EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

Graphic

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

    

AS OF OR FOR THE

    

 

THREE MONTHS ENDED

%

 

March 31, 

INCREASE

 

    

2021

    

2020

    

(DECREASE)

 

EARNINGS PERFORMANCE

 

  

 

  

 

  

Net Income

$

8,787

$

4,166

 

110.92

%

Return on Average Assets (Annualized)

 

1.57

%  

 

1.02

%  

53.92

%

Return on Average Equity (Annualized)

 

11.72

%  

 

6.74

%  

73.89

%

BALANCE SHEET HIGHLIGHTS

 

  

 

  

 

  

Total Assets

$

2,333,595

$

1,629,445

 

43.21

%

Available-for-Sale Debt Securities

 

366,376

 

342,416

 

7.00

%

Loans (Net)

 

1,602,926

 

1,156,143

 

38.64

%

Allowance for Loan Losses

 

11,661

 

11,330

 

2.92

%

Deposits

 

1,923,925

 

1,249,912

 

53.92

%

OFF-BALANCE SHEET

 

  

 

  

 

  

Outstanding Balance of Mortgage Loans Sold with Servicing Retained

$

295,504

$

182,410

 

62.00

%

Trust Assets Under Management

 

1,142,573

 

869,636

 

31.39

%

STOCKHOLDERS' VALUE (PER COMMON SHARE)

 

  

 

  

 

  

Net Income - Basic

$

0.55

$

0.30

 

83.33

%

Net Income - Diluted

$

0.55

$

0.30

 

83.33

%

Dividends - Quarterly

$

0.27

$

0.27

 

0.00

%

Common Book Value

$

18.75

$

18.22

 

2.91

%

Tangible Common Book Value (a)

$

15.24

$

16.08

 

(5.22)

%

Market Value (Last Trade)

$

23.78

$

20.00

 

18.90

%

Market Value / Common Book Value

 

126.83

%  

 

109.77

%  

15.54

%

Market Value / Tangible Common Book Value

 

156.04

%  

 

124.38

%  

25.45

%

Price Earnings Multiple (Annualized)

 

10.81

 

16.67

 

(35.15)

%

Dividend Yield (Annualized)

 

4.54

%  

 

5.40

%  

(15.93)

%

Common Shares Outstanding, End of Period

 

15,999,814

 

13,787,160

 

16.05

%

1


CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

AS OF OR FOR THE

 

THREE MONTHS ENDED

%

 

March 31, 

INCREASE

 

    

2021

    

2020

    

(DECREASE)

 

SAFETY AND SOUNDNESS

Tangible Common Equity / Tangible Assets (a)

 

10.71

%  

13.85

%  

(22.67)

%

Nonperforming Assets / Total Assets

 

1.07

%  

0.99

%  

8.08

%

Allowance for Loan Losses / Total Loans

 

0.72

%  

0.97

%  

(25.77)

%

Total Risk Based Capital Ratio (b)

 

18.15

%  

21.07

%  

(13.86)

%

Tier 1 Risk Based Capital Ratio (b)

 

16.19

%  

19.40

%  

(16.55)

%

Common Equity Tier 1 Risk Based Capital Ratio (b)

 

16.19

%  

19.40

%  

(16.55)

%

Leverage Ratio (b)

 

10.88

%  

13.21

%  

(17.64)

%

AVERAGE BALANCES

Average Assets

$

2,242,686

$

1,637,165

 

36.99

%

Average Equity

$

299,889

$

247,402

 

21.22

%

EFFICIENCY RATIO (c)

Net Interest Income on a Fully Taxable-Equivalent

Basis (c)

$

20,356

$

14,506

 

40.33

%

Noninterest Income

 

6,782

 

5,281

 

28.42

%

Total (1)

$

27,138

$

19,787

 

37.15

%

Noninterest Expense Excluding Merger Expenses (2)

$

15,709

$

12,912

 

21.66

%

Efficiency Ratio = (2)/(1)

 

57.89

%  

 

65.25

%  

(11.28)

%

(a)Tangible book value per common share and tangible common equity as a percentage of tangible assets are non-U.S. GAAP ratios.  Management believes this non-GAAP information is helpful in evaluating the strength of the Corporation's capital and in providing an alternative, conservative valuation of the Corporation's net worth.  The ratios shown above are based on the following calculations of tangible assets and tangible common equity:

Total Assets

    

$

2,333,595

    

$

1,629,445

Less: Intangible Assets, Primarily Goodwill

 

(56,222)

 

(29,573)

Tangible Assets

$

2,277,373

$

1,599,872

Total Stockholders' Equity

$

300,056

$

251,228

Less: Intangible Assets, Primarily Goodwill

 

(56,222)

 

(29,573)

Tangible Common Equity (3)

$

243,834

$

221,655

Common Shares Outstanding, End of Period (4)

 

15,999,814

 

13,787,160

Tangible Common Book Value per Share = (3)/(4)

$

15.24

$

16.08

(b)Capital ratios for the most recent period are estimated.

(c)The efficiency ratio is a non-GAAP ratio that is calculated as shown above.  For purposes of calculating the efficiency ratio, net interest income on a fully taxable-equivalent basis includes amounts of interest income on tax-exempt securities and loans that have been increased to a fully taxable-equivalent basis, using the Corporation's marginal federal income tax rate of 21%. In the calculation above, management excluded merger-related expenses.

2


QUARTERLY CONDENSED, CONSOLIDATED

INCOME STATEMENT INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

    

For the Three Months Ended :

March 31, 

    

December 31,

    

September 30, 

    

June 30, 

    

March 31, 

2021

2020

2020

2020

2020

Interest income

$

21,754

$

21,859

$

21,751

$

16,513

$

17,037

Interest expense

 

1,671

 

2,104

 

2,469

 

2,267

 

2,755

Net interest income

 

20,083

 

19,755

 

19,282

 

14,246

 

14,282

Provision (credit) for loan losses

 

259

 

620

 

1,941

 

(176)

 

1,528

Net interest income after provision (credit) for loan losses

 

19,824

 

19,135

 

17,341

 

14,422

 

12,754

Noninterest income

 

6,782

 

6,565

 

6,970

 

5,528

 

5,281

Net gains on securities

 

0

 

144

 

25

 

0

 

0

Loss on prepayment of borrowings

0

1,636

0

0

0

Merger-related expenses

 

0

 

182

 

6,402

 

983

 

141

Other noninterest expenses

 

15,709

 

15,775

 

14,648

 

12,274

 

12,912

Income before income tax provision

 

10,897

 

8,251

 

3,286

 

6,693

 

4,982

Income tax provision

 

2,110

 

1,481

 

438

 

1,255

 

816

Net income

$

8,787

$

6,770

$

2,848

$

5,438

$

4,166

Net income attributable to common shares

$

8,722

$

6,727

$

2,830

$

5,405

$

4,146

Basic earnings per common share

$

0.55

$

0.43

$

0.18

$

0.39

$

0.30

Diluted earnings per common share

$

0.55

$

0.43

$

0.18

$

0.39

$

0.30

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)

    

As of:

    

    

    

    

March 31,

    

December 31,

    

September 30,

    

June 30,

    

March 31,

2021

2020

2020

2020

2020

ASSETS

 

  

 

  

 

  

 

  

 

  

Cash & Due from Banks

$

207,145

$

101,857

$

174,478

$

77,642

$

32,678

Available-for-Sale Debt Securities

 

366,376

 

349,332

 

340,545

 

332,188

 

342,416

Loans, Net

 

1,602,926

 

1,632,824

 

1,680,617

 

1,230,387

 

1,156,143

Bank-Owned Life Insurance

30,247

30,096

29,942

18,843

18,745

Bank Premises and Equipment, net

20,740

21,526

21,504

18,332

18,023

Intangible Assets

 

56,222

 

56,356

 

56,585

 

29,511

 

29,573

Other Assets

 

49,939

 

47,109

 

49,122

 

38,563

 

31,867

TOTAL ASSETS

$

2,333,595

$

2,239,100

$

2,352,793

$

1,745,466

$

1,629,445

LIABILITIES

 

  

 

  

 

  

 

  

 

  

Deposits

$

1,923,925

$

1,820,469

$

1,871,514

$

1,381,178

$

1,249,912

Borrowed Funds

 

60,230

 

74,630

 

143,657

 

87,308

 

110,551

Subordinated Debt

 

16,534

 

16,553

 

16,572

 

6,500

 

6,500

Other Liabilities

 

32,850

 

27,692

 

24,734

 

14,689

 

11,254

TOTAL LIABILITIES

 

2,033,539

 

1,939,344

 

2,056,477

 

1,489,675

 

1,378,217

STOCKHOLDERS' EQUITY

 

  

 

  

 

  

 

  

 

  

Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Income

 

293,097

 

287,961

 

284,707

 

244,080

 

241,754

Accumulated Other Comprehensive Income:

 

  

 

  

 

  

 

  

 

  

Net Unrealized Gains on Available-for-sale Securities

 

6,847

 

11,676

 

11,376

 

11,472

 

9,230

Defined Benefit Plans

 

112

 

119

 

233

 

239

 

244

TOTAL STOCKHOLDERS' EQUITY

 

300,056

 

299,756

 

296,316

 

255,791

 

251,228

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

2,333,595

$

2,239,100

$

2,352,793

$

1,745,466

$

1,629,445

3


AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)

    

March 31, 2021

December 31, 2021

Amortized

Fair

Amortized

Fair

    

Cost

    

Value

    

Cost

    

Value

Obligations of the U.S. Treasury

$

15,117

$

15,085

$

12,184

$

12,182

Obligations of U.S. Government agencies

24,763

24,992

25,349

26,344

Obligations of states and political subdivisions:

 

  

 

  

 

  

 

  

Tax-exempt

 

120,974

 

125,118

 

116,427

 

122,401

Taxable

 

51,823

 

52,538

 

45,230

 

47,452

Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:

 

  

 

  

 

  

 

  

Residential pass-through securities

 

38,790

 

39,757

 

36,853

 

38,176

Residential collateralized mortgage obligations

 

52,715

 

53,971

 

56,048

 

57,467

Commercial mortgage-backed securities

 

53,528

 

54,915

 

42,461

 

45,310

Total Available-for-Sale Debt Securities

$

357,710

$

366,376

$

334,552

$

349,332

Summary of Loans by Type

(Excludes Loans Held for Sale)

(In Thousands)

    

March 31, 

    

December 31, 

    

March 31, 

2021

2020

2020

Commercial:

 

  

 

  

 

  

Commercial loans secured by real estate

$

524,886

$

531,810

$

295,860

Commercial and industrial

 

155,828

 

159,577

 

132,308

Paycheck Protection Program - 1st Draw

 

71,708

 

132,269

 

0

Paycheck Protection Program - 2nd Draw

66,127

0

0

Political subdivisions

 

49,860

 

53,221

 

43,613

Commercial construction and land

 

45,307

 

42,874

 

33,340

Loans secured by farmland

 

10,897

 

11,736

 

11,524

Multi-family (5 or more) residential

 

54,049

 

55,811

 

32,370

Agricultural loans

 

2,460

 

3,164

 

3,886

Other commercial loans

 

16,315

 

17,289

 

16,430

Total commercial

 

997,437

 

1,007,751

 

569,331

Residential mortgage:

 

  

 

  

 

  

Residential mortgage loans - first liens

518,392

532,947

508,387

Residential mortgage loans - junior liens

 

25,402

 

27,311

 

27,028

Home equity lines of credit

 

39,083

 

39,301

 

32,090

1-4 Family residential construction

 

18,376

 

20,613

 

14,121

Total residential mortgage

 

601,253

 

620,172

 

581,626

Consumer

 

15,897

 

16,286

 

16,516

Total

 

1,614,587

 

1,644,209

 

1,167,473

Less: allowance for loan losses

 

(11,661)

 

(11,385)

 

(11,330)

Loans, net

$

1,602,926

$

1,632,824

$

1,156,143

4


ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(In Thousands)

    

3 Months

    

3 Months

    

3 Months

    

Year

Ended

Ended

Ended

Ended

March 31, 

December 31,

March 31, 

December 31,

2021

2020

2020

2020

Balance, beginning of period

$

11,385

$

10,753

$

9,836

$

9,836

Charge-offs

 

(11)

 

(22)

 

(48)

 

(2,465)

Recoveries

 

28

 

34

 

14

 

101

Net recoveries (charge-offs)

 

17

 

12

 

(34)

 

(2,364)

Provision for loan losses

 

259

 

620

 

1,528

 

3,913

Balance, end of period

$

11,661

$

11,385

$

11,330

$

11,385

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS

AND TROUBLED DEBT RESTRUCTURINGS (TDRs)

(Dollars In Thousands)

    

March 31, 

    

December 31,

    

March 31, 

    

2021

2020

2020

Impaired loans with a valuation allowance

$

9,354

$

8,082

$

6,709

Impaired loans without a valuation allowance

2,023

2,895

1,581

Purchased credit impaired loans

 

6,781

 

6,841

 

305

Total impaired loans

$

18,158

$

17,818

$

8,595

Total loans past due 30-89 days and still accruing

$

6,777

$

5,918

$

8,372

Nonperforming assets:

 

  

 

  

 

  

Purchased credit impaired loans

$

6,781

$

6,841

$

305

Other nonaccrual loans

15,335

14,575

12,004

Total nonaccrual loans

22,116

21,416

12,309

Total loans past due 90 days or more and still accruing

 

1,285

 

1,975

 

2,093

Total nonperforming loans

 

23,401

 

23,391

 

14,402

Foreclosed assets held for sale (real estate)

 

1,472

 

1,338

 

1,685

Total nonperforming assets

$

24,873

$

24,729

$

16,087

Loans subject to troubled debt restructurings (TDRs):

 

  

 

  

 

  

Performing

$

302

$

166

$

372

Nonperforming

 

6,883

 

7,285

 

1,730

Total TDRs

$

7,185

$

7,451

$

2,102

Total nonperforming loans as a % of loans

 

1.45

%  

 

1.42

%  

 

1.23

%  

Total nonperforming assets as a % of assets

 

1.07

%  

 

1.10

%  

 

0.99

%  

Allowance for loan losses as a % of total loans

 

0.72

%  

 

0.69

%  

 

0.97

%  

Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (a)

1.04

%  

1.05

%  

1.06

%  

Allowance for loan losses as a % of nonperforming loans

 

49.83

%  

 

48.67

%  

 

78.67

%  

(a) Credit adjustment on purchased non-impaired loans at end of period

$

5,182

$

5,979

$

1,011

Allowance for loan losses

11,661

11,385

11,330

Total credit adjustment on purchased non-impaired loans at end of period and allowance for loan losses (1)

$

16,843

$

17,364

$

12,341

Total loans receivable

$

1,614,587

$

1,644,209

$

1,167,473

Credit adjustment on purchased non-impaired loans at end of period

 

5,182

 

5,979

 

1,011

Total (2)

$

1,619,769

$

1,650,188

$

1,168,484

Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (1)/(2)

 

1.04

%  

 

1.05

%  

 

1.06

%  

5


ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS

(In Thousands)

Three Months Ended

March 31, 

December 31, 

March 31, 

2021

2020

2020

Market Rate Adjustment

 

  

  

 

  

Adjustments to gross amortized cost of loans at beginning of period

$

718

$

1,354

$

(1,415)

(Amortization) accretion recognized in interest income

(366)

(636)

147

Adjustments to gross amortized cost of loans at end of period

$

352

$

718

$

(1,268)

Credit Adjustment on Non-impaired Loans

Adjustments to gross amortized cost of loans at beginning of period

$

(5,979)

$

(7,127)

$

(1,216)

Accretion recognized in interest income

 

797

 

1,148

 

205

Adjustments to gross amortized cost of loans at end of period

$

(5,182)

$

(5,979)

$

(1,011)

PURCHASED CREDIT IMPAIRED (PCI) LOANS

(In Thousands)

    

    

March 31, 

December 31, 

March 31, 

2021

2020

2020

Outstanding balance

$

10,256

$

10,316

$

408

Carrying amount

6,781

6,841

305

6


COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)

    

Three Months Ended

March 31, 

December 31, 

March 31, 

    

2021

    

2020

    

2020

INTEREST INCOME

Interest-bearing due from banks

$

50

$

60

$

81

Available-for-sale debt securities:

 

 

 

Taxable

 

1,113

 

1,083

 

1,588

Tax-exempt

 

801

 

795

 

545

Total available-for-sale debt securities

 

1,914

 

1,878

 

2,133

Loans receivable:

 

Taxable

 

17,493

 

18,144

 

14,461

Paycheck Protection Program -1st Draw

1,812

1,495

0

Paycheck Protection Program - 2nd Draw

186

0

0

Tax-exempt

553

529

575

Total loans receivable

20,044

20,168

15,036

Other earning assets

19

19

11

Total Interest Income

22,027

22,125

17,261

INTEREST EXPENSE

Interest-bearing deposits:

Interest checking

221

232

243

Money market

306

309

263

Savings

55

55

64

Time deposits

696

909

1,585

Total interest-bearing deposits

1,278

1,505

2,155

Borrowed funds:

Short-term

15

32

198

Long-term

134

321

295

Subordinated debt

244

246

107

Total borrowed funds

393

599

600

Total Interest Expense

1,671

2,104

2,755

Net Interest Income

$

20,356

$

20,021

$

14,506

Note: Interest income from tax-exempt securities and loans has been adjusted to a fully tax-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

7


ANALYSIS OF AVERAGE DAILY BALANCES AND RATES

(Dollars in Thousands)

    

3 Months

    

    

3 Months

    

    

3 Months

    

 

Ended

Rate of

Ended

Rate of

Ended

Rate of

 

3/31/2021

Return/

12/31/2020

Return/

3/31/2020

Return/

 

Average

Cost of

Average

Cost of

Average

Cost of

 

Balance

Funds %

Balance

Funds %

Balance

Funds %

EARNING ASSETS

 

  

 

  

 

  

 

  

 

  

 

  

Interest-bearing due from banks

$

92,619

 

0.22

%  

$

116,475

 

0.20

%  

$

19,401

 

1.68

%

Available-for-sale debt securities, at amortized cost:

 

  

 

  

 

  

 

  

 

 

  

Taxable

 

217,733

 

2.07

%  

 

217,321

 

1.98

%  

 

265,157

 

2.41

%

Tax-exempt

 

117,532

 

2.76

%  

 

113,888

 

2.78

%  

 

69,850

 

3.14

%

Total available-for-sale debt securities

 

335,265

 

2.32

%  

 

331,209

 

2.26

%  

 

335,007

 

2.56

%

Loans receivable:

 

  

 

  

 

  

 

  

 

 

  

Taxable

 

1,428,721

 

4.97

%  

 

1,454,733

 

4.96

%  

 

1,108,118

 

5.25

%

Paycheck Protection Program - 1st Draw

 

104,367

 

7.04

%  

 

152,504

 

3.90

%  

 

0

 

0.00

%

Paycheck Protection Program - 2nd Draw

34,197

2.21

%  

0

0.00

%  

0

0.00

%

Tax-exempt

 

67,301

 

3.33

%  

 

62,309

 

3.38

%  

 

60,367

 

3.83

%

Total loans receivable

 

1,634,586

 

4.97

%  

 

1,669,546

 

4.81

%  

 

1,168,485

 

5.18

%

Other earning assets

 

2,851

 

2.70

%  

 

2,390

 

3.16

%  

 

1,460

 

3.03

%

Total Earning Assets

 

2,065,321

 

4.33

%  

 

2,119,620

 

4.15

%  

 

1,524,353

 

4.55

%

Cash

 

23,796

 

  

 

31,312

 

  

 

18,042

 

  

Unrealized gain/loss on securities

 

12,890

 

  

 

13,875

 

  

 

8,176

 

  

Allowance for loan losses

 

(11,739)

 

  

 

(11,107)

 

  

 

(10,015)

 

  

Bank-owned life insurance

30,154

30,002

18,677

Bank premises and equipment

 

21,348

 

  

 

21,539

 

  

 

17,732

 

  

Intangible assets

 

56,288

 

  

 

56,863

 

  

 

29,607

 

  

Other assets

 

44,628

 

  

 

45,491

 

  

 

30,593

 

  

Total Assets

$

2,242,686

 

  

$

2,307,595

 

  

$

1,637,165

 

  

INTEREST-BEARING LIABILITIES

 

  

 

  

 

  

 

  

 

  

 

  

Interest-bearing deposits:

 

  

 

  

 

  

 

  

 

  

 

  

Interest checking

$

355,993

 

0.25

%  

$

371,425

 

0.25

%  

$

227,069

 

0.43

%

Money market

 

406,841

 

0.31

%  

 

389,993

 

0.32

%  

 

200,691

 

0.53

%

Savings

 

213,437

 

0.10

%  

 

202,679

 

0.11

%  

 

168,971

 

0.15

%

Time deposits

 

370,555

 

0.76

%  

 

416,281

 

0.87

%  

 

381,621

 

1.67

%

Total interest-bearing deposits

 

1,346,826

 

0.38

%  

 

1,380,378

 

0.43

%  

 

978,352

 

0.89

%

Borrowed funds:

 

  

 

 

  

 

  

 

  

 

  

Short-term

 

14,365

 

0.42

%  

 

27,422

 

0.46

%  

 

44,882

 

1.77

%

Long-term

 

52,847

 

1.03

%  

 

93,835

 

1.36

%  

 

64,065

 

1.85

%

Subordinated debt

 

16,543

 

5.98

%  

 

16,562

 

5.91

%  

 

6,500

 

6.62

%

Total borrowed funds

 

83,755

 

1.90

%  

 

137,819

 

1.73

%  

 

115,447

 

2.09

%

Total Interest-bearing Liabilities

 

1,430,581

 

0.47

%  

 

1,518,197

 

0.55

%  

 

1,093,799

 

1.01

%

Demand deposits

 

484,286

 

  

 

465,252

 

  

 

281,893

 

  

Other liabilities

 

27,930

 

  

 

26,746

 

  

 

14,071

 

  

Total Liabilities

 

1,942,797

 

  

 

2,010,195

 

  

 

1,389,763

 

  

Stockholders' equity, excluding accumulated other comprehensive income/loss

 

289,591

 

  

 

286,209

 

  

 

240,718

 

  

Accumulated other comprehensive income/loss

 

10,298

 

  

 

11,191

 

  

 

6,684

 

  

Total Stockholders' Equity

 

299,889

 

  

 

297,400

 

  

 

247,402

 

  

Total Liabilities and Stockholders' Equity

$

2,242,686

 

  

$

2,307,595

 

  

$

1,637,165

 

  

Interest Rate Spread

 

3.86

%  

 

3.60

%

 

  

 

3.54

%

Net Interest Income/Earning Assets

4.00

%  

3.76

%

3.83

%

Total Deposits (Interest-bearing and Demand)

$

1,831,112

 

  

$

1,845,630

 

  

$

1,260,245

 

  

(1)Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2)

Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

(3)

Rates of return on earning assets and costs of funds have been presented on an annualized basis.

8


COMPARISON OF NONINTEREST INCOME

(In Thousands)

    

Three Months Ended

March 31, 

December 31, 

March 31, 

    

2021

    

2020

    

2020

Trust revenue

$

1,626

$

1,682

$

1,479

Brokerage and insurance revenue

 

326

 

365

 

355

Service charges on deposit accounts

 

1,015

 

1,105

 

1,250

Interchange revenue from debit card transactions

 

881

 

817

 

731

Net gains from sales of loans

 

1,064

 

1,472

 

315

Loan servicing fees, net

 

248

 

198

 

(14)

Increase in cash surrender value of life insurance

 

150

 

154

 

104

Other noninterest income

 

1,472

 

772

 

1,061

Total noninterest income, excluding realized gains on securities, net

$

6,782

$

6,565

$

5,281

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)

    

Three Months Ended

    

March 31, 

December 31, 

March 31, 

2021

2020

2020

Salaries and employee benefits

$

8,895

$

9,998

$

7,378

Net occupancy and equipment expense

 

1,304

 

1,194

 

1,103

Data processing and telecommunications expenses

 

1,380

 

1,357

 

1,224

Automated teller machine and interchange expense

 

337

 

319

 

297

Pennsylvania shares tax

 

491

 

422

 

422

Professional fees

 

547

 

427

 

379

Other noninterest expense

 

2,755

 

2,058

 

2,109

Total noninterest expense, excluding merger-related
expenses and loss on prepayment of borrowings

 

15,709

 

15,775

 

12,912

Merger-related expenses

 

0

 

182

 

141

Loss on prepayment of borrowings

 

0

 

1,636

 

0

Total noninterest expense

$

15,709

$

17,593

$

13,053

9