x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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CB FINANCIAL SERVICES, INC.
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||
(Exact name of registrant as specified in its charter)
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Pennsylvania
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51-0534721
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification
Number)
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100 North Market Street, Carmichaels, Pennsylvania
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15320
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(Address of principal executive offices)
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(Zip Code)
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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, par value $0.4167 per share
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The Nasdaq Stock Market, LLC
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Large accelerated filer o | Accelerated filer o |
Non-accelerated filer o | Smaller reporting company x |
PART I
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PART II
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PART III
|
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PART IV
|
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·
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statements of our goals, intentions and expectations;
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·
|
statements regarding our business plans, prospects, growth and operating strategies;
|
·
|
statements regarding the asset quality of our loan and investment portfolios; and
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·
|
estimates of our risks and future costs and benefits.
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·
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our ability to manage our operations under the current economic conditions nationally and in our market area;
|
·
|
adverse changes in the financial industry, securities, credit and national local real estate markets (including real estate values);
|
·
|
significant increases in our loan losses, including as a result of our inability to resolve classified and nonperforming assets or reduce risks associated with our loans, and management’s assumptions in determining the adequacy of the allowance for loan losses;
|
·
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credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and in our allowance for loan losses and provision for loan losses;
|
·
|
competition among depository and other financial institutions;
|
·
|
our ability to successfully integrate the operations of businesses we have acquired;
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·
|
our success in increasing our commercial real estate and commercial business lending;
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·
|
our ability to attract and maintain deposits and our success in introducing new financial products;
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·
|
our ability to improve our asset quality even as we increase our commercial real estate and commercial business lending;
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·
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changes in interest rates generally, including changes in the relative differences between short-term and long-term interest rates and in deposit interest rates, that may affect our net interest margin and funding sources;
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·
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fluctuations in the demand for loans;
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·
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technological changes that may be more difficult or expensive than expected;
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·
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changes in consumer spending, borrowing and savings habits;
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·
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declines in the yield on our assets resulting from the current low interest rate environment;
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·
|
risks related to a high concentration of loans secured by real estate located in our market area;
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·
|
our ability to enter new markets successfully and capitalize on growth opportunities;
|
·
|
changes in laws or government regulations or policies affecting financial institutions, including the Dodd-Frank Act and the JOBS Act, which could result in, among other things, increased deposit insurance premiums and assessments, capital requirements, regulatory fees and compliance costs, particularly the new capital regulations, and the resources we have available to address such changes;
|
·
|
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;
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·
|
changes in our compensation and benefit plans, and our ability to retain key members of our senior management team and to address staffing needs in response to product demand or to implement our strategic plans;
|
·
|
loan delinquencies and changes in the underlying cash flows of our borrowers;
|
·
|
our ability to control costs and expenses, particularly those associated with operating as a publicly traded company;
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·
|
the failure or security breaches of computer systems on which we depend;
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·
|
the ability of key third-party service providers to perform their obligations to us; and
|
·
|
other economic, competitive, governmental, regulatory and operational factors affecting our operations, pricing, products and services described elsewhere in this prospectus.
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(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Real Estate
|
Commercial
|
|||||||||||||||||||||||||||||||
Residential
|
Commercial
|
Construction
|
and Industrial
|
|||||||||||||||||||||||||||||
Due During the Years
Ending December 31,
|
Amount
|
Weighted
Average
|
Amount
|
Weighted
Average
|
Amount
|
Weighted
Average
|
Amount
|
Weighted
Average
|
||||||||||||||||||||||||
2015
|
$ | 425 | 4.19 | % | $ | 2,136 | 5.66 | % | $ | 1,358 | 4.11 | % | $ | 5,159 | 3.74 | % | ||||||||||||||||
2016
|
1,383 | 4.52 | 4,759 | 4.80 | 4,271 | 4.00 | 4,253 | 3.52 | ||||||||||||||||||||||||
2017
|
1,019 | 4.71 | 4,813 | 5.53 | 2,278 | 3.87 | 5,303 | 4.10 | ||||||||||||||||||||||||
2018 to 2019
|
5,906 | 4.74 | 7,329 | 4.75 | 3,514 | 2.87 | 24,893 | 4.05 | ||||||||||||||||||||||||
2020 to 2024
|
32,301 | 4.14 | 68,247 | 4.22 | 3,940 | 4.31 | 14,054 | 4.03 | ||||||||||||||||||||||||
2025 to 2029
|
67,667 | 4.14 | 50,868 | 4.45 | 102 | 5.56 | 1,985 | 4.16 | ||||||||||||||||||||||||
2030 and Beyond
|
223,172 | 4.44 | 36,113 | 4.42 | 6,734 | 4.15 | 16,417 | 3.19 | ||||||||||||||||||||||||
Total
|
$ | 331,873 | 4.36 | $ | 174,265 | 4.42 | $ | 22,197 | 3.92 | $ | 72,064 | 3.80 |
Consumer
|
Other
|
Total
|
|||||||||||||||||||||||
Due During the Years
Ending December 31,
|
Amount
|
Weighted
Average
|
Amount
|
Weighted
Average
|
Amount
|
Weighted
Average
|
|||||||||||||||||||
2015
|
$ | 919 | 5.94 | % | $ | 203 | 2.75 | % | $ | 10,200 | 4.43 | % | |||||||||||||
2016
|
4,104 | 4.61 | 3 | 5.25 | 18,773 | 4.27 | |||||||||||||||||||
2017
|
10,401 | 4.08 | 17 | 5.31 | 23,831 | 4.41 | |||||||||||||||||||
2018 to 2019
|
29,490 | 3.88 | 440 | 4.11 | 71,572 | 4.08 | |||||||||||||||||||
2020 to 2024
|
26,127 | 5.36 | 4,085 | 4.02 | 148,754 | 4.39 | |||||||||||||||||||
2025 to 2029
|
369 | 4.59 | 2,248 | 4.26 | 123,239 | 4.29 | |||||||||||||||||||
2030 and Beyond
|
6,201 | 5.10 | 640 | 4.01 | 289,277 | 4.36 | |||||||||||||||||||
Total
|
$ | 77,611 | 4.58 | $ | 7,636 | 4.10 | $ | 685,646 | 4.33 |
(Dollars in thousands)
|
||||||||||||
Due After December 31, 2015
|
||||||||||||
Fixed
|
Adjustable
|
Total
|
||||||||||
Real Estate:
|
||||||||||||
Residential
|
$ | 301,300 | $ | 30,148 | $ | 331,448 | ||||||
Commercial
|
38,592 | 133,537 | 172,129 | |||||||||
Construction
|
12,073 | 8,766 | 20,839 | |||||||||
Commercial and Industrial
|
30,851 | 36,054 | 66,905 | |||||||||
Consumer
|
71,606 | 5,086 | 76,692 | |||||||||
Other
|
4,138 | 3,295 | 7,433 | |||||||||
Total loans
|
$ | 458,560 | $ | 216,886 | $ | 675,446 |
(Dollars in Thousands)
|
||||||||||||||||||||
December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Residential
|
$ | 1,543 | $ | 339 | $ | 1,509 | $ | 497 | $ | 367 | ||||||||||
Commercial
|
1,065 | 2,665 | 2,669 | 3,526 | 180 | |||||||||||||||
Construction
|
344 | 365 | 365 | 407 | 412 | |||||||||||||||
Commercial and Industrial
|
4 | - | 406 | 924 | 924 | |||||||||||||||
Consumer
|
- | 17 | 36 | 71 | 49 | |||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||
Nonaccrual troubled debt restructurings
|
274 | - | 503 | - | - | |||||||||||||||
Total non-accrual loans
|
3,230 | 3,386 | 5,488 | 5,425 | 1,932 | |||||||||||||||
Accruing loans past due 90 days or more:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Residential
|
369 | - | - | - | - | |||||||||||||||
Commercial
|
- | - | - | 70 | - | |||||||||||||||
Construction
|
- | - | - | - | - | |||||||||||||||
Commercial and Industrial
|
- | - | - | - | - | |||||||||||||||
Consumer
|
10 | - | - | - | - | |||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||
Total accruing loans 90 days or more past due
|
379 | - | - | 70 | - | |||||||||||||||
Total non-accrual loans and accruing loans 90 days or more past due
|
3,609 | 3,386 | 5,488 | 5,495 | 1,932 | |||||||||||||||
Troubled debt restructurings, accruing
|
3,693 | 543 | 293 | - | - | |||||||||||||||
Total nonperforming loans
|
7,302 | 3,929 | 5,781 | 5,495 | 1,932 | |||||||||||||||
Real estate owned:
|
||||||||||||||||||||
Residential
|
104 | 82 | 629 | 261 | 57 | |||||||||||||||
Commercial
|
- | 54 | 75 | - | 254 | |||||||||||||||
Other
|
174 | 174 | 224 | 400 | 400 | |||||||||||||||
Total real estate owned
|
278 | 310 | 928 | 661 | 711 | |||||||||||||||
Other non-performing assets
|
- | - | - | - | - | |||||||||||||||
Total nonperforming assets
|
$ | 7,580 | $ | 4,239 | $ | 6,709 | $ | 6,156 | $ | 2,643 | ||||||||||
Nonperforming loans to total loans
|
1.06 | % | 1.04 | % | 1.66 | % | 1.61 | % | 0.61 | % | ||||||||||
Nonperforming assets to total assets
|
0.90 | 0.78 | 1.23 | 1.15 | 0.53 |
(Dollars in thousands)
|
||||||||
December 31,
|
||||||||
2014
|
2013
|
|||||||
Special mention
|
$ | 17,876 | $ | 17,914 | ||||
Substandard
|
9,394 | 956 | ||||||
Doubtful
|
1,357 | 6,617 | ||||||
Loss
|
- | - | ||||||
Total special mention and classified loans
|
$ | 28,627 | $ | 25,487 |
|
·
|
changes in lending policies and procedures, including underwriting standards and collection practices;
|
|
·
|
changes in national and local economic and business conditions and developments, including the condition of various market segments;
|
|
·
|
changes in the nature and volume of the loan portfolio;
|
|
·
|
changes in the experience, ability and depth of management and the lending staff;
|
|
·
|
changes in the trend of the volume and severity of the past due, nonaccrual, and classified loans;
|
|
·
|
changes in the quality of our loan review system and the degree of oversight by the board of directors;
|
|
·
|
the existence of any concentrations of credit, and changes in the level of such concentrations; and
|
|
·
|
the effect of external factors, such as competition and legal and regulatory requirements on the level of estimated credit losses in our current portfolio.
|
(Dollars in Thousands)
|
||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Balance at Beginning of Year
|
$ | 5,382 | $ | 5,904 | $ | 5,879 | $ | 5,261 | $ | 4,185 | ||||||||||
Provision for loan losses
|
- | 100 | 450 | 975 | 1,650 | |||||||||||||||
Charge-offs:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Residential
|
(39 | ) | (181 | ) | (71 | ) | (120 | ) | (60 | ) | ||||||||||
Commercial
|
- | (555 | ) | (103 | ) | (4 | ) | (22 | ) | |||||||||||
Construction
|
(38 | ) | - | - | - | - | ||||||||||||||
Commercial and Industrial
|
- | (109 | ) | (255 | ) | (99 | ) | (438 | ) | |||||||||||
Consumer
|
(195 | ) | (96 | ) | (167 | ) | (172 | ) | (193 | ) | ||||||||||
Other
|
- | - | - | (186 | ) | - | ||||||||||||||
Total Charge-offs
|
(272 | ) | (941 | ) | (596 | ) | (581 | ) | (713 | ) | ||||||||||
Recoveries:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Residential
|
2 | 86 | 49 | 7 | 17 | |||||||||||||||
Commercial
|
- | 69 | - | 5 | - | |||||||||||||||
Construction
|
- | - | - | - | - | |||||||||||||||
Commercial and Industrial
|
5 | 68 | 50 | 146 | 40 | |||||||||||||||
Consumer
|
78 | 96 | 72 | 66 | 82 | |||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||
Total Recoveries
|
85 | 319 | 171 | 224 | 139 | |||||||||||||||
Net charge-offs
|
(187 | ) | (622 | ) | (425 | ) | (357 | ) | (574 | ) | ||||||||||
Balance at end of year
|
$ | 5,195 | $ | 5,382 | $ | 5,904 | $ | 5,879 | $ | 5,261 | ||||||||||
Allowance for loan losses to nonperforming loans
|
71.14 | % | 136.98 | % | 102.13 | % | 106.99 | % | 272.31 | % | ||||||||||
Allowance for loan losses to total loans
|
0.76 | 1.42 | 1.70 | 1.73 | 1.67 | |||||||||||||||
Net charge-offs to average loans
|
0.04 | 0.17 | 0.12 | 0.11 | 0.19 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent of
Total
|
Amount
|
Percent of
Total
|
Amount
|
Percent of
Total
|
Amount
|
Percent of
Total
|
Amount
|
Percent of
Total
|
|||||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||||||||||
Residential
|
$ | 2,690 | 48.5 | % | $ | 1,481 | 43.3 | % | $ | 2,215 | 41.8 | % | $ | 902 | 38.9 | % | $ | 822 | 38.3 | % | ||||||||||||||||||||
Commercial
|
582 | 25.4 | 1,703 | 25.2 | 2,051 | 27.5 | 3,271 | 29.2 | 2,074 | 28.9 | ||||||||||||||||||||||||||||||
Construction
|
122 | 3.2 | 355 | 2.7 | 326 | 3.1 | 436 | 3.3 | 547 | 3.1 | ||||||||||||||||||||||||||||||
Commercial and Industrial
|
684 | 10.5 | 1,013 | 11.0 | 1,043 | 11.2 | 983 | 11.8 | 1,369 | 10.5 | ||||||||||||||||||||||||||||||
Consumer
|
1,015 | 11.3 | 592 | 15.6 | 320 | 15.5 | 287 | 15.9 | 423 | 17.5 | ||||||||||||||||||||||||||||||
Other
|
- | 1.1 | - | 2.2 | - | 0.9 | - | 0.9 | - | 1.7 | ||||||||||||||||||||||||||||||
Total Allocated Allowance
|
5,093 | 100.0 | 5,144 | 100.0 | 5,955 | 100.0 | 5,879 | 100.0 | 5,235 | 100.0 | ||||||||||||||||||||||||||||||
Unallocated
|
102 | - | 238 | - | (51 | ) | - | - | - | 26 | - | |||||||||||||||||||||||||||||
Total Allowance
for Loan Losses
|
$ | 5,195 | 100.0 | % | $ | 5,382 | 100.0 | % | $ | 5,904 | 100.0 | % | $ | 5,879 | 100.0 | % | $ | 5,261 | 100.0 | % |
(1)
|
Represents percentage of loans in each category to total loans
|
(dollars in thousands)
|
||||||||||||||||||||||||
December 31,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||
U.S. Government Agencies
|
$ | 57,669 | $ | 57,651 | $ | 77,559 | $ | 76,294 | $ | 106,034 | $ | 106,178 | ||||||||||||
Obligations of States and Political Subdivisions
|
41,611 | 42,381 | 50,481 | 50,502 | 45,592 | 47,199 | ||||||||||||||||||
Mortgage-Backed Securities -
Government-Sponsored Enterprises
|
4,240 | 4,273 | 5,916 | 5,926 | 1,342 | 1,419 | ||||||||||||||||||
Equity Securities - Mutual Funds
|
500 | 514 | 500 | 535 | 500 | 535 | ||||||||||||||||||
Equity Securities - Other
|
573 | 630 | 510 | 553 | - | - | ||||||||||||||||||
Total securities available-for-sale
|
$ | 104,593 | $ | 105,449 | $ | 134,966 | $ | 133,810 | $ | 153,468 | $ | 155,331 |
December 31,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||
Obligations of States and Political Subdivisions
|
$ | 504 | $ | 504 | $ | 1,006 | $ | 1,009 | $ | 2,032 | $ | 2,068 | ||||||||||||
Total securities held-to-maturity
|
$ | 504 | $ | 504 | $ | 1,006 | $ | 1,009 | $ | 2,032 | $ | 2,068 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
More than One Year
|
More Than Five Years
|
|||||||||||||||||||||||||||||||||||||||
One Year or Less
|
Through Five Years
|
Through Ten Years
|
More Than Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Carrying
Value
|
Weighted
Average
|
Carrying
Value
|
Weighted
Average
|
Carrying
Value
|
Weighted
Average
|
Carrying
Value
|
Weighted
Average
|
Carrying
Value
|
Weighted
Average
|
|||||||||||||||||||||||||||||||
U.S. Government Agencies
|
$ | - | - | % | $ | 24,029 | 1.35 | % | $ | 29,517 | 1.81 | % | $ | 4,105 | 0.93 | % | $ | 57,651 | 1.56 | % | ||||||||||||||||||||
Obligations of States and
Political Subdivisions
|
3,865 | 4.86 | 6,306 | 2.10 | 17,123 | 2.63 | 15,087 | 2.95 | 42,381 | 2.87 | ||||||||||||||||||||||||||||||
Mortgage-Backed Securities -
Government-Sponsored
Enterprises
|
- | - | - | - | 4,273 | 1.81 | - | - | 4,273 | 1.81 | ||||||||||||||||||||||||||||||
Equity Securities -
Mutual Funds
|
- | - | - | - | - | - | 514 | 2.21 | 514 | 2.21 | ||||||||||||||||||||||||||||||
Equity Securities - Other
|
- | - | - | - | - | - | 630 | 4.48 | 630 | 4.48 | ||||||||||||||||||||||||||||||
Total available-for-
sale securities
|
$ | 3,865 | 4.86 | $ | 30,335 | 1.50 | $ | 50,913 | 2.09 | $ | 20,336 | 2.56 | $ | 105,449 | 2.11 |
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Percent
|
Weighted
Average
Rate
|
Average
Balance
|
Percent
|
Weighted
Average
Rate
|
Average
Balance
|
Percent
|
Weighted
Average
Rate
|
||||||||||||||||||||||||||||
Non-Interest Bearing
Demand Deposits
|
$ | 133,888 | 25.7 | % | - | % | $ | 113,755 | 24.5 | % | - | % | $ | 98,591 | 21.7 | % | - | % | ||||||||||||||||||
NOW Accounts
|
77,713 | 14.9 | 0.19 | 76,573 | 16.5 | 0.22 | 74,195 | 16.3 | 0.33 | |||||||||||||||||||||||||||
Savings Accounts
|
94,856 | 18.2 | 0.18 | 78,699 | 16.9 | 0.20 | 71,264 | 15.7 | 0.28 | |||||||||||||||||||||||||||
Money Market Accounts
|
115,585 | 22.1 | 0.26 | 107,572 | 23.1 | 0.28 | 116,224 | 25.7 | 0.35 | |||||||||||||||||||||||||||
Time Deposits
|
99,920 | 19.1 | 1.20 | 88,402 | 19.0 | 1.51 | 93,592 | 20.6 | 1.92 | |||||||||||||||||||||||||||
Total Deposits
|
$ | 521,962 | 100.0 | % | 0.35 | $ | 465,001 | 100.0 | % | 0.42 | $ | 453,866 | 100.0 | % | 0.58 |
(Dollars in thousands)
|
||||||||||||
December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Interest Rate Range:
|
||||||||||||
Less than 0.25%
|
$ | 31,231 | $ | 16,141 | $ | 10,393 | ||||||
0.25% to 0.50%
|
27,531 | 7,911 | 10,126 | |||||||||
0.51% to 1.00%
|
21,055 | 15,219 | 10,373 | |||||||||
1.01% to 2.00%
|
39,487 | 23,315 | 24,077 | |||||||||
2.01% to 3.00%
|
24,454 | 12,742 | 18,687 | |||||||||
3.01% to 4.00%
|
3,767 | 8,355 | 9,330 | |||||||||
4.01% or greater
|
4,069 | 987 | 3,567 | |||||||||
Total Time Deposits
|
$ | 151,594 | $ | 84,670 | $ | 86,553 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||||||||||
Period to Maturity
|
||||||||||||||||||||||||||||||||
Less Than
Or Equal to
|
More Than
One to
|
More Than
Two to
|
More Than
Three to
|
More Than
Four to
|
More Than
Five Years
|
Total
|
Percent
of
|
|||||||||||||||||||||||||
Interest Rate Range:
|
||||||||||||||||||||||||||||||||
Less than 0.25%
|
$ | 22,830 | $ | 6,891 | $ | 4 | $ | 1,506 | $ | - | $ | - | $ | 31,231 | 20.6 | % | ||||||||||||||||
0.25% to 0.50%
|
9,602 | 16,704 | 1,225 | - | - | - | 27,531 | 18.2 | ||||||||||||||||||||||||
0.51% to 1.00%
|
8,909 | 6,729 | 4,356 | 767 | 285 | 9 | 21,055 | 13.9 | ||||||||||||||||||||||||
1.01% to 2.00%
|
1,512 | 7,268 | 5,553 | 7,316 | 8,720 | 9,118 | 39,487 | 26.0 | ||||||||||||||||||||||||
2.01% to 3.00%
|
7,418 | 5,041 | 1,799 | 5,096 | 496 | 4,604 | 24,454 | 16.1 | ||||||||||||||||||||||||
3.01% to 4.00%
|
2,053 | - | 1,038 | 375 | 290 | 11 | 3,767 | 2.5 | ||||||||||||||||||||||||
4.01% or greater
|
1,861 | 1,046 | 762 | 400 | - | - | 4,069 | 2.7 | ||||||||||||||||||||||||
Total
|
$ | 54,185 | $ | 43,679 | $ | 14,737 | $ | 15,460 | $ | 9,791 | $ | 13,742 | $ | 151,594 | 100.0 | % |
(Dollars in Thousands)
|
||||
December 31, 2014
|
||||
Three Months or Less
|
$ | 4,919 | ||
Over Three Months to Six Months
|
6,962 | |||
Over Six Months to One Year
|
8,335 | |||
Over One Year to Three Years
|
24,928 | |||
Over Three Years
|
16,828 | |||
Total
|
$ | 61,972 |
(Dollars in thousands)
|
||||||||||||
At or For the Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Balance at End of Period
|
$ | 40,936 | $ | 4,000 | $ | 7,000 | ||||||
Average Balance Outstanding During the Period
|
9,440 | 5,915 | 9,647 | |||||||||
Maximum Amount Outstanding at any Month End
|
40,936 | 7,000 | 11,461 | |||||||||
Weighted Average Interest Rate at End of Period
|
1.59 | % | 3.27 | % | 3.63 | % | ||||||
Average Interest Rate During the Period
|
1.46 | 3.54 | 3.75 |
(Dollars in thousands)
|
||||||||||||
At or For the Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Balance at End of Period
|
$ | 20,884 | $ | 15,384 | $ | 23,374 | ||||||
Average Balance Outstanding During the Period
|
17,525 | 21,035 | 28,124 | |||||||||
Maximum Amount Outstanding at any Month End
|
25,893 | 25,683 | 34,740 | |||||||||
Weighted Average Interest Rate at End of Period
|
0.17 | % | 0.25 | % | 0.27 | % | ||||||
Average Interest Rate During the Period
|
0.26 | 0.27 | 0.30 |
|
·
|
be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and
|
|
·
|
not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of Community Bank’s capital.
|
|
·
|
Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
|
·
|
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
|
|
·
|
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
|
|
·
|
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
|
|
·
|
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
|
|
·
|
Truth in Savings Act; and
|
|
·
|
Rules and regulations of the various federal and state agencies charged with the responsibility of implementing such laws.
|
|
·
|
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;
|
|
·
|
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services;
|
|
·
|
Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check;
|
|
·
|
The USA PATRIOT Act, which requires banks operating to, among other things, establish broadened anti-money laundering compliance programs, due diligence policies and controls to ensure the detection and reporting of money laundering. Such required compliance programs are intended to supplement existing compliance requirements, also applicable to financial institutions, under the Bank Secrecy Act and the Office of Foreign Assets Control regulations; and
|
|
·
|
The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution’s privacy policy and provide such customers the opportunity to “opt out” of the sharing of certain personal financial information with unaffiliated third parties.
|
·
|
excessive upfront points and fees (those exceeding 3% of the total loan amount, less “bona fide discount points” for prime loans);
|
·
|
interest-only payments;
|
·
|
negative-amortization; and
|
·
|
terms of longer than 30 years.
|
(Dollars In Thousands)
|
||||||||
Location
|
Year
Occupied or
|
Owned
or
|
Approximate
Square
|
Net Book
Value at
|
||||
Main Office:
|
||||||||
100 North Market Street
|
||||||||
Carmichaels, PA 15320
|
1901
|
Owned
|
12,500
|
$ 702
|
||||
Branch Offices (Greene County):
|
||||||||
30 West Greene Street
|
||||||||
Waynesburg, PA 15370
|
1980
|
Owned
|
2,800
|
303
|
||||
100 Miller Lane
|
Building owned
|
|||||||
Waynesburg, PA 15370
|
1983
|
Ground lease
|
7,500
|
243
|
||||
3241 W. Roy Furman Highway
|
||||||||
Rogersville, PA 15359
|
1987
|
Owned
|
720
|
147
|
||||
1993 S. Eighty Eight Road
|
Included
|
|||||||
Greensboro, PA 15338
|
1963
|
Owned
|
500
|
with main office
|
||||
Operations Center (Greene County):
|
||||||||
200 Greene Plaza
|
||||||||
Waynesburg, PA 15370
|
2012
|
Leased
|
8,450
|
855
|
||||
Branch Office (Allegheny County):
|
||||||||
714 Brookline Boulevard
|
||||||||
Pittsburgh, PA 15226
|
2004
|
Owned
|
244
|
253
|
||||
Branch Offices (Washington County)
|
||||||||
65 West Chestnut Street
|
Building owned
|
|||||||
Washington, PA 15301
|
2009
|
Ground lease
|
1,494
|
832
|
||||
Waterdam Centre
|
||||||||
4139 Washington Road
|
||||||||
McMurray, PA 15317
|
1994
|
Leased
|
2,800
|
160
|
||||
200 Main Street
|
||||||||
Claysville, PA 15232
|
1996
|
Owned
|
8,400
|
672
|
||||
351 Oak Spring Road
|
||||||||
Washington, PA 15301
|
2000
|
Leased
|
610
|
72
|
||||
Southpointe Commons
|
||||||||
325 Southpointe Boulevard, Ste. 100
|
||||||||
Canonsburg, PA 15317
|
2000
|
Leased
|
1,811
|
209
|
||||
235 West Main Street
|
||||||||
Monongahela, PA 15063
|
2014
|
Owned
|
6,323
|
1,425
|
||||
Washington Business Center:
|
||||||||
90 West Chestnut Street, Ste 100
|
||||||||
Washington, PA 15301
|
1987
|
Leased
|
6,815
|
222
|
||||
Branch Offices (Fayette County):
|
||||||||
545 West Main Street
|
Building owned
|
|||||||
Uniontown, PA 15401
|
2014
|
Ground lease
|
4,160
|
895
|
||||
101 Independence Street
|
||||||||
Perryopolis, PA 15473
|
2014
|
Owned
|
1,992
|
303
|
||||
Branch Offices (Westmoreland County):
|
||||||||
565 Donner Avenue
|
||||||||
Monessen, PA 15062
|
2014
|
Owned
|
18,055
|
1,997
|
||||
1670 Broad Avenue
|
||||||||
Belle Vernon, PA 15012
|
2014
|
Owned
|
5,048
|
1,145
|
||||
Exchange Underwriters
|
||||||||
121-123 West Pike Street
|
||||||||
Canonsburg, PA 15317
|
2014
|
Owned and Leased
|
4,720
|
158
|
2014
|
2013
|
|||||||||||||||||||||||
Quarter Ended:
|
High
|
Low
|
Dividend
|
High
|
Low
|
Dividend
|
||||||||||||||||||
March 31
|
$ | 21.00 | $ | 19.75 | $ | 0.21 | $ | 22.00 | $ | 19.00 | $ | 0.21 | ||||||||||||
June 30
|
20.75 | 19.50 | 0.21 | 20.35 | 18.50 | 0.21 | ||||||||||||||||||
September 30
|
20.00 | 19.25 | 0.21 | 22.00 | 18.90 | 0.21 | ||||||||||||||||||
December 31
|
20.50 | 19.25 | 0.21 | 19.91 | 19.45 | 0.21 |
(Dollars in Thousands)
|
||||||||||||||||||||
December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Selected Financial Condition Data:
|
||||||||||||||||||||
Total Assets
|
$ | 846,314 | $ | 546,486 | $ | 546,753 | $ | 533,635 | $ | 497,260 | ||||||||||
Cash and Due From Banks
|
11,751 | 16,417 | 25,295 | 42,462 | 32,351 | |||||||||||||||
Investment Securities Available-for-Sale
|
105,449 | 133,810 | 155,331 | 132,465 | 131,018 | |||||||||||||||
Investment Securities Held-to-Maturity
|
504 | 1,006 | 2,032 | 3,286 | 2,880 | |||||||||||||||
Loans, Net
|
680,451 | 373,764 | 342,226 | 334,378 | 309,152 | |||||||||||||||
Deposits
|
697,494 | 480,335 | 470,148 | 450,140 | 406,736 | |||||||||||||||
Short-Term Borrowings
|
46,684 | 15,384 | 23,374 | 28,018 | 34,189 | |||||||||||||||
Other Borrowings
|
15,136 | 4,000 | 7,000 | 11,461 | 15,955 | |||||||||||||||
Total Stockholders’ Equity
|
81,912 | 45,005 | 44,470 | 42,092 | 38,551 |
(Dollars in Thousands)
|
||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Selected Operating Data:
|
||||||||||||||||||||
Interest and Dividend Income
|
$ | 20,841 | $ | 17,905 | $ | 18,549 | $ | 19,964 | $ | 21,343 | ||||||||||
Interest Expense
|
1,960 | 2,236 | 3,093 | 4,492 | 5,575 | |||||||||||||||
Net Interest Income
|
18,881 | 15,669 | 15,456 | 15,472 | 15,768 | |||||||||||||||
Provision for Loan Losses
|
- | 100 | 450 | 975 | 1,650 | |||||||||||||||
Net Interest Income After Provision for Loan Losses
|
18,881 | 15,569 | 15,006 | 14,497 | 14,118 | |||||||||||||||
Noninterest Income
|
3,818 | 3,205 | 3,533 | 3,180 | 3,270 | |||||||||||||||
Noninterest Expense - Merger-Related
|
1,979 | - | - | - | - | |||||||||||||||
Noninterest Expense
|
14,819 | 13,358 | 13,287 | 12,386 | 12,368 | |||||||||||||||
Income Before Income Taxes
|
5,901 | 5,416 | 5,252 | 5,291 | 5,020 | |||||||||||||||
Income Taxes
|
1,609 | 1,160 | 1,035 | 894 | 845 | |||||||||||||||
Net Income
|
$ | 4,292 | $ | 4,256 | $ | 4,217 | $ | 4,397 | $ | 4,175 |
Years Ended December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on Average Assets
|
0.72 | % | 0.79 | % | 0.78 | % | 0.88 | % | 0.88 | % | ||||||||||
Return on Average Equity
|
8.60 | 9.43 | 9.60 | 10.79 | 10.85 | |||||||||||||||
Interest Rate Spread
(1)(3)
|
3.34 | 3.08 | 3.09 | 3.36 | 3.44 | |||||||||||||||
Net Interest Margin
(2)(3)
|
3.47 | 3.23 | 3.27 | 3.61 | 3.88 | |||||||||||||||
Noninterest Expense to Average Assets
|
2.81 | 2.47 | 2.47 | 2.49 | 2.61 | |||||||||||||||
Efficiency Ratio
(4)
|
74.00 | 70.77 | 69.97 | 66.41 | 64.96 | |||||||||||||||
Dividend Payout Ratio
(5)
|
0.52 | 0.49 | 0.49 | 0.46 | 0.46 | |||||||||||||||
Average Interest-Earning Assets to
Average Interest-Bearing Liabilities
|
137.33 | 134.56 | 128.92 | 125.25 | 133.74 | |||||||||||||||
Average Equity to Average Assets
|
8.36 | 8.37 | 8.16 | 8.20 | 7.67 | |||||||||||||||
Capital Ratios:
|
||||||||||||||||||||
Total Capital to Risk-Weighted Assets
(6)
|
12.50 | % | 12.98 | % | 13.13 | % | 12.86 | % | 12.48 | % | ||||||||||
Tier 1 Capital to Risk-Weighted Assets
(6)
|
11.63 | 11.73 | 11.87 | 11.60 | 11.22 | |||||||||||||||
Tier 1 Capital to Average Assets
(6)
|
9.33 | 7.70 | 7.33 | 7.31 | 7.17 | |||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Allowance for Loan Losses to Total Loans
|
0.76 | % | 1.42 | % | 1.70 | % | 1.73 | % | 1.67 | % | ||||||||||
Allowance for Loan Losses to Nonperforming Loans
|
71.14 | 136.98 | 102.13 | 106.99 | 272.31 | |||||||||||||||
Net Charge-Offs to Average Loans
|
0.04 | 0.17 | 0.12 | 0.11 | 0.19 | |||||||||||||||
Nonperforming Loans to Total Loans
|
1.06 | 1.04 | 1.66 | 1.61 | 0.61 | |||||||||||||||
Nonperforming Loans to Total Assets
|
0.86 | 0.72 | 1.06 | 1.03 | 0.39 | |||||||||||||||
Nonperforming Assets to Total Assets
|
0.90 | 0.78 | 1.23 | 1.15 | 0.53 | |||||||||||||||
Other:
|
||||||||||||||||||||
Number of Offices
|
16 | 11 | 11 | 11 | 11 | |||||||||||||||
Number of Full-Time Equivalent Employees
|
189 | 125 | 130 | 128 | 131 |
(1)
|
Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities.
|
(2)
|
Represents net interest income as a percentage of average interest-earning assets.
|
(3)
|
Tax-equivalent yield adjustments have been made for tax exempt loan and securities income utilizing a marginal federal tax rate of 34%.
|
(4)
|
Represents noninterest expense divided by the sum of net interest income and noninterest income.
|
(5)
|
Represents dividends declared per share divided by net income per share.
|
(6)
|
Capital ratios are for Community Bank only.
|
|
·
|
Improve earnings through asset diversification
. Historically, we have emphasized the origination of residential mortgage loans secured by homes in our market area. However, loan diversification improves our earnings because commercial real estate and commercial and industrial loans generally have higher interest rates than residential mortgage loans. Another benefit of commercial lending is that it improves the sensitivity of our interest-earning assets because commercial loans typically have shorter terms than residential mortgage loans and frequently have variable interest rates.
|
|
·
|
Use sound underwriting practices to maintain asset quality
. We have sought to maintain a high level of asset quality and moderate credit risk by using underwriting standards that we believe are conservative. Although we intend to continue our efforts to originate commercial real estate and commercial and industrial loans, we intend to continue our philosophy of managing loan exposures through our conservative approach to lending.
|
|
·
|
Improve our funding mix by marketing core deposits
. Core deposits (demand deposits, money market accounts and savings accounts) comprised 78.0% of our total deposits at December 31, 2014. We value core deposits because they represent longer-term customer relationships and a lower cost of funding compared to certificates of deposit. We have succeeded in growing core deposits by promoting a sales culture in our branch offices that is supported by the use of technology and by offering a variety of products for our business customers, such as sweep and insured money sweep services, remote electronic deposit, online banking with bill pay, mobile banking, and automated clearinghouse.
|
|
·
|
Supplement fee income through our insurance operations
. Fee income earned through our insurance agency, Exchange Underwriters, supplements our income from banking operations. We intend to pursue opportunities to grow this line of business, including hiring insurance producers with established books of business and through acquisitions.
|
·
|
Level 1—Quoted prices in active markets for identical assets or liabilities; includes certain U.S. Treasury and other U.S. Government agency debt that is highly liquid and actively traded in over-the-counter markets.
|
·
|
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
·
|
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||||||||||||||
|
Average
Balance
|
Interest
and
|
Yield/
Cost
|
Average
Balance
|
Interest
and
|
Yield/
Cost
|
Average
Balance
|
Interest
and
|
Yield/
Cost
|
|||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||||||||||||||
Loans
|
$ | 433,668 | $ | 18,589 | 4.29 | % | $ | 358,215 | $ | 15,594 | 4.35 | % | $ | 340,231 | $ | 16,122 | 4.74 | % | ||||||||||||||||||
Investment Securities
|
||||||||||||||||||||||||||||||||||||
Taxable
|
67,512 | 862 | 1.28 | 91,934 | 843 | 0.92 | 95,342 | 906 | 0.95 | |||||||||||||||||||||||||||
Tax Exempt
|
47,184 | 1,978 | 4.19 | 50,078 | 2,219 | 4.43 | 52,576 | 2,598 | 4.94 | |||||||||||||||||||||||||||
Other Interest-Earning Assets
|
16,637 | 138 | 0.83 | 9,562 | 42 | 0.44 | 18,673 | 53 | 0.28 | |||||||||||||||||||||||||||
Total Interest-Earning Assets
|
565,001 | 21,567 | 3.82 | 509,789 | 18,698 | 3.67 | 506,822 | 19,679 | 3.88 | |||||||||||||||||||||||||||
Noninterest-Earning Assets
|
32,115 | 29,225 | 31,713 | |||||||||||||||||||||||||||||||||
Total Assets
|
$ | 597,116 | $ | 539,014 | $ | 538,535 | ||||||||||||||||||||||||||||||
Liabilities and
Stockholders' equity:
|
||||||||||||||||||||||||||||||||||||
Interest-Bearing Liablities:
|
||||||||||||||||||||||||||||||||||||
Interest-Bearing Demand Deposits
|
$ | 77,713 | 147 | 0.19 | % | $ | 76,573 | 170 | 0.22 | % | $ | 74,195 | 247 | 0.33 | % | |||||||||||||||||||||
Savings
|
94,856 | 175 | 0.18 | 78,699 | 158 | 0.20 | 71,264 | 203 | 0.28 | |||||||||||||||||||||||||||
Money Market
|
115,585 | 303 | 0.26 | 107,572 | 302 | 0.28 | 116,224 | 401 | 0.35 | |||||||||||||||||||||||||||
Time Deposits
|
95,920 | 1,150 | 1.20 | 88,402 | 1,338 | 1.51 | 93,592 | 1,795 | 1.92 | |||||||||||||||||||||||||||
Total Interest-Bearing Deposits
|
384,074 | 1,775 | 0.46 | 351,246 | 1,968 | 0.56 | 355,275 | 2,646 | 0.74 | |||||||||||||||||||||||||||
Borrowings
|
27,340 | 185 | 0.68 | 27,622 | 268 | 0.97 | 37,842 | 447 | 1.18 | |||||||||||||||||||||||||||
Total Interest-Bearing Liabilities
|
411,414 | 1,960 | 0.48 | 378,868 | 2,236 | 0.59 | 393,117 | 3,093 | 0.79 | |||||||||||||||||||||||||||
Noninterest-Bearing Liabilities
|
135,786 | 115,004 | 101,492 | |||||||||||||||||||||||||||||||||
Total Liabilities
|
547,200 | 493,872 | 494,609 | |||||||||||||||||||||||||||||||||
Stockholders' Equity
|
49,916 | 45,142 | 43,926 | |||||||||||||||||||||||||||||||||
Total Liabilities and
Stockholders' Equity
|
$ | 597,116 | $ | 539,014 | $ | 538,535 | ||||||||||||||||||||||||||||||
Net interest income
|
$ | 19,607 | $ | 16,462 | $ | 16,586 | ||||||||||||||||||||||||||||||
Net Interest Rate Spread
(1)
|
3.34 | % | 3.08 | % | 3.09 | % | ||||||||||||||||||||||||||||||
Net Interest-Earning Assets
(2)
|
153,587 | 130,921 | 113,705 | |||||||||||||||||||||||||||||||||
Net Interest Margin
(3)
|
3.47 | % | 3.23 | % | 3.27 | |||||||||||||||||||||||||||||||
Average Interest-Earning Assets to
Average Interest-Bearing Liabilities
|
137.33 | % | 134.56 | % | 128.92 | % |
(1)
|
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the
weighted average cost of interest-bearing liabilities.
|
(2)
|
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
(3)
|
Net interest margin represents net interest income divided by average total interest-earning assets. Interest income and
yields are on a fully tax equivalent basis utiliizing a marginal tax rate of 34%.
|
(Dollars in thousands)
|
||||||||||||||||||||||||
Year Ended December 31, 2014
Compared To
|
Year Ended December 31, 2013
Compared To
|
|||||||||||||||||||||||
Increase (Decrease) Due to
|
Increase (Decrease) Due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
|||||||||||||||||||
Interest and dividend income:
|
||||||||||||||||||||||||
Loans, net
|
$ | 3,213 | $ | (218 | ) | $ | 2,995 | $ | 842 | $ | (1,370 | ) | $ | (528 | ) | |||||||||
Investment Securities:
|
||||||||||||||||||||||||
Taxable
|
(260 | ) | 279 | 19 | (34 | ) | (29 | ) | (63 | ) | ||||||||||||||
Tax-Exempt
|
(124 | ) | (117 | ) | (241 | ) | (120 | ) | (259 | ) | (379 | ) | ||||||||||||
Other Interest-Earning Assets
|
44 | 52 | 96 | (33 | ) | 22 | (11 | ) | ||||||||||||||||
Total Interest-Earning Assets
|
2,873 | (4 | ) | 2,869 | 655 | (1,636 | ) | (981 | ) | |||||||||||||||
Interest Expense:
|
||||||||||||||||||||||||
Deposits
|
180 | (373 | ) | (193 | ) | (46 | ) | (632 | ) | (678 | ) | |||||||||||||
Borrowings
|
(4 | ) | (79 | ) | (83 | ) | (108 | ) | (71 | ) | (179 | ) | ||||||||||||
Total Interest-Bearing Liablities
|
176 | (452 | ) | (276 | ) | (154 | ) | (703 | ) | (857 | ) | |||||||||||||
Change in Net Interest Income
|
$ | 2,697 | $ | 448 | $ | 3,145 | $ | 809 | $ | (933 | ) | $ | (124 | ) |
(Dollars in thousands)
|
||||||||||||||||||||
Payment Due by Period
|
||||||||||||||||||||
Total
|
Less Than
Or Equal to
|
More Than
One to
|
More Than
Three to
|
More Than
Five Years
|
||||||||||||||||
Certificates of deposit
|
$ | 151,594 | $ | 54,185 | $ | 58,416 | $ | 25,251 | $ | 13,742 | ||||||||||
Borrowings
|
61,820 | 61,820 | - | - | - | |||||||||||||||
Operating lease obligations
|
2,358 | 448 | 818 | 430 | 662 | |||||||||||||||
Total
|
$ | 215,772 | $ | 116,453 | $ | 59,234 | $ | 25,681 | $ | 14,404 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Economic Value of Equity
|
EVE as a Percent of
Portfolio Value of Assets
|
Earnings at Risk
|
||||||||||||||||||||||||||
Change in Interest Rates
in Basis Points ("bp')
|
Dollar
Amount
|
Dollar
Change
|
Percent
Change
|
NPV Ratio
|
Change
|
Dollar
Change
|
Percent
Change
|
|||||||||||||||||||||
+300 bp
|
$ | 60,891 | $ | (32,808 | ) | (35.0 | ) % | 7.94 | % | (322 | ) bp | $ | (2,749 | ) | (9.8 | ) % | ||||||||||||
+200 bp
|
71,992 | (21,707 | ) | (23.2 | ) | 9.11 | (205 | ) | (1,780 | ) | (6.4 | ) | ||||||||||||||||
+100 bp
|
84,917 | (8,782 | ) | (9.4 | ) | 10.40 | (76 | ) | (818 | ) | (2.9 | ) | ||||||||||||||||
Flat
|
93,699 | - | - | 11.16 | - | - | - | |||||||||||||||||||||
-100 bp
|
94,052 | 353 | 0.4 | 11.01 | (15 | ) | (903 | ) | (3.2 | ) |
4
|
Form of Stock Certificate of CB Financial Services, Inc.
(1)
|
|
10.1
|
Employment Agreement by and between Community Bank and Barron P. McCune, Jr.
|
|
10.2
|
Employment Agreement by and between Community Bank and Kevin D. Lemley
|
|
10.3
|
Employment Agreement by and between Community Bank and Ralph Burchianti
|
|
10.4
|
Employment Agreement by and between Community Bank and Ralph J. Sommers, Jr.
|
|
10.5
|
Employment Agreement by and between Community Bank and Patrick G. O’Brien
(1)
|
|
10.6
|
Employment Agreement by and among Community Bank, Exchange Underwriters, Inc. and Richard B. Boyer dated April 14, 2014
(1)
|
|
10.7
|
Split Dollar Life Insurance Agreement by and between Community Bank and Barron P. McCune, Jr. dated April 1, 2005
(1)
|
|
10.8
|
Split Dollar Life Insurance Agreement by and between Community Bank and Ralph Burchianti dated April 1, 2005
(1)
|
|
10.9
|
Split Dollar Life Insurance Agreement by and between Community Bank and Ralph J. Sommers, Jr. dated April 1, 2005
(1)
|
|
10.10
|
Split Dollar Life Insurance Agreement dated as of June 1, 2002 by and between First Federal Savings Bank and Richard B. Boyer
(2)
|
|
10.11
|
Amendment dated as of July 19, 2002 to the Life Insurance Endorsement Method Split Dollar Plan Agreement by and between First Federal Savings Bank and Richard B. Boyer
(3)
|
|
10.12
|
Amendment dated as of September 13, 2005 to the Life Insurance Endorsement Method Split Dollar Plan Agreement by and between First Federal Savings Bank and Richard B. Boyer
(4)
|
|
10.13
|
Lease Agreement dated as of June 1, 2012 by and between Exchange Underwriters, Inc. and Richard B. and Wendy A. Boyer
(5)
|
|
21
|
Subsidiaries
|
|
31.1
|
Certification required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.0
|
The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Operations,
(iii) the Consolidated Statements of Comprehensive Income,
(iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to the Audited Consolidated Financial Statements.
|
|
(1)
|
Incorporated by reference to the Exhibits to the Company’s Registration Statement on Form S-4 filed with the Securities and Exchange Commission on June 13, 2014 (File No. 333-196749).
|
|
(2)
|
Incorporated herein by reference to Exhibit 10.11 to
FedFirst Financial Corporation’s
Registration Statement on Form SB-2, as amended (File No. 333-121405), initially filed on December 17, 2004.
|
|
(3)
|
Incorporated herein by reference to Exhibit 10.2 to FedFirst Financial Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, filed on May 9, 2008.
|
|
(4)
|
Incorporated herein by reference to Exhibit 10.4 to FedFirst Financial Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, filed on May 9, 2008.
|
|
(5)
|
Incorporated herein by reference to Exhibit 10.7 to FedFirst Financial Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed on March 15, 2013.
|
CB FINANCIAL SERVICES, INC. | |||
Date: March 26, 2015
|
By: | /s/ Barron P. McCune, Jr. | |
Barron P. McCune, Jr. | |||
President and Chief Executive Officer |
By:
|
/s/ Barron P. McCune, Jr. |
By:
|
/s/ Kevin D. Lemley | ||
Barron P. McCune, Jr.
|
Kevin D. Lemley
|
||||
President, Chief Executive Officer and Vice Chairman
|
Executive Vice President and Chief Financial Officer
|
||||
Date: March 26, 2015
|
Date: March 26, 2015
|
||||
By:
|
/s/ Ralph J. Sommers, Jr. |
By:
|
/s/ Karl G. Baily | ||
Ralph J. Sommers, Jr.
|
Karl G. Baily
|
||||
Director (Chairman of the Board)
|
Director
|
||||
Date: March 26, 2015
|
Date: March 26, 2015
|
||||
By:
|
/s/ Richard B. Boyer |
By:
|
/s/ Mark E. Fox | ||
Richard B. Boyer
|
Mark E. Fox
|
||||
Director
|
Director
|
||||
Date: March 26, 2015
|
Date: March 26, 2015
|
||||
By:
|
/s/ William C. Groves |
By:
|
/s/ Charles R. Guthrie | ||
William C. Groves
|
Charles R. Guthrie
|
||||
Director
|
Director
|
||||
Date: March 26, 2015
|
Date: March 26, 2015
|
||||
By:
|
/s/ Joseph N. Headlee |
By:
|
/s/ John J. LaCarte | ||
Joseph N. Headlee
|
John J. LaCarte
|
||||
Director
|
Director
|
||||
Date: March 26, 2015
|
Date: March 26, 2015
|
||||
By:
|
/s/ Patrick G. O'Brien |
By:
|
/s/ David F. Pollock | ||
Patrick G. O'Brien
|
David F. Pollock
|
||||
Director
|
Director
|
||||
Date: March 26, 2015
|
Date: March 26, 2015
|
||||
By:
|
/s/ John M. Swiatek
|
||||
John M. Swiatek
|
|||||
Director
|
|||||
Date: March 26, 2015
|
December 31,
|
||||||||
2014
|
2013
|
|||||||
ASSETS
|
||||||||
Cash and Due From Banks:
|
||||||||
Interest Bearing
|
$ | 5,933 | $ | 9,333 | ||||
Non-Interest Bearing
|
5,818 | 7,084 | ||||||
Total Cash and Due From Banks
|
11,751 | 16,417 | ||||||
Investment Securities:
|
||||||||
Available-for-Sale
|
105,449 | 133,810 | ||||||
Held to Maturity
|
504 | 1,006 | ||||||
Loans, Net
|
680,451 | 373,764 | ||||||
Premises and Equipment, Net
|
10,593 | 4,612 | ||||||
Bank-Owned Life Insurance
|
17,735 | 8,702 | ||||||
Goodwill
|
5,632 | 2,158 | ||||||
Core Deposit Intangible
|
4,888 | - | ||||||
Accrued Interest and Other Assets
|
9,311 | 6,017 | ||||||
TOTAL ASSETS
|
$ | 846,314 | $ | 546,486 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Demand Deposits
|
$ | 163,488 | $ | 121,210 | ||||
NOW Accounts
|
101,600 | 77,797 | ||||||
Money Market Accounts
|
160,747 | 110,174 | ||||||
Savings Accounts
|
118,332 | 84,961 | ||||||
Time Deposits
|
151,594 | 84,670 | ||||||
Brokered Deposits
|
1,733 | 1,523 | ||||||
Total Deposits
|
697,494 | 480,335 | ||||||
Short-Term Borrowings
|
46,684 | 15,384 | ||||||
Other Borrowed Funds
|
15,136 | 4,000 | ||||||
Accrued Interest and Other Liabilities
|
5,088 | 1,762 | ||||||
TOTAL LIABILITIES
|
764,402 | 501,481 | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred Stock, No Par Value; 5,000,000 Shares Authorized
|
- | - | ||||||
Common Stock, $0.4167 Par Value; 35,000,000 Shares Authorized, 4,363,346
and 2,626,864 Shares Issued and 4,071,462 and 2,467,980 Shares Outstanding
at December 31, 2014 and 2013, Respectively
|
1,818 | 1,095 | ||||||
Capital Surplus
|
41,762 | 5,969 | ||||||
Retained Earnings
|
42,766 | 40,807 | ||||||
Treasury Stock, at Cost (291,884 and 158,884 Shares
at December 31, 2014 and 2013, Respectively)
|
(4,999 | ) | (2,103 | ) | ||||
Accumulated Other Comprehensive Income (Loss)
|
565 | (763 | ) | |||||
TOTAL STOCKHOLDERS' EQUITY
|
81,912 | 45,005 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 846,314 | $ | 546,486 |
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
INTEREST AND DIVIDEND INCOME
|
||||||||||||
Loans, Including Fees
|
$ | 18,515 | $ | 15,528 | $ | 15,835 | ||||||
Federal Funds Sold
|
27 | 16 | 50 | |||||||||
Investment Securities:
|
||||||||||||
Taxable
|
862 | 843 | 902 | |||||||||
Exempt From Federal Income Tax
|
1,326 | 1,492 | 1,755 | |||||||||
Other Interest and Dividend Income
|
111 | 26 | 7 | |||||||||
TOTAL INTEREST AND DIVIDEND INCOME
|
20,841 | 17,905 | 18,549 | |||||||||
INTEREST EXPENSE
|
||||||||||||
Deposits
|
1,775 | 1,968 | 2,646 | |||||||||
Federal Funds Purchased
|
2 | 3 | 1 | |||||||||
Short-Term Borrowings
|
45 | 56 | 84 | |||||||||
Other Borrowed Funds
|
138 | 209 | 362 | |||||||||
TOTAL INTEREST EXPENSE
|
1,960 | 2,236 | 3,093 | |||||||||
NET INTEREST INCOME
|
18,881 | 15,669 | 15,456 | |||||||||
Provision For Loan Losses
|
- | 100 | 450 | |||||||||
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
|
18,881 | 15,569 | 15,006 | |||||||||
NONINTEREST INCOME
|
||||||||||||
Service Fees on Deposit Accounts
|
2,128 | 2,062 | 2,091 | |||||||||
Insurance Commissions
|
466 | 11 | 13 | |||||||||
Other Commissions
|
397 | 382 | 320 | |||||||||
Net Gains on Sale of Loans
|
452 | 476 | 817 | |||||||||
Net Gains on Sale of Investments
|
60 | - | 14 | |||||||||
Income from Bank-Owned Life Insurance
|
273 | 243 | 260 | |||||||||
Other
|
42 | 31 | 18 | |||||||||
TOTAL NONINTEREST INCOME
|
3,818 | 3,205 | 3,533 | |||||||||
NONINTEREST EXPENSE
|
||||||||||||
Salaries and Employee Benefits
|
8,380 | 7,341 | 7,294 | |||||||||
Occupancy
|
1,218 | 1,119 | 991 | |||||||||
Equipment
|
1,146 | 975 | 928 | |||||||||
FDIC Assessment
|
412 | 383 | 373 | |||||||||
PA Shares Tax
|
357 | 403 | 371 | |||||||||
Contracted Services
|
463 | 344 | 355 | |||||||||
Legal Fees
|
426 | 420 | 356 | |||||||||
Advertising
|
467 | 300 | 299 | |||||||||
Bankcard Processing Expense
|
320 | 253 | 256 | |||||||||
Other Real Estate Owned (Income) Expense
|
(548 | ) | 40 | 198 | ||||||||
Merger-Related
|
1,979 | - | - | |||||||||
Other
|
2,178 | 1,780 | 1,866 | |||||||||
TOTAL NONINTEREST EXPENSE
|
16,798 | 13,358 | 13,287 | |||||||||
Income Before Income Taxes
|
5,901 | 5,416 | 5,252 | |||||||||
Income Taxes
|
1,609 | 1,160 | 1,035 | |||||||||
NET INCOME
|
$ | 4,292 | $ | 4,256 | $ | 4,217 | ||||||
EARNINGS PER SHARE
|
||||||||||||
Basic
|
$ | 1.63 | $ | 1.73 | $ | 1.73 | ||||||
Diluted
|
1.63 | 1.72 | 1.70 | |||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||
Basic
|
2,633,871 | 2,463,571 | 2,438,281 | |||||||||
Diluted
|
2,635,090 | 2,478,086 | 2,476,601 |
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Net Income
|
$ | 4,292 | $ | 4,256 | $ | 4,217 | ||||||
Other Comprehensive Income (Loss):
|
||||||||||||
Unrealized Gain (Loss) on Available-for-Sale Securities
Net of Tax of $704, $(1,284), and $(103) for the Years Ended December 31, 2014, 2013, and 2012, Respectively
|
1,368 | (1,992 | ) | (159 | ) | |||||||
Reclassification Adjustment for Losses (Gains) on Securities
Included in Net Income, Net of Tax of $20, $0, and $5 for the Years Ended December 2014, 2013 and 2012, Respectively
(1)
|
(40 | ) | - | (9 | ) | |||||||
Total Comprehensive Income
|
$ | 5,620 | $ | 2,264 | $ | 4,049 |
(1)
|
The gross amount of gains on securities of $60, $0, and $14 for the years ended December 31, 2014, 2013 and 2012, respectively, is reported as Net Gains on Sales of Investments on the Consolidated Statement of Income. The income tax effect is included in Income Taxes on the Consolidated Statement of Income.
|
Shares
Issued
|
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other
|
Total
|
||||||||||||||||||||||
Balance, December 31, 2011
|
2,576,544 | $ | 1,074 | $ | 5,265 | $ | 36,459 | $ | (2,103 | ) | $ | 1,397 | $ | 42,092 | ||||||||||||||
Net Income
|
- | - | - | 4,217 | - | - | 4,217 | |||||||||||||||||||||
Other Comprehensive Loss
|
- | - | - | - | - | (168 | ) | (168 | ) | |||||||||||||||||||
Exercise of Stock Options
|
26,915 | 11 | 371 | - | - | - | 382 | |||||||||||||||||||||
Dividends Declared ($0.84 per share)
|
- | - | - | (2,053 | ) | - | - | (2,053 | ) | |||||||||||||||||||
Balance, December 31, 2012
|
2,603,459 | $ | 1,085 | $ | 5,636 | $ | 38,623 | $ | (2,103 | ) | $ | 1,229 | $ | 44,470 | ||||||||||||||
Net Income
|
- | - | - | 4,256 | - | - | 4,256 | |||||||||||||||||||||
Other Comprehensive Loss
|
- | - | - | - | - | (1,992 | ) | (1,992 | ) | |||||||||||||||||||
Exercise of Stock Options
|
23,405 | 10 | 333 | - | - | - | 343 | |||||||||||||||||||||
Dividends Declared ($0.84 per share)
|
- | - | - | (2,072 | ) | - | - | (2,072 | ) | |||||||||||||||||||
Balance, December 31, 2013
|
2,626,864 | 1,095 | 5,969 | 40,807 | (2,103 | ) | (763 | ) | 45,005 | |||||||||||||||||||
Net Income
|
- | - | - | 4,292 | - | - | 4,292 | |||||||||||||||||||||
Other Comprehensive Income
|
- | - | - | - | - | 1,328 | 1,328 | |||||||||||||||||||||
Purchase of FedFirst Financial Corporation
|
1,721,967 | 717 | 35,593 | - | - | - | 36,310 | |||||||||||||||||||||
Exercise of Stock Options
|
14,515 | 6 | 200 | - | - | - | 206 | |||||||||||||||||||||
Dividends Declared ($0.84 per share)
|
- | - | - | (2,333 | ) | - | - | (2,333 | ) | |||||||||||||||||||
Treasury Stock Purchased, at Cost (133,000 shares)
|
- | - | - | - | (2,896 | ) | - | (2,896 | ) | |||||||||||||||||||
Balance, December 31, 2014
|
4,363,346 | $ | 1,818 | $ | 41,762 | $ | 42,766 | $ | (4,999 | ) | $ | 565 | $ | 81,912 |
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
OPERATING ACTIVITIES
|
||||||||||||
Net Income
|
$ | 4,292 | $ | 4,256 | $ | 4,217 | ||||||
Αdjustmеnts to Rеconcilе Net Income to Net Cash (Used In) Provided By Operating Activities:
|
||||||||||||
Net Amortization on Investments
|
1,240 | 1,851 | 2,516 | |||||||||
Depreciation and Amortization
|
763 | 629 | 484 | |||||||||
Provision for Loan Losses
|
- | 100 | 450 | |||||||||
Income from Bank-Owned Life Insurance
|
(273 | ) | (243 | ) | (260 | ) | ||||||
Proceeds From Mortgage Loans Sold
|
16,922 | 15,927 | 19,510 | |||||||||
Originations of Mortgage Loans for Sale
|
(16,470 | ) | (15,451 | ) | (18,693 | ) | ||||||
Gains on Sale of Loans
|
(452 | ) | (476 | ) | (817 | ) | ||||||
Gain on Sales of Investment Securities
|
(60 | ) | - | (14 | ) | |||||||
(Gain) Loss on Sales of Other Real Estate Owned and Repossessed Assets
|
(840 | ) | (211 | ) | 26 | |||||||
(Increase) Decrease in Accrued Interest Receivable
|
(677 | ) | 69 | 160 | ||||||||
Valuation Adjustment on Foreclosed Real Estate
|
- | 126 | 176 | |||||||||
Deferred Income Tax
|
1,218 | 192 | 14 | |||||||||
Increase (Decrease) in Taxes Payable
|
577 | 52 | (281 | ) | ||||||||
Increase (Decrease) in Accrued Interest Payable
|
82 | (61 | ) | (174 | ) | |||||||
Decrease in Prepaid FDIC Assessment
|
- | 653 | 337 | |||||||||
Other, Net
|
(8,723 | ) | 637 | (934 | ) | |||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
|
(2,401 | ) | 8,050 | 6,717 | ||||||||
INVESTING ACTIVITIES
|
||||||||||||
Investment Securities Available for Sale:
|
||||||||||||
Proceeds From Principal Repayments and Maturities
|
62,632 | 58,189 | 104,184 | |||||||||
Purchases of Securities
|
(52,144 | ) | (41,517 | ) | (130,283 | ) | ||||||
Proceeds from Sales of Securities
|
18,712 | - | - | |||||||||
Investment Securities Held to Maturity:
|
||||||||||||
Proceeds From Principal Repayments and Maturities
|
495 | 1,005 | 1,745 | |||||||||
Purchases of Securities
|
- | - | (527 | ) | ||||||||
Proceeds from Sales of Securities
|
- | - | 514 | |||||||||
Net Increase in Loans
|
(308,417 | ) | (32,670 | ) | (7,754 | ) | ||||||
Purchase of Premises and Equipment
|
(6,564 | ) | (237 | ) | (1,098 | ) | ||||||
Retirements of Premises and Equipment
|
74 | - | - | |||||||||
Proceeds From Sale of Other Real Estate Owned and Repossessed Assets
|
2,445 | 1,212 | 90 | |||||||||
Net Change in Restricted Equity Securities
|
(1,620 | ) | (380 | ) | 15 | |||||||
Acquisition of Bank-Owned Life Insurance
|
(8,760 | ) | - | - | ||||||||
NET CASH USED IN INVESTING ACTIVITIES
|
(293,147 | ) | (14,398 | ) | (33,114 | ) | ||||||
FINANCING ACTIVITIES
|
||||||||||||
Net Increase in Deposits
|
217,159 | 10,187 | 20,008 | |||||||||
Net Increase (Decrease) in Short-Term Borrowings
|
31,300 | (7,989 | ) | (4,645 | ) | |||||||
Principal Payments on Other Borrowed Funds
|
(1,029 | ) | (3,000 | ) | (4,461 | ) | ||||||
Proceeds from Long-Term Borrowings
|
12,165 | - | - | |||||||||
Cash Dividends Paid
|
(2,333 | ) | (2,072 | ) | (2,053 | ) | ||||||
Treasury Stock, Purchases at Cost
|
(2,896 | ) | - | - | ||||||||
Issuance of Common Stock
|
36,310 | - | - | |||||||||
Exercise of Stock Options
|
206 | 343 | 382 | |||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
290,882 | (2,531 | ) | 9,231 | ||||||||
DECREASE IN CASH AND CASH EQUIVALENTS
|
(4,666 | ) | (8,879 | ) | (17,166 | ) | ||||||
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR
|
16,417 | 25,296 | 42,462 | |||||||||
CASH AND DUE FROM BANKS AT END OF YEAR
|
$ | 11,751 | $ | 16,417 | $ | 25,296 |
Consideration Paid:
|
||||
Cash Paid for Redemption of FedFirst Common Stock
|
$ | 18,406 | ||
CB Financial Common Stock Issued in Exchange for FedFirst Common Stock
|
36,310 | |||
Total Consideration Paid
|
54,716 | |||
Assets Acquired:
|
||||
Cash and Cash Equivalents
|
4,552 | |||
Net Loans
|
283,565 | |||
Premises and Equipment
|
5,814 | |||
Bank Owned Life Insurance
|
8,760 | |||
Core Deposit Intangible
|
4,977 | |||
Other Assets
|
3,475 | |||
Total Assets Acquired
|
311,143 | |||
Liabilities Assumed:
|
||||
Deposits
|
206,389 | |||
Borrowings
|
51,173 | |||
Other Liabilities
|
2,339 | |||
Total Liabilities Assumed
|
259,901 | |||
Total Identifiable Net Assets
|
51,242 | |||
Goodwill Recognized
|
$ | 3,474 |
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Weighted-Average Common Shares Outstanding
|
2,925,026 | 2,622,455 | 2,597,165 | |||||||||
Average Treasury Stock Shares
|
(291,155 | ) | (158,884 | ) | (158,884 | ) | ||||||
Weighted-Average Common Shares and Common Stock
Equivalents Used to Calculate Basic Earnings Per Share
|
2,633,871 | 2,463,571 | 2,438,281 | |||||||||
Additional Common Stock Equivalents (Stock Options) Used to
Calculated Diluted Earnings Per Share
|
1,219 | 14,515 | 38,320 | |||||||||
Weighted-Average Common Shares and Common Stock
Equivalents Used to Calculate Diluted Earnings Per Share
|
2,635,090 | 2,478,086 | 2,476,601 | |||||||||
Earnings per share:
|
||||||||||||
Basic
|
$ | 1.63 | $ | 1.73 | $ | 1.73 | ||||||
Diluted
|
1.63 | 1.72 | 1.70 |
(Dollars in thousands)
|
||||||||||||||||
2014
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
|||||||||||||
U.S. Government Agencies
|
$ | 57,669 | $ | 139 | $ | (157 | ) | $ | 57,651 | |||||||
Obligations of States and Political Subdivisions
|
41,611 | 886 | (116 | ) | 42,381 | |||||||||||
Mortgage-Backed Securities - Government-Sponsored Enterprises
|
4,240 | 33 | - | 4,273 | ||||||||||||
Equity Securities - Mutual Funds
|
500 | 14 | - | 514 | ||||||||||||
Equity Securities - Other
|
573 | 58 | (1 | ) | 630 | |||||||||||
Total
|
$ | 104,593 | $ | 1,130 | $ | (274 | ) | $ | 105,449 |
2013
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
|||||||||||||
U.S. Government Agencies
|
$ | 77,559 | $ | 8 | $ | (1,273 | ) | $ | 76,294 | |||||||
Obligations of States and Political Subdivisions
|
50,481 | 659 | (637 | ) | 50,503 | |||||||||||
Mortgage-Backed Securities - Government-Sponsored Enterprises
|
5,916 | 41 | (32 | ) | 5,925 | |||||||||||
Equity Securities - Mutual Funds
|
500 | 35 | - | 535 | ||||||||||||
Equity Securities - Other
|
510 | 47 | (4 | ) | 553 | |||||||||||
Total
|
$ | 134,966 | $ | 790 | $ | (1,946 | ) | $ | 133,810 |
(Dollars in thousands)
|
||||||||||||||||
2014
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
|||||||||||||
Obligations of States and Political Subdivisions
|
$ | 504 | $ | - | $ | - | $ | 504 |
2013
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
|||||||||||||
Obligations of States and Political Subdivisions
|
$ | 1,006 | $ | 3 | $ | - | $ | 1,009 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
2014
|
||||||||||||||||||||||||||||||||||||
Less than 12 months
|
12 Months or Greater
|
Total
|
||||||||||||||||||||||||||||||||||
Number
of
|
Fair
Value
|
Gross
Unrealized
|
Number
of
|
Fair
Value
|
Gross
Unrealized
|
Number
of
|
Fair
Value
|
Gross
Unrealized
|
||||||||||||||||||||||||||||
U.S. Government Agencies
|
10 | $ | 26,101 | $ | (144 | ) | 1 | $ | 2,987 | $ | (13 | ) | 11 | $ | 29,088 | $ | (157 | ) | ||||||||||||||||||
Obligations of States and
Political Subdivisions
|
5 | 2,123 | (9 | ) | 22 | 13,590 | (107 | ) | 27 | 15,713 | (116 | ) | ||||||||||||||||||||||||
Equity Securities - Other
|
1 | 48 | (1 | ) | - | - | - | 1 | 48 | (1 | ) | |||||||||||||||||||||||||
Total
|
16 | $ | 28,272 | $ | (154 | ) | 23 | $ | 16,577 | $ | (120 | ) | 39 | $ | 44,849 | $ | (274 | ) |
2013
|
||||||||||||||||||||||||||||||||||||
Less than 12 months
|
12 Months or Greater
|
Total
|
||||||||||||||||||||||||||||||||||
Number
of
|
Fair
Value
|
Gross
Unrealized
|
Number
of
|
Fair
Value
|
Gross
Unrealized
|
Number
of
|
Fair
Value
|
Gross
Unrealized
|
||||||||||||||||||||||||||||
U.S. Government Agencies
|
21 | $ | 52,407 | $ | (1,043 | ) | 4 | $ | 7,834 | $ | (230 | ) | 25 | $ | 60,241 | $ | (1,273 | ) | ||||||||||||||||||
Obligations of States and
Political Subdivisions
|
28 | 16,489 | (409 | ) | 16 | 8,052 | (228 | ) | 44 | 24,541 | (637 | ) | ||||||||||||||||||||||||
Mortgage-Backed Securities -
Government Sponsored Enterprises
|
2 | 5,028 | (32 | ) | - | - | - | 2 | 5,028 | (32 | ) | |||||||||||||||||||||||||
Equity Securities - Other
|
2 | 85 | (4 | ) | - | - | - | 2 | 85 | (4 | ) | |||||||||||||||||||||||||
Total
|
53 | $ | 74,009 | $ | (1,488 | ) | 20 | $ | 15,886 | $ | (458 | ) | 73 | $ | 89,895 | $ | (1,946 | ) |
(Dollars in thousands)
|
||||||||||||||||
2014
|
||||||||||||||||
Available-for-Sale
|
Held to Maturity
|
|||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||
Due in One Year or Less
|
$ | 3,811 | $ | 3,865 | $ | 504 | $ | 504 | ||||||||
Due after One Year through Five Years
|
30,353 | 30,335 | - | - | ||||||||||||
Due after Five Years through Ten Years
|
50,593 | 50,913 | - | - | ||||||||||||
Due after Ten Years
|
19,836 | 20,336 | - | - | ||||||||||||
Total
|
$ | 104,593 | $ | 105,449 | $ | 504 | $ | 504 |
(Dollars in thousands)
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
Pennsylvania Municipalities
|
$ | 39,389 | $ | 40,096 | ||||
Pennsylvania Political Subdivisions
|
2,229 | 2,286 | ||||||
All Other State Political Subdivisions
|
497 | 503 | ||||||
$ | 42,115 | $ | 42,885 |
Amortized
Cost
|
Fair
Value
|
|||||||
General Obligation
|
$ | 39,389 | $ | 40,096 | ||||
Special Revenue
|
||||||||
Public Improvement
|
250 | 251 | ||||||
Water and Sewer
|
247 | 252 | ||||||
Other
|
2,229 | 2,286 | ||||||
$ | 42,115 | $ | 42,885 |
(Dollars in thousands)
|
||||||||
2014
|
2013
|
|||||||
Real Estate:
|
||||||||
Residential
|
$ | 331,873 | $ | 164,245 | ||||
Commercial
|
174,265 | 95,333 | ||||||
Construction
|
22,197 | 10,367 | ||||||
Commercial and Industrial
|
72,064 | 41,719 | ||||||
Consumer
|
77,611 | 59,101 | ||||||
Other
|
7,636 | 8,381 | ||||||
Total Loans
|
685,646 | 379,146 | ||||||
Less Allowance for Loan Losses
|
(5,195 | ) | (5,382 | ) | ||||
Net Loans
|
$ | 680,451 | $ | 373,764 |
(Dollars in thousands)
|
||||||||||||||||||||
2014
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||
Residential
|
$ | 329,417 | $ | 194 | $ | 2,243 | $ | 19 | $ | 331,873 | ||||||||||
Commercial
|
154,225 | 13,373 | 5,975 | 692 | 174,265 | |||||||||||||||
Construction
|
20,963 | 101 | 789 | 344 | 22,197 | |||||||||||||||
Commercial and Industrial
|
67,171 | 4,208 | 383 | 302 | 72,064 | |||||||||||||||
Consumer
|
77,607 | - | 4 | - | 77,611 | |||||||||||||||
Other
|
7,636 | - | - | - | 7,636 | |||||||||||||||
Total
|
$ | 657,019 | $ | 17,876 | $ | 9,394 | $ | 1,357 | $ | 685,646 |
2013
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||
Residential
|
$ | 163,234 | $ | 397 | $ | 604 | $ | 10 | $ | 164,245 | ||||||||||
Commercial
|
78,324 | 11,859 | 335 | 4,815 | 95,333 | |||||||||||||||
Construction
|
6,712 | 2,178 | - | 1,477 | 10,367 | |||||||||||||||
Commercial and Industrial
|
37,924 | 3,480 | - | 315 | 41,719 | |||||||||||||||
Consumer
|
59,084 | - | 17 | - | 59,101 | |||||||||||||||
Other
|
8,381 | - | - | - | 8,381 | |||||||||||||||
Total
|
$ | 353,659 | $ | 17,914 | $ | 956 | $ | 6,617 | $ | 379,146 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||
2014
|
||||||||||||||||||||||||||||
Loans
Current
|
30-59
Days
|
60-89
Days
|
90 Days
Or More
|
Total
Past Due
|
Non-
Accrual
|
Total
Loans
|
||||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||
Residential
|
$ | 328,314 | $ | 1,613 | $ | 34 | $ | 369 | $ | 2,016 | $ | 1,543 | $ | 331,873 | ||||||||||||||
Commercial
|
170,675 | 2,525 | - | - | 2,525 | 1,065 | 174,265 | |||||||||||||||||||||
Construction
|
21,853 | - | - | - | - | 344 | 22,197 | |||||||||||||||||||||
Commercial and Industrial
|
72,053 | 7 | - | - | 7 | 4 | 72,064 | |||||||||||||||||||||
Consumer
|
77,180 | 397 | 24 | 10 | 431 | - | 77,611 | |||||||||||||||||||||
Other
|
7,636 | - | - | - | - | - | 7,636 | |||||||||||||||||||||
Total
|
$ | 677,711 | $ | 4,542 | $ | 58 | $ | 379 | $ | 4,979 | $ | 2,956 | $ | 685,646 |
2013
|
||||||||||||||||||||||||||||
Loans
Current
|
30-59
Days
|
60-89
Days
|
90 Days
Or More
|
Total
Past Due
|
Non-
Accrual
|
Total
Loans
|
||||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||
Residential
|
$ | 163,626 | $ | 173 | $ | 107 | $ | - | $ | 280 | $ | 339 | $ | 164,245 | ||||||||||||||
Commercial
|
91,686 | 592 | 390 | - | 982 | 2,665 | 95,333 | |||||||||||||||||||||
Construction
|
10,002 | - | - | - | - | 365 | 10,367 | |||||||||||||||||||||
Commercial and Industrial
|
41,711 | 8 | - | - | 8 | - | 41,719 | |||||||||||||||||||||
Consumer
|
58,789 | 288 | 7 | - | 295 | 17 | 59,101 | |||||||||||||||||||||
Other
|
8,381 | - | - | - | - | - | 8,381 | |||||||||||||||||||||
Total
|
$ | 374,195 | $ | 1,061 | $ | 504 | $ | - | $ | 1,565 | $ | 3,386 | $ | 379,146 |
(Dollars in thousands)
|
||||||||||||||||||||
2014
|
||||||||||||||||||||
Recorded
Investment
|
Related
Allowance
|
Unpaid
Principal
|
Average
Recorded
|
Interest
Income
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||
Residential
|
$ | 992 | $ | - | $ | 1,017 | $ | 1,012 | $ | 51 | ||||||||||
Commercial
|
6,580 | 519 | 6,640 | 7,653 | 293 | |||||||||||||||
Construction
|
1,133 | 100 | 1,133 | 1,366 | 41 | |||||||||||||||
Commercial and Industrial
|
686 | 254 | 686 | 745 | 34 | |||||||||||||||
Total Impaired Loans
|
$ | 9,391 | $ | 873 | $ | 9,476 | $ | 10,776 | $ | 419 |
2013
|
||||||||||||||||||||
Recorded
Investment
|
Related
Allowance
|
Unpaid
Principal
|
Average
Recorded
|
Interest
Income
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||
Residential
|
$ | 65 | $ | - | $ | 86 | $ | 94 | $ | 5 | ||||||||||
Commercial
|
5,407 | 640 | 5,693 | 5,960 | 245 | |||||||||||||||
Construction
|
1,477 | 265 | 1,477 | 1,692 | 54 | |||||||||||||||
Commercial and Industrial
|
315 | 253 | 315 | 316 | 13 | |||||||||||||||
Total Impaired Loans
|
$ | 7,264 | $ | 1,158 | $ | 7,571 | $ | 8,062 | $ | 317 |
2012
|
||||||||||||||||||||
Recorded
Investment
|
Related
Allowance
|
Unpaid
Principal
|
Average
Recorded
|
Interest
Income
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||
Residential
|
$ | 1,632 | $ | 6 | $ | 1,680 | $ | 1,708 | $ | 54 | ||||||||||
Commercial
|
3,343 | 871 | 3,610 | 3,904 | 185 | |||||||||||||||
Construction
|
365 | 166 | 365 | 365 | - | |||||||||||||||
Commercial and Industrial
|
430 | 85 | 1,981 | 456 | 12 | |||||||||||||||
Consumer
|
36 | - | 54 | 63 | 4 | |||||||||||||||
Total Impaired Loans
|
$ | 5,806 | $ | 1,128 | $ | 7,690 | $ | 6,496 | $ | 255 |
(Dollars in thousands)
|
||||||||||||||||||||||||
2014
|
||||||||||||||||||||||||
Temporary Rate
Modification
|
Extension of Maturity
|
Modification of Payment
and Other Terms
|
||||||||||||||||||||||
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
|||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||
Residential
|
- | $ | - | - | $ | - | 3 | $ | 1,343 | |||||||||||||||
Commercial
|
2 | 317 | 5 | 1,507 | 3 | 629 | ||||||||||||||||||
Total
|
2 | $ | 317 | 5 | $ | 1,507 | 6 | $ | 1,972 |
2013
|
||||||||||||||||||||||||
Temporary Rate
Modification
|
Extension of Maturity
|
Modification of Payment
and Other Terms
|
||||||||||||||||||||||
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
|||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||
Commercial
|
1 | $ | 259 | 1 | $ | 259 | - | $ | - | |||||||||||||||
Total
|
1 | $ | 259 | 1 | $ | 259 | - | $ | - |
(Dollars in thousands)
|
||||||||||||||||||||||||||||
2014
|
||||||||||||||||||||||||||||
Real
Estate
|
Real
Estate
|
Real
Estate
|
Commercial
and
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Beginning Balance
|
$ | 1,481 | $ | 1,703 | $ | 355 | $ | 1,013 | $ | 592 | $ | 238 | $ | 5,382 | ||||||||||||||
Charge-offs
|
(39 | ) | - | (38 | ) | - | (195 | ) | - | (272 | ) | |||||||||||||||||
Recoveries
|
2 | - | - | 5 | 78 | - | 85 | |||||||||||||||||||||
Provision
|
1,246 | (1,121 | ) | (195 | ) | (334 | ) | 540 | (136 | ) | - | |||||||||||||||||
Ending Balance
|
$ | 2,690 | $ | 582 | $ | 122 | $ | 684 | $ | 1,015 | $ | 102 | $ | 5,195 | ||||||||||||||
Individually Evaluated for Impairment
|
$ | - | $ | 519 | $ | 100 | $ | 254 | $ | - | $ | - | $ | 873 | ||||||||||||||
Collectively Evaluated for Potential Impairment
|
$ | 2,690 | $ | 63 | $ | 22 | $ | 430 | $ | 1,015 | $ | 102 | $ | 4,322 |
2013
|
||||||||||||||||||||||||||||
Real
Estate
|
Real
Estate
|
Real
Estate
|
Commercial
and
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Beginning Balance
|
$ | 2,215 | $ | 2,051 | $ | 326 | $ | 1,043 | $ | 320 | $ | (51 | ) | $ | 5,904 | |||||||||||||
Charge-offs
|
(181 | ) | (555 | ) | - | (109 | ) | (96 | ) | - | (941 | ) | ||||||||||||||||
Recoveries
|
86 | 69 | - | 68 | 96 | - | 319 | |||||||||||||||||||||
Provision
|
(639 | ) | 138 | 29 | 11 | 272 | 289 | 100 | ||||||||||||||||||||
Ending Balance
|
$ | 1,481 | $ | 1,703 | $ | 355 | $ | 1,013 | $ | 592 | $ | 238 | $ | 5,382 | ||||||||||||||
Individually Evaluated for Impairment
|
$ | - | $ | 640 | $ | 265 | $ | 253 | $ | - | $ | - | $ | 1,158 | ||||||||||||||
Collectively Evaluated for Potential Impairment
|
$ | 1,481 | $ | 1,063 | $ | 90 | $ | 760 | $ | 592 | $ | 238 | $ | 4,224 |
2012
|
||||||||||||||||||||||||||||
Real
Estate
|
Real
Estate
|
Real
Estate
|
Commercial
and
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Beginning Balance
|
$ | 902 | $ | 3,271 | $ | 436 | $ | 983 | $ | 287 | $ | - | $ | 5,879 | ||||||||||||||
Charge-offs
|
(71 | ) | (103 | ) | - | (255 | ) | (167 | ) | - | (596 | ) | ||||||||||||||||
Recoveries
|
49 | - | - | 49 | 73 | - | 171 | |||||||||||||||||||||
Provision
|
1,335 | (1,117 | ) | (110 | ) | 266 | 127 | (51 | ) | 450 | ||||||||||||||||||
Ending Balance
|
$ | 2,215 | $ | 2,051 | $ | 326 | $ | 1,043 | $ | 320 | $ | (51 | ) | $ | 5,904 | |||||||||||||
Individually Evaluated for Impairment
|
$ | 6 | $ | 871 | $ | 166 | $ | 85 | $ | - | $ | - | $ | 1,128 | ||||||||||||||
Collectively Evaluated for Potential Impairment
|
$ | 2,209 | $ | 1,180 | $ | 160 | $ | 958 | $ | 320 | $ | (51 | ) | $ | 4,776 |
(Dollars in thousands)
|
||||||||||||||||||||||||||||
2014
|
||||||||||||||||||||||||||||
Real
Estate
|
Real
Estate
|
Real
Estate
|
Commercial
and
|
Consumer
|
Other
|
Total
|
||||||||||||||||||||||
Individually Evaluated for Impairment
|
$ | 992 | $ | 6,580 | $ | 1,133 | $ | 686 | $ | - | $ | - | $ | 9,391 | ||||||||||||||
Collectively Evaluated for Potential Impairment
|
330,881 | 167,685 | 21,064 | 71,378 | 77,611 | 7,636 | 676,255 | |||||||||||||||||||||
$ | 331,873 | $ | 174,265 | $ | 22,197 | $ | 72,064 | $ | 77,611 | $ | 7,636 | $ | 685,646 |
2013
|
||||||||||||||||||||||||||||
Real
Estate
|
Real
Estate
|
Real
Estate
|
Commercial
and
|
Consumer
|
Other
|
Total
|
||||||||||||||||||||||
Individually Evaluated for Impairment
|
$ | 65 | $ | 5,407 | $ | 1,477 | $ | 315 | $ | - | $ | - | $ | 7,264 | ||||||||||||||
Collectively Evaluated for Potential Impairment
|
164,180 | 89,926 | 8,890 | 41,404 | 59,101 | 8,381 | 371,882 | |||||||||||||||||||||
$ | 164,245 | $ | 95,333 | $ | 10,367 | $ | 41,719 | $ | 59,101 | $ | 8,381 | $ | 379,146 |
(Dollars in thousands)
|
||||||||
2014
|
2013
|
|||||||
Balance, January 1
|
$ | 3,394 | $ | 3,511 | ||||
Additions
|
4,077 | 142 | ||||||
Payments
|
(130 | ) | (259 | ) | ||||
Balance, December 31
|
$ | 7,341 | $ | 3,394 |
(Dollars in thousands)
|
||||||||
2014
|
2013
|
|||||||
Land
|
$ | 1,678 | $ | 1,112 | ||||
Building
|
10,996 | 4,177 | ||||||
Leasehold Improvements
|
1,701 | 1,625 | ||||||
Furniture, Fixtures, and Equipment
|
9,684 | 7,808 | ||||||
Property Held Under Capital Lease
|
299 | 299 | ||||||
24,358 | 15,021 | |||||||
Less Accumulated Depreciation and Amortization
|
(13,765 | ) | (10,409 | ) | ||||
Total Premises and Equipment
|
$ | 10,593 | $ | 4,612 |
(Dollars in thousands)
|
||||||||||||
Gross
Carrying
|
Accumulated
Amortization
|
Net Carrying
Amount
|
||||||||||
Balance at December 31, 2012
|
$ | 2,193 | $ | (2,140 | ) | $ | 53 | |||||
Amortization Expense
|
- | (53 | ) | (53 | ) | |||||||
Balance at December 31, 2013
|
2,193 | (2,193 | ) | - | ||||||||
Merger with FedFirst Financial Corporation
|
4,977 | - | 4,977 | |||||||||
Amortization Expense
|
- | (89 | ) | (89 | ) | |||||||
Balance at December 31, 2014
|
$ | 4,977 | $ | (89 | ) | $ | 4,888 |
2014
|
||||
2015
|
$ | 54,185 | ||
2016
|
43,679 | |||
2017
|
14,737 | |||
2018
|
15,460 | |||
2019
|
9,791 | |||
Beyond 2019
|
13,742 | |||
Total
|
$ | 151,594 |
(Dollars in thousands)
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Amount
|
Weighted
Average
|
Amount
|
Weighted
Average
|
|||||||||||||
Federal Funds Purchased
|
||||||||||||||||
Average Balance Outstanding During the Year
|
$ | 375 | 0.46 | % | $ | 672 | 0.47 | % | ||||||||
Maximum Amount Outstanding at any Month End
|
1,850 | 4,100 | ||||||||||||||
Short-term Borrowings
|
||||||||||||||||
Balance at Year-End
|
25,800 | 0.32 | - | - | ||||||||||||
Average Balance Outstanding During the Year
|
4,283 | 0.31 | - | - | ||||||||||||
Maximum Amount Outstanding at any Month End
|
25,800 | - | ||||||||||||||
Securities Sold Under Agreements to Repurchase
|
||||||||||||||||
Balance at Year-End
|
20,884 | 0.17 | 15,384 | 0.28 | ||||||||||||
Average Balance Outstanding During the Year
|
17,525 | 0.26 | 21,035 | 0.27 | ||||||||||||
Maximum Amount Outstanding at any Month End
|
25,893 | 25,683 | ||||||||||||||
Securities Collaterizing the Agreements at Year-End:
|
||||||||||||||||
Carrying Value
|
23,244 | 25,399 | ||||||||||||||
Market Value
|
23,243 | 24,921 |
(Dollars in thousands)
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Amount
|
Weighted
Average
|
Amount
|
Weighted
Average
|
|||||||||||||
Due in One Year
|
$ | 15,136 | 3.78 | % | $ | 1,000 | 2.26 | % | ||||||||
Due After One Year to Two Years
|
- | - | 3,000 | 3.60 | ||||||||||||
Total
|
$ | 15,136 | 3.78 | $ | 4,000 | 3.27 |
(Dollars in thousands)
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Current Payable
|
$ | 391 | $ | 968 | $ | 1,021 | ||||||
Deferred
|
1,218 | 192 | 14 | |||||||||
Total Provision
|
$ | 1,609 | $ | 1,160 | $ | 1,035 |
(Dollars in thousands)
|
||||||||
2014
|
2013
|
|||||||
Deferred Tax Assets:
|
||||||||
Allowance for Loan Losses
|
$ | 1,624 | $ | 1,548 | ||||
Amortization of Core Deposit Intangible
|
55 | 95 | ||||||
Amortization of Intangibles
|
123 | - | ||||||
Tax Credit Carryforwards
|
290 | - | ||||||
Postretirement Benefits
|
62 | - | ||||||
Net Unrealized Loss on Securities
|
- | 393 | ||||||
Discount Accretion
|
- | 13 | ||||||
Passthrough Entities
|
4 | 3 | ||||||
Other
|
182 | 129 | ||||||
Gross Deferred Tax Assets
|
2,340 | 2,181 | ||||||
Deferred Tax Liabilities:
|
||||||||
Deferred Origination Fees and Costs
|
411 | 164 | ||||||
Depreciation
|
522 | 604 | ||||||
Net Unrealized Gain on Securities
|
291 | - | ||||||
Mortgage Servicing Rights
|
172 | 157 | ||||||
Purchase Accounting Adjustments
|
1,552 | - | ||||||
Goodwill
|
508 | 473 | ||||||
Other
|
3 | - | ||||||
Gross Deferred Tax Liabilities
|
3,459 | 1,398 | ||||||
Net Deferred Tax (Liabilities) Assets
|
$ | (1,119 | ) | $ | 783 |
(Dollars in thousands)
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
Amount
|
Percent of
Pre-tax
|
Amount
|
Percent of
Pre-tax
|
Amount
|
Percent of
Pre-tax
|
|||||||||||||||||||
Provision at Statutory Rate
|
$ | 2,006 | 34.0 | % | $ | 1,841 | 34.0 | % | $ | 1,786 | 34.0 | % | ||||||||||||
State Taxes (Net of Federal Benefit)
|
4 | 0.1 | - | - | - | - | ||||||||||||||||||
Effect of Tax-Free Income
|
(475 | ) | (8.0 | ) | (527 | ) | (9.7 | ) | (658 | ) | (12.5 | ) | ||||||||||||
BOLI Income
|
(90 | ) | (1.5 | ) | (80 | ) | (1.5 | ) | (88 | ) | (1.7 | ) | ||||||||||||
Merger Expenses
|
460 | 7.8 | - | - | - | - | ||||||||||||||||||
Other
|
(296 | ) | (5.1 | ) | (74 | ) | (1.4 | ) | (5 | ) | (0.1 | ) | ||||||||||||
Actual Tax Expense and Effective Rate
|
$ | 1,609 | 27.3 | % | $ | 1,160 | 21.4 | % | $ | 1,035 | 19.7 | % |
2014
|
Weighted
Average
|
2013
|
Weighted
Average
|
2012
|
Weighted
Average
|
|||||||||||||||||||
Outstanding, January 1
|
14,515 | $ | 14.25 | 38,320 | $ | 14.48 | 65,235 | $ | 14.36 | |||||||||||||||
Exercised
|
(14,515 | ) | 14.25 | (23,405 | ) | 14.62 | (26,915 | ) | 14.19 | |||||||||||||||
Forfeited
|
- | - | (400 | ) | 14.50 | - | - | |||||||||||||||||
Outstanding, December 31
|
- | - | 14,515 | 14.25 | 38,320 | 14.48 | ||||||||||||||||||
Exercisable, December 31
|
- | - | 14,515 | 14.25 | 38,320 | 14.48 |
(Dollars in thousands)
|
||||||||
2014
|
2013
|
|||||||
Standby Letters of Credit
|
$ | 18,260 | $ | 693 | ||||
Performance Letters of Credit
|
2,986 | 1,534 | ||||||
Construction Mortgages
|
12,241 | 9,939 | ||||||
Personal Lines of Credit
|
5,675 | 5,502 | ||||||
Overdraft Protection Lines
|
6,505 | 6,552 | ||||||
Home Equity Lines of Credit
|
13,253 | 8,155 | ||||||
Commercial Lines of Credit
|
54,301 | 42,393 | ||||||
$ | 113,221 | $ | 74,768 |
(Dollars in thousands)
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
Total Capital (to Risk-Weighted Assets)
|
||||||||||||||||
Actual
|
$ | 74,484 | 12.50 | % | $ | 46,578 | 12.98 | % | ||||||||
For Capital Adequacy Purposes
|
47,680 | 8.00 | 28,709 | 8.00 | ||||||||||||
To Be Well Capitalized
|
59,600 | 10.00 | 35,885 | 10.00 | ||||||||||||
Tier I Capital (to Risk-Weighted Assets)
|
||||||||||||||||
Actual
|
69,340 | 11.63 | 42,081 | 11.73 | ||||||||||||
For Capital Adequacy Purposes
|
23,840 | 4.00 | 14,354 | 4.00 | ||||||||||||
To Be Well Capitalized
|
35,760 | 6.00 | 21,531 | 6.00 | ||||||||||||
Tier I Capital (to Average Assets)
|
||||||||||||||||
Actual
|
69,340 | 9.33 | 42,081 | 7.70 | ||||||||||||
For Capital Adequacy Purposes
|
29,719 | 4.00 | 21,863 | 4.00 | ||||||||||||
To Be Well Capitalized
|
37,149 | 5.00 | 27,329 | 5.00 |
2014
|
||||
2015
|
$ | 448 | ||
2016
|
449 | |||
2017
|
369 | |||
2018
|
290 | |||
2019
|
140 | |||
2020 & thereafter
|
662 | |||
$ | 2,358 |
Level I –
|
Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.
|
Level II –
|
Fair value is based on significant inputs, other than Level I inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level II inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets, and other observable inputs.
|
Level III –
|
Fair value would be based on significant unobservable inputs. Examples of valuation methodologies that would result in Level III classification include option pricing models, discounted cash flows, and other similar techniques.
|
(Dollars in thousands)
|
|||||||||
Valuation
|
December 31,
|
||||||||
Technique
|
2014
|
2013
|
|||||||
Available for Sales Securities:
|
|||||||||
U.S. Government Agencies
|
Level II
|
$ | 57,651 | $ | 76,294 | ||||
Equity Securities - Mutual Funds
|
Level I
|
514 | 535 | ||||||
Equity Securities - Other
|
Level I
|
630 | 553 | ||||||
Obligations of States and Political Subdivisions
|
Level II
|
42,381 | 50,502 | ||||||
Mortgage-Backed Securities - Government-Sponsored Enterprises
|
Level II
|
4,273 | 5,926 | ||||||
Total Available for Sale Securities
|
$ | 105,449 | $ | 133,810 |
(Dollars in thousands)
|
Significant
|
||||||||||||||
Valuation
|
Fair Value at December 31,
|
Valuation
|
Significant
|
Unobservable
|
|||||||||||
Financial Asset
|
Technique
|
2014
|
2013
|
Techniques
|
Unobservable Inputs
|
Input Value
|
|||||||||
Impaired Loans
|
Level III
|
$ 1,959
|
$ 3,833
|
Market Comparable Properties
|
Marketability Discount
|
10% |
to
|
30%
|
(1) | ||||||
OREO
|
Level III
|
77
|
229
|
Market Comparable Properties
|
Marketability Discount
|
10% |
to
|
50%
|
(1) |
(1)
|
Range includes discounts taken since appraisal and estimated values.
|
(Dollars in thousands)
|
|||||||||||||||||
2014
|
2013
|
||||||||||||||||
Valuation
Method
|
Carrying
Value
|
Fair
Value
|
Carrying
Value
|
Fair
Value
|
|||||||||||||
Financial Assets:
|
|||||||||||||||||
Cash and Due From Banks:
|
|||||||||||||||||
Interest Bearing
|
Level I
|
$ | 5,933 | $ | 5,933 | $ | 9,333 | $ | 9,333 | ||||||||
Non-Interest Bearing
|
Level I
|
5,818 | 5,818 | 7,084 | 7,084 | ||||||||||||
Investment Securities:
|
|||||||||||||||||
Available for Sale
|
See Above
|
105,449 | 105,449 | 133,810 | 133,810 | ||||||||||||
Held to Maturity
|
Level II
|
504 | 504 | 1,006 | 1,009 | ||||||||||||
Loans, Net
|
Level III
|
680,451 | 695,844 | 373,764 | 384,664 | ||||||||||||
Restricted Stock
|
Level II
|
3,390 | 3,390 | 1,770 | 1,770 | ||||||||||||
Bank-Owned Life Insurance
|
Level II
|
17,735 | 17,735 | 8,702 | 8,702 | ||||||||||||
Accrued Interest Receivable
|
Level I
|
2,543 | 2,543 | 1,866 | 1,866 | ||||||||||||
Financial Liabilities:
|
|||||||||||||||||
Deposits
|
Level III
|
697,494 | 698,418 | 480,335 | 482,704 | ||||||||||||
Short-term Borrowings
|
Level I
|
46,684 | 46,684 | 15,384 | 15,384 | ||||||||||||
Other Borrowed Funds
|
Level III
|
15,136 | 15,305 | 4,000 | 4,148 | ||||||||||||
Accrued Interest Payable
|
Level I
|
348 | 348 | 267 | 267 | ||||||||||||
Off-Balance Sheet Instruments:
|
|||||||||||||||||
Commitments to Extend Credit
|
Level III
|
- | - | - | - |
(Dollars in thousands)
|
||||||||
December 31,
|
||||||||
2014
|
2013
|
|||||||
ASSETS
|
||||||||
Cash and Due From Banks
|
$ | 125 | $ | 973 | ||||
Investment Securities, Available-for-Sale
|
630 | 553 | ||||||
Investment in Community Bank
|
80,388 | 43,494 | ||||||
Other Assets
|
781 | - | ||||||
TOTAL ASSETS
|
$ | 81,924 | $ | 45,020 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Other Liabilities
|
$ | 12 | $ | 15 | ||||
Stockholders Equity
|
81,912 | 45,005 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 81,924 | $ | 45,020 |
(Dollars in thousands)
|
||||||||||||
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Interest and Dividend Income
|
$ | 28 | $ | 19 | $ | - | ||||||
Dividend from bank subsidiary
|
4,607 | 2,071 | 2,053 | |||||||||
Noninterest Income
|
35 | - | - | |||||||||
Noninterest Expense
|
1,972 | 3 | - | |||||||||
Income Before Undistributed Net Income of Subsidiary
and Income Taxes
|
2,698 | 2,087 | 2,053 | |||||||||
Undistributed Net Income of Subsidiary
|
1,399 | 2,169 | 2,164 | |||||||||
Income Before Income Taxes
|
4,097 | 4,256 | 4,217 | |||||||||
Income Taxes
|
(195 | ) | - | - | ||||||||
NET INCOME
|
$ | 4,292 | $ | 4,256 | $ | 4,217 |
(Dollars in thousands)
|
||||||||||||
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
OPERATING ACTIVITIES
|
||||||||||||
Net Income
|
$ | 4,292 | $ | 4,256 | $ | 4,217 | ||||||
Αdjustmеnts to Rеconcilе Net Income to Net Cash
(Used In) Provided By Operating Activities:
|
||||||||||||
Undistributed Net Income of Subsidiary
|
(1,399 | ) | (2,169 | ) | (2,164 | ) | ||||||
Gain on Sales of Investment Securities
|
(35 | ) | - | - | ||||||||
Other, net
|
(34,965 | ) | 4 | - | ||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
|
(32,107 | ) | 2,091 | 2,053 | ||||||||
INVESTING ACTIVITIES
|
||||||||||||
Purchases of Securities
|
(110 | ) | (513 | ) | - | |||||||
Proceeds from Sales of Securities
|
82 | - | - | |||||||||
NET CASH USED IN INVESTING ACTIVITIES
|
(28 | ) | (513 | ) | - | |||||||
FINANCING ACTIVITIES
|
||||||||||||
Cash Dividends Paid
|
(2,333 | ) | (2,072 | ) | (2,053 | ) | ||||||
Treasury Stock, Purchases at Cost
|
(2,896 | ) | - | - | ||||||||
Issuance of Common Stock
|
36,310 | - | - | |||||||||
Exercise of Stock Options
|
206 | 343 | 381 | |||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
31,287 | (1,729 | ) | (1,672 | ) | |||||||
(DECREASE) INCREASE IN CASH AND EQUIVALENTS
|
(848 | ) | (151 | ) | 381 | |||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
973 | 1,124 | 743 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR
|
$ | 125 | $ | 973 | $ | 1,124 |
Three Months Ended
|
||||||||||||||||
2014
|
March 31
|
June 30
|
September 30
|
December 31
|
||||||||||||
Interest Income
|
$ | 4,578 | $ | 4,625 | $ | 4,613 | $ | 7,025 | ||||||||
Interest Expense
|
470 | 443 | 427 | 620 | ||||||||||||
Net Interest Income
|
4,108 | 4,182 | 4,186 | 6,405 | ||||||||||||
Provision for Loan Losses
|
- | - | - | - | ||||||||||||
Net Interest Income after Provision for Loan Losses
|
4,108 | 4,182 | 4,186 | 6,405 | ||||||||||||
Non Interest Income
|
724 | 774 | 855 | 1,465 | ||||||||||||
Non Interest Expense
|
3,457 | 4,047 | 4,034 | 5,260 | ||||||||||||
Income before Income Tax Expense
|
1,375 | 909 | 1,007 | 2,610 | ||||||||||||
Income Tax Expense
|
296 | 170 | 268 | 875 | ||||||||||||
Net Income
|
$ | 1,079 | $ | 739 | $ | 739 | $ | 1,735 | ||||||||
Earnings Per Share - Basic
|
$ | 0.46 | $ | 0.31 | $ | 0.32 | $ | 0.50 | ||||||||
Earnings Per Share - Diluted
|
0.46 | 0.31 | 0.32 | 0.50 | ||||||||||||
Dividends Per Share
|
0.21 | 0.21 | 0.21 | 0.21 |
Three Months Ended
|
||||||||||||||||
2013
|
March 31
|
June 30
|
September 30
|
December 31
|
||||||||||||
Interest Income
|
$ | 4,346 | $ | 4,355 | $ | 4,570 | $ | 4,634 | ||||||||
Interest Expense
|
604 | 566 | 548 | 518 | ||||||||||||
Net Interest Income
|
3,742 | 3,789 | 4,022 | 4,116 | ||||||||||||
Provision for Loan Losses
|
100 | - | - | - | ||||||||||||
Net Interest Income after Provision for Loan Losses
|
3,642 | 3,789 | 4,022 | 4,116 | ||||||||||||
Non Interest Income
|
735 | 857 | 728 | 885 | ||||||||||||
Non Interest Expense
|
3,329 | 3,326 | 3,287 | 3,416 | ||||||||||||
Income before Income Tax Expense
|
1,048 | 1,320 | 1,463 | 1,585 | ||||||||||||
Income Tax Expense
|
188 | 280 | 324 | 368 | ||||||||||||
Net Income
|
$ | 860 | $ | 1,040 | $ | 1,139 | $ | 1,217 | ||||||||
Earnings Per Share - Basic
|
$ | 0.35 | $ | 0.42 | $ | 0.46 | $ | 0.49 | ||||||||
Earnings Per Share - Diluted
|
0.35 | 0.42 | 0.46 | 0.49 | ||||||||||||
Dividends Per Share
|
0.21 | 0.21 | 0.21 | 0.21 |
4.
|
TERMINATION AND TERMINATION PAY
|
(i)
|
The Board may immediately terminate Executive’s employment at any time for a reason other than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason” condition, but the Bank may waive its right to cure. Any termination of Executive’s employment, other than termination for Cause, shall have no effect on or prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive was a participant.
|
(ii)
|
In the event of termination as described under Section 4(e)(i) and subject to the requirements of Section 4(e)(v), the Bank will continue to pay Executive his Base Salary at the rate in effect at Executive’s date of termination for the greater of: (i) 12 months or (ii) the remaining term of this Agreement. Such continued payments will commence on the Bank’s first payroll date immediately following the 30
th
day after Executive’s date of termination and be payable in accordance with the Bank’s regular payroll practices.
|
(iii)
|
In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier of: (A) the completion of the remaining term of this Agreement or (B) the date on which Executive becomes a full-time employee of another employer, provided Executive is entitled to benefits with such other employer that are substantially similar to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”), shall run concurrently with the coverage period provided herein. If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time of such determination. Such cash payment will be made on the Bank’s first payroll date immediately following the 30
th
day after the later of: (i) Executive’s date of termination; or (ii) the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.
|
(iv)
|
“Good Reason” exists if, without Executive’s express written consent, any of the following occurs:
|
(A)
|
a material reduction in Executive’s Base Salary (other than pursuant to Section 3(a)) or benefits provided in this Agreement (other than a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with applicable law));
|
(B)
|
a material reduction in Executive’s authority, duties or responsibilities from the position and attributes associated with the Executive Position;
|
(C)
|
a material breach of this Agreement by the Bank.
|
(v)
|
Notwithstanding the foregoing, Executive will not be entitled to any payments or benefits under this Section 4(e) unless and until Executive executes a release of all claims that Executive or any of Executive’s affiliates or beneficiaries may have against the Bank, the Company or any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act (“ADEA”), but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement. In order to comply with the requirements of Section 409A of the Code and the ADEA, the release must be provided to Executive no later than the date of his Separation from Service and Executive must execute the release within 21 days after the date of termination without subsequent revocation by Executive within seven (7) days after execution of the release.
|
5.
|
CHANGE IN CONTROL
|
(i)
|
Merger
: The Company or the Bank merges into or consolidates with another entity, or merges another bank or corporation into the Bank or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation;
|
(ii)
|
Acquisition of Significant Share Ownership
: There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however, this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;
|
(iii)
|
Change in Board Composition
: During any period of two consecutive years, individuals who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Company’s or the Bank’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the primary federal regulator of the Company or the Bank or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been a director at the beginning of such period; or
|
(iv)
|
Sale of Assets
: The Company or the Bank sells to a third party all or substantially all of its assets.
|
(i)
|
solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective subsidiaries or affiliates, to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of their direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which the Bank has business offices or has filed an application for regulatory approval to establish an office (the “Restricted Territory”);
|
(ii)
|
become an officer, employee, consultant, director, independent contractor, agent, joint venturer, partner or
trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of the Bank or any of their direct or indirect subsidiaries or affiliates, that: (i) has a headquarters within the Restricted Territory or (ii) has one or more offices, but is not headquartered, within the Restricted Territory, but in the latter case, only if Executive would be employed, conduct business or have other responsibilities or duties within the Restricted Territory; or
|
(iii)
|
solicit, provide any information, advice or recommendation or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate an existing business or commercial relationship with the Bank.
|
To the Bank
|
Community Bank
90 West Chestnut Street, Suite 100
Washington, PA 15301
|
To Executive:
|
Most recent address on file with the Bank
|
COMMUNITY BANK
|
|
By:
/s/ Ralph J. Sommers, Jr.
|
|
Name: Ralph J. Sommers, Jr.
|
|
Title: Chairman
|
|
EXECUTIVE
|
|
/s/ Barron P. McCune, Jr.
|
|
Barron P. McCune, Jr.
|
4.
|
TERMINATION AND TERMINATION PAY
|
(i)
|
The Board may immediately terminate Executive’s employment at any time for a reason other than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason” condition, but the Bank may waive its right to cure. Any termination of Executive’s employment, other than termination for Cause, shall have no effect on or prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive was a participant.
|
(ii)
|
In the event of termination as described under Section 4(e)(i) and subject to the requirements of Section 4(e)(v), the Bank will continue to pay Executive his Base Salary at the rate in effect at Executive’s date of termination for the greater of: (i) 12 months or (ii) the remaining term of this Agreement. Such continued payments will commence on the Bank’s first payroll date immediately following the 30
th
day after Executive’s date of termination and be payable in accordance with the Bank’s regular payroll practices.
|
(iii)
|
In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier of: (A) the completion of the remaining term of this Agreement or (B) the date on which Executive becomes a full-time employee of another employer, provided Executive is entitled to benefits with such other employer that are substantially similar to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”), shall run concurrently with the coverage period provided herein. If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time of such determination. Such cash payment will be made on the Bank’s first payroll date immediately following the 30
th
day after the later of: (i) Executive’s date of termination; or (ii) the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.
|
(iv)
|
“Good Reason” exists if, without Executive’s express written consent, any of the following occurs:
|
(A)
|
a material reduction in Executive’s Base Salary (other than pursuant to Section 3(a)) or benefits provided in this Agreement (other than a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with applicable law));
|
(B)
|
a material reduction in Executive’s authority, duties or responsibilities from the position and attributes associated with the Executive Position;
|
(C)
|
a material breach of this Agreement by the Bank.
|
(v)
|
Notwithstanding the foregoing, Executive will not be entitled to any payments or benefits under this Section 4(e) unless and until Executive executes a release of all claims that Executive or any of Executive’s affiliates or beneficiaries may have against the Bank, the Company or any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act (“ADEA”), but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement. In order to comply with the requirements of Section 409A of the Code and the ADEA, the release must be provided to Executive no later than the date of his Separation from Service and Executive must execute the release within 21 days after the date of termination without subsequent revocation by Executive within seven (7) days after execution of the release.
|
5.
|
CHANGE IN CONTROL
|
(i)
|
Merger
: The Company or the Bank merges into or consolidates with another entity, or merges another bank or corporation into the Bank or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation;
|
(ii)
|
Acquisition of Significant Share Ownership
: There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however, this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;
|
(iii)
|
Change in Board Composition
: During any period of two consecutive years, individuals who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Company’s or the Bank’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the primary federal regulator of the Company or the Bank or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been a director at the beginning of such period; or
|
(iv)
|
Sale of Assets
: The Company or the Bank sells to a third party all or substantially all of its assets.
|
(i)
|
solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective subsidiaries or affiliates, to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of their direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which the Bank has business offices or has filed an application for regulatory approval to establish an office (the “Restricted Territory”);
|
(ii)
|
become an officer, employee, consultant, director, independent contractor, agent, joint venturer, partner or
trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of the Bank or any of their direct or indirect subsidiaries or affiliates, that: (i) has a headquarters within the Restricted Territory or (ii) has one or more offices, but is not headquartered, within the Restricted Territory, but in the latter case, only if Executive would be employed, conduct business or have other responsibilities or duties within the Restricted Territory; or
|
(iii)
|
solicit, provide any information, advice or recommendation or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate an existing business or commercial relationship with the Bank.
|
To the Bank
|
Community Bank
90 West Chestnut Street, Suite 100
Washington, PA 15301
|
To Executive:
|
Most recent address on file with the Bank
|
COMMUNITY BANK
|
|
By:
/s/ Barron P. McCune, Jr.
|
|
Name: Barron P. McCune, Jr.
|
|
Title: President and Chief Executive Officer
|
|
EXECUTIVE
|
|
/s/ Kevin D. Lemley
|
|
Kevin D. Lemley
|
4.
|
TERMINATION AND TERMINATION PAY
|
(i)
|
The Board may immediately terminate Executive’s employment at any time for a reason other than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason” condition, but the Bank may waive its right to cure. Any termination of Executive’s employment, other than termination for Cause, shall have no effect on or prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive was a participant.
|
(ii)
|
In the event of termination as described under Section 4(e)(i) and subject to the requirements of Section 4(e)(v), the Bank will continue to pay Executive his Base Salary at the rate in effect at Executive’s date of termination for the greater of: (i) 12 months or (ii) the remaining term of this Agreement. Such continued payments will commence on the Bank’s first payroll date immediately following the 30
th
day after Executive’s date of termination and be payable in accordance with the Bank’s regular payroll practices.
|
(iii)
|
In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier of: (A) the completion of the remaining term of this Agreement or (B) the date on which Executive becomes a full-time employee of another employer, provided Executive is entitled to benefits with such other employer that are substantially similar to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”), shall run concurrently with the coverage period provided herein. If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time of such determination. Such cash payment will be made on the Bank’s first payroll date immediately following the 30
th
day after the later of: (i) Executive’s date of termination; or (ii) the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.
|
(iv)
|
“Good Reason” exists if, without Executive’s express written consent, any of the following occurs:
|
(A)
|
a material reduction in Executive’s Base Salary (other than pursuant to Section 3(a)) or benefits provided in this Agreement (other than a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with applicable law));
|
(B)
|
a material reduction in Executive’s authority, duties or responsibilities from the position and attributes associated with the Executive Position;
|
(C)
|
a material breach of this Agreement by the Bank.
|
(v)
|
Notwithstanding the foregoing, Executive will not be entitled to any payments or benefits under this Section 4(e) unless and until Executive executes a release of all claims that Executive or any of Executive’s affiliates or beneficiaries may have against the Bank, the Company or any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act (“ADEA”), but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement. In order to comply with the requirements of Section 409A of the Code and the ADEA, the release must be provided to Executive no later than the date of his Separation from Service and Executive must execute the release within 21 days after the date of termination without subsequent revocation by Executive within seven (7) days after execution of the release.
|
5.
|
CHANGE IN CONTROL
|
(i)
|
Merger
: The Company or the Bank merges into or consolidates with another entity, or merges another bank or corporation into the Bank or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation;
|
(ii)
|
Acquisition of Significant Share Ownership
: There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however, this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;
|
(iii)
|
Change in Board Composition
: During any period of two consecutive years, individuals who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Company’s or the Bank’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the primary federal regulator of the Company or the Bank or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been a director at the beginning of such period; or
|
(iv)
|
Sale of Assets
: The Company or the Bank sells to a third party all or substantially all of its assets.
|
(i)
|
solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective subsidiaries or affiliates, to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of their direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which the Bank has business offices or has filed an application for regulatory approval to establish an office (the “Restricted Territory”);
|
(ii)
|
become an officer, employee, consultant, director, independent contractor, agent, joint venturer, partner or
trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of the Bank or any of their direct or indirect subsidiaries or affiliates, that: (i) has a headquarters within the Restricted Territory or (ii) has one or more offices, but is not headquartered, within the Restricted Territory, but in the latter case, only if Executive would be employed, conduct business or have other responsibilities or duties within the Restricted Territory; or
|
(iii)
|
solicit, provide any information, advice or recommendation or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate an existing business or commercial relationship with the Bank.
|
To the Bank
|
Community Bank
90 West Chestnut Street, Suite 100
Washington, PA 15301
|
To Executive:
|
Most recent address on file with the Bank
|
COMMUNITY BANK
|
|||
By: |
/s/ Barron P. McCune, Jr.
|
||
Name: |
Barron P. McCune, Jr.
|
||
Title: |
President and Chief Executive Officer
|
||
EXECUTIVE
|
|||
/s/ Ralph Burchianti | |||
Ralph Burchianti
|
4.
|
TERMINATION AND TERMINATION PAY
|
(i)
|
The Board may immediately terminate Executive’s employment at any time for a reason other than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason” condition, but the Bank may waive its right to cure. Any termination of Executive’s employment, other than termination for Cause, shall have no effect on or prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive was a participant.
|
(ii)
|
In the event of termination as described under Section 4(e)(i) and subject to the requirements of Section 4(e)(v), the Bank will continue to pay Executive his Base Salary at the rate in effect at Executive’s date of termination for the greater of: (i) 12 months or (ii) the remaining term of this Agreement. Such continued payments will commence on the Bank’s first payroll date immediately following the 30
th
day after Executive’s date of termination and be payable in accordance with the Bank’s regular payroll practices.
|
(iii)
|
In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier of: (A) the completion of the remaining term of this Agreement or (B) the date on which Executive becomes a full-time employee of another employer, provided Executive is entitled to benefits with such other employer that are substantially similar to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”), shall run concurrently with the coverage period provided herein. If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time of such determination. Such cash payment will be made on the Bank’s first payroll date immediately following the 30
th
day after the later of: (i) Executive’s date of termination; or (ii) the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.
|
(iv)
|
“Good Reason” exists if, without Executive’s express written consent, any of the following occurs:
|
(A)
|
a material reduction in Executive’s Base Salary (other than pursuant to Section 3(a)) or benefits provided in this Agreement (other than a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with applicable law));
|
(B)
|
a material reduction in Executive’s authority, duties or responsibilities from the position and attributes associated with the Executive Position;
|
(C)
|
a material breach of this Agreement by the Bank.
|
(v)
|
Notwithstanding the foregoing, Executive will not be entitled to any payments or benefits under this Section 4(e) unless and until Executive executes a release of all claims that Executive or any of Executive’s affiliates or beneficiaries may have against the Bank, the Company or any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act (“ADEA”), but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement. In order to comply with the requirements of Section 409A of the Code and the ADEA, the release must be provided to Executive no later than the date of his Separation from Service and Executive must execute the release within 21 days after the date of termination without subsequent revocation by Executive within seven (7) days after execution of the release.
|
5.
|
CHANGE IN CONTROL
|
(i)
|
Merger
: The Company or the Bank merges into or consolidates with another entity, or merges another bank or corporation into the Bank or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation;
|
(ii)
|
Acquisition of Significant Share Ownership
: There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however, this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;
|
(iii)
|
Change in Board Composition
: During any period of two consecutive years, individuals who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Company’s or the Bank’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the primary federal regulator of the Company or the Bank or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been a director at the beginning of such period; or
|
(iv)
|
Sale of Assets
: The Company or the Bank sells to a third party all or substantially all of its assets.
|
(i)
|
solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective subsidiaries or affiliates, to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of their direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which the Bank has business offices or has filed an application for regulatory approval to establish an office (the “Restricted Territory”);
|
(ii)
|
become an officer, employee, consultant, director, independent contractor, agent, joint venturer, partner or
trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of the Bank or any of their direct or indirect subsidiaries or affiliates, that: (i) has a headquarters within the Restricted Territory or (ii) has one or more offices, but is not headquartered, within the Restricted Territory, but in the latter case, only if Executive would be employed, conduct business or have other responsibilities or duties within the Restricted Territory; or
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(iii)
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solicit, provide any information, advice or recommendation or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate an existing business or commercial relationship with the Bank.
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To the Bank
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Community Bank
90 West Chestnut Street, Suite 100
Washington, PA 15301
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To Executive:
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Most recent address on file with the Bank
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COMMUNITY BANK
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By:
/s/ Barron P. McCune, Jr.
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Name: Barron P. McCune, Jr.
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Title: President and Chief Executive Officer
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EXECUTIVE
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/s/ Ralph J. Sommers, Jr.
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Ralph J. Sommers, Jr.
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Name | Ownership | |
Community Bank (Pennsylvania-chartered) | 100% owned by CB Financial Services, Inc. | |
Exchange Underwriters, Inc. (Pennsylvania-incorporated)
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100% owned by Community Bank |
1.
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I have reviewed this annual report on Form 10-K of CB Financial Services, Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
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a)
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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;
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b)
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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
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c)
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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
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5.
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The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of 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
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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March 26, 2015
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/s/ Barron P. McCune, Jr. | |
Date | Barron P. McCune, Jr. | |
President and Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K of CB Financial Services, Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
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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;
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b)
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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
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c)
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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
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5.
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The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of 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
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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March 26, 2015 | /s/ Kevin D. Lemley | |
Date |
Kevin D. Lemley
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Executive Vice President and Chief Financial Officer
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(1)
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the Report fully complies with the requirements of Sections 13(a) of the Securities Exchange Act of 1934; and
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(2)
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the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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March 26, 2015 | /s/ Barron P. McCune, Jr. | |
Date | Barron P. McCune, Jr. | |
President and Chief Executive Officer
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March 26, 2015 | /s/ Kevin D. Lemley | |
Date |
Kevin D. Lemley
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Executive Vice President and Chief Financial Officer
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