Indiana
|
35-1547518
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Class
|
Outstanding
at November 3, 2008
|
Common
Stock, no par value
|
11,029,869
|
PART
I.
|
FINANCIAL
INFORMATION
|
3
|
Item
1.
|
Financial
Statements
|
3
|
Consolidated
Balance Sheets - September 30, 2008 and December 31, 2007
|
3
|
|
Consolidated
Statements of Income and Comprehensive Income - Three and Nine Months
Ended September 30, 2008 and 2007
|
4-5
|
|
Consolidated
Statements of Cash Flows - Nine Months Ended September 30, 2008 and
2007
|
6
|
|
Notes
to Consolidated Financial Statements - September 30, 2008
|
7-15
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
16-24
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
25
|
Item
4.
|
Controls
and Procedures
|
26
|
PART
II.
|
OTHER
INFORMATION
|
26
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
26
|
Item
6.
|
Exhibits
|
26
|
SIGNATURES
|
27
|
|
INDEX
OF EXHIBITS
|
28
|
September 30,
|
December 31,
|
||||||
2008
|
2007
|
||||||
ASSETS
|
|||||||
Cash
and Due from Banks
|
$
|
22,741
|
$
|
25,283
|
|||
Federal
Funds Sold and Other Short-term Investments
|
16,047
|
2,631
|
|||||
Cash
and Cash Equivalents
|
38,788
|
27,914
|
|||||
Securities
Available-for-Sale, at Fair Value
|
147,947
|
148,300
|
|||||
Securities
Held-to-Maturity, at Cost (Fair value of $3,544 and $4,496 on September
30, 2008 and December 31, 2007, respectively)
|
3,491
|
4,464
|
|||||
Loans
Held-for-Sale
|
4,993
|
5,697
|
|||||
Loans
|
889,085
|
870,643
|
|||||
Less:
Unearned Income
|
(2,278
|
)
|
(2,922
|
)
|
|||
Allowance for Loan Losses
|
(9,358
|
)
|
(8,044
|
)
|
|||
Loans,
Net
|
877,449
|
859,677
|
|||||
Stock
in FHLB of Indianapolis and Other Restricted Stock, at
Cost
|
10,621
|
10,621
|
|||||
Premises,
Furniture and Equipment, Net
|
22,807
|
22,783
|
|||||
Other
Real Estate
|
3,757
|
1,517
|
|||||
Goodwill
|
9,655
|
9,655
|
|||||
Intangible
Assets
|
3,363
|
4,030
|
|||||
Company
Owned Life Insurance
|
23,144
|
22,533
|
|||||
Accrued
Interest Receivable and Other Assets
|
32,586
|
14,519
|
|||||
TOTAL
ASSETS
|
$
|
1,178,601
|
$
|
1,131,710
|
|||
LIABILITIES
|
|||||||
Non-interest-bearing
Demand Deposits
|
$
|
147,196
|
$
|
136,212
|
|||
Interest-bearing
Demand, Savings, and Money Market Accounts
|
420,827
|
353,643
|
|||||
Time
Deposits
|
338,340
|
387,566
|
|||||
Total
Deposits
|
906,363
|
877,421
|
|||||
FHLB
Advances and Other Borrowings
|
157,893
|
144,170
|
|||||
Accrued
Interest Payable and Other Liabilities
|
13,324
|
13,003
|
|||||
TOTAL
LIABILITIES
|
1,077,580
|
1,034,594
|
|||||
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
|
11,030
|
11,029
|
|||||
Additional
Paid-in Capital
|
68,367
|
68,408
|
|||||
Retained
Earnings
|
21,210
|
16,681
|
|||||
Accumulated
Other Comprehensive Income
|
414
|
998
|
|||||
TOTAL
SHAREHOLDERS’ EQUITY
|
101,021
|
97,116
|
|||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
1,178,601
|
$
|
1,131,710
|
|||
End
of period shares issued and outstanding
|
11,030,288
|
11,029,484
|
Three Months Ended
|
|||||||
September 30,
|
|||||||
2008
|
2007
|
||||||
INTEREST
INCOME
|
|||||||
Interest
and Fees on Loans
|
$
|
14,414
|
$
|
16,585
|
|||
Interest
on Federal Funds Sold and Other Short-term Investments
|
97
|
145
|
|||||
Interest
and Dividends on Securities:
|
|||||||
Taxable
|
2,045
|
1,694
|
|||||
Non-taxable
|
173
|
214
|
|||||
TOTAL
INTEREST INCOME
|
16,729
|
18,638
|
|||||
INTEREST
EXPENSE
|
|||||||
Interest
on Deposits
|
4,893
|
7,326
|
|||||
Interest
on FHLB Advances and Other Borrowings
|
1,390
|
1,581
|
|||||
TOTAL
INTEREST EXPENSE
|
6,283
|
8,907
|
|||||
NET
INTEREST INCOME
|
10,446
|
9,731
|
|||||
Provision
for Loan Losses
|
838
|
941
|
|||||
NET
INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
9,608
|
8,790
|
|||||
NON-INTEREST
INCOME
|
|||||||
Trust
and Investment Product Fees
|
618
|
653
|
|||||
Service
Charges on Deposit Accounts
|
1,293
|
1,122
|
|||||
Insurance
Revenues
|
1,402
|
1,349
|
|||||
Other
Operating Income
|
787
|
672
|
|||||
Net
Gains on Sales of Loans and Related Assets
|
330
|
212
|
|||||
Net
Loss on Securities
|
(106
|
)
|
—
|
||||
TOTAL
NON-INTEREST INCOME
|
4,324
|
4,008
|
|||||
NON-INTEREST
EXPENSE
|
|||||||
Salaries
and Employee Benefits
|
5,225
|
5,395
|
|||||
Occupancy
Expense
|
807
|
810
|
|||||
Furniture
and Equipment Expense
|
601
|
519
|
|||||
Data
Processing Fees
|
355
|
338
|
|||||
Professional
Fees
|
365
|
257
|
|||||
Advertising
and Promotion
|
250
|
250
|
|||||
Supplies
|
143
|
160
|
|||||
Other
Operating Expenses
|
1,413
|
1,395
|
|||||
TOTAL
NON-INTEREST EXPENSE
|
9,159
|
9,124
|
|||||
Income
before Income Taxes
|
4,773
|
3,674
|
|||||
Income
Tax Expense
|
1,454
|
1,166
|
|||||
NET
INCOME
|
$
|
3,319
|
$
|
2,508
|
|||
COMPREHENSIVE
INCOME
|
$
|
4,404
|
$
|
3,761
|
|||
Earnings
Per Share and Diluted Earnings Per Share
|
$
|
0.30
|
$
|
0.23
|
|||
Dividends
Per Share
|
$
|
0.14
|
$
|
0.14
|
Nine Months Ended
|
|||||||
September 30,
|
|||||||
2008
|
2007
|
||||||
INTEREST
INCOME
|
|||||||
Interest
and Fees on Loans
|
$
|
44,299
|
$
|
47,498
|
|||
Interest
on Federal Funds Sold and Other Short-term Investments
|
566
|
349
|
|||||
Interest
and Dividends on Securities:
|
|||||||
Taxable
|
5,929
|
5,346
|
|||||
Non-taxable
|
538
|
732
|
|||||
TOTAL
INTEREST INCOME
|
51,332
|
53,925
|
|||||
INTEREST
EXPENSE
|
|||||||
Interest
on Deposits
|
16,404
|
20,581
|
|||||
Interest
on FHLB Advances and Other Borrowings
|
4,298
|
4,744
|
|||||
TOTAL
INTEREST EXPENSE
|
20,702
|
25,325
|
|||||
NET
INTEREST INCOME
|
30,630
|
28,600
|
|||||
Provision
for Loan Losses
|
3,116
|
3,244
|
|||||
NET
INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
27,514
|
25,356
|
|||||
NON-INTEREST
INCOME
|
|||||||
Trust
and Investment Product Fees
|
1,841
|
1,994
|
|||||
Service
Charges on Deposit Accounts
|
3,721
|
3,154
|
|||||
Insurance
Revenues
|
4,612
|
4,394
|
|||||
Other
Operating Income
|
2,438
|
2,098
|
|||||
Net
Gains on Sales of Loans and Related Assets
|
1,058
|
545
|
|||||
Net
Gain on Securities
|
179
|
—
|
|||||
TOTAL
NON-INTEREST INCOME
|
13,849
|
12,185
|
|||||
NON-INTEREST
EXPENSE
|
|||||||
Salaries
and Employee Benefits
|
15,670
|
16,452
|
|||||
Occupancy
Expense
|
2,467
|
2,351
|
|||||
Furniture
and Equipment Expense
|
1,811
|
1,676
|
|||||
Data
Processing Fees
|
1,132
|
1,037
|
|||||
Professional
Fees
|
1,370
|
998
|
|||||
Advertising
and Promotion
|
776
|
619
|
|||||
Supplies
|
417
|
449
|
|||||
Other
Operating Expenses
|
3,849
|
4,486
|
|||||
TOTAL
NON-INTEREST EXPENSE
|
27,492
|
28,068
|
|||||
Income
before Income Taxes
|
13,871
|
9,473
|
|||||
Income
Tax Expense
|
4,421
|
2,843
|
|||||
NET
INCOME
|
$
|
9,450
|
$
|
6,630
|
|||
COMPREHENSIVE
INCOME
|
$
|
8,866
|
$
|
6,776
|
|||
Earnings
Per Share and Diluted Earnings Per Share
|
$
|
0.85
|
$
|
0.60
|
|||
Dividends
Per Share
|
$
|
0.42
|
$
|
0.42
|
Nine Months Ended
|
|||||||
September 30,
|
|||||||
2008
|
2007
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|||||||
Net
Income
|
$
|
9,450
|
$
|
6,630
|
|||
Adjustments
to Reconcile Net Income to Net Cash from Operating
Activities:
|
|||||||
Net
Accretion on Securities
|
(674
|
)
|
(282
|
)
|
|||
Depreciation
and Amortization
|
2,526
|
2,379
|
|||||
Loans
Originated for Sale
|
(83,650
|
)
|
(48,157
|
)
|
|||
Proceeds
from Sales of Loans Held-for-Sale
|
85,412
|
45,741
|
|||||
Loss
in Investment in Limited Partnership
|
150
|
137
|
|||||
Provision
for Loan Losses
|
3,116
|
3,244
|
|||||
Gain
on Sale of Loans
|
(1,058
|
)
|
(545
|
)
|
|||
Gain
on Securities Sales, Net
|
(529
|
)
|
—
|
||||
Loss
/ (Gain) on Sales of Other Real Estate and Repossessed
Assets
|
16
|
(57
|
)
|
||||
Loss
/ (Gain) on Disposition and Impairment of Premises and
Equipment
|
(17
|
)
|
69
|
||||
Other-Than-Temporary-Impairment
Write-down on Securities
|
350
|
—
|
|||||
Increase
in Cash Surrender Value of Company Owned Life Insurance
|
(611
|
)
|
(590
|
)
|
|||
Equity
Based Compensation
|
6
|
273
|
|||||
Change
in Assets and Liabilities:
|
|||||||
Interest
Receivable and Other Assets
|
(17,814
|
)
|
2,051
|
||||
Interest
Payable and Other Liabilities
|
23
|
566
|
|||||
Net
Cash from Operating Activities
|
(3,304
|
)
|
11,459
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Proceeds
from Maturity of Other Short-term Investments
|
—
|
100
|
|||||
Proceeds
from Maturities of Securities Available-for-Sale
|
44,993
|
34,228
|
|||||
Proceeds
from Sales of Securities Available-for-Sale
|
34,788
|
—
|
|||||
Purchase
of Securities Available-for-Sale
|
(79,563
|
)
|
—
|
||||
Proceeds
from Maturities of Securities Held-to-Maturity
|
974
|
1,673
|
|||||
Purchase
of Loans
|
(22,052
|
)
|
(19,194
|
)
|
|||
Proceeds
from Sales of Loans
|
3,150
|
938
|
|||||
Loans
Made to Customers, Net of Payments Received
|
(4,894
|
)
|
(56,077
|
)
|
|||
Proceeds
from Sales of Other Real Estate
|
670
|
2,890
|
|||||
Property
and Equipment Expenditures
|
(1,984
|
)
|
(1,162
|
)
|
|||
Proceeds
from Sales of Property and Equipment
|
58
|
50
|
|||||
Net
Cash from Investing Activities
|
(23,860
|
)
|
(36,554
|
)
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Change
in Deposits
|
28,986
|
40,035
|
|||||
Change
in Short-term Borrowings
|
(7,745
|
)
|
(22,941
|
)
|
|||
Advances
of Long-term Debt
|
25,000
|
30,000
|
|||||
Repayments
of Long-term Debt
|
(3,524
|
)
|
(8,522
|
)
|
|||
Employee
Stock Purchase Plan
|
(46
|
)
|
(118
|
)
|
|||
Dividends
Paid
|
(4,633
|
)
|
(4,630
|
)
|
|||
Net
Cash from Financing Activities
|
38,038
|
33,824
|
|||||
Net
Change in Cash and Cash Equivalents
|
10,874
|
8,729
|
|||||
Cash
and Cash Equivalents at Beginning of Year
|
27,914
|
29,695
|
|||||
Cash
and Cash Equivalents at End of Period
|
$
|
38,788
|
$
|
38,424
|
Three Months Ended
|
|||||||
September 30,
|
|||||||
2008
|
2007
|
||||||
Earnings
per Share:
|
|||||||
Net
Income
|
$
|
3,319
|
$
|
2,508
|
|||
Weighted
Average Shares Outstanding
|
11,029,484
|
11,008,562
|
|||||
Earnings
per Share
|
$
|
0.30
|
$
|
0.23
|
|||
Diluted
Earnings per Share:
|
|||||||
Net
Income
|
$
|
3,319
|
$
|
2,508
|
|||
Weighted
Average Shares Outstanding
|
11,029,484
|
11,008,562
|
|||||
Potentially
Dilutive Shares, Net
|
292
|
17,313
|
|||||
Diluted
Weighted Average Shares Outstanding
|
11,029,776
|
11,025,875
|
|||||
Diluted
Earnings per Share
|
$
|
0.30
|
$
|
0.23
|
Nine Months Ended
|
|||||||
September 30,
|
|||||||
2008
|
2007
|
||||||
Earnings
per Share:
|
|||||||
Net
Income
|
$
|
9,450
|
$
|
6,630
|
|||
Weighted
Average Shares Outstanding
|
11,029,484
|
11,008,562
|
|||||
Earnings
per Share
|
$
|
0.85
|
$
|
0.60
|
|||
Diluted
Earnings per Share:
|
|||||||
Net
Income
|
$
|
9,450
|
$
|
6,630
|
|||
Weighted
Average Shares Outstanding
|
11,029,484
|
11,008,562
|
|||||
Potentially
Dilutive Shares, Net
|
233
|
14,131
|
|||||
Diluted
Weighted Average Shares Outstanding
|
11,029,717
|
11,022,693
|
|||||
Diluted
Earnings per Share
|
$
|
0.85
|
$
|
0.60
|
Gross
|
Gross
|
||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||
Securities Available-for-Sale:
|
Cost
|
Gains
|
Losses
|
Value
|
|||||||||
September
30, 2008
|
|||||||||||||
U.S.
Treasury and Agency Securities
|
$
|
499
|
$
|
2
|
$
|
—
|
$
|
501
|
|||||
Obligations
of State and Political Subdivisions
|
9,708
|
182
|
—
|
9,890
|
|||||||||
Mortgage-backed
Securities
|
132,772
|
1,056
|
(287
|
)
|
133,541
|
||||||||
Equity
Securities
|
4,207
|
45
|
(237
|
)
|
4,015
|
||||||||
Total
|
$
|
147,186
|
$
|
1,285
|
$
|
(524
|
)
|
$
|
147,947
|
||||
December
31, 2007
|
|||||||||||||
U.S.
Treasury and Agency Securities
|
$
|
25,306
|
$
|
433
|
$
|
—
|
$
|
25,739
|
|||||
Obligations
of State and Political Subdivisions
|
11,387
|
216
|
(1
|
)
|
11,602
|
||||||||
Mortgage-backed
Securities
|
105,302
|
608
|
(421
|
)
|
105,489
|
||||||||
Equity
Securities
|
4,557
|
913
|
—
|
5,470
|
|||||||||
Total
|
$
|
146,552
|
$
|
2,170
|
$
|
(422
|
)
|
$
|
148,300
|
Gross
|
Gross
|
||||||||||||
Carrying
|
Unrecognized
|
Unrecognized
|
Fair
|
||||||||||
Securities Held-to-Maturity:
|
Amount
|
Gains
|
Losses
|
Value
|
|||||||||
September
30, 2008
|
|||||||||||||
Obligations
of State and Political Subdivisions
|
$
|
3,491
|
$
|
53
|
$
|
—
|
$
|
3,544
|
|||||
December
31, 2007
|
|||||||||||||
Obligations
of State and Political Subdivisions
|
$
|
4,464
|
$
|
32
|
$
|
—
|
$
|
4,496
|
At
September 30, 2008:
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||
U.S.
Treasury and Agency Securities
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||
Obligations
of State and Political Subdivisions
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Mortgage-backed
Securities
|
64,281
|
(282
|
)
|
689
|
(5
|
)
|
64,970
|
(287
|
)
|
||||||||||
Equity
Securities
|
1,786
|
(237
|
)
|
—
|
—
|
1,786
|
(237
|
)
|
|||||||||||
Total
|
$
|
66,067
|
$
|
(519
|
)
|
$
|
689
|
$
|
(5
|
)
|
$
|
66,756
|
$
|
(524
|
)
|
At
December 31, 2007:
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||
U.S.
Treasury and Agency Securities
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||
Obligations
of State and Political Subdivisions
|
—
|
—
|
230
|
(1
|
)
|
230
|
(1
|
)
|
|||||||||||
Mortgage-backed
Securities
|
1,544
|
(1
|
)
|
56,647
|
(420
|
)
|
58,191
|
(421
|
)
|
||||||||||
Equity
Securities
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
|
$
|
1,544
|
$
|
(1
|
)
|
$
|
56,877
|
$
|
(421
|
)
|
$
|
58,421
|
$
|
(422
|
)
|
September 30,
|
December 31,
|
||||||
2008
|
2007
|
||||||
Commercial
and Industrial Loans
|
$
|
499,449
|
$
|
457,033
|
|||
Residential
Mortgage Loans
|
104,386
|
116,908
|
|||||
Consumer
Loans
|
128,125
|
131,110
|
|||||
Agricultural
Loans
|
157,125
|
165,592
|
|||||
Total
Loans
|
$
|
889,085
|
$
|
870,643
|
|||
Less:
Unearned Income
|
(2,278
|
)
|
(2,922
|
)
|
|||
Allowance
for Loan Losses
|
(9,358
|
)
|
(8,044
|
)
|
|||
Loans,
Net
|
$
|
877,449
|
$
|
859,677
|
|||
Information
Regarding Impaired Loans:
|
|||||||
Impaired
Loans with No Allowance for Loan Losses Allocated
|
$
|
1,527
|
$
|
1,919
|
|||
Impaired
Loans with Allowance for Loan Losses Allocated
|
3,245
|
2,384
|
|||||
Amount
of Allowance Allocated to Impaired Loans
|
1,331
|
399
|
September 30,
|
September 30,
|
||||||
2008
|
2007
|
||||||
Balance
as of January 1
|
$
|
8,044
|
$
|
7,129
|
|||
Provision
for Loan Losses
|
3,116
|
3,244
|
|||||
Recoveries
of Prior Loan Losses
|
505
|
330
|
|||||
Loan
Losses Charged to the Allowance
|
(2,307
|
)
|
(2,648
|
)
|
|||
Balance
as of September 30
|
$
|
9,358
|
$
|
8,055
|
Trust and
|
||||||||||||||||
Investment
|
||||||||||||||||
Core
|
Advisory
|
Consolidated
|
||||||||||||||
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
||||||||||||
Net
Interest Income
|
$
|
10,603
|
$
|
8
|
$
|
17
|
$
|
(182
|
)
|
$
|
10,446
|
|||||
Net
Gains on Sales of Loans and
|
||||||||||||||||
Related
Assets
|
330
|
—
|
—
|
—
|
330
|
|||||||||||
Net
Gain on Securities
|
244
|
—
|
—
|
(350
|
)
|
(106
|
)
|
|||||||||
Trust
and Investment Product Fees
|
1
|
618
|
—
|
(1
|
)
|
618
|
||||||||||
Insurance
Revenues
|
8
|
36
|
1,370
|
(12
|
)
|
1,402
|
||||||||||
Noncash
Item:
|
||||||||||||||||
Provision
for Loan Losses
|
838
|
—
|
—
|
—
|
838
|
|||||||||||
Depreciation
and Amortization
|
639
|
7
|
204
|
—
|
850
|
|||||||||||
Income
Tax Expense
|
1,720
|
66
|
43
|
(375
|
)
|
1,454
|
||||||||||
Segment
Profit / (Loss)
|
3,482
|
95
|
54
|
(312
|
)
|
3,319
|
||||||||||
Segment
Assets
|
1,169,559
|
2,198
|
9,817
|
(2,973
|
)
|
1,178,601
|
Trust and
|
||||||||||||||||
Investment
|
||||||||||||||||
Core
|
Advisory
|
Consolidated
|
||||||||||||||
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
||||||||||||
Net
Interest Income
|
$ |
10,007
|
$
|
27
|
$
|
26
|
$
|
(329
|
) |
$
|
9,731
|
|||||
Net
Gains on Sales of Loans and
|
||||||||||||||||
Related
Assets
|
212
|
—
|
—
|
—
|
212
|
|||||||||||
Net
Gain on Securities
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Trust
and Investment Product Fees
|
1
|
677
|
—
|
(25
|
)
|
653
|
||||||||||
Insurance
Revenues
|
8
|
3
|
1,348
|
(10
|
)
|
1,349
|
||||||||||
Noncash
Item:
|
||||||||||||||||
Provision
for Loan Losses
|
941
|
—
|
—
|
—
|
941
|
|||||||||||
Depreciation
and Amortization
|
537
|
6
|
210
|
—
|
753
|
|||||||||||
Income
Tax Expense
|
1,361
|
74
|
38
|
(307
|
)
|
1,166
|
||||||||||
Segment
Profit / (Loss)
|
2,641
|
113
|
55
|
(301
|
)
|
2,508
|
||||||||||
Segment
Assets
|
1,123,650
|
2,290
|
9,700
|
(48
|
)
|
1,135,592
|
Trust and
|
||||||||||||||||
Investment
|
||||||||||||||||
Core
|
Advisory
|
Consolidated
|
||||||||||||||
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
||||||||||||
Net
Interest Income
|
$
|
31,203
|
$
|
59
|
$
|
55
|
$
|
(687
|
)
|
$
|
30,630
|
|||||
Net
Gains on Sales of Loans and
|
||||||||||||||||
Related
Assets
|
1,058
|
—
|
—
|
—
|
1,058
|
|||||||||||
Net
Gain on Securities
|
529
|
—
|
—
|
(350
|
)
|
179
|
||||||||||
Trust
and Investment Product Fees
|
4
|
1,864
|
—
|
(27
|
)
|
1,841
|
||||||||||
Insurance
Revenues
|
48
|
42
|
4,570
|
(48
|
)
|
4,612
|
||||||||||
Noncash
Item:
|
||||||||||||||||
Provision
for Loan Losses
|
3,116
|
—
|
—
|
—
|
3,116
|
|||||||||||
Depreciation
and Amortization
|
1,893
|
21
|
612
|
—
|
2,526
|
|||||||||||
Income
Tax Expense
|
4,746
|
209
|
340
|
(874
|
)
|
4,421
|
||||||||||
Segment
Profit / (Loss)
|
9,453
|
308
|
548
|
(859
|
)
|
9,450
|
||||||||||
Segment
Assets
|
1,169,559
|
2,198
|
9,817
|
(2,973
|
)
|
1,178,601
|
Trust and
|
||||||||||||||||
Investment
|
||||||||||||||||
Core
|
Advisory
|
Consolidated
|
||||||||||||||
Banking
|
Services
|
Insurance
|
Other
|
Totals
|
||||||||||||
Net
Interest Income
|
$
|
29,358
|
$
|
69
|
$
|
84
|
$
|
(911
|
)
|
$
|
28,600
|
|||||
Net
Gains on Sales of Loans and
|
||||||||||||||||
Related
Assets
|
545
|
—
|
—
|
—
|
545
|
|||||||||||
Net
Gain on Securities
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Trust
and Investment Product Fees
|
3
|
2,069
|
—
|
(78
|
)
|
1,994
|
||||||||||
Insurance
Revenues
|
70
|
23
|
4,350
|
(49
|
)
|
4,394
|
||||||||||
Noncash
Item:
|
||||||||||||||||
Provision
for Loan Losses
|
3,244
|
—
|
—
|
—
|
3,244
|
|||||||||||
Depreciation
and Amortization
|
1,762
|
16
|
601
|
—
|
2,379
|
|||||||||||
Income
Tax Expense
|
3,236
|
240
|
230
|
(863
|
)
|
2,843
|
||||||||||
Segment
Profit / (Loss)
|
6,923
|
366
|
340
|
(999
|
)
|
6,630
|
||||||||||
Segment
Assets
|
1,123,650
|
2,290
|
9,700
|
(48
|
)
|
1,135,592
|
Three Months Ended
|
|||||||
September 30,
|
|||||||
2008
|
2007
|
||||||
Service
Cost
|
$
|
—
|
$
|
—
|
|||
Interest
Cost
|
9
|
9
|
|||||
Expected
Return on Assets
|
(3 | ) |
(3
|
)
|
|||
Amortization
of Transition Amount
|
(1
|
)
|
—
|
||||
Amortization
of Prior Service Cost
|
—
|
(1
|
)
|
||||
Recognition
of Net (Gain)/Loss
|
5
|
7
|
|||||
Net
Periodic Benefit Cost
|
$
|
10
|
$
|
12
|
|||
Loss
on Settlements and Curtailments
|
None
|
None
|
Nine Months Ended
|
|||||||
September 30,
|
|||||||
2008
|
2007
|
||||||
Service
Cost
|
$
|
—
|
$
|
—
|
|||
Interest
Cost
|
28
|
28
|
|||||
Expected
Return on Assets
|
(9
|
)
|
(9
|
)
|
|||
Amortization
of Transition Amount
|
(1
|
)
|
(1
|
)
|
|||
Amortization
of Prior Service Cost
|
(2
|
)
|
(3
|
)
|
|||
Recognition
of Net (Gain)/Loss
|
15
|
21
|
|||||
Net
Periodic Benefit Cost
|
$
|
31
|
$
|
36
|
|||
Loss
on Settlements and Curtailments
|
None
|
45
|
Fair Value Measurements at September 30, 2008 Using
|
|||||||||||||
Quoted Prices in
|
|||||||||||||
Active Markets for
|
Significant Other
|
Significant
|
|||||||||||
Identical Assets
|
Observable Inputs
|
Unobservable Inputs
|
|||||||||||
September 30, 2008
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||
Assets:
|
|||||||||||||
Available
for Sale Securities
|
$
|
147,947
|
$
|
2,272
|
$
|
143,933
|
$
|
1,742
|
Fair Value Measurements at September 30, 2008 Using
|
|||||||||||||
Quoted Prices in
|
|||||||||||||
Active Markets for
|
Significant Other
|
Significant
|
|||||||||||
Identical Assets
|
Observable Inputs
|
Unobservable Inputs
|
|||||||||||
September 30, 2008
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||
Assets:
|
|||||||||||||
Impaired
Loans
|
$
|
1,783
|
$
|
—
|
$
|
—
|
$
|
1,783
|
Three Months
|
Change from
|
||||||||||||
Ended September 30,
|
Prior Period
|
||||||||||||
2008
|
2007
|
Amount
|
Percent
|
||||||||||
Interest
Income (T/E)
|
$
|
16,879
|
$
|
18,770
|
$
|
(1,891
|
) |
(10.1)
|
%
|
||||
Interest
Expense
|
6,283
|
8,907
|
(2,624
|
) |
(29.5)
|
%
|
|||||||
Net
Interest Income (T/E)
|
$
|
10,596
|
$
|
9,863
|
733
|
7.4
|
%
|
Nine Months
|
Change from
|
||||||||||||
Ended September 30,
|
Prior Period
|
||||||||||||
2008
|
2007
|
Amount
|
Percent
|
||||||||||
Interest
Income (T/E)
|
$
|
51,741
|
$
|
54,386
|
$
|
(2,645
|
)
|
(4.9
|
)%
|
||||
Interest
Expense
|
20,702
|
25,325
|
(4,623
|
)
|
(18.3
|
)%
|
|||||||
Net
Interest Income (T/E)
|
$
|
31,039
|
$
|
29,061
|
$
|
1,978
|
6.8
|
%
|
September 30,
|
December 31,
|
||||||
2008
|
2007
|
||||||
Non-accrual
Loans
|
$
|
7,385
|
$
|
4,356
|
|||
Past
Due Loans (90 days or more)
|
34
|
8
|
|||||
Restructured
Loans
|
—
|
—
|
|||||
Total
Non-performing Loans
|
7,419
|
4,364
|
|||||
Other
Real Estate
|
3,757
|
1,517
|
|||||
Total
Non-performing Assets
|
$
|
11,176
|
$
|
5,881
|
|||
Non-performing
Loans to Total Loans
|
0.84
|
%
|
.50
|
%
|
|||
Allowance
for Loan Loss to Non-performing Loans
|
126.14
|
%
|
184.33
|
%
|
Minimum for
|
||||||||||
Capital
|
At
|
At
|
||||||||
Adequacy
|
September 30,
|
December 31,
|
||||||||
Purposes
|
2008
|
2007
|
||||||||
Leverage
Ratio
|
4.00
|
%
|
7.52
|
%
|
7.41
|
%
|
||||
Tier
1 Capital to Risk-adjusted Assets
|
4.00
|
%
|