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GCC drama students get chance to improve improv skills at workshop

By Howard B. Owens

Genesee Community College drama students participated in a workshop today with members of Polite Ink, a sketch and improv troupe from Rochester that will perform this Saturday at the Stuart Steiner Theater.

Polite Ink is a co-ed comedy team that writes and performs its own original sketches and improv games live on stage with the help of the audience.

Saturday's performance is at 7:30 p.m.

Tickets are $8 for adults, $5 for seniors (55+) and GCC faculty/staff. Students and children are $3, and GCC alumni with ID will receive a $2 discount on an adult ticket.

To reserve seats, contact the GCC box office at boxoffice@genesee.edu(link sends e-mail) or (585) 345-6814.

Woman arrested for smashing car window, stealing purse, enters guilty plea

By Howard B. Owens

A 37-year-old Batavia woman was caught smashing into a car window and stealing a purse, using credit cards from the purse, and later accused of using stolen checks, made a factual admission today to her crimes in Genesee County Court.

Brandi Marie Smith, of North Bennett Heights, entered a guilty plea to the Class E felony of grand larceny in the fourth degree.  

The plea satisfies all the charges against her and gives her a chance to avoid a prison term.

District Attorney Lawrence Friedman said if Smith abides by the court's orders while awaiting sentencing May 4, she will likely be given five years probation.

She is currently out of jail under supervision of Genesee Justice.

Smith was arrested in October and accused of smashing out the car window of a vehicle parked at a business, stealing the purse containing credit cards, debit cards and checks, and then using the items to make purchases at local stores.

She was charged with four counts of first-degree identify theft, four counts of forgery, three counts of second-degree identify theft, three counts of fourth-degree criminal possession of stolen property, and one count of fourth-degree grand larceny.

Later the same month, she was arrested again and charged with criminal possession of a forged instrument, 2nd. 

As part of her plea, Smith is required to pay restitution.

Valentine's recital scheduled for Saturday is canceled

By Howard B. Owens

The Asteria String Quartet's "First Viennese Valentine's" performance scheduled for this Saturday at the Dibble Family Center in Batavia has been canceled.

One of the quartet's members had an unforeseen circumstance arise and will not be able to perform. It was not possible for the quartet to find a replacement musician on such short notice.

The performance was sponsored by the Genesee Symphony Orchester and Musical Director Shade Zajac, and quartet member, shares his deepest regrets for the canceling.

The GSO will refund all ticket purchases. For a refund, call Roxie Choate at (585) 356-9635 and she will mail a refund to you if you purchased tickets.

Law and Order: Employee accused of stealing from business

By Howard B. Owens

Shannon L. Klinkbell-Hayday, 41, of Liberty Street, Batavia, is charged with petit larceny and falsifying business records. Klinkbell-Hayday allegedly made fraudulent return refunds at a business where she was working and then kept the return money.

Devin P. Hofert, 22, of Hutchins Street, Batavia, was arrested on a warrant. Police came into contact with Hofert during an investigation into a domestic incident. He was also allegedly found with a hypodermic instrument. He was jailed on $5,000 bail.

John A. Snook, 29, of Oak Orchard, Albion, is charged with first-degree criminal contempt. Snook allegedly violated a stay away order of protection by going to the home of the protected person. He was jailed without bail.

Freddie L. Cunningham Jr., 56, of Ellicott Street, Batavia, is charged with harassment, 2nd. Cunningham allegedly threatened harm to another person during an incident reported at 3:14 p.m. Tuesday.

Christopher Lynn Allison, 23, of Gaines Waterport Road, Albion, is charged with criminal possession of a controlled substance, 7th, criminal use of drug paraphernalia, 2nd, and unlawful possession of marijuana. Allison was arrested after Deputy Ryan Delong responded to a report at 3:20 p.m. Wednesday to the 7-Eleven in Oakfield of a male unconscious in a vehicle.

Tractor-trailer rollover reported on Lewiston Road, Alabama

By Howard B. Owens

A tractor-trailer rollover accident is reported in the area of 1074 Lewiston Road, Alabama.

The driver is out and appears uninjured. The road is blocked.

The product the truck is carrying is "all over the road." The product is alcohol.

Alabama fire responding.

UPDATE(S) (By Billie) 12:47 p.m.: The semi-truck was caught by a gust of wind and the passenger side wheels went off the roadway. The driver over-corrected, causing the rig to flip on its side. The roof then came off, spilling the cargo of $60,000 worth of liquor and wine. No injuries. More pictures will be posted later.

UPDATE 3:31 p.m.: The roadway is clear. All Alabama units are back in service.

Hawley knocks free tablet computers for prison inmates

By Howard B. Owens

Press release:

“New York state’s paradigm of pampering those who break the law or are here illegally never ceases to amaze me. The average middle-class taxpayer must scrape and save to afford a luxury such as a computer tablet, and now the Department of Corrections and Community Supervision (DOCCS) is allowing them to be given out like candy to hardened criminals.

“If it’s this easy to encourage vendors to provide free tablets to inmates, why aren’t they being provided to our students in disadvantaged school districts or to libraries across the state as a community resource? I suppose crime does pay, especially if you live in New York.”

Byron-Bergen beats Alexander 55-53 in girls basketball

By Howard B. Owens

The Byron-Bergen Lady Bees came back from a sluggish first half to beat Alexander 55-53 in girls basketball Wednesday night.

VanValkenburg scored 22 points, with 17 in the second half, to lead B-B.

For Alexander, Macie Riggs scored 15 points.

Blue Devils get 73-55 win over C-SAT

By Howard B. Owens

Mason McFollins and Antwan Odom scored 19 points each to lead Batavia High School to a 73-55 victory at home Wednesday night over Charter School for Applied Technologies, a Section VI team.

Steve Gilebarto scored 16 points and Jonathan Liciaga scored 11.

McFollins hit five three-point shots.

For C-SAT, Jayden Galleage scored 24 points.

A pair of attempted break-ins reported in Bergen

By Howard B. Owens

The Sheriff's Office is investigating a pair of attempted break-ins to residences in Bergen, one in the Village and one in the Town, that occurred the night of Jan. 23.

In both cases, the would-be intruder or intruders failed to make entry into the homes.

One was an apartment on Gibson Place, the other a house on Creamery Road.

Investigator Andrew Hale said he believes the two attempted break-ins are related.

They happened within hours of each other.

There's little evidence at this point to identify a suspect.

What stopped the possible burglary on Gibson was a security chain on the kitchen door of the apartment. Whoever tried to break in got the door open but couldn't open it further because of the chain, Hale said. 

On Creamery Road, several windows were tried but none successfully opened.

Residents in the area are reminded to lock their doors and windows and be on the lookout for suspicious activity.

Anybody with information that may assist the investigation may call the Sheriff's Office at (585) 353-5000 and ask for extension 3570.

Le Roy Rotary forms nonprofit corporation to help serve nutritious meals to community members

By Howard B. Owens

Three dozen volunteers turned out Tuesday night for a meeting at the Masonic Hall in Le Roy to learn about a new organization being formed by the Le Roy Rotary Club to help provide nutritious meals to members of the community.

Since Grace's Kitchen shut down in the Fall fo 2016, those with the financial or social need for free community meals haven't had a place to go, and Rotary members realized if there was going to be another community kitchen, they might need to be the ones to step up and make it happen.

"We felt there was a need in the community and that's what we do," said Tracy Ford. "Our motto is service above self."

Grace's Kitchen closed after Selby Davis left town. Davis operated Grace's Kitchen with oversight by the Le Roy Christian Community Project (LCCP). From 2011 to 2016, Grace's Kitchen served 100 to 125 people meals regularly, and 70 percent of those individual helped were elderly.

Meanwhile, there has been an increase in students participating in the LCCP's Backpack Club, which provides students with food bags to help them not go hungry between the time school gets out on Friday and begins again on Monday. About 35 percent of the students at Le Roy CSD are enrolled in the school's free or reduced-price meal program.

All of this, Ford said, points to an ongoing need for a meal program in the community.

To start, the Rotary Club, assisted by Foodlink, the Masons, local churches, the Boy Scouts, and other community groups, will serve a meal every other week at the Masonic Hall on Bank Street.

The first meal is scheduled for 5 p.m. on Tuesday, March 27.

To facilitate the sustainability of the program, the Rotary members formed a nonprofit corporation.

The directors are: Christine Gephart, president; James Ellison, VP; Tracy Ford, secretary; Benjamin Dragon, treasurer; and board members Samantha Vagg Lawrence Boylan, Joan Ellison, Lynda Lowe and Collen O'Connor.

Much of the food will be provided by Foodlink. Ford said local restaurants said they will assist with meals.  

Ford said there should be plenty of food donated to help keep the program going so the main thing the organization needs from community members who want to help is to show up and offer helping hands.

"Manpower is the one big need," she said.

Law and Order: Batavia man accused of eating deli sandwich and not paying for it

By Howard B. Owens

Randy J. Heslor, 24 of 3991 Pearl Street Road, Batavia, is charged with petit larceny. Heslor is accused of eating a deli sandwich in a store on West Main Street, Le Roy, and leaving without paying for it.

Robert T. Hoffman, 38, 45 Gilbert St., Le Roy, is charged with criminal mischief, 4th, and three counts of endangering the welfare of a child. Hoffman allegedly pushed another person and stopped that person from calling police. He was jailed on an unspecified amount of bail. 

Aaron Maurice Jackson Jr., 27, of Andrews Avenue, Binghamton, is charged with aggravated unlicensed operation, 3rd, and speeding. Jackson was stopped at 1:14 a.m. Monday on Boardway Road, Bethany, by Deputy Jeremy McClellan.

Grand Jury Report: 

Foster M. Brandt is indicted on counts of felony DWI. Brandt was stopped Sept. 23 on Route 5 in the Town of Le Roy. He was convicted in 2013 on a charge of driving while ability impaired by drugs.

Collins praises Trump's first State of the Union speech

By Howard B. Owens

Press release:

“President Trump had a record-setting first year of his Presidency,”Congressman Chris Collins said. “The United States was suffering under the failed policies of President Obama, which resulted in high unemployment, slow economic growth, burdensome regulations on businesses, and a lax approach to trade around the world.”

In 2017 alone, the Trump Administration eliminated 22 regulations for everyone one new regulatory action, created 2.1 million new jobs, lowered taxes for American families, and saw an average of 2.5 percent GDP growth. Due to the Tax Cuts and Jobs Act, hundreds of businesses have given wage increases and bonuses to more than 3 million workers across America. Under President Trump, we have seen significant progress overseas and are winning the war against ISIS.

The President talked about his $1 trillion plan to rebuild the nation’s crumbling infrastructure, which would create jobs across America. A key factor will be streamlining the permitting process to take less than two years, in comparison to the sometimes seven- to 10-year process it currently takes to get approval to build things like roads, bridges and highways.

Additionally, President Trump is committed to fixing the problems created from President Obama’s executive order on Deferred Action for Childhood Arrivals (DACA), which he implemented unilaterally instead of working with Congress. Trump emphasized the need for Congress to pair any DACA solution with increased border security, elimination of the visa lottery, and ending chain migration to make sure we are not faced with similar problems years down the road.

Trump also discussed pursuing trade deals that treat the United States fairly and protect American workers. And in a world of growing threats, Trump has committed to rebuilding our military and strengthening efforts to combat terrorism.

Collins added: “I am confident that President Trump will lead us to greater opportunities as we build a safe, strong, and proud America. As we look back on this past year, I applaud the Trump Administration’s success and look forward to continuing our work to Make America Great Again.”

Photo: A winter drive on East Road

By Howard B. Owens


I drove around a bit this afternoon with the explicit goal to take some landscape pictures of Genesee County in black and white. It turned out there really wasn't enough snow on the ground to get the look I was after, but I like this shot from East Road in Batavia.

NYPL league president says he embraces baseball in Batavia and hopes the fans will, too

By Howard B. Owens

Ben Hayes, commissioner of the New York-Penn League, bristles at the idea that has persisted for 10 or more years that he, and the league, want to take professional baseball away from Batavia.

That simply isn't true, he said, during a press conference at the Quality Inn & Suites, Batavia, yesterday, where he introduced Dave Chase as the new general manager of the ballclub.

When asked with a question premised on the idea that Hayes or the league is looking to move the club, Hayes shot back, "It always starts with the assumption that the league wants to move the club. That is the part that I have a hard time with. Is the community supporting the club to the extent that it can? Can it make it on its own? That is really the question.

"This is going to be a really important year. Let's see if we strip it down and we go back to the basics, can Batavia support this ballclub? And if it can, fantastic."

In Dave Chase, the league is bringing in a baseball man through-and-through, with more than 40 years experience both in running organizations and in running the media operations that keep an eye on how baseball organizations operate. He's also been a commission of a college baseball league. He loves baseball and its history.

"Just for the record, guys, the only sport I recognize is baseball," he said. "The other ones just fill up the calendar."

And the baseball played outside of the major markets is the baseball that defines the sport and the nation, he said.

"I don't know if it's still there but at one time when you walked into the gallery Hall of Fame there was a quote above the entrance that said, 'To understand America, study,' and it says, 'baseball.' They left out a piece of the quote. It's 'to understand America study small-town baseball,' and that's what minor league baseball is. So when we talk about the national pastime being baseball, and I do recognize it as the national pastime, it's minor league baseball. I think don't think we're talking about Major League Baseball."

Both Hayes and Chase said repeatedly they hope the fans in and around Batavia embrace the Muckdogs and that Chase will do everything he can to ensure a quality fan experience.

As GM of a minor league team, Chase said he has many constituencies to serve. First is the Miami Marlin farmhands. There are also the fans, league officials, other franchises in the league, and corporate sponsors. He wants all of them to be happy with the team on the field and the experience in the ballpark.

For the Marlins, the priority is getting the field into shape and improve the clubhouses.

Chase and Hayes took a look at the field yesterday morning and they walked the outfield. They're not happy with the condition, they said.

"It looks like some of the maintenance that had been done in recent months or year were not done correctly," Chase said. "As a result, the playing surface of the infield is really rough. I would not want to put my son on it to field a ball and I wouldn't charge a baseball in the outfield either."

Work can't begin 'til spring and Chase indicated he's going to need to have some conversations with the baseball coaches at Genesee Community Collete, Notre Dame, Batavia High School, about field availability this year so that there is time to get the field ready for opening day June 18.

And he wants to meet with the coaches anyway, just as members of the local baseball community.

"I want to hear from other folks who are engaged in baseball," Chase said. "I want to hear from them because what is good for a part of baseball is good for baseball in the long run."

He also wants to hear from the fans.

"I want to hear what they like and do not like," he said. "I'm a one-man show at the moment so I may not be able to respond to them right away but my goal is to talk to them and for them to come and see me. Once we get the office cleaned up a little bit, we will invite people to come out and just talk baseball."

Some of the improvements needed at the ballpark -- cleaning up the office, new infield lights, new equipment in the concession stand -- is an expense the league will need to initially shoulder, Hayes acknowledged. He understands that the city may not have the funds available for infield lighting, but the current lighting doesn't meet league standards. 

Hayes said he has various options to fund upgrades and operations for the Muckdogs in 2018, to make up for any revenue shortfall, but in the long run, if the team ever is sold, those deficits will be covered out of the share of sale proceeds that will go to the Genesee County Baseball Club.

The club, a community nonprofit, has owned the franchise for decades, but after the NYPL declined to allow the Rochester Red Wings an extension on its 10-year operating agreement, the league took over operations of the franchise. The Red Wings are entitled to 50 percent of the sale price; the league would get 10 percent; and the Club 40 percent. But Hayes said costs above revenue will be charged to the Club.

The amount of money the Club gets will play a role in the Club's ability to help recruit and retain a team in one of the region's college summer leagues. 

Chase, who ran such a league, is mindful that is an option for local baseball fans.

"When you run out the New York-Penn, which is a quality short-season Class A league, we think Batavia has a good chance of supporting that, but if they can't, then some other baseball would have the option of coming in here," Chase said, and that option would be a college summer league.

When it comes to the quality of baseball, fans, he said, wouldn't know the difference.

"The young men who play the game, play as hard as ever and the fans get their summer fix of baseball," Chase said. "That that would be the next step. But we're not there yet. I think if the league was there that would have happened already."

It's been more than a dozen years since there has been an off-season without a Hot Stove League dinner, a favorite event with core Muckdogs fans, and when asked about it, both Chase and Hayes perked up and said they had just been discussing such an event at lunch. It may happen yet this off-season, Chase said.

Hayes said he picked Chase to run the club because of his experience and expertise.

"David has been in the business for four decades," Hayes said. "He's operated clubs from the low end to the high end and he knows what the values of professional baseball are and what the important things are."

There are two ways to look at Hayes hiring somebody like Chase. One is, the league wants to improve the financial position of the Muckdogs so the team can stay in Batavia. The other is to improve its curb appeal to help attract a new owner.

"There is a third option, too, and that is can we make this a stable market and can we keep it here," Hayes said. "And I don't think that that question has been completely vetted."

Surprisingly, Hayes said the first priority isn't to make the Muckdogs profitable. He said it was to get the fans more engaged with the team

"Financial viability really is not what I would say the number one," Hayes said, "It is very close to number one, but my closest number one is to make sure that as this situation stabilizes."

When it was suggested that there was a subtext to comments by Hayes that there was a dissatisfaction with how the Red Wing ran the ball club for the past 10 years, Hayes said that isn't the case at all.

"I think that they handled it and they did the job they did," Hayes said. "We've got to take a look at it and see if we can do the same thing if not better. If we can, great, and if we can't then the proof is in the pudding. Two people tried and we brought in two people who can operate a club properly. If neither one of them can do it, then maybe the market can't support it. Maybe that question will answer itself. This is a year for the city to show itself."

No injury, but extrication needed in accident on Route 63, Bethany

By Howard B. Owens

No injuries are reported in an accident in the area of 5588 Ellicott Street Road, Bethany, but extrication is needed.

Bethany fire, Stafford fire, and Mercy EMS dispatched.

UPDATE 10:26 a.m.: Manpower needed. The person who needs to be extricated is in a wheelchair. she is not insured. A first responder said it will be difficult to get her out but that she is probably just going to be a sign-off.

Death of snowy owl reported at Genesee County Airport

By Howard B. Owens

Area wildlife photographers were shocked and saddened Friday to find a dead snowy owl Friday afternoon atop a utility pole near the Genesee County Airport.

The DEC confirmed today that it was notified of a dead snowy owl that had been banded at that location.

National Grid, after being contacted by the DEC on Friday, assisted in recovering the animal from atop the utility pole (see video below).

Local photographer Jim Burns (who freelances for The Batavian) is a wildlife photographer and a frequent visitor to the airport, which attracts both numerous snowy owls and photographers. He said such deaths as this animal's are not uncommon. The owls fall victim to electrocution (the possible cause in this case), being hit by cars and poisoning. 

Poisoning is perhaps the most preventable cause of death of snowy owls. The owls feast on rodents and if the rodents were poisoned before becoming an owl's meal, the owl is poisoned as well.

"That's the main message to get out there," Burns said. "People should put out traps instead of poison."

Though still rare, the birds have been showing up in WNY in recent years, probably, because their northern hunting grounds are becoming crowded. It's generally the younger birds who migrate south. Burns estimated the deceased owl was no more than 2 years old.

The birds are banded by Operation SNOWstorm, which tracks snowy owls to assist in their preservation.  

The Department of Environmental Conservation asks that if you find a dead banded bird, report it on the website www.reportband.gov.

Photo by Margy Meath.Video by Oded Kalir.

Tompkins reports 2017 earnings

By Howard B. Owens

Press release:

As reported by many financial institutions, Tompkins Financial Corporation’s earnings for the quarter and year- to-date periods ended December 31, 2017, were impacted by the Tax Cut and Jobs Act of 2017, which reduced the Federal statutory tax rate from 35% in 2017, to 21% in 2018. The change in the tax law created a one-time, fourth quarter, non-cash write-down of net deferred tax assets in the amount of $14.9 million due to the required remeasurement of the net deferred tax assets using the new lower tax rate.

President and CEO Stephen Romaine commented, “I am extremely proud of our Company’s results in 2017. Though our reported earnings are down for the year, had it not been for the non-cash write-down related to the tax law change, our earnings would have been at a record level. Coupled with the general positive trends we have seen in business growth, the lower marginal tax rate will have a meaningful positive impact on future earnings.”

A summary of the impact of the tax law changes on 2017 full year earnings per share is as follows:

§ Diluted earnings per share for year ended December 31, 2017, (including the one-time charge related to tax reform) were $3.43, down 12.3% over full year 2016

§ Adjusted diluted earnings per share for year ended December 31, 2017 (excluding the one-time charge related to tax reform) were $4.42, up 13.0% over full year 2016 (refer to table of “Non GAAP Measures” included in this press release)

GAAP net income for the year ended December 31, 2017, was $52.5 million, down from $59.3 million reported in 2016. Diluted earnings per share were $3.43 for the year ended December 31, 2017, down from the $3.91 per share reported in 2016. Excluding the impact of the one-time charge related to changes in the tax law,

For more information contact:

Stephen S. Romaine, President & CEO Francis M. Fetsko, Executive VP, CFO & COO Tompkins Financial Corporation (888)503-5753

diluted earnings per share for 2017 would have been $4.42, reflecting an increase of 13.0% over diluted earnings per share for 2016. Refer to the table of “Non-GAAP Measures” included in this press release for additional details.

GAAP net income for the fourth quarter of 2017 was $2.5 million, down from the $15.1 million reported for the same period in 2016. Diluted earnings per share of $0.16 for the fourth quarter of 2017 were down 83.8% from the $0.99 reported in the fourth quarter of 2016. Removing the impact of the one-time charge related to tax reform from fourth quarter earnings would have resulted in diluted earnings per share of $1.15 for the fourth quarter of 2017, representing a 16.2% increase over the same period in 2016. Refer to the table of “Non- GAAP Measures” included in this press release for additional details.

Mr. Romaine further commented, “Tompkins has a history of being a high performing Company with a long- term focus. In keeping with this approach, we plan to leverage the benefits of reduced taxes from the Tax Cut and Jobs Act of 2017 in a way that is consistent with our strategy of creating long-term value for our clients, shareholders, communities and employees. This includes planned investments to modernize our facilities, improve customer-facing technology and expand staff in support of these initiatives. We have always given generously to the communities we serve and expect to continue to increase that level going forward. We have a long history of paying profit sharing to our employees and we have raised the profit sharing payout that will be paid in 2018 to 9.0% of employee annual pay. We also plan to raise the minimum wage paid by our Company to $14.00 - $15.00 per hour based on geography and we are committed to increasing compensation for all employees earning less than $18.00 per hour. We are investing just in excess of $1.0 million to increase our wages to these levels.”

SELECTED HIGHLIGHTS FOR YEAR AND FOURTH QUARTER:

  • §  Net interest income for the full year of $201.3 million, is up 11.4% over 2016; while net interest income for the fourth quarter of $52.0 million is up 12.1% over the same quarter last year.

  • §  Total loans of $4.7 billion at year end 2017 were up 9.7% over year end 2016

  • §  Noninterest bearing deposit balances of $1.4 billion at year end 2017 are up 16.3% over year end 2016

  • §  Nonperforming assets remain at historically low levels and compare favorably to our industry peers, with nonperforming assets representing 0.38% of total assets at year end 2017, compared to 0.36% at year end 2016.

NET INTEREST INCOME

For the full year ended December 31, 2017, net interest income was $201.3 million, up $20.7 million, or 11.4% from the same period in 2016. Net interest income of $52.0 million for the fourth quarter of 2017 increased by $5.6 million, or 12.1% compared to the same period in 2016.

Growth in net interest income was largely driven by an 11.2% increase in average total loans during 2017, up $444.0 million over average loans in 2016. The loan growth was supported, in part, by a $249.4 million increase in average total deposits over the same period. The net interest margin was 3.42% in the fourth quarter of 2017, up from 3.40% for the most recent prior quarter, and 3.30% for the same quarter last year.

NONINTEREST INCOME

For the full year, noninterest income of $69.2 million is up slightly from $68.8 million reported for 2016. Noninterest income was $17.3 million for the fourth quarter of 2017, and was up $996,000 compared to the same period in 2016. Fee income business related to cards services and investment and management services contributed to the improvement. Insurance revenue and services charges on deposit accounts were down, partially offsetting those improvements. Results for 2017 included realized losses on available-for-sale securities in the amount of $407,000, compared to realized gains of $926,000 in 2016.

NONINTEREST EXPENSE

For the full year, noninterest expenses were $171.1 million in 2017, up 7.9% over 2016. Noninterest expense was $46.3 million for the fourth quarter of 2017, up 17.5% when compared to that same quarter in 2016. During 2017, the Company invested $2.7 million in a historic preservation tax credit which yielded Federal and NYS tax credits. The project was placed in service in the fourth quarter, and accordingly, the fourth quarter results include the required write-off of this investment as operating expense and recognition of the related $3.3 million of tax credits generated from the investment as a reduction of income tax expense. 2017 expenses also included $731,000 of deconversion expenses related to system conversions (including a core system conversion completed in the second quarter of 2017); compared to deconversion expenses of $546,000 recognized in 2016.

INCOME TAX EXPENSE

During 2017, the Company’s effective tax rate was 44.8%, compared to 31.3% in 2016. The increase is mainly due to the $14.9 million one-time write-down of net deferred tax assets discussed above. Tax expense for 2017 benefited from the $3.3 million historic tax credit described above, which was recognized in the fourth quarter of 2017. As previously mentioned, the Tax Cut and Jobs Act of 2017 will reduce the federal statutory tax rate from 35% in 2017, to 21% in 2018.

ASSET QUALITY

Asset quality trends remained strong in the fourth quarter of 2017. Nonperforming assets represented 0.38% of total assets at December 31, 2017, up slightly from 0.36% at December 31, 2016. Nonperforming asset levels continue to be below the most recent Federal Reserve Board Peer Group Average1 of 0.64%.

Full year provision for loan and lease losses was $4.2 million in 2017, down from $4.3 million in 2016. Net loan and lease charge-offs for 2017 were $145,000 compared to net charge-offs of $570,000 reported in 2016. The provision for loan and lease losses was $2.0 million for the fourth quarter of 2017, up from $1.7 million in the fourth quarter of 2016.

The Company’s allowance for originated loan and lease losses totaled $39.7 million at December 31, 2017, and represented 0.91% of total originated loans and leases at December 31, 2017, compared to 0.92% at December 31, 2016. The total allowance represented 172.84% of total nonperforming loans and leases at December 31, 2017, up from 164.98% at December 31, 2016.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 7.24% at December 31, 2017, a decline from the 7.58% reported for the most recent prior quarter, and 7.25% at December 31, 2016. Contributing to the decline in capital levels in the fourth quarter of 2017 was the impact of Tax Cut and Jobs Act of 2017. The change in the tax law created a one-time non-cash write-down of net deferred tax assets in the amount of $14.9 million due to the remeasurement of the assets using the new lower tax rate. 

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