8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 20, 2011

FIRST SOUTH BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

VIRGINIA	0-22219	56-1999749
(State or other jurisdiction of	(Commission	(IRS Employer
incorporation or organization)	File Number)	Identification No.)
1311 Carolina Avenue, Washington, North Carolina		27889
(Address of principal executive offices)		(Zip Code)

 (252) 946-4178

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition

On October 20, 2011, First South Bancorp, Inc. (the “Company”) issued a press release announcing its unaudited operating results for the quarter and nine months ended September 30, 2011.  A copy of the press release dated October 20, 2011 is attached to this Report as an exhibit (Exhibit 99.1) and is furnished herewith.

Item 9.01.  Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) The following exhibit is filed herewith:

Exhibit 99.1 – Press Release dated October 20, 2011.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized

	First South Bancorp, Inc.
	(Registrant)
Date: October 20, 2011	By:	/s/ William L. Wall
		William L. Wall
		Executive Vice President Chief Financial Officer and Secretary

EX-99.1

EXHIBIT 99.1
PRESS RELEASE	FOR IMMEDIATE RELEASE
October 20, 2011	For more information contact:
First South Bancorp, Inc.	Bill Wall (CFO) (252-940-5017)
	Website: www.firstsouthnc.com

First South Bancorp, Inc. Reports September 30, 2011 Quarterly Operating Results

Washington, North Carolina - First South Bancorp, Inc. (NASDAQ: FSBK) (the “Company”), the parent holding company of First South Bank (the “Bank”), reports its unaudited operating results for the quarter ended September 30, 2011, and for the nine months ended September 30, 2011.

For the 2011 third quarter, net income increased 5.5% to $403,000 ($0.04 per share diluted), from net income of $382,000 ($0.04 per share diluted) earned in the linked 2011 second quarter, compared to $1.0 million ($0.10 per share diluted) for the 2010 third quarter.  Net income for the nine months ended September 30, 2011 was $1.1 million ($0.11 per share diluted), compared to net income of $4.1 million ($0.42 per share diluted) for the nine months ended September 30, 2010.

Tom Vann, President and CEO, commented, “I am pleased to report the Company’s operating results for the third quarter of 2011. The Company continues to generate solid core earnings.  Third quarter 2011 net earnings were $403,000, after recording $2.6 million of credit loss provisions. In the 2011 third quarter, we continued evaluating the credit quality of the Bank’s loan portfolio and market values of foreclosed properties.  While the volume of our nonperforming assets increased marginally during this quarter, based on our current analysis we continue to remain cautiously optimistic about the financial stress some of our borrowers are facing.  Consequently, we are provisioning accordingly to replenish net charge-offs and to maintain our loan loss reserves at an adequate level.  Mitigating our nonperforming assets will continue to be a top priority for the remainder 2011 and into 2012,” said Mr. Vann.

Asset Quality

Total nonperforming assets, including loans on non-accrual status, restructured loans on non-accrual status and other real estate owned, increased to $54.9 million at September 30, 2011, from $52.9 million at December 31, 2010.  Loans on non-accrual status increased to $18.3 million at September 30, 2011, from $14.3 million at December 31, 2010.  At September 30, 2011, $3.1 million of these loans were earning interest.  Restructured loans on non-accrual status, declined to $23.7 million at September 30, 2011, from $27.0 million at December 31, 2010.  At September 30, 2011, $11.2 million of these restructured loans were current and making scheduled payments according to the terms of the restructure.

Performing restructured loans on full accrual status totaled $19.8 million at September 30, 2011, compared to $31.3 million at December 31, 2010.  Restructured loans do not continue to be reported as a restructure in calendar years after the year in which the restructuring took place if the loan is in compliance with its modified terms and yields a market rate.

Other real estate owned increased to $12.9 million at September 30, 2011, from $11.6 million at December 31, 2010, reflecting foreclosure activity net of sales of certain real estate properties.  “The stabilization of property values continues to be an issue in the markets we serve.  We will continue monitoring these values and mitigate nonperforming assets as quickly as feasible,” said Mr. Vann.

The Bank recorded $2.6 million of provisions for credit losses in the 2011 third quarter, compared to $3.1 million in the linked 2011 second quarter and $4.0 million in the 2010 third quarter. Credit loss provisions were necessary to replenish net charge-offs and to maintain the allowance for loan and lease losses (ALLL) at a level that management believes is adequate to absorb probable future losses in the loan portfolio.  The ALLL was $18.3 million at September 30, 2011 (3.12% of total loans), compared to $18.8 million at December 31, 2010 (3.01% of total loans). Net charge offs were $3.0 million in the 2011 third quarter, compared to $3.7 million in the linked 2011 second quarter and $3.3 million in the 2010 third quarter.

Mr. Vann stated, “Management continues to feel it is prudent to take a conservative posture in provisioning for credit losses during these weak economic conditions as we mitigate problem assets.  We believe the current level of our ALLL is adequate, however, there is no assurance in the future that regulators, increased risks in the loan portfolio, or changes in economic conditions will not require additional adjustments to the ALLL.”

Net Interest Income

Net interest income declined to $8.0 million for the 2011 third quarter, from $8.2 million for the linked 2011 second quarter, and $8.7 million for the 2010 third quarter. The change in levels of net interest income is influenced by the volume of interest-earning assets and interest-bearing liabilities and the management of rates earned and paid during each respective reporting period. The net interest margin on average earning assets remained consistent at 4.6% for both the 2011 third quarter and the linked 2011 second quarter, and 4.7% for the comparative 2010 third quarter.

Non-Interest Income

Total non-interest income declined to $2.3 million for the 2011 third quarter, from $2.5 million for the linked 2011 second quarter, compared to $3.4 million for the 2010 third quarter.  Revenue from loan and deposit service offerings (loan fees, deposit fees and service charges and servicing fee income) declined marginally to $1.7 million for the 2011 third quarter, from $1.8 million for the linked 2011 second quarter and $2.0 million for the comparative 2010 third quarter.

Net gains from mortgage loan sales were $165,000 in the 2011 third quarter, compared to $112,000 in the linked 2011 second quarter and $479,000 in the 2010 third quarter.  Net gains from mortgage-backed securities sales were $204,000 in the 2011 third quarter, compared to none in the linked 2011 second quarter and $696,000 in the 2010 third quarter.

In its efforts of mitigating nonperforming assets, the Bank recognized $16,000 of net losses on the sale of real estate owned properties during the 2011 third quarter, compared to net gains of $53,000 in the linked 2011 second quarter and $40,000 in the 2010 third quarter.

Non-Interest Expense

Total non-interest expense held consistent at $7.0 million for both the 2011 third quarter and the linked 2011 second quarter, compared to $6.7 million for the 2010 third quarter.  The largest component of non-interest expense, compensation and fringe benefits, declined to $3.7 million for the 2011 third quarter, from $3.9 million for the linked 2011 second quarter and $4.0 million for the 2010 third quarter, reflecting the Bank’s efforts of managing its human resources cost.

Expenses attributable to valuation adjustments, renovating, maintenance and property taxes paid for the current volume of other real estate owned properties increased to $579,000 for the 2011 third quarter, from $265,000 for the linked 2011 second quarter, and $150,000 for the comparative 2010 third quarter.

FDIC insurance premiums increased to $388,000 for the 2011 third quarter, from $293,000 for the linked 2011 second quarter and $285,000 for the comparative 2010 third quarter, reflecting changes in the FDIC’s risk-based deposit insurance assessment rates.

Other noninterest expenses including premises and equipment, advertising, data processing, repairs and maintenance, office supplies, professional fees, taxes and insurance, etc., remained relatively consistent during the respective periods.

Income tax expense was $256,000 for the 2011 third quarter, compared to $226,000 for the linked 2011 second quarter and $424,000 for the 2010 third quarter.  Changes in the amount of income tax expense reflects changes in pretax income, deductible expenses, the application of permanent and temporary differences and the applicable income tax rates in effect during each period.

Balance Sheet

Total assets declined to $768.4 million at September 30, 2011, from $797.2 million at December 31, 2010. Net loans and leases receivable declined to $568.2 million at September 30, 2011, from $606.1 million at December 31, 2010, reflecting the net of principal repayments, foreclosures, sales and securitizations of loans into mortgage-backed securities, and the volume of loans originated during the current quarter.   Mortgage-backed securities increased to $119.8 million at September 30, 2011, from $98.9 million at December 31, 2010, reflecting the net of purchases, sales and securitizations of certain mortgage loans during the current quarter.  Cash and overnight investments declined to $32.9 million at September 30, 2011, from $44.4 million at December 31, 2010, reflecting net changes in the Bank’s cash flow and liquidity position, including the repayment of borrowings.

Total deposits declined to $665.1 million at September 30, 2011, from $689.5 million at December 31, 2010.  Borrowings declined to $2.0 million at September 30, 2011, from $11.5 million at December 31, 2010, reflecting the repayment of a $10.0 million fixed-rate FHLB advance. The cost of funds improved to 1.1% for both the 2011 third quarter and the linked 2011 second quarter, from 1.3% for the 2010 third quarter. The Bank manages its cost of funds by a combination of pricing new deposits, the renewal of maturing time deposits and the repositioning of borrowings in the current lower interest rate environment.

Stockholders' equity increased to $82.1 million at September 30, 2011, from $79.5 million at December 31, 2010, reflecting year-to-date net income and changes in accumulated other comprehensive income.  The equity to assets ratio increased to 10.7% at September 30, 2011, from 10.0% at December 31, 2010.  There were 9,751,271 common shares outstanding at both September 30, 2011 and December 31, 2010.  The book value per common share increased to $8.42 at September 30, 2011, from $8.15 at December 31, 2010.

First South Bancorp, Inc. may be accessed on its website at www.firstsouthnc.com.  The Company’s common stock symbol as traded on the NASDAQ Global Select Market is “FSBK”.

First South Bank has been serving the citizens of eastern North Carolina since 1902 and offers a variety of financial products and services, including a leasing company.  Securities brokerage services are made available through an affiliation with an independent broker/dealer. The Bank operates through its main office headquartered in Washington, North Carolina, and has 27 full service branch offices located throughout central, eastern, northeastern and southeastern North Carolina.

Statements contained in this release, which are not historical facts, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, the effects of competition, and including without limitation to other factors that could cause actual results to differ materially as discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

(More)

(NASDAQ

First South Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
	September 30			December 31
	2011				2010	*
Assets	(unaudited)
Cash and due from banks	$	24,346,279		$	14,684,377
Interest-bearing deposits in financial institutions		8,562,673			29,749,236
Mortgage-backed securities - available for sale, at fair value		65,518,331			98,637,742
Mortgage-backed securities - held for investment		54,246,064			244,836
Loans and leases receivable:
Held for sale		18,251,031			4,464,040
Held for investment		568,289,053			620,440,530
Allowance for loan and lease losses		(18,306,540	)		(18,830,288	)
Loans and leases receivable, net		568,233,544			606,074,282
Premises and equipment, net		11,208,521			9,162,538
Other real estate owned		12,885,803			11,616,390
Stock in Federal Home Loan Bank of Atlanta, at cost		2,304,300			3,474,900
Accrued interest receivable		2,334,313			2,336,527
Goodwill		4,218,576			4,218,576
Mortgage servicing rights		1,090,597			1,357,659
Identifiable intangible assets		78,600			102,180
Income tax receivable		2,348,145			2,864,993
Prepaid expenses and other assets		11,035,732			12,721,610
Total assets	$	768,411,478		$	797,245,846
Liabilities and Stockholders' Equity
Deposits:
Demand	$	243,582,050		$	234,501,026
Savings		27,550,731			24,498,789
Large denomination certificates of deposit		207,641,508			222,578,449
Other time		186,365,683			207,886,450
Total deposits		665,139,972			689,464,714
Borrowed money		1,985,814			11,503,110
Junior subordinated debentures		10,310,000			10,310,000
Other liabilities		8,914,922			6,454,818
Total liabilities		686,350,708			717,732,642
Common stock, $.01 par value, 25,000,000 shares authorized;
11,254,222 shares issued; 9,751,271 shares outstanding		97,513			97,513
Additional paid-in capital		35,796,939			35,795,586
Retained earnings, substantially restricted		76,068,915			74,956,772
Treasury stock, at cost		(31,967,269	)		(31,967,269	)
Accumulated other comprehensive income, net		2,064,672			630,602
Total stockholders' equity		82,060,770			79,513,204
Total liabilities and stockholders' equity	$	768,411,478		$	797,245,846
*Derived from audited consolidated financial statements

First South Bancorp, Inc. and Subsidiary
Consolidated Statements of Operations
(unaudited)
	Three Months Ended					Nine Months Ended
	September 30					September 30
	2011			2010		2011			2010
Interest income:
Interest and fees on loans	$	8,582,320		$	9,970,388	$	26,312,194		$	29,872,142
Interest and dividends on investments and deposits		1,278,399			992,276		3,628,175			3,070,839
Total interest income		9,860,719			10,962,664		29,940,369			32,942,981
Interest expense:
Interest on deposits		1,767,524			2,050,824		5,669,228			6,298,950
Interest on borrowings		1,513			81,915		30,480			302,082
Interest on junior subordinated notes		83,019			89,021		248,250			251,805
Total interest expense		1,852,056			2,221,760		5,947,958			6,852,837
Net interest income		8,008,663			8,740,904		23,992,411			26,090,144
Provision for credit losses		2,643,282			3,961,787		8,173,293			8,451,787
Net interest income after provision for credit losses		5,365,381			4,779,117		15,819,118			17,638,357
Non-interest income:
Fees and service charges		1,485,776			1,772,368		4,554,400			5,198,288
Loan servicing fees		195,338			188,292		590,409			555,072
Gain (loss) on sale of other real estate, net		(15,710	)		39,858		(44,418	)		73,578
Gain on sale of mortgage loans		165,418			478,996		396,946			844,520
Gain on sale of mortgage-backed securities		204,248			696,410		256,394			1,631,891
Gain on sale of investment securities		-			-		-			2,406
Other  income		257,074			223,777		1,018,074			618,740
Total non-interest income		2,292,144			3,399,701		6,771,805			8,924,495
Non-interest expense:
Compensation and fringe benefits		3,658,126			3,994,384		11,389,382			11,800,621
Federal deposit insurance premiums		387,679			285,040		972,462			868,918
Premises and equipment		416,189			417,751		1,272,981			1,315,500
Advertising		45,670			46,168		131,055			111,582
Payroll and other taxes		338,058			349,388		1,092,206			1,066,098
Data processing		699,089			636,299		1,922,489			1,899,367
Amortization of intangible assets		149,257			123,165		442,038			348,126
Other real estate owned expense		579,001			150,021		1,063,602			313,895
Other		725,597			743,249		2,486,766			2,262,470
Total non-interest expense		6,998,666			6,745,465		20,772,981			19,986,577
Income before income tax expense		658,859			1,433,353		1,817,942			6,576,275
Income tax expense		255,588			423,742		705,799			2,458,604
Net income	$	403,271		$	1,009,611	$	1,112,143		$	4,117,671
Per share data:
Basic earnings per share	$	0.04		$	0.10	$	0.11		$	0.42
Diluted earnings per share	$	0.04		$	0.10	$	0.11		$	0.42
Dividends per share	$	0.00		$	0.09	$	0.00		$	0.49
Average basic shares outstanding		9,751,271			9,743,971		9,751,271			9,743,490
Average diluted shares outstanding		9,751,271			9,743,971		9,751,271			9,743,724

First South Bancorp, Inc.	Supplemental Financial Data (Unaudited)
	Quarterly											Year to Date
	9/30/2011		6/30/2011		3/31/2011		12/31/2010			9/30/2010		9/30/2011		9/30/2010
Consolidated balance sheet data:	(dollars in thousands except per share data)
Total assets	$	768,411	$	784,538	$	791,154	$	797,246		$	811,912	$	768,411	$	811,912
Loans receivable (net):
Mortgage	$	80,453	$	56,564	$	53,925	$	55,450		$	53,995	$	80,453	$	53,995
Commercial		405,712		428,141		445,930		463,155			496,489		405,712		496,489
Consumer		74,096		76,459		79,517		79,469			83,801		74,096		83,801
Leases		7,972		7,825		7,829		8,000			8,095		7,972		8,095
Total loans (net)	$	568,233	$	568,989	$	587,201	$	606,074		$	642,380	$	568,233	$	642,380
Cash and investments	$	32,909	$	44,565	$	34,537	$	44,434		$	40,815	$	32,909	$	40,815
Mortgage-backed securities		119,764		124,539		120,565		98,883			87,245		119,764		87,245
Premises and equipment		11,209		10,753		10,196		9,163			9,216		11,209		9,216
Goodwill		4,219		4,219		4,219		4,219			4,219		4,219		4,219
Mortgage servicing rights		1,091		1,197		1,284		1,358			1,299		1,091		1,299
Deposits:
Savings	$	27,551	$	26,999	$	26,251	$	24,499		$	24,946	$	27,551	$	24,946
Checking		243,582		240,048		237,605		234,501			237,677		243,582		237,677
Certificates		394,007		416,855		429,772		430,465			433,432		394,007		433,432
Total deposits	$	665,140	$	683,902	$	693,628	$	689,465		$	696,055	$	665,140	$	696,055
Borrowings	$	1,986	$	2,349	$	2,363	$	11,503		$	12,164	$	1,986	$	12,164
Junior subordinated debentures		10,310		10,310		10,310		10,310			10,310		10,310		10,310
Stockholders' equity		82,061		80,894		79,648		79,513			87,293		82,061		87,293
Consolidated earnings summary:
Interest income	$	9,861	$	10,188	$	9,891	$	9,928		$	10,963	$	29,940	$	32,943
Interest expense		1,852		2,010		2,086		2,166			2,222		5,948		6,853
Net interest income		8,009		8,178		7,805		7,762			8,741		23,992		26,090
Provision for credit losses		2,643		3,080		2,450		13,700			3,962		8,173		8,452
Noninterest income		2,292		2,498		1,982		1,919			3,400		6,772		8,924
Noninterest expense		6,999		6,988		6,786		6,738			6,745		20,773		19,986
Income tax expense (benefit)		256		226		225		(4,260	)		424		706		2,458
Net income (loss)	$	403	$	382	$	326	$	(6,497	)	$	1,010	$	1,112	$	4,118
Per Share Data:
Basic earnings (loss) per share	$	0.04	$	0.04	$	0.03	$	(0.67	)	$	0.10	$	0.11	$	0.42
Diluted earnings (loss) per share	$	0.04	$	0.04	$	0.03	$	(0.67	)	$	0.10	$	0.11	$	0.42
Dividends per share	$	0.00	$	0.00	$	0.00	$	0.00		$	0.09	$	0.00	$	0.49
Book value per share	$	8.42	$	8.30	$	8.17	$	8.15		$	8.96	$	8.42	$	8.96
Average basic shares		9,751,271		9,751,271		9,751,271		9,748,948			9,743,971		9,751,271		9,743,490
Average diluted shares		9,751,271		9,751,271		9,751,271		9,748,948			9,743,971		9,751,271		9,743,724

First South Bancorp, Inc.	Supplemental Financial Data (Unaudited)
	Quarterly															Year to Date
	9/30/2011			6/30/2011			3/31/2011			12/31/2010			9/30/2010			9/30/2011			9/30/2010
	(dollars in thousands except per share data)
Performance ratios:
Yield on average earning assets		5.64	%		5.78	%		5.59	%		5.51	%		5.92	%		5.67	%		5.92	%
Cost of funds		1.08	%		1.14	%		1.18	%		1.21	%		1.24	%		1.13	%		1.27	%
Net interest spread		4.56	%		4.64	%		4.41	%		4.30	%		4.68	%		4.54	%		4.65	%
Net interest margin/average earning assets		4.58	%		4.64	%		4.41	%		4.31	%		4.72	%		4.54	%		4.69	%
Earning assets to total assets		90.47	%		88.61	%		89.85	%		89.94	%		90.96	%		90.47	%		90.96	%
Return on average assets (annualized)		0.21	%		0.19	%		0.16	%		-3.21	%		0.50	%		0.19	%		0.68	%
Return on average equity (annualized)		1.97	%		1.90	%		1.63	%		-30.31	%		4.60	%		1.83	%		6.29	%
Efficiency ratio		67.77	%		65.38	%		69.25	%		69.52	%		55.50	%		67.47	%		57.01	%
Average assets	$	774,383		$	791,644		$	794,615		$	810,459		$	813,900		$	774,383		$	813,900
Average earning assets	$	698,984		$	704,792		$	707,982		$	727,718		$	741,214		$	698,984		$	741,214
Average equity	$	81,757		$	80,517		$	79,978		$	85,746		$	87,760		$	81,757		$	87,760
Equity/Assets		10.68	%		10.31	%		10.07	%		9.97	%		10.75	%		10.68	%		10.75	%
Tangible Equity/Assets		10.12	%		9.76	%		9.52	%		9.43	%		10.22	%		10.12	%		10.22	%
Asset quality data and ratios:
Loans on nonaccrual status:
Nonaccrual loans
Earning	$	3,179		$	3,853		$	4,954		$	5,143		$	2,137		$	3,179		$	2,137
Non-Earning	$	15,107		$	15,657		$	11,769		$	9,150		$	11,936		$	15,107		$	11,936
Total Non-Accrual Loans	$	18,286		$	19,510		$	16,723		$	14,293		$	14,073		$	18,286		$	14,073
Nonaccrual restructured loans
Past Due TDRs	$	12,568		$	11,228		$	15,024		$	12,407		$	1,624		$	12,568		$	1,624
Current TDRs	$	11,172		$	10,421		$	8,780		$	14,566		$	3,532		$	11,172		$	3,532
Total TDRs	$	23,740		$	21,649		$	23,804		$	26,973		$	5,156		$	23,740		$	5,156
Total loans on nonaccrual status	$	42,026		$	41,159		$	40,527		$	41,266		$	19,229		$	42,026		$	19,229
Other real estate owned	$	12,886		$	11,387		$	12,069		$	11,616		$	8,599		$	12,886		$	8,599
Total nonperforming assets	$	54,912		$	52,546		$	52,596		$	52,882		$	27,828		$	54,912		$	27,828
Performing restructured loans on
accrual status	$	19,820		$	22,831		$	16,055		$	31,334		$	24,298		$	19,820		$	24,298
Allowance for loan and lease losses	$	18,307		$	18,667		$	19,320		$	18,830		$	8,611		$	18,307		$	8,611
Allowance for unfunded loan commitments	$	256		$	251		$	231		$	237		$	163		$	256		$	163
Allowance for credit losses	$	18,563		$	18,918		$	19,551		$	19,067		$	8,774		$	18,563		$	8,774
Allowance for loan and lease losses to loans		3.12	%		3.17	%		3.18	%		3.01	%		1.32	%		3.12	%		1.32	%
Allowance for unfunded loan commitments
to unfunded commitments		0.39	%		0.36	%		0.30	%		0.30	%		0.20	%		0.39	%		0.20	%
Allowance for credit losses to loans		3.16	%		3.21	%		3.22	%		3.04	%		1.35	%		3.16	%		1.35	%
Net charge-offs (recoveries)	$	3,018		$	3,713		$	1,966		$	3,407		$	3,310		$	8,697		$	13,422
Net charge-offs (recoveries) to loans		0.53	%		0.65	%		0.32	%		0.54	%		0.51	%		1.53	%		2.09	%
Nonaccrual loans to loans		7.40	%		7.23	%		6.90	%		6.81	%		2.99	%		7.40	%		2.99	%
Nonperforming assets to assets		7.15	%		6.69	%		6.65	%		6.63	%		3.43	%		7.15	%		3.43	%
Loans to deposits		88.35	%		86.10	%		87.63	%		90.83	%		93.72	%		88.35	%		93.72	%
Loans to assets		76.48	%		75.06	%		76.82	%		78.55	%		80.35	%		76.48	%		80.35	%
Loans serviced for others	$	302,307		$	314,220		$	317,816		$	318,218		$	307,395		$	302,307		$	307,395