Note

- Consolidated Quarterly Financial Information

(unaudited)

	Quarters Ended
	Mar. 31			Jun. 30		Sept. 30			Dec. 31
201 6
Total interest income	$	9,770		$	8,913	$	9,824		$	10,841
Total interest expense		670			707		839			806
Net interest income		9,100			8,206		8,985			10,035
Provision for loan losses ( 1 )		479			141		1,708			498
Noninterest income ( 3 )		3,235			1,861		1,693			1,450
Noninterest expense		7,969			7,773		8,828			8,329
Net income		2,832			1,706		358			2,024

Earnings per share	$	0.69		$	0.41	$	0.08		$	0.43

201 5
Total interest income	$	9,627		$	8,866	$	9,016		$	8,825
Total interest expense		697			717		731			694
Net interest income		8,930			8,149		8,285			8,131
Provision for loan losses ( 2 )		(78	)		799		(11	)		380
Noninterest income ( 3 )		3,489			1,917		1,584			1,607
Noninterest expense		7,427			7,554		7,727			6,911
Net income		3,624			1,410		1,642			1,898

Earnings per share	$	0.88		$	0.34	$	0.40		$	0.46

201 4
Total interest income	$	9,508		$	8,925	$	8,904		$	9,018
Total interest expense		726			738		696			715
Net interest income		8,782			8,187		8,208			8,303
Provision for loan losses ( 4 )		494			1,386		(682	)		1,589
Noninterest income ( 3 )		4,118			1,912		2,106			1,657
Noninterest expense		7,295			6,997		7,244			7,757
Net income		3,564			1,344		2,742			423

Earnings per share	$	0.87		$	0.33	$	0.67		$	0.10

(1)

During the

third

quarter of

2016,

the Company experienced higher provision expense that was primarily related to an increase in specific allocations impacted by the decline in collateral values of

two

impaired commercial real estate loan relationships. A re-appraisal of the commercial properties securing the loans identified further collateral depreciation, which resulted in a

$2,435

increase to the specific allocations related to the loans.

(2)

During the

first

and

third

quarters of

2015,

the Company experienced negative provision expense as a result of lower general allocations of the allowance for loan losses. General allocations were impacted by improved economic trends that include: decreasing historical loan loss factor, lower delinquencies and lower classified/criticized assets.

(3)

The Company’s noninterest income was significantly impacted by seasonal tax refund processing fees. The Bank serves as a facilitator for the clearing of tax refunds for a single tax refund product provider. The Bank processes electronic refund checks/deposits associated with taxpayer refunds, and will, in turn, receive a fee paid by the

third

-party tax refund product provider for each transaction processed. Due to the seasonal nature of tax refund transactions, the majority of income was recorded during the

first

quarter.

(4)

During the

third

quarter of

2014,

the Company experienced negative provision expense that was primarily related to a decrease in specific allocations impacted by the improvement in collateral values of an impaired commercial real estate loan relationship. A re-appraisal of the commercial properties securing the loan identified asset appreciation, which resulted in a

$524

reduction to the specific allocation related to the loan.