Indiana
|
35-1547518
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Class
|
Outstanding
at August 1, 2006
|
Common
Stock, no par value
|
11,008,821
|
PART
I.
|
FINANCIAL
INFORMATION
|
Item
1.
|
Financial
Statements
|
Consolidated
Balance Sheets - June 30, 2006 and December 31, 2005
|
|
Consolidated
Statements of Income and Comprehensive Income - Three and Six Months
Ended
June 30, 2006 and 2005
|
|
|
Consolidated Statements of Cash Flows - Six Months Ended June 30, 2006 and 2005 |
Notes
to Consolidated Financial Statements - June 30, 2006
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
Item
4.
|
Controls and Procedures |
PART
II.
|
OTHER
INFORMATION
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
Item
6.
|
Exhibits
|
SIGNATURES
|
|
EXHIBIT
INDEX
|
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(unaudited)
|
|||||||
ASSETS
|
|||||||
Cash
and Due from Banks
|
$
|
26,149
|
$
|
27,644
|
|||
Federal
Funds Sold and Other Short-term Investments
|
5,424
|
5,287
|
|||||
Cash
and Cash Equivalents
|
31,573
|
32,931
|
|||||
Interest-bearing
Time Deposits with Banks
|
200
|
---
|
|||||
Securities
Available-for-Sale, at Fair Value
|
198,037
|
181,150
|
|||||
Securities
Held-to-Maturity, at Cost (Fair value of $8,057 and
$8,811 on June 30, 2006 and December 31, 2005, respectively) |
7,981 |
8,684
|
|||||
Loans
Held-for-Sale
|
2,261
|
1,901
|
|||||
Total
Loans
|
707,407
|
653,074
|
|||||
Less:
Unearned Income
|
(1,620
|
)
|
(1,118
|
)
|
|||
Allowance
for Loan Losses
|
(9,019
|
)
|
(9,265
|
)
|
|||
Loans,
Net
|
696,768
|
642,691
|
|||||
Stock
in FHLB of Indianapolis and Other Restricted Stock, at
Cost
|
14,483
|
14,095
|
|||||
Premises,
Furniture and Equipment, Net
|
23,124
|
20,233
|
|||||
Other
Real Estate
|
987
|
506
|
|||||
Goodwill
|
9,372
|
3,813
|
|||||
Intangible
Assets
|
3,338
|
2,388
|
|||||
Company
Owned Life Insurance
|
21,197
|
19,067
|
|||||
Accrued
Interest Receivable and Other Assets
|
15,219
|
19,008
|
|||||
TOTAL
ASSETS
|
$
|
1,024,540
|
$
|
946,467
|
|||
LIABILITIES
|
|||||||
Non-interest-bearing
Demand Deposits
|
$
|
126,011
|
$
|
130,383
|
|||
Interest-bearing
Demand, Savings, and Money Market Accounts
|
320,605
|
307,664
|
|||||
Time
Deposits
|
358,157
|
308,774
|
|||||
Total
Deposits
|
804,773
|
746,821
|
|||||
FHLB
Advances and Other Borrowings
|
119,717
|
105,394
|
|||||
Accrued
Interest Payable and Other Liabilities
|
11,322
|
11,997
|
|||||
TOTAL
LIABILITIES
|
935,812
|
864,212
|
|||||
SHAREHOLDERS’
EQUITY
|
|||||||
Preferred
Stock, $10 par value; 500,000 shares authorized, no shares
issued
|
---
|
---
|
|||||
Common
Stock, no par value, $1 stated value; 20,000,000 shares
authorized
|
11,009
|
10,643
|
|||||
Additional
Paid-in Capital
|
68,193
|
63,784
|
|||||
Retained
Earnings
|
11,362
|
9,391
|
|||||
Accumulated
Other Comprehensive Loss
|
(1,836
|
)
|
(1,563
|
)
|
|||
TOTAL
SHAREHOLDERS’ EQUITY
|
88,728
|
82,255
|
|||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
1,024,540
|
$
|
946,467
|
|||
End
of period shares issued and outstanding
|
11,008,821
|
10,643,514
|
Three
Months
Ended
|
|||||||
June
30,
|
|||||||
2006
|
2005
|
||||||
INTEREST
INCOME
|
|||||||
Interest
and Fees on Loans
|
$
|
12,813
|
$
|
10,074
|
|||
Interest
on Federal Funds Sold and Other Short-term Investments
|
136
|
52
|
|||||
Interest
and Dividends on Securities:
|
|||||||
Taxable
|
1,928
|
1,475
|
|||||
Non-taxable
|
500
|
571
|
|||||
TOTAL
INTEREST INCOME
|
15,377
|
12,172
|
|||||
INTEREST
EXPENSE
|
|||||||
Interest
on Deposits
|
5,068
|
3,082
|
|||||
Interest
on FHLB Advances and Other Borrowings
|
1,411
|
1,115
|
|||||
TOTAL
INTEREST EXPENSE
|
6,479
|
4,197
|
|||||
NET
INTEREST INCOME
|
8,898
|
7,975
|
|||||
Provision
for Loan Losses
|
54
|
691
|
|||||
NET
INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
|
8,844
|
7,284
|
|||||
NON-INTEREST
INCOME
|
|||||||
Trust
and Investment Product Fees
|
565
|
508
|
|||||
Service
Charges on Deposit Accounts
|
1,010
|
944
|
|||||
Insurance
Revenues
|
1,109
|
1,221
|
|||||
Other
Operating Income
|
590
|
655
|
|||||
Gain
on Sales of Loans and Related Assets
|
454
|
229
|
|||||
Gain
/ (Loss) on Sales of Securities
|
---
|
---
|
|||||
TOTAL
NON-INTEREST INCOME
|
3,728
|
3,557
|
|||||
NON-INTEREST
EXPENSE
|
|||||||
Salaries
and Employee Benefits
|
5,367
|
4,531
|
|||||
Occupancy
Expense
|
638
|
610
|
|||||
Furniture
and Equipment Expense
|
564
|
506
|
|||||
Data
Processing Fees
|
413
|
311
|
|||||
Professional
Fees
|
464
|
497
|
|||||
Advertising
and Promotions
|
199
|
156
|
|||||
Supplies
|
125
|
107
|
|||||
Other
Operating Expenses
|
1,344
|
990
|
|||||
TOTAL
NON-INTEREST EXPENSE
|
9,114
|
7,708
|
|||||
Income
before Income Taxes
|
3,458
|
3,133
|
|||||
Income
Tax Expense
|
970
|
725
|
|||||
NET
INCOME
|
$
|
2,488
|
$
|
2,408
|
|||
COMPREHENSIVE
INCOME
|
$
|
2,265
|
$
|
2,948
|
|||
Earnings
Per Share and Diluted Earnings Per Share
|
$
|
0.23
|
$
|
0.22
|
|||
Dividends
Per Share
|
$
|
0.14
|
$
|
0.14
|
Six
Months Ended
|
|||||||
June
30,
|
|||||||
2006
|
2005
|
||||||
INTEREST
INCOME
|
|||||||
Interest
and Fees on Loans
|
$
|
25,195
|
$
|
19,988
|
|||
Interest
on Federal Funds Sold and Other Short-term Investments
|
262
|
139
|
|||||
Interest
and Dividends on Securities:
|
|||||||
Taxable
|
3,670
|
2,905
|
|||||
Non-taxable
|
998
|
1,144
|
|||||
TOTAL
INTEREST INCOME
|
30,125
|
24,176
|
|||||
INTEREST
EXPENSE
|
|||||||
Interest
on Deposits
|
9,550
|
5,971
|
|||||
Interest
on FHLB Advances and Other Borrowings
|
2,801
|
2,231
|
|||||
TOTAL
INTEREST EXPENSE
|
12,351
|
8,202
|
|||||
NET
INTEREST INCOME
|
17,774
|
15,974
|
|||||
Provision
for Loan Losses
|
344
|
1,173
|
|||||
NET
INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
|
17,430
|
14,801
|
|||||
NON-INTEREST
INCOME
|
|||||||
Trust
and Investment Product Fees
|
1,126
|
1,072
|
|||||
Service
Charges on Deposit Accounts
|
1,875
|
1,767
|
|||||
Insurance
Revenues
|
2,530
|
2,466
|
|||||
Other
Operating Income
|
1,224
|
1,428
|
|||||
Gain
on Sales of Loans and Related Assets
|
667
|
465
|
|||||
Gain
/ (Loss) on Sales of Securities
|
---
|
---
|
|||||
TOTAL
NON-INTEREST INCOME
|
7,422
|
7,198
|
|||||
NON-INTEREST
EXPENSE
|
|||||||
Salaries
and Employee Benefits
|
10,551
|
9,127
|
|||||
Occupancy
Expense
|
1,334
|
1,209
|
|||||
Furniture
and Equipment Expense
|
1,086
|
1,015
|
|||||
Data
Processing Fees
|
818
|
637
|
|||||
Professional
Fees
|
882
|
911
|
|||||
Advertising
and Promotions
|
411
|
321
|
|||||
Supplies
|
266
|
231
|
|||||
Other
Operating Expenses
|
2,469
|
2,195
|
|||||
TOTAL
NON-INTEREST EXPENSE
|
17,817
|
15,646
|
|||||
Income
before Income Taxes
|
7,035
|
6,353
|
|||||
Income
Tax Expense
|
1,984
|
1,534
|
|||||
NET
INCOME
|
$
|
5,051
|
$
|
4,819
|
|||
COMPREHENSIVE
INCOME
|
$
|
4,778
|
$
|
4,286
|
|||
Earnings
Per Share and Diluted Earnings Per Share
|
$
|
0.46
|
$
|
0.44
|
|||
Dividends
Per Share
|
$
|
0.28
|
$
|
0.28
|
Six
Months
Ended
|
|||||||
June
30,
|
|||||||
2006
|
2005
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|||||||
Net
Income
|
$
|
5,051
|
$
|
4,819
|
|||
Adjustments
to Reconcile Net Income to Net Cash from Operating
Activities:
|
|||||||
Net
Amortization on Securities
|
3
|
334
|
|||||
Depreciation
and Amortization
|
1,351
|
1,288
|
|||||
Amortization
and Impairment of Mortgage Servicing Rights
|
271
|
207
|
|||||
Loans
Originated for Sale
|
(30,809
|
)
|
(31,853
|
)
|
|||
Proceeds
from Sales of Loans Held-for-Sale
|
30,564
|
32,043
|
|||||
Loss
on Investment in Limited Partnership
|
121
|
20
|
|||||
Provision
for Loan Losses
|
344
|
1,173
|
|||||
Gain
on Sale of Loans and Mortgage Servicing Rights, Net
|
(647
|
)
|
(441
|
)
|
|||
Loss
/ (Gain) on Securities, Net
|
---
|
---
|
|||||
Gain
on Sale of Other Real Estate and Repossessed Assets
|
(21
|
)
|
(23
|
)
|
|||
Gain
on Disposition and Impairment of Premises and Equipment
|
(1
|
)
|
(311
|
)
|
|||
FHLB
Stock Dividends
|
---
|
(287
|
)
|
||||
Increase
in Cash Surrender Value of Company Owned Life Insurance
|
(352
|
)
|
(374
|
)
|
|||
Equity
Based Compensation
|
156
|
---
|
|||||
Change
in Assets and Liabilities:
|
|||||||
Interest
Receivable and Other Assets
|
1,273
|
1,892
|
|||||
Interest
Payable and Other Liabilities
|
(1,593
|
)
|
(699
|
)
|
|||
Net
Cash from Operating Activities
|
5,711
|
7,788
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Proceeds
from Maturities of Securities Available-for-Sale
|
22,886
|
23,966
|
|||||
Purchase
of Securities Available-for-Sale
|
(34,154
|
)
|
(24,415
|
)
|
|||
Proceeds
from Maturities of Securities Held-to-Maturity
|
707
|
3,195
|
|||||
Purchase
of Loans
|
(9,601
|
)
|
(6,369
|
)
|
|||
Proceeds
from Sales of Loans
|
13,335
|
6,842
|
|||||
Loans
Made to Customers, Net of Payments Received
|
(11,891
|
)
|
3,122
|
||||
Proceeds
from Sales of Mortgage Servicing Rights
|
3,337
|
---
|
|||||
Proceeds
from Sales of Other Real Estate
|
398
|
327
|
|||||
Property
and Equipment Expenditures
|
(1,971
|
)
|
(431
|
)
|
|||
Proceeds
from the Sale of Property and Equipment
|
77
|
444
|
|||||
Acquire
Banking Entities
|
(4,111
|
)
|
---
|
||||
Net
Cash from Investing Activities
|
(20,988
|
)
|
6,681
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Change
in Deposits
|
10,498
|
(40,785
|
)
|
||||
Change
in Short-term Borrowings
|
4,101
|
17,703
|
|||||
Advances
of Long-term Debt
|
6,500
|
11,000
|
|||||
Repayments
of Long-term Debt
|
(4,118
|
)
|
(20,106
|
)
|
|||
Issuance
of Common Stock
|
18
|
36
|
|||||
Purchase
/ Retire Common Stock
|
---
|
(1,261
|
)
|
||||
Dividends
Paid
|
(3,080
|
)
|
(3,041
|
)
|
|||
Net
Cash from Financing Activities
|
13,919
|
(36,454
|
)
|
||||
Net
Change in Cash and Cash Equivalents
|
(1,358
|
)
|
(21,985
|
)
|
|||
Cash
and Cash Equivalents at Beginning of Year
|
32,931
|
47,666
|
|||||
Cash
and Cash Equivalents at End of Period
|
$
|
31,573
|
$
|
25,681
|
Three
Months
Ended
|
|||||||
June
30,
|
|||||||
Earnings
per Share:
|
2006
|
2005
|
|||||
Net
Income
|
$
|
2,488
|
$
|
2,408
|
|||
Weighted
Average Shares Outstanding
|
10,993,898
|
10,832,135
|
|||||
Earnings
per Share:
|
$
|
0.23
|
$
|
0.22
|
|||
Diluted
Earnings per Share:
|
|||||||
Net
Income
|
$
|
2,488
|
$
|
2,408
|
|||
Weighted
Average Shares Outstanding
|
10,993,898
|
10,832,135
|
|||||
Potentially
Dilutive Shares, Net
|
6,435
|
4,643
|
|||||
Diluted
Weighted Average Shares Outstanding
|
11,000,333
|
10,836,778
|
|||||
Diluted
Earnings per Share
|
$
|
0.23
|
$
|
0.22
|
Six
Months
Ended
|
|||||||
June
30,
|
|||||||
Earnings
per Share:
|
2006
|
2005
|
|||||
Net
Income
|
$
|
5,051
|
$
|
4,819
|
|||
Weighted
Average Shares Outstanding
|
10,993,567
|
10,863,370
|
|||||
Earnings
per Share:
|
$
|
0.46
|
$
|
0.44
|
|||
Diluted
Earnings per Share:
|
|||||||
Net
Income
|
$
|
5,051
|
$
|
4,819
|
|||
Weighted
Average Shares Outstanding
|
10,993,567
|
10,863,370
|
|||||
Potentially
Dilutive Shares, Net
|
8,622
|
10,401
|
|||||
Diluted
Weighted Average Shares Outstanding
|
11,002,189
|
10,873,771
|
|||||
Diluted
Earnings per Share
|
$
|
0.46
|
$
|
0.44
|
June
30,
|
December
31,
|
||||||
|
|
|
2006
|
2005
|
|||
U.S.
Treasury Securities and Obligations of U.S. Government Corporations
and
Agencies
|
$
|
22,485
|
$
|
13,492
|
|||
Obligations
of State and Political Subdivisions
|
23,604
|
23,527
|
|||||
Asset-/Mortgage-backed
Securities
|
131,610
|
125,844
|
|||||
Corporate
Securities
|
---
|
500
|
|||||
Equity
Securities
|
20,338
|
17,787
|
|||||
Total
|
$
|
198,037
|
$
|
181,150
|
Carrying
|
Fair
|
||||||
June
30, 2006:
|
Value
|
Value
|
|||||
Obligations
of State and Political Subdivisions
|
$
|
7,981
|
$
|
8,057
|
|||
December
31, 2005:
|
|||||||
Obligations
of State and Political Subdivisions
|
$
|
8,684
|
$
|
8,811
|
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Commercial
and Industrial Loans
|
$
|
357,461
|
$
|
319,241
|
|||
Residential
Mortgage Loans
|
112,236
|
102,891
|
|||||
Consumer
Loans
|
133,043
|
129,587
|
|||||
Agricultural
Loans
|
104,667
|
101,355
|
|||||
Total
Loans
|
$
|
707,407
|
$
|
653,074
|
|||
Less:
Unearned Income
|
(1,620
|
)
|
(1,118
|
)
|
|||
Allowance
for Loan Losses
|
(9,019
|
)
|
(9,265
|
)
|
|||
Loans,
Net
|
$
|
696,768
|
$ |
642,691
|
June
30,
|
June
30,
|
||||||
2006
|
2005
|
||||||
Balance
at January 1
|
$
|
9,265
|
$
|
8,801
|
|||
Allowance
of Acquired Affiliate
|
484
|
---
|
|||||
Provision
for Loan Losses
|
344
|
1,173
|
|||||
Recoveries
of Prior Loan Losses
|
152
|
234
|
|||||
Loan
Losses Charged to the Allowance
|
(1,226
|
)
|
(707
|
)
|
|||
Balance
at June 30
|
$
|
9,019
|
$
|
9,501
|
Three Months Ended |
Trust
and
|
Holding
|
|||||||||||||||||
June
30, 2006
|
Investment
|
Company
|
|||||||||||||||||
Core
|
Mortgage
|
Advisory
|
and
|
Consolidated
|
|||||||||||||||
Banking
|
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
||||||||||||||
Net
Interest Income
|
$
|
9,068
|
$
|
158
|
$
|
15
|
$
|
27
|
$
|
(370
|
)
|
$
|
8,898
|
||||||
Gain
on Sales of Loans and
|
|||||||||||||||||||
Related
Assets
|
172
|
282
|
---
|
---
|
---
|
454
|
|||||||||||||
Net
Gain / (Loss) on Securities
|
---
|
---
|
---
|
---
|
---
|
---
|
|||||||||||||
Servicing
Income
|
---
|
231
|
---
|
---
|
(29
|
)
|
202
|
||||||||||||
Trust
and Investment Product Fees
|
1
|
---
|
586
|
---
|
(22
|
)
|
565
|
||||||||||||
Insurance
Revenues
|
26
|
29
|
3
|
1,072
|
(21
|
)
|
1,109
|
||||||||||||
Noncash
Items:
|
|||||||||||||||||||
Provision
for Loan Losses
|
286
|
(25
|
)
|
---
|
---
|
(207
|
)
|
54
|
|||||||||||
MSR
Amortization & Valuation
|
---
|
161
|
---
|
---
|
---
|
161
|
|||||||||||||
Provision
for Income Taxes
|
1,668
|
87
|
33
|
73
|
(891
|
)
|
970
|
||||||||||||
Segment
Profit / (Loss)
|
3,592
|
132
|
48
|
126
|
(1,410
|
)
|
2,488
|
||||||||||||
Segment
Assets
|
999,960
|
11,862
|
2,154
|
7,362
|
3,202
|
1,024,540
|
Three Months Ended |
Trust
and
|
Holding
|
|||||||||||||||||
June
30, 2005
|
Investment
|
Company
|
|||||||||||||||||
Core
|
Mortgage
|
Advisory
|
and
|
Consolidated
|
|||||||||||||||
Banking
|
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
Net
Interest Income
|
$
|
7,913
|
$
|
186
|
$
|
9
|
$
|
8
|
$
|
(141
|
)
|
$
|
7,975
|
||||||
Gain
on Sales of Loans and
|
|||||||||||||||||||
Related
Assets
|
157
|
72
|
---
|
---
|
---
|
229
|
|||||||||||||
Net
Gain / (Loss) on Securities
|
---
|
---
|
---
|
---
|
---
|
---
|
|||||||||||||
Servicing
Income
|
---
|
234
|
---
|
---
|
(35
|
)
|
199
|
||||||||||||
Trust
and Investment Product Fees
|
1
|
---
|
527
|
---
|
(20
|
)
|
508
|
||||||||||||
Insurance
Revenues
|
25
|
21
|
3
|
1,197
|
(25
|
)
|
1,221
|
||||||||||||
Noncash
Items:
|
|||||||||||||||||||
Provision
for Loan Losses
|
691
|
---
|
---
|
---
|
---
|
691
|
|||||||||||||
MSR
Amortization & Valuation
|
---
|
307
|
---
|
---
|
---
|
307
|
|||||||||||||
Provision
for Income Taxes
|
1,360
|
(46
|
)
|
17
|
99
|
(705
|
)
|
725
|
|||||||||||
Segment
Profit / (Loss)
|
3,272
|
(70
|
)
|
24
|
183
|
(1,001
|
)
|
2,408
|
|||||||||||
Segment
Assets
|
881,358
|
20,625
|
2,160
|
7,588
|
(2,504
|
)
|
909,227
|
Six Months Ended |
Trust
and
|
Holding
|
|||||||||||||||||
June
30, 2006
|
Investment
|
Company
|
|||||||||||||||||
Core
|
Mortgage
|
Advisory
|
and
|
Consolidated
|
|||||||||||||||
Banking
|
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
Net
Interest Income
|
$
|
18,149
|
$
|
317
|
$
|
28
|
$
|
50
|
$
|
(770
|
)
|
$
|
17,774
|
||||||
Gain
on Sales of Loans and
|
|||||||||||||||||||
Related
Assets
|
328
|
339
|
---
|
---
|
---
|
667
|
|||||||||||||
Net
Gain / (Loss) on Securities
|
---
|
---
|
---
|
---
|
---
|
---
|
|||||||||||||
Servicing
Income
|
---
|
473
|
---
|
---
|
(60
|
)
|
413
|
||||||||||||
Trust
and Investment Product Fees
|
2
|
---
|
1,168
|
---
|
(44
|
)
|
1,126
|
||||||||||||
Insurance
Revenues
|
49
|
50
|
6
|
2,468
|
(43
|
)
|
2,530
|
||||||||||||
Noncash
Items:
|
|||||||||||||||||||
Provision
for Loan Losses
|
826
|
(25
|
)
|
---
|
---
|
(457
|
)
|
344
|
|||||||||||
MSR
Amortization & Valuation
|
---
|
271
|
---
|
---
|
---
|
271
|
|||||||||||||
Provision
for Income Taxes
|
3,198
|
110
|
68
|
264
|
(1,656
|
)
|
1,984
|
||||||||||||
Segment
Profit / (Loss)
|
7,132
|
167
|
100
|
451
|
(2,799
|
)
|
5,051
|
||||||||||||
Segment
Assets
|
999,960
|
11,862
|
2,154
|
7,362
|
3,202
|
1,024,540
|
Six Months Ended |
Trust
and
|
Holding
|
|||||||||||||||||
June
30, 2005
|
Investment
|
Company
|
|||||||||||||||||
Core
|
Mortgage
|
Advisory
|
and
|
Consolidated
|
|||||||||||||||
Banking
|
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
Net
Interest Income
|
$
|
15,986
|
$
|
219
|
$
|
17
|
$
|
11
|
$
|
(259
|
)
|
$
|
15,974
|
||||||
Gain
on Sales of Loans and
|
|||||||||||||||||||
Related
Assets
|
329
|
136
|
---
|
---
|
---
|
465
|
|||||||||||||
Net
Gain / (Loss) on Securities
|
---
|
---
|
---
|
---
|
---
|
---
|
|||||||||||||
Servicing
Income
|
---
|
467
|
---
|
---
|
(70
|
)
|
397
|
||||||||||||
Trust
and Investment Product Fees
|
3
|
---
|
1,111
|
---
|
(42
|
)
|
1,072
|
||||||||||||
Insurance
Revenues
|
83
|
38
|
7
|
2,368
|
(30
|
)
|
2,466
|
||||||||||||
Noncash
Items:
|
|||||||||||||||||||
Provision
for Loan Losses
|
1,253
|
(80
|
)
|
---
|
---
|
---
|
1,173
|
||||||||||||
MSR
Amortization & Valuation
|
---
|
207
|
---
|
---
|
---
|
207
|
|||||||||||||
Provision
for Income Taxes
|
2,680
|
21
|
45
|
194
|
(1,406
|
)
|
1,534
|
||||||||||||
Segment
Profit / (Loss)
|
6,445
|
32
|
67
|
288
|
(2,013
|
)
|
4,819
|
||||||||||||
Segment
Assets
|
881,358
|
20,625
|
2,160
|
7,588
|
(2,504
|
)
|
909,227
|
Six
Months Ended
|
|||||||
|
|
June
30, 2006
|
|||||
Weighted
|
|||||||
Average
|
|||||||
Number
|
Price
|
||||||
Of
Options
|
Per
Share
|
||||||
Outstanding
at beginning of period
|
405,019
|
$
|
16.37
|
||||
Granted
|
11,000
|
13.25
|
|||||
Exercised
|
12,663
|
12.58
|
|||||
Forfeited
|
---
|
---
|
|||||
Expired
|
21,109
|
$
|
16.53
|
||||
Outstanding
at end of period
|
382,247
|
$
|
16.40
|
June
30,
2006
|
December
31,
2005
|
||||||
Stock
Options vested and currently exercisable:
|
|||||||
Number
of Options
|
382,247
|
405,019
|
|||||
Weighted
average exercise price
|
$
|
16.40
|
$
|
16.37
|
|||
Weighted
average remaining life (in years)
|
5.13
|
5.04
|
|||||
Aggregate
intrinsic value
|
$
|
6
|
$
|
22
|
Six
Months Ended
|
|||||||
June
30, 2006
|
|||||||
|
Weighted
|
||||||
Restricted
|
Average
Market
|
||||||
Shares
|
Price
at Grant
|
||||||
Outstanding
at Beginning of Period
|
---
|
---
|
|||||
Granted
|
14,135
|
$
|
12.97
|
||||
Released
|
---
|
---
|
|||||
Forfeited
|
---
|
---
|
|||||
Outstanding
at End of Period
|
14,135
|
$
|
12.97
|
Three
Months
Ended
|
||||
June
30, 2005
|
||||
Net
Income as Reported
|
$
|
2,408
|
||
Compensation
Expense Under Fair Value Method, Net of Tax
|
58
|
|||
Pro
forma Net Income
|
$
|
2,350
|
||
Pro
forma Earnings per Share and Diluted Earnings per Share
|
$
|
0.22
|
||
Earnings
per Share and Diluted Earnings per Share as Reported
|
$
|
0.22
|
Six
Months
Ended
|
||||
June
30, 2005
|
||||
Net
Income as Reported
|
$
|
4,819
|
||
Compensation
Expense Under Fair Value Method, Net of Tax
|
105
|
|||
Pro
forma Net Income
|
$
|
4,714
|
||
Pro
forma Earnings per Share and Diluted Earnings per Share
|
$
|
0.43
|
||
Earnings
per Share and Diluted Earnings per Share as Reported
|
$
|
0.44
|
Three
Months Ended
|
|||||||
June
30,
|
|||||||
2006
|
2005
|
||||||
Service
Cost
|
$
|
---
|
$
|
---
|
|||
Interest
Cost
|
13
|
13
|
|||||
Expected
Return on Assets
|
(6
|
)
|
(6
|
) | |||
Amortization
of Transition Amount
|
(1
|
)
|
(1
|
)
|
|||
Amortization
of Prior Service Cost
|
(1
|
)
|
(1
|
)
|
|||
Recognition
of Net Loss
|
10
|
8
|
|||||
Net
Periodic Benefit Cost
|
$
|
15
|
$
|
13
|
|||
Loss
on Settlements and Curtailments
|
None
|
None
|
Six
Months Ended
|
|||||||
June
30,
|
|||||||
2006
|
2005
|
||||||
Service
Cost
|
$
|
---
|
$
|
---
|
|||
Interest
Cost
|
25
|
25
|
|||||
Expected
Return on Assets
|
(11
|
)
|
(12
|
) | |||
Amortization
of Transition Amount
|
(1
|
)
|
(1
|
)
|
|||
Amortization
of Prior Service Cost
|
(1
|
)
|
(2
|
)
|
|||
Recognition
of Net Loss
|
19
|
16
|
|||||
Net
Periodic Benefit Cost
|
$
|
31
|
$
|
26
|
|||
Loss
on Settlements and Curtailments
|
None
|
None
|
Three
Months
|
Change
from
|
||||||||||||
Ended
June 30,
|
Prior
Period
|
||||||||||||
2006
|
2005
|
Amount
|
Percent
|
||||||||||
Interest
Income (T/E)
|
$
|
15,666
|
$
|
12,495
|
$
|
3,171
|
25.4%
|
|
|||||
Interest
Expense
|
6,479
|
4,197
|
2,282
|
54.4%
|
|
||||||||
Net
Interest Income (T/E)
|
$
|
9,187
|
$
|
8,298
|
$
|
889
|
10.7%
|
|
Six
Months
|
Change
from
|
||||||||||||
Ended
June 30,
|
Prior
Period
|
||||||||||||
2006
|
2005
|
Amount
|
Percent
|
||||||||||
Interest
Income (T/E)
|
$
|
30,697
|
$
|
24,823
|
$
|
5,874
|
23.7%
|
|
|||||
Interest
Expense
|
12,351
|
8,202
|
4,149
|
50.6%
|
|
||||||||
Net
Interest Income (T/E)
|
$
|
18,346
|
$
|
16,621
|
$
|
1,725
|
10.4%
|
|
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Non-accrual
Loans
|
$
|
9,853
|
$
|
14,763
|
|||
Past
Due Loans (90 days or more)
|
1,885
|
944
|
|||||
Restructured
Loans
|
---
|
---
|
|||||
Total
Non-performing Loans
|
11,738
|
15,707
|
|||||
Other
Real Estate
|
987
|
506
|
|||||
Total
Non-performing Assets
|
$
|
12,725
|
$
|
16,213
|
|||
Allowance
for Loan Loss to Non-performing Loans
|
76.84
|
%
|
58.99
|
%
|
|||
Non-performing
Loans to Total Loans
|
1.66
|
%
|
2.41
|
%
|
To
be Well
|
|||||||||||||
Capitalized
|
|||||||||||||
|
Under
Prompt
|
||||||||||||
Minimum
for
|
Corrective
|
||||||||||||
Capital
|
Action
|
At
|
At
|
||||||||||
Adequacy
|
Provisions
|
June
30,
|
December
31,
|
||||||||||
Purposes
|
(FDICIA)
|
2006
|
2005
|
||||||||||
|
|||||||||||||
Leverage
Ratio
|
4.00%
|
|
5.00%
|
|
7.76%
|
|
8.01%
|
|
|||||
Tier
1 Capital to Risk-adjusted Assets
|
4.00%
|
|
6.00%
|
|
9.61%
|
|
10.01%
|
|
|||||
Total
Capital to Risk-adjusted Assets
|
8.00%
|
|
10.00%
|
|
10.84%
|
|
11.27%
|
|
|
Net
Portfolio Value
|
||||||||||||
Net
Portfolio
|
as
a % of Present Value
|
||||||||||||
Value
|
of
Assets
|
||||||||||||
Changes
|
|||||||||||||
In
rates
|
$
Amount
|
%
Change
|
NPV
Ratio
|
Change
|
|||||||||
+2%
|
$
|
122,997
|
(4.81)%
|
|
12.36 |