Unassociated Document

($ in thousands, except for per share data)	December 31, 2011			December 31, 2010
Assets
Cash and due from banks	$	11,897		$	9,858
Interest-bearing deposits		98,355			69,400
Federal funds sold		---			---
Securities available for sale		174,918			184,907
Securities held to maturity		143,995			131,000
Total securities		318,913			315,907
Mortgage loans held for sale		2,623			2,460
Loans:
Real estate construction loans		48,531			46,169
Consumer real estate loans		150,224			153,405
Commercial real estate loans		303,192			293,171
Commercial non-real estate loans		39,274			37,547
Public sector IDA		15,571			12,553
Consumer non-real estate loans		33,072			34,543
Total loans		589,864			577,388
Less: unearned income and deferred fees		(952	)		(945	)
Loans, net of unearned income and deferred fees		588,912			576,443
Less: allowance for loan losses		(8,510	)		(7,664	)
Loans, net		580,402			568,779
Bank premises and equipment, net		10,393			10,470
Accrued interest receivable		6,304			6,016
Other real estate owned		1,489			1,723
Intangible assets		10,460			11,543
Other assets		26,266			26,082
Total assets	$	1,067,102		$	1,022,238

Liabilities and Stockholders' Equity
Noninterest-bearing deposits	$	142,163		$	131,540
Interest-bearing demand deposits		404,801			365,040
Savings deposits		61,298			55,800
Time deposits		311,071			332,203
Total deposits		919,333			884,583
Other borrowed funds		---			---
Accrued interest payable		206			257
Other liabilities		6,264			8,211
Total liabilities		925,803			893,051

Stockholders' Equity
Preferred stock of no par value.
Authorized 5,000,000 shares; none issued and outstanding		---			---
Common stock of $1.25 par value.
Authorized 10,000,000 shares; issued and outstanding 6,939,974 shares at December 31, 2011 and 6,933,474 at December 31, 2010		8,675			8,667
Retained earnings		133,945			123,161
Accumulated other comprehensive gain, net		(1,321	)		(2,641	)
Total stockholders' equity		141,299			129,187
Total liabilities and stockholders' equity	$	1,067,102		$	1,022,238

	Three Months Ended						Twelve Months Ended
	December 31, 2011			December 31, 2010			December 31, 2011		December 31, 2010
($ in thousands, except for per share data)
Interest Income
Interest and fees on loans	$	9,128		$	9,199		$	36,514	$	36,919
Interest on federal funds		---			---			---		---
Interest on interest-bearing deposits		51			43			155		128
Interest on securities - taxable		1,630			1,354			6,745		5,588
Interest on securities - nontaxable		1,620			1,669			6,532		6,504
Total interest income		12,429			12,265			49,946		49,139

Interest Expense
Interest on time deposits of $100,000 or more		468			744			2,019		3,439
Interest on other deposits		1,709			1,859			7,165		7,719
Interest on borrowed funds		---			---			---		---
Total interest expense		2,177			2,603			9,184		11,158
Net interest income		10,252			9,662			40,762		37,981
Provision for loan losses		753			1,200			2,949		3,409
Net interest income after provision for loan losses		9,499			8,462			37,813		34,572

Noninterest Income
Service charges on deposit accounts		665			666			2,617		2,858
Other service charges and fees		113			103			287		317
Credit card fees		832			783			3,197		2,954
Trust income		270			272			1,087		1,118
Bank-owned life insurance		203			202			762		760
Other income		156			139			449		354
Realized securities gains (losses), net		18			(13	)		11		(14	)
Total noninterest income		2,257			2,152			8,410		8,347

Noninterest Expense
Salaries and employee benefits		2,796			2,758			11,357		10,963
Occupancy and furniture and fixtures		392			456			1,599		1,875
Data processing and ATM		412			379			1,701		1,499
FDIC assessment		(372	)		275			677		1,080
Credit card processing		614			620			2,485		2,300
Intangibles and goodwill amortization		270			271			1,083		1,083
Net costs of other real estate owned		237			34			518		214
Franchise taxes		161			241			780		963
Other operating expenses		832			786			3,138		3,150
Total noninterest expense		5,342			5,820			23,338		23,127
Income before income tax expense		6,414			4,794			22,885		19,792
Income tax expense		1,525			987			5,247		4,223
Net income	$	4,889		$	3,807		$	17,638	$	15,569

Basic net income per share	$	0.70		$	0.55		$	2.54	$	2.25
Fully diluted net income per share	$	0.70		$	0.55		$	2.54	$	2.24
Weighted average outstanding number of common shares
Basic		6,939,148			6,933,474			6,936,869		6,933,474
Diluted		6,949,660			6,957,364			6,950,788		6,949,936
Dividends declared per share	$	0.52		$	0.47		$	1.00	$	0.91
Dividend payout ratio		---			---			39.34		40.52
Book value per share	$	---		$	---		$	20.36	$	18.63

	Three Months Ended						Twelve Months Ended
Average Balances	December 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010
Cash and due from banks	$	12,548		$	12,186		$	11,654		$	11,862
Interest-bearing deposits		87,266			73,785			64,977			55,477
Securities available for sale		177,387			164,993			186,296			161,504
Securities held to maturity		139,318			129,123			134,612			128,028
Mortgage loans held for sale		1,411			1,811			818			1,339
Gross loans		590,425			580,533			589,414			585,604
Loans, net		580,766			571,961			580,037			577,210
Intangible assets		10,614			11,698			11,019			12,102
Total assets		1,050,417			1,007,740			1,031,899			989,952
Total deposits		902,055			866,988			888,044			852,953
Other borrowings		---			---			---			---
Stockholders' equity		142,292			133,122			136,794			129,003
Interest-earning assets		990,999			944,837			973,171			926,901
Interest-bearing liabilities		760,567			740,745			752,164			730,135

Financial ratios
Return on average assets		1.85	%		1.50	%		1.71	%		1.57	%
Return on average equity		13.63	%		11.35	%		12.89	%		12.07	%
Net interest margin		4.50	%		4.47	%		4.59	%		4.52	%
Net interest income - fully taxable equivalent	$	11,230		$	10,654		$	44,635		$	41,914
Efficiency ratio		39.66	%		45.40	%		44.00	%		46.01	%
Average equity to average assets		13.55	%		13.21	%		13.26	%		13.03	%

Allowance for loan losses
Beginning balance	$	8,719		$	7,794		$	7,664		$	6,926
Provision for losses		753			1,200			2,949			3,409
Charge-offs		(983	)		(1,351	)		(2,186	)		(2,810	)
Recoveries		21			21			83			139
Ending balance	$	8,510		$	7,664		$	8,510		$	7,664

Asset Quality Data

(Unaudited)

Nonperforming assets	December 31, 2011			December 31, 2010
Nonaccrual loans	$	1,229		$	1,938
Nonaccrual restructured loans		2,742			6,133
Total nonperforming loans		3,971			8,071
Other real estate owned		1,489			1,723
Total nonperforming assets	$	5,460		$	9,794
Accruing restructured loans	$	4,820		$	350
Loans 90 days or more past due	$	766		$	1,336

Asset quality ratios
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned		0.92	%		1.69	%
Allowance for loan losses to total loans		1.45	%		1.33	%
Allowance for loan losses to nonperforming loans		214.30	%		94.96	%
Loans past due 90 days or more to loans net of unearned income and deferred fees		0.13	%		0.23	%