press_release.htm

($ in thousands, except for per share data)	September 30, 2011			September 30, 2010			December 31, 2010
Assets
Cash and due from banks	$	12,530		$	12,540		$	9,858
Interest-bearing deposits		69,902			55,367			69,400
Federal funds sold		---			---			---
Securities available for sale		180,126			154,980			184,907
Securities held to maturity		138,148			127,480			131,000
Total securities		318,274			282,460			315,907
Mortgage loans held for sale		1,108			1,732			2,460
Loans:
Real estate construction loans		47,346			48,908			46,169
Real estate mortgage loans		169,827			173,753			173,533
Commercial and industrial loans		298,816			269,620			269,818
Consumer loans		81,392			91,328			87,868
Total loans		597,381			583,609			577,388
Less: unearned income and deferred fees		(965	)		(975	)		(945	)
Loans, net of unearned income and deferred fees		596,416			582,634			576,443
Less: allowance for loan losses		(8,719	)		(7,794	)		(7,664	)
Loans, net		587,697			574,840			568,779
Bank premises and equipment, net		10,328			10,608			10,470
Accrued interest receivable		6,359			6,000			6,016
Other real estate owned		1,759			3,026			1,723
Intangible assets		10,730			11,814			11,543
Other assets		23,435			24,060			26,082
Total assets	$	1,042,122		$	982,447		$	1,022,238

Liabilities and Stockholders' Equity
Noninterest-bearing deposits	$	140,609		$	125,877		$	131,540
Interest-bearing demand deposits		381,571			316,820			365,040
Savings deposits		59,395			55,695			55,800
Time deposits		312,660			343,464			332,203
Total deposits		894,235			841,856			884,583
Other borrowed funds		---			---			---
Accrued interest payable		207			304			257
Other liabilities		5,860			7,673			8,211
Total liabilities		900,302			849,833			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 6,937,974 shares at September 30, 2011, 6,933,474 at September 30, 2010 and 6,933,474 at December 31, 2010		8,672			8,667			8,667
Retained earnings		132,638			122,612			123,161
Accumulated other comprehensive gains (losses), net		510			1,335			(2,641	)
Total stockholders' equity		141,820			132,614			129,187
Total liabilities and stockholders' equity	$	1,042,122		$	982,447		$	1,022,238

	Three Months Ended					Nine Months Ended
	September 30, 2011			September 30, 2010		September 30, 2011			September 30, 2010
($ in thousands, except for per share data)
Interest Income
Interest and fees on loans	$	9,184		$	9,284	$	27,386		$	27,720
Interest on federal funds		---			---		---			---
Interest on interest-bearing deposits		37			36		104			85
Interest on securities - taxable		1,740			1,325		5,115			4,234
Interest on securities - nontaxable		1,616			1,642		4,912			4,835
Total interest income		12,577			12,287		37,517			36,874

Interest Expense
Interest on time deposits of $100,000 or more		485			855		1,551			2,695
Interest on other deposits		1,797			1,871		5,456			5,860
Interest on borrowed funds		---			---		---			---
Total interest expense		2,282			2,726		7,007			8,555
Net interest income		10,295			9,561		30,510			28,319
Provision for loan losses		643			710		2,196			2,209
Net interest income after provision for loan losses		9,652			8,851		28,314			26,110

Noninterest Income
Service charges on deposit accounts		692			706		1,952			2,192
Other service charges and fees		57			63		174			214
Credit card fees		805			745		2,365			2,171
Trust income		264			316		817			846
Bank-owned life insurance		189			197		559			558
Other income		125			72		293			215
Realized securities gains (losses), net		(3	)		2		(7	)		(1	)
Total noninterest income		2,129			2,101		6,153			6,195

Noninterest Expense
Salaries and employee benefits		2,834			2,695		8,561			8,205
Occupancy and furniture and fixtures		349			451		1,207			1,419
Data processing and ATM		416			414		1,289			1,120
FDIC assessment		353			273		1,049			805
Credit card processing		639			588		1,871			1,680
Intangibles and goodwill amortization		271			270		813			812
Net costs of other real estate owned		52			120		281			180
Franchise taxes		162			241		619			722
Other operating expenses		811			774		2,306			2,364
Total noninterest expense		5,887			5,826		17,996			17,307
Income before income tax expense		5,894			5,126		16,471			14,998
Income tax expense		1,385			1,129		3,722			3,236
Net income	$	4,509		$	3,997	$	12,749		$	11,762

Basic net income per share	$	0.65		$	0.58	$	1.84		$	1.70
Fully diluted net income per share	$	0.65		$	0.58	$	1.83		$	1.69
Weighted average outstanding number of common shares
Basic		6,937,947			6,933,474		6,936,100			6,933,474
Diluted		6,945,174			6,942,919		6,951,155			6,947,460
Dividends declared per share		---			---	$	0.48		$	0.44
Dividend payout ratio		---			---		26.11			25.94
Book value per share	$	---		$	---	$	20.44		$	19.13

	Three Months Ended						Nine Months Ended
Average Balances	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Cash and due from banks	$	11,709		$	11,732		$	11,807		$	11,404
Interest-bearing deposits		57,402			61,389			56,998			49,658
Securities available for sale		191,763			155,602			189,298			160,326
Securities held to maturity		134,519			129,416			133,160			127,659
Mortgage loans held for sale		647			1,918			618			1,181
Gross loans		593,544			584,510			589,074			587,312
Loans, net		583,960			575,921			579,827			578,978
Intangible assets		10,886			11,969			11,155			12,238
Total assets		1,032,823			990,306			1,025,778			983,981
Total deposits		887,218			852,021			883,309			848,223
Other borrowings		---			---			---			---
Stockholders' equity		138,767			130,535			135,069			127,613
Interest-earning assets		973,705			928,140			966,796			921,431
Interest-bearing liabilities		749,626			727,328			749,332			726,559

Financial ratios
Return on average assets		1.75	%		1.60	%		1.66	%		1.60	%
Return on average equity		13.03	%		12.15	%		12.62	%		12.32	%
Net interest margin		4.64	%		4.50	%		4.62	%		4.54	%
Net interest income - fully taxable equivalent	$	11,259		$	10,530		$	33,405		$	31,260
Efficiency ratio		43.96	%		46.05	%		45.49	%		46.21	%
Average equity to average assets		13.44	%		13.18	%		13.17	%		12.97	%

Allowance for loan losses
Beginning balance	$	8,494		$	7,553		$	7,664		$	6,926
Provision for losses		643			710			2,196			2,209
Charge-offs		(446	)		(488	)		(1,205	)		(1,459	)
Recoveries		28			19			64			118
Ending balance	$	8,719		$	7,794		$	8,719		$	7,794

Nonperforming assets	September 30, 2011			September 30, 2010
Nonaccrual loans	$	1,263		$	7,639
Nonaccrual restructured loans		3,081			---
Total nonperforming loans		4,344			7,639
Other real estate owned		1,759			3,026
Total nonperforming assets	$	6,103		$	10,665
Accruing restructured loans	$	5,524			---
Loans 90 days or more past due	$	340		$	533

Asset quality ratios

Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned		1.02	%		1.82	%
Allowance for loan losses to total loans		1.46	%		1.34	%
Allowance for loan losses to nonperforming loans		200.71	%		102.03	%
Loans past due 90 days or more to loans net of unearned income and deferred fees		0.06	%		0.09	%