citizens financial services, inc. reports unaudited third quarter 2021 financial results

MANSFIELD, PENNSYLVANIA— October 22, 2021 – Citizens Financial Services, Inc. (OTC Pink: CZFS), parent company of First Citizens Community Bank, released today its unaudited consolidated financial results for the three and nine months ended September 30, 2021.

Highlights

•	Net income was $22.2 million for the nine months ended September 30, 2021, which is 24.0% higher than the net income for 2020’s comparable period. The effective tax rate for the nine months ended September 30, 2021 was 17.3% compared to 17.2% in the comparable period in 2020.

•	Net income was $7.1 million for the three months ended September 30, 2021, which is 11.8% less than the net income for 2020’s comparable period. The effective tax rate for the three months ended September 30, 2021 was 18.3% compared to 18.0% in the comparable period in 2020.

•	Net interest income before the provision for loan losses was $49.2 million for the nine months ended September 30, 2021, an increase of $3.6 million, or 7.9%, over the same period a year ago.

•	Non-performing assets decreased $2.9 million from year end and $5.4 million since September 30, 2020 and totaled $10,218,000 as of September 30, 2021. As a percent of loans, non-performing assets totaled 0.71%, 0.93% and 1.14% as of September 30, 2021, December 31, 2020 and September 30, 2020.

•	Return on average equity for the three and nine months (annualized) ended September 30, 2021 was 13.65% and 14.66% compared to 17.36% and 13.85% for the three and nine months (annualized) ended September 30, 2020.

•	Return on average tangible equity for the three and nine months (annualized) ended September 30, 2021 was 16.25% and 17.53% compared to 21.11% and 16.72% for the three and nine months (annualized) ended September 30, 2020 (non-GAAP). (1)

•	Return on average assets for the three and nine months (annualized) ended September 30, 2021 was 1.40% and 1.49% compared to 1.75% and 1.43% for the three and nine months (annualized) ended September 30, 2020.

Covid 19 pandemic response and loan profile

•

During 2021, the Company participated in the Paycheck Protection Program (PPP) for loans provided under the auspices of the Small Business Administration (SBA). As of September 30, 2021, 267 loans with a balance of $20.8 million remain outstanding under this program. From January 1, 2021 to September 30, 2021, we issued 388 loans with aggregate balances of $24.3 million. As of September 30, 2021, 26 loans that were issued under this program in 2020 remain outstanding and have a balance of $2.9 million. The loans earn interest at 1% per annum and the processing fee paid by the SBA will be accreted into income over the life of the loans. The SBA has issued guidance for forgiveness with a streamlined approach for loans of $150,000 or less. Of the PPP loans outstanding, 226 loans, or 84.6% of the remaining PPP loans, had an original balance less than $150,000. The outstanding balance for these 226 loans as of September 30, 2021 was approximately $7.1 million.

•

Under our COVID loan modification program, during 2021 we provided relief to 19 customers with outstanding balances of $26.7 million, which includes residential, commercial and agricultural customers. As of September 30, 2021, all loans had returned to their original terms that were modified under this program.

•

The Company tracks industry concentrations to identify risks that could lead to additional credit exposure. As a result of the Covid 19 pandemic, the Company has determined that Hotels/Motels, restaurants, and amusement/theme parks represent a higher level of credit risk. At September 30, 2021, the Company had limited loan concentrations to these industries as follows:

o	Hotels/Motels - $73.3 million or 5.1% of outstanding loans

o	Restaurants - $25.3 million or 1.8% of outstanding loans

o	Amusement/Theme parks - $9.4 million, or 0.7% of outstanding loans

Nine Months Ended September 30, 2021 Compared to 2020

•

For the nine months ended September 30, 2021, net income totaled $22,174,000 which compares to net income of $17,876,000 for the first nine months of 2020, an increase of $4,298,000 or 24.0%.  Basic earnings per share of $5.62 for the first nine months of 2021 compares to $4.69 for the first nine months last year.  Annualized return on equity for the nine months ended September 30, 2021 and 2020 was 14.66% and 13.85%, while annualized return on assets was 1.49% and 1.43%, respectively.

•

Net interest income before the provision for loan loss for the nine months ended September 30, 2021 totaled $49,243,000 compared to $45,646,000 for the nine months ended September 30, 2020, resulting in an increase of $3,597,000, or 7.9%.  Average interest earning assets increased $312.6 million for the nine months ended September 30, 2021 compared to the same period last year, primarily due to the assets acquired as part of the MidCoast acquisition in the second quarter of 2020 being outstanding for the entire period of 2021 and organic growth primarily in the Delaware region. Average loans increased $158.1 million while average investment securities increased $82.1 million. The yield on interest earning assets decreased 55 basis points to 3.94%, while the cost of interest-bearing liabilities decreased 17 basis points to 0.51%. The yield on interest earning assets in 2020 benefitted approximately $820,000, or 5 basis points from the pay-off of two purchase credit impaired loans acquired as part of The First National Bank of Fredericksburg acquisition in 2015.  The decrease in the cost of interest-bearing liabilities was due to the Federal Reserve rate cuts made in response to the COVID-19 pandemic in the first quarter of 2020. The tax effected net interest margin for the nine months ended September 30, 2021 was 3.55% compared to 3.96% for the same period last year.

•

The provision for loan losses for the nine months ended September 30, 2021 was $1,550,000 compared to $1,500,000 for the nine months ended September 30, 2020, an increase of $50,000.  The increase in the provision is attributable to loans maturing that were acquired as part of the MidCoast acquisition, which were refinanced with the Company and are subject to the Company’s allowance calculation.

•

Total non-interest income was $9,793,000 for the nine months ended September 30, 2021, which is $2,335,000 more than the non-interest income of $7,458,000 for the same period last year. The primary drivers were the earnings of bank owned life insurance, which increased $1,129,000 as the result of the passing of two former employees, an increase in equity security gains of $564,000 as a result of market performance and an increase in service charge income of $372,000 as a result of waiving fees in 2020 in response to the pandemic.

•

Total non-interest expenses for the nine months ended September 30, 2021 totaled $30,667,000 compared to $30,026,000 for the same period last year, which is an increase of $641,000. The primary driver of the increase was salary and benefit costs and occupancy costs, which increased compared to the same period in 2020 due to the additional headcount and branches acquired as part of the MidCoast acquisition.

•

The provision for income taxes increased $943,000 when comparing the nine months ended September 30, 2021 to the same period in 2020 as a result of an increase in income before income tax of $5,241,000. The effective tax rate was 17.3% and 17.2% for the nine months ended September 30, 2021 and 2020, respectively. It should be noted the earnings on bank owned life insurance are exempt from federal income tax.

Third Quarter of 2021 Compared to the Third Quarter of 2020

•

For the three months ended September 30, 2021, net income totaled $7,064,000 which compares to net income of $8,007,000 for the comparable period of 2020, a decrease of $943,000 or 11.9%.  Basic earnings per share of $1.79 for the three months ended September 30, 2021 compares to $2.02 for the 2020 comparable period. Annualized return on equity for the three months ended September 30, 2021 and 2020 was 13.65% and 17.36%, while annualized return on assets was 1.40% and 1.75%, respectively.

•

Net interest income before the provision for loan losses for the three months ended September 30, 2021 totaled $16,590,000 compared to $16,470,000 for the three months ended September 30, 2020, resulting in an increase of $120,000. Average interest earning assets increased $202.9 million for the three months ended September 30, 2021 compared to the same period last year as a result of the  organic loan and deposit growth.  Average loans increased $66.3 million while average investment securities increased $95.1 million and average interest bearing cash holdings increased $43.4 million. The tax effected net interest margin for the three months ended September 30, 2021 was 3.47% compared to 3.88% for the same period last year, which was impacted by the decrease in the average yield on interest earning assets of 49 basis points to 3.83%.

•	The provision for loan losses for the three months ended September 30, 2021 was $400,000, a $150,000 decrease to the comparable period in 2020. The decrease in the provision is attributable to the impact the COVID-19 pandemic had on the local and national economy in the third quarter of 2020.

•

Total non-interest income was $2,852,000 for the three months ended September 30, 2021, which is $686,000 less than the comparable period last year.  The primary drivers were a decrease in the gains on loans sold of $560,000 due to a decrease in the amount of loans sold compared to the third quarter of 2020 and a decrease in other income of $330,000 due to fee income on derivative transactions for customers.

•

Total non-interest expenses for the three months ended September 30, 2021 totaled $10,400,000 compared to $9,692,000 for the same period last year, which is an increase of $708,000, or 7.3%. The primary driver of the increase was salary and benefit costs, which increased compared to the same period in 2020 due to the additional headcount in the Delaware region. Other expenses increased $318,000 due to computer, data and appraisal expenses.

•

The provision for income taxes decreased $181,000 when comparing the three months ended September 30, 2021 to the same period in 2020 as a result of a decrease in income before income tax of $1,124,000.  The effective tax rate was 18.3% and 18.0% for the three months ended September 30, 2021 and 2020, respectively.

Balance Sheet and Other Information:

•	At September 30, 2021, total assets were $2.05 billion compared to $1.89 billion at December 31, 2020 and $1.86 billion at September 30, 2020. The loan to deposit ratio as of September 30, 2021 was 82.88% compared to 88.45% as of December 31, 2020 and 87.96% as of September 30, 2020.

•

Available for sale securities of $397.0 million at September 30, 2021 increased $101.9 million from December 31, 2020 and $109.2 million from September 30, 2020. The yield on the investment portfolio decreased from 2.66% to 2.05% on a tax equivalent basis due to securities purchased at a discount that were called in the first quarter of 2020 and purchases made in a lower rate environment in the second half of 2020 and all of 2021.

•	Net loans as of September 30, 2021 totaled $1.43 billion and increased $36.1 million from December 31, 2020 as a result of organic growth in the Delaware market offset by PPP forgiveness.

•

The allowance for loan losses totaled $17,334,000 at September 30, 2021 which is an increase of $1,519,000 from December 31, 2020.  The increase is due to recording a provision for loan losses of $1,550,000 and recoveries of $118,000, offset by charge-offs of $149,000. The allowance as a percent of total loans was 1.20% as of September 30, 2021 and 1.13% as of December 31, 2020.

•

Deposits increased $152.1 million from December 31, 2020, to $1.74 billion at September 30, 2021, primarily due to customers holding more cash due to the pandemic and government stimulus funds provided to customers. Brokered CD’s decreased $23.8 million.  Non-interest-bearing deposits increased $53.3 million due to the PPP program and additional cash holdings by customers.

•

Stockholders’ equity totaled $209.0 million at September 30, 2021, compared to $194.3 million at December 31, 2020, an increase of $14.7 million. The increase was attributable to net income for the nine months ended September 30, 2021 totaling $22.2 million, offset by cash dividends totaling $5.5 million and net treasury stock activity of $468,000.  As a result of changes in interest rates impacting the fair value of investment securities and derivative instruments, accumulated other comprehensive income, decreased $1.6 million from December 31, 2020.

Dividend Declared

On September 7, 2021, the Board of Directors declared a cash dividend of $0.470 per share, which was paid on September 30, 2021 to shareholders of record at the close of business on September 16, 2021. This quarterly cash dividend is an increase of 3.10% over the regular cash dividend of $0.456 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2021.

Citizens Financial Services, Inc. has nearly 1,900 shareholders, the majority of whom reside in markets where its offices are located.

Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.  Forward-looking statements are not guarantees of future performance.  Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.  Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere periodically by the Company or on its behalf.  The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

CITIZENS FINANCIAL SERVICES, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(UNAUDITED)
(Dollars in thousands, except share and per share data)
		As of or For The								As of or For The
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2021				2020				2021				2020
Income and Performance Ratios
Net Income		$	7,064			$	8,007			$	22,174			$	17,876
Return on average assets (annualized)			1.40	%			1.75	%			1.49	%			1.43	%
Return on average equity (annualized)			13.65	%			17.36	%			14.66	%			13.85	%
Return on average tangible equity (annualized) (a)			16.25	%			21.11	%			17.53	%			16.72	%
Net interest margin (tax equivalent)(a)			3.47	%			3.88	%			3.55	%			3.96	%
Earnings per share - basic (b)		$	1.79			$	2.02			$	5.62			$	4.69
Earnings per share - diluted (b)		$	1.79			$	2.02			$	5.62			$	4.69
Cash dividends paid per share (b)		$	0.470			$	0.456			$	1.391			$	1.445
Number of shares used in computation - basic (b)			3,949,508				3,956,997				3,945,962				3,808,264
Number of shares used in computation - diluted (b)			3,949,603				3,956,997				3,945,969				3,810,289
Asset quality
Allowance for loan and lease losses		$	17,334			$	15,169
Non-performing assets		$	10,218			$	15,631
Allowance for loan and lease losses/total loans			1.20	%			1.11	%
Non-performing assets to total loans			0.71	%			1.14	%
Annualized net  charge-offs (recoveries) to total loans			0.00	%			0.06	%			0.00	%			0.02	%
Equity
Book value per share (b)		$	52.63			$	47.02
Tangible Book value per share (a) (b)		$	44.27			$	38.71
Market Value (Last reported trade of month)		$	62.50			$	44.00
Common shares outstanding			3,952,081				3,921,408
Other
Average Full Time Equivalent Employees			297.2				289.6
Loan to Deposit Ratio			82.88	%			87.96	%
Trust assets under management		$	148,360			$	137,127
Brokerage assets under management		$	273,488			$	227,134
Balance Sheet Highlights		September 30,				December 31,				September 30,
			2021				2020				2020
Assets		$	2,047,203			$	1,891,674			$	1,858,344
Investment securities			399,262				297,120				289,534
Loans (net of unearned income)			1,442,908				1,405,281				1,365,879
Allowance for loan losses			17,334				15,815				15,169
Deposits			1,740,969				1,588,858				1,552,753
Stockholders' Equity			208,967				194,259				189,051
(a) See reconcilation of GAAP and Non-GAAP measures at the end of the press release
(b) Prior period amounts were adjusted to reflect stock dividends.

CITIZENS FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
		September 30,				December 31,				September 30,
(in thousands except share data)		2021				2020				2020
ASSETS:
Cash and due from banks:
Noninterest-bearing		$	17,466			$	16,374			$	15,922
Interest-bearing			84,505				52,333				59,387
Total cash and cash equivalents			101,971				68,707				75,309
Interest bearing time deposits with other banks			11,274				13,758				13,758
Equity securities			2,219				1,931				1,696
Available-for-sale securities			397,043				295,189				287,838
Loans held for sale			3,199				14,640				19,320
Loans (net of allowance for loan losses: $17,334 at September 30, 2021;
$15,815 at December 31, 2020 and $15,169 at September 30, 2020)			1,425,574				1,389,466				1,350,710
Premises and equipment			17,201				16,948				17,720
Accrued interest receivable			5,231				5,998				6,164
Goodwill			31,376				31,376				31,376
Bank owned life insurance			30,518				32,589				32,408
Other intangibles			1,677				1,668				1,538
Other assets			19,920				19,404				20,507
TOTAL ASSETS		$	2,047,203			$	1,891,674			$	1,858,344
LIABILITIES:
Deposits:
Noninterest-bearing		$	357,078			$	303,762			$	276,286
Interest-bearing			1,383,891				1,285,096				1,276,467
Total deposits			1,740,969				1,588,858				1,552,753
Borrowed funds			78,200				88,838				99,602
Accrued interest payable			823				1,017				1,006
Other liabilities			18,244				18,702				15,932
TOTAL LIABILITIES			1,838,236				1,697,415				1,669,293
STOCKHOLDERS' EQUITY:
Preferred Stock $1.00 par value; authorized
3,000,000 shares; none issued in 2021 or 2020			-				-				-
Common stock
$1.00 par value; authorized 25,000,000 shares at September 30, 2021, December 31, 2020 and
September 30, 2020: issued 4,388,901 at September 30, 2021 and 4,350,342 at December 31, 2020 and
September 30, 2020			4,389				4,350				4,350
Additional paid-in capital			78,370				75,908				75,867
Retained earnings			140,920				126,627				121,203
Accumulated other comprehensive income			969				2,587				2,865
Treasury stock, at cost:  436,820 at September 30, 2021 and 428,492 shares
at December 31, 2020 and 428,934 shares at September 30, 2020			(15,681	)			(15,213	)			(15,234	)
TOTAL STOCKHOLDERS' EQUITY			208,967				194,259				189,051
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY		$	2,047,203			$	1,891,674			$	1,858,344

CITIZENS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
(in thousands, except share and per share data)		2021				2020				2021				2020
INTEREST INCOME:
Interest and fees on loans		$	16,505			$	16,718			$	49,569			$	46,763
Interest-bearing deposits with banks			118				106				335				298
Investment securities:
Taxable			1,074				979				2,865				3,212
Nontaxable			561				485				1,652				1,337
Dividends			84				98				291				275
TOTAL INTEREST INCOME			18,342				18,386				54,712				51,885
INTEREST EXPENSE:
Deposits			1,422				1,635				4,545				5,279
Borrowed funds			330				281				924				960
TOTAL INTEREST EXPENSE			1,752				1,916				5,469				6,239
NET INTEREST INCOME			16,590				16,470				49,243				45,646
Provision for loan losses			400				550				1,550				1,500
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES			16,190				15,920				47,693				44,146
NON-INTEREST INCOME:
Service charges			1,210				1,112				3,479				3,107
Trust			182				199				674				542
Brokerage and insurance			408				352				1,190				941
Gains on loans sold			295				855				1,109				1,282
Equity security gains (losses), net			72				(33	)			288				(276	)
Available for sale security gains, net			162				185				212				302
Earnings on bank owned life insurance			165				180				1,643				514
Other			358				688				1,198				1,046
TOTAL NON-INTEREST INCOME			2,852				3,538				9,793				7,458
NON-INTEREST EXPENSES:
Salaries and employee benefits			6,568				6,102				19,312				17,411
Occupancy			728				714				2,222				1,891
Furniture and equipment			123				267				407				587
Professional fees			310				417				1,153				1,180
FDIC insurance expense			129				135				387				341
Pennsylvania shares tax			339				275				856				809
Amortization of intangibles			48				57				146				162
Merger and acquisition			-				-				-				2,179
Software expenses			336				324				1,003				817
ORE expenses			130				30				383				221
Other			1,689				1,371				4,798				4,428
TOTAL NON-INTEREST EXPENSES			10,400				9,692				30,667				30,026
Income before provision for income taxes			8,642				9,766				26,819				21,578
Provision for income taxes			1,578				1,759				4,645				3,702
NET INCOME		$	7,064			$	8,007			$	22,174			$	17,876
PER COMMON SHARE DATA:
Net Income - Basic		$	1.79			$	2.02			$	5.62			$	4.69
Net Income - Diluted		$	1.79			$	2.02			$	5.62			$	4.69
Cash Dividends Paid		$	0.470			$	0.456			$	1.391			$	1.445
Number of shares used in computation - basic			3,949,508				3,956,997				3,945,962				3,808,264
Number of shares used in computation - diluted			3,949,603				3,956,997				3,945,969				3,810,289

CITIZENS FINANCIAL SERVICES, INC.
CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS
(UNAUDITED)
		Three Months Ended September 30,
		2021												2020
		Average								Average				Average								Average
		Balance (1)				Interest				Rate				Balance (1)				Interest				Rate
(dollars in thousands)		$								$	%			$								$	%
ASSETS
Short-term investments:
Interest-bearing deposits at banks			111,392				40				0.14				67,954				14				0.08
Total short-term investments			111,392				40				0.14				67,954				14				0.08
Interest bearing time deposits at banks			12,129				78				2.55				14,143				92				2.59
Investment securities:
Taxable			264,740				1,158				1.75				192,641				1,077				2.24
Tax-exempt (3)			107,125				709				2.65				84,097				614				2.92
Investment securities			371,865				1,867				2.01				276,738				1,691				2.45
Loans: (2)(3)(4)
Residential mortgage loans			203,426				2,417				4.71				209,161				2,807				5.34
Construction loans			67,780				671				3.93				29,087				356				4.87
Commercial Loans			745,313				8,976				4.78				652,380				8,472				5.17
Agricultural Loans			344,365				3,728				4.29				356,164				3,971				4.44
Loans to state & political subdivisions			49,673				437				3.49				83,671				872				4.15
Other loans			16,678				347				8.25				30,460				401				5.24
Loans, net of discount (2)(3)(4)			1,427,235				16,576				4.61				1,360,923				16,879				4.93
Total interest-earning assets			1,922,621				18,561				3.83				1,719,758				18,676				4.32
Cash and due from banks			6,542												7,350
Bank premises and equipment			17,259												17,802
Other assets			71,329												90,238
Total non-interest earning assets			95,130												115,390
Total assets			2,017,751												1,835,148
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts			466,981				383				0.33				406,635				211				0.21
Savings accounts			297,470				74				0.10				247,414				96				0.15
Money market accounts			258,872				163				0.25				218,682				215				0.39
Certificates of deposit			336,782				802				0.94				382,551				1,113				1.16
Total interest-bearing deposits			1,360,105				1,422				0.41				1,255,282				1,635				0.52
Other borrowed funds			80,275				330				1.63				98,350				281				1.14
Total interest-bearing liabilities			1,440,380				1,752				0.48				1,353,632				1,916				0.56
Demand deposits			358,716												280,457
Other liabilities			11,683												16,611
Total non-interest-bearing liabilities			370,399												297,068
Stockholders' equity			206,972												184,448
Total liabilities & stockholders' equity			2,017,751												1,835,148
Net interest income							16,809												16,760
Net interest spread (5)											3.35	%											3.76	%
Net interest income as a percentage
of average interest-earning assets											3.47	%											3.88	%
Ratio of interest-earning assets
to interest-bearing liabilities											133	%											127	%
(1) Averages are based on daily averages.
(2) Includes loan origination and commitment fees.
(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using
a statutory federal income tax rate of 21% for 2021 and 2020. See reconciliation of GAAP and non-gaap measures at the end
of the press release
(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.
(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets
and the average rate paid on interest-bearing liabilities.

CITIZENS FINANCIAL SERVICES, INC.
CONSOLIDATED SUMMARY OF LOANS BY TYPE; NON-PERFORMING ASSETS; and ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
(Excludes Loans Held for Sale)
(In Thousands)
		September 30,				June 30,				March 31,				December 31,				September 30,
		2021				2021				2021				2020				2020
Real estate:
Residential		$	204,853			$	202,171			$	203,273			$	201,911			$	208,084
Commercial			657,485				641,633				605,547				596,255				535,456
Agricultural			312,442				310,274				315,313				315,158				310,702
Construction			68,408				63,065				42,651				35,404				28,656
Consumer			31,042				8,684				26,181				30,277				30,625
Other commercial loans			92,188				104,349				109,168				114,169				129,731
Other agricultural loans			28,562				33,720				41,378				48,779				40,790
State & political subdivision loans			47,928				51,213				60,890				63,328				81,835
Total loans			1,442,908				1,415,109				1,404,401				1,405,281				1,365,879
Less: allowance for loan losses			17,334				16,931				16,560				15,815				15,169
Net loans		$	1,425,574			$	1,398,178			$	1,387,841			$	1,389,466			$	1,350,710
Past due and non-performing assets
Total Loans past due 30-89 days and still accruing		$	1,482			$	1,495			$	2,383			$	4,120			$	3,449
Non-accrual loans		$	8,858			$	9,082			$	10,680			$	10,732			$	11,711
Loans past due 90 days or more and accruing			83				49				478				525				1,194
Non-performing loans		$	8,941			$	9,131			$	11,158			$	11,257			$	12,905
OREO			1,277				1,811				1,720				1,836				2,726
Total Non-performing assets		$	10,218			$	10,942			$	12,878			$	13,093			$	15,631
		3 Months				3 Months				3 Months				3 Months				3 Months
		Ended				Ended				Ended				Ended				Ended
Analysis of the Allowance for loan Losses		September 30,				June 30,				March 31,				December 31,				September 30,
(In Thousands)			2021				2021				2021				2020				2020
Balance, beginning of period		$	16,931			$	16,560			$	15,815			$	15,169			$	14,827
Charge-offs			(7	)			(138	)			(4	)			(276	)			(237	)
Recoveries			10				9				99				22				29
Net (charge-offs) recoveries			3				(129	)			95				(254	)			(208	)
Provision for loan losses			400				500				650				900				550
Balance, end of period		$	17,334			$	16,931			$	16,560			$	15,815			$	15,169