EX-99 2 first8k_042610ex99p1.htm first8k_042610ex99p1.htm - Generated by SEC Publisher for SEC Filing

Exhibit 99.1

 


04/26/2010

1


Forward-Looking Statement

Certain matters in this presentation are “forward-looking statements” intended to qualify for the safe harbors from liability as established by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include words and phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends to,” or similar expressions. Similarly, statements that describe Firstbank’s future plans, objectives or goals are also forward-looking statements. Firstbank wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date of this presentation, and to advise the audience that various factors could affect Firstbank’s financial performance and could cause actual results for future periods to differ materially from those anticipated or projected. Such factors include, but are not limited to: (i) general market interest rates, (ii) general economic conditions, (iii) legislative/regulatory changes, (iv) monetary and fiscal policies of the U.S. Treasury and Federal Reserve, (v) changes in the quality of composition of Firstbank’s loan and investment portfolios, (vi) demand for loan products (vii) deposit flow, (viii) competition, (ix) demand for financial services in Firstbank’s markets, and (x) changes in accounting principles, policies or guidelines.

04/26/2010

2


Topics

n Where are We Now?

– Asset, Loan, and Deposit Growth

– Net Income

– Mortgage Lending & Core Deposit Generation

n FDIC Insurance Cost

n Asset Quality

n New Standards for Regulatory Capital

– Impact on Repayment of TARP/CPP, Dividends, and Shareholders

n Share Valuation and Dividend

n 1st Quarter 2010 Results

n Future of Community Banking in Michigan

04/26/2010

3


Top Ten MI Banks (Asset Size)

 

 

        Total Assets  
Company Name City ($000)
           12/31/2008  
Flagstar Bancorp, Inc.   Troy     14,203,657  
Citizens Republic Bancorp, Inc.   Flint     13,086,016  
Capitol Bancorp Ltd.   Lansing     5,654,836  
Chemical Financial Corporation   Midland     3,874,313  
Independent Bank Corporation   Ionia     2,956,245  
Mercantile Bank Corporation   Grand Rapids     2,208,010  
Macatawa Bank Corporation   Holland     2,149,372  
Citizens First Bancorp, Inc.   Port Huron     1,960,528  
MBT Financial Corp. Monroe 1,562,401
Firstbank Corporation   Alma     1,425,340  

04/26/2010

4

 

Top Ten MI Banks (Asset Size)

    Total Assets     Total Assets  
Company Name ($000) ($000)
    12/31/2009     12/31/2008  
Flagstar Bancorp, Inc.   14,013,331     14,203,657  
Citizens Republic Bancorp, Inc.   11,931,631     13,086,016  
Capitol Bancorp Ltd.   5,131,940     5,654,836  
Chemical Financial Corporation   4,250,712     3,874,313  
Independent Bank Corporation   2,965,364     2,956,245  
Mercantile Bank Corporation   1,906,208     2,208,010  
Macatawa Bank Corporation   1,830,172     2,149,372  
Citizens First Bancorp, Inc.   1,716,332     1,960,528  
Firstbank Corporation   1,482,356     1,425,340  
MBT Financial Corp.   1,383,369     1,562,401  

 

04/26/2010

5


Top Twenty MI Banks (Asset Size)

      Total Assets  
Company Name City ($000)
      12/31/2009  
Flagstar Bancorp, Inc. Troy   14,013,331  
Citizens Republic Bancorp, Inc. Flint   11,931,631  
Capitol Bancorp Ltd. Lansing   5,131,940  
Chemical Financial Corporation Midland   4,250,712  
Independent Bank Corporation Ionia   2,965,364  
Mercantile Bank Corporation Grand Rapids   1,906,208  
Macatawa Bank Corporation Holland   1,830,172  
Citizens First Bancorp, Inc. Port Huron   1,716,332  
Firstbank Corporation Alma   1,482,356  
MBT Financial Corp. Monroe   1,383,369  
IBT Bancorp, Inc. Mount Pleasant   1,143,944  
Dearborn Bancorp, Inc. Dearborn   986,486  
Lake Michigan Financial Corporation Holland   928,826  
Northwestern Bank Traverse City   915,104  
United Bancorp, Inc. Tecumseh   909,328  
O.A.K. Financial Corporation Byron Center   821,773  
Sterling Bank and Trust, FSB Southfield   749,311  
First State Financial Corporation Saint Clair Shores   608,364  
First National Bancshares, Incorporated East Lansing   568,546  
Community Central Bank Corporation Mount Clemens   543,846  

 

04/26/2010

6


Top Ten MI Banks (Asset Size)

    Total Assets     Total Assets      
Company Name ($000) ($000)    
    12/31/2009     12/31/2008   % Change
Chemical Financial Corporation   4,250,712     3,874,313   9.7 %
Firstbank Corporation   1,482,356     1,425,340   4.0 %
Independent Bank Corporation   2,965,364     2,956,245   0.3 %
Flagstar Bancorp, Inc.   14,013,331     14,203,657   -1.3 %
Citizens Republic Bancorp, Inc.   11,931,631     13,086,016   -8.8 %
Capitol Bancorp Ltd.   5,131,940     5,654,836   -9.2 %
MBT Financial Corp.   1,383,369     1,562,401   -11.5 %
Citizens First Bancorp, Inc.   1,716,332     1,960,528   -12.5 %
Mercantile Bank Corporation   1,906,208     2,208,010   -13.7 %
Macatawa Bank Corporation   1,830,172     2,149,372   -14.9 %

 

04/26/2010

7


Top Twenty MI Banks (Asset Size)

    Total Assets     Total Assets      
Company Name ($000) ($000)    
    12/31/2009     12/31/2008   % Change
Northwestern Bank   915,104     810,452   12.9 %
Sterling Bank and Trust, FSB   749,311     677,227   10.6 %
First National Bancshares, Incorporated   568,546     516,861   10.0 %
Chemical Financial Corporation   4,250,712     3,874,313   9.7 %
United Bancorp, Inc.   909,328     832,393   9.2 %
Firstbank Corporation   1,482,356     1,425,340   4.0 %
IBT Bancorp, Inc.   1,143,944     1,139,263   0.4 %
Independent Bank Corporation   2,965,364     2,956,245   0.3 %
Flagstar Bancorp, Inc.   14,013,331     14,203,657   -1.3 %
Lake Michigan Financial Corporation   928,826     943,930   -1.6 %
O.A.K. Financial Corporation   821,773     840,311   -2.2 %
Community Central Bank Corporation   543,846     556,950   -2.4 %
First State Financial Corporation   608,364     664,252   -8.4 %
Citizens Republic Bancorp, Inc.   11,931,631     13,086,016   -8.8 %
Capitol Bancorp Ltd.   5,131,940     5,654,836   -9.2 %
MBT Financial Corp.   1,383,369     1,562,401   -11.5 %
Dearborn Bancorp, Inc.   986,486     1,121,918   -12.1 %
Citizens First Bancorp, Inc.   1,716,332     1,960,528   -12.5 %
Mercantile Bank Corporation   1,906,208     2,208,010   -13.7 %
Macatawa Bank Corporation   1,830,172     2,149,372   -14.9 %

 

04/26/2010

8

Top Ten MI Banks (Asset Size)

Deposits


 

    Total Deposits     Total Deposits      
Company Name ($000) ($000)    
    12/31/2009     12/31/2008   % Change
 
Independent Bank Corporation   2,565,768     2,066,479   24.2 %
Chemical Financial Corporation   3,418,125     2,978,792   14.7 %
Flagstar Bancorp, Inc.   8,778,469     7,841,005   12.0 %
Citizens First Bancorp, Inc.   1,437,353     1,294,503   11.0 %
Firstbank Corporation   1,149,063     1,046,914   9. 8 %
Citizens Republic Bancorp, Inc.   8,909,340     9,052,406   -1.6 %
Capitol Bancorp Ltd.   4,410,633     4,497,612   -1.9 %
MBT Financial Corp.   1,031,791     1,136,078   -9.2 %
Mercantile Bank Corporation   1,401,627     1,599,575   -12. 4 %
Macatawa Bank Corporation   1,416,337     1,665,761   -15. 0 %

 

04/26/2010

9


Top Twenty MI Banks (Asset Size)

Deposits

    Total Deposits     Total Deposits      
Company Name ($000) ($000)    
    12/31/2009     12/31/2008   % Change
First National Bancshares, Incorporated   318,807     231,542   37.7 %
Sterling Bank and Trust, FSB   597,189     460,112   29.8 %
Independent Bank Corporation   2,565,768     2,066,479   24.2 %
Northwestern Bank   809,845     683,821   18.4 %
Chemical Financial Corporation   3,418,125     2,978,792   14.7 %
Community Central Bank Corporation   401,131     357,376   12.2 %
Flagstar Bancorp, Inc.   8,778,469     7,841,005   12.0 %
Citizens First Bancorp, Inc.   1,437,353     1,294,503   11.0 %
United Bancorp, Inc.   782,801     709,549   10.3 %
Firstbank Corporation   1,149,063     1,046,914   9.8 %
IBT Bancorp, Inc.   802,652     775,630   3.5 %
O.A.K. Financial Corporation   690,120     677,269   1.9 %
Lake Michigan Financial Corporation   705,416     716,004   -1.5 %
Citizens Republic Bancorp, Inc.   8,909,340     9,052,406   -1.6 %
Capitol Bancorp Ltd.   4,410,633     4,497,612   -1.9 %
First State Financial Corporation   508,068     538,077   -5.6 %
Dearborn Bancorp, Inc.   867,955     938,395   -7.5 %
MBT Financial Corp.   1,031,791     1,136,078   -9.2 %
Mercantile Bank Corporation   1,401,627     1,599,575   -12.4 %
Macatawa Bank Corporation   1,416,337     1,665,761   -15.0 %

 

04/26/2010

10

Top Ten MI Banks (Asset Size)

Loans


 

    Total Gross     Total Gross      
Company Name Loans ($000) Loans ($000)    
    12/31/2009     12/31/2008   % Change
Chemical Financial Corporation   3,001,522     2,990,140   0.4 %
Firstbank Corporation   1,122,185     1,159,632   -3.2 %
Independent Bank Corporation   2,333,606     2,487,132   -6.2 %
Flagstar Bancorp, Inc.   9,684,412     10,566,801   -8.4 %
MBT Financial Corp.   849,910     941,732   -9.8 %
Citizens First Bancorp, Inc.   1,267,289     1,434,103   -11.6 %
Citizens Republic Bancorp, Inc.   7,986,318     9,193,960   -13.1 %
Capitol Bancorp Ltd.   4,063,233     4,745,703   -14.4 %
Macatawa Bank Corporation   1,511,465     1,776,324   -14.9 %
Mercantile Bank Corporation   1,539,818     1,856,915   -17.1 %

 

04/26/2010

11


Top Twenty MI Banks (Asset Size)

Loans

    Total Gross     Total Gross      
Company Name Loans ($000) Loans ($000)    
    12/31/2009     12/31/2008   % Change
O.A.K. Financial Corporation   698,144     689,694   1.2 %
Lake Michigan Financial Corporation   747,261     740,058   1.0 %
Chemical Financial Corporation   3,001,522     2,990,140   0.4 %
Community Central Bank Corporation   406,664     410,419   -0.9 %
IBT Bancorp, Inc.   725,597     736,283   -1.5 %
Northwestern Bank   729,426     742,612   -1.8 %
Sterling Bank and Trust, FSB   572,681     583,890   -1.9 %
First National Bancshares, Incorporated   391,891     401,874   -2.5 %
Firstbank Corporation   1,122,185     1,159,632   -3.2 %
Independent Bank Corporation   2,333,606     2,487,132   -6.2 %
United Bancorp, Inc.   658,032     702,007   -6.3 %
Flagstar Bancorp, Inc.   9,684,412     10,566,801   -8.4 %
MBT Financial Corp.   849,910     941,732   -9.8 %
Dearborn Bancorp, Inc.   834,265     935,103   -10.8 %
Citizens First Bancorp, Inc.   1,267,289     1,434,103   -11.6 %
Citizens Republic Bancorp, Inc.   7,986,318     9,193,960   -13.1 %
Capitol Bancorp Ltd.   4,063,233     4,745,703   -14.4 %
Macatawa Bank Corporation   1,511,465     1,776,324   -14.9 %
Mercantile Bank Corporation   1,539,818     1,856,915   -17.1 %
First State Financial Corporation   300,763     363,342   -17.2 %

 

04/26/2010

12


Top Ten MI Banks (Asset Size)

Net Income

 
    Net Income     Net Income  
Company Name ($000) ($000)
    2009     2008  
Chemical Financial Corporation   10,003     19,842  
Firstbank Corporation   2,691     719  
MBT Financial Corp.   (34,177 )   1,692  
Mercantile Bank Corporation   (52,087 )   (4,959 )
Macatawa Bank Corporation   (63,641 )   (38,854 )
Independent Bank Corporation   (90,227 )   (91,664 )
Citizens First Bancorp, Inc.   (124,024 )   (58,428 )
Capitol Bancorp Ltd.   (264,540 )   (52,451 )
Flagstar Bancorp, Inc.   (496,678 )   (275,407 )
Citizens Republic Bancorp, Inc.   (514,213 )   (393,052 )

 

04/26/2010

13


Top Ten MI Banks (Asset Size)

Net Income Available to Common

    Net Income     Net Income  
    Avail to     Avail to  
    Common     Common  
Company Name ($000) ($000)
    2009     2008  
Chemical Financial Corporation   10,003     19,842  
Firstbank Corporation   1,151     719  
MBT Financial Corp.   (34,177 )   1,692  
Mercantile Bank Corporation   (52,889 )   (4,959 )
Macatawa Bank Corporation   (66,511 )   (39,671 )
Independent Bank Corporation   (94,528 )   (91,879 )
Citizens First Bancorp, Inc .   (124,024 )   (58,428 )
Capitol Bancorp Ltd.   (195,169 )   (28,607 )
Flagstar Bancorp, Inc.   (513,802 )   (275,407 )
Citizens Republic Bancorp, Inc.   (533,990 )   (405,016 )

 

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Top Twenty MI Banks (Asset Size)

Net Income
 

    Net Income     Net Income  
Company Name ($000) ($000)
    2009     2008  
Chemical Financial Corporation   10,003     19,842  
IBT Bancorp, Inc.   7,800     4,101  
Northwestern Bank   4,588     3,062  
Lake Michigan Financial Corporation   4,307     3,718  
Firstbank Corporation   2,691     719  
Sterling Bank and Trust, FSB   684     (7,276 )
O.A.K. Financial Corporation   540     1,536  
First National Bancshares, Incorporated   (994 )   789  
First State Financial Corporation   (5,000 )   (5,480 )
United Bancorp, Inc.   (8,833 )   (36 )
Community Central Bank Corporation   (14,638 )   (1,962 )
MBT Financial Corp.   (34,177 )   1,692  
Mercantile Bank Corporation   (52,087 )   (4,959 )
Dearborn Bancorp, Inc.   (61,175 )   (31,925 )
Macatawa Bank Corporation   (63,641 )   (38,854 )
Independent Bank Corporation   (90,227 )   (91,664 )
Citizens First Bancorp, Inc.   (124,024 )   (58,428 )
Capitol Bancorp Ltd.   (264,540 )   (52,451 )
Flagstar Bancorp, Inc.   (496,678 )   (275,407 )
Citizens Republic Bancorp, Inc.   (514,213 )   (393,052 )

 

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Mortgage Gains by Bank

('$000s)        
    2009 2008 Change
Alma   1,390 476 192 %
Mt. Pl.   2,684 885 203 %
W. Br.   1,483 510 191 %
St. J.   666 321 107 %
Keystone   813 73 1016 %
W. MI   515 197 161 %
Austin Mtg   0 50 -100 %
Total   7,552 2,512 201 %

 

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FDIC Insurance Cost

 

 

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Asset Quality

 

 

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Non-Performing Assets

($000s, yr. end)              
       

 

 2007 -   2008 -  
  2007 2008 2009 2008   2009  
Alma 1,950 5,477 8,203 181% 50%
Mt. Pl . 5,233 5,509 10,402 5% 89%
W. Br. 2,867 3,806 7,499 33% 97%
St.J 1,364 1,178 2,062 -14% 75%
Keystone 1,401 3,732 10,155 166% 172%
W. MI 4,406 10,611 9,577 141% -10%
Austin Mtg 105 158 317 50% 101%
Parent 0 0 214        
 
Total 17,326 30,471 48,429 76% 59%

 

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Ten Largest Banks in Michigan

Ranked By Non-Performing Asset Ratio

 

Non-Performing Asset
Company Name City Ratio (%)
        12/31/2009  
Firstbank Corporation   Alma     3.27  
Chemical Financial Corporation   Midland   3.61  
Citizens Republic Bancorp, Inc.   Flint   4.99
Mercantile Bank Corporation   Grand Rapids   5.74
Independent Bank Corporation   Ionia   7.20
MBT Financial Corp.   Monroe   7.99
Macatawa Bank Corporation Holland 8.70
Capitol Bancorp Ltd.   Lansing   8.89
Citizens First Bancorp, Inc. Port Huron NA
Flagstar Bancorp, Inc.   Troy   NA

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Twenty Largest Banks in Michigan

Ranked By Non-Performing Asset Ratio

    Non-Performing Asset
Company Name City Ratio (%)
    12/31/2009
 
IBT Bancorp, Inc. Mount Pleasant 1.35
O.A.K. Financial Corporation Byron Center 1.68
Lake Michigan Financial Corporation Holland 1.83
Northwestern Bank Traverse City 2.73
Firstbank Corporation Alma 3.27
Chemical Financial Corporation Midland 3.61
United Bancorp, Inc. Tecumseh 3.90
Citizens Republic Bancorp, Inc. Flint 4.99
Mercantile Bank Corporation Grand Rapids 5.74
Independent Bank Corporation Ionia 7.20
MBT Financial Corp. Monroe 7.99
Macatawa Bank Corporation Holland 8.70
Capitol Bancorp Ltd. Lansing 8.89
First State Financial Corporation Saint Clair Shores 9.21
Community Central Bank Corporation Mount Clemens 9.76
First National Bancshares, Incorporated East Lansing 11.05
Dearborn Bancorp, Inc. Dearborn 13.40
Citizens First Bancorp, Inc. Port Huron NA
Flagstar Bancorp, Inc. Troy NA
Sterling Bank and Trust, FSB Southfield NA

 

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Ten Largest Banks in Michigan

Ranked By Texas Ratio

 
Company Name City Texas Ratio (%)
        12/31/2009  
Firstbank Corporation   Alma     29.52  
Chemical Financial Corporation   Midland   30.67  
Citizens Republic Bancorp, Inc.   Flint   42.15
Mercantile Bank Corporation   Grand Rapids   49.88
Independent Bank Corporation   Ionia   87.29
MBT Financial Corp.   Monroe   92.84
Macatawa Bank Corporation Holland 97.23
Capitol Bancorp Ltd.   Lansing   115.99
Flagstar Bancorp, Inc. Troy 164.29
Citizens First Bancorp, Inc. Port Huron 326.51

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Twenty Largest Banks in Michigan

Ranked By Texas Ratio

Company Name City Texas Ratio (%)
    12/31/2009
IBT Bancorp, Inc. Mount Pleasant 13.51
O.A.K. Financial Corporation Byron Center 17.05
Lake Michigan Financial Corporation Holland 19.06
Firstbank Corporation Alma 29.52
Chemical Financial Corporation Midland 30.67
Northwestern Bank Traverse City 31.01
United Bancorp, Inc. Tecumseh 36.38
Citizens Republic Bancorp, Inc. Flint 42.15
Sterling Bank and Trust, FSB Southfield 48.77
Mercantile Bank Corporation Grand Rapids 49.88
First National Bancshares, Incorporated East Lansing 59.84
Independent Bank Corporation Ionia 87.29
First State Financial Corporation Saint Clair Shores 91.05
MBT Financial Corp. Monroe 92.84
Macatawa Bank Corporation Holland 97.23
Capitol Bancorp Ltd. Lansing 115.99
Community Central Bank Corporation Mount Clemens 134.45
Dearborn Bancorp, Inc. Dearborn 149.08
Flagstar Bancorp, Inc. Troy 164.29
Citizens First Bancorp, Inc. Port Huron 326.51

 

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Capital
 

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Evolving Capital Standards

n Tier 1 (Core) Capital to Average Assets

– Adequately Capitalized: 4.00%

– Well Capitalized: 5.00% “New” Well Capitalized: 8.00%

n Total Capital to Risk Weighted Assets

– Adequately Capitalized: 8.00%

– Well Capitalized: 10.00%

– “New” Well Capitalized: 12.00%

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Capital Ratios

 

Tier I (Core)
Capital to
Average Assets		 Total Capital to
Risk Weighted
Assets
Regulatory Standard for Adequately Capitalized 4.00 % 8.00 %
Regulatory Standard for Well Capitalized 5.00 % 10.00 %
"New" Regulatory Standard for Well Capitalized 8.00 % 12.00 %
 
Firstbank Corporation 10.05 % 14.21 %
Firstbank - Alma 7.27 % 12.66 %
Firstbank - Mt. Pleasant 9.07 % 12.01 %
Firstbank - West Branch 8.15 % 11.75 %
Firstbank - St. Johns 8.64 % 12.22 %
Keystone Community Bank 9.97 % 11.89 %
Firstbank - West Michigan 8.05 % 13.22 %

 

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Sources of Capital

n Earnings

n Debt / Trust Preferred Securities

n Equity Offering

– Preferred Stock

  § Private Sector

  § Capital Purchase Program (CPP)

– Common Stock

n  Continuously Monitor Cost, Availability, and Dilution of Private Sector Capital

 

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     Dividend

&

 Shareholder Valuation

 

 

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Principles of Dividend Payment

n  We will pay dividends to shareholders representing their respective portion of company earnings

n  Dividends, in order to be paid, must be earned

n  Appropriate capital levels are essential to support stability and growth, and to cushion against losses and unexpected events

n  Dividend level should be stable and sustainable, unless the operating environment is unpredictable

n  Over the long term, the goal is for earnings, dividends, and shareholder value to increase

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Net Income Available To Common

And Common Dividends


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1st Quarter 2010 Results

 

 

 

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First Quarter 2010 Results

n  Net Income of $659,000

n  Earnings per share of $0.03

n  Mortgage Activity Decreased Sharply

n  Strong Core Deposit Growth of 1.3% in quarter and 11.4% from year-ago

n  Loan Outstandings down 2% in the quarter due to slow economy and lack of good quality lending opportunities

n  Sale of 1st Armored

 

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     First Quarter 2010 Loan and Deposit Growth

 

($000s)

 

 Q1
2009

 

 

 Q4
2009		 Q1
2010		 Q1/Q1 Q1/Q4
Loans 1,135,439 1,121,607 1,098,643 -3.2% -2.0 %
Core Deposits 1,023,547 1,126,231 1,140,524 11.4% 1.3 %

 

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Deposits / Funding

 

 

($000s) Dec 31
2009

 

 

 Dec 31
2008		 $Change %Change
Core deposits 1,126,231 1,015,801 110,430   10.9 %
Wholesale CD's 22,832 31,113 (8,281 ) -26.6 %
FHLB Advances 100,263 155,921 (55,658 ) -35.7 %
       
Total 1,249,326 1,202,835 46,491 3.9 %

 

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Maturing FHLB Advances

 

 

Principal

 

 

 Weighted
Avg Rate
Maturing in 2010 63,468,102 4.95%
Maturing in 2011 22,000,000 2.69%

 

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Core Deposit Growth

('$000s)        
      2009 2008 Change  
  Alma   209,756 193,597 8 %
  Mt. Pl .   312,866 264,217 18 %
  W. Br.   189,758 178,109 7 %
  St. J.   78,649 62,350 26 %
  Keystone   189,665 178,064 7 %
  W. MI   153,575 144,984 6 %
 
  Total   1,134,268 1,021,320 11 %
Consol 1,126,231 1,015,801 11 %

 

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Success Stories: Deposit Growth

 

· Top 10 Deposit Growth Branches in 2009*
· Hastings (adj. total in-market) – 121 %
· Paw Paw – 65 %
· DeWitt – 60 %
· Mission – 50 %
· Cadillac – 49 %
· Gull Road – 37 %
· Remus – 26 %
· Clare – 23 %
· St. J/Main Office – 22 %
· Mt. P/Downtown – 22 %

 

*12/31/09 Branch Profitability Reports

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Michigan Community Banking

n  Dynamic changes occurring as large banks withdraw from this market, and FDIC resolves failed banks

n  Renewed interest in FDIC insured products

n  Growing Understanding of the differences between Community Banks and others

n  More Appreciation for the commitment of Community Banks and their staff members to support local communities

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     Firstbank Corporation A Community Banking Company

n Positioned for Future Success when things return to normal because:

- Capitalize on the renewed interest in Community Banks

- Multi-charter structure with local decision -making very responsive and attractive

- Strong technology and human resources

- Size and capital base allows us to service larger customers than stand-alone banks

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2010 Priorities

n  Relentless Focus on Asset Quality and Improving Shareholder Value

n  Capture High Quality Loan Relationships abandoned by Nat’l and Regional banks

n  Reduce cost wherever possible, while selectively re-investing in long term growth opportunities

n  Continue Sales & Service Focus to increase Core Deposits in all 51 offices

n  Support our 530 staff members who are the key components of our success

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     Thank You

to our

Shareholders, Customers,

Communities

and

Staff Members

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