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36
increase in 2015 as a result of continued core deposit growth in our branches, and non-deposit borrowings were also
increased to support our strong loan growth.
Total capital was up only $3 million for the year in 2015, since the addition of net income to retained earnings and the
positive impact of stock options exercised were largely offset by the Company’s repurchase of shares, the payment of
cash dividends, and a drop in accumulated other comprehensive income. Nevertheless, capital remains at relatively
high levels in comparison to peer banks. We have, in fact, maintained a very strong capital position throughout the
recession and in the ensuing years, due to our registered direct offering in 2010 and private placement in 2009 combined
with increases from retained earnings in the normal course of business. Furthermore, our liquidity position has been
exceptionally strong for the past few years due to robust growth in customer deposits and the runoff of wholesale-
sourced brokered deposits, in addition to relatively high levels of unpledged liquid investments. Our healthy capital
position and access to liquidity resources position us to take advantage of potential growth opportunities, although no
assurance can be provided in that regard. The major components of the Company’s balance sheet are individually
analyzed below, along with information on off-balance sheet activities and exposure.
Loan and Lease Portfolio
The Company’s loan and lease portfolio represents the single largest portion of invested assets, substantially greater
than the investment portfolio or any other asset category, and the quality and diversification of the loan and lease
portfolio are important considerations when reviewing the Company’s financial condition. The Company is not in-
volved with chemicals or toxins that might have an adverse effect on the environment, thus its primary exposure to
environmental legislation is through its lending activities. The Company’s lending procedures include steps to identify
and monitor this exposure in an effort to avoid any related loss or liability.
The Selected Financial Data table in Item 6 above reflects the amount of loans and leases outstanding at December 31
st
for each year from 2011 through 2015, net of deferred fees and origination costs and the allowance for loan and lease
losses. The Loan and Lease Distribution table that follows sets forth by loan type the Company’s gross loans and leases
outstanding, and the percentage distribution in each category at the dates indicated. The balances for each loan type
include nonperforming loans, if any, but do not reflect any deferred or unamortized loan origination, extension, or
commitment fees, or deferred loan origination costs. Although not reflected in the loan totals below and not currently
comprising a material part of our lending activities, the Company occasionally originates and sells, or participates out
portions of, loans to non-affiliated investors.