
|
51,697
|
51,697
|
44,076
|
||||||||
16
|
55,000
|
430,078
|
100.00%
|
430,078
|
53,414
|
53,414
|
49,321
|
||||||||
15
|
55,000
|
479,603
|
100.00%
|
479,603
|
55,000
|
55,000
|
55,000
|
EXHIBIT 10.9
- 1 -
|
- 2 -
|
- 3 -
|
- 4 -
|
- 5 -
|
ATTEST
:
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
|
|||
/s/ Barbara J. Myers |
|
By:
|
/s/ Rodney L. Krebs | |
Secretary | Chairman of the Board |
WITNESS: | |||
/s/ Matthew A. Clemens | /s/ Larry J, Miller | ||
Larry J. Miller |
- 6 -
|
EXHIBIT 10.10
-1-
|
-2-
|
-3-
|
-4-
|
-5-
|
ATTEST
:
|
PEOPLESBANK, A CODORUS VALLEY COMPANY | |||||
/s/ Barbara J. Myers |
By:
|
/s/ Rodney L. Krebs | ||||
Secretary | Chairman of the Board | |||||
WITNESS
:
|
||||||
/s/ Natalie L. Thompson | /s/ Harry R. Swift | |||||
Harry R. Swift |
-6-
|
EXHIBIT 10.11
-1-
|
-2-
|
-3-
|
-4-
|
ATTEST
:
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
|
|||||
/s/ Barbara J. Myers |
By:
|
/s/ Rodney L. Krebs | ||||
Secretary | Chairman of the Board | |||||
WITNESS
:
|
||||||
/s/ Matthew A. Clemens | /s/ Jann A. Weaver | |||||
Jann A. Weaver |
-5-
|
EXHIBIT 10.12
1.1.5
|
“
Early Termination
” means the Termination of Employment before Early Retirement Age for reasons other than death or Termination for Cause.
|
1.1.11
|
“
Termination of Employment
” means termination of the Executive’s employment with the Bank for reasons other than death, Change of Control or Disability. Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been providing services to the Bank less than thirty-six (36) months).
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
Salary Continuation Agreement
|
|
2.1.1
|
Amount of Benefit
. The annual benefit under this Section 2.1 is One Hundred Fifty Thousand One Hundred Ten Dollars ($150,110). For the first five (5) year period after Normal Retirement Age but prior to Termination of Employment, the Bank shall increase the annual Normal Retirement Benefit by .3274%, compounded monthly, for each complete month prior to Termination of Employment.
|
|
2.1.2
|
Payment of Benefit
. The Bank shall pay the annual benefit to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s Normal Retirement Date and continuing for one hundred seventy-nine (179) additional months.
|
|
2.2.1
|
Amount of Benefit
. The benefit under this Section 2.2 is the Early Termination Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to Termination of Employment.
|
|
2.2.2
|
Payment of Benefit
. The Bank shall pay the annual benefit to the Executive in twelve (12) equal monthly installments payable on the first day each month commencing with the month following Early Retirement Age and continuing for one hundred seventy-nine (179) additional months.
|
2.3
|
Disability Benefit.
If the Executive experiences a Disability prior to Normal Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement.
|
|
2.3.1
|
Amount of Benefit
. The benefit under this Section 2.3 is the Disability Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to the date in which the Disability occurs.
|
|
2.3.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the
|
1
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
Salary Continuation Agreement
|
|
2.4.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s Normal Retirement Age and continuing for one hundred seventy-nine (179) additional months.
|
2.6
|
Early Retirement Benefit.
Upon Termination of Employment on or after Early Retirement Age for reasons other than death, but before reaching Normal Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.6 in lieu of any other benefit under this Agreement.
|
|
2.6.1
|
Amount of Benefit
. The annual benefit under this Section 2.6 is the Early Retirement Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to the date in which Termination of Employment occurs.
|
|
2.6.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following Termination of Employment and continuing for one hundred seventy-nine (179) additional months.
|
3.1.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the beneficiary in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s death and continuing for one hundred seventy-nine (179) additional months.
|
2
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
Salary Continuation Agreement
|
Executive:
|
PeoplesBank, A Codorus Valley Company | ||||
/s/ Larry J. Miller | By: /s/ Rodney L. Krebs | ||||
Larry J. Miller | Title: Chairman of the Board of Directors | ||||
3
|
EXHIBIT 10.13
1.1.4a | “ Early Retirement Age ” means the Executive’s 55 th birthday. |
1.1.5
|
“
Early Termination
” means the Termination of Employment before Early Retirement Age for reasons other than death or Termination for Cause.
|
1.1.11
|
“
Termination of Employment
” means termination of the Executive’s employment with the Bank for reasons other than death, Change in Control or Disability. Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been providing services to the Bank less than thirty-six (36) months).
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
Salary Continuation Agreement
|
|
2.1.1
|
Amount of Benefit
. The annual benefit under this Section 2.1 is One Hundred Five Thousand Nine Hundred Seventy Eight Dollars ($105,798). For the first five (5) year period after Normal Retirement Age but prior to Termination of Employment, the Bank shall increase the annual Normal Retirement Benefit by .3274%, compounded monthly, for each complete month prior to Termination of Employment.
|
|
2.2.1
|
Amount of Benefit
. The benefit under this Section 2.2 is the Early Termination Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to Termination of Employment.
|
|
2.2.2
|
Payment of Benefit
. The Bank shall pay the annual benefit to the Executive in twelve (12) equal monthly installments payable on the first day each month commencing with the month following Early Retirement Age and continuing for one hundred seventy-nine (179) additional months.
|
2.3
|
Disability Benefit.
If the Executive experiences a Disability prior to Normal Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement.
|
|
2.3.1
|
Amount of Benefit
. The benefit under this Section 2.3 is the Disability Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to the date in which the Disability occurs.
|
|
2.3.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Disability and continuing for one hundred seventy-nine (179) additional months.
|
1
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
Salary Continuation Agreement
|
|
2.4.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s Normal Retirement Age and continuing for one hundred seventy-nine (179) additional months.
|
2.6
|
Early Retirement Benefit.
Upon Termination of Employment on or after Early Retirement Age for reasons other than death, but before reaching Normal Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.6 in lieu of any other benefit under this Agreement.
|
|
2.6.1
|
Amount of Benefit
. The annual benefit under this Section 2.6 is the Early Retirement Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to the date in which Termination of Employment occurs.
|
|
2.6.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following Termination of Employment and continuing for one hundred seventy-nine (179) additional months.
|
Executive: | PeoplesBank, A Codorus Valley Company | |||
/ s/Harry R. Swift | By: Rodney L. Krebs | |||
Harry R. Swift | Title: Chairman of the Board of Directors |
2
|
EXHIBIT 10.14
1.1.4a
|
“ Early Retirement Age ” means the Executive’s 55 th birthday. |
1.1.5
|
“
Early Termination
” means the Termination of Employment before Early Retirement Age for reasons other than death or Termination for Cause.
|
1.1.11
|
“
Termination of Employment
” means termination of the Executive’s employment with the Bank for reasons other than death, Change of Control or Disability. Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been providing services to the Bank less than thirty-six (36) months).
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
Salary Continuation Agreement
|
|
2.1.1
|
Amount of Benefit
. The annual benefit under this Section 2.1 is Seventy Four Thousand Seven Hundred Ninety Seven Dollars ($74,797). For the first five (5) year period after Normal Retirement Age but prior to Termination of Employment, the Bank shall increase the annual Normal Retirement Benefit by .3274%, compounded monthly, for each complete month prior to Termination of Employment.
|
|
2.2.1
|
Amount of Benefit
. The benefit under this Section 2.2 is the Early Termination Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to Termination of Employment.
|
|
2.2.2
|
Payment of Benefit
. The Bank shall pay the annual benefit to the Executive in twelve (12) equal monthly installments payable on the first day each month commencing with the month following Early Retirement Age and continuing for one hundred seventy-nine (179) additional months.
|
2.3
|
Disability Benefit.
If the Executive experiences a Disability prior to Normal Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement.
|
|
2.3.1
|
Amount of Benefit
. The benefit under this Section 2.3 is the Disability Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to the date in which the Disability occurs.
|
|
2.3.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Disability and continuing for one hundred seventy-nine (179) additional months.
|
1
|
PEOPLESBANK, A CODORUS VALLEY COMPANY
Salary Continuation Agreement
|
|
2.4.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s Normal Retirement Age and continuing for one hundred seventy-nine (179) additional months.
|
2.6
|
Early Retirement Benefit.
Upon Termination of Employment on or after Early Retirement Age for reasons other than death, but before reaching Normal Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.6 in lieu of any other benefit under this Agreement.
|
|
2.6.1
|
Amount of Benefit
. The annual benefit under this Section 2.6 is the Early Retirement Annual Benefit amount set forth in Schedule A for the Plan Year ending immediately prior to the date in which Termination of Employment occurs.
|
|
2.6.2
|
Payment of Benefit
. The Bank shall pay the annual benefit amount to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following Termination of Employment and continuing for one hundred seventy-nine (179) additional months.
|
Executive: | PeoplesBank, A Codorus Valley Company | |||
/s/ Jann Allen Weaver | By: Rodney L. Krebs | |||
Jann Allen Weaver | Title: Chairman of the Board of Directors |
2
|
EXHIBIT 10.15
1.1
|
“
Bank’s Interest
” means the benefit set forth in Section 3.1.
|
1.2
|
“
Beneficiary
” means each designated person, or the estate of a deceased Participant, entitled to benefits, if any, upon the death of a Participant.
|
1.3
|
“ Beneficiary Designation Form ” means the form established from time to time by the Plan Administrator that a Participant completes, signs and returns to the Plan Administrator to designate one or more Beneficiaries. |
1.4
|
“
Board
” means the Board of Directors of the Bank as from time to time constituted.
|
1.5
|
“
Code
” means the Internal Revenue Code of 1986, as amended.
|
1.6
|
“
Election Form
” means the form required by the Plan Administrator of an eligible Employee to indicate acceptance of participation in this Plan.
|
1.7
|
“
Employee
” means an active employee of the Bank.
|
1.8
|
“
Insured
” means the individual Participant whose life is insured.
|
1.9
|
“
Insurer
” means the insurance company issuing the Policy on the life of the Insured.
|
1.10
|
“
Net Death Proceeds
” means the total death proceeds of the Participant’s Policy or Policies minus the greater of (i) cash surrender value or (ii) the aggregate premiums paid.
|
1.11
|
“
Participant
” means an Employee (i) who is selected to participate in the Plan, (ii) who
|
|
elects to participate in the Plan, (iii) who signs an Election Form and a Beneficiary Designation Form, (iv) whose signed Election Form and Beneficiary Designation Form are accepted by the Plan Administrator, (v) who commences participation in the Plan, and (vi) whose Participation has not terminated.
|
1.12
|
“
Participant’s Interest
” means the benefit set forth in Section 3.2.1.
|
1.13
|
“
Plan Administrator
” means the plan administrator described in Article 12.
|
1.14
|
“
Policy
” or “
Policies
” means the individual life insurance policy or policies adopted by the Plan Administrator for purposes of insuring a Participant’s life under this Plan.
|
1.15
|
“
Separation from Service
” means the Participant ceasing to be employed by the Bank for any reason other than death.
|
1.16
|
“
Three Times Base Annual Salary
” means the current base annual salary of the Participant’s career at the Bank multiplied by a factor of three (3).
|
2.1
|
Selection by Plan Administrator
. Participation in the Plan shall be limited to those Employees of the Bank selected by the Plan Administrator, in its sole discretion, to participate in the Plan.
|
|
2.2
|
Enrollment Requirements
. As a condition to participation, each selected Employee shall complete, execute and return to the Plan Administrator (i) an Election Form, and (ii) a Beneficiary Designation Form. In addition, the Plan Administrator shall establish from time to time such other enrollment requirements as it determines in its sole discretion are necessary.
|
2.3
|
Eligibility; Commencement of Participation
. Provided an Employee selected to participate in the Plan has met all enrollment requirements set forth in this Plan and required by the Plan Administrator, and provided that the Policy or Policies on a such Employee have been issued by the Insurer(s), that Employee will become a Participant, be covered by the Plan and will be eligible to receive benefits at the time and in the manner provided hereunder, subject to the provisions of the Plan. A Participant’s participation is limited to only issued Policies where the Participant is the Insured.
|
2.4
|
Termination of Participation
. A Participant’s rights under this Plan shall automatically cease and his or her participation in this Plan shall automatically terminate if the Plan or any Participant’s rights under the Plan are terminated in accordance with Article 11 or if the Participant notifies the Bank in writing that the Participant wishes to withdrawal participation under the Plan. In the event that the Bank decides to maintain the Policy after the Participant’s termination of participation in the Plan, the Bank shall be the direct beneficiary of the entire death proceeds of the Policy.
|
1
|
3.1
|
Bank’s Interest
. The Bank shall own the Policies and shall have the right to exercise all incidents of ownership and may terminate a Policy without the consent of the Insured. The Bank shall be the beneficiary of the remaining death proceeds of the Policies after the Participant’s Interest is determined according to Section 3.2.
|
3.2
|
Participant’s Interest
. The Participant, or the Participant’s assignee, shall have the right to designate the Beneficiary of an amount of death proceeds as specified in Section 3.2.1. The Participant shall also have the right to elect and change settlement options with respect to the Participant’s Interest by providing written notice to the Bank and the Insurer.
|
|
3.2.1
|
Death Prior to Separation from Service
. If the Participant dies prior to Separation from Service, the Beneficiary shall be entitled to a benefit equal to the lesser of (i) the amount set forth on the Election Form or (ii) Net Death Proceeds.
|
|
3.2.2
|
Death After Separation from Service
. If the Participant dies after Separation from Service, the Beneficiary shall not be entitled to a benefit under this Plan.
|
4.1
|
Premium Payment
. The Bank shall pay all premiums due on all Policies.
|
4.2
|
Economic Benefit
. The Plan Administrator shall determine the economic benefit attributable to any Participant based on the life insurance premium factor for the Participant’s age multiplied by the aggregate death benefit payable to the Participant’s Beneficiary. The “life insurance premium factor” is the minimum amount required to be imputed under IRS Reg. §1.61-22(d)(3)(ii) or any subsequent applicable authority.
|
4.3
|
Imputed Income
. The Bank shall impute the economic benefit to the Participant on an annual basis, by adding the economic benefit to the Participant’s W-2, or if applicable, Form 1099.
|
5.1
|
Insurance Policies
. The Bank may provide such benefit through the Policies purchased at the commencement of this Plan, or, if later, the Participant’s commencement of participation in the Plan, or may provide comparable insurance coverage to the Participant through whatever means the Bank deems appropriate. If the Participant waives or forfeits his or her right to the insurance benefit, the Bank shall choose to cancel the Policy or Policies on the Participant, or may continue such coverage and become the
|
2
|
|
direct beneficiary of the entire death proceeds.
|
5.2
|
Offer to Purchase
. If the Bank discontinues a Policy on a Participant, the Bank shall give the Participant at least thirty (30) days to purchase such Policy. The purchase price shall be the fair market value of the Policy, as determined under Treasury Reg. §1.61-22(g)(2) or any subsequent applicable authority. Such notification shall be in writing.
|
|
Article 6
|
|
General Limitations
|
6.1
|
Removal
. Notwithstanding any provision of this Plan to the contrary, the Participant’s rights in the Plan shall terminate if the Participant is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act.
|
6.2
|
Suicide or Misstatement
. No benefits shall be payable if the Participant commits suicide within two (2) years after the date of entry into the Plan, or if the insurance company denies coverage (i) for material misstatements of fact made by the Participant on any application for life insurance purchased by the Bank, or (ii) for any other reason; provided, however that the Bank shall evaluate the reason for the denial, and upon advice of legal counsel and in its sole discretion, consider judicially challenging any denial.
|
|
Article 7
|
|
Beneficiaries
|
7.1
|
Beneficiary
. The Participant shall have the right, at any time, to designate a Beneficiary to receive any benefits payable under the Plan upon the death of the Participant. The Beneficiary designated under this Plan may be the same as or different from the beneficiary designated under any other Plan of the Bank in which the Participant participates.
|
7.2
|
Beneficiary Designation; Change
. The Participant shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Bank or its designated agent. The Participant’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Participant or if the Participant names a spouse as Beneficiary and the marriage is subsequently dissolved. The Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Bank’s rules and procedures, as in effect from time to time. Upon the acceptance by the Bank of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Bank shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Bank prior to the Participant’s death.
|
7.3
|
Acknowledgment
. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Bank or its
|
7.4
|
No Beneficiary Designation
. If the Participant dies without a valid designation of beneficiary, or if all designated Beneficiaries predecease the Participant, then the Participant’s surviving spouse shall be the designated Beneficiary. If the Participant has no surviving spouse, the benefits shall be made payable to the Participant’s estate.
|
7.5
|
Facility of Payment
. If the Bank determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person’s property, the Bank may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Bank may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.
|
10.1
|
Claims Procedure
. A Participant or Beneficiary (“claimant”) who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows:
|
|
10.1.1
|
Initiation – Written Claim
. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the claimant, the claim must be made within sixty
|
4
|
|
|
(60) days after such notice was received by the claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the claimant.
|
|
10.1.2
|
Timing of Plan Administrator Response
. The Plan Administrator shall respond to such claimant within ninety (90) days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety (90) days by notifying the claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.
|
|
10.1.3
|
Notice of Decision
. If the Plan Administrator denies part or the entire claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:
|
|
(a)
|
The specific reasons for the denial;
|
|
(b)
|
A reference to the specific provisions of the Plan on which the denial is based;
|
|
(c)
|
A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;
|
|
(d)
|
An explanation of the Plan’s review procedures and the time limits applicable to such procedures; and
|
|
(e)
|
A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.
|
10.2
|
Review Procedure
. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follows:
|
|
10.2.1
|
Initiation – Written Request
. To initiate the review, the claimant, within sixty (60) days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review.
|
|
10.2.2
|
Additional Submissions – Information Access
. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.
|
|
10.2.3
|
Considerations on Review
. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating
|
5
|
|
|
to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.
|
|
10.2.4
|
Timing of Plan Administrator’s Response
. The Plan Administrator shall respond in writing to such claimant within sixty (60) days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional sixty (60) days by notifying the claimant in writing, prior to the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.
|
|
10.2.5
|
Notice of Decision
. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:
|
|
(a)
|
The specific reasons for the denial;
|
|
(b)
|
A reference to the specific provisions of the Plan on which the denial is based;
|
|
(c)
|
A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits; and
|
|
(d)
|
A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).
|
12.1
|
Plan Administrator Duties
. This Plan shall be administered by a Plan Administrator which shall consist of the Board, or such committee or persons as the Board may choose. The Plan Administrator shall also have the discretion and authority to (i) make, amend,
|
6
|
|
interpret and enforce all appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan.
|
12.2
|
Agents
. In the administration of this Plan, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Bank.
|
12.3
|
Binding Effect of Decisions
. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.
|
12.4
|
Indemnity of Plan Administrator
. The Bank shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Plan Administrator or any of its members.
|
12.5
|
Information
. To enable the Plan Administrator to perform its functions, the Bank shall supply full and timely information to the Plan Administrator on all matters relating to the Separation from Service or death of its Participants, and such other pertinent information as the Plan Administrator may reasonably require.
|
13.1
|
Binding Effect
. This Plan shall bind each Participant and the Bank, their beneficiaries, survivors, executors, administrators and transferees and any Beneficiary.
|
13.2
|
No Guarantee of Employment
. This Plan is not an employment policy or contract. It does not give a Participant the right to remain an Employee of the Bank, nor does it interfere with the Bank’s right to discharge a Participant. It also does not require a Participant to remain an Employee nor interfere with a Participant’s right to terminate employment at any time.
|
13.3
|
Applicable Law
. The Plan and all rights hereunder shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, except to the extent preempted by the laws of the United States of America.
|
13.4
|
Reorganization
. The Bank shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm or person unless such succeeding or continuing company, firm or person agrees to assume and discharge the obligations of the Bank under this Plan. Upon the occurrence of such event, the term “Bank” as used in this Plan shall be deemed to refer to the successor or survivor
|
7
|
|
company.
|
13.5
|
Notice
. Any notice or filing required or permitted to be given to the Plan Administrator under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:
|
PeoplesBank, A Codorus Valley Company
|
|
105 Leader Heights Road
|
|
York, Pennsylvania 17403
|
|
13.6
|
Entire Agreement
. This Plan, along with a Participant’s Election Form, Beneficiary Designation Form and any agreement in writing between the Bank and any Participant, constitute the entire agreement between the Bank and the Participant as to the subject matter hereof. No rights are granted to the Participant under this Plan other than those specifically set forth herein.
|
PeoplesBank, a Codorus Valley Company | |||
By | |||
Title | |||
Codorus Valley Bancorp, Inc. | |||
By | |||
Title |
8
|
EXHIBIT 10.16
|
3.1
Premium Payment
. The Company shall pay any premiums due on the Policies.
|
(a)
|
Interpreting the provisions of the Plan;
|
(b)
|
Establishing and revising the method of accounting for the Plan;
|
(c)
|
Maintaining a record of benefit payments; and
|
(d)
|
Establishing rules and prescribing any forms necessary or desirable to administer the
Plan.
|
COMPANY: | ||||
PEOPLESBANK, A CODOROUS VALLEY CO.
|
||||
By | ||||
Title | ||||
CORPORATION:
|
||||
CODOROUS VALLEY BANCORP, INC.
|
||||
By | ||||
Title |
Policy No. _____________ |
Insured:
|
By | |||
Its |
By | |||
Its |
Witness |
Participant
|
Participant’s Name
|
Insurer
|
Policy Number
|
||||||||
__________________________
|
________________
|
|||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
__________________________
|
________________
|
||||||||
________________________
|
________________________
|
________________
|
EXHIBIT 10.24
I.
|
Introduction
|
|
•
|
provide a form of results-oriented variable compensation which is directly linked to overall Company performance in terms of net income, and,
|
|
•
|
provide for recognition of individual contribution to the Company’s performance through an individual performance level which can be utilized to adjust an employee’s award up or down based on individual contribution/performance
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 2 |
II.
|
Definitions
|
Target
|
defined as 100% of goal
|
|
Threshold
|
defined as a predetermined point 90% of target goal
|
|
Maximum
|
defined as a predetermined point 120% of target goal
|
|
Target Payout Level
|
defined as a predetermined percentage of base salary as outlined in Exhibit B at target performance
|
|
Threshold Payout Level
|
defined as a predetermined percentage of base pay less than 100% of target award level
|
|
Maximum Payout Level
|
defined as a predetermined percentage of base pay greater than 100% of target award level
|
III.
|
Plan Year
|
IV.
|
Eligibility for Participation
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 3 |
V.
|
Performance Factors
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 4 |
|
1.
|
An award determined by overall Company financial performance against pre-defined goals.
|
|
2.
|
An individual performance factor which can increase or decrease each employee’s actual award based on annual performance and work production during the year.
|
VI.
|
Award Calculation and Distribution
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 5 |
VII.
|
Clawback
|
VIII.
|
Administration
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 6 |
IX.
|
Governing Law
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 7 |
X.
|
Plan Approval
|
By | ||
Board of Directors
|
||
Codorus Valley Bancorp, Inc.
|
||
Compensation Committee
|
||
Codorus Valley Bancorp, Inc.
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 8 |
Category 1 – |
President & CEO
|
|
Category 2 –
|
Chief Credit Officer | |
Chief Counsel
Chief Financial Officer
Chief Lending Officer
Chief Operating Officer
Head of HR
Head of Retail
SVP, Wealth Management
|
||
Category 3 - | CIO | |
SVP, General Services
VP, Auditor
VP, Marketing
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 9 |
Category 1 |
COMPANY GOALS
|
Threshold (90% of Target)
|
Target
|
Maximum (120% of Target)
|
||||||||
$[redacted]*
|
$[redacted]*
|
$[redacted]*
|
COMPANY GOAL AWARD
(% of Base Pay)
|
Threshold
|
Target
|
Maximum
|
||||||||
12.5%
|
25%
|
37.5%
|
INDIVIDUAL PERFORMANCE FACTOR
|
+/- 20% of the award based on individual performance as determined by BOD
|
+/- 20% of the award based on individual performance as determined by BOD
|
+/- 20% of the award based on individual performance as determined by BOD
|
POTENTIAL AWARD RANGE
(% of Base Pay)
|
Threshold
|
Target
|
Maximum
|
||||||||
10 – 15%
|
20 – 30%
|
30 – 45%
|
|
1.
|
Base pay is defined as base salary as of December 31 of plan year.
|
|
2.
|
Company performance factor(s) must meet or exceed threshold to initiate an award in the Plan.
|
|
3.
|
Awards for performance above threshold but between defined points (threshold, target, maximum) will be interpolated.
|
|
4.
|
Performance above maximum level will be paid at maximum award level.
|
|
5.
|
The Board of Directors has the discretion to adjust incentive payments down by as much as 100% if it is determined that excessive risk has been taken. This can be done on an individual or overall basis, as appropriate.
|
|
6.
|
Net income is defined as net income after all expenses including the dividend paid on the preferred shares and the expense of the awards under this plan.
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 10 |
Category 2 |
COMPANY GOALS
|
Threshold (90% of Target)
|
Target
|
Maximum (120% of Target)
|
||||||||
$[redacted]*
|
$[redacted]*
|
$[redacted]*
|
COMPANY GOAL AWARD
(% of Base Pay)
|
Threshold
|
Target
|
Maximum
|
||||||||
10%
|
20%
|
30%
|
INDIVIDUAL PERFORMANCE FACTOR
|
+/- 35% of the award based on individual performance as determined by BOD
|
+/- 35% of the award based on individual performance as determined by BOD
|
+/- 35% of the award based on individual performance as determined by BOD
|
POTENTIAL AWARD RANGE
(% of Base Pay)
|
Threshold
|
Target
|
Maximum
|
||||||||
6.5 – 13.5%
|
13 – 27%
|
19.5 – 40.5%
|
|
1.
|
Base pay is defined as base salary as of December 31 of plan year.
|
|
2.
|
Generally, Company performance factor(s) must meet or exceed threshold to initiate an award in the Plan. However, in the case of corporate performance below threshold, the Board of Directors has the discretion to create a pool equal to 3% of the base compensation of Category 2 and 3 plan participants for distribution to selected Category 2 and 3 participants based upon exceptional individual performance/contribution.
|
|
3.
|
Awards for performance above threshold but between defined points (threshold, target, maximum) will be interpolated.
|
|
4.
|
Performance above maximum level will be paid at maximum award level.
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 11 |
|
5.
|
The Board of Directors has the discretion to adjust incentive payments down by as much as 100% if it is determined that excessive risk has been taken. This can be done on an individual or overall basis, as appropriate.
|
|
6.
|
Net income is defined as net income after all expenses including the dividend paid on the preferred shares and the expense of the awards under this plan.
|
Category 3 |
COMPANY GOALS
|
Threshold (90% of Target)
|
Target
|
Maximum (120% of Target)
|
||||||||
$[redacted]*
|
$[redacted]*
|
$[redacted]*
|
COMPANY GOAL AWARD
(% of Base Pay)
|
Threshold
|
Target
|
Maximum
|
||||||||
7.5%
|
15%
|
22.5%
|
INDIVIDUAL PERFORMANCE FACTOR
|
+/- 50% of the award based on individual performance as determined by BOD
|
+/- 50% of the award based on individual performance as determined by BOD
|
+/- 50% of the award based on individual performance as determined by BOD
|
POTENTIAL AWARD RANGE
(% of Base Pay)
|
Threshold
|
Target
|
Maximum
|
||||||||
3.75 – 11.25%
|
7.5 – 22.5%
|
11.25 – 33.75%
|
|
1.
|
Base pay is defined as base salary as of December 31 of plan year.
|
|
2.
|
Generally, Company performance factor(s) must meet or exceed threshold to initiate an award in the Plan. However, in the case of corporate performance
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 12 |
|
below threshold, the Board of Directors has the discretion to create a pool equal to 3% of the base compensation of Category 2 and 3 plan participants for distribution to selected Category 2 and 3 participants based upon exceptional individual performance/contribution.
|
|
3.
|
Awards for performance above threshold but between defined points (threshold, target, maximum) will be interpolated.
|
|
4.
|
Performance above maximum level will be paid at maximum award level.
|
|
5.
|
The Board of Directors has the discretion to adjust incentive payments down by as much as 100% if it is determined that excessive risk has been taken. This can be done on an individual or overall basis, as appropriate.
|
|
6.
|
Net income is defined as net income after all expenses including the dividend paid on the preferred shares and the expense of the awards under this plan.
|
|
•
|
Clearly and specifically defined
|
|
•
|
Realistic
|
|
•
|
Measurable – includes language that quantifies or qualifies specific, observable, verifiable results and defines target levels of projected accomplishment – include quality, quantity, timeliness, cost-effectiveness. Numeric measures are ideal although descriptive measures, involving a description of satisfactory accomplishment, can be used if the goal cannot be measured with numbers.
|
|
•
|
Result in significant improvement in performance and/or productivity of the individual and/or organization
|
|
•
|
Detail the timeframe for accomplishing goals
|
|
•
|
Business Plan Goals must align with strategic goals, business plan goals and/or budget priorities.
|
|
•
|
Personal Development Goals should align with areas of personal development which will improve management effectiveness and leadership.
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 14 |
Goal:
What is to be accomplished
and how?
How does this goal link to
strategic goals or business plan goals? |
How will goal be
measured? |
How does this goal
represent a significant improvement in productivity or performance of the individual or the organization |
Timeframe/Deadlines
|
Business plan goals
|
|||
1.
|
|||
2.
|
|||
3.
|
|||
Personal development goal
|
|||
1.
|
CONFIDENTIAL TREATMENT REQUESTED
|
||
February 2012 | Page 15 |
1.
|
PeoplesBank, A Codorus Valley Company – 100% owned
|
|
(chartered in Pennsylvania)
|
||
105-109 Leader Heights Road
|
||
York, PA 17403
|
||
2.
|
SYC Realty Company, Inc. – 100% owned
|
|
(incorporated in Pennsylvania)
|
||
1 Manchester Street, P.O. Box 67
|
||
Glen Rock, Pennsylvania 17327
|
||
3.
|
CVLY Corp. – 100% owned
|
|
(incorporated in Pennsylvania)
|
||
105 Leader Heights Road
|
||
York, PA 17405
|
||
4.
|
CVB Statutory Trust I – 100% owned (1)
|
|
(formed in Delaware)
|
||
Trustee:
|
||
Wilmington Trust Company
|
||
Rodney Square North
|
||
1100 North Market Street
|
||
Wilmington, Delaware 19890
|
||
Attn: Corporate Trust Administration
|
||
5.
|
CVB Statutory Trust 2 – 100% owned (1)
|
|
(formed in Delaware)
|
||
Trustee:
|
||
Wells Fargo Bank, National Association
|
||
919 Market Street
|
||
Suite 700
|
||
Wilmington, Delaware 19801
|
||
Attn: Corporate Trust Division
|
||
(1)
|
The Statutory Trusts have not been consolidated into the financial statements of the Corporation in accordance with ASC Topic 810, “Consolidation”.
|
108
|
109
|
Consent of Independent Registered Public Accounting Firm
Codorus Valley Bancorp, Inc.
York, Pennsylvania
We hereby consent to the incorporation by reference in the Registration Statements on Forms S-3 (No. 333-46171, No. 333-179179, No. 333-157145, No. 333-195484, and No. 192474) and Forms S-8 (No. 333-40532, No. 333-68410, No. 333-143682, No. 333-143683, No. 333-182800, No. 333-182801, No. 333-09277 and No. 333-61851) of Codorus Valley Bancorp, Inc. of our report dated March 28, 2013, relating to the consolidated financial statements which appear in this Form 10-K.
/s/ Baker Tilly Virchow Krause, LLP
Allentown, Pennsylvania
March 10, 2015
110
|
Signature
|
|
Title
|
|
Date
|
|
||
/s/ Rodney L. Krebs
|
Chairman of the Board of
|
3/10/15
|
|||||
Rodney L. Krebs
|
Directors and Director
|
||||||
/s/ Larry J. Miller
|
President, Chief Executive Officer,
|
3/10/15
|
|||||
Larry J. Miller
|
Vice-Chairman of the Board of
|
||||||
(Principal Executive Officer)
|
Directors and Director
|
||||||
/s/ D. Reed Anderson
|
Director
|
3/10/15
|
|||||
D. Reed Anderson, Esq.
|
|||||||
/s/ Cynthia A. Dotzel
|
Director
|
3/10/15
|
|||||
Cynthia A. Dotzel, CPA
|
|||||||
/s/ Jeffrey R. Hines
|
Director
|
3/10/15
|
|||||
Jeffrey R Hines, P.E.
|
|||||||
/s/ MacGregor S. Jones
|
Director
|
3/10/15
|
|||||
MacGregor S. Jones
|
|||||||
|
Director
|
3/10/15
|
|||||
Dallas L. Smith
|
|||||||
/s/ Harry R. Swift
|
Director
|
3/10/15
|
|||||
Harry R. Swift, Esq.
|
|||||||
/s/ Michael D. Peduzzi
|
Treasurer and Assistant Secretary
|
3/10/15
|
|||||
Michael D. Peduzzi, CPA
|
|||||||
(Principal Financial and Accounting Officer)
|
111
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of the internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
|
Date:
|
March 10, 2015
|
/s/ Larry J. Miller
|
Larry J. Miller, Vice-Chairman,
|
||
President and Chief Executive Officer
|
112
|
|
4.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
5.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of the internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
|
Date:
|
March 10, 2015
|
/s/ Michael D. Peduzzi
|
|
Michael D. Peduzzi, CPA
|
|||
Treasurer and Assistant Secretary
|
113
|
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act; and
|
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: March 10, 2015
|
/s/ Larry J. Miller
|
|
Larry J. Miller
|
||
Vice-Chairman, President
|
||
and Chief Executive Officer
|
||
/s/ Michael D. Peduzzi
|
||
Michael D. Peduzzi, CPA
|
||
Treasurer and Assistant Secretary
|
114
|