(000’s), except ratios and percent data

Three months ending

December 31, 2008

December 31, 2007

Change

Selected consolidated data :

Interest income

$

12,519

$

12,851

-2.58

%

Interest expense

4,401

5,517

-20.23

%

Net interest income

8,118

7,334

10.69

%

Provision for loan losses

604

294

105.44

%

Trust income

302

314

-3.82

%

Other noninterest income

2,054

1,883

9.08

%

Salary and benefits

2,773

2,533

9.47

%

Occupancy expense

423

427

-0.94

%

Amortization of intangibles

278

285

-2.46

%

Other noninterest expense

2,255

1,850

21.89

%

Income taxes

-813

-919

-11.53

%

Net income

$

3,328

$

3,223

3.26

%

Basic net income per share

$

0.52

$

0.46

$

0.06

Daily averages:

Gross loans

$

562,464

$

520,992

7.96

%

Loans, net

555,864

514,814

7.97

%

Total securities

273,817

277,008

-1.15

%

Total deposits

797,757

763,023

4.55

%

Other borrowings

55

65

-15.38

%

Stockholders’ equity

109,445

103,677

5.56

%

Cash and due from

12,194

13,870

-12.08

%

Interest-earning assets

854,416

816,169

4.69

%

Interest-bearing liabilities

687,184

651,162

5.53

%

Intangible assets

13,878

15,000

-7.48

%

Total assets

$

914,111

$

874,400

4.54

%

Financial ratios: Note (1)

Return on average assets

1.45

%

1.46

%

-0.01

%

Return on average equity

12.10

%

12.33

%

-0.23

%

Net interest margin

4.20

%

3.95

%

0.25

%

Efficiency ratio

50.58

%

49.28

%

1.30

%

Average equity to average assets

11.97

%

11.86

%

0.11

%

Note (1) Ratio change measured in bp

Allowance for loan losses:

Beginning balance

$

5,435

$

5,043

7.77

%

Provision for losses

604

294

105.44

%

Charge-offs

-202

-152

32.89

%

Recoveries

21

34

-38.24

%

Ending balance

$

5,858

$

5,219

12.24

%

Year to date

December 31, 2008

December 31, 2007

Change

Selected consolidated data :

Interest income

$

50,111

$

50,769

-1.30

%

Interest expense

18,818

21,745

-13.46

%

Net interest income

31,293

29,024

7.82

%

Provision for loan losses

1,119

423

164.54

%

Trust income

1,231

1,333

-7.65

%

Other noninterest income

7,856

7,427

5.78

%

Salary and benefits

11,168

10,773

3.67

%

Occupancy expense

1,751

1,743

0.46

%

Amortization of intangibles

1,119

1,138

-1.67

%

Other noninterest expense

7,985

7,302

9.35

%

Income taxes

-3,645

-3,730

-2.28

%

Net income

$

13,593

$

12,675

7.24

%

Basic net income per share

$

1.96

$

1.82

$

0.14

Fully diluted net income per share

$

1.96

$

1.82

$

0.14

Dividends per share

$

0.80

$

0.76

$

0.04

Dividend payout ratio

40.78

41.80

-1.02

Book value per share

$

15.89

$

15.07

$

0.82

Balance sheet at period-end:

Gross loans

$

576,680

$

524,773

9.89

%

Loans, net

569,699

518,435

9.89

%

Total securities

264,999

273,343

-3.05

%

Cash and due from

16,316

16,324

-0.05

%

Total deposits

817,848

776,339

5.35

%

Other borrowings

54

64

-15.63

%

Stockholders’ equity

110,108

104,800

5.06

%

Intangible assets

13,719

14,838

-7.54

%

Total assets

$

935,374

$

887,647

5.38

%

Daily averages:

Gross loans

$

539,593

$

511,215

5.55

%

Loans, net

533,190

505,070

5.57

%

Total securities

281,367

282,734

-0.48

%

Total deposits

781,008

758,657

2.95

%

Other borrowings

297

626

-52.56

%

Stockholders’ equity

108,585

100,597

7.94

%

Cash and due from

12,467

13,947

-10.61

%

Interest-earning assets

841,675

807,686

4.21

%

Interest-bearing liabilities

671,463

650,426

3.23

%

Intangible assets

14,296

15,426

-7.33

%

Total assets

$

899,462

$

867,061

3.74

%

Financial ratios: Note (1)

Return on average assets

1.51

%

1.46

%

0.05

%

Return on average equity

12.52

%

12.60

%

-0.08

%

Net interest margin

4.12

%

3.98

%

0.14

%

Efficiency ratio

50.28

%

51.11

%

-0.83

%

Average equity to average assets

12.07

%

11.60

%

0.47

%

Note (1) Ratio change measured in bp

Allowance for loan losses:

Beginning balance

$

5,219

$

5,157

1.20

%

Provision for losses

1,119

423

164.54

%

Charge-offs

-611

-471

29.72

%

Recoveries

131

110

19.09

%

Ending balance

$

5,858

$

5,219

12.24

%

Nonperforming assets:

Nonaccrual loans

$

1,333

$

1,150

15.91

%

Restructured loans

---

---

---

Total nonperforming loans  Note (2)

1,333

1,150

15.91

%

Other real estate owned

1,984

263

654.37

%

Total nonperforming assets

$

3,317

$

1,413

134.75

%

Asset quality ratios: Note (3)

Nonperforming loans to total loans

0.23

%

0.22

%

---

Allowance for loan losses to total loans

1.02

%

1.00

%

---

Allowance for loan losses to nonperforming loans

439.46

%

453.83

%

---

Note (2) Loans 90 days past due or more not included

Note (3) Ratio change measured in bp