0000897101-13-000450.txt : 20130328
0000897101-13-000450.hdr.sgml : 20130328
20130328115158
ACCESSION NUMBER: 0000897101-13-000450
CONFORMED SUBMISSION TYPE: 10-K
PUBLIC DOCUMENT COUNT: 14
CONFORMED PERIOD OF REPORT: 20121231
FILED AS OF DATE: 20130328
DATE AS OF CHANGE: 20130328
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: CODORUS VALLEY BANCORP INC
CENTRAL INDEX KEY: 0000806279
STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
IRS NUMBER: 232428543
STATE OF INCORPORATION: PA
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 10-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-15536
FILM NUMBER: 13722435
BUSINESS ADDRESS:
STREET 1: CODORUS VALLEY CORPORATE CENTER
STREET 2: 105 LEADER HEIGHTS ROAD
CITY: YORK
STATE: PA
ZIP: 17403
BUSINESS PHONE: 717-846-1970
MAIL ADDRESS:
STREET 1: PO BOX 2887
STREET 2: 105 LEADER HEIGHTS ROAD
CITY: YORK
STATE: PA
ZIP: 17405
10-K
1
codorus125093_10k.htm
FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 10-K
(Mark One) x Annual Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 For the fiscal year
ended December 31, 2012
or o Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 For the transition
period from _____________ to _____________.
Commission file Number 0-15536
CODORUS VALLEY BANCORP, INC.
(Exact
name of registrant as specified in its charter)
Pennsylvania
23-2428543
(State
or other jurisdiction of
(I.R.S.
Employer
incorporation
or organization)
Identification
No.)
105 Leader Heights Road, P.O. Box 2887, York, Pennsylvania
17405
(Address
of principal executive offices) (Zip Code)
Registrants telephone
number, including area code: (717)
747-1519
Securities registered
pursuant to Section 12(b) of the Act:
Title
of each class
Name
of each exchange on which registered
Common Stock, $2.50 par value
NASDAQ Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act. o Yes x
No
Indicate by check mark if the
registrant is not required to file reports pursuant to Section 13 or Section 15
(d) of the Act. o Yes x
No
Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days. x Yes o
No
Indicate by check mark
whether the registrant has submitted electronically and posted on its corporate
Web site, if any, every Interactive Data File required to be submitted and
posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during
the preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files). Yes x No o
Indicate by check mark if the
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not
contained herein, and will not be contained, to the best of the registrants
knowledge, in the definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K. x
Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer or a smaller reporting company. See definition of large
accelerated filer, accelerated filer and smaller reporting company in Rule
12b-2 of the Exchange Act. (Check one):
Large accelerated filer o
Accelerated filer o
Non-accelerated filer o
Smaller Reporting Company x
Indicate by check mark
whether the registrant is a shell company as defined in Rule 12b-2 of the
Exchange Act. o Yes x
No
The aggregate market value of
Codorus Valley Bancorp, Inc.s voting stock held by non-affiliates was
approximately $53,567,116 as of June 29, 2012.
As of March 6, 2013, Codorus
Valley Bancorp, Inc. had 4,487,856 shares of common stock outstanding, par
value $2.50 per share.
DOCUMENTS INCORPORATED BY REFERENCE
Part III incorporates certain
information by reference to the registrants Proxy Statement for the Annual
Meeting of Shareholders to be held May 21, 2013.
Codorus Valley Bancorp, Inc. (Codorus Valley or the
Corporation) is a Pennsylvania business corporation, incorporated on October 7,
1986. On March 2, 1987, Codorus Valley became a bank holding company under the
Bank Holding Company Act of 1956. PeoplesBank, A Codorus Valley Company
(PeoplesBank) is its wholly owned bank subsidiary. SYC Realty Co., Inc. is its
wholly owned nonbank subsidiary. Codorus Valleys business consists primarily
of managing PeoplesBank, and its principal source of income is dividends
received from PeoplesBank. On December 31, 2012, Codorus Valley had total
consolidated assets of $1.06 billion, total deposits and other liabilities of
$958.4 million, and total shareholders equity of $101.3 million.
Bank
subsidiary
PeoplesBank, organized in 1934, is a Pennsylvania
chartered bank that offers a full range of business and consumer banking
services through eighteen financial centers located throughout York County,
Pennsylvania and in Hunt Valley, Bel Air and Westminster, Maryland.
PeoplesBank, with origins dating back to 1864, is focused on acquiring and
nurturing financial relationships with small and mid-sized businesses. It also
provides personal banking, mortgage banking, wealth management and real estate
settlement services. The Federal Deposit Insurance Corporation insures the
deposits of PeoplesBank to the maximum extent provided by law. On December 31,
2012, PeoplesBank had total gross loans of $738 million, excluding loans held
for sale, and total deposits of $902 million. PeoplesBank had the second
largest share of deposits in York County, PA with deposits totaling 13.1
percent of the market as of June 30, 2012, the latest available measurement
date.
PeoplesBank is not dependent on deposits of, or
exposed to a loan concentration to, a single customer, or a small group of
customers. Therefore, the loss of a single customer, or a small customer group,
would not have a material adverse effect on the financial condition of
PeoplesBank. At year-end 2012, the largest indebtedness of a single PeoplesBank
customer was $12,932,000, or 1.8 percent of the total loan portfolio, which was
within PeoplesBanks regulatory lending limit.
Most of the Corporations business is with customers
in York County, Pennsylvania and northern Maryland. Although this limited
market area may pose a concentration risk geographically, we believe that the
diverse local economy and our detailed knowledge of the customer base lessens
this risk. At year-end 2012 and 2011, the Corporation had two industry
concentrations that exceeded 10 percent of the total loan portfolio: builder
and developer were 13.2 percent and 14.9 percent of the portfolio at December
31, 2012 and 2011, respectively; and commercial real estate investor was 16.6
percent and 17.0 percent of the portfolio, respectively. Loans to borrowers
within these industries are usually collateralized by real estate.
Nonbank
subsidiaries of PeoplesBank
Codorus Valley Financial Advisors, Inc. is a wholly
owned subsidiary of PeoplesBank that sells non-deposit investment products.
This subsidiary began operations in January 2000 and, prior to a name change in
December 2005, operated under the name SYC Insurance Services, Inc. SYC
Settlement Services, Inc. is a wholly owned subsidiary of PeoplesBank that has
provided real estate settlement services since January 1999. Periodically,
PeoplesBank creates nonbank subsidiaries for the purpose of temporarily holding
foreclosed properties pending liquidation. On December 31, 2012, only one of
these subsidiaries was active. The operations of nonbank subsidiaries are
consolidated for financial reporting purposes.
Nonbank
subsidiaries of Codorus Valley Bancorp, Inc.
In June 2006, Codorus Valley formed CVB Statutory
Trust No. 2, a wholly-owned special purpose subsidiary whose sole purpose was
to facilitate a pooled trust preferred debt issuance of $7,217,000. In November 2004, Codorus Valley formed CVB Statutory
Trust No. 1 to facilitate a pooled trust preferred debt issuance of $3,093,000.
The Corporation owns 100 percent of the common stock of these nonbank
subsidiaries, which are not consolidated for financial reporting purposes.
These obligations are reported as junior subordinated debt on the Corporations
balance sheet.
On June 20, 1991, SYC Realty was incorporated as a
wholly owned subsidiary of Codorus Valley. Codorus Valley created this nonbank
subsidiary primarily for the purpose of holding foreclosed properties obtained
by PeoplesBank pending liquidation of those properties. SYC Realty commenced business
operations in October 1995.
Employees
At year-end 2012, PeoplesBank employed 200 full-time
employees and 36 part-time employees, which equated to approximately 219
full-time equivalent employees. Employees are not covered by a collective
bargaining agreement, and PeoplesBank considers its relations with employees to
be satisfactory.
Segment
reporting
Management has determined that it operates in only one
segment, community banking. The Corporations non-banking activities are
insignificant to the consolidated financial statements.
Competition
The banking industry in PeoplesBanks service area,
principally York County, Pennsylvania, and northern Maryland, specifically,
Baltimore, Harford and Carroll counties, is extremely competitive. PeoplesBank
competes through service and price and by leveraging its hometown image. It
competes with commercial banks and other financial service providers, such as
thrifts, credit unions, consumer finance companies, investment firms and
mortgage companies. Some financial service providers operating in PeoplesBanks
service area operate on a national and regional scale and possess resources
that are greater than PeoplesBanks.
Supervision
and regulation
Federal
Reserve System
Codorus Valley is registered as a bank holding
company, and is subject to regulation by the Board of Governors of the Federal
Reserve System (Federal Reserve), under the Bank Holding Company Act of 1956,
as amended. The Bank Holding Company Act requires bank holding companies to
file periodic reports with, and subjects them to examination by, the Federal
Reserve. The Federal Reserve has issued regulations under the Bank Holding
Company Act that require a bank holding company to serve as a source of
financial and managerial strength to its subsidiary banks. As a result, the
Federal Reserve may require Codorus Valley to use its resources to provide
adequate capital funds to PeoplesBank during periods of financial stress or
adversity.
The Bank Holding Company Act prohibits Codorus Valley
from acquiring direct or indirect control of more than 5 percent of the
outstanding voting stock of any bank, or substantially all of the assets of any bank, or merging with another bank holding company,
without the prior approval of the Federal Reserve. The Pennsylvania Department
of Banking must also approve certain similar transactions. Pennsylvania law
permits Pennsylvania bank holding companies to control an unlimited number of
banks.
The Bank Holding Company Act restricts Codorus Valley
to activities that the Federal Reserve has found to be closely related to
banking, and which are expected to produce benefits for the public that will
outweigh any potentially adverse effects. Therefore, the Bank Holding Company
Act prohibits Codorus Valley from engaging in most nonbanking businesses, or
acquiring ownership or control of more than 5 percent of the outstanding voting
stock of any company engaged in a nonbanking business, unless the Federal
Reserve has determined that the nonbanking business is closely related to
banking. Under the Bank Holding Company Act, the Federal Reserve may require a
bank holding company to end a nonbanking business if it constitutes a serious
risk to the financial soundness and stability of any bank subsidiary of the
bank holding company.
The Federal Reserve Act imposes restrictions on a
subsidiary bank of a bank holding company, such as PeoplesBank. The
restrictions affect extensions of credit to the bank holding company and its
subsidiaries, investments in the stock or other securities of the bank holding
company and its subsidiaries, and taking such stock or securities as collateral
for loans. The Federal Reserve Act and Federal Reserve regulations also place
limitations and reporting requirements on extensions of credit by a bank to the
principal shareholders of its parent holding company, among others, and to
related interests of such principal shareholders. In addition, such legislation
and regulation may affect the terms upon which any person becoming a principal
shareholder of a holding company may obtain credit from banks with which the
subsidiary bank maintains a correspondent relationship.
PeoplesBank and the banking industry, in general, are
affected by the monetary and fiscal policies of the U.S. Treasury and
government agencies, including the Federal Reserve. Through open market
securities transactions, changes in its federal funds and discount rates and
reserve requirements, the Federal Reserve exerts considerable influence over
the cost and availability of funds for lending and investment.
U.S.
Department of the Treasury
The U.S. Department of the Treasury (Treasury) has a
capital investment in the Corporation pursuant to the Corporations
participation in the Treasurys Small Business Lending Funding Program (SBLF
Program). In August 2011, the Corporation sold to the Treasury, for an
aggregate purchase price of $25 million, 25,000 shares of non-cumulative,
perpetual preferred stock, Series B, $1,000 liquidation value, $2.50 par value.
Proceeds from the SBLF Program were used in part to redeem $16.5 million of
outstanding Series A preferred stock previously issued to the Treasury under
its Capital Purchase Program (CPP) and to repurchase a related CPP common stock
warrant. These transactions were previously disclosed in filings with the SEC.
The terms of the SBLF Preferred Stock Agreement impose limits on the ability of
the Corporation to pay dividends and repurchase shares of common stock, as
disclosed within Note 10Shareholders Equity to the consolidated financial
statements.
Pennsylvania
Department of Banking
The operations of PeoplesBank are subject to state
statutes applicable to banks chartered under the banking laws of the
Commonwealth of Pennsylvania. Pennsylvania business and banking laws restrict
dividend payments if such payment would render the Corporation insolvent or
result in negative net worth, and the Corporation and PeoplesBank are subject
to regulatory capital requirements. More information about dividend
restrictions and capital requirements can be found in Note 9Regulatory Matters
in the notes to the consolidated financial statements.
State and federal banking laws and regulations govern
such things as: the scope of a banks business; permissible investments; the
reserves against deposits a bank must maintain; the types and terms of loans a
bank may make and the collateral it may take; the activities of a bank with
respect to mergers and consolidations; the establishment of branches; and the
sale of non-deposit investment products by the bank and its insurance
subsidiary. The Pennsylvania Insurance Department, the Securities and Exchange
Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)
control and supervise the licensing and activities of employees engaged in the
sale of non-deposit investment products.
Federal
Deposit Insurance Corporation (FDIC)
The FDIC is the primary federal regulator of
PeoplesBank. It regularly examines banks in such areas as capital, asset
quality, management, earnings, liquidity and sensitivity to market risk and
other aspects of operations and requires that PeoplesBank furnish annual and
quarterly reports. Examinations by the FDIC are designed for the protection of
PeoplesBanks depositors rather than Codorus Valleys shareholders. The FDIC
provides deposit insurance to banks, which covers all deposit accounts. The
standard maximum insurance amount is $250,000 per depositor.
PeoplesBank pays deposit insurance premiums to the
FDIC based on a risk-based assessment formula established by the FDIC for Deposit
Insurance Fund (DIF) member institutions. Institutions are classified into one
of four risk categories and pay premiums according to perceived risk to the
FDICs DIF. PeoplesBank has consistently been a risk category I institution,
the least risky category. Institutions in risk categories II, III and IV are
assessed premiums at progressively higher rates.
As a means of funding the FDICs DIF, banks were
required to prepay several years of deposit insurance premiums. In accordance
with the FDICs final rule in November 2009 pertaining to prepaid assessments
for the banking industry, PeoplesBank prepaid approximately $4.4 million to the
FDIC on December 30, 2009. This prepaid amount represented an accumulation of
regular quarterly assessments projected by the FDIC through the year 2012.
Insured institutions recorded the entire prepaid assessment as a prepaid asset
subject to amortization of an appropriate amount to expense each quarter to
coincide with quarterly FDIC assessment notices. At December 31, 2012, the
Corporation had a prepaid asset balance of approximately $1.3 million, which is
expected to be returned to the Corporation by the FDIC in June 2013. Beginning
in the year 2013, the Corporation will accrue the cost of FDIC premiums in
anticipation of quarterly assessments by the FDIC.
In February 2011, the FDIC announced its final rule
pertaining to, among other things, changes in the computation of risk-based
insurance premiums as mandated by the Dodd-Frank Wall Street Reform and
Consumer Protection Act. The final rule, which took effect April 1, 2011,
changed the assessment base from domestic deposits to average assets minus
average tangible equity, i.e., Tier 1 capital, and lowered assessment rates.
For insured member institutions below $10 billion in total assets, the four
risk categories framework mentioned earlier continues to apply. For the least
risky category I institutions, such as PeoplesBank, the assessment rate range
of 7 to 24 basis points on domestic deposits decreased to 2.5 to 9 basis points
on total average assets minus average tangible equity. The final rule
eliminated risk categories for large institutions with total assets of $10
billion or more. Instead, their assessment rates are now calculated using a
scorecard that combines regulatory ratings and certain forward financial
measures to assess the risk a large institution poses to the DIF. Generally,
the change in the assessment methodology by the FDIC lowered deposit insurance
premiums for community banks like PeoplesBank.
Effective January 1, 2012, PeoplesBank became subject
to FDIC regulation 363.3(b), which requires depository institutions with total
assets of $1 billion or more to engage an independent public accountant to
examine, attest to, and report on the assertion of management concerning the
institutions internal control structure and procedures for financial
reporting.
Requirements
of federal agencies that affect the Corporation and PeoplesBank
Small
Business Jobs and Credit Act of 2010 In September 2010,
President Obama signed into law the Small Business Jobs and Credit Act of 2010,
which created the Small Business Lending Fund (SBLF). Under the SBLF the U.S.
Treasury (Treasury) was authorized to make a capital investment of up to $30
billion by purchasing securities in participating community banks, principally
in the form of senior preferred stock, that agree to use the funds to increase
small-business lending. The SBLF limits the investment by the Treasury to 5
percent of risk-weighted assets for participating banks with total assets of $1
billion or less, and to 3 percent of risk-weighted assets for participating
banks with more than $1 billion but less than $10 billion of total assets.
Although the dividend rate was initially set at 5 percent, a participating community
bank can decrease the dividend rate to as low as 1 percent by increasing its
qualifying small business lending portfolio balance by at least 10 percent
above a baseline portfolio balance. However, four and a half years after
issuance, the dividend rate on SBLF securities will increase to 9 percent
regardless of the level of small business lending. The SBLF provides community
banks with a relatively inexpensive form of Tier 1 capital and also provides an
attractive option for community banks to refinance preferred stock issued to
the Treasury pursuant to its Capital Purchase Program. Accordingly, the
Corporation participated in the SBLF program during the year 2011 and continues
to participate in this program as discussed within the Shareholders Equity and
Capital Adequacy section of this report.
Dodd-Frank
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) In
July 2010, the Dodd-Frank Act was enacted to improve accountability and
transparency in the financial system, to attempt to end too big to fail
pertaining to large, troubled financial institutions, to protect the American
taxpayer by ending governmental bailouts, to protect consumers from abusive
financial services practices and for other purposes. The Dodd-Frank Act is
broad and complex legislation that puts in place a sweeping new financial
services regime that will have significant regulatory and legal consequences
for banks now and for years to come. The effects of the Dodd-Frank Act on the
financial services industry will depend, in large part, upon the extent to
which regulators exercise the authority granted to them under the Dodd-Frank
Act and the approaches taken in implementing regulations. Additional
uncertainty regarding the effect of the Dodd-Frank Act exists due to the potential
for additional legislative changes to the Dodd-Frank Act. The Corporation, as
well as the broader financial services industry, is continuing to assess the
potential impact of the Dodd-Frank Act on its business and operations, but at
this stage, the extent of the impact cannot be determined with any degree of
certainty. However, the Corporation is likely to be impacted by the Dodd-Frank
Act in the areas of corporate governance, deposit insurance assessments,
capital requirements, risk management, stress testing, and regulation under
consumer protection laws. The Dodd-Frank Act:
Provides extensive authorities to the federal bank
regulatory agencies and, in particular, the Board of Governors of the Federal
Reserve, to take proactive steps to reduce or eliminate threats to the safety
of the financial system, impose strict controls on large bank holding
companies ($50 billion or more) and nonbank financial companies to limit
their risk, and take direct control of troubled financial companies considered
systemically significant;
Increases bank supervision by restructuring the
supervision of holding companies and depository institutions. Establishes the
equivalent of a prompt corrective action program for large bank holding
companies. Requires that capital requirements for holding companies be at
least as strict as capital requirements for depository institutions.
Disallows new issuances of preferred securities to qualify for Tier 1 capital
treatment. Directs federal bank regulators to develop specific capital
requirements for holding companies and depository institutions that address
activities that pose risk to the financial system, such as significant
activities in higher risk areas, or concentrations in assets whose reported
values are based on models;
Establishes the Bureau of Consumer Financial
Protection (Bureau) as an independent entity within the Federal Reserve
System that will assume responsibility for most consumer protection laws. The
Bureau will have authority to supervise, examine and take enforcement action
with respect to depository institutions with more than $10 billion in assets
and nonbank mortgage industry participants and other designated nonbank
providers of consumer financial services;
Places certain limitations on investment and other
activities by depository institutions, holding companies and their
affiliates. Banks and their affiliates face strict limits on investment in,
and sponsoring of, hedge funds and private equity funds. The coverage of Section
23A of the Federal Reserve Act is expanded to include the credit exposure
related to additional transactions, including derivatives. New restrictions
are imposed on acquisitions that would result in a financial services company
controlling more than 10 percent of the consolidated aggregate liabilities of
all financial companies; and
Significantly increases the regulation of mortgage
lending and servicing by banks and nonbanks. Requires mortgage originators to
ensure that the consumer will have the capacity to repay the loan and
mandates loan related disclosures. Requires mortgage loan securitizers to
retain a certain amount of risk, unless the mortgages conform to the new
regulatory standards as qualified residential mortgages.
American
Recovery and Reinvestment Act of 2009 (ARRA) In February
2009, the ARRA was enacted by the U.S. Congress in response to the recent
financial crisis. The basic intent behind the ARRA was to preserve jobs and
promote economic recovery, to assist those most impacted by the recession, to
provide investments needed to increase efficiency by spurring technological
advances in science and health, to invest in transportation and environmental
protection and other infrastructure that will provide long-term economic benefits,
and to stabilize state and local government budgets, in order to minimize and
avoid reductions in essential services and counterproductive state and local
taxes.
Emergency
Economic Stabilization Act of 2008 (EESA) In October of 2008,
the EESA, also known as the Troubled Asset Relief Act (TARP), was enacted.
Under TARP, the U.S. Department of the Treasury initiated a Capital Purchase
Program (CPP), which allowed qualified financial institutions to issue
preferred stock to the Treasury, subject to certain limitations and terms. The
EESA was developed to attract broad participation by strong financial
institutions to stabilize the financial system and increase lending to benefit
the national economy and U.S. citizens. As previously reported, in January 2009,
the Corporation sold 16,500 shares of nonvoting Series A perpetual preferred
stock and a common stock warrant to the Treasury and received $16.5 million in
capital funds. Also as previously reported in August 2011 the Corporation
redeemed all outstanding shares of Series A CPP preferred stock, and in
September 2011 it repurchased the outstanding CPP common stock warrant. More
information about this capital transaction is provided within the Shareholders
Equity and Capital Adequacy section of this report.
Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act (SOA) was signed into
law in July 2002 and applies to all companies, both U.S. and non-U.S, that file
periodic reports under the Securities Exchange Act of 1934. The stated
goals of the SOA were to increase corporate responsibility, to provide for
enhanced penalties for accounting and auditing improprieties at publicly traded
companies and to protect investors by improving the accuracy and reliability of
corporate disclosures pursuant to the securities laws. The SEC is responsible
for establishing rules to implement various provisions of the SOA. The SOA
includes specific disclosure requirements and corporate governance rules,
requires the SEC and securities exchanges to adopt extensive additional disclosure,
corporate governance and other related rules and mandates further studies of
certain issues by the SEC. The SOA represents significant regulation of the accounting profession and corporate
governance practices, such as the relationship between a board of directors and
management and between a board of directors and its committees. Section 404 of
the SOA became effective for the year ended December 31, 2004, for companies
whose public float (i.e., the product of outstanding common shares held by non-affiliates
times the share price as of the last business day of the registrants most
recently completed second fiscal quarter) was above $75 million. For smaller
companies (non-accelerated and smaller reporting company filers), including
Codorus Valley, the effective date was the fiscal year ending on or after
December 15, 2007. Section 404 requires publicly held companies to document,
test and certify that their internal control systems over financial reporting
are effective. During 2010, the Dodd-Frank Act permanently exempted public
companies with common stock capitalization of less than $75 million from the
independent auditor attestation requirements of the SOA. Effective December 31,
2012, PeoplesBank became subject to independent auditor attestation under FDIC
regulation 363.3(b) due to its asset size, which is essentially equivalent to
the SECs independent attestation requirement under Section 404 of the SOA.
USA Patriot Act of 2001 In October of 2001,
the USA Patriot Act of 2001 was enacted to strengthen U.S. law enforcements
and the intelligence communities abilities to work cohesively to combat
terrorism on a variety of fronts. The Patriot Act contains sweeping anti-money
laundering and financial transparency laws and imposes various regulations on
financial institutions, including standards for verifying client identification
at account opening, and rules to promote cooperation among financial
institutions, regulators and law enforcement entities in identifying parties
that may be involved in terrorism or money laundering.
Periodically, various types of federal and state
legislation are proposed that could result in additional regulation of, and
restrictions on, the business of Codorus Valley and PeoplesBank. It cannot be
predicted whether such legislation will be adopted or, if adopted, how such
legislation would affect the business of Codorus Valley and its subsidiaries.
As a consequence of the extensive regulation of commercial banking activities
in the United States of America, Codorus Valley and PeoplesBanks business is
particularly susceptible to being affected by federal legislation and
regulations. The general cost of compliance with numerous and multiple federal
and state laws and regulations does have, and in the future may have, a negative
impact on Codorus Valleys results of operations.
Other
information
This Annual Report on Form 10-K is filed with the
Securities and Exchange Commission (SEC). Copies of this document, the
Quarterly Report on Form 10-Q, Current Reports on Form 8-K, amendments to those
reports and other SEC filings by Codorus Valley Bancorp, Inc. may be obtained
electronically at PeoplesBanks website at www.peoplesbanknet.com (select
Investor Relations, then select SEC filings, then select Documents), or the
SECs website at www.sec.gov/edgarhp.htm. Copies can also be obtained without
charge by writing to: Treasurer, Codorus Valley Bancorp, Inc., P.O. Box 2887,
York, PA 17405-2887.
Codorus Valley Bancorp, Inc. owns the Codorus Valley
Corporate Center (Corporate Center), subject to a $1.2 million lien held by its
wholly owned subsidiary, PeoplesBank. The Corporate Center is located at 105
Leader Heights Road, York Township, York, PA. This facility serves as the
corporate headquarters and is approximately 40,000 square feet, a portion of
which is leased to third-parties. The Corporate Center is adjacent to
PeoplesBanks Data Operations Center and the Leader Heights banking office.
PeoplesBank operates 18 branch banking offices. Of
this total, 6 are owned by PeoplesBank without liens and located in York
County, PA, and 12 are leased by PeoplesBank and are located in York County,
PA, and in Baltimore, Carroll and Harford Counties in Maryland.
Plans call for the construction of a full-service
branch office in Dover, PA on a building lot purchased by PeoplesBank in
October 2012. The new office has all necessary regulatory approvals and is
expected to be operational by the fall of 2013. Additionally, management is
seeking regulatory approval to establish a full-service branch office in
Hanover, PA. The branch will be operated out of leased office space and,
subject to regulatory approval, is scheduled to be operational in May 2013.
We believe that the above properties owned and leased
by the Corporation and its subsidiary are adequate for present levels of
operation.
Item 3: Legal proceedings
There are no legal proceedings pending against Codorus
Valley Bancorp, Inc. or any of its subsidiaries which are expected to have a
material impact upon the financial position and/or operating results of the
Corporation. Management is not aware of any proceedings known or contemplated
by governmental authorities.
Item 5: Market for registrants common equity, related
shareholder matters and issuer purchases of equity securities
Market
information
The common shares of Codorus Valley Bancorp, Inc. are
traded on the NASDAQ Global Market under the symbol CVLY. Codorus Valley had
approximately 1,991 holders of record as of March 6, 2013. The closing price
per share of Codorus Valleys common stock on March 6, 2013, was $16.37. The
following table sets forth high and low sales prices and dividends paid per
common share for Codorus Valley as reported by NASDAQ during the periods
indicated. All amounts reflect the impact of the 5 percent common stock
dividend distributed by the Corporation on December 11, 2012.
2012
2011
Quarter
High
Low
Dividends
per share
High
Low
Dividends
per share
First
$
10.67
$
7.89
$
0.086
$
10.70
$
8.86
$
0.076
Second
13.22
10.26
$
0.086
10.71
9.54
$
0.086
Third
15.39
12.62
$
0.105
10.48
8.33
$
0.086
Fourth
16.00
13.52
$
0.105
9.29
7.84
$
0.086
Dividend
policy
Codorus Valley has a long history of paying quarterly
cash dividends on its common stock. Codorus Valley presently expects to pay
future cash dividends; however, the payment of such dividends will depend
primarily upon the earnings of its subsidiary, PeoplesBank. Management
anticipates that substantially all of the funds available for the payment of
cash dividends by Codorus Valley will be derived from dividends paid to it by
PeoplesBank. The payment of cash dividends is also subject to restrictions on
dividends and capital requirements as reported in Note 9-Regulatory Matters in
the notes to the consolidated financial statements.
The Corporations participation in the U.S. Department
of the Treasurys Small Business Lending Fund Program, previously disclosed in
filings with the SEC, requires the payment of non-cumulative dividends
quarterly on each January 1, April 1, July 1 and October 1 on the $25 million
of Series B preferred stock issued to the Treasury on August 18, 2011, under
its SBLF Program. The dividend rate can fluctuate on a quarterly basis for the
first 10 quarters during which the SBLF preferred stock is outstanding, based
upon changes in the level of Qualified Small Business Lending or QSBL (as
defined in the Purchase Agreement under which the SBLF preferred stock was
purchased by the Treasury) by the Bank. Based upon the increase in the Banks
level of QSBL over the baseline level calculated under the terms of the
Purchase Agreement, the dividend rate for the initial dividend period was set
at 5 percent. For the second through ninth calendar quarters, the dividend rate
may be adjusted to between one percent and five percent per annum to reflect
the amount of change in the Banks level of QSBL. If the level of the Banks
qualified small business loans declines so that the percentage increase in QSBL
as compared to the baseline level is less than 10 percent, then the dividend
rate payable on the SBLF Preferred Stock would increase. For the tenth calendar
quarter through four and one-half years after issuance, the dividend rate will
be fixed at between one percent and seven percent based upon the increase in
QSBL as compared to the baseline. After four and one half years from issuance,
the dividend rate will increase to 9 percent (including a quarterly lending
incentive fee of 0.5 percent). The terms of the SBLF Preferred Stock Agreement
impose limits on the ability of the Corporation to pay dividends and repurchase
shares of common stock, as discussed in Note 10-Shareholders Equity in the
notes to the consolidated financial statements.
Prior to August 18, 2011, the Corporation paid quarterly
cash dividends of 5 percent per annum on $16.5 million of Series A preferred
stock that it sold to the Treasury on January 9, 2009, under Treasurys Capital
Purchase Program. The Series A preferred stock was subsequently redeemed on
August 18, 2011 to coincide with the issuance of Series B preferred stock under
the SBLF Program, as required by the Treasury.
Securities
authorized for issuance under equity compensation plans
The following table provides information about options
outstanding and securities available for future issuance under the
Corporations 2000 Stock Incentive Plan, 2001 Employee Stock Bonus Plan, 2007
Long Term Incentive Plan and 2007 Employee Stock Purchase Plan.
Equity Compensation
Plan Information
Plan Category
Number of securities
to be issued upon
exercise of outstanding
options, warrants and rights
Weighted-average
exercise price of
outstanding options,
warrants and rights
Number of securities
remaining available for
future issuance under equity
compensation plans
(excluding securities
reflected in the first column)
Equity compensation plans approved by security holders
254,184
$
10.70
402,162
(1)
Equity compensation plans not approved by security holders
0
0
15,007
(2)
Total
254,184
$
10.70
417,169
(1)
Includes 172,668 shares available for issuance under the 2007
Employee Stock Purchase Plan.
(2)
Shares available for issuance under the 2001 Employee Stock
Bonus Plan that provides for shares of common stock to employees as
performance-based compensation.
Purchases
of equity securities by the issuer and affiliated purchasers
For the years ended December 31, 2012 and 2011, the Corporation did not
acquire any of its common stock under the current repurchase program.
Item 7: Managements
discussion and analysis of financial condition and results of operations
Managements
discussion and analysis of the significant changes in the results of
operations, capital resources and liquidity presented in the accompanying
consolidated financial statements for Codorus Valley Bancorp, Inc. (Codorus
Valley or the Corporation), a bank holding company, and its wholly owned
subsidiary, PeoplesBank, A Codorus Valley Company (PeoplesBank), are provided
below. Codorus Valleys consolidated financial condition and results of operations
consist almost entirely of PeoplesBanks financial condition and results of
operations. Current performance does not guarantee and may not be indicative of
similar performance in the future.
Forward-looking statements
Management of
the Corporation has made forward-looking statements in this Annual Report on
Form 10-K. These forward-looking statements may be subject to risks and
uncertainties. Forward-looking statements include information concerning
possible or assumed future results of operations of the Corporation and its
subsidiaries. When words such as believes, expects, anticipates or
similar expressions are used in this Form 10-K, management is making
forward-looking statements.
Note that many
factors, some of which are discussed elsewhere in this report and in the
documents that are incorporated by reference, could affect the future financial
results of the Corporation and its subsidiaries, both individually and
collectively, and could cause those results to differ materially from those
expressed in the forward-looking statements contained or incorporated by
reference in this Form 10-K. These factors include, but are not limited to, the
following:
operating,
legal and regulatory risks;
enacted financial reform legislation, e.g., Dodd-Frank Wall
Street Reform and Consumer Protection Act, may have a significant impact on
the Corporations business and results of operations;
a
prolonged economic downturn;
an
increase in nonperforming assets requiring loss provisions and the incurrence
of carrying costs related to nonperforming assets;
declines in the market value of investment securities considered
to be other-than-temporary;
the
effects of and changes in the rate of FDIC premiums, including special
assessments;
interest rate fluctuations which could increase our cost of
funds or decrease our yield on earning assets and therefore reduce our net
interest income;
future legislative or administrative
changes to U.S. governmental capital programs;
unavailability of capital when needed or availability at less
than favorable terms;
political and competitive forces affecting
banking, securities, asset management and credit services businesses;
unauthorized disclosure of sensitive or confidential client or
customer information, whether through a breach of our computer systems or
otherwise, may adversely affect the Corporations operations, net income or
reputation, and
the
risk that managements analyses of these risks and forces could be incorrect
and/or that the strategies developed to address them could be unsuccessful.
The
Corporation undertakes no obligation to publicly revise or update these
forward-looking statements to reflect events or circumstances that arise after
the date of this report.
Disclosure of
Codorus Valleys significant accounting policies is included in Note 1 in the
notes to the consolidated financial statements of this Form 10-K. Some of these
policies require management to make significant judgments, estimates and
assumptions that have a material impact on the carrying value of certain assets
and liabilities.
Management
makes significant estimates in determining the allowance for loan losses,
valuation of foreclosed real estate, and evaluation of other-than-temporary
impairment losses of securities. Management considers a variety of factors in
establishing allowance for loan losses such as current economic conditions,
diversification of the loan portfolio, delinquency statistics, results of
internal loan reviews, financial and managerial strength of borrowers, adequacy
of collateral, (if collateral dependent, or present value of future cash flows)
and other relevant factors. There is also the potential for adjustment to the
allowance for loan losses as a result of regulatory examinations. Foreclosed
real estate is initially recorded at fair value minus estimated costs to sell
at the date of foreclosure, establishing a new cost basis. Appraisals are
generally used to determine fair value. After foreclosure, management reviews
valuations at least quarterly and adjusts the asset to the lower of cost or
fair value minus estimated costs to sell. Estimates related to the value of
collateral can have a significant impact on whether or not management continues
to accrue income on delinquent and impaired loans and on the amounts at which
foreclosed real estate is recorded on the statement of financial condition.
The
Corporation records its available-for-sale securities portfolio at fair value.
Fair values for these securities are determined based on methodologies in
accordance with FASB Accounting Standards Codification (ASC) Topic 820. Fair
values for debt securities are volatile and may be influenced by any number of
factors, including market interest rates, prepayment speeds, discount rates,
credit ratings and yield curves. Fair values for debt securities are based on
quoted market prices, where available. If quoted market prices are not
available, fair values are based on the quoted prices of similar instruments or
an estimate of fair value by using a range of fair value estimates in the
market place as a result of the illiquid market specific to the type of
security. When the fair value of a debt security is below its amortized cost
and depending on the length of time the condition exists and the extent the
fair value is below amortized cost, additional analysis is performed to
determine whether an other-than-temporary impairment condition exists. Debt
securities are analyzed quarterly for possible other-than-temporary impairment.
The analysis considers whether the Corporation has the intent to sell its debt
securities prior to market recovery or maturity and whether it is more likely
than not that the Corporation will be required to sell its debt securities
prior to market recovery or maturity. Often, information available to conduct
these assessments is limited and rapidly changing, making estimates of fair
value subject to judgment. If actual information or conditions are different
than estimated, the extent of the impairment of the debt security may be
different than previously estimated, which could have a material effect on the
Corporations results of operations and financial condition.
Management
discussed the development and selection of critical accounting estimates and
related Management Discussion and Analysis disclosure with the Audit Committee.
There were no material changes made to the critical accounting estimates during
the periods presented within this report. Additional information is contained
in Managements Discussion and Analysis regarding critical accounting
estimates, including the provision and allowance for loan losses, located on
pages 22 and 39 of this report.
Net income
available to common shareholders (earnings) for the year 2012 increased
$3,691,000 or 69 percent above the year 2011, driven primarily by a decrease in
the provision for loan losses and an increase in net interest income. The
$3,185,000 or 65 percent pretax decrease in the provision for loan losses for
the year 2012 reflected improved credit quality and a decrease in loan impairment
charges compared to the year 2011. The $2,933,000 or 9 percent pretax increase
in net interest income resulted from an increase in the average volume of
earnings assets, principally commercial loans, as the Corporation leveraged its
capital addition in 2011. A decrease in funding costs, resulting from the
unusually low level of market interest rates and from a larger proportion of
low cost core deposits to total deposits, also contributed significantly to the
increase in net interest income. The level of core deposits, which for internal
purposes includes repurchase agreements but excludes certificates of deposit,
has trended up over the years and at December 31, 2012 comprised approximately
55 percent of total deposits. Given the low interest rate environment, the
economy and the relatively high level of unemployment, our depositors have
shown a preference for liquidity. A challenge for the Corporation and the
financial industry will be the retention of low-cost core deposits when market
interest rates eventually ramp up. According to recent pronouncements by the
Federal Reserves Federal Open Market Committee, market interest rates could
begin to rise in 2015.
Given the
economy, the level of unemployment and general declines in housing prices there
has been little demand for consumer loans. In contrast, residential mortgage
loan refinancings increased significantly as homeowners took advantage of
historically low market interest rates. Refinanced residential mortgage loans
were sold to investors thereby generating a record level of income gains for
the year 2012. Given the long duration of low market interest rates,
refinancing activity is expected to reach a saturation level resulting in
decreased residential mortgage loan production and revenue therefrom at some
point in the future.
Plans call for
the construction of a full-service branch office in Dover, PA on a building lot
purchased by PeoplesBank in October of 2012. The new office has all necessary
regulatory approvals and is expected to be operational by the fall of 2013.
Additionally, management is seeking regulatory approval to establish a
full-service branch office in Hanover, PA. The branch will be operated out of
leased office space and, subject to regulatory approval, is scheduled to be
operational in May 2013.
For 2012, the
Corporation paid cash dividends totaling $0.382 per common share, an increase
of $0.048 or 14 percent above the year 2011 and distributed a 5 percent common
stock dividend. The market price of the Corporations common stock ended the
year 2012 at $15.05 per share, a $7.15 increase per share over year-end 2011.
In the periods
ahead, we will remain focused on profitable balance sheet growth, acquiring and
nurturing client relationships, instilling a client centric culture, managing
risk and expanding the banking franchise. We anticipate a continuation of
economic weakness, both nationally and locally, through 2014 and possibly
beyond. Risks and uncertainties include prolonged weakness in economic and
business conditions, which could increase credit-related losses, possible
declines in the market value of investment securities considered to be
other-than-temporary, a relatively high level of unemployment, erosion of real
estate values and possible adverse economic impacts caused by global events.
The Selected
Financial Data schedule, located on page 13 of this report, provides a summary
of operations and performance metrics for the past five years in a comparative
format.
2012 vs. 2011
The Corporation
earned net income available to common shareholders (earnings) totaling
$9,010,000 or $2.03 per share basic, $2.00 per share diluted, compared to
$5,319, 000 or $1.22 per share basic, $1.21 per share diluted for the year
2011. Per share amounts, for all periods, were adjusted for the 5 percent
common stock dividend distributed in December 2012. The $3,691,000 or 69
percent increase in earnings was primarily the result of increases in interest
and noninterest income and decreases in the provision for loan losses and
preferred stock dividends, which more than offset increases in noninterest
expense and provision for income taxes.
The $2,933,000
or 9 percent increase in net interest income for the year 2012, compared to the
year 2011, resulted from an increase in the average volume of earning assets,
principally commercial loans, and a decrease in funding costs. The decrease in
funding costs resulted from a larger proportion of low cost core deposits to
total deposits and lower rates generally paid on all deposit products, which
reflected historically low market interest rates. Net interest income (tax
equivalent basis) as a percentage of interest earning assets, i.e., net
interest margin, was 3.81 percent for the year 2012, compared to 3.73 percent
for the year 2011.
The $3,185,000
or 65 percent decrease in the provision for loan losses for the year 2012
reflected improved credit quality and a decrease in loan impairment charges
compared to the year 2011.
The $832,000
or 11 percent increase in noninterest income for the year 2012, compared to the
year 2011, resulted primarily from a $550,000 or 71 percent increase in gains
from the sale of loans held for sale (i.e., residential mortgage loans). Market
interest rates decreased to record low levels during the year 2012, leading to
an increase in residential mortgage loan refinancings. A $302,000 or 29 percent
increase in pretax gains from the sale of investment securities also
contributed to the increase in noninterest income. U.S. agency mortgage-backed
securities (MBS) were selectively sold at a gain to remove relatively low
yielding instruments that were prepaying principal faster than anticipated and
small odd-lot securities from the MBS portfolio.
The $2,849,000
or 11 percent increase in noninterest expense for the year 2012, compared to
the year 2011, was due primarily to increases in personnel expenses and
foreclosed real estate costs. The $1,564,000 or 11 percent increase in
personnel expense was due to normal business growth, which included the impact of
franchise expansion in September 2011, and the recognition of annual
performance incentives. The $1,129,000 or 66 percent increase in foreclosed
real estate costs reflected increased provisioning for impairment losses,
including a $1,027,000 provision relating to a foreclosed property, as
previously reported on Form 8-K filed on August 30, 2012.
The $1,486,000
or 92 percent increase in the provision for income taxes for the year 2012,
compared to the year 2011, was a result of the 49 percent increase in income
before income taxes.
The $1,076,000
or 74 percent decrease in preferred stock dividends and discount accretion for
the year 2012, compared to the year 2011, reflected a decrease in the dividend
rate and the redemption of preferred stock and a related warrant under the U.S.
Treasurys Capital Purchase Program in the third quarter of 2011.
On December
31, 2012, total assets were approximately $1.06 billion representing a $48
million or 5 percent increase above December 31, 2011. Compared to one year
ago, asset growth occurred primarily in the commercial loan portfolio and was
funded primarily by an increase in core deposits.
Cash dividends
on common shares for the year 2012 totaled $0.382 per share, representing an
increase of $0.048 or 14 percent above 2011. Additionally, a 5% common stock
dividend was distributed on December 11, 2012. Comparatively, no stock
dividends on the Corporations common stock were distributed in the prior two
years.
The
Corporation has traditionally maintained a capital level well above minimum
regulatory quantitative requirements. Currently, there are three federal
regulatory definitions of capital that take the form of minimum ratios. Table
9Capital Ratios, shows that the Corporation and PeoplesBank were well capitalized
for all three years presented.
2011 vs. 2010
The
Corporation earned net income available to common shareholders of $5,319,000 or
$1.22 per share, $1.21 diluted, for the year 2011, compared to $5,228,000 or
$1.22 per share, $1.21 diluted, for the year 2010. The $91,000 or 2 percent
increase in annual earnings for the year 2011, compared to the year 2010 was
the result of an increase in net interest income and a decrease in total
noninterest expense, which more than offset a decrease in noninterest income
and increases in the provision for loan losses, the provision for income taxes
and preferred stock dividends and discount accretion.
The $2,179,000
or 7 percent increase in net interest income for 2011 resulted primarily from a
larger volume of earning assets, principally commercial loans and investment
securities, and a decrease in funding costs. The decrease in funding costs
resulted from a lower volume of borrowings, a larger proportion of low cost
core deposits to total deposits and lower rates generally paid on all deposit
products, which reflected unusually low market interest rates. Net interest
income (tax equivalent basis) as a percentage of interest earning assets, i.e.,
net interest margin, was 3.73 percent for the year 2011, compared to 3.72
percent for the year 2010.
The $1,945,000
or 65 percent increase in the provision for loan losses for the year 2011
reflected an increase in losses on various commercial loan relationships.
During September 2011, the Corporation recorded losses totaling $3,175,000 on
two unrelated commercial loan relationships which it disclosed in a Form 8-K
filed on October 3, 2011, as amended by Form 8-K/A filed on November 10, 2011.
The provision for the years 2011 and 2010 remained elevated in comparison to
the Corporations historic levels (pre-2008) and was reflective of the risks
and uncertainties associated with prolonged weakness in economic and business
conditions, a relatively high level of unemployment and erosion of real estate
values.
Total
noninterest income decreased $216,000 or 3 percent for the year 2011 primarily
as a result of a decrease in income from mutual fund, annuity and insurance
sales due to the resignation of four registered representatives who left in
February. Total noninterest expense decreased $1,037,000 or 4 percent for the
year 2011 primarily as a result of a decrease in net costs and losses
attributable to foreclosed real estate and impaired loans.
The provision
for income tax expense for the year 2011, compared to the year 2010, increased
$484,000 or 43 percent due primarily to the 14 percent increase in the level of
income before income taxes.
The $480,000
or 49 percent increase in preferred stock dividends and discount accretion for
the year 2011, compared to the year 2010, was primarily attributable to a
non-recurring $379,000 transaction to remove unamortized discount caused by the
redemption of all outstanding preferred stock issued to the U.S.
Department of the Treasury (Treasury) under its Capital Purchase Program. The
increase in dividends was caused by an increase in outstanding preferred stock,
which reflected the Corporations participation in the Treasurys Small
Business Lending Fund Program (SBLF Program) commencing in August 2011, as
previously reported on Form 8-K.
Total assets
were approximately $1.01 billion at December 31, 2011, an increase of $55
million or 6 percent above December 31, 2010. Asset growth occurred primarily
in the commercial loan portfolio and, to a lesser degree, the investment
securities portfolio. Asset growth was funded by an increase in core deposits
and, to a lesser degree, an $8 million addition, net of the redemption of the
CPP Series A preferred stock and warrant, to capital obtained from the SBLF
Program.
Annual cash
dividends per common share totaled $0.334, as adjusted, for 2011, compared to
$0.238, as adjusted, for 2010.
A more
detailed analysis of the factors and trends affecting earnings follows.
INCOME STATEMENT ANALYSIS
Net Interest Income
The
Corporations principal source of revenue is net interest income, which is the
difference between interest income earned on loans and investment securities,
and interest expense incurred on deposits and borrowed funds. Fluctuations in
net interest income are caused by changes in interest rates, volumes and the
composition or mix of interest rate sensitive assets and liabilities. Unless
otherwise noted, the discussion that follows is based on interest income and
interest expense as reported in the consolidated statements of income, not on a
tax equivalent basis.
Net interest
income for the year 2012 totaled $35,985,000, an increase of $2,933,000 or 9
percent above the year 2011. The increase was primarily the result of an
increase in the average volume of interest earning assets and a decrease in the
average rate paid on deposits. Net interest income (tax equivalent basis) as a
percentage of interest earning assets, i.e., net interest margin, was 3.81
percent for the year 2012, compared to 3.73 percent for the year 2011.
The $1,101,000
or 2 percent increase in total interest income for the year 2012, compared to
the year 2011, was due primarily to an increase in the average volume of
interest earning assets. Interest earning assets averaged $981 million and
yielded 4.89 percent (tax equivalent basis) for 2012, compared to $925 million
and 5.07 percent, respectively, for the year 2011. The $56 million or 6 percent
increase in the average volume of interest earning assets, which more than
offset the decrease in the average yield, was due primarily to an increase in
commercial loans.
The $1,832,000
or 15 percent decrease in total interest expense for the year 2012, compared to
the year 2011, resulted from a larger proportion of low cost core deposits to
total deposits and lower rates generally paid on all deposit products, which
reflected historically low market interest rates. Total interest bearing
liabilities averaged $854 million at an average rate of 1.23 percent for 2012,
compared to $824 million and 1.50 percent, respectively, for the year 2011. The
$30 million or 4 percent increase in the average volume of interest bearing
liabilities reflected growth in core deposits, principally money market
deposits. Additionally, the average volume of noninterest bearing demand
deposits increased by $10 million or 15 percent for 2012, compared to the year
2011. The Corporation defines core deposits as all deposits except certificates
of deposit (i.e., time deposits).
Comparatively,
for 2011, net interest income totaled $33,052,000, an increase of $2,179,000 or
7 percent above 2010. The increase was primarily the result of an increase in
the average volume of interest earning assets, a decrease in the average volume
of long-term debt and a decrease in the average rate paid on deposits. The net
interest margin was 3.73 percent for 2011, compared to 3.72 percent for 2010.
Interest
earning assets averaged $925 million and yielded 5.07 percent (tax equivalent
basis) for 2011, compared to $868 million and 5.24 percent, respectively, for
2010. The $57 million or 7 percent increase in average interest earning assets
was due primarily to an increase in investment securities and secondarily to an
increase in commercial loans. The increase in the average volume of earning
assets more than offset the decrease in the average yield, which reflected the
low level of market interest rates.
Total interest
bearing liabilities averaged $824 million at an average rate of 1.50 percent
for 2011, compared to $779 million and 1.69 percent, respectively, for 2010.
The $45 million or 6 percent increase in average interest bearing liabilities
reflected growth in all deposit categories, which more than offset a decrease
in long-term debt. Interest expense on deposits for 2011 was $241 million or 2
percent below 2010 as the favorable impact of low product rates and deposit mix
largely offset the effect of the increase in average volume. Interest expense
on long-term debt decreased for 2011, compared to 2010, due primarily to volume
as maturing Federal Home Loan Bank loans, with relatively high interest rates,
were selectively not refinanced.
Tables 1 and 2
are presented on a tax equivalent basis to make it easier to compare taxable
and tax-exempt assets. Income from tax-exempt assets, primarily loans to or
securities issued by state and local governments, is increased by the amount of
federal income taxes which would have been incurred if the income was taxable
at the rate of 34 percent.
Table 1-Average Balances and
Interest Rates (tax equivalent basis)
2012
2011
2010
(dollars
in thousands)
Average
Balance
Interest
Yield/
Rate
Average
Balance
Interest
Yield/
Rate
Average
Balance
Interest
Yield/
Rate
Assets
Interest bearing deposits with banks
$
37,101
$
94
0.25
%
$
27,297
$
66
0.24
%
$
24,452
$
64
0.26
%
Federal funds sold
0
0
0.00
674
2
0.30
2,935
9
0.31
Investment securities:
Taxable
145,357
3,381
2.33
150,529
3,830
2.54
117,439
3,361
2.86
Tax-exempt
84,357
3,587
4.25
79,577
3,581
4.50
75,217
3,590
4.77
Total investment securities
229,714
6,968
3.03
230,106
7,411
3.22
192,656
6,951
3.61
Loans:
Taxable (1)
700,915
40,096
5.72
651,604
38,485
5.91
633,192
37,540
5.93
Tax-exempt
13,150
770
5.86
14,891
887
5.96
14,647
905
6.18
Total loans
714,065
40,866
5.72
666,495
39,372
5.91
647,839
38,445
5.93
Total earning assets
980,880
47,928
4.89
924,572
46,851
5.07
867,882
45,469
5.24
Other assets (2)
60,431
60,143
53,870
Total assets
$
1,041,311
$
984,715
$
921,752
Liabilities and Shareholders Equity Deposits:
Interest bearing demand
$
336,077
1,335
0.40
%
$
305,982
1,937
0.63
%
$
263,381
2,015
0.77
%
Savings
33,516
84
0.25
29,442
108
0.37
26,870
107
0.40
Time
427,536
8,196
1.92
429,213
9,111
2.12
413,752
9,275
2.24
Total interest bearing deposits
797,129
9,615
1.21
764,637
11,156
1.46
704,003
11,397
1.62
Short-term borrowings
20,843
122
0.59
11,553
114
0.99
8,803
88
1.00
Long-term and junior subordinated debt
36,212
790
2.18
47,459
1,089
2.29
66,421
1,669
2.51
Total interest bearing liabilities
854,184
10,527
1.23
823,649
12,359
1.50
779,227
13,154
1.69
Noninterest bearing deposits
82,008
71,621
61,372
Other liabilities
6,727
5,137
4,731
Shareholders equity
98,392
84,308
76,422
Total liabilities and
shareholders equity
$
1,041,311
$
984,715
$
921,752
Net interest income
$
37,401
$
34,492
$
32,315
Net interest margin (3)
3.81
%
3.73
%
3.72
%
(1)
Average
balance includes average nonaccrual loans of $11,538,000 in 2012, $16,550,000
in 2011, and $17,242,000 in 2010. Interest includes net loan fees of
$1,060,000 in 2012, $941,000 in 2011, and $1,060,000 in 2010.
(2)
Average
balance includes average bank owned life insurance, foreclosed real estate
and unrealized holding gains (losses) on investment securities.
(3)
Net interest
income as a percentage of average earning assets.
Table 2-Rate/Volume Analysis of Changes in
Net Interest Income (tax equivalent basis)
2012 vs. 2011
Increase (decrease) due
To change in
2011 vs. 2010
Increase (decrease) due
To change in
(dollars in thousands)
Volume
Rate
Net
Volume
Rate
Net
Interest
Income
Interest bearing deposits with banks
$
23
$
5
$
28
$
7
$
(5
)
$
2
Federal funds sold
(2
)
0
(2
)
(7
)
0
(7
)
Investment securities:
Taxable
(118
)
(331
)
(449
)
947
(478
)
469
Tax-exempt
215
(209
)
6
208
(217
)
(9
)
Loans:
Taxable
3,455
(1,844
)
1,611
1,092
(147
)
945
Tax-exempt
(104
)
(13
)
(117
)
15
(33
)
(18
)
Total interest income
3,469
(2,392
)
1,077
2,262
(880
)
1,382
Interest
Expense
Deposits:
Interest bearing demand
188
(790
)
(602
)
326
(404
)
(78
)
Savings
15
(39
)
(24
)
10
(9
)
1
Time
(36
)
(879
)
(915
)
347
(511
)
(164
)
Short-term borrowings
92
(84
)
8
27
(1
)
26
Long-term and junior subordinated debt
(267
)
(32
)
(299
)
(476
)
(104
)
(580
)
Total interest expense
(8
)
(1,824
)
(1,832
)
234
(1,029
)
(795
)
Net interest income
$
3,477
$
(568
)
$
2,909
$
2,028
$
149
$
2,177
Changes which
are due to both volume and rate are allocated in proportion to their
relationship to the amount of change attributed directly to volume or rate.
Provision for loan losses
The provision
for loan losses is an expense charged to earnings to cover estimated losses
attributable to uncollectible loans. The provision reflects managements
judgment of an appropriate level for the allowance for loan and lease losses.
The Risk Management section of this report, including Tables 10 Nonperforming
Assets, 11 Analysis of Allowance for Loan and Lease Losses, and 12
Allocation of Allowance for Loan and Lease Losses, provides detailed
information about the allowance, provision and credit risk.
For 2012, the
provision for loan losses was $1,750,000, compared to $4,935,000 for 2011 and
$2,990,000 for 2010. The decrease in the provision for the year 2012 reflected
improved credit quality and a decrease in net charge-offs on loans compared to
the prior two years. The provision for the year 2011 was unusually high, the
result of two unrelated partial loan charge-offs totaling $3,175,000 as
reported on a Form 8-K filed October 3, 2011 and a Form 8-K/A filed on November
10, 2011. The provision for loan losses for all three periods presented
remained elevated in comparison to the Corporations historic levels and was
reflective of the risks and uncertainties associated with prolonged weakness in
economic and business conditions, a relatively high level of unemployment and
erosion of real estate values. These factors can adversely affect our
borrowers ability to service their loans.
The following
table presents the components of total noninterest income for each of the past
three years.
Table 3-Noninterest Income
(dollars
in thousands)
2012
2011
2010
Trust and
investment services fees
$
1,702
$
1,510
$
1,420
Income from
mutual fund, annuity and insurance sales
896
1,103
1,477
Service
charges on deposit accounts
2,560
2,583
2,471
Income from
bank owned life insurance including death benefits
633
647
637
Other income
645
613
601
Net gain on
sales of loans held for sale
1,327
777
860
Net gain on
sales of securities
427
125
108
Total noninterest income
$
8,190
$
7,358
$
7,574
For 2012, the
overall $832,000 or 11 percent increase in total noninterest income, compared
to 2011, was primarily the result of increases in net gain on sales of loans
held for sale and trust and investment services fees. The increase in net gain
on sales of securities also contributed to the increase in noninterest income.
Core noninterest income, which excludes the net gain on sales of securities,
increased $530,000 or 7 percent for the year 2012, compared to the year 2011.
The discussion that follows addresses changes in selected categories of noninterest
income.
Trust
and investment services feesIncreases in this
category of noninterest income for 2012 and 2011 were primarily the result of
appreciation in market value of managed accounts, upon which some fees are
based, and growth in traditional trust business.
Income
from mutual fund, annuity and insurance sales For
2012, the $207,000 or 19 percent decrease in income from mutual fund, annuity
and insurance sales compared to 2011 was due to a decrease in sales, which
reflected market uncertainty and the relative unattractiveness of variable
annuities due to low rates and less favorable structures. The decrease in
income for 2011, compared to 2010, was also the result of a decrease in sales
which reflected the resignation of four registered representatives who left
Codorus Valley Financial Advisors (CVFA), a subsidiary of PeoplesBank, in
February 2011.
Service
charges on deposit accounts For 2012, service
charges on deposit accounts decreased slightly compared to the year 2011 due
primarily to a decrease in overdraft fees. Overdraft fee income on consumer
accounts enrolled in PeoplesBanks automated overdraft payment program, which
is a significant component of service charges, decreased in response to the
implementation of FDIC guidance on July 1, 2011, which effectively restricted
overdraft pricing policies. The increase in service charge income for 2011,
compared to 2010, was primarily the result of an increase in debit card
revenue, which reflected an increase in the volume of transactions.
Income
from bank owned life insurance (BOLI)Income from
BOLI for the three years presented was basically flat as low market interest
rates depressed yields. This investment provides a competitive tax-free return
to the Corporation while providing a life insurance benefit to the management
team.
Note: On February 6, 2013,
PeoplesBank purchased $5.3 million of BOLI. Of this total $4.7 million was
invested with Massachusetts Mutual Life Insurance Company and $0.6 million was
invested with Midland
National Life Insurance Company. The tax-exempt yield is approximately 3.77
percent or 5.71 percent on a taxable equivalent basis.
Other income
Other income, comprised of many underlying fees, increased as a result of
normal business growth over the three year period presented. The increase in
2012, compared to 2011, also reflected a $53,000 increase in revenue from loan
settlement services provided by SYC Settlement Services, Inc., a PeoplesBank
subsidiary. The other income category includes wire transfer fees, credit card
merchant fees, automated teller machine fees, safe deposit box fees and
miscellaneous fees, among others.
Net gain on sales of
loans held for sale For 2012, the $550,000 or 71
percent increase in net gain on sales of loans held for sale, compared to the
year 2011, was due primarily to an increase in the volume of residential
mortgage loan sales. The unusually low level of market interest rates that
prevailed throughout the year 2012, which were influenced by the Federal Reserve
Bank to stimulate the U.S. economy, resulted in a sharp increase in residential
mortgage loan refinancings. For 2011, the decrease in net gain compared to the
year 2010 reflected a decrease in the volume of sales and a decrease in pricing
from secondary market sources.
Net gain on sales of
securitiesFor 2012, the net gain totaling
$427,000 was primarily the result of sales of U.S. agency mortgage-backed
securities (MBS) that were selectively sold to remove relatively low yielding
instruments that were prepaying principal faster than anticipated and small
odd-lot securities from the MBS portfolio.
Noninterest expense
The following
table presents the components of total noninterest expense for each of the past
three years.
Table 4-Noninterest Expense
(dollars
in thousands)
2012
2011
2010
Personnel
$
15,312
$
13,748
$
13,276
Occupancy of premises, net
1,977
2,004
1,926
Furniture and equipment
1,896
1,730
1,670
Postage, stationery and supplies
508
519
516
Professional and legal
534
586
488
Marketing and advertising
907
840
700
FDIC insurance
733
1,004
1,297
Debit card processing
707
655
585
Charitable donations
640
396
523
Telephone
532
509
560
External data processing
560
462
431
Foreclosed real estate including (gains)
losses on sales
2,830
1,701
3,275
Impaired loan carrying costs
299
620
972
Other
2,493
2,305
1,897
Total noninterest expense
$
29,928
$
27,079
$
28,116
Total
noninterest expense for the year 2012 increased $2,849,000 or 11 percent above
the year 2011 due primarily to increases within the personnel and foreclosed
real estate expense categories.
Planned franchise
expansionPlans call for the construction of a
full-service branch office in Dover, PA on a building lot purchased by
PeoplesBank in October of 2012. The new office with a planned staff size of
five people has all necessary regulatory approvals and is expected to be
operational by the fall of 2013. Additionally, management is seeking regulatory
approval to establish a full-service branch office in Hanover, PA. The branch
will be operated out of leased office space and, subject to regulatory
approval, is scheduled to be operational in May 2013. Branch office expansion
is expected to increase noninterest expenses such as personnel, occupancy,
furniture and equipment, and marketing, among other expenses.
The discussion
that follows addresses changes in selected noninterest expense categories.
PersonnelPersonnel
expense is comprised of wages, sales commissions, payroll taxes and employee
benefits, such as medical insurance and 401K plans. The $1,564,000 or 11
percent increase in personnel expense for 2012, compared to 2011, was
attributable to normal business growth, which included the full years impact
of a branch office addition in September 2011, increased sales commissions for
mortgage originators which resulted from increased production, and the accrual
of annual performance incentives. Comparatively, the $472,000 or 4 percent
increase in personnel expense for 2011, compared to 2010, was also attributable
to normal business growth, which included a partial years impact for the
aforementioned branch office addition. The rate of increase in personnel
expense for the year 2011 was limited by the decrease in wages caused by the
resignation of four registered representatives and an office manager who left
PeoplesBank subsidiary CVFA in February 2011.
Effective
August 1, 2010, PeoplesBank converted from a fully insured health care program
to a self-insured program by joining a consortium of approximately 30 banks.
Employees have customarily reimbursed the Corporation for approximately 30
percent of the cost of health insurance. For the year 2012, compared to the
year 2011, the cost of the self-insured program decreased approximately
$122,000 or 11 percent due to a decrease in claims expense and a decrease in
the insured pool as a result of program changes.
Occupancy of
premises, net Occupancy of premises expense is
comprised of rent, depreciation, maintenance, insurance, real estate taxes and
utilities. The level of expense can vary annually based upon franchise
expansion, repairs and maintenance, and normal business growth. Examples of
franchise expansion include the addition of a branch banking office in 2011 and
the relocation of an existing branch banking office during 2010 to a more
favorable site.
Furniture and
equipmentThis category includes depreciation
expense on furniture and equipment, including IT-related equipment, and the
cost of computer hardware and software maintenance contracts among other
expenses. The upward trend in this expense category reflects normal business
growth, including price increases, IT initiatives such as CRM (described below)
and the addition of a branch banking office in 2011.
During the
third quarter of 2010, PeoplesBank began implementing a client relationship
management (CRM) system, which, in addition to computer hardware, is comprised
of two main components, sales and service software and teller software. Sales
and service software, the primary component, became operational in December
2011, and began depreciation at that time over a five-year estimated useful
life. The teller software component, which will be phased in by individual
branch office, is expected to be fully operational by the fall of 2013. The
capital outlay for this project is estimated at $625,000, which does not
include staffing and other ancillary expenses. A properly managed CRM process
is expected to improve the Corporations competitiveness and client service and
retention.
Professional and
legalThe level of professional and legal expense
can vary annually based on the varying needs for legal, accounting and
consulting services, which is driven in part by the level of routine lawsuits
in the ordinary course of business, the number and complexity of corporate
initiatives, and changes in regulatory compliance requirements.
Marketing and
advertisingExpense for the three years presented
shows an upward trend that reflects an increased operating budget to support
normal business growth and increased corporate initiatives such as branding,
product advertising and internal promotions.
FDIC insuranceExpense
for the three years presented shows a downward trend, which reflects a decrease
in the assessment rate. The decrease in the assessment rate was due to
PeoplesBanks improved financial performance and a change in the methodology
for calculating insurance premiums by the FDIC. Effective April 1, 2011, the
FDIC lowered assessment rates and applied them against average assets minus
average tangible capital, instead of domestic deposits. More information about
FDIC insurance assessments is available under the Supervision and Regulation
section of this report (reference the subheading-FDIC).
Debit card
processingExpense for the three years presented
shows an upward trend, which reflects increases in the number of new accounts
and transaction volume. This expense category also includes the cost of
operating automated teller machines.
Charitable donations
The level of charitable donations, principally educational and scholarship
donations, is based, in part, upon whether or not PeoplesBank can obtain
related state tax credits if available from nonprofit organizations.
Accordingly, the level of charitable donations can vary from year to year. For
example, the decrease in charitable donations for 2011 resulted from the denial
or delay of tax credits by the state of Pennsylvania for educational donations
due to budgetary constraints. PeoplesBank uses state tax credits from donations
to reduce its Pennsylvania Shares Tax expense, included below in other
expenses.
Foreclosed real
estate including (gains) losses on salesNet
foreclosed real estate expense is comprised of impairment losses, including
losses on sales, and carrying costs, net of gains from sales and income
generated by the real estate. Typical carrying costs include insurance,
maintenance and repairs, real estate taxes, appraisals and legal fees. Net
foreclosed real estate expense remained elevated for the three years presented
due to the level of carrying costs and impairment losses from deterioration of
property values associated with specific properties as well as the size of the
portfolio, which was reflective of prolonged weakness in economic and business
conditions and the erosion of real estate values. Real estate expense for the
year 2012 increased $1,129,000 or 66 percent compared to the year 2011 as a
result of increased provisioning for impairment losses, including the
$1,027,000 provision related to a foreclosed property, as previously reported
on Form 8-K dated August 30, 2012 and filed with the SEC. For the year 2011,
foreclosed real estate expense decreased $1,574,000 or 48 percent, compared to
the year 2010, due in part to the recognition of rental income totaling
$868,000 from a real estate project and a decrease in the provision for real
estate losses. For the year 2011, the provision for real estate losses totaled
$829,000, compared to $1,566,000 for 2010.
Impaired loan
carrying costs The prolonged weakness in economic
and business conditions may cause fluctuations in impaired loan carrying costs.
Factors such as the number and size of the loans in the impaired loan
portfolio, financial capacity of the borrower or guarantor, value and liquidity
of underlying collateral and the timing of when and for how long loans are
classified as impaired, among other factors, contribute to the variability of
this expense from period to period. Carrying costs are the same as those
described for foreclosed real estate.
OtherOther
expense is comprised of many underlying expenses, including, but not limited
to: Pennsylvania shares tax, memberships and subscriptions, director fees,
liability insurance, third-party courier, correspondent banking expenses and
miscellaneous operating losses. For the year 2012, the $188,000 or 8 percent
increase in the other expense category above the year 2011 reflected a
nonrecurring charge-off of the unamortized balance of an intangible asset
totaling $163,000. Varying levels of Pennsylvania shares tax expense, which
reflected varying levels of state tax credits that originated from charitable donations
(as described earlier) can cause annual variances in the other expense
category. For example, shares tax, net of credits, totaled $306,000 for 2012,
compared to 392,000 for 2011 and $229,000 for 2010. The upward trend in the
other expense category for the three year period presented also reflects normal
business growth.
Provision for income
taxes
The provision
for income tax for year 2012 was $3,103,000, compared to a $1,617,000 for 2011.
The increase in income tax was primarily the result of an increase in pretax
income. For both periods, the Corporations statutory federal income tax rate
was 34 percent. The Corporations effective income tax rate was approximately
24.8 percent for 2012, compared to 19.3 percent for 2011. The effective tax
rate differs from the statutory tax rate due to the impact of low-income
housing credits and tax-exempt income, including income from bank owned life
insurance.
Preferred stock
dividends and discount accretion
Preferred
stock dividends for the year 2012 totaled $384,000, compared to preferred stock
dividends and discount accretion totaling $1,460,000 for the year 2011. The
$1,076,000 or 74 percent decrease was a result of a decrease in the dividend
rate on preferred stock caused by the addition of loans above a predetermined
baseline portfolio balance that qualified for the U.S. Treasurys Small
Business Lending Program. Also, the accretion of discount is no longer
applicable in 2012 as a result of the redemption of preferred stock issued
under the Treasurys Capital Purchase Program in 2011. Information about U.S.
Treasury capital programs is provided in Note 10Shareholders Equity of this
report.
BALANCE SHEET REVIEW
Interest bearing
deposits with banks
Interest
bearing deposits with banks totaled $35 million on December 31, 2012, compared
to $20 million on December 31, 2011. The level of interest bearing deposits can
vary significantly based on the timing and magnitude of investment
opportunities and funding.
Securities,
available-for-sale
The investment
securities portfolio is an interest earning asset, second in size to the loan
portfolio. Investment securities serve as an important source of revenue and
liquidity. They also serve as collateral for public and trust deposits,
securities sold under agreements to repurchase and to support borrowings. The
investment securities portfolio is managed to comply with the Corporations
Investment Securities Policy, and accounted for in accordance with FASB ASC
Topic 320. Decisions to purchase or sell securities are based on an assessment
of current economic and financial conditions, including the interest rate
environment, the demand for loans, and liquidity and income requirements. Table
5Investment Securities, shows the amortized cost and fair value by type of
security for three year-end periods.
At December
31, 2012, the fair value of the securities, available-for-sale totaled $234
million, approximately the same level as December 31, 2011. Throughout the year
2012, cash inflows from maturities and repayments, and the proceeds from sales
of securities were reinvested back into the investment securities portfolio.
Approximately $17 million of U.S. agency mortgage-backed securities (MBS) were
selectively sold to remove relatively low yielding instruments that were
prepaying faster than anticipated and small odd-lot securities from the MBS
portfolio. The sales of MBS during the year 2012 resulted in the realization of
net gains totaling $427,000. During the year 2011, PeoplesBank took advantage
of the low interest rate environment and sold selected securities, which
generated net gains of $125,000 that were recognized in income. Included in the
net gains for 2011 was an $18,000 loss associated with the sale of eleven
municipal bonds totaling approximately $5 million (par value) that no longer
met the Corporations investment standards.
Securities,
available-for-sale are generally comprised of high quality debt instruments.
Included in Table 5 are investments in the obligations of states and
municipalities. During the fourth quarter of 2010 bonds issued by states and
municipalities received negative national press because of widespread budget
deficits and, by implication, the possibility of default. We believe that
selected investment in municipal bonds is a sound investment practice.
Municipalities have many options for meeting their debt obligations, including
decreasing costs and service levels, imposing taxes and selling assets. In many
cases, municipal debt issues are insured or, in the case of school districts of
selected states, backed by specific reserves, which provide a layer of
protection to the investor. Access to the credit market and a good credit
rating are high priorities of municipal management enabling it to meet its
current and future funding needs at a reasonable interest cost. For these
reasons, defaults on municipal bonds are very low, well below 1 percent. With
the exception of an approximately $14 million portfolio (fair value) of Texas
municipal utility district bonds, which has its own criteria for investment,
the remaining municipal bonds are almost all rated A or above by at least one
national statistical rating organization at December 31, 2012. The majority of
bonds in our portfolio are general obligation bonds, which can draw upon
multiple sources of revenue, including taxes, for payment. Only a few bonds are
revenue bonds, which are dependent upon a single revenue stream for payment,
but they are for critical services such as water and sewer. Many of the
municipal holdings are also insured or backed by specific school district loss
reserves.
On January 1,
2013, provision 939(a) of the Dodd-Frank Act becomes effective, which changes
the definition of investment grade by removing reliance on credit ratings by
national statistical rating organizations. Investment grade under the revised
definition requires an active review ( i.e., pre-purchase and post-purchase
credit risk analysis) of the obligor to determine that the obligor has an
adequate capacity to meet its financial commitments and more specifically that
the risk of default is low and that full and timely repayment of principal and
interest is expected. Obligations of the U.S. government and U.S. government
sponsored enterprises are not subject to the due diligence requirement; however,
municipal and corporate obligations are subject to the new requirement.
Table
6Securities Maturity Schedule, shows that the available-for-sale portfolio had
a yield of 3.14 percent on December 31, 2012. Comparatively, the portfolio
yield was 3.48 percent on December 31, 2011. The decrease in portfolio yield
for 2012 was the result of security additions, including the reinvestment of
cash inflows from scheduled maturities and repayments of mortgage-backed bonds,
during a period of unusually low market interest rates and asset yields. More
information about investment securities is provided in Note 3-Securities in the
notes to the consolidated financial statements.
(1) Weighted
average yields (tax equivalent basis) were calculated on the amortized cost
basis.
(2) U.S.
agency mortgage-backed securities are included in the maturity categories
based on average expected life.
Restricted investment
in bank stocks
At December
31, 2012, PeoplesBank held $2,863,000 in restricted common stock, compared to
$3,635,000 at year-end 2011. Investment in restricted stock is a condition of
obtaining credit from the Federal Home Loan Bank of Pittsburgh (FHLBP) and the
Atlantic Central Bankers Bank (ACBB) organizations. Of the total, $2,788,000
consisted of stock issued by the FHLBP and $75,000 issued by the ACBB.
Information about impairment considerations for restricted stock is provided in
Note 1Summary of Significant Accounting Policies in the notes to the
consolidated financial statements.
The FHLBP
resumed the payment of quarterly cash dividends in the fourth quarter of 2011
after a period of suspension since December 2008. The quarterly dividend rate
is based on the average 3-month LIBOR. The annualized percentage for the fourth
quarter of 2012 is 0.32 percent. The FHLBP reported that it will continue to
monitor the condition of its private-label residential mortgage-back securities
portfolio, its overall financial performance and retained earnings,
developments in the mortgage and credit markets, and other relevant information
as the basis for determining the status of dividends and excess capital stock
repurchases in future quarters.
Loans held for sale
On December
31, 2012, loans held for sale were approximately $3.1 million, compared to $2.9
million at year-end 2011. For both years PeoplesBanks mortgage banking staff
remained focused on originating and selling residential mortgages without
retaining servicing rights. The unusually low level of market interest rates
that prevailed throughout the year 2012, which were influenced by the Federal
Reserve Bank in its continuous efforts to stimulate the U.S. economy, resulted
in a sharp increase in residential mortgage loan
refinancings and sales. As a result, the level of net gain on sales of loans
held for sale for the year 2012 increased $550,000 or 71 percent above the year
2011.
On December
31, 2012, total loans, net of deferred fees, totaled approximately $737
million, an increase of $44 million or 6 percent above year-end 2011. Most of
the increase was due to a $42 million or 7 percent increase in commercial
loans, which reflected increased demand, in spite of a continuation of adverse
economic conditions and depressed real estate markets, and our ability to
acquire business from competitors based on our reputation for client service
and competitive prices. The composition of the Corporations loan portfolio at
December 31, 2012 and 2011 is provided in Note 4Loans in the notes to the
consolidated financial statements. The average yield (tax equivalent basis)
earned on total loans was 5.72 percent for 2012, compared to 5.91 percent for
2011. Table 7 presents the composition of total loans for five year-end
periods.
Table
7-Loan Portfolio Composition
December 31,
(dollars in thousands)
2012
%
2011
%
2010
%
2009
%
2008
%
Commercial, financial and
agricultural
$
510,544
69.2
$
462,061
66.6
$
419,649
65.5
$
415,404
64.3
$
348,111
60.7
Real estate - construction
and land development
96,936
13.2
103,514
14.9
95,735
14.9
104,986
16.3
100,088
17.5
Total commercial related loans
607,480
82.4
565,575
81.5
515,384
80.4
520,390
80.6
448,199
78.2
Real estate - residential
mortgages
23,511
3.2
21,324
3.1
20,357
3.2
22,270
3.4
18,154
3.2
Consumer and home equity
106,143
14.4
106,616
15.4
105,108
16.4
103,217
16.0
106,725
18.6
Total consumer related loans
129,654
17.6
127,940
18.5
125,465
19.6
125,487
19.4
124,879
21.8
Total loans
$
737,134
100.0
$
693,515
100.0
$
640,849
100.0
$
645,877
100.0
$
573,078
100.0
Table 8 shows
that, at December 31, 2012, the commercial loan portfolio was comprised of approximately
$356 million or 59 percent in fixed rate loans and $252 million or 41 percent
in floating rate loans, which was the same mix on December 31, 2011. Floating
rate loans reprice periodically with changes in the Wall Street Journal (WSJ)
prime rate or LIBOR. Additional loan information can be found in Note 4Loans
in the notes to the consolidated financial statements and within the Risk
Management section of this report.
Table
8-Selected Loan Maturities and Interest Rate Sensitivity
On December
31, 2012, other assets totaled approximately $31 million, compared to $44
million on December 31, 2011. Other assets were primarily comprised of
foreclosed real estate and investments in bank owned life insurance (BOLI).
Foreclosed real estate, net of allowance, totaled $3.6 million at year-end
2012, compared to $16.2 million at year-end 2011. Foreclosed real estate is
discussed in the Nonperforming Assets section of this report. Investments in
life insurance relates to a select group of employees and directors whereby
PeoplesBank is the owner and beneficiary of the policies. These investments,
carried at the cash surrender value of the underlying policies, totaled $15.5
million at year-end 2012, compared to $14.8 million at year-end 2011. Other assets
also includes lesser amounts for interest receivable on loans and investment
securities, net deferred tax assets, prepaid FDIC deposit insurance and an
investment in a real estate partnership that provides low cost housing to
income qualified families. Additional information about these assets can be
found in Note 1Summary of Significant Accounting Policies in the notes to the
consolidated financial statements under the appropriate subheadings.
Note: As a
revenue raising strategy, PeoplesBank purchased $5.3 million of BOLI on
February 6, 2013. Of this total, $4.7 million was invested with Massachusetts
Mutual Life Insurance Company and $0.6 million was invested with Midland
National Life Insurance Company. The selection of these insurers was based on their
high credit rating and reputation, competitive tax-exempt yield and to
accomplish diversification among insurers for the BOLI portfolio. The level of
BOLI investment, including the $5.3 million addition, is estimated at 20
percent of PeoplesBanks Tier 1 capital, excluding unrealized gains (losses) on
available-for-sale securities, at December 31, 2012, which is well within
PeoplesBanks investment limitation of 25 percent of Tier 1 capital.
Funding
Deposits
Deposits are
the principal source of funding for earning assets. On December 31, 2012, total
deposits were $901 million, an increase of $47 million or 5 percent over
year-end 2011. The increase in total deposits occurred primarily within the
money market and demand categories. In contrast, total time deposits decreased
$16 million or 4 percent in response to our clients apparent preference for
liquidity. The average rate paid on interest bearing deposits was 1.21 percent
for 2012, compared to 1.46 percent for 2011, which reflected the historically low
level of market interest rates. The composition of the Corporations deposit
portfolio at December 31, 2012 is provided in Note 7-Deposits in the notes to
the consolidated financial statements. On December 31, 2012, the balance of
certificates of deposit with a balance of $100,000 and above was $175 million.
Of this total, $18 million mature within three months, $24 million mature after
three months but within six months, $34 million mature after six months but
within twelve months, and the remaining $99 million mature beyond twelve
months.
Short-term borrowings
Short-term
borrowings consist of securities sold under agreements to repurchase (repo
agreements), federal funds purchased and other borrowings as described more
fully in Note 8-Short-term borrowings and Long-term Debt to the consolidated
financial statements. On December 31, 2012 and 2011, short-term borrowings,
comprised solely of repo agreements, totaled $19.4 million and $10.3 million,
respectively.
Long-term debt
is a secondary funding source for asset growth. On December 31, 2012, long-term
debt totaled $30.8 million, compared to $46.6 million at year-end 2011. The
decrease was attributable to payments for maturing FHLBP loans throughout 2012
that were not refinanced. Generally, funds for the payment of long-term debt
come from operations. On December 31, 2012, total unused credit with the FHLBP
was approximately $166 million. Obligations to the FHLBP are secured by FHLBP
stock and qualifying collateral, principally real estate secured loans and
selected investment securities.
In June 2012,
the Corporation restructured (i.e., extended) two outstanding $5 million FHLBP
advances ($10 million total) to lock in low rates as a hedge against the
possibility of rising market interest rates in the future. This transaction
resulted in a $235,000 prepayment penalty that has been deferred and embedded
in the rates on the restructured advances where it will be recognized as
interest expense over their respective repayment terms. The $5 million FHLBP
advance originally maturing December 2013 with a fixed rate of interest of 2.39
percent was extended to June 2019 with a fixed rate of interest of 2.10
percent. The $5 million FHLBP advance originally maturing July 2014 with a
fixed rate of interest of 1.38 percent was extended to June 2018 with a fixed
rate of interest of 1.87 percent. The impact of the debt restructure on current
period earnings is immaterial.
A listing of
outstanding long-term debt obligations is provided in Note 8-Short-term
Borrowings and Long-term Debt in the notes to the consolidated financial
statements.
Shareholders equity
and capital adequacy
Shareholders
equity or capital enables the Corporation to maintain asset growth and absorb
losses. Capital adequacy can be affected by a multitude of factors, including
profitability, corporate expansion, balance sheet growth, dividend policy and
regulatory mandates, among others. Total shareholders equity was $101.3
million on December 31, 2012, compared to $93.2 million at year-end 2011. The
increase in equity was the result of an increase in retained earnings from
profitable operations.
Dividends on preferred stock
As previously
disclosed, the Corporation participates in the U.S. Department of the
Treasurys (Treasury) Small Business Lending Fund Program (SBLF Program). Under
this program, the Corporation issued $25 million, or 25,000 shares of
non-cumulative, perpetual preferred stock, Series B, $1,000 liquidation value,
$2.50 par value to the Treasury. The SBLF preferred stock qualifies as Tier 1
regulatory capital and requires the payment of non-cumulative cash dividends
quarterly on each January 1, April 1, July 1 and October 1. The annualized
dividend rate in effect on December 31, 2012 was 1 percent, compared to 5 percent
on December 31, 2011. At inception of the SBLF Program (August 18, 2011) the
dividend rate was initially set at 5 percent, but can vary from 1 percent to 5
percent on a quarterly basis through September 30, 2013, to reflect the amount
of change in qualified small business lending compared to a baseline amount. On
September 30, 2013, the dividend rate becomes fixed at the then prevailing rate
for the remaining two and one half years of the initial four and one half year
phase of the SBLF Program. After four and one half years from issuance the
dividend rate will increase to 9 percent.
Dividends on common stock
The
Corporation typically pays cash dividends on its common stock on a quarterly
basis. The Board of Directors determines the dividend rate after considering
the Corporations capital requirements, current and projected net income, and
other factors. Annual cash dividends per common share totaled $0.382 for 2012,
compared to $0.334 for 2011, as adjusted for the 5 percent common stock
dividend described below. On
January 8, 2013, the Board declared a regular cash dividend of $0.11 per common
share, payable on February 12, 2013, to shareholders of record on January 22,
2013.
Periodically,
the Corporation distributes stock dividends on its common stock. On October 9,
2012, the Corporation declared a 5 percent common stock dividend distributable
on December 11, 2012, to shareholders of record at the close of business on
October 23, 2012. Distribution of this common stock dividend resulted in the issuance
of 211,564 additional common shares.
Compensation plans
As disclosed
in this report, the Corporation maintains various employee, director and
shareholder benefit plans that could result in the issuance of its common stock
or affect its earnings. Information regarding these plans can be found in Note
11-Benefit Plans and Note 12-Stock-Based Compensation in the notes to the
consolidated financial statements.
Preferred and common stock
Information
pertaining to preferred and common stock issued by the Corporation is disclosed
in Note 10Shareholders Equity in the notes to the consolidated financial
statements.
Capital ratios
The
Corporation and PeoplesBank are subject to various regulatory capital
requirements administered by banking regulators that involve quantitative
guidelines and qualitative judgments. Quantitative measures established by
regulators pertain to minimum capital ratios, as set forth in Table 9. The
table provides a comparison of the Corporations and PeoplesBanks risk-based
capital ratios and leverage ratios to the minimum regulatory requirement for
the periods indicated.
On June 18,
2012, the federal regulatory agencies jointly issued a Notice of Proposed
Rulemaking that would revise the general risk-based capital rules to incorporate
certain revisions by the Basel Committee on Banking Supervision to the Basel
capital framework (i.e., Basel III). Generally, the proposed rule revises the
definition of regulatory capital components and related calculations, adds a
new common equity tier 1 capital ratio, implements a new capital conservation
buffer, increases the risk weighting for residential mortgages and past due
loans, and provides a transition period for several aspects of the proposed
rule. The standards set forth in the proposed rule would require bank holding
companies and their bank subsidiaries to maintain substantially more capital,
with a greater emphasis on common equity. Subsequent to the review and comment
period on the proposal which ended October 22, 2012, the banking regulators
announced that the project was being delayed. The timing for adoption of final
rules to implement the Basel III capital framework is uncertain. Accordingly,
final rules applicable to the Corporation and Bank may be substantially
different from the Basel III framework initially proposed. The Corporation
plans to monitor Basel III capital rules to ensure compliance, once finalized.
(Tier 1
capital as a percentage of average total assets)
Codorus Valley Bancorp, Inc. (consolidated)
10.02
%
9.62
%
4.00
%
n/a
%
$
105,597
$
97,128
PeoplesBank
9.72
9.35
4.00
5.00
102,120
94,056
*
Net unrealized gains and losses on
securities available-for-sale, net of taxes, are disregarded for capital
ratio computation purposes in accordance with federal regulatory banking
guidelines.
Risk Management
The
Corporations Risk Management Committee (Committee) meets at least quarterly
and includes members of senior management and an independent director. The
objective of the Committee is to identify and manage risk inherent in the
operations of the Corporation and its affiliates. While the Committees risk
review is broad in scope, its primary responsibility is to develop, implement
and monitor compliance with formal risk management policies and procedures.
Credit risk
management
Credit risk represents the
possibility that a loan client, counterparty or issuer may not perform in
accordance with contractual terms, posing one of the most significant risks of
loss to the Corporation. Accordingly, the Corporation emphasizes the management
of credit risk. To support this objective a sound lending policy framework has
been established. This framework includes seven basic policies that guide the
lending process and minimize risk. First, the Corporation follows detailed
written lending policies and procedures. Second, lending authority is granted
commensurate with dollar amount, loan type, level of risk, and loan officer
experience. Third, loan review committees function at both the senior lending
officer level and the Board level to review and approve loans that exceed
pre-established dollar thresholds and/or meet other criteria. Fourth, the
Corporation lends mainly within its primary geographical market area, York
County, Pennsylvania and northern-central Maryland. Although this focus may
pose a geographical concentration risk, the diverse local economy and employee
knowledge of customers lessens this risk. Fifth, the loan portfolio is
diversified to prevent dependency upon a single customer or small group of
related customers. Sixth, the Corporation does not participate in the subprime
lending market, nor does it invest in securities backed by subprime mortgages.
And seventh, the Corporation does not lend to foreign countries or persons
residing therein.
The
Corporation uses loan-to-value ratios (LTV ratios), establishing generally
acceptable ratios of the loan amount to the value of the collateral securing
the loan, to minimize the risk of loss from the loan portfolio. At December 31,
2012, the LTV ratios listed below were in effect.
Vacant land
(depending on improvements, approvals)
60-70
Special/limited
use properties
50
An acceptable
valuation is required on all real estate secured loans. Generally, an appraisal
performed by an independent licensed appraiser is required for real estate
secured loans where the amount is above $100,000, or is non-owner occupied, or
if the LTV ratio is above 70 percent for commercial property or above the
limits shown in the above schedule for valuations based on tax assessments for
owner occupied residential property, or if an existing appraisal is more than
two years old assuming that there has been no material change in market
conditions or the physical aspects of the property. Exceptions to LTV ratios
and the use of a licensed appraiser are sometimes made by management or the
Board of Directors when there are compensating factors.
One component
of the internal credit risk review is the identification and management of
industry concentrations, defined as greater than 10 percent of the total loan
portfolio. The Corporation had two industry concentrations that exceeded 10
percent of the total loan portfolio: builder & developer were 13.2 percent
and 14.9 of the portfolio at December 31, 2012 and 2011, respectively; and
commercial real estate investor was 16.6 and 17.0 percent of the portfolio,
respectively. Loans to borrowers within these industries are usually
collateralized by real estate.
In addition to
a comprehensive lending policy, numerous internal reviews of loan and
foreclosed real estate portfolios occur throughout the year. Loan portfolios
are also reviewed by independent auditors in connection with their annual
financial statement audit and are examined periodically by bank regulators.
Nonperforming assets
The following
table presents a five-year history of asset categories posing the greatest risk
of loss and related ratios. We generally place a loan on nonaccrual status and
cease accruing interest income, i.e., recognize interest income on a cash basis
as long as the loan is sufficiently collateralized, when loan payment
performance is unsatisfactory and the loan is past due 90 days or more. Loans
past due 90 days or more and still accruing interest represent loans that are
contractually past due, but are well collateralized and in the process of
collection. Foreclosed real estate represents real estate acquired to satisfy
debts owed to PeoplesBank. The final category, troubled debt restructurings,
pertains to loans whose terms have been modified to include a concession that
we would not ordinarily consider due to the debtors financial difficulties.
Concessions granted under a troubled debt restructuring typically involve a
reduction of interest rate lower than the current market rate for new debt with
similar risk, the deferral of payments or extension of the stated maturity
date. Troubled debt restructurings are evaluated for impairment if they have
been restructured during the most recent calendar year, or if they cease to perform in
accordance with the modified terms. The paragraphs below explain significant
changes in the aforementioned categories for December 31, 2012, compared to
December 31, 2011.
Nonperforming
assets are reviewed by management on a monthly basis. We generally rely on
appraisals performed by independent licensed appraisers to determine the value
of collateral for impaired collateral-dependent loans. Generally, an appraisal
is performed when: an account reaches 60 days past due, unless a certified
appraisal was completed within the past six months; market values have changed
significantly; the condition of the property has changed significantly; or the
existing appraisal is outdated. In instances where the value of the collateral
is less than the net carrying amount of the loan, a specific loss allowance is
established for the difference by recording a loss provision to the income
statement. When it is probable that some portion or all of the loan balance
will not be collected, that amount is charged off as loss against the
allowance. Generally, a loan is returned to interest accruing status when we
determine that circumstances have improved to the extent that all of the
principal and interest amounts contractually due are current for at least six
consecutive payments and future payments are reasonably assured.
Table 10-Nonperforming Assets
December 31,
(dollars
in thousands)
2012
2011
2010
2009
2008
Nonaccrual loans
$
6,232
$
5,931
$
14,844
$
25,558
$
8,396
Nonaccrual loans, troubled debt restructurings
2,110
5,770
3,680
0
0
Accruing loans that are contractually past due 90 days or more as to
principal and interest
186
0
197
40
61
Total nonperforming loans
8,528
11,701
18,721
25,598
8,457
Foreclosed real estate, net of allowance
3,633
16,243
10,572
9,314
2,052
Total nonperforming assets
$
12,161
$
27,944
$
29,293
$
34,912
$
10,509
Accruing troubled debt restructurings
$
3,550
$
3,272
$
0
$
0
$
0
Ratios:
Total period-end loans, net of deferred fees
$
737,134
$
693,515
$
640,849
$
645,877
$
573,078
Allowance for loan losses (ALL)
$
9,302
$
8,702
$
7,626
$
7,175
$
4,690
ALL as a % of total period-end loans
1.26
%
1.25
%
1.19
%
1.11
%
0.82
%
Annualized net charge-offs (recoveries) as a % of average total loans
0.16
%
0.58
%
0.39
%
0.20
%
0.13
%
ALL as a % of nonperforming loans
109.08
%
74.38
%
40.74
%
28.03
%
55.45
%
Nonperforming loans as a % of total period-end loans
1.16
%
1.69
%
2.92
%
3.96
%
1.48
%
Nonperforming assets as a % of total period-end loans and net
foreclosed real estate
1.64
%
3.94
%
4.50
%
5.33
%
1.83
%
Nonperforming assets as a % of total period-end assets
1.15
%
2.76
%
3.06
%
3.91
%
1.50
%
Nonperforming assets as a % of total period-end shareholders equity
12.00
%
29.97
%
38.27
%
48.48
%
20.14
%
The level of
nonperforming assets, while relatively high in comparison to the Corporations
historic level, has trended down over the last four years. Significant progress
in reducing the level of nonperforming assets was accomplished in the year
2012, compared to 2011, as a result of recoveries from borrower payments and
foreclosed real estate sales, loan charge-offs and the establishment of
valuation allowances for selective accounts. While progress has been made in
reducing nonperforming assets, we remain concerned about prolonged weak
economic conditions and the corresponding effects it has on our commercial
borrowers.
We evaluate
the adequacy of the allowance for loan losses at least quarterly and have
established a loss allowance for selected loan relationships where the net
realizable value of the collateral is insufficient to repay the loan. In this
regard, allowances, if applicable, are noted below within the description of
the loan. Collection efforts, including modification of contractual terms for
individual accounts based on prevailing market conditions and liquidation of
collateral assets, are being employed to maximize recovery. Further provisions
for loan losses may be required for nonaccrual loans as additional information
becomes available or conditions change. There is also the potential for
adjustment to the allowance as a result of regulatory examinations. A loan is
returned to interest accruing status when we determine that circumstances have
improved to the extent that all of the principal and interest amounts
contractually due are current for at least six consecutive payments and future
payments are reasonably assured.
On December
31, 2012, the nonaccrual loan portfolio balance totaled $8,342,000, compared to
$11,701,000 at year-end 2011. The decrease in nonaccrual loans was primarily
the result of the payoff in full of two large commercial loans during 2012,
which more than offset nonaccrual loan additions. On December 31, 2012, the
nonaccrual loan portfolio was comprised of nineteen unrelated loan
relationships, principally collateralized commercial loans, with outstanding
principal balances ranging in size from $17,000 to $2,110,000. Four unrelated
commercial relationships, which represent the majority of the nonaccrual loan
portfolio balance, are described below.
Loan no. 1At
December 31, 2012, the outstanding principal balance of the loan relationship
was $2,110,000, collateralized by commercial rental properties whose rents are
assigned to PeoplesBank. Based on a recent appraisal of the primary real estate
collateralizing the relationship, we believe that the loans are adequately collateralized.
The borrower is presently operating under a troubled debt restructuring
agreement.
Loan no. 2At
December 31, 2012, the outstanding principal balance of the loan relationship
was $1,349,000, collateralized by two commercial properties. Based on an
independent appraisal of the real estate collateralizing the relationship, we
believe that the loans are adequately collateralized. The Bank is presently
pursuing its legal remedies to recover the amount due.
Loan no. 3At
December 31, 2012, the outstanding principal balance of the loan relationship
was $1,280,000, which represents three commercial loans guaranteed from 70% to
80%, depending upon the specific loan, by the U.S. Department of Agriculture. A
$120,000 allowance for loan losses was established for this relationship.
Several parcels of improved real estate provide collateral for the loans. The
Bank is working through the process to liquidate the real estate.
Loan no. 4
PeoplesBank owns a 62.5 percent participation interest in this loan relationship.
The carrying value of the Banks principal at December 31, 2012, was $856,000,
which reflects a payment totaling $1,634,000 from the sale of collateral during
January 2012. The Bank is pursuing its legal options against parties to the
original loan agreement, including the liquidation of remaining collateral. As
previously disclosed, PeoplesBank charged-off $2,275,000 as a loss in September
2011 due to deterioration in the value of the collateral.
For 2012, the
gross interest income that would have been recorded if the nonaccrual loans had
been current in accordance with their original terms and current throughout the
period was approximately $838,000. The amount of interest income on those
nonaccrual loans that was included in net income for 2012 was approximately
$258,000. The interest income recognized on impaired loans, which includes
nonaccrual loans, in Note 5Loans in the notes to the consolidated financial
statements, is a lesser amount because it includes interest income only from the
time the loan was impaired.
At December
31, 2012, there were approximately $18.9 million in potential problem loans
being closely monitored by management. Potential problem loans consist of loans
classified as substandard where we have doubts as to the ability of the
borrower to comply with present repayment terms, and which are not disclosed in
Table 10. A loss allowance totaling $595,000 was established at December 31,
2012, for those potential problem commercial loans that, in our judgment, were under
collateralized. Comparatively, we were monitoring approximately $3.0 million of
potential problem loans at December 31, 2011.
Foreclosed real estate
On December
31, 2012, foreclosed real estate, net of allowance, totaled $3,633,000,
compared to $16,243,000 at December 31, 2011. The $12,610,000 or 78 percent
decrease was due primarily to the sale of real estate and secondarily to an
increase in the allowance for real estate losses for selected properties. On
December 31, 2012, the portfolio was comprised of five unrelated accounts
ranging in size from $74,000 to $1,314,000, which in general, we are actively
attempting to liquidate. If a valuation allowance for probable loss has been
established for a particular property it is so noted in the property description
below. Further valuation allowances may be required on any foreclosed property
as additional information becomes available or conditions change. Foreclosed
real estate is included in the other assets category on the Corporations
balance sheet. Three unrelated foreclosed real estate properties, which
represent the majority of the foreclosed real estate portfolio balance, are
described below.
Property no.
1 The carrying amount of this property at December 31, 2012 was $1,314,000,
which is net of a $1,984,000 allowance for probable loss based on an
independent appraisal less estimated selling costs. This account is
collateralized by 266 acres of unimproved land that is zoned for residential
development. Based on information obtained in 2012, plans to obtain a formal
development plan were suspended with the intent to temporarily retain the
property and investigate other development, disposition or income generating
options at some future date. Impairment loss for this property totaled $710,000
for the year 2012, which is reflected in the allowance.
Property no.
2 The carrying amount of this property at December 31, 2012 was $1,088,000,
which is net of a $1,627,000 allowance for probable loss based on the results
of an independent appraisal less estimated selling costs. During the third
quarter of 2012, a $1,027,000 impairment loss and corresponding increase in the
allowance were recognized as reported on Form 8-K filed on August 30, 2012. The
impairment recorded in the third quarter follows a $308,000 impairment loss and
corresponding increase in the allowance recorded in the second quarter of 2012.
This account is collateralized by 136 approved residential building lots. Of
this total, 29 lots are improved. Management is evaluating its disposition options
with regard to this property.
Property no.
3The carrying amount of this property at December 31, 2012 was $780,000, which
represents the value of the borrowers personal residence presently listed for
sale less estimated selling costs. Earlier in the year 2012, the Corporation
recovered $837,000 from the sale of additional real estate collateral.
Although the
Corporation maintains sound credit policies, certain loans deteriorate and must
be charged off as losses. The allowance for loan losses is maintained to absorb
losses inherent in the portfolio. The allowance is increased by provisions
charged to expense and is reduced by loan charge-offs, net of recoveries. The
allowance is based upon managements continuous evaluation of the loan
portfolio coupled with a formal review of adequacy on a quarterly basis, which
is subject to review and approval by the Board. An overview of the methodology
and key factors that we use in evaluating the adequacy of the allowance and loan
impairment is provided in Note 1-Summary of Significant Accounting Policies in
the notes to the consolidated financial statements.
The allowance
for loan losses consists primarily of three components: specific allowances for
individually impaired commercial loans; allowances calculated for pools of
loans; and an unallocated component, which reflects the margin of imprecision
inherent in the assumptions that underlie the evaluation of the adequacy of the
allowance. The Corporation uses an internal risk rating system to evaluate
individual loans. Loans are segmented into industry groups or pools with
similar characteristics, and an allowance for loan losses is allocated to each
segment based on quantitative factors such as recent loss history (two-year rolling
average of net charge-offs) and qualitative factors, such as the results of
internal and external credit reviews, changes in the size and composition of
the loan portfolio, adequacy of collateral, general economic conditions and the
local business outlook. Determining the level of the allowance for probable
loan losses at any given period is difficult, particularly during deteriorating
or uncertain economic periods. We must make estimates using assumptions and
information that is often subjective and fluid. There is also the potential for
adjustment to the allowance as a result of regulatory examinations.
Table
11Analysis of Allowance for Loan Losses presents an analysis of the activity
in the allowance for loan losses over a five-year period. A more detailed
analysis of the allowance for the current year is provided in Note 5 Allowance
for Loan Losses in the notes to the consolidated financial statements.
The allowance
was $9,302,000 or 1.26 percent of total loans, on December 31, 2012, compared
to $8,702,000 and 1.25 percent, respectively, on December 31, 2011. For the
year 2012, net charge-offs totaled $1,150,000, which was well below the
$3,859,000 for the year 2011. The level of charge-offs in 2011 were unusually
high due to the inclusion of partial charge-offs for two unrelated commercial
loans totaling $3,175,000. The decrease in the level of net charge-offs lowered
the net charge-off ratio to 0.16 percent for the year 2012, compared to 0.58
percent for the year 2011. The risks and uncertainties associated with
prolonged weakness in economic and business conditions, a relatively high level
of unemployment and erosion of real estate values, which adversely affect our
borrowers ability to service their loans, can cause significant fluctuations
in the level of charge-offs and provision expense from one period to another.
Based on a comprehensive analysis of the loan portfolio, we believe that the
allowance for loan losses was adequate at December 31, 2012.
Allowance for loan losses as a % of total period-end loans
1.26
%
1.25
%
1.19
%
1.11
%
0.82
%
Allowance for loan losses as a % of nonperforming loans
109.08
%
74.38
%
40.74
%
28.03
%
55.45
%
Table
12Allocation of Allowance for Loan Losses presents an allocation of the
allowance for loan losses by major loan category. Because all identified losses
are immediately charged off, no portion of the allowance for loan losses is
restricted to any individual loan or groups of loans, and the entire allowance
is available to absorb any and all loan losses. Generally, the unallocated
component reflects the margin of imprecision inherent in the underlying
assumptions used in the methodologies for estimating specific and general
losses in the loan portfolio.
Maintaining
adequate liquidity provides the Corporation with the ability to meet financial
obligations to depositors, loan customers, employees, and shareholders on a
timely and cost effective basis in the normal course of business. Additionally,
it provides funds for growth and business opportunities as they arise.
Liquidity is generated from transactions relating to both the Corporations
assets and liabilities. The primary sources of asset liquidity are scheduled
investment security maturities and cash inflows, funds received from customer
loan payments, and asset sales. The primary sources of liability liquidity are
deposit growth, short-term borrowings and long-term debt. The Consolidated
Statements of Cash Flows, included in this report, present the changes in cash
from operating, investing and financing activities. At year-end 2012, we
believe that liquidity was adequate based upon the potential liquidation of
unpledged available-for-sale securities with a fair value totaling
approximately $96 million and available credit from the Federal Home Loan Bank
of Pittsburgh totaling approximately $166 million. The Corporations
loan-to-deposit ratio was approximately 82 percent for year-end 2012, compared
to 81 percent for year-end 2011.
Off-Balance sheet arrangements
The
Corporations financial statements do not reflect various commitments that are
made in the normal course of business, which may involve some liquidity risk.
These commitments consist primarily of commitments to grant new loans, unfunded
commitments under existing loan facilities, and letters of credit issued under
the same standards as on-balance sheet instruments. Financial instruments with
off-balance sheet risk are disclosed in Note 14-Commitments to Extend Credit in
the notes to the consolidated financial statements totaled $248 million at
December 31, 2012, compared to $166 million at December 31, 2011. Normally
these commitments have fixed expiration dates or termination clauses and are
for specific purposes. Accordingly, many of the commitments are expected to
expire without being drawn and therefore, generally do not present significant
liquidity risk to the Corporation or PeoplesBank.
Impact of inflation and changing prices
The majority
of assets and liabilities of a financial institution are monetary in nature and
therefore, differ greatly from most commercial and industrial companies that
have significant investments in fixed assets or inventories. However, inflation
may impact the growth of total assets in the banking industry and the resulting
need to increase equity capital at higher than normal rates in order to
maintain an appropriate equity-to-assets ratio. Inflation may also
significantly affect noninterest expenses, which tend to rise during periods of
general inflation. The level of inflation can be measured by the change in the
Consumer Price Index (CPI) for all urban consumers (December vs. December). The
change in the CPI for 2012 was 1.7 percent, compared to 3.0 percent for 2011
and 1.5 percent for 2010.
Management
believes that the most significant impact on financial results is the
Corporations ability to react to changes in market interest rates. Management
strives to structure the balance sheet to increase net interest income by
managing interest rate sensitive assets and liabilities to reprice in response
to changes in market interest rates. Additionally, management is focused on
increasing fee income, an income component that is less sensitive to changes in
market interest rates.
Item 7A: Quantitative and qualitative
disclosures about market risk
Report of Managements Assessment of
Internal Controls Over Financial Reporting
The
Corporation carried out an evaluation, under the supervision and with the
participation of the Corporations management, including the Corporations
Chief Executive Officer and Chief Financial Officer, of the effectiveness of
its disclosure controls and procedures, as defined in Exchange Act Rules
13a-15(e) and 15d-15(e). Based upon the evaluation, the Corporations Chief
Executive Officer and Chief Financial Officer concluded that, as of December
31, 2012, the Corporations disclosure controls and procedures are effective.
Disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Corporations reports filed or submitted under
the Exchange Act is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commissions rules and
forms.
The management
of the Corporation is responsible for establishing and maintaining adequate
internal control over financial reporting. The Corporations internal control
system is designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with U.S. generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness of future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Management
assessed the effectiveness of the Corporations internal control over financial
reporting as of December 31, 2012, using the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework,
with an emphasis on Internal Control Over Financial Reporting-Guidance for
Smaller Public Companies, also issued by COSO. Based on this assessment,
management concluded that, as of December 31, 2012, the Corporations internal
control over financial reporting is effective based on those criteria.
This Annual
Report does not include an attestation report of the Corporations independent
registered public accounting firm regarding internal control over financial
reporting as no such report is required. Managements report was not subject to
attestation by the Corporations registered public accounting firm pursuant to
rules of the Securities and Exchange Commission that permit the Corporation to
provide only managements report in this Annual Report.
Item 8: Financial statements and supplementary
data Codorus Valley
Bancorp, Inc. Consolidated Balance Sheets
(dollars
in thousands, except share and per share data)
December 31,
2012
December 31,
2011
Assets
Interest bearing deposits with banks
$
34,866
$
19,640
Cash and due from banks
14,891
12,555
Total cash and cash equivalents
49,757
32,195
Securities, available-for-sale
234,062
233,861
Restricted investment in bank stocks, at cost
2,863
3,635
Loans held for sale
3,091
2,869
Loans (net of deferred fees of $1,186 - 2012 and $692 - 2011)
737,134
693,515
Less-allowance for loan losses
(9,302
)
(8,702
)
Net loans
727,832
684,813
Premises and equipment, net
11,493
10,861
Other assets
30,639
43,898
Total assets
$
1,059,737
$
1,012,132
Liabilities
Deposits
Noninterest bearing
$
88,476
$
73,760
Interest bearing
812,831
780,639
Total deposits
901,307
854,399
Short-term borrowings
19,356
10,257
Long-term debt
30,815
46,628
Other liabilities
6,928
7,606
Total liabilities
958,406
918,890
Shareholders equity
Preferred stock, par value $2.50 per share; $1,000 liquidation
preference, 1,000,000 shares authorized; 25,000 Series B shares issued and
outstanding - 2012 and 2011
25,000
25,000
Common stock, par value $2.50 per share; 15,000,000 shares
authorized; 4,482,319 shares
issued and outstanding - 2012 and 10,000,000 shares authorized; 4,202,606
shares issued and outstanding - 2011
Codorus Valley Bancorp, Inc. Notes to
Consolidated Financial Statements
NOTE 1-Summary of Significant Accounting
Policies
Nature of Operations and Basis of
Presentation Codorus Valley Bancorp, Inc. (Corporation or Codorus
Valley) is a one-bank holding company headquartered in York, Pennsylvania that
provides a full range of banking services through its subsidiary, PeoplesBank,
A Codorus Valley Company (PeoplesBank or Bank). PeoplesBank operates two
wholly-owned subsidiaries, Codorus Valley Financial Advisors, Inc. (formerly
SYC Insurance Services, Inc.) which sells nondeposit investment products, and
SYC Settlement Services, Inc., which provides real estate settlement services.
In addition, PeoplesBank may periodically create nonbank subsidiaries for the
purpose of temporarily holding foreclosed properties pending the liquidation of
these properties. PeoplesBank operates under a state charter and is subject to
regulation by the Pennsylvania Department of Banking and the Federal Deposit
Insurance Corporation. The Corporation is subject to regulation by the Federal
Reserve Board and the state of Pennsylvania.
The
consolidated financial statements include the accounts of Codorus Valley and
its wholly-owned bank subsidiary, PeoplesBank, and its wholly-owned nonbank
subsidiary, SYC Realty Company, Inc. SYC Realty is primarily used to hold
foreclosed properties obtained by PeoplesBank pending the liquidation of these
properties. The accounts of CVB Statutory Trust No. 1 and No. 2 are not
included in the consolidated financial statements as discussed in Note 8
Short-term Borrowings and Long-term Debt. All significant intercompany account
balances and transactions have been eliminated in consolidation. The accounting
and reporting policies of Codorus Valley and subsidiaries conform to accounting
principles generally accepted in the United States of America and have been
followed on a consistent basis.
In accordance
with FASB ASC Topic 855, the Corporation evaluated the events and transactions
that occurred after the balance sheet date of December 31, 2012 through the
date these consolidated financial statements were issued.
Investment Securities The classification of securities is determined at the
time of acquisition and is reevaluated at each reporting date. Securities
classified as available-for-sale are debt securities that the Corporation
intends to hold for an indefinite period of time, but not necessarily to
maturity. Any decision to sell a security classified as available-for-sale
would be based on various factors, including significant movements in interest
rates, changes in maturity mix of assets and liabilities, income or liquidity
needs, regulatory considerations and other factors. Debt securities
available-for-sale are carried at fair value, with unrealized gains and losses,
net of taxes, reported as a component of accumulated other comprehensive income
in shareholders equity. Premiums and discounts are recognized in interest
income using the interest method over the estimated life of the security. Realized
gains and losses from the sale of available-for-sale securities are computed on
the basis of specific identification of the adjusted cost of each security and
are shown net as a separate line item in the statement of income.
Declines in
the fair value of available-for-sale securities below their cost that are
deemed to be other-than-temporary are reflected in earnings as realized losses.
In estimating other-than-temporary impairment losses, management must first
assess whether (a) it has the intent to sell the security and (b) it is more
likely than not that it will be required to sell the security prior to its
anticipated recovery. These steps are done before assessing whether the cost
basis of the investment will be recovered. The assessment of the probability of
recovery would consider, among other things, the length of time and the extent
to which the fair value has been less than cost and the financial condition and
near-term prospects of the issuer. More information about investment securities
is provided in Note 3 Securities.
Restricted Stock Restricted stock, which represents required
investments in the common stock of correspondent banks, is carried at cost and,
as of December 31, 2012 and 2011, consisted primarily of the common stock of
the Federal Home Loan Bank of Pittsburgh (FHLBP) and, to a lesser degree,
Atlantic Central Bankers Bank (ACBB). Under the FHLBPs Capital Plan,
PeoplesBank is required to maintain a minimum member stock investment, both as
a condition of becoming and remaining a member and as a condition of obtaining
borrowings from the FHLBP. The FHLBP uses a formula to determine the minimum
stock investment, which is based on the volume of loans outstanding, unused
borrowing capacity and other factors.
For the fourth
quarter of 2011, the FHLBP began paying a quarterly cash dividend on its common
stock after a period of suspension since December 2008. The FHLBP reported that
it will continue to monitor the condition of its private-label residential
mortgage-back securities portfolio, its overall financial performance and
retained earnings, developments in the mortgage and credit markets, and other
relevant information as the basis for determining the status of dividends and
excess capital stock repurchases in future quarters.
Management
evaluates the restricted stock for impairment in accordance with FASB ASC Topic
942. Managements determination of whether these investments are impaired is
based on their assessment of the ultimate recoverability of their cost rather
than by recognizing temporary declines in value. Using the FHLBP as an example,
the determination of whether a decline affects the ultimate recoverability of
cost is influenced by criteria such as: (1) the significance of the decline in
net assets of the FHLBP as compared to the capital stock amount for the FHLBP
and the length of time this situation has persisted; (2) commitments by the
FHLBP to make payments required by law or regulation and the level of such
payments in relation to the operating performance of the FHLBP; and (3) the
impact of legislative and regulatory changes on institutions and, accordingly,
on the customer base of the FHLBP. Management believes no impairment charge was
necessary related to the restricted stock during the periods ended December 31,
2012 and 2011.
Loans Held for Sale
Loans held for sale are comprised of residential mortgage loans originated by
the Bank and servicing of the loan is not retained after sale. Loans held for
sale are reported at the lower of cost or fair value, as determined by the
aggregate commitments from investors or current investor yield requirements.
The amount, by which cost exceeds fair value, if any, is accounted for as a
valuation allowance and is charged to expense in the period of the change. Gains
or losses on sales of mortgage loans are recognized based on the difference
between the selling price and the carrying value of the related mortgage loan
and is recorded in noninterest income.
Loans Loans receivable that management has the intent and
ability to hold for the foreseeable future or until maturity or payoff, are
stated at their outstanding unpaid principal balances less amounts charged off,
net of an allowance for loan losses and any deferred fees or costs. Interest
income is accrued on the unpaid principal balance. Generally, loan origination
fees, net of certain direct origination costs, are deferred and recognized as
an adjustment of the yield (interest income) over the contractual life of the
loan. The loans receivable portfolio is segmented into commercial and consumer
loans. Commercial loans consist of the following industry classes: builder
& developer, commercial real estate investor, residential real estate
investor, hotel/motel, wholesale & retail, agriculture, manufacturing and
all other. Consumer loans consist of the following classes: residential
mortgage, home equity and all other.
For all
classes of loans receivable, the accrual of interest is discontinued when the
contractual payment of principal or interest has become 90 days past due or
management has serious doubts about further collectability of principal or
interest, even though the loan is currently performing. A loan may remain on
accrual status if it is in the process of collection and is either guaranteed
or well secured. When a loan is placed on
nonaccrual status, unpaid interest credited to income in the current year is
reversed and unpaid interest accrued in prior years is charged against the
allowance for loan losses. Interest received on nonaccrual loans, including
impaired loans, generally is either applied against principal or reported as
interest income, according to the Corporations judgment as to the
collectability of principal. Generally, loans are restored to accrual status
when the obligation is brought current, has performed in accordance with the
contractual terms for a reasonable period of time, generally six months, and
the ultimate collectability of the total contractual principal and interest is
no longer in doubt. The past due status of all classes of loans receivable is
determined based on contractual due dates for loan payments.
Allowance for Loan Losses
The allowance for loan losses represents the Corporations estimate of losses
inherent in the loan portfolio as of the balance sheet date and is recorded as
a reduction to loans. The allowance for loan losses is increased by the
provision for loan losses, and decreased by charge-offs, net of recoveries.
Loans deemed to be uncollectible are charged against the allowance for loan
losses, and subsequent recoveries, if any, are credited to the allowance. All,
or part, of the principal balance of loans receivable are charged off to the
allowance as soon as it is determined that the repayment of all, or part, of
the principal balance is highly unlikely. While the Corporation attributes a
portion of the allowance to individual loans and groups of loans that it
evaluates and determines to be impaired, the allowance is available to cover
all charge-offs that arise from the loan portfolio.
The allowance
for loan losses is maintained at a level considered adequate to provide for
losses that can be reasonably anticipated. The Corporation performs a quarterly
evaluation of the adequacy of the allowance. The allowance is based on the
Corporations past loan loss experience, known and inherent risks in the
portfolio, adverse situations that may affect the borrowers ability to repay,
the estimated value of any underlying collateral, composition of the loan
portfolio, current economic conditions and other relevant factors. This
evaluation is inherently subjective as it requires material estimates that may
be susceptible to significant revision as more information becomes available.
The allowance
consists of specific, general and unallocated components. The specific
component relates to loans that are classified as impaired, generally
substandard and nonaccrual loans. For loans that are classified as impaired, an
allowance is established when the collateral value (or discounted cash flows or
observable market price) of the impaired loan is lower than the carrying value
of that loan. The general component covers pools of loans by loan class
including commercial loans not considered impaired, as well as smaller balance
homogeneous loans, such as residential real estate, home equity and other
consumer loans. These pools of loans are evaluated for loss exposure based upon
historical loss rates for each of these classes of loans, adjusted for
qualitative (environmental) risk factors. Historical loss rates are based on a two
year rolling average of net charge-offs. Qualitative risk factors that
supplement historical losses in the evaluation of loan pools include:
Changes in national and
local economies and business conditions
Changes in the value of collateral for collateral dependent
loans
Changes in the level of concentrations of credit
Changes in the volume and severity of classified and past due
loans
Changes in the nature and volume of the portfolio
Changes in collection, charge-off, and recovery procedures
Changes in underwriting standards and loan terms
Changes in the quality of the loan review system
Changes in the experience/ability of lending management and key
lending staff
Regulatory and legal regulations that could affect the level of
credit losses
Each factor is
assigned a value to reflect improving, stable or declining conditions based on
the Corporations best judgment using relevant information available at the
time of the evaluation. An unallocated
component is maintained to cover uncertainties that could affect the
Corporations estimate of probable losses. The unallocated component of the
allowance reflects the margin of imprecision inherent in the underlying
assumptions used in the methodologies for estimating specific and general
losses in the loan portfolio.
As disclosed
in Note 4-Loans, the Corporation engages in commercial and consumer lending.
Loans are made within the Corporations primary market area and surrounding
areas, and include the purchase of whole loan or participation interests in
loans from other financial institutions. Commercial related loans, which pose
the greatest risk of loss to the Corporation, whether originated or purchased,
are generally secured by real estate. Within the broad commercial loan segment,
the builder & developer and commercial real estate investor loan classes
generally present a higher level of risk than other commercial loan
classifications. This greater risk is due to several factors, including the
concentration of principal in a limited number of loans and borrowers, the
effect of general economic conditions on income producing properties, unstable
real estate prices and the dependency upon successful construction and sale or
operation of the real estate project. Within the consumer loan segment, junior
(i.e., second) liens present a slightly higher risk to the Corporation because
economic and housing market conditions can adversely affect the underlying value
of the collateral and the ability of some borrowers to service their debt.
A loan is
considered impaired when, based on current information and events, it is
probable that the Corporation will be unable to collect the scheduled payments
of principal or interest when due according to the contractual terms of the
loan agreement. Factors considered in determining impairment include payment
status and the probability of collecting scheduled principal and interest
payments when due. Loans that experience insignificant payment delays and
payment shortfalls generally are not classified as impaired. The Corporation
determines the significance of payment delays and payment shortfalls on a
case-by-case basis, taking into consideration all of the circumstances surrounding
the loan and the borrower, including the length of the delay, the reasons for
the delay, the borrowers prior payment record and the amount of the shortfall
in relation to the principal and interest owed. Loans that are deemed impaired
are evaluated for impairment loss based on the net realizable value of the
collateral, as applicable. Loans that are not collateral dependent will rely on
the present value of expected future cash flows discounted at the loans
effective interest rate to determine impairment loss. Large groups of smaller
balance homogeneous loans such as residential mortgage loans, home equity loans
and other consumer loans are collectively evaluated for impairment, unless they
are considered to be a troubled debt restructuring.
An allowance
for loan losses is established for an impaired commercial loan if its carrying
value exceeds its estimated fair value. For commercial loans secured by real
estate, estimated fair values are determined primarily through third-party
appraisals of the underlying collateral. When a real estate secured loan
becomes impaired, a decision is made regarding whether an updated certified
appraisal of the real estate is necessary. This decision is based on various
considerations, including the age of the most recent appraisal, the
loan-to-value ratio based on the most recent appraisal and the condition of the
property. Appraisals are generally discounted to provide for selling costs and
other factors to determine an estimate of the net realizable value of the
property. For commercial loans secured by non-real estate collateral, such as
accounts receivable, inventory and equipment, estimated fair values are
determined based on the borrowers financial statements, inventory reports,
accounts receivable aging or equipment appraisals or invoices. Indications of
value from these sources are generally discounted based on the age of the
financial information or the quality of the assets. In instances when specific
consumer related loans become impaired, they may be partially or fully charged
off, which obviates the need for a specific allowance.
Loans whose
terms are modified are classified as troubled debt restructurings if the
Corporation grants borrowers experiencing financial difficulties concessions
that it would not otherwise consider.
Concessions
granted under a troubled debt restructuring may involve an interest rate that
is below the market rate given the associated credit risk of the loan or an
extension of a loans stated maturity date. Loans classified as troubled debt
restructurings are designated as impaired. Non-accrual troubled debt
restructurings are restored to accrual status if principal and interest
payments, under the modified terms, are current for a reasonable period of
time, generally six consecutive months after modification and future payments
are reasonably assured.
Federal
regulatory agencies, as an integral part of their examination process,
periodically review the Corporations allowance for loan losses and may require
the Corporation to recognize additions to the allowance based on their
judgments about information available to them at the time of their examination,
which may not be currently available to the Corporation. Based on a
comprehensive analysis of the loan portfolio, the Corporation believes that the
level of the allowance for loan losses at December 31, 2012 is adequate.
Transfers of Financial Assets Transfers of financial assets are accounted for as
sales when control over the assets has been surrendered. Control over transferred
assets is deemed to be surrendered when (1) the assets have been isolated from
the Corporation, (2) the transferee obtains the right (free of conditions that
constrain it from taking advantage of that right) to pledge or exchange the
transferred assets, and (3) the Corporation does not maintain effective control
over the transferred assets through an agreement to repurchase them before
their maturity.
Premises and Equipment
Land is carried at cost. Premises and equipment are carried at cost less
accumulated depreciation. Depreciation expense is calculated principally on the
straight-line method over the assets estimated useful lives. Estimated useful
lives are seven to forty years for buildings and improvements, three to twenty
years for furniture and equipment and three to five years for computer
equipment and software. Maintenance and repairs are charged to expense as
incurred. The cost of significant improvements to existing assets is
capitalized and amortized over the shorter of the assets useful life or
related lease term. When facilities are retired or otherwise disposed of, the
depreciated cost is removed from the asset accounts, and any gain or loss is
reflected in the statement of income.
Foreclosed Real Estate
Foreclosed real estate, included in other assets, is comprised of property
acquired through a foreclosure proceeding or property that is acquired through
in substance foreclosure. Foreclosed real estate is initially recorded at fair
value minus estimated costs to sell at the date of foreclosure, establishing a
new cost basis. Any difference between the carrying value and the new cost
basis is charged against the allowance for loan losses. Appraisals are
generally used to determine fair value. After foreclosure, management reviews valuations
at least quarterly and adjusts the asset to the lower of cost or fair value
minus estimated costs to sell through a valuation allowance. Costs related to
the improvement of foreclosed real estate are generally capitalized until the
real estate reaches a saleable condition. Revenue and expense from operations
and changes in the valuation allowance are included in noninterest expense.
When a foreclosed real estate asset is ultimately sold, any gain or loss on the
sale is included in the income statement as a component of noninterest expense.
At December 31, 2012, foreclosed real estate, net of allowance was $3,633,000,
compared to $16,243,000 for December 31, 2011.
Investments in Real Estate Partnerships In March 2003, PeoplesBank acquired a 73.47 percent
limited partner interest in a real estate joint venture known as Village Court,
which was formed to develop, construct, own and operate a 60-unit affordable
housing complex located in Dover Township, York County, Pennsylvania.
Construction of the housing complex was completed in the fourth quarter of 2004
and the complex was fully leased by December 31, 2004. The investment balance
included in other assets was $533,000 at December 31, 2012, compared
to $846,000 at December 31, 2011. Additionally, PeoplesBank is a 99.99 percent
limited partner in a real estate joint venture known as SMB Properties that
rehabilitated and now operates seven buildings in the City of York,
Pennsylvania as part of a revitalization initiative. The buildings provide low-income
housing to qualified families and, to a lesser degree, space for commercial
purposes. The investment balance included in other assets has been fully
amortized as of December 31, 2012, compared to $22,000 at December 31, 2011.
Investment and
related tax credits are accounted for under the effective yield method of
accounting under which tax credits are recognized as they are allocated, and
the cost of the investment is amortized to provide a constant yield over the
period that tax credits are allocated, generally ten years.
Bank Owned Life Insurance
PeoplesBank invests in bank owned life insurance (BOLI) as a source of funding
for employee benefit expenses. BOLI involves the purchasing of life insurance
by PeoplesBank on a select group of employees and directors. PeoplesBank is the
owner and beneficiary of the policies. This life insurance investment is
carried at the cash surrender value of the underlying policies and is included
in other assets in the amount of $15,467,000 at December 31, 2012, compared to
$14,814,000 at December 31, 2011.
Trust and Investment Services Assets Assets held by PeoplesBank in a fiduciary or agency
capacity for its customers are not included in the consolidated balance sheets
since these items are not assets of PeoplesBank.
Advertising Advertising costs are charged to expense when
incurred.
Income Taxes
Deferred income taxes are provided on the liability method whereby deferred tax
assets are recognized for deductible temporary differences and deferred tax
liabilities are recognized for taxable temporary differences. Temporary
differences are the differences between the reported amounts of assets and
liabilities and their tax bases. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that
some portion or all the deferred tax assets will not be realized. Deferred tax
assets and liabilities are adjusted through the provision for income taxes for
the effects of changes in tax laws and rates on the effective date.
The
Corporation accounts for uncertain tax positions as required by FASB ASC Topic
740. FASB ASC Topic 740 clarifies the accounting for uncertainty in income
taxes recognized in an enterprises financial statements. Specifically, the
accounting standard prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return as well as guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure, and transition. No significant income tax uncertainties
have been identified by the Corporation; therefore, the Corporation recognized
no adjustment for unrecognized income tax benefits for the years ended December
31, 2012 or 2011. The Corporations policy is to recognize interest and
penalties on unrecognized tax benefits in income taxes expense in the
Consolidated Statement of Income. The Company did not recognize any interest
and penalties for the years ended December 31, 2012, 2011 and 2010. The tax
years subject to examination by the taxing authorities are the years ended
December 31, 2011, 2010, and 2009.
Use of Estimates The preparation of financial statements in conformity
with generally accepted accounting principles in the United States of America
requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results
could differ from those estimates. Material estimates that are particularly
susceptible to significant change in the near term relate to
the determination of the allowance for loan losses, the evaluation of
other-than-temporary impairment losses for investment securities and the
evaluation of impairment losses for foreclosed real estate.
Fair Value of Financial Instruments Fair values of financial instruments are estimated
using relevant market information and other assumptions, as more fully
disclosed in Note 16. Fair value estimates involve uncertainties and matters of
significant judgment. Changes in assumptions or in market conditions could
significantly affect the estimates.
Per Common Share Data Basic net income per common share is calculated as net
income available to common shareholders divided by the weighted average number
of common shares outstanding. Diluted net income per common share is calculated
as net income available to common shareholders divided by the weighted average
number of common shares outstanding plus common shares that would have been
outstanding if dilutive potential common shares had been issued, as well as any
adjustment to income that would result from the assumed issuance. Potential
common shares that may be issued by the Corporation relate solely to outstanding
stock options and warrants and are determined using the treasury stock method.
All share and per share amounts are adjusted for stock dividends that are
declared prior to the issuance of the consolidated financial statements.
The
computation of net income per common share for the years ended December 31,
2012, 2011 and 2010 is provided in the table below.
(in
thousands, except per share data)
2012
2011
2010
Net income available to common shareholders
$
9,010
$
5,319
$
5,228
Weighted average shares outstanding (basic)
4,441
4,366
4,298
Effect of dilutive stock options
61
28
6
Weighted average shares outstanding
(diluted)
4,502
4,394
4,304
Basic earnings per common share
$
2.03
$
1.22
$
1.22
Diluted earnings per common share
$
2.00
$
1.21
$
1.21
Anti-dilutive stock options and common
stock warrants
excluded from the computation of earnings
per share
106
188
486
Stock-Based Compensation The Corporation accounts for its stock-based
compensation awards in accordance with FASB ASC Topic 718, which requires
public companies to recognize compensation expense, related to stock-based
compensation awards in their statements of operations. Compensation expense is
equal to the fair value of the stock-based compensation awards on the grant
date and is recognized over the vesting period of such awards. More information
is provided in Note 12.
For purposes of the statements
of cash flows, the Corporation considers interest bearing deposits with banks,
cash and due from banks, and federal funds sold to be cash and cash
equivalents.
Years ended December 31,
(dollars in thousands)
2012
2011
2010
Cash paid during the period for:
Income taxes
$
2,825
$
1,960
$
1,719
Interest
$
10,578
$
12,525
$
13,219
Noncash investing and financing activities:
Transfer of loans to foreclosed real estate
$
231
$
3,013
$
9,104
Transfer of loans held for sale to the held-to-maturity portfolio
$
0
$
0
$
160
Increase in other liabilities for investment in foreclosed real
estate
$
0
$
116
$
65
Increase in other liabilities for purchase of securities settling
after year end
$
0
$
1,063
$
0
Increase in other liabilities for preferred stock dividends declared
$
63
$
313
$
0
Off-Balance Sheet Financial Instruments
In the ordinary course of
business, the Corporation enters into off-balance sheet financial instruments
consisting of commitments to extend credit and standby letters of credit. These
financial instruments are recorded on the balance sheet when they become a
receivable to the Corporation.
Comprehensive Income
Accounting principles generally
accepted in the United States of America require that recognized revenue,
expenses, gains and losses be included in net income. Although certain changes
in assets and liabilities, such as unrealized gains and losses on
available-for-sale securities, are reported as a separate component of the
shareholders equity section of the balance sheet, such items, along with net
income, are components of comprehensive income.
Segment Reporting
Management has determined that
it operates in only one segment, community banking. The Corporations
non-banking activities are insignificant to the consolidated financial
statements.
Reclassification
Certain amounts in the 2011 and
2010 consolidated financial statements have been reclassified to conform to the
2012 presentation, which did not impact net income or shareholders equity.
Recent Accounting Pronouncements
The FASB issued ASU No.
2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S GAAP and IFRSs. This Update amends FASB ASC Topic 820,
Fair Value Measurements, to bring U.S. GAAP for fair value measurements in line
with International Accounting Standards. The Update clarifies existing guidance
for items such as: the application of the highest and best use concept to
non-financial assets and liabilities; the application of fair value measurement
to financial instruments classified in a reporting entitys stockholders
equity; and disclosure requirements regarding quantitative information about
unobservable inputs used in the fair value measurements of level 3 assets. The
Update also creates an exception to Topic 820 for entities which carry
financial instruments within a portfolio or group, under which the entity is now
permitted to base the price used for fair valuation upon a price that would be
received to sell the net asset position or transfer a net liability position in
an orderly transaction. The Update also allows for the application of premiums
and discounts in a fair value measurement if the financial instrument is
categorized in level 2 or 3 of the fair value hierarchy. Lastly, the ASU
contains new disclosure requirements regarding fair value amounts
categorized as level 3 in the fair value hierarchy such as: disclosure of the
valuation process used; effects of and relationships between unobservable
inputs; usage of nonfinancial assets for purposes other than their highest and
best use when that is the basis of the disclosed fair value; and categorization
by level of items disclosed at fair value, but not measured at fair value for
financial statement purposes. The Corporation adopted the provisions of ASU No.
2011-04 effective January 1, 2012. The fair value measurement provisions of ASU
No. 2011-04 had no impact on the Corporations consolidated financial
statements. See Note 16 to the consolidated financial statements for enhanced
disclosures required by ASU No. 2011-04.
In November
2008, the Securities and Exchange Commission (SEC) released a proposed roadmap
regarding the potential use by U.S. issuers of financial statements prepared in
accordance with International Financial Reporting Standards (IFRS). IFRS is a
comprehensive series of accounting standards published by the International
Accounting Standards Board (IASB). On July 13, 2012, the SEC published their
final report on IFRS, which included an analysis of the issues related to
possible incorporation of IFRS into the U.S. financial reporting regime. The
SEC report was designed to inform the SEC commissioners for when they would
come to decide whether, and if so, how, IFRS should be applied to the U.S. The
next step for the SEC is to develop a recommendation on IFRS, but no timetable
has been disclosed for completing this work. The Corporation will continue to
monitor the development of the potential implementation of IFRS.
In February
2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out
of Accumulated Other Comprehensive Income. The objective of this ASU is to
improve the reporting of reclassifications out of accumulated other
comprehensive income. This ASU requires an entity to report the effect of
significant reclassifications out of accumulated other comprehensive income, by
component, on the respective line items in the income statement if the amount
being reclassified is required under U.S. generally accepted accounting
principles (GAAP) to be reclassified in its entirety to net income.
Reclassifications that are not required under U.S. GAAP to be reclassified in
their entirety to net income in the same reporting period are required to be
cross-referenced to other U.S. GAAP disclosures that provide additional detail
about those amounts. The amendments do not change the current requirements for
reporting net income or other comprehensive income in financial statements.
However, the amendments require an entity to provide information about the
amounts reclassified out of accumulated other comprehensive income by
component. In addition, an entity is required to present, either on the face of
the statement where net income is presented or in the notes, significant
amounts reclassified out of accumulated other comprehensive income. The
provisions of this ASU are effective for public entities prospectively for
reporting periods beginning after December 15, 2012. The update is not expected
to have a material impact on the Corporations results of operations or
financial condition.
NOTE 2-Restrictions on Cash and Due from
Banks
The Bank is
required to maintain average reserves, in the form of cash and balances with
the Federal Reserve Bank, against its deposit liabilities. In 2012 and 2011,
the reserves were met with vault cash. The Bank is also required to maintain
compensating balances with certain correspondent banks which totaled $76,000 at
December 31, 2012 compared to $126,000 at December 31, 2011.
A summary of
securities, available-for-sale at December 31, 2012 and 2011 is provided below.
The securities available-for-sale portfolio is generally comprised of high
quality debt instruments, such as obligations of the United States government
or agencies thereof and investments in the obligations of municipalities. With
the exception of an approximately $14 million portfolio (fair value) of Texas
municipal utility district bonds, which has its own criteria for investment
(e.g., maximum debt to assessed valuation, minimum assessed valuation and
district size, proximity to employment, etc.), the remaining municipal bonds
were almost all rated A or above by a national rating service at December 31,
2012. The majority of municipal bonds in the portfolio are general obligation
bonds, which can draw upon multiple sources of revenue, including taxes, for
payment. Only a few bonds are revenue bonds, which are dependent upon a single
revenue stream for payment, but they are for critical services such as water
and sewer. In many cases, municipal debt issues are insured or, in the case of
school districts of selected states, backed by specific loss reserves. At December
31, 2012, the fair value of the municipal bond portfolio was concentrated in
the states of Pennsylvania at 40 percent and Texas at 17 percent.
Estimated
Amortized
Gross Unrealized
Fair
(dollars
in thousands)
Cost
Gains
Losses
Value
December 31, 2012
Debt securities:
U.S. Treasury notes
$
5,001
$
31
$
0
$
5,032
U.S. agency
37,000
1,083
(25
)
38,058
U.S. agency mortgage-backed, residential
84,630
3,603
0
88,233
State and municipal
98,744
4,053
(58
)
102,739
Total debt securities
$
225,375
$
8,770
$
(83
)
$
234,062
December 31, 2011
Debt securities:
U.S. Treasury notes
$
10,003
$
131
$
0
$
10,134
U.S. agency
29,593
1,080
0
30,673
U.S. agency mortgage-backed, residential
103,017
3,456
(29
)
106,444
State and municipal
82,272
4,340
(2
)
86,610
Total debt securities
$
224,885
$
9,007
$
(31
)
$
233,861
The amortized
cost and estimated fair value of debt securities at December 31, 2012 by
contractual maturity are shown below. Actual maturities may differ from contractual
maturities if call options on selected debt issues are exercised in the future.
Mortgage-backed securities are included in the maturity categories based on
average expected life.
Gross realized
gains and losses on sales of securities, available-for-sale is shown below.
Realized gains and losses are computed on the basis of specific identification
of the adjusted cost of each security and are shown net as a separate line item
in the income statement.
Years ended December 31,
(dollars
in thousands)
2012
2011
2010
Realized
gains
$
428
$
229
$
108
Realized
losses
(1
)
(104
)
0
Net gains
$
427
$
125
$
108
Securities,
issued by agencies of the federal government, with a carrying value of
$135,348,000 and $136,827,000 on December 31, 2012 and December 31, 2011,
respectively, were pledged to secure public and trust deposits, repurchase
agreements and other short-term borrowings.
The table
below shows gross unrealized losses and fair value, aggregated by investment
category and length of time, for securities that have been in a continuous
unrealized loss position, at December 31, 2012 and 2011.
Less than 12 months
12 months or more
Total
(dollars
in thousands)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized Losses
December
31, 2012
Debt securities:
U.S. agency
$
8,251
$
(25
)
$
0
$
0
$
8,251
$
(25
)
State and municipal
11,565
(58
)
0
0
11,565
(58
)
Total temporarily impaired debt securities, available for sale
$
19,816
$
(83
)
$
0
$
0
$
19,816
$
(83
)
December
31, 2011
Debt securities:
U.S. agency mortgage-backed, residential
$
13,430
$
(29
)
$
0
$
0
$
13,430
$
(29
)
State and municipal
856
(2
)
0
0
856
(2
)
Total temporarily impaired debt securities, available for sale
$
14,286
$
(31
)
$
0
$
0
$
14,286
$
(31
)
The unrealized
losses of $83,000 at December 31, 2012 within the less than 12 months category
were attributable to three U.S. agency securities and twenty-six municipal
securities, all rated A or above by a national rating service.
Securities
available-for-sale are analyzed quarterly for possible other-than-temporary
impairment. The analysis considers, among other factors: 1) whether the
Corporation has the intent to sell its securities prior to market recovery or
maturity; 2) whether it is more likely than not that the Corporation will be
required to sell its securities prior to market recovery or maturity; 3)
default rates/history by security type; 4) third-party securities ratings; 5)
third-party guarantees; 6) subordination; 7) payment delinquencies; 8) nature
of the issuer; and 9) current financial news.
The
Corporation believes that unrealized losses at December 31, 2012 were primarily
the result of changes in market interest rates and that it has the ability to
hold these investments for a time necessary to recover the amortized cost.
Through December 31, 2012, the Corporation has collected all interest and
principal on its investment securities as scheduled. The Corporation believes
that collection of the contractual principal and interest is probable and,
therefore, all impairment is considered to be temporary.
The table
below provides the composition of the loan portfolio at December 31. The
portfolio is comprised of two segments, commercial and consumer loans. The
commercial loan segment is disaggregated by industry class which allows us to
monitor risk and performance. Those industries representing the largest dollar
investment and most risk are listed separately. The other commercial loans
category is comprised of a multitude of industries, including health services,
professional services, public administration, restaurant, service,
transportation, finance, natural resources, recreation and religious
organization. The Corporation has not engaged in sub-prime residential mortgage
originations.
December 31,
(dollars
in thousands)
2012
2011
Builder & developer
$
96,936
$
103,514
Commercial real estate
investor
122,714
118,133
Residential real estate
investor
66,419
62,564
Hotel/Motel
64,948
52,871
Wholesale & retail
70,443
60,328
Manufacturing
40,258
25,976
Agriculture
20,928
17,368
Other
124,834
124,821
Total commercial related
loans
607,480
565,575
Residential mortgages
23,511
21,324
Home equity
65,858
58,390
Other
40,285
48,226
Total consumer related loans
129,654
127,940
Total loans
$
737,134
$
693,515
Concentrations
of credit risk arise when a number of customers are engaged in similar business
activities in the same geographic region or have similar economic features that
could cause their ability to meet contractual obligations to be similarly
affected by changes in economic conditions. Most of the Corporations business
is with customers in York County, Pennsylvania and northern-central Maryland,
specifically Baltimore, Harford and Carroll counties. Although this focus may
pose a concentration risk geographically, the Corporation believes that the
diverse local economy and our detailed knowledge of the customer base lessens
this risk. At December 31, 2012 and 2011, the Corporation had two industry
concentrations that exceeded 10 percent of the total loan portfolio: builder
& developer, which was 13.2 and 14.9 percent of the portfolio at December
31, 2012 and 2011, respectively; and commercial real estate investor, which was
16.6 and 17.0 percent of the portfolio, respectively. Loans to borrowers within
these industries are usually collateralized by real estate.
The principal
balance of outstanding loans to directors, executive officers, principal
shareholders and any associates of such persons was $429,000 at December 31,
2012 and $2,887,000 at December 31, 2011. During 2012, total additions were
$1,307,000 and total repayments and reductions were $3,765,000. Related party
loans are made on substantially the same terms, including interest rates and
collateral, as those prevailing at the time for comparable transactions with
unrelated persons and do not involve more than normal risk of collection. As of
year-end 2012, all loans to this group were current and performing in
accordance with contractual terms.
The
Corporations internal risk rating system follows regulatory guidance as to risk
classifications and definitions. Every approved loan is assigned a risk rating.
Generally, risk ratings for commercial related loans and residential mortgages
held for investment are determined by a formal evaluation of risk factors
performed by the Corporations underwriting staff. For consumer loans, and
commercial loans up to $750,000, the Corporation uses third-party credit
scoring software models for risk rating purposes.
The loan
portfolio is monitored on a continuous basis by loan officers, loan review
personnel and senior management. Adjustments of loan risk ratings are generally
performed by the Special Asset Committee, which includes senior management. The
Committee, which meets monthly, makes changes, as appropriate, to risk ratings
when it becomes aware of credit events such as payment delinquency, cessation
of a business or project, bankruptcy or death of the borrower, or changes in
collateral value.
The
Corporation uses ten risk ratings to grade loans. The first seven ratings,
representing the lowest risk, are combined and given a pass rating. A pass
rating is a satisfactory credit rating, which applies to a loan that is
expected to perform in accordance with the loan agreement and has a low
probability of loss. A loan rated special mention has a potential weakness
which may, if not corrected, weaken the loan or inadequately protect the
Corporations position at some future date. A loan rated substandard is
inadequately protected by the current net worth or paying capacity of the borrower
or of the collateral pledged. A substandard loan has a well-defined weakness
or weaknesses that could jeopardize liquidation of the loan, which exposes the
Corporation to loss if the deficiencies are not corrected. When circumstances
indicate that collection of the loan is doubtful, the loan is risk rated
nonaccrual, the accrual of interest income is discontinued, and any unpaid
interest previously credited to income is reversed. Accordingly, the table
below does not include the regulatory classification of doubtful, nor does it
include the regulatory classification of loss because the Corporation
promptly charges off loan losses.
The table
below presents a summary of loan risk ratings by loan class at December 31,
2012 and 2011.
The table
below presents a summary of impaired loans at December 31, 2012 and 2011.
Generally, impaired loans are loans risk rated substandard and nonaccrual. An
allowance is established for those individual loans that are commercial related
and only those consumer related loans classified as troubled debt
restructurings where the Corporation has doubt as to full recovery of the
outstanding principal balance. The recorded investment represents outstanding
unpaid principal loan balances adjusted for charge-offs.
The table
below presents a summary of average impaired loans and related interest income
that was included in net income for the years ended December 31, 2012 and 2011.
The table that immediately follows for the year ended December 31, 2010 is in a
more highly summarized form pertaining solely to commercial loans. Generally,
impaired loans are loans risk rated substandard and nonaccrual or classified as
troubled debt restructurings. An allowance is established for individual
commercial related loans where the Corporation has doubt as to full recovery of
the outstanding principal balance. Typically, impaired consumer related loans
are partially or fully charged-off obviating the need for a specific allowance.
The recorded investment represents outstanding unpaid principal loan balances
adjusted for charge-offs.
The following
table presents information regarding impaired commercial related loans as of
and for the year ended December 31, 2010.
(dollars in thousands)
2010
Impaired loans without a
related allowance
$
14,892
Impaired loans with a
related allowance
$
6,898
Allowance for impaired
loans
$
1,195
Average recorded
investment in impaired loans
$
26,434
Total interest income
$
697
Cash basis interest income
$
456
The
performance and credit quality of the loan portfolio is also monitored by using
an aging schedule which shows the length of time a payment is past due. The
table below presents a summary of past due loans, current loans and nonaccrual
loans by loan segment and class at December 31, 2012 and 2011.
Loans
classified as troubled debt restructurings (TDRs) are designated impaired and
arise when the Corporation grants borrowers experiencing financial difficulties
concessions that it would not otherwise consider. Concessions granted with
respect to these loans involve an extension of the maturity date or a below
market interest rate relative to new debt with similar credit risk. Generally,
these loans are secured by real estate. If repayment of the loan is determined
to be collateral dependent, the loan is evaluated for
impairment loss based on the fair value of the collateral. For loans that are
not collateral dependent, the present value of expected future cash flows, discounted
at the loans effective interest rate, is used to determine any impairment
loss.
A nonaccrual
TDR represents a nonaccrual loan, as previously defined, which includes an
economic concession. Nonaccrual TDRs are restored to accrual status if principal
and interest payments, under the modified terms, are current for six
consecutive payments after the modification and future principal and interest
payments are reasonably assured. In contrast, an accruing TDR represents a loan
that, at the time of the modification, has a demonstrated history of payments
and with respect to which management believes that future loan payments are
reasonably assured under the modified terms.
The table
below shows loans whose terms have been modified under TDRs during the years
ended December 31, 2012 and 2011. There was no impairment loss recognized on
any of these TDRs, and they are all performing under their modified terms.
There were no defaults of restructured loans during the years ended December
31, 2012 and 2011.
(dollars in thousands)
Number
of
Contracts
Pre-Modification
Outstanding
Recorded
Investments
Post-Modification
Outstanding
Recorded
Investments
The table
below shows the activity in and the composition of the allowance for loan
losses by loan segment and class detail as of and for the years ended December
31, 2012, 2011 and 2010.
The table
below shows the allowance amount required for loans individually evaluated for
impairment and the amount required for loans collectively evaluated for
impairment at December 31, 2012 and 2011.
The following
table presents a summary of premises and equipment as of December 31, 2012 and
2011.
(dollars
in thousands)
2012
2011
Land
$
2,000
$
1,001
Buildings
and improvements
12,716
12,458
Capitalized
leased premises
672
672
Equipment
12,940
12,695
28,328
26,826
Less-accumulated
depreciation/amortization
(16,835
)
(15,965
)
Premises and equipment, net
$
11,493
$
10,861
PeoplesBank
leases certain banking branches under capital and noncancellable operating
leases. The terms include various renewal options and provide for rental
increases based upon predetermined factors. Total lease expenses under
operating leases amounted to $423,000 in 2012, $409,000 in 2011, and $401,000
in 2010.
At December
31, 2012, future minimum lease payments for these leases and a capital lease
are payable as follows:
(dollars
in thousands)
Capital
Lease
Operating
Leases
2013
$
102
$
396
2014
102
323
2015
102
187
2016
0
81
2017
0
81
Thereafter
0
55
Total future minimum lease payments
306
$
1,123
Less
interest
(46
)
Present value of minimum lease payments
$
260
NOTE 7-Deposits
The
composition of deposits as of December 31, 2012 and 2011 is shown below.
The following
table presents scheduled maturities of time deposits by year as of December 31,
2012.
(dollars
in thousands)
2012
2013
$
184,529
2014
99,446
2015
56,721
2016
23,695
2017
43,953
Thereafter
3,435
Total time deposits
$
411,779
NOTE 8-Short-term Borrowings and Long-term
Debt
The schedule
below provides a summary of short-term borrowings that consist of securities
sold under agreements to repurchase, federal funds purchased and other
borrowings. Securities sold under agreements to repurchase are overnight
borrowings between PeoplesBank and its commercial depositors and are subject to
daily repricing. Federal Funds purchased from correspondent banks mature in one
business day and reprice daily based on the Federal Funds rate. Other
short-term borrowings consist of credit available through the Federal Home Loan
Bank of Pittsburgh (FHLBP), Atlantic Central Bankers Bank (ACBB), M&T Bank
and the Federal Reserve Discount Window. PeoplesBank maintains a line-of credit
(Open Repo Plus) with the FHLBP which is a revolving term commitment used on an
overnight basis. The term of this commitment may not exceed 364 days, and it
reprices daily at market rates. PeoplesBank has approximately $19 million of
collateralized borrowing availability at the Federal Reserve Discount Window.
The following
table presents a summary of aggregate short-term borrowings as of and for the
years ended December 31, 2012, 2011 and 2010.
2012
2011
2010
(dollars
in thousands)
Repurchase agreements
Short-term borrowings
Repurchase agreements
Short-term borrowings
Repurchase agreements
Short-term borrowings
Amount outstanding at end of year
$
19,356
$
0
$
10,257
$
0
$
6,763
$
0
Weighted average interest rate at end of year
0.56
%
0
%
0.79
%
0
%
0.99
%
0
%
Maximum amount outstanding at any month-end
$
26,166
$
0
$
12,647
$
0
$
10,623
$
0
Daily average amount outstanding
$
20,843
$
0
$
11,546
$
0
$
8,803
$
0
Approximate weighted average interest rate for the year
0.58
%
0
%
0.99
%
0
%
1.00
%
0
%
Securities
that serve as collateral for securities sold under agreements to repurchase and
pledged to provide access to the Federal Reserve Bank Discount Window and other
short-term borrowing remain in available-for-sale securities. The fair value of
these securities was $45,696,000 and $40,277,000 on December 31, 2012 and 2011,
respectively.
In June 2012,
PeoplesBank restructured (i.e., extended) two outstanding $5 million FHLB
advances ($10 million total) to lock in low rates as a hedge against the
possibility of rising market interest rates in the future. This transaction
resulted in a $235,000 prepayment penalty that, under accounting rules, was
deferred and embedded in the rates on the restructured advances where it will
be recognized as interest expense over their respective repayment terms. The $5
million FHLB advance originally maturing December 2013 with a fixed rate of
interest of 2.39 percent was extended to June 2019 with a fixed rate of
interest of 2.10 percent. The $5 million FHLB advance originally maturing July
2014 with a fixed rate of interest of 1.38 percent was extended to June 2018
with a fixed rate of interest of 1.87 percent. The impact of the debt
restructure on current period earnings is immaterial.
The following
table presents a summary of long-term debt as of December 31, 2012 and 2011.
(dollars in thousands)
2012
2011
PeoplesBank obligations:
FHLBP
Due January 2012, 2.34%
$
0
$
10,000
Due June 2012, 4.25% amortizing
0
170
Due December 2012, 1.91%
0
5,000
Due May 2013, 3.46% amortizing
245
818
Due December 2013, 2.39%
0
5,000
Due July 2014, 1.38%
0
5,000
Due July 2015, 1.90%
5,000
5,000
Due July 2016, 2.35%
5,000
5,000
Due June 2018, 1.87%
5,000
0
Due June 2019, 2.10%
5,000
0
Total FHLBP
$
20,245
$
35,988
Capital lease obligation
260
330
Codorus Valley Bancorp, Inc. obligations:
Junior subordinated debt
Due 2034, 2.33%, floating rate based on 3 month
LIBOR plus 2.02%, callable quarterly
3,093
3,093
Due 2036, 1.88%, floating rate based on 3 month
LIBOR plus 1.54%, callable quarterly
7,217
7,217
Total long-term debt
$
30,815
$
46,628
PeoplesBanks
long-term debt obligations to FHLBP are fixed rate instruments. Under terms of
a blanket collateral agreement with the FHLBP, the line-of-credit and long term
advances are secured by FHLBP stock and qualifying loan receivables,
principally real estate secured loans. As of December 31, 2012, total unused
credit with the FHLBP was approximately $166 million.
In June 2006,
Codorus Valley formed CVB Statutory Trust No. 2, a wholly-owned special purpose
subsidiary whose sole purpose was to facilitate a pooled trust preferred debt
issuance of $7,217,000. In November 2004, Codorus Valley formed CVB Statutory
Trust No. 1 to facilitate a pooled trust preferred debt issuance of $3,093,000.
The Corporation owns all of the common stock of these nonbank subsidiaries, and
the debentures are the sole assets of the Trusts. The accounts of both Trusts
are not consolidated for financial reporting purposes in accordance with FASB
ASC 810. For regulatory capital purposes, all of the Corporations trust
preferred securities qualified as Tier 1 capital for all reported periods.
Trust preferred securities are subject to capital limitations under the FDICs
risk-based capital guidelines. The Corporation used the net proceeds from these
offerings to fund its operations.
Total
long-term debt maturities over the next five years are as follows: $323,000 in
2013, $86,000 in 2014, $5,096,000 in 2015, $5,000,000 in 2016 and $0 in 2017.
NOTE 9-Regulatory Matters
The
Corporation is subject to restrictions on the payment of dividends to its
shareholders pursuant to the Pennsylvania Business Corporation Law of 1988, as
amended (BCL). The BCL prohibits dividend payments if such payment would render
the Corporation insolvent or result in negative net worth. Federal and state
banking regulations place certain restrictions on dividends paid and loans or
advances made by PeoplesBank to the Corporation. The amount of total dividends,
which may be paid at any date, is generally limited to the retained earnings of
PeoplesBank. Furthermore, dividend payments would be prohibited if the effect
thereof would cause PeoplesBanks capital to be reduced below applicable minimum
capital requirements as discussed below. Loans and advances by PeoplesBank to affiliates,
including the Corporation, are limited to 10 percent of PeoplesBanks capital
stock and contributed capital on a secured basis.
The
Corporation and PeoplesBank are subject to various regulatory capital
requirements. Failure to meet minimum capital requirements can result in
certain mandatory and possible additional discretionary actions by regulators
that, if imposed, could have a material effect on the Corporations financial
statements. Under capital adequacy guidelines and the regulatory framework for
prompt corrective action, the Corporation and PeoplesBank must meet specific
capital guidelines that involve quantitative measures of assets, liabilities, and
certain off-balance sheet items as calculated under regulatory accounting
practices. The capital amounts and classification are also subject to
qualitative judgments by the regulators.
Quantitative
measures established by regulators to ensure capital adequacy require the
Corporation and PeoplesBank to maintain minimum ratios, as set forth below, to
total and Tier 1 capital as a percentage of risk-weighted assets, and of tier 1
capital to quarter-to-date average assets (leverage ratio). In December 2012,
PeoplesBank received the most recent notification from the Federal Deposit
Insurance Corporation, which categorized PeoplesBank as well capitalized, as
of September 30, 2012, under the regulatory framework for prompt corrective
action. There are no conditions or events since that notification that
management believes would change PeoplesBanks well capitalized category. As of
December 31, 2011, PeoplesBank was also categorized as well capitalized.
Preferred stock issued under the US
Treasurys Small Business Lending Fund Program
On August 18,
2011, as part of the Treasury Small Business Lending Fund (SBLF) program, the
Corporation entered into a Securities Purchase Agreement (SBLF Purchase
Agreement) with the United States Department of the Treasury (Treasury)
pursuant to which the Corporation sold to the Treasury, for an aggregate
purchase price of $25 million, 25,000 shares of senior non-cumulative,
perpetual preferred stock, Series B, $1,000 liquidation value, $2.50 par value.
Generally, the preferred stock is non-voting and qualifies as Tier 1 regulatory
capital. The SBLF agreement imposes limits on the ability of the Corporation to
pay dividends and repurchase shares of common stock if it fails to declare and
pay quarterly dividends on the SBLF preferred stock. The dividend rate can
fluctuate on a quarterly basis during the first 10 quarters during which the
SBLF preferred stock is outstanding, based upon changes in the level of
Qualified Small Business Lending or QSBL (as defined in the Purchase
Agreement) by the Bank. Based upon the increase in the Banks level of QSBL
over the baseline level calculated under the terms of the Purchase Agreement,
the dividend rate for the initial dividend period was set at 5 percent. For the
second through ninth calendar quarters, the dividend rate may be adjusted
between one percent (1%) and five percent (5%) per annum to reflect the amount
of change in the Banks level of QSBL. The annualized dividend rate in effect
on December 31, 2012 was 1 percent, compared to 5 percent on December 31, 2011.
The decrease in the dividend rate was the result of an increase in QSBL above
the baseline. For the tenth calendar quarter through four and one half years
after issuance, the dividend rate will be fixed at between one percent (1%) and
seven percent (7%) based upon the increase in QSBL as compared to the baseline.
After four and one half years from issuance, the dividend rate will increase to
9% (including a quarterly lending incentive fee of 0.5%). Information about
SBLF preferred stock is disclosed in Note 10Shareholders Equity in the
Corporations Annual Report on Form 10-K for the year ended December 31, 2011.
Preferred stock and common stock warrant
issued under the US Treasurys Capital Purchase Program
On August 18,
2011, the Corporation entered into a repurchase letter agreement with the
Treasury providing for the redemption of the CPP preferred stock. Pursuant to
the SBLF Purchase Agreement, approximately $16,507,000 of the proceeds of the
sale of the SBLF preferred stock was used to redeem the 16,500 shares of the
Series A CPP preferred stock plus accrued and unpaid dividends. Upon
redemption, the remaining $379,000 preferred stock discount was recorded as a
reduction to third quarter 2011 net income available to common shareholders.
Additionally, the additional paid-in-capital account was reduced by
approximately $39,000 pertaining to issuance costs for the CPP preferred stock.
As a result of the redemption, the Corporation is no longer subject to the
restrictions imposed by the CPP. On September 28, 2011, the Corporation
repurchased the outstanding CPP common stock warrant for $526,604 from the US
Treasury which was recorded as a reduction to additional paid-in-capital.
Change in authorized shares of common stock
On May 15,
2012, as previously reported on Form 8-K, the Corporations shareholders
approved the Board of Directors proposal to amend the Corporations Articles
of Incorporation to increase the aggregate number of shares of common stock
which the Corporation may issue from 10 million to 15 million shares. The
increase in the number of authorized shares provides flexibility of action in
the future and enables the Corporation to act promptly in connection with stock
splits, stock dividends, acquisitions, financings and such other corporate
matters involving the issuance of common stock as the Board of Directors may
deem advisable. There are no present plans for the use of the additional
shares.
The
Corporation maintains a Dividend Reinvestment and Stock Purchase Plan (Plan). Shareholders of common stock may participate in the Plan, which allows
additional shares of common stock to be purchased with reinvested dividends at
prevailing market prices. The Plan also permits participants to make additional
voluntary cash payments to purchase shares of the Corporations common stock.
Since August 2008, purchases have been made from the Corporation from its
authorized, but unissued, common stock. All shares reserved for the Plan were
issued as of December 31, 2011. On January 26, 2012, an additional 150,000
shares were reserved for issuance under the Plan.
Common stock dividend
Periodically,
the Corporation distributes stock dividends on its common stock. The
Corporation distributed a 5 percent common stock dividend on December 11, 2012
which resulted in the issuance of 211,564 additional common shares.
NOTE 11- Benefit Plans
Defined Contribution Plan PeoplesBank maintains a 401(k) savings and investment
plan covering substantially all employees. Under the plan, employees can
contribute a percentage of their compensation subject to certain limits based
on federal tax law. The Bank makes matching contributions of 50 percent up to
the first 6 percent of an employees compensation contributed to the plan. Employee
contributions vest immediately and employer contributions vest 100% after three
years of service. The Banks expense for the 401(k) savings and investment plan
was $237,000 for 2012, $207,000 for 2011, and $220,000 for 2010.
Supplemental Benefit Plans PeoplesBank maintains supplemental retirement plans
for selected executives. The expense associated with these plans was
approximately $296,000 for 2012, $267,000 for 2011, and $316,000 for 2010. The
accrued liability for the supplemental retirement plans was $3,475,000 at
December 31, 2012 and $3,179,000 at December 31, 2011. Income earned from bank
owned life insurance policies was used to finance the cost of supplemental
benefit plans, and provide a tax-exempt return to PeoplesBank.
Directors Post Retirement Split-dollar Life
Insurance Benefit PeoplesBank recorded net income of $1,000
in 2012 and net expense of $28,000 and $19,000 in 2011 and 2010, respectively,
on bank owned life insurance policies with a post retirement split-dollar life
insurance benefit. The accrued liability for the post retirement split-dollar
benefit was $235,000 at December 31, 2012 and $236,000 at December 31, 2011.
FASB ASC Topic
718 requires that the fair value of equity awards granted to employees be
recognized as compensation expense over the period during which an employee is
required to provide service in exchange for such awards.
The following
table presents information about the Corporations stock plans, adjusted for
stock dividends distributed, as of December 31, 2012.
Plan
Types of grants
Number of
shares
reserved (2)
Number of
outstanding
options (2)
Number of shares
available for future
issuance (2)
2000 Stock Incentive
Plan (2000 Plan) (1)
Stock options
Stock appreciation rights
Restricted stock
129,301
99,571
0
2007 Long Term
Incentive Plan (LTIP)
Stock options
Stock appreciation rights
Restricted stock
Stock awards
384,107
154,613 (3)
229,494
2007 Employee Stock
Purchase Plan (ESPP)
Stock option
172,668
0
172,668
Employee Stock
Bonus Plan (ESBP)
Stock awards
15,007
0
15,007
(1)
All options available for
grant under the 2000 Plan have been granted.
(2)
Shares/options are subject
to adjustment in the event of specified changes in the Corporations capital
structure.
(3)
Amount includes 27,749 of
unvested options.
In May 2012,
the amendments were made to the LTIP and the ESPP to provide an additional
250,000 shares and 47,805 shares of common stock for future issuance,
respectively.
Stock Incentive Plans (2000 Plan and LTIP)
Options
awarded under these plans to date have been granted with an exercise price
equal to the fair value of the stock on the grant date, a minimum vesting
period of six months and an expiration period of ten years. Restricted stock
awards under these plans have been granted at fair value and with 50% of the
shares vesting in two years and 50% in three years. Upon exercise and/or award,
the Corporation has historically issued authorized, but unissued, common stock
to satisfy the options/awards.
The following
table presents compensation expense and related tax benefits for stock option
and restricted stock awards recognized on the consolidated statement of income.
(dollars
in thousands)
2012
2011
2010
Compensation
expense
$
270
$
210
$
132
Tax benefit
(67
)
(52
)
(31
)
Net income
effect
$
203
$
158
$
101
The tax
benefit shown in the preceding table is less than the benefit that would be
calculated using the Corporations 34% statutory Federal tax rate. Under FASB
ASC Topic 718, tax benefits are only recognized over the vesting period for
options that ordinarily will generate a tax deduction when exercised
(non-qualified stock options) and restricted stock awards.
The
Corporation granted 11,899 non-qualified stock options, 15,850 incentive stock
options, and 11,290 shares of restricted stock from the LTIP in 2012. In 2011,
the Corporation granted 23,557 non-qualified stock options, 27,925 incentive
stock options, and 18,115 shares of restricted stock from the LTIP. In 2010,
the Corporation granted 21,726 non-qualified stock options, 26,148 incentive
stock options, and 18,306 shares of restricted stock from the LTIP. The
weighted average grant-date fair value of options granted was $4.74 in 2012,
$2.62 in 2011 and $2.89 in 2010. The fair value of the options awarded is
estimated on the date of grant using the Black-Scholes valuation model, which
is dependent upon certain weighted-average assumptions as presented below.
2012
2011
2010
Expected
life (in years)
7.43
5.63
7.09
Risk-free
interest rate
1.10
%
0.97
%
1.72
%
Expected
volatility
43.84
%
48.60
%
44.20
%
Expected
dividend yield
3.19
%
3.50
%
3.50
%
The expected
life of the options was estimated based on historical behavior and represents
the period of time that options granted are expected to be outstanding. The
risk-free interest rate is the U.S. Treasury rate commensurate with the
expected life of the options on the grant date. Volatility of the Corporations
stock price was based on historical volatility for the period commensurate with
the expected life of the options. Dividend yield was based on dividends for the
most current year divided by the average market price for the most current
year.
A summary of
stock options activity from the option and stock incentive plans, adjusted for
stock dividends distributed, is shown below.
Options
Weighted Average Exercise Price Per Share
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value ($000)
Outstanding
at January 1, 2012
259,469
$
9.99
6.6 years
$
65
Granted
27,749
14.75
Exercised
(29,096
)
8.66
Cancelled
(3,938
)
7.86
Expired
0
0.00
Outstanding
at December 31, 2012
254,184
$
10.70
5.8 years
$
1,107
Exerciseable
at December 31, 2012
226,435
$
10.20
5.3 years
$
1,098
The following
table presents information about stock options exercised for the years ended
December 31, 2012, 2011 and 2010.
The following
table presents information about non-vested options and restricted stock,
adjusted for stock dividends distributed, for the year ended December 31, 2012.
Stock Options
Restricted Stock
Options
Weighted Average Exercise Price Per Share
Shares
Weighted Average Grant Date Fair Value
Non-vested
at January 1, 2012
55,137
$
7.99
44,575
$
7.90
Vested
(51,199
)
7.99
(16,261
)
7.54
Cancelled
(3,938
)
7.86
0
0.00
Granted
27,749
14.75
11,290
14.75
Non-vested
at December 31, 2012
27,749
$
14.75
39,604
$
10.00
As of December
31, 2012, total unrecognized compensation cost related to non-vested options
and restricted stock was $378,000. The cost is expected to be recognized over a
weighted average period of 1.0 years.
Employee Stock Purchase Plan (ESPP)
Under the
ESPP, eligible employees can purchase common stock of the Corporation at 85% of
the fair market value of the stock at the beginning or end of the six-month
offering period, whichever is lower. The ESPP is considered to be a
compensatory plan.
The following
table presents information about the ESPP for the years ended December 31,
2012, 2011 and 2010.
(dollars
in thousands)
2012
2011
2010
ESPP shares
purchased
10,784
11,257
14,363
Average
purchase price per share (85% of market value)
$
8.969
$
7.467
$
5.242
Compensation
expense recognized (in thousands)
$
24
$
19
$
25
In all periods
shown above, the Corporation has issued authorized, but unissued, common stock
to satisfy the purchase.
Employee Stock Bonus Plan (ESBP)
The ESBP is
administered by nonemployee members of the Corporations Board of Directors,
under which the Corporation may issue shares of its common stock to employees
as performance based compensation. There were no shares of common stock issued
under the ESBP in 2012 and 2011 and, 81 shares of common stock were issued in
2010.
The following
table presents the provision for income taxes for the years ended December 31,
2012, 2011 and 2010.
(dollars
in thousands)
2012
2011
2010
Current tax
provision
Federal
$
2,486
$
2,440
$
2,099
State
232
234
178
Total current tax provision
2,718
2,674
2,277
Deferred tax
expense (benefit)
Federal
419
(979
)
(956
)
State
(34
)
(78
)
(188
)
Total deferred tax expense (benefit)
385
(1,057
)
(1,144
)
Total tax provision
$
3,103
$
1,617
$
1,133
The provision
for income taxes includes $145,000, $42,000 and $37,000 of applicable income
tax expense related to net investment security gains in 2012, 2011 and 2010,
respectively.
The
differences between the effective income tax rate and the Federal statutory
income tax rate for the years ended December 31, 2012, 2011 and 2010 are shown
below.
Significant
components of the Corporations deferred tax asset, included in other assets as
of December 31, 2012 and 2011 are shown below.
(dollars
in thousands)
2012
2011
Deferred tax assets
Allowance for loan losses
$
3,327
$
3,099
Deferred compensation
1,364
1,227
Low-income housing partnerships
580
601
Tax credit carryforward
75
545
Foreclosed real estate
1,327
1,738
Other
72
60
Total deferred tax assets
6,745
7,270
Deferred tax liabilities
Deferred loan fees
436
514
Depreciation
221
254
Net unrealized gains on available-for-sale securities
2,953
3,051
Other
325
354
Total deferred tax liabilities
3,935
4,173
Net deferred tax assets
$
2,810
$
3,097
The
Corporation has low-income housing tax credit carryforwards that expire through
2032. Based on the
level of historical income projections for future taxable income over the
periods in which the deferred tax assets are deductible, management believes it
is more likely than not that the Corporation will realize the benefits of its
deferred tax assets as of December 31, 2012.
NOTE 14-Commitments to Extend Credit
In the normal
course of business, the Corporation is a party to various financial
transactions that are not funded as of the balance sheet date. Off-balance sheet
financial instruments, which enable Bank customers to meet their financing
needs, are comprised mainly of commitments to extend credit and standby letters
of credit. Standby letters of credit are written conditional commitments issued
by PeoplesBank to guarantee the performance of a customer to a third party. The
credit and market risk involved in issuing letters of credit is essentially the
same as that involved in extending other loan commitments. To manage these
risks, the Corporation uses the same credit policies in making commitments and
conditional obligations as it does for on-balance sheet instruments and
requires collateral to support these letters of credit as deemed necessary.
Management believes that the proceeds obtained through a liquidation of such
collateral would be sufficient to cover the maximum potential amount of future
payments required under the corresponding guarantees. The amount of the
liability as of December 31, 2012 and 2011, for guarantees under standby
letters of credit issued was not material. Normally, commitments to extend
credit and letters of credit have fixed expiration dates or termination
clauses, have specific rates and are for specific purposes. Many of the
commitments are expected to expire without being extended; therefore, total
commitment amounts do not necessarily represent future cash requirements.
A summary of
outstanding commitments at December 31, 2012 and 2011 is shown below.
(dollars
in thousands)
2012
2011
Commitments to grant loans
Fixed rate
$
50,958
$
14,485
Variable rate
23,254
7,732
Unfunded commitments of
existing loans
Fixed rate
$
42,003
$
26,731
Variable rate
115,035
105,743
Standby letters of credit
$
17,064
$
11,532
NOTE 15-Contingent Liabilities
Periodically,
the Corporation and its subsidiary Bank may be defendants in legal proceedings
relating to the conduct of their banking business. Most of such legal
proceedings are normal parts of the banking business and, in managements
opinion, do not materially affect the financial position or results of
operations of the Corporation.
Note 16Fair Value Measurements and Fair
Values of Financial Instruments
The
Corporation uses its best judgment in estimating the fair value of the
Corporations assets and liabilities; however, there are inherent weaknesses in
any estimation technique. Therefore, the fair value estimates herein are not
necessarily indicative of the amounts that could be realized in sales
transactions on the dates indicated. The estimated fair value amounts have been
measured as of their respective period-ends and have not been re-evaluated or
updated for purposes of these financial statements subsequent to those
respective dates. As such, the estimated fair values subsequent to the
respective reporting dates may be different than the amounts reported at each
period end.
Fair value is
defined as the price that would be received to sell an asset or paid to
transfer a liability in the principal or most advantageous market for an asset
or liability in an orderly transaction (that is, not a forced liquidation or
distressed sale) between market participants at the measurement date. GAAP
establishes a fair value hierarchy that prioritizes the use of inputs used in
valuation methodologies into the following three levels:
Level 1:
Inputs to the valuation methodology are quoted prices, unadjusted, for
identical assets or liabilities in active markets. A quoted price in an
active market provides the most reliable evidence of fair value and shall be
used to measure fair value whenever available.
Level 2:
Inputs to the valuation methodology include quoted prices for similar assets
or liabilities in active markets; inputs to the valuation methodology include
quoted prices for identical or similar assets or liabilities in markets that
are not active; or inputs to the valuation methodology that utilize
model-based techniques for which all significant assumptions are observable
in the market.
Level 3:
Inputs to the valuation methodology are unobservable and significant to the
fair value measurement; inputs to the valuation methodology that utilize
model-based techniques for which significant assumptions are not observable
in the market; or inputs to the valuation methodology that require
significant management judgment or estimation, some of which may be
internally developed.
Since
management maximizes the use of observable inputs and minimizes the use of
unobservable inputs when determining fair value, an assets or liabilitys
level within the fair value hierarchy is based on the lowest level of input
that is significant to the fair value measurement. Management reviews and
updates the fair value hierarchy classifications on a quarterly basis.
Assets Measured at Fair Value on a Recurring
Basis
Securities available-for-sale
The fair
values of investment securities were measured using information from a
third-party pricing service. The pricing service uses quoted market prices on
nationally recognized securities exchanges (Level 1), or matrix pricing (Level
2), which is a mathematical technique, used widely in the industry to value
debt securities without relying exclusively on quoted market prices for the
specific securities but rather by relying on the securities relationship to
other benchmark quoted prices. At least annually, the Corporation reviews a
random sample of the pricing information received from the third-party pricing
service by comparing it to price quotes from third-party brokers. Historically,
price deviations have been immaterial.
Fair Value Measurements
(dollars in thousands)
Total
(Level 1)
Quoted Prices in
Active Markets for
Identical Assets
(Level 2)
Significant Other
Observable Inputs
(Level 3)
Significant Other
Unobservable Inputs
December
31, 2012
Securities available-for-sale:
U.S. Treasury notes
$
5,032
$
5,032
$
0
$
0
U.S. agency
38,058
0
38,058
0
U.S. agency mortgage-backed, residential
88,233
0
88,233
0
State and municipal
102,739
0
102,739
0
December
31, 2011
Securities available-for-sale:
U.S. Treasury notes
$
10,134
$
10,134
$
0
$
0
U.S. agency
30,673
0
30,673
0
U.S. agency mortgage-backed, residential
106,444
0
106,444
0
State and municipal
86,610
0
86,610
0
Assets Measured at Fair Value on a
Nonrecurring Basis
Impaired loans Impaired loans are those that are accounted for under
FASB ASC Topic 310, in which the Corporation has measured impairment generally
based on the fair value of the loans collateral. Fair value is generally
determined based upon independent third-party appraisals of the properties, or
discounted cash flows based upon the expected proceeds. These loans are
included as Level 3 fair values, based on the lowest level of input that is
significant to the fair value measurements. At December 31, 2012, the fair
value consists of loan balances of $4,493,000, net of a valuation allowance of
$1,162,000 and charge-offs of $2,605,000, compared to loan balances of $4,222,000,
net of a valuation allowance of $397,000 and charge-offs of $2,485,000, at
December 31, 2011.
Foreclosed Real Estate Other real estate property acquired through
foreclosure is initially recorded at fair value of the property at the transfer
date less estimated selling cost. Subsequently, other real estate owned is
carried at the lower of its carrying value or the fair value less estimated
selling cost. Fair value is usually determined based upon an independent
third-party appraisal of the property or occasionally upon a recent sales
offer. At December 31, 2012, the carrying value of foreclosed real estate with
a valuation allowance was $2,779,000 ($6,491,000 less a $3,712,000 allowance).
At December 31, 2011, the carrying value of foreclosed real estate with a
valuation allowance was $14,093,000 ($16,488,000 less a $2,395,000 allowance).
Fair Value Measurements
(dollars in thousands)
Total
(Level 1)
Quoted Prices in
Active Markets for
Identical Assets
(Level 2)
Significant Other
Observable Inputs
(Level 3)
Significant Other
Unobservable Inputs
December
31, 2012
Impaired loans
$
4,493
$
0
$
0
$
4,493
Foreclosed real estate
2,779
0
0
2,779
December
31, 2011
Impaired loans
$
4,222
$
0
$
0
$
4,222
Foreclosed real estate
14,093
0
0
14,093
The following
table presents additional quantitative information about assets measured at
fair value on a nonrecurring basis and for which the Corporation has utilized
Level 3 inputs to determine fair value:
Quantitative Information about Level 3 Fair Value
Measurements
(dollars in thousands)
Fair Value
Estimate
Valuation
Techniques
Unobservable
Input
Range
December
31, 2012
Impaired loans
$
4,493
Appraisal
(1)
Appraisal
adjustments (2)
20%
- 30%
Foreclosed real estate
2,779
Appraisal
(1), (3)
(1)
Fair value is generally
determined through independent appraisals, which generally include various
level 3 inputs that are not identifiable.
(2)
Appraisals may be adjusted
downward by the Corporations management for qualitative factors such as
economic conditions, and estimated liquidation expenses. The range of
liquidation expenses and other appraisal adjustments are presented as a
percent of the appraisal.
(3)
May include qualitative
adjustments by the Corporations management and estimated liquidation
expenses.
Disclosures about Fair Value of Financial
Instruments
The following
presents the carrying amount and estimated fair value of the Corporations
financial instruments as of December 31, 2012 and 2011 and placement in the
fair value hierarchy at December 31, 2012.
Cash and cash equivalents The carrying amount is a reasonable estimate of fair
value.
Securities available for sale The fair value of securities available for sale is
determined in accordance with the methods described under FASB ASC Topic 820 as
described above.
Restricted investment in bank stocks The carrying amount of restricted investment in bank
stocks is a reasonable estimate of fair value. The Company is required to
maintain minimum investment balances in these stocks, which are not actively
traded and therefore have no readily determinable market value.
Loans held for sale
The fair value of loans held for sale is determined, when possible, using
quoted secondary-market prices. If no such quoted prices exist, the fair value
of a loan is determined using quoted prices for a similar loan or loans,
adjusted for the specific attributes of that loan.
Loans, net
The fair value of loans is estimated using discounted cash flow analyses using
the current interest rates at which similar loans would be made to borrowers
with similar credit ratings and for the same remaining maturities. Loans were
first segregated by type such as commercial, real estate, and consumer, and
were then further segmented into fixed and variable rate. Projected future cash
flows are calculated based upon contractual maturity or call dates. Generally,
variable rate loans that reprice frequently have no significant change in
credit risk; fair value is based on carrying value.
Interest receivable The carrying value of interest receivable is a
reasonable estimate of fair value.
Deposits The fair value of demand deposits, savings accounts
and money market deposits is the amount payable on demand at the reporting
date. The fair values of time deposits are estimated using a discounted cash
flow analyses. The discount rates used are based on rates currently offered for
deposits with similar remaining maturities. The fair values of variable rate
time deposits that reprice frequently are based on carrying value. The fair
values of time deposit liabilities do not take into consideration the value of
the Companys long-term relationships with depositors, which may have
significant value.
Short-term borrowings For theses short-term instruments, the carrying amount
is a reasonable estimate of fair value.
Long-term debt
Long-term debt includes FHLB advances (Level 2) and junior subordinated debt
(Level 3). The fair value of FHLB advances are estimated using discounted cash
flow analysis, based on quoted prices for new FHLB advances with similar credit
risk characteristics, terms and remaining maturity. These prices are obtained
from this active market and represent a market value that is deemed to
represent the transfer price if the liability were assumed by a third party.
The fair value of junior subordinated debt is estimated using discounted cash
flow analysis, based on market rates and spread characteristics of similar debt
with similar credit risk characteristics, terms and remaining maturity.
Interest payable The carrying value of interest payable is a reasonable
estimate of fair value.
Off-balance sheet instruments Off-balance sheet instruments consist of lending
commitments and letters of credit are based on fees currently charged in the
market to enter into similar arrangements, taking into account the remaining
terms of the agreements and counterparties credit standing. These amounts were
not considered material.
Report of Independent Registered
Public Accounting Firm
Board of Directors and Stockholders
of Codorus Valley Bancorp, Inc
York, Pennsylvania
We have audited the accompanying consolidated balance
sheets of Codorus Valley Bancorp, Inc and subsidiaries (the Corporation) as
of December 31, 2012 and 2011, and the related consolidated statements of
income, comprehensive income, changes in shareholders equity, and
cash flows for each of the years in the three-year period ended December 31,
2012. These consolidated financial statements are the responsibility of the
Corporations management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements
referred to above present fairly, in all material respects, the consolidated
financial position of Codorus Valley Bancorp, Inc. and subsidiaries as of
December 31, 2012 and 2011, and the consolidated results of their operations
and their cash flows for each of the years in the three-year period ended
December 31, 2012, in conformity with accounting principles generally accepted
in the United States of America.
Item 9: Changes in and
disagreements with accountants on accounting and financial disclosure
None.
Item 9A: Controls and procedures
The Corporation maintains controls and procedures
designed to ensure that information required to be disclosed in the reports
that it files or submits under the Securities Exchange Act of 1934 is recorded,
processed, summarized and reported within the time periods specified in the
rules and forms of the SEC. Based upon their evaluation of those controls and
procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the
Exchange Act performed as of December 31, 2012, the Chief Executive and Chief
Financial Officers of the Corporation concluded that the Corporations
disclosure controls and procedures were adequate. There was no change in the
Corporations internal control over financial reporting that occurred during
the quarter ended December 31, 2012 that materially affected, or is reasonably
likely to materially affect, the Corporations internal control over financial
reporting. A Report of Managements Assessment of Internal Control Over
Financial Reporting is located on page 42 of this Annual Report.
The Chief Executive and Chief Financial Officers are
not aware of any changes in internal controls over financial reporting or in
other factors that has materially affected these controls subsequent to
December 31, 2012, the date of their evaluation.
In July 2010, the Dodd-Frank Wall Street Reform and
Consumer Protection Act was enacted, which among other things, exempted
non-accelerated SEC filers such as the Corporation, i.e., companies with a
public float below $75 million, from the requirement of the Sarbanes-Oxley
Acts section 404(b) external auditors attestation of internal controls over
financial reporting.
For 2012, PeoplesBank became subject to FDIC
regulation 363.3(b), which requires depository institutions with total assets
of $1 billion or more to engage an independent public accountant to examine,
attest to, and report on the assertion of management concerning the
institutions internal control structure and procedures for financial
reporting. The FDICs independent attestation requirement is essentially
equivalent to the SECs independent attestation requirement under section
404(b) of the Sarbanes-Oxley Act.
Item 10: Directors, executive officers and corporate governance
Information appearing in the Proxy Statement relating
to the 2013 Annual Meeting of Shareholders to be held May 21, 2013 (Proxy
Statement), under the heading, Proposal 1-Election of Directors: and the
caption Information about Nominees and Continuing Directors, under the
heading Security Ownership of Directors, Nominees, Executive Officers and
Certain Beneficial Owners and the caption Executive Officers, and under the
heading Governance of the Corporation is incorporated by reference in
response to this item.
The Corporation has adopted a Code of Business Conduct
and Ethics (Code of Ethics) as defined in Item 406 of Regulation S-K. The Code
of Ethics was filed as Exhibit 14 to a Form 10-Q, filed with the SEC on
November 13, 2012, and is incorporated by reference in response to this item.
The Code of Ethics is also accessible on PeoplesBanks website at
www.peoplesbanknet.com, select Investor Relations, then select Corporate
Information and then select Governance Documents.
Information appearing in the Proxy Statement, under
the heading Section 16(a) Beneficial Ownership Reporting Compliance is
incorporated by reference in response to this item.
Item 11: Executive compensation
Information appearing in the Proxy Statement, under
the captions Executive Compensation and Director Compensation is
incorporated by reference in response to this item.
Item 12: Security ownership of certain beneficial
owners and management and related shareholder matters
Information appearing on page 12 of this report under
the caption Securities Authorized for Issuance under Equity Compensation
Plans and in the Proxy Statement, under the caption Security Ownership of
Directors, Nominees, Executive Officers, and Certain Beneficial Owners is
incorporated by reference in response to this item.
Item 13: Certain relationships and related
transactions, and director independence
Information appearing in the Proxy Statement, under
the captions Related Person Transactions and Governance of the Corporation
is incorporated by reference in response to this item.
Item 14: Principal accounting fees and services
Information appearing in the Proxy Statement, under
the caption Independent Registered Public Accounting Firm, is incorporated by
reference in response to this item.
Required financial statement schedules are omitted.
This information is either not applicable, not required or is shown in the
respective financial statements or in the notes thereto.
3.
Exhibits filed as part of 10-K pursuant to Item 601
of Regulation S-K.
Pursuant to
the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Codorus
Valley Bancorp, Inc. (Registrant)
/s/ Larry J.
Miller
Larry J.
Miller, Vice-Chairman,
Date: March
26, 2013
President
and Chief Executive Officer
Pursuant to
the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the Registrant and in the
capacities and on the dates indicated.
Amended
Articles of Incorporation (Incorporated by reference to Exhibit 3(i) to the
Registrants Quarterly Report on Form 10-Q for September 30, 2012, filed with
the Commission on November 13, 2012)
3.2
Amended
By-laws (Incorporated by reference to Exhibit 3(ii) to the Registrants
Current Report on Form 8-K, filed with the Commission on February 17, 2012)
3.3
Certificate
of Designations for the Series A Preferred Stock (Incorporated by reference
to Exhibit 3.1 to the Registrants Current Report on Form 8-K, filed with the
Commission on January 15, 2009)
3.4
Certificate
of Designation of Senior Non-Cumulative Perpetual Preferred Stock, Series B
(Incorporated by reference to Exhibit 3.1 to the Registrants Current Report
on Form 8-K, filed with the Commission on August 24, 2011)
4
Rights
Agreement dated as of November 4, 2005 (Incorporated by reference to Exhibit
4 to the Registrants Quarterly Report on Form 10-Q for September 30, 2010,
filed with the Commission on November 15, 2010), as amended January 9, 2009
(Incorporated by reference to Exhibit 4.1 to the Registrants Quarterly
Report on Form 10-Q for September 30, 2010, filed with the Commission on
November 15, 2010), as further amended August 18, 2011 (Incorporated by
reference to exhibit 4.1 to the Registrants Current Report on Form 8-K,
filed with the Commission on August 24, 2011)
4.1
Small
Business Lending Fund- Securities Purchase Agreement, dated August 18, 2011,
between Codorus Valley Bancorp, Inc. and the Secretary of the Treasury, with
respect to the issuance and sale of the SBLF Preferred Stock (Incorporated by
reference to Exhibit 10.1 to the Registrants Current Report on Form 8-K,
filed with the Commission on August 24, 2011)
10.1
Employment
Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley
Company and Larry J. Miller, dated December 27, 2005. (Incorporated by
reference to Exhibit 10.1 to the Registrants Quarterly Report on Form 10-Q
for September 30, 2010, filed with the Commission on November 15, 2010), as
amended August 9, 2011 (Incorporated by reference to Exhibit 10.1 to the
Registrants Current Report on Form 8-K, filed with the Commission on August
11, 2011) *
10.2
Change of
Control Agreement by and among Codorus Valley Bancorp, Inc., PeoplesBank, A
Codorus Valley Company and Jann A. Weaver, dated December 27, 2005.
(Incorporated by reference to Exhibit 10.3 to the Registrants Quarterly
Report on Form 10-Q for September 30, 2010, filed with the Commission on
November 15, 2010) *
10.3
2000 Stock
Incentive Plan (Incorporated by reference to Exhibit 4.3 of Registration
Statement No. 333-40532 on Form S-8, filed with the Commission on June 30,
2000) *
2001
Employee Stock Bonus Plan (Incorporated by reference to Exhibit 99.1 of
Registration Statement No. 333-68410 on Form S-8, filed with the Commission
on August 27, 2001) *
10.5
Dividend
Reinvestment and Stock Purchase Plan (Incorporated by reference to Exhibit
10.1 of Registration Statement No. 333-179179 on Form S-3D, filed with the
Commission on January 26, 2012)
10.6
Form of
Salary Continuation Agreement between PeoplesBank, A Codorus Valley Company
and Larry J. Miller, Harry R. Swift and Jann Allen Weaver, dated October 1,
1998. (Incorporated by reference to Exhibit 10.9 of the Registrants Annual
Report on Form 10-K for December 31, 2009 filed with the Commission on March
24, 2010) *
10.7
Form of
Amendment to Salary Continuation Agreement between PeoplesBank, A Codorus
Valley Company and Larry J. Miller, Harry R. Swift and Jann Allen Weaver,
dated December 27, 2005. (Incorporated by reference to Exhibit 10.10 of the
Registrants Annual Report on Form 10-K for December 31, 2009 filed with the
Commission on March 24, 2010) *
10.8
Form of
Second Amendment to Salary Continuation Agreement between PeoplesBank, A
Codorus Valley Company and Larry J. Miller, Harry R. Swift and Jann Allen
Weaver, dated December 23, 2008. (Incorporated by reference to Exhibit 10.11
of the Registrants Annual Report on Form 10-K for December 31, 2009 filed
with the Commission on March 24, 2010) *
10.9
Form of
Group Term Replacement Plan, dated January 1, 2009 pertaining to senior
officers of the Corporations subsidiary, PeoplesBank, A Codorus Valley
Company. (Incorporated by reference to Exhibit 10.12 of the Registrants Annual
Report on Form 10-K for December 31, 2009 filed with the Commission on March
24, 2010) *
10.10
Form of
Director Group Term Replacement Plan, dated December 1, 1998, including Split
Dollar Policy Endorsements pertaining to non-employee directors of the
Corporations subsidiary, PeoplesBank, A Codorus Valley Company.
(Incorporated by reference to Exhibit 10.13 of the Registrants Annual Report
on Form 10-K for December 31, 2009 filed with the Commission on March 24,
2010) *
10.11
Long Term Nursing
Care Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus
Valley Company and Larry J. Miller, dated December 27, 2005. (Incorporated by
reference to Exhibit 10.2 to the Registrants Quarterly Report on Form 10-Q
for September 30, 2010, filed with the Commission on November 15, 2010) *
10.12
Codorus
Valley Bancorp, Inc. Change in Control and Supplemental Benefit Trust
Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley
Company and Hershey Trust Company, dated January 25, 2006. (Incorporated by
reference to Exhibit 10.4 to the Registrants Quarterly Report on Form 10-Q
for September 30, 2010, filed with the Commission on November 15, 2010) and
Resignation and Appointment of Trustee. (Incorporated by reference to Exhibit
10.15 of the Registrants Annual Report on Form 10-K for December 31, 2011
filed with the Commission on March 27, 2012)
Amended and
Restated Declaration of Trust of CVB Statutory Trust No. 2, dated as of June
28, 2006, among Codorus Valley Bancorp, Inc., as sponsor, the Delaware and
institutional trustee named therein, and the administrators named therein.
(Incorporated by reference to Exhibit 10.1 to the Registrants Current Report
on Form 8-K filed with the Commission on June 30, 2006)
10.14
Indenture,
dated as of June 28, 2006, between Codorus Valley Bancorp, Inc., as issuer,
and the trustee named therein, relating to the Junior Subordinated Debt
Securities due 2036. (Incorporated by reference to Exhibit 10.2 to the
Registrants Current Report on Form 8-K filed with the Commission on June 30,
2006)
10.15
Guarantee
Agreement, dated as of June 28, 2006, between Codorus Valley Bancorp, Inc.
and guarantee trustee named therein. (Incorporated by reference to Exhibit
10.3 to the Registrants Current Report on Form 8-K filed with the Commission
on June 30, 2006)
10.16
2007
Long-Term Incentive Plan of Codorus Valley Bancorp, Inc. (Incorporated by
reference to Exhibit A of the Registrants definitive proxy statement, dated
April 6, 2012) *
10.17
2007
Employee Stock Purchase Plan (Incorporated by reference to Exhibit B of the
Registrants definitive proxy statement, dated April 6, 2012) *
10.18
Executive
Incentive Plan (Incorporated by reference to Exhibit 10.1 to the Registrants
Current Report on Form 8-K, filed with the Commission on February 21, 2012) *
10.19
Employment
Agreement between Codorus Valley Bancorp, Inc., PeoplesBank, A Codorus Valley
Company and Michael F. Allen, dated July 23, 2012. (Incorporated by reference
to Exhibit 10.1 to the Registrants Current Report on Form 8-K/A, filed with
the Commission on March 19, 2013)*
14
Code of
Ethics (Incorporated by reference to Exhibit 14 to the Registrants Quarterly
Report on Form 10-Q for September 30, 2012 filed with the Commission on
November 13, 2012)
21
List of
subsidiaries of the Codorus Valley Bancorp, Inc.
23
Consent of
Independent Registered Public Accounting Firm
24
Power of
Attorney
31.1
Certification
of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
31.2
Certification
of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
32
Certification
of Principal Executive Officer and Principal Financial Officer Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
Financial
statements from the Quarterly Report on Form 10-Q of Codorus Valley Bancorp,
Inc. for the year ended December 31, 2012, formatted in XBRL: (i) the
Consolidated Balance Sheets, (ii) the Consolidated Statements of Income (iii)
the Consolidated Statements of Comprehensive Income (iv) the Consolidated
Statements of Cash Flows, (v) the Consolidated Statements of Changes in
Shareholders Equity, and (vi) the Notes to Consolidated Financial Statements
filed herewith. As provided in Rule 406T of Regulation S-T, this
interactive data file shall not be deemed to be filed for purposes of
Section 18 of the Securities Exchange Act of 1934, and shall not be deemed
filed or part of any registration statement or prospectus for purposes of
Section 11 or 12 under the Securities Act of 1933, or otherwise subject to
liability under those sections.
* Management
contract or compensation plan or arrangement required to be filed or
incorporated as an exhibit.
94
EX-21
2
codorus125093_ex21.htm
SUBSIDIARIES OF CODORUS VALLEY BANCORP, INC.
EXHIBIT 21
SUBSIDIARIES OF CODORUS VALLEY BANCORP, INC.
1.
PeoplesBank,
A Codorus Valley Company 100% owned
(chartered in Pennsylvania)
1 Manchester Street, P.O. Box 67
Glen Rock, Pennsylvania 17327
2.
SYC Realty
Company, Inc. 100% owned
(incorporated in Pennsylvania)
1 Manchester Street, P.O. Box 67
Glen Rock, Pennsylvania 17327
3.
CVB
Statutory Trust I 100% owned (1)
(formed in Delaware)
Trustee:
Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attn: Corporate Trust Administration
4.
CVB
Statutory Trust 2 100% owned (1)
(formed in Delaware)
Trustee:
Wells Fargo Bank, National Association
919 Market Street
Suite 700
Wilmington, Delaware 19801
Attn: Corporate Trust Division
(1)
The
Statutory Trusts have not been consolidated into the financial statements of
the Corporation as per ASC Topic 810, Consolidation.
95
EX-23
3
codorus125093_ex23.htm
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
EXHIBIT 23
CONSENT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
Codorus Valley
Bancorp, Inc.
York, Pennsylvania
We hereby consent to the incorporation by reference in the Registration
Statements on Forms S-3 (No. 033-46171, No. 333-179179 and No. 333-157145) and
Forms S-8 (No. 333-09277, No. 333-40532, No. 333-61851, No. 333-68410, No.
333-143682, No. 333-143683, No. 333-182800, and No. 333-182801) of Codorus
Valley Bancorp, Inc. of our report dated March 28, 2013, relating to the
consolidated financial statements which appears in this Form 10-K.
/s/ParenteBeard
LLC
Harrisburg,
Pennsylvania
March 28,
2013
96
EX-24
4
codorus125093_ex24.htm
POWER OF ATTORNEY
EXHIBIT 24
POWER OF ATTORNEY
KNOW ALL MEN
BY THESE PRESENTS, that each person whose signature appears below constitutes
and appoints Larry J. Miller and Jann A. Weaver, and each of them, his true and
lawful attorneys-in-fact and agents, with full power of substitution and
resubstitution, for him and in his name, place and stead, in any and all
capacities (including his capacity as a director and/or officer of Codorus
Valley Bancorp, Inc.), to sign this Form 10-K and any or all amendments to this
Form 10-K and to file the same, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them full power
and authority to do and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully to all intents and
purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents or any of them, or their or his
substitute or substitutes, may lawfully do or cause to be done by virtue
hereof.
Signature
Title
Date
/s/ Rodney
L. Krebs
Chairman of
the Board of
3/26/13
Rodney L.
Krebs
Directors
and Director
/s/ Larry J.
Miller
President,
Chief Executive Officer,
3/26/13
Larry J.
Miller
Vice-Chairman
of the Board of
(Principal
Executive Officer)
Directors
and Director
/s/ D. Reed
Anderson
Director
3/26/13
D. Reed
Anderson, Esq.
/s/ Cynthia
A. Dotzel
Director
3/26/13
Cynthia A.
Dotzel, CPA
/s/ Jeffrey
R. Hines
Director
3/26/13
Jeffrey R
Hines, P.E.
/s/
MacGregor S. Jones
Director
3/26/13
MacGregor S.
Jones
/s/ Dallas
L. Smith
Director
3/26/13
Dallas L.
Smith
/s/ Harry R.
Swift
Secretary
and General Counsel,
3/26/13
Harry R.
Swift, Esq.
Director
/s/ Michael
L. Waugh
Director
3/26/13
Hon. Michael
L. Waugh
/s/ Jann A.
Weaver
Treasurer
and Assistant Secretary
3/26/13
Jann A.
Weaver
(Principal
Financial and Accounting Officer)
97
EX-31.1
5
codorus125093_ex31-1.htm
CERTIFICATION OF CEO PURSUANT TO SECTION 302
EXHIBIT 31.1
Certification of Principal Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Larry J. Miller, certify that:
1. I
have reviewed this annual report on Form 10-K of Codorus Valley Bancorp, Inc.;
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this report;
3. Based on my knowledge, the financial
statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented in this
report;
4. The registrants other certifying officer and
I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period
in which this report is being prepared;
(b)
Designed such internal
control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c)
Evaluated the
effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
(d)
Disclosed in this report
any change in the registrants internal control over financial reporting that
occurred during the registrants most recent fiscal quarter (the registrants
fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrants
internal control over financial reporting; and
5. The
registrants other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrants auditors and the audit committee of registrants board of
directors (or persons performing the equivalent functions):
(a)
All significant
deficiencies and material weaknesses in the design or operation of the
internal control over financial reporting which are reasonably likely to
adversely affect the registrants ability to record, process, summarize and
report financial information; and
(b)
Any fraud, whether or not
material, that involves management or other employees who have a significant
role in the companys internal control over financial reporting.
Date:
March 26, 2013
/s/ Larry J. Miller
Larry J. Miller,
Vice-Chairman,
President and Chief Executive Officer
98
EX-31.2
6
codorus125093_ex31-2.htm
CERTIFICATION OF CFO PURSUANT TO SECTION 302
EXHIBIT 31.2
Certification of Principal Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Jann A. Weaver, certify
that:
1. I
have reviewed this annual report on Form 10-K of Codorus Valley Bancorp,
Inc.;
2. Based on my knowledge,
this report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading with
respect to the period covered by this report;
3. Based on my knowledge, the
financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the
periods presented in this report;
4. The
registrants other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:
(a)
Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period
in which this report is being prepared;
(b)
Designed such internal
control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c)
Evaluated the
effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
(d)
Disclosed in this report
any change in the registrants internal control over financial reporting that
occurred during the registrants most recent fiscal quarter (the registrants
fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrants
internal control over financial reporting; and
5. The
registrants other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrants auditors and the audit committee of registrants board of directors
(or persons performing the equivalent functions):
(a)
All significant
deficiencies and material weaknesses in the design or operation of the
internal control over financial reporting which are reasonably likely to
adversely affect the registrants ability to record, process, summarize and
report financial information; and
(b)
Any fraud, whether or not
material, that involves management or other employees who have a significant
role in the companys internal control over financial reporting.
Date:
March 26, 2013
/s/ Jann A. Weaver
Jann A. Weaver, Treasurer
and
Assistant Secretary
99
EX-32
7
codorus125093_ex32.htm
CERTIFICATION OF CEO/CFO PURSUANT TO SECTION 906
EXHIBIT 32
Certification of Principal Executive Officer
and Principal Financial Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
The
certification set forth below is being submitted in connection with the Annual
Report of Codorus Valley Bancorp, Inc. (the Company) on Form 10-K for the
period ending December 31, 2012, as filed with the Securities and Exchange
Commission (the Report), for the purpose of complying with Rule 13a-14(b) or
Rule 15d-14(b) of the Securities Exchange Act of 1934 (the Exchange Act) and
Section 1350 of Chapter 63 of Title 18 of the United States Code.
Larry
J. Miller, the Principal Executive Officer, and Jann A. Weaver, the Principal
Financial Officer of the Company, each certifies that, to the best of his
knowledge:
1.
the Report
fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act; and
2.
the information contained in the
Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.
Date:
March 26,
2013
/s/ Larry J.
Miller
Larry J.
Miller
Vice-Chairman, President
and Chief Executive Officer
/s/ Jann A.
Weaver
Jann A.
Weaver
Treasurer and Assistant Secretary
100
EX-101.INS
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<font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 5-Allowance for Loan Losses </b></font></p>
<p><font class="_mt" size="2">The table below shows the activity in and the composition of the allowance for loan losses by loan segment and class detail as of and for the years ended December 31, 2012, 2011 and 2010. </font></p>
<div class="MetaData">
<p><font class="_mt" size="2"><u><b>December 31, 2012:</b></u></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/<br />Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,170</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">505</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">184</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">907</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">8,120</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(217</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(67</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(15</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(310</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(609</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">16</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">17</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(382</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(677</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">705</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">91</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">91</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">18</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">572</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">504</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,571</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,259</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,195</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">485</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,913</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">202</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,170</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,032</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0">
<tr style="font-size: 1px;"><td valign="bottom" width="27%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">8,702</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(115</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(189</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(312</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(616</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(1,225</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">41</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">15</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">58</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">75</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">110</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">338</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">364</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">812</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">434</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,750</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">124</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">238</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">599</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">671</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">9,302</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2"><u><b>December 31, 2011:</b></u></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/<br />Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,561</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,887</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">698</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">949</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">155</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">175</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,017</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">6,787</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(966</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(18</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(2,420</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(40</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(3,444</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">9</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,573</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">116</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(175</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">49</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">3,271</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(4</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">9</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(71</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">4,768</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,170</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">505</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">184</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">907</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,120</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0">
<tr style="font-size: 1px;"><td valign="bottom" width="27%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">30</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">83</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">201</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">314</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">525</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">7,626</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(141</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(173</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(198</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(512</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(3,956</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">8</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">80</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">97</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">199</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">168</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">455</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(288</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">4,935</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,702</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2"><u><b>December 31, 2010:</b></u></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/<br />Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,837</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,556</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">658</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">334</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">337</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">175</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">75</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">838</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">6,810</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(874</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(1,399</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(2,308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">18</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">24</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">597</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">712</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">40</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">11</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">612</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(20</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">100</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">209</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,261</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,561</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,887</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">698</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">949</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">155</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">175</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,017</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">6,787</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0">
<tr style="font-size: 1px;"><td valign="bottom" width="28%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">33</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">75</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">113</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">221</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">144</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">7,175</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(31</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(30</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(268</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(329</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(2,637</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">74</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">74</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">98</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">28</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">38</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">282</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">348</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">381</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,990</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">30</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">83</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">201</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">314</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">525</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">7,626</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table></div>
<p><font class="_mt" size="2">The table below shows the allowance amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment at December 31, 2012 and 2011. </font></p>
<div class="MetaData">
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">147</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">700</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">100</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">215</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,162</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,424</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,259</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">495</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">485</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,913</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">102</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">955</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">6,870</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,571</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,259</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,195</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">485</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,913</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">202</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,170</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,032</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">30</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">100</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">397</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,023</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">475</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">84</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">787</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">7,723</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,170</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">505</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">184</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">907</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">8,120</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Loans:</b></font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">12,467</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">5,736</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,731</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">3,048</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">471</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,455</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">27,607</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">84,469</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">116,978</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">63,688</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">64,948</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">67,395</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">39,559</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">20,457</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">122,379</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">579,873</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">96,936</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">122,714</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">66,419</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">64,948</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">70,443</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">40,258</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">20,928</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">124,834</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">607,480</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,891</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">3,965</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">552</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">3,781</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">714</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">489</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">4,499</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">16,891</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">100,623</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">114,168</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">62,012</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">52,871</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">56,547</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">25,262</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">16,879</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">120,322</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">548,684</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">103,514</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">118,133</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">62,564</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">52,871</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">60,328</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">25,976</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">17,368</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">124,821</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">565,575</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0" width="85%">
<tr style="font-size: 1px;"><td valign="bottom" width="28%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,162</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">124</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">238</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">599</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">671</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">8,140</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">124</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">238</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">599</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">671</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">9,302</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">397</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,305</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">8,702</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Loans:</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">85</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">642</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,067</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">28,674</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">23,426</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">65,518</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">39,643</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">128,587</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">708,460</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">23,511</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">65,858</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">40,285</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">129,654</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">737,134</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">204</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">223</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">270</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">697</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">17,588</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">21,120</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">58,167</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">47,956</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">127,243</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">675,927</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">21,324</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">58,390</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">48,226</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">127,940</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">693,515</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table></div> </div>5620005830003350000.050.01000.300.20Appraisal adjustments(2)Appraisal (1), (3)Appraisal (1)<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Bank Owned Life Insurance</b> <br />PeoplesBank invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by PeoplesBank on a select group of employees and directors. PeoplesBank is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies and is included in other assets in the amount of $<font class="_mt">15,467,000</font> at December 31, 2012, compared to $<font class="_mt">14,814,000</font> at December 31, 2011. </font></p></div> </div>92-4600026000042220004493000140930002779000<div> <div class="MetaData">
<div><font class="_mt" size="2"><b>Cash Flow Information </b></font></div>
<div><font class="_mt" size="2">For purposes of the statements of cash flows, the Corporation considers interest bearing deposits with banks, cash and due from banks, and federal funds sold to be cash and cash equivalents. </font></div><br />
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="62%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Cash paid during the period for:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Income taxes</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,825</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,960</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,719</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,578</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">12,525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">13,219</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Noncash investing and financing activities:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Transfer of loans to foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">231</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,013</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,104</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Transfer of loans held for sale to the held-to-maturity portfolio</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">160</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for investment in foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">116</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">65</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for purchase of securities settling after year end</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,063</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for preferred stock dividends declared</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">63</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">313</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td></tr></table></div> </div>52300039600064000019000000<div> <table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="84%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Impaired loans without a related allowance</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14,892</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Impaired loans with a related allowance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,898</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Allowance for impaired loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,195</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Average recorded investment in impaired loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">26,434</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Total interest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">697</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Cash basis interest income</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">456</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="70%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="67%">
<p> </p></td>
<td valign="bottom" width="4%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="4%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Commitments to grant loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Fixed rate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">50,958</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14,485</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Variable rate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,254</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,732</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Unfunded commitments of existing loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Fixed rate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42,003</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,731</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Variable rate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">115,035</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,743</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Standby letters of credit</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,064</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,532</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>0.050.05<div> <div class="MetaData">
<div><font class="_mt" size="2"><b>Comprehensive Income </b></font></div>
<div><font class="_mt" size="2">Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders' equity section of the balance sheet, such items, along with net income, are components of comprehensive income. </font></div><br /></div> </div>585000655000707000173800013270006010005800005140004360001.000.500.500.50P3Y139800025140002022000-0.030-0.026-0.017-0.036-0.030-0.018530800048690007874000-64000-110000-120000.400.172013-122012-122012-012015-072014-072016-072018-062019-062102-062013-0516600000031113097000215100018800028600030970002151000188000286000162430003633000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Foreclosed Real Estate</b> <br />Foreclosed real estate, included in other assets, is comprised of property acquired through a foreclosure proceeding or property that is acquired through in substance foreclosure. Foreclosed real estate is initially recorded at fair value minus estimated costs to sell at the date of foreclosure, establishing a new cost basis. Any difference between the carrying value and the new cost basis is charged against the allowance for loan losses. Appraisals are generally used to determine fair value. After foreclosure, management reviews valuations at least quarterly and adjusts the asset to the lower of cost or fair value minus estimated costs to sell through a valuation allowance. Costs related to the improvement of foreclosed real estate are generally capitalized until the real estate reaches a saleable condition. Revenue and expense from operations and changes in the valuation allowance are included in noninterest expense. When a foreclosed real estate asset is ultimately sold, any gain or loss on the sale is included in the income statement as a component of noninterest expense. At December 31, 2012, foreclosed real estate, net of allowance was $<font class="_mt">3,633,000</font>, compared to $<font class="_mt">16,243,000</font> for December 31, 2011. </font></p></div> </div>2395000371200016488000649100024850002605000000000000000000000000000397000100000147000012000000000030000116200010000014700002150000000007000009720006200002990001833000239300052200035230002966000375600020000003348000-65000-116000003130006300001063000050000000.050.050.0110017000010785300016400004130000170001167000794000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Investments in Real Estate Partnerships <br /></b>In March 2003, PeoplesBank acquired a <font class="_mt">73.47</font> percent limited partner interest in a real estate joint venture known as Village Court, which was formed to develop, construct, own and operate a <font class="_mt">60</font>-unit affordable housing complex located in Dover Township, York County, Pennsylvania. Construction of the housing complex was completed in the fourth quarter of 2004 and the complex was fully leased by December 31, 2004. The investment balance included in other assets was $<font class="_mt">533,000</font> at December 31, </font><font class="_mt" size="2">2012, compared to $<font class="_mt">846,000</font> at December 31, 2011. Additionally, PeoplesBank is a <font class="_mt">99.99</font> percent limited partner in a real estate joint venture known as SMB Properties that rehabilitated and now operates <font class="_mt">seven</font> buildings in the City of York, Pennsylvania as part of a revitalization initiative. The buildings provide low-income housing to qualified families and, to a lesser degree, space for commercial purposes. The investment balance included in other assets has been fully amortized as of December 31, 2012, compared to $<font class="_mt">22,000</font> at December 31, 2011. </font></p>
<p><font class="_mt" size="2">Investment and related tax credits are accounted for under the effective yield method of accounting under which tax credits are recognized as they are allocated, and the cost of the investment is amortized to provide a constant yield over the period that tax credits are allocated, generally ten years. </font></p></div> </div><div> <div class="MetaData">
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="32%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="22%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>Quantitative Information about Level 3 Fair Value Measurements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair Value<br />Estimate</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Valuation<br />Techniques</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unobservable<br />Input</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Range</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Impaired loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,493</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"><font class="_mt" size="2">Appraisal (1) </font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"><font class="_mt" size="2"><font class="_mt"><font class="_mt" size="2">Appraisal adjustments</font></font>(2)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"><font class="_mt" size="2"><font class="_mt"><font class="_mt" size="2">20</font></font>% - <font class="_mt">30</font>%</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">Appraisal (1), (3)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table><br />
<table class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="top" width="5%">
<p> </p></td>
<td valign="top" width="95%">
<p> </p></td></tr>
<tr><td valign="top">
<p align="center"><font class="_mt" size="2">(1)</font></p></td>
<td class="MetaData" valign="top">
<p><font class="_mt" size="2">Fair value is generally determined through independent appraisals, which generally include various level 3 inputs that are not identifiable.</font></p></td></tr>
<tr><td valign="top">
<p align="center"><font class="_mt" size="2">(2)</font></p></td>
<td class="MetaData" valign="top">
<p><font class="_mt" size="2">Appraisals may be adjusted downward by the Corporation's management for qualitative factors such as economic conditions, and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="top">
<p align="center"><font class="_mt" size="2">(3)</font></p></td>
<td style="border-bottom: black 1px solid;" class="MetaData" valign="top">
<p><font class="_mt" size="2">May include qualitative adjustments by the Corporation's management and estimated liquidation expenses.</font></p></td></tr></table></div> </div>P364D0.1490.1700.100.1320.1660.10144850002673100050958000420030007732000105743000232540001150350001317000118900075000014000000P90D22621010723P4Y6M000000000170270001702700000309300072170001900028000-10002360002350000.00510<div> <div class="MetaData">
<div><font class="_mt" size="2"><b>Reclassification </b></font></div>
<div><font class="_mt" size="2">Certain amounts in the 2011 and 2010 consolidated financial statements have been reclassified to conform to the 2012 presentation, which did not impact net income or shareholders' equity. </font></div><br /></div> </div>1702700056600016461000379000<div> <div>
<p><font class="_mt" size="2"><b>Restricted Stock <br /></b>Restricted stock, which represents required investments in the common stock of correspondent banks, is carried at cost and, as of December 31, 2012 and 2011, consisted primarily of the common stock of the Federal Home Loan Bank of Pittsburgh (FHLBP) and, to a lesser degree, Atlantic Central Bankers Bank (ACBB). Under the FHLBP's Capital Plan, PeoplesBank is required to maintain a minimum member stock investment, both as a condition of becoming and remaining a member and as a condition of obtaining borrowings from the FHLBP. The FHLBP uses a formula to determine the minimum stock investment, which is based on the volume of loans outstanding, unused borrowing capacity and other factors. </font></p>
<p><font class="_mt" size="2">For the fourth quarter of 2011, the FHLBP began paying a quarterly cash dividend on its common stock after a period of suspension since December 2008. The FHLBP reported that it will continue to monitor the condition of its private-label residential mortgage-back securities portfolio, its overall financial performance and retained earnings, developments in the mortgage and credit markets, and other relevant information as the basis for determining the status of dividends and excess capital stock repurchases in future quarters. </font></p>
<p><font class="_mt" size="2">Management evaluates the restricted stock for impairment in accordance with FASB ASC Topic 942. Management's determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. Using the FHLBP as an example, the determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as: (1) the significance of the decline in net assets of the FHLBP as compared to the capital stock amount for the FHLBP and the length of time this situation has persisted; (2) commitments by the FHLBP to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLBP; and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLBP. Management believes no impairment charge was necessary related to the restricted stock during the periods ended December 31, 2012 and 2011.</font></p></div> </div>1550000-700000360000<div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="31%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="2">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="2">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Fair Value Estimates</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Carrying<br />Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Estimated<br />Fair Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 1)<br />Quoted Prices in<br />Active Markets<br />for Identical<br />Assets</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 2)<br />Significant Other<br />Observable<br />Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 3)<br />Significant Other<br />Unobservable<br />Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Financial assets</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34,866</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34,866</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34,866</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">229,030</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Restricted investment in bank stocks</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,863</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,863</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,863</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans held for sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,091</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,151</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,151</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">727,832</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">753,299</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">753,299</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest receivable</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,579</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,579</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,579</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Financial liabilities</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deposits</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">901,307</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">907,439</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">907,439</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Short-term borrowings</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,815</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">26,568</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,289</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,279</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest payable</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">470</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">470</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">470</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Off-balance sheet instruments</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Carrying<br />Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Estimated<br />Fair Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Financial assets</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">32,195</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">32,195</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">233,861</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">233,861</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Restricted investment in bank stocks</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,635</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,635</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans held for sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,869</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,926</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">684,813</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">694,260</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest receivable</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,652</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,652</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Financial liabilities</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deposits</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">854,399</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">862,185</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Short-term borrowings</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">46,628</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">41,529</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest payable</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">521</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">521</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Off-balance sheet instruments</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="58%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="right"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="right"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Noninterest bearing demand</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,476</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">73,760</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">NOW</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">77,531</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">68,518</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Money market</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">289,149</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">253,598</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Savings</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">34,372</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,309</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Time deposits less than $100,000</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">236,683</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">247,190</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Time deposits $100,000 or more</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">175,096</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">181,024</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total deposits</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">901,307</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">854,399</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="65%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="76%">
<p> </p></td>
<td valign="bottom" width="4%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="15%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="right"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2013</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">184,529</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2014</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">99,446</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2015</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">56,721</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2016</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">23,695</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2017</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">43,953</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Thereafter</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,435</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total time deposits</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">411,779</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <div class="MetaData">
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="17%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="36%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Plan</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Types of grants</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Number of<br />shares<br />reserved (2)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Number of<br />outstanding<br />options (2)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Number of shares<br />available for future<br />issuance (2)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2000 Stock Incentive<br />Plan (2000 Plan) (1)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Stock options<br />Stock appreciation rights<br />Restricted stock</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">129,301</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">99,571</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">2007 Long Term<br />Incentive Plan (LTIP)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Stock options<br />Stock appreciation rights<br />Restricted stock<br />Stock awards</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">384,107</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">154,613 </font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font size="2" class="_mt">(3)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">229,494</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2007 Employee Stock<br />Purchase Plan (ESPP)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Stock option</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">172,668</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">172,668</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Employee Stock<br />Bonus Plan (ESBP)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Stock awards</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">15,007</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">15,007</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table><br />
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="top" width="5%">
<p> </p></td>
<td valign="top" width="95%">
<p> </p></td></tr>
<tr><td valign="top">
<p><font class="_mt" size="2">(1)</font></p></td>
<td valign="top">
<div>
<p><font class="_mt" size="2">All options available for grant under the 2000 Plan have been granted.</font></p></div></td></tr>
<tr><td valign="top">
<p><font class="_mt" size="2">(2)</font></p></td>
<td valign="top">
<div>
<p><font class="_mt" size="2">Shares/options are subject to adjustment in the event of specified changes in the Corporation's capital structure.</font></p></div></td></tr>
<tr><td valign="top">
<p><font class="_mt" size="2">(3)</font></p></td>
<td valign="top">
<p><font class="_mt" size="2"><font class="_mt"><font class="_mt" size="2">Amount includes <font class="_mt">27,749</font> of unvested options.</font></font></font></p></td></tr></table></div> </div>0.500.507.9914.757.8614.757.99551372774927749-393827749-511997.9010.000.0014.757.54P10Y4457539604011290-16261<div> <table cellspacing="0" cellpadding="0" width="75%" align="center" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="61%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i> </font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Compensation expense</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">210</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">132</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Tax benefit</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(67</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(52</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Net income effect</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">203</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">158</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">101</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>0.01000.00000.00990.00000.00580.000029096<div> <div class="MetaData">
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">147</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">700</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">100</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">215</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,162</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,424</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,259</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">495</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">485</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,913</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">102</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">955</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">6,870</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,571</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,259</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,195</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">485</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,913</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">202</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,170</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,032</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">30</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">100</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">397</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,023</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">475</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">84</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">787</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">7,723</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,170</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">505</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">184</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">907</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">8,120</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Loans:</b></font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">12,467</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">5,736</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,731</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">3,048</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">471</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,455</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">27,607</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">84,469</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">116,978</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">63,688</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">64,948</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">67,395</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">39,559</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">20,457</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">122,379</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">579,873</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">96,936</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">122,714</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">66,419</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">64,948</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">70,443</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">40,258</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">20,928</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">124,834</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">607,480</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,891</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">3,965</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">552</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">3,781</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">714</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">489</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">4,499</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">16,891</font></p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">100,623</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">114,168</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">62,012</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">52,871</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">56,547</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">25,262</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">16,879</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">120,322</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">548,684</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">103,514</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">118,133</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">62,564</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">52,871</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">60,328</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">25,976</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">17,368</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">124,821</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">565,575</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0" width="85%">
<tr style="font-size: 1px;"><td valign="bottom" width="28%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,162</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">124</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">238</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">599</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">671</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">8,140</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">124</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">238</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">599</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">671</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">9,302</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">397</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,305</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">8,702</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Loans:</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">85</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">642</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,067</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">28,674</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">23,426</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">65,518</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">39,643</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">128,587</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="1">708,460</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2012</b></font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">23,511</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">65,858</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">40,285</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">129,654</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">737,134</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Individually evaluated for impairment</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">204</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">223</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">270</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">697</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">17,588</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">Collectively evaluated for impairment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">21,120</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">58,167</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">47,956</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">127,243</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">675,927</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1"><b>Balance, December 31, 2011</b></font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">21,324</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">58,390</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">48,226</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">127,940</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt; margin-right: 0in;"><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">693,515</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table></div> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="33%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="17">
<p align="center"><font class="_mt" size="1"><b>For the years ended</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Average<br />Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Cash Basis<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Average<br />Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Cash Basis<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with no related allowance:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8,849</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">570</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">92</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,248</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">424</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">374</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,910</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">281</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">142</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,958</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">73</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">307</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">443</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,711</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">28</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,242</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">79</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">707</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">143</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,020</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">177</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">212</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,067</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">383</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">133</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">262</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">274</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">435</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">22</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">515</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">37</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">20</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with no related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">22,346</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,139</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">472</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">16,030</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,056</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">788</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with a related allowance:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">260</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">796</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">45</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">166</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,483</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">93</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">105</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,905</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">481</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other commercial</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">935</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">777</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with a related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,309</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">106</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">5,233</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">43</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">9,109</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">576</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">98</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">424</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">374</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,955</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">281</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">142</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,124</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">73</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,790</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">69</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">536</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,816</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">28</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,147</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">79</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">707</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">143</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">481</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,955</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">179</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">212</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,844</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">391</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">133</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">262</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">274</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">435</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">22</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">515</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">37</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">20</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">25,655</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,245</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">478</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">21,263</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,099</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">788</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Trust and Investment Services Assets <br /></b>Assets held by PeoplesBank in a fiduciary or agency capacity for its customers are not included in the consolidated balance sheets since these items are not assets of PeoplesBank. </font></p></div> </div>false--12-31FY20122012-12-3110-K00008062794487856YesSmaller Reporting Company53567116CODORUS VALLEY BANCORP INCNoNo-1181000-1449000-143800052100052100047000047000004700000159650001683500059240005733000372530004052400015700015700022900022900033900033900039000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Advertising <br /></b>Advertising costs are charged to expense when incurred. </font></p></div> </div>132000210000270000101000158000203000<div> <div class="MetaData">
<p><font class="_mt" size="2"><u><b>December 31, 2012:</b></u></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/<br />Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,170</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">505</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">184</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">907</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">8,120</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(217</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(67</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(15</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(310</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(609</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">16</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">17</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(382</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(677</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">705</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">91</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">91</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">18</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">572</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">504</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,571</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,259</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,195</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">485</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,913</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">202</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,170</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,032</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0">
<tr style="font-size: 1px;"><td valign="bottom" width="27%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">8,702</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(115</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(189</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(312</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(616</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(1,225</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">41</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">15</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">58</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">75</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">110</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">338</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">364</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">812</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">434</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,750</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">124</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">238</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">599</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">671</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">9,302</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2"><u><b>December 31, 2011:</b></u></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/<br />Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,561</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,887</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">698</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">949</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">155</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">175</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,017</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">6,787</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(966</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(18</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(2,420</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(40</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(3,444</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">9</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">1,573</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">116</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(175</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">49</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">3,271</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(4</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">9</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(71</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">4,768</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,170</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">2,003</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">505</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">394</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,806</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">151</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">184</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">907</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,120</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0">
<tr style="font-size: 1px;"><td valign="bottom" width="27%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">30</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">83</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">201</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">314</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">525</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">7,626</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(141</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(173</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(198</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(512</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(3,956</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">8</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">80</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">97</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">199</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">168</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">455</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(288</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">4,935</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">88</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">86</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">171</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">8,702</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2"><u><b>December 31, 2010:</b></u></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="16%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Builder &<br />developer</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Commercial<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />real estate<br />investor</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Hotel/<br />Motel</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Wholesale<br />& retail</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Manufacturing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Agriculture</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />commercial<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1,837</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">2,556</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">658</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">334</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">337</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">175</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">75</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">838</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">6,810</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(874</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(1,399</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(2,308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">18</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">24</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">597</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">712</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">40</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">11</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">612</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(20</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">100</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">209</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,261</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,561</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,887</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">698</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">345</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">949</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">155</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">175</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">1,017</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">6,787</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table><br />
<table border="0" cellspacing="0" cellpadding="0">
<tr style="font-size: 1px;"><td valign="bottom" width="28%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Residential<br />mortgage</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Home equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Other</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />consumer<br />related</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unallocated</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1"><b>Allowance for loan losses:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="1">Beginning Balance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">33</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">75</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">113</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">221</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">144</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">7,175</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Charge-offs</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(31</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(30</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(268</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(329</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">(2,637</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="1">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Recoveries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">74</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">74</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="1">98</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="1">Provisions</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">28</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">38</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">282</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">348</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">381</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="1">2,990</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">Ending Balance</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">30</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">83</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">201</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">314</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">525</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="1">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="1">7,626</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table></div> </div>26370000874000035000023080001399000329000268000300000310000039560000966000040000242000034440000512000198000173000014100018000012250000217000031000006090006700061600031200018900001150001500003230002650003110004000095000190000486000188000106000142000015100001702000101213200010522700010597370001129400001409300042220000014093000004222000277900044930000027790000044930008661000030673000106444000101340000866100000030673000001064440000101340000010273900038058000882330005032000010273900000380580000088233000050320000023386100023406200000000031000290002000830002500058000142860001343000085600019816000825100011565000310002900020008300025000580001428600013430000856000198160008251000115650000000002632800027590000177725000184708000382100041130002248850001030170002959300082272000100030002253750008463000037000000987440005001000175010001765100023386100010644400030673000866100001013400023406200088233000380580001027390005032000233861000233861000234062000234062000503200022903000001080001250004270001080002290004280000104000100090070003456000108000043400001310008770000360300010830004053000310003100029000020000830000250005800001368270004027700013534800045696000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 3-Securities </b></font></p>
<p><font class="_mt" size="2">A summary of securities, available-for-sale at December 31, 2012 and 2011 is provided below. The securities available-for-sale portfolio is generally comprised of high quality debt instruments, such as obligations of the United States government or agencies thereof and investments in the obligations of municipalities. With the exception of an approximately $<font class="_mt">14</font> million portfolio (fair value) of Texas municipal utility district bonds, which has its own criteria for investment (e.g., maximum debt to assessed valuation, minimum assessed valuation and district size, proximity to employment, etc.), the remaining municipal bonds were almost all rated A or above by a national rating service at December 31, 2012. The majority of municipal bonds in the portfolio are general obligation bonds, which can draw upon multiple sources of revenue, including taxes, for payment. Only a few bonds are revenue bonds, which are dependent upon a single revenue stream for payment, but they are for critical services such as water and sewer. In many cases, municipal debt issues are insured or, in the case of school districts of selected states, backed by specific loss reserves. At December 31, 2012, the fair value of the municipal bond portfolio was concentrated in the states of Pennsylvania at <font class="_mt">40</font> percent and Texas at <font class="_mt">17</font> percent. </font></p><br />
<table border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="46%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amortized</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Gross Unrealized</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Estimated<br />Fair</b></font></p></td>
<td valign="bottom">
<p> </p>
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Cost</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Gains</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Losses</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,001</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">31</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">37,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,083</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">38,058</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-backed, residential</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">84,630</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,603</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,233</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p>
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">98,744</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,053</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(58</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">102,739</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total debt securities</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">225,375</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,770</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(83</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10,003</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">131</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10,134</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">29,593</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,080</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30,673</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-backed, residential</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">103,017</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,456</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(29</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">106,444</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p>
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">82,272</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,340</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">86,610</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total debt securities</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">224,885</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">9,007</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">233,861</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The amortized cost and estimated fair value of debt securities at December 31, 2012 by contractual maturity are shown below. Actual maturities may differ from contractual maturities if call options on selected debt issues are exercised in the future. Mortgage-backed securities are included in the maturity categories based on average expected life. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="66%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Available-for-sale</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amortized<br />Cost</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair<br />Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due in one year or less</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,501</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,651</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due after one year through five years</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">177,725</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">184,708</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due after five years through ten years</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">27,590</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due after ten years</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,113</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total debt securities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">225,375</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">Gross realized gains and losses on sales of securities, available-for-sale is shown below. Realized gains and losses are computed on the basis of specific identification of the adjusted cost of each security and are shown net as a separate line item in the income statement. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="81%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="50%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Realized gains</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">428</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">229</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Realized losses</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(1</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(104</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Net gains</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">427</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">125</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">Securities, issued by agencies of the federal government, with a carrying value of $<font class="_mt">135,348,000</font> and $<font class="_mt">136,827,000</font> on December 31, 2012 and December 31, 2011, respectively, were pledged to secure public and trust deposits, repurchase agreements and other short-term borrowings. </font></p>
<p><font class="_mt" size="2">The table below shows gross unrealized losses and fair value, aggregated by investment category and length of time, for securities that have been in a continuous unrealized loss position, at December 31, 2012 and 2011. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="32%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Less than 12 months</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>12 months or more</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair </b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Value</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unrealized<br />Losses</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair</b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Value</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unrealized</b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Losses</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair</b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Value</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unrealized </b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Losses</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,251</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,251</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,565</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(58</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,565</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(58</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total temporarily impaired debt securities, available for sale</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,816</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(83</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,816</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(83</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-backed, residential</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13,430</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(29</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13,430</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(29</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">856</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">856</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total temporarily impaired debt securities, available for sale</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,286</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,286</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr></table>
<p><font class="_mt" size="2">The unrealized losses of $83,000 at December 31, 2012 within the less than 12 months category were attributable to <font class="_mt">three</font> U.S. agency securities and <font class="_mt">twenty-six</font> municipal securities, all rated A or above by a national rating service.</font></p>
<p><font class="_mt" size="2">Securities available-for-sale are analyzed quarterly for possible other-than-temporary impairment. The analysis considers, among other factors: 1) whether the Corporation has the intent to sell its securities prior to market recovery or maturity; 2) whether it is more likely than not that the Corporation will be required to sell its securities prior to market recovery or maturity; 3) default rates/history by security type; 4) third-party securities ratings; 5) third-party guarantees; 6) subordination; 7) payment delinquencies; 8) nature of the issuer; and 9) current financial news. </font></p>
<p><font class="_mt" size="2">The Corporation believes that unrealized losses at December 31, 2012 were primarily the result of changes in market interest rates and that it has the ability to hold these investments for a time necessary to recover the amortized cost. Through December 31, 2012, the Corporation has collected all interest and principal on its investment securities as scheduled. The Corporation believes that collection of the contractual principal and interest is probable and, therefore, all impairment is considered to be temporary. </font></p> </div>637000647000633000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Nature of Operations and Basis of Presentation <br /></b>Codorus Valley Bancorp, Inc. (Corporation or Codorus Valley) is a one-bank holding company headquartered in York, Pennsylvania that provides a full range of banking services through its subsidiary, PeoplesBank, A Codorus Valley Company (PeoplesBank or Bank). PeoplesBank operates two wholly-owned subsidiaries, Codorus Valley Financial Advisors, Inc. (formerly SYC Insurance Services, Inc.) which sells nondeposit investment products, and SYC Settlement Services, Inc., which provides real estate settlement services. In addition, PeoplesBank may periodically create nonbank subsidiaries for the purpose of temporarily holding foreclosed properties pending the liquidation of these properties. PeoplesBank operates under a state charter and is subject to regulation by the Pennsylvania Department of Banking and the Federal Deposit Insurance Corporation. The Corporation is subject to regulation by the Federal Reserve Board and the state of Pennsylvania. </font></p>
<p><font class="_mt" size="2">The consolidated financial statements include the accounts of Codorus Valley and its wholly-owned bank subsidiary, PeoplesBank, and its wholly-owned nonbank subsidiary, SYC Realty Company, Inc. SYC Realty is primarily used to hold foreclosed properties obtained by PeoplesBank pending the liquidation of these properties. The accounts of CVB Statutory Trust No. 1 and No. 2 are not included in the consolidated financial statements as discussed in Note 8 –Short-term Borrowings and Long-term Debt. All significant intercompany account balances and transactions have been eliminated in consolidation. The accounting and reporting policies of Codorus Valley and subsidiaries conform to accounting principles generally accepted in the United States of America and have been followed on a consistent basis. </font></p>
<p><font class="_mt" size="2">In accordance with FASB ASC Topic 855, the Corporation evaluated the events and transactions that occurred after the balance sheet date of December 31, 2012 through the date these consolidated financial statements were issued. </font></p></div> </div>1245800012716000105830000102758000114899000111422000672000672000330000260000306000102000001020001020000581940005795000062147000619020000.08000.08000.08000.080072438000773780000.10000.10000.14550.14190.14790.144070000312000261790005900043269000183000321950007000049757000312000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 2-Restrictions on Cash and Due from Banks </b></font></p>
<p><font class="_mt" size="2">The Bank is required to maintain average reserves, in the form of cash and balances with the Federal Reserve Bank, against its deposit liabilities. In 2012 and 2011, the reserves were met with vault cash. The Bank is also required to maintain compensating balances with certain correspondent banks which totaled $<font class="_mt">76,000</font> at December 31, 2012 compared to $<font class="_mt">126,000</font> at December 31, 2011. </font></p> </div>32195000321950003486600034866000348660000017090000124000-11074000-1130001756200024200012555000148910001481400015467000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 14-Commitments to Extend Credit</b></font></p>
<p><font class="_mt" size="2">In the normal course of business, the Corporation is a party to various financial transactions that are not funded as of the balance sheet date. Off-balance sheet financial instruments, which enable Bank customers to meet their financing needs, are comprised mainly of commitments to extend credit and standby letters of credit. Standby letters of credit are written conditional commitments issued by PeoplesBank to guarantee the performance of a customer to a third party. The credit and market risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. To manage these risks, the Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments and requires collateral to support these letters of credit as deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The amount of the liability as of December 31, 2012 and 2011, for guarantees under standby letters of credit issued was not material. Normally, commitments to extend credit and letters of credit have fixed expiration dates or termination clauses, have specific rates and are for specific purposes. Many of the commitments are expected to expire without being extended; therefore, total commitment amounts do not necessarily represent future cash requirements. </font></p>
<p><font class="_mt" size="2">A summary of outstanding commitments at December 31, 2012 and 2011 is shown below. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="70%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="67%">
<p> </p></td>
<td valign="bottom" width="4%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="4%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Commitments to grant loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Fixed rate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">50,958</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14,485</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Variable rate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,254</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,732</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Unfunded commitments of existing loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Fixed rate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42,003</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,731</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Variable rate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">115,035</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,743</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Standby letters of credit</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,064</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,532</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>15000047805250000150071726683841071293010.2380.3340.3822115642.52.51000000015000000150000001000000042026064482319420260644823191050700011206000560000509000532000126000760005945000105650009203000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>Note 17-Condensed Financial Information-Parent Company Only<br />Condensed Balance Sheets</b></font></p>
<p><font class="_mt" size="1"> </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="89%">
<tr style="font-size: 1px;"><td valign="bottom" width="73%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>December 31,</b></font></p></td>
<td valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Assets</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Cash and due from banks</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">312</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">70</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Investment in bank subsidiary</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">107,853</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100,170</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Investment in other subsidiaries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">794</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,167</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Premises and equipment, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,516</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,445</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other assets</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">465</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">375</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total assets</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">112,940</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">105,227</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Liabilities</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Long-term debt</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,310</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,310</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Long-term debt with bank subsidiary</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,189</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,317</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other liabilities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">110</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">358</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total liabilities</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,609</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,985</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Shareholders' equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">101,331</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">93,242</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total liabilities and shareholders' equity</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">112,940</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">105,227</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2"><b>Condensed Statements of Income</b></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="63%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Income</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Interest from investment securities</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Dividends from bank subsidiary</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,022</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,514</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,398</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total income</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,029</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,520</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,404</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Expense</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Interest expense on long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">320</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">313</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">325</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Occupancy of premises, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">133</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">187</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">131</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">293</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">253</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">207</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total expense</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">746</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">753</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">663</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Income before applicable income tax benefit and<br />undistributed earnings (losses) of subsidiaries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,283</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,767</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">741</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Applicable income tax benefit</b></font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">249</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">253</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Income before undistributed earnings (losses) of subsidiaries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,532</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,020</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">964</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Equity in undistributed earnings of bank subsidiary</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,874</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,869</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Equity in undistributed losses of other subsidiaries</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(12</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(110</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(64</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,394</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,208</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Preferred stock dividends and discount accretion</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">384</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,460</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">980</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net income available to common shareholders</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,010</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,319</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,228</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2"><b>Condensed Statements of Cash Flows</b></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="59%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Cash flows from operating activities</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net income</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">9,394</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,779</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,208</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Adjustments to reconcile net income to net cash provided by operations:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Depreciation</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">160</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">159</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">159</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Equity in undistributed earnings of subsidiaries, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(7,862</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(4,759</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(5,244</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Other, net</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">252</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">175</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">158</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Net cash provided by operating activities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,944</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,354</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,281</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Cash flows from investing activities</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Additional investment in bank subsidiary</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(7,800</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,000</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Return of (additional) investment in other subsidiary</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">360</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(700</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,550</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Purchases of premises and equipment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(231</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(70</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(22</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Net cash provided by (used in) investing activities</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">129</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(8,570</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">528</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Cash flows from financing activities</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Repayments of long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(128</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(119</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(110</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash dividends paid to preferred shareholders</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(634</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(774</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(825</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash dividends paid to common shareholders</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(1,690</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(1,454</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(1,022</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Redemption of preferred stock and common stock warrant</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(17,027</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Issuance of preferred stock</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Issuance of common stock</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">627</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">477</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">272</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash paid in lieu of fractional shares</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(6</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Net cash (used in) provided by financing activities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,831</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,103</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,685</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Net increase (decrease) in cash and cash equivalents</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">242</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(113</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">124</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents at beginning of year</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">70</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">183</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">59</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents at end of year</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">312</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">70</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">183</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="58%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Capital<br />Lease</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Operating<br />Leases</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2013</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">396</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2014</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">323</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2015</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">187</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2016</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">81</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2017</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">81</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Thereafter</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">55</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total future minimum lease payments</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">306</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,123</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Less interest</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(46</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Present value of minimum lease payments</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">260</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>209900024400002486000227700026740002718000178000234000232000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 8-Short-term Borrowings and Long-term Debt </b></font></p>
<p><font class="_mt" size="2">The schedule below provides a summary of short-term borrowings that consist of securities sold under agreements to repurchase, federal funds purchased and other borrowings. Securities sold under agreements to repurchase are overnight borrowings between PeoplesBank and its commercial depositors and are subject to daily repricing. Federal Funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. Other short-term borrowings consist of credit available through the Federal Home Loan Bank of Pittsburgh (FHLBP), Atlantic Central Bankers Bank (ACBB), M&T Bank and the Federal Reserve Discount Window. PeoplesBank maintains a line-of credit (Open Repo Plus) with the FHLBP which is a revolving term commitment used on an overnight basis. The term of this commitment may not exceed 364 days, and it reprices daily at market rates. PeoplesBank has approximately $<font class="_mt">19</font> million of collateralized borrowing availability at the Federal Reserve Discount Window. </font></p>
<p><font class="_mt" size="2">The following table presents a summary of aggregate short-term borrowings as of and for the years ended December 31, 2012, 2011 and 2010. </font></p>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="38%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i> </font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Repurchase<br />agreements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Short-term<br />borrowings</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Repurchase<br />agreements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Short-term<br />borrowings</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Repurchase<br />agreements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Short-term<br />borrowings</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Amount outstanding at end of year</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,763</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Weighted average interest rate at end of year</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.56</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.79</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.99</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Maximum amount outstanding at any month-end</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,166</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">12,647</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,623</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Daily average amount outstanding</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,843</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,546</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8,803</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="2">Approximate weighted average interest rate for the year</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.58</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.99</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.00</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr></table>
<p><font class="_mt" size="2">Securities that serve as collateral for securities sold under agreements to repurchase and pledged to provide access to the Federal Reserve Bank Discount Window and other short-term borrowing remain in available-for-sale securities. The fair value of these securities was $<font class="_mt">45,696,000</font> and $<font class="_mt">40,277,000</font> on December 31, 2012 and 2011, respectively. </font></p>
<div>
<p><font class="_mt" size="2">In June 2012, PeoplesBank restructured (i.e., extended) <font class="_mt">two</font> outstanding $<font class="_mt">5</font> million FHLB advances ($<font class="_mt">10</font> million total) to lock in low rates as a hedge against the possibility of rising market interest rates in the future. This transaction resulted in a $<font class="_mt">235,000</font> prepayment penalty that, under accounting rules, was deferred and embedded in the rates on the restructured advances where it will be recognized as interest expense over their respective repayment terms. The $5 million FHLB advance originally maturing December 2013 with a fixed rate of interest of <font class="_mt">2.39</font> percent was extended to June 2019 with a fixed rate of interest of 2.10 percent. The $5 million FHLB advance originally maturing July 2014 with a fixed rate of interest of 1.38 percent was extended to June 2018 with a fixed rate of interest of 1.87 percent. The impact of the debt restructure on current period earnings is immaterial. </font></p>
<p><font class="_mt" size="2">The following table presents a summary of long-term debt as of December 31, 2012 and 2011. </font></p>
<table cellspacing="0" cellpadding="0" width="80%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="72%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="center"> </p></td>
<td valign="bottom" width="1%">
<p align="center"> </p></td>
<td valign="bottom" width="9%">
<p align="center"> </p></td>
<td valign="bottom" width="3%">
<p align="center"> </p></td>
<td valign="bottom" width="1%">
<p align="center"> </p></td>
<td valign="bottom" width="9%">
<p align="center"> </p></td>
<td valign="bottom" width="1%">
<p align="center"> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="center"> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="2">PeoplesBank obligations:</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">FHLBP</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due January 2012, <font class="_mt">2.34</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due June 2012, <font class="_mt">4.25</font>% amortizing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">170 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due December 2012, <font class="_mt">1.91</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due May 2013, <font class="_mt">3.46</font>% amortizing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">245</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">818 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due December 2013, <font class="_mt">2.39</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due July 2014, <font class="_mt">1.38</font>%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due July 2015, <font class="_mt">1.90</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due July 2016, <font class="_mt">2.35</font>%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due June 2018, <font class="_mt">1.87</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due June 2019, <font class="_mt">2.10</font>%</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">0 </font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Total FHLBP</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,245</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35,988 </font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Capital lease obligation</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">260</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">330 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="2">Codorus Valley Bancorp, Inc. obligations:</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Junior subordinated debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due 2034, <font class="_mt">2.33</font>%, floating rate based on 3 month</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">LIBOR plus <font class="_mt">2.02</font>%, callable quarterly</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,093</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,093 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due 2036, <font class="_mt">1.88</font>%, floating rate based on 3 month</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">LIBOR plus <font class="_mt">1.54</font>%, callable quarterly</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,217</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,217 </font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 34.55pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Total long-term debt</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30,815</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">46,628 </font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">PeoplesBank's long-term debt obligations to FHLBP are fixed rate instruments. Under terms of a blanket collateral agreement with the FHLBP, the line-of-credit and long term advances are secured by FHLBP stock and qualifying loan receivables, principally real estate secured loans. As of December 31, 2012, total unused credit with the FHLBP was approximately $<font class="_mt">166</font> million. </font></p>
<p><font class="_mt" size="2">In June 2006, Codorus Valley formed CVB Statutory Trust No. 2, a wholly-owned special purpose subsidiary whose sole purpose was to facilitate a pooled trust preferred debt issuance of $<font class="_mt">7,217,000</font>. In November 2004, Codorus Valley formed CVB Statutory Trust No. 1 to facilitate a pooled trust preferred debt issuance of $<font class="_mt">3,093,000</font>. The Corporation owns all of the common stock of these nonbank subsidiaries, and the debentures are the sole assets of the Trusts. The accounts of both Trusts are not consolidated for financial reporting purposes in accordance with FASB ASC 810. For regulatory capital purposes, all of the Corporation's trust preferred securities qualified as Tier 1 capital for all reported periods. Trust preferred securities are subject to capital limitations under the FDIC's risk-based capital guidelines. The Corporation used the net proceeds from these offerings to fund its operations. </font></p>
<p><font class="_mt" size="2">Total long-term debt maturities over the next five years are as follows: $<font class="_mt">323,000</font> in 2013, $<font class="_mt">86,000</font> in 2014, $<font class="_mt">5,096,000</font> in 2015, $<font class="_mt">5,000,000</font> in 2016 and $<font class="_mt">0</font> in 2017. </font></p></div> </div>0.02020.01542009-12-312011-07-3135988000500000050000001000000050000005000000500000000170000818000202450000005000000050000005000000500000002450000.02330.01880.02390.01910.02340.0190.01380.02350.01870.0210.04250.03462034-12-312036-12-31-956000-979000419000-1144000-1057000385000-188000-78000-340007270000674500030970002810000600007200054500075000122700013640003099000332700041730003935000354000325000305100029530002540002210000.060.060.06<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 7-Deposits </b></font></p>
<p><font class="_mt" size="2">The composition of deposits as of December 31, 2012 and 2011 is shown below. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="58%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="right"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="right"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Noninterest bearing demand</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,476</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">73,760</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">NOW</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">77,531</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">68,518</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Money market</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">289,149</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">253,598</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Savings</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">34,372</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,309</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Time deposits less than $100,000</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">236,683</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">247,190</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Time deposits $100,000 or more</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">175,096</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">181,024</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total deposits</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">901,307</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">854,399</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The following table presents scheduled maturities of time deposits by year as of December 31, 2012. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="65%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="76%">
<p> </p></td>
<td valign="bottom" width="4%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="15%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="right"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2013</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">184,529</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2014</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">99,446</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2015</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">56,721</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2016</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">23,695</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2017</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">43,953</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Thereafter</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,435</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total time deposits</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">411,779</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>8543990009013070008543990008621850009013070009074390000907439000025359800028914900068518000775310003030900034372000159000159000160000136300013100001377000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 12-Stock-Based Compensation </b></font></p>
<p><font class="_mt" size="2">FASB ASC Topic 718 requires that the fair value of equity awards granted to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such awards. </font></p><font class="_mt" size="2"><u><b>
</b></u></font>
<div>
<p><font class="_mt" size="2">The following table presents information about the Corporation's stock plans, adjusted for stock dividends distributed, as of December 31, 2012. </font></p>
<div class="MetaData">
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="17%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="36%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Plan</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Types of grants</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Number of<br />shares<br />reserved (2)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Number of<br />outstanding<br />options (2)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>Number of shares<br />available for future<br />issuance (2)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2000 Stock Incentive<br />Plan (2000 Plan) (1)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Stock options<br />Stock appreciation rights<br />Restricted stock</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">129,301</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">99,571</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">2007 Long Term<br />Incentive Plan (LTIP)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Stock options<br />Stock appreciation rights<br />Restricted stock<br />Stock awards</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">384,107</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">154,613 </font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font size="2" class="_mt">(3)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">229,494</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2007 Employee Stock<br />Purchase Plan (ESPP)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Stock option</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">172,668</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">172,668</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Employee Stock<br />Bonus Plan (ESBP)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Stock awards</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">15,007</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="2">15,007</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table><br />
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="top" width="5%">
<p> </p></td>
<td valign="top" width="95%">
<p> </p></td></tr>
<tr><td valign="top">
<p><font class="_mt" size="2">(1)</font></p></td>
<td valign="top">
<div>
<p><font class="_mt" size="2">All options available for grant under the 2000 Plan have been granted.</font></p></div></td></tr>
<tr><td valign="top">
<p><font class="_mt" size="2">(2)</font></p></td>
<td valign="top">
<div>
<p><font class="_mt" size="2">Shares/options are subject to adjustment in the event of specified changes in the Corporation's capital structure.</font></p></div></td></tr>
<tr><td valign="top">
<p><font class="_mt" size="2">(3)</font></p></td>
<td valign="top">
<p><font class="_mt" size="2"><font class="_mt"><font class="_mt" size="2">Amount includes <font class="_mt">27,749</font> of unvested options.</font></font></font></p></td></tr></table></div>
<div>
<p><font class="_mt" size="2">In May 2012, the amendments were made to the LTIP and the ESPP to provide an additional <font class="_mt">250,000</font> shares and <font class="_mt">47,805</font> shares of common stock for future issuance, respectively.</font></p>
<p><font class="_mt" size="2"><u><b>Stock Incentive Plans (2000 Plan and LTIP)</b></u></font></p>
<p><font class="_mt" size="2">Options awarded under these plans to date have been granted with an exercise price equal to the fair value of the stock on the grant date, a minimum vesting period of six months and an expiration period of ten years. Restricted stock awards under these plans have been granted at fair value and with <font class="_mt">50</font>% of the shares vesting in two years and <font class="_mt">50</font>% in three years. Upon exercise and/or award, the Corporation has historically issued authorized, but unissued, common stock to satisfy the options/awards.</font></p></div></div><font class="_mt" size="2">The following table presents compensation expense and related tax benefits for stock option and restricted stock awards recognized on the consolidated statement of income. </font>
<table cellspacing="0" cellpadding="0" width="75%" align="center" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="61%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i> </font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Compensation expense</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">210</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">132</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Tax benefit</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(67</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(52</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Net income effect</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">203</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">158</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">101</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The tax benefit shown in the preceding table is less than the benefit that would be calculated using the Corporation's <font class="_mt">34</font>% statutory Federal tax rate. Under FASB ASC Topic 718, tax benefits are only recognized over the vesting period for options that ordinarily will generate a tax deduction when exercised (non-qualified stock options) and restricted stock awards. </font></p>
<p><font class="_mt" size="2">The Corporation granted <font class="_mt">11,899</font> non-qualified stock options, <font class="_mt">15,850</font> incentive stock options, and <font class="_mt">11,290</font> shares of restricted stock from the LTIP in 2012. In 2011, the Corporation granted <font class="_mt">23,557</font> non-qualified stock options, <font class="_mt">27,925</font> incentive stock options, and <font class="_mt">18,115</font> shares of restricted stock from the LTIP. In 2010, the Corporation granted <font class="_mt">21,726</font> non-qualified stock options, <font class="_mt">26,148</font> incentive stock options, and <font class="_mt">18,306</font> shares of restricted stock from the LTIP. The weighted average grant-date fair value of options granted was $<font class="_mt">4.74</font> in 2012, $<font class="_mt">2.62</font> in 2011 and $<font class="_mt">2.89</font> in 2010. The fair value of the options awarded is estimated on the date of grant using the Black-Scholes valuation model, which is dependent upon certain weighted-average assumptions as presented below. </font></p>
<table cellspacing="0" cellpadding="0" width="75%" align="center" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="61%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Expected life (in years)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.43</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5.63</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.09</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Risk-free interest rate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.10</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.97</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.72</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Expected volatility</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">43.84</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">48.60</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">44.20</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Expected dividend yield</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3.19</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3.50</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3.50</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr></table>
<p><font class="_mt" size="2">The expected life of the options was estimated based on historical behavior and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is the U.S. Treasury rate commensurate with the expected life of the options on the grant date. Volatility of the Corporation's stock price was based on historical volatility for the period commensurate with the expected life of the options. Dividend yield was based on dividends for the most current year divided by the average market price for the most current year. </font></p>
<p><font class="_mt" size="2">A summary of stock options activity from the option and stock incentive plans, adjusted for stock dividends distributed, is shown below. </font></p>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="39%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="14%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="14%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Options</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Exercise Price<br />Per Share</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Remaining<br />Contractual Term</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Aggregate<br />Intrinsic Value<br />($000)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Outstanding at January 1, 2012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">259,469</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9.99</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6.6 years</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">65</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Granted</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">27,749</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Exercised</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(29,096</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8.66</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Cancelled</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(3,938</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.86</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Expired</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 3px;" valign="bottom">
<p><font class="_mt" size="2">Outstanding at December 31, 2012</font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">254,184</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p align="right"><font class="_mt" size="2">10.70</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p align="right"><font class="_mt" size="2">5.8 years</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,107</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Exerciseable at December 31, 2012</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">226,435</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10.20</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5.3 years</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,098</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The following table presents information about stock options exercised for the years ended December 31, 2012, 2011 and 2010. </font></p>
<table cellspacing="0" cellpadding="0" width="75%" align="center" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="62%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Total intrinsic value of options exercised</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">140</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Cash received from options exercised</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">252</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">127</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Tax deduction realized from options exercised</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">48</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The following table presents information about non-vested options and restricted stock, adjusted for stock dividends distributed, for the year ended December 31, 2012. </font></p>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="43%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Stock Options</b></font></p></td>
<td valign="bottom">
<p> </p>
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Restricted Stock</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Options</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Exercise Price<br />Per Share</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Shares</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Grant Date<br />Fair Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Non-vested at January 1, 2012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">55,137</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.99</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">44,575</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.90</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Vested</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(51,199</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.99</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(16,261</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.54</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Cancelled</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3,938</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.86</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 1px;" valign="bottom">
<p><font class="_mt" size="2">Granted</font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">27,749</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom"> </td>
<td style="padding-bottom: 1px;" valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,290</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Non-vested at December 31, 2012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">27,749</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">39,604</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10.00</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">As of December 31, 2012, total unrecognized compensation cost related to non-vested options and restricted stock was $<font class="_mt">378,000</font>. The cost is expected to be recognized over a weighted average period of 1.0 years. </font></p>
<p><font class="_mt" size="2"><u><b>Employee Stock Purchase Plan (ESPP) </b></u></font></p>
<p><font class="_mt" size="2">Under the ESPP, eligible employees can purchase common stock of the Corporation at <font class="_mt">85</font>% of the fair market value of the stock at the beginning or end of the six-month offering period, whichever is lower. The ESPP is considered to be a compensatory plan. </font></p>
<p><font class="_mt" size="2">The following table presents information about the ESPP for the years ended December 31, 2012, 2011 and 2010. </font></p>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="62%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">ESPP shares purchased</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,784</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14,363</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Average purchase price per share (85% of market value)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8.969</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.467</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5.242</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Compensation expense recognized (in thousands)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">24</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">25</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">In all periods shown above, the Corporation has issued authorized, but unissued, common stock to satisfy the purchase. </font></p>
<p><font class="_mt" size="2"><u><b>Employee Stock Bonus Plan (ESBP) </b></u></font></p>
<p><font class="_mt" size="2">The ESBP is administered by nonemployee members of the Corporation's Board of Directors, under which the Corporation may issue shares of its common stock to employees as performance based compensation. There were no shares of common stock issued under the ESBP in 2012 and 2011 and, <font class="_mt">81</font> shares of common stock were issued in 2010. </font></p> </div>70007000140002012-12-11102200010220001454000145400016900001690000-60002475000529000-3010000825000825000108700010870003840003840001.220.291.220.370.000.550.482.030.610.410.531.210.291.210.370.000.550.472.000.600.400.53<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Per Common Share Data <br /></b>Basic net income per common share is calculated as net income available to common shareholders divided by the weighted average number of common shares outstanding. Diluted net income per common share is calculated as net income available to common shareholders divided by the weighted average number of common shares outstanding plus common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Corporation relate solely to outstanding stock options and warrants and are determined using the treasury stock method. All share and per share amounts are adjusted for stock dividends that are declared prior to the issuance of the consolidated financial statements. </font></p>
<p><font class="_mt" size="2">The computation of net income per common share for the years ended December 31, 2012, 2011 and 2010 is provided in the table below. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="59%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(in thousands, except per share data)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Net income available to common shareholders</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,010</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,319</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,228</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Weighted average shares outstanding (basic)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,441</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,366</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,298</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Effect of dilutive stock options</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">61</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">28</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Weighted average shares outstanding (diluted)</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,502</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,394</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,304</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Basic earnings per common share</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2.03</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.22</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.22</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Diluted earnings per common share</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.21</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.21</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Anti-dilutive stock options and common stock warrants</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">excluded from the computation of earnings per share</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">106</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">486</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table></div> </div>0.1540.1930.2480.3400.3400.3400.0100.0090.007-0.0010.0120.011-0.129-0.112-0.075220000316000207000267000237000296000378000P1Y3100052000670002500019000240005.2427.4678.969167000017300001896000<div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="34%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="2">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Fair Value Measurements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 1)<br />Quoted Prices in<br />Active Markets for<br />Identical Assets</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 2)<br />Significant Other<br />Observable Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 3)<br />Significant Other<br />Unobservable Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Impaired loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,493</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,493</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Impaired loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,222</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,222</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,093</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,093</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="34%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="2">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Fair Value Measurements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 1)<br />Quoted Prices in<br />Active Markets for<br />Identical Assets</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 2)<br />Significant Other<br />Observable Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 3)</b><font class="_mt" size="1"><br /><b>Significant Other<br />Unobservable Inputs</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">38,058</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">38,058</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-<br />backed, residential</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,233</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,233</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102,739</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102,739</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,134</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,134</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,673</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,673</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-<br />backed, residential</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">106,444</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">106,444</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">86,610</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">86,610</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table> </div><div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>Note 16—Fair Value Measurements and Fair Values of Financial Instruments</b></font></p>
<p><font class="_mt" size="2">The Corporation uses its best judgment in estimating the fair value of the Corporation's assets and liabilities; however, there are inherent weaknesses in any estimation technique. Therefore, the fair value estimates herein are not necessarily indicative of the amounts that could be realized in sales transactions on the dates indicated. The estimated fair value amounts have been measured as of their respective period-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values subsequent to the respective reporting dates may be different than the amounts reported at each period end. </font></p>
<p><font class="_mt" size="2">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date. GAAP establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="top" width="5%">
<p> </p></td>
<td valign="top" width="95%">
<p> </p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p> </p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p> </p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed. </font></p></td></tr></table>
<p><font class="_mt" size="2">Since management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value, an asset's or liability's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management reviews and updates the fair value hierarchy classifications on a quarterly basis. </font></p>
<p><font class="_mt" size="2"><b>Assets Measured at Fair Value on a Recurring Basis</b></font></p>
<p><font class="_mt" size="2"><b>Securities available-for-sale</b></font></p>
<p><font class="_mt" size="2">The fair values of investment securities were measured using information from a third-party pricing service. The pricing service uses quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique, used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted prices. At least annually, the Corporation reviews a random sample of the pricing information received from the third-party pricing service by comparing it to price quotes from third-party brokers. Historically, price deviations have been immaterial. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="34%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="2">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Fair Value Measurements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 1)<br />Quoted Prices in<br />Active Markets for<br />Identical Assets</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 2)<br />Significant Other<br />Observable Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 3)</b><font class="_mt" size="1"><br /><b>Significant Other<br />Unobservable Inputs</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">38,058</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">38,058</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-<br />backed, residential</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,233</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,233</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102,739</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102,739</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,134</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,134</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,673</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,673</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-<br />backed, residential</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">106,444</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">106,444</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">86,610</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">86,610</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2"><b>Assets Measured at Fair Value on a Nonrecurring Basis</b></font></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="2"><b>Impaired loans</b></font></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="2">Impaired loans are those that are accounted for under FASB ASC Topic 310, in which the Corporation has measured impairment generally based on the fair value of the loan's collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These loans are included as Level 3 fair values, based on the lowest level of input that is significant to the fair value measurements. At December 31, 2012, the fair value consists of loan balances of $<font class="_mt">4,493,000</font>, net of a valuation allowance of $<font class="_mt">1,162,000</font> and charge-offs of $<font class="_mt">2,605,000</font>, compared to loan balances of $<font class="_mt">4,222,000</font>, net of a valuation allowance of $<font class="_mt">397,000</font> and charge-offs of $<font class="_mt">2,485,000</font>, at December 31, 2011.</font></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="2"><b> </b></font> </p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="2"><b>Foreclosed Real Estate </b></font></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="2">Other real estate property acquired through foreclosure is initially recorded at fair value of the property at the transfer date less estimated selling cost. Subsequently, other real estate owned is carried at the lower of its carrying value or the fair value less estimated selling cost. Fair value is usually determined based upon an independent third-party appraisal of the property or occasionally upon a recent sales offer. At December 31, 2012, the carrying value of foreclosed real estate with a valuation allowance was $<font class="_mt">2,779,000</font> ($<font class="_mt">6,491,000</font> less a $<font class="_mt">3,712,000</font> allowance). At December 31, 2011, the carrying value of foreclosed real estate with a valuation allowance was $<font class="_mt">14,093,000</font> ($<font class="_mt">16,488,000</font> less a $<font class="_mt">2,395,000</font> allowance).</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="34%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="2">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Fair Value Measurements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 1)<br />Quoted Prices in<br />Active Markets for<br />Identical Assets</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 2)<br />Significant Other<br />Observable Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 3)<br />Significant Other<br />Unobservable Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Impaired loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,493</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,493</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Impaired loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,222</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,222</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,093</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,093</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Corporation has utilized Level 3 inputs to determine fair value: </font></p>
<div class="MetaData">
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="32%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="13%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="22%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>Quantitative Information about Level 3 Fair Value Measurements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair Value<br />Estimate</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Valuation<br />Techniques</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unobservable<br />Input</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Range</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Impaired loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,493</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"><font class="_mt" size="2">Appraisal (1) </font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"><font class="_mt" size="2"><font class="_mt"><font class="_mt" size="2">Appraisal adjustments</font></font>(2)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"><font class="_mt" size="2"><font class="_mt"><font class="_mt" size="2">20</font></font>% - <font class="_mt">30</font>%</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="center"><font class="_mt" size="2">Appraisal (1), (3)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table><br />
<table class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="top" width="5%">
<p> </p></td>
<td valign="top" width="95%">
<p> </p></td></tr>
<tr><td valign="top">
<p align="center"><font class="_mt" size="2">(1)</font></p></td>
<td class="MetaData" valign="top">
<p><font class="_mt" size="2">Fair value is generally determined through independent appraisals, which generally include various level 3 inputs that are not identifiable.</font></p></td></tr>
<tr><td valign="top">
<p align="center"><font class="_mt" size="2">(2)</font></p></td>
<td class="MetaData" valign="top">
<p><font class="_mt" size="2">Appraisals may be adjusted downward by the Corporation's management for qualitative factors such as economic conditions, and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="top">
<p align="center"><font class="_mt" size="2">(3)</font></p></td>
<td style="border-bottom: black 1px solid;" class="MetaData" valign="top">
<p><font class="_mt" size="2">May include qualitative adjustments by the Corporation's management and estimated liquidation expenses.</font></p></td></tr></table></div>
<p><font class="_mt" size="2"><b>Disclosures about Fair Value of Financial Instruments</b></font></p>
<div>
<p><font class="_mt" size="2">The following presents the carrying amount and estimated fair value of the Corporation's financial instruments as of December 31, 2012 and 2011 and placement in the fair value hierarchy at December 31, 2012. </font></p>
<p><font class="_mt" size="2"><b>Cash and cash equivalents <br /></b>The carrying amount is a reasonable estimate of fair value. </font></p>
<p><font class="_mt" size="2"><b>Securities available for sale <br /></b>The fair value of securities available for sale is determined in accordance with the methods described under FASB ASC Topic 820 as described above. </font></p>
<p><font class="_mt" size="2"><b>Restricted investment in bank stocks <br /></b>The carrying amount of restricted investment in bank stocks is a reasonable estimate of fair value. The Company is required to maintain minimum investment balances in these stocks, which are not actively traded and therefore have no readily determinable market value. </font></p>
<p><font class="_mt" size="2"><b>Loans held for sale</b> <br />The fair value of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. </font></p>
<p><font class="_mt" size="2"><b>Loans, net</b> <br />The fair value of loans is estimated using discounted cash flow analyses using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans were first segregated by type such as commercial, real estate, and consumer, and were then further segmented into fixed and variable rate. Projected future cash flows are calculated based upon contractual maturity or call dates. Generally, variable rate loans that reprice frequently have no significant change in credit risk; fair value is based on carrying value. </font></p>
<p><font class="_mt" size="2"><b>Interest receivable <br /></b>The carrying value of interest receivable is a reasonable estimate of fair value. </font></p>
<p><font class="_mt" size="2"><b>Deposits <br /></b>The fair value of demand deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date. The fair values of time deposits are estimated using a discounted cash flow analyses. The discount rates used are based on rates currently offered for deposits with similar remaining maturities. The fair values of variable rate time deposits that reprice frequently are based on carrying value. The fair values of time deposit liabilities do not take into consideration the value of the Company's long-term relationships with depositors, which may have significant value. </font></p>
<p><font class="_mt" size="2"><b>Short-term borrowings <br /></b>For theses short-term instruments, the carrying amount is a reasonable estimate of fair value.</font></p>
<p><font class="_mt" size="2"><b>Long-term debt</b> <br />Long-term debt includes FHLB advances (Level 2) and junior subordinated debt (Level 3). The fair value of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices are obtained from this active market and represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. The fair value of junior subordinated debt is estimated using discounted cash flow analysis, based on market rates and spread characteristics of similar debt with similar credit risk characteristics, terms and remaining maturity. </font></p>
<p><font class="_mt" size="2"><b>Interest payable <br /></b>The carrying value of interest payable is a reasonable estimate of fair value. </font></p>
<p><font class="_mt" size="2"><b>Off-balance sheet instruments <br /></b>Off-balance sheet instruments consist of lending commitments and letters of credit are based on fees currently charged in the market to enter into similar arrangements, taking into account the remaining terms of the agreements and counterparties' credit standing. These amounts were not considered material. </font></p>
<div>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="31%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="2">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="2">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Fair Value Estimates</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Carrying<br />Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Estimated<br />Fair Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 1)<br />Quoted Prices in<br />Active Markets<br />for Identical<br />Assets</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 2)<br />Significant Other<br />Observable<br />Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>(Level 3)<br />Significant Other<br />Unobservable<br />Inputs</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Financial assets</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34,866</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34,866</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34,866</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">229,030</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Restricted investment in bank stocks</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,863</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,863</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,863</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans held for sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,091</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,151</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,151</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">727,832</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">753,299</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">753,299</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest receivable</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,579</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,579</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,579</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Financial liabilities</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deposits</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">901,307</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">907,439</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">907,439</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Short-term borrowings</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30,815</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">26,568</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,289</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,279</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest payable</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">470</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">470</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">470</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Off-balance sheet instruments</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Carrying<br />Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Estimated<br />Fair Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Financial assets</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">32,195</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">32,195</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Securities available-for-sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">233,861</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">233,861</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Restricted investment in bank stocks</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,635</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,635</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans held for sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,869</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,926</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Loans, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">684,813</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">694,260</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest receivable</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,652</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,652</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Financial liabilities</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deposits</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">854,399</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">862,185</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Short-term borrowings</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">46,628</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">41,529</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest payable</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">521</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">521</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Off-balance sheet instruments</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table>
<p align="center"><font class="_mt" size="2">82</font></p></div></div> </div><div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Fair Value of Financial Instruments <br /></b>Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. </font></p></div> </div>1297000100400073300010000000247100025830002560000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Loans Held for Sale</b> <br />Loans held for sale are comprised of residential mortgage loans originated by the Bank and servicing of the loan is not retained after sale. Loans held for sale are reported at the lower of cost or fair value, as determined by the aggregate commitments from investors or current investor yield requirements. The amount, by which cost exceeds fair value, if any, is accounted for as a valuation allowance and is charged to expense in the period of the change. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan and is recorded in noninterest income. </font></p></div> </div><div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Loans <br /></b>Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at their outstanding unpaid principal balances less amounts charged off, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Generally, loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) over the contractual life of the loan. The loans receivable portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following industry classes: builder & developer, commercial real estate investor, residential real estate investor, hotel/motel, wholesale & retail, agriculture, manufacturing and all other. Consumer loans consist of the following classes: residential mortgage, home equity and all other. </font></p>
<p><font class="_mt" size="2">For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan </font></p>
<p><font class="_mt" size="2">is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to the Corporation's judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. </font></p></div> </div>830500084000202300039400078700018060007723000200300034500017100086000151000880004750002370008140000102000142400048500095500019130006870000125900059900023800023700023700012400049500067100039700010000014700001200000397000000000300000116200010000014700002150000116200000000070000006759270001687900010062300052871000120322000565470005486840001141680001272430004795600058167000252620002112000062012000708460000204570008446900064948000122379000673950005798730001169780001285870003964300065518000395590002342600063688000<div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="38%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Pass</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Special<br />Mention</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Substandard</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Nonaccrual</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">79,101</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,567</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,013</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">255</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">96,936</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">107,415</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,563</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,459</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,277</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">122,714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">62,327</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,361</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">687</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">66,419</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">66,155</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,521</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">983</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,784</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">70,443</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">39,559</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,457</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">121,223</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,156</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">612</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,843</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">124,834</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">561,185</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">20,168</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">18,281</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,846</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">607,480</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,421</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">32</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">53</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,511</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,406</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">112</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,858</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">39,318</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">325</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">351</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">291</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,285</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">128,145</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">442</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">571</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">129,654</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">689,330</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,610</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">18,852</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,342</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">737,134</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">90,429</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,392</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">533</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,160</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">103,514</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102,374</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13,519</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">161</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,079</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">118,133</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,331</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,681</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,564</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">54,193</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,354</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">811</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,970</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,262</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">16,879</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">111,227</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">9,095</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">511,566</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,041</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,708</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,260</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">565,575</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,113</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">170</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,324</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,088</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">79</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,390</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">47,359</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">597</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">48,226</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">126,560</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">683</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">256</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">441</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">127,940</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">638,126</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">40,724</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,964</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,701</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">693,515</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table> </div>1758800048900028910000449900037810001689100039650006970002700002230007140002040005520002867400047100012467000024550003048000276070005736000106700064200034000069900085000273100035760000170900001090005250002343000012330006770002360000320000053450000400000045600010670003967000013780008420006200004740002044000100000000001000100000003240000000000324000195000001290000678237000173680001006450005287100012021300056833000551972000116054000126265000473120005811900025976000208340006201200072293700020928000962810006494800012253500067592000595667000119437000127270000387710006564400040258000228550006368800000000000000000186000000000018600018600000003577000017090000109000525000234300001234000678000236000032000005855000040000004560001067000396700001888000122300062000060300020440003275000170100028300008600007770001327000-80003000-9000108000-2500012500000150000490004270000382000-400086000017600077700012000012600035500025900013270002810002930004940003500000110000154000-1670002643400021263000496000604400005844000514700021240005150001520001430002620005360002565500048100091090000495500028160004955000435000274000707000133000179000069700010990003500042400003910007900010800037000400050001300030001245000340005760000179000280002810002200080004200060006900045600078800003740000308000073000200000011000200047800009800002120004000142000110001000050005000175880004890002891000044990003781000396500027000022300071400020400055200028674000471000124670000245500030480005736000642000340000699000850002731000119500039700010000014700001200000000003000011620001000001470000215000000000700000<div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="26%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unpaid<br />Principal<br />Balance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Related<br />Allowance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unpaid<br />Principal<br />Balance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Related<br />Allowance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with no related allowance:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,211</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,211</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,627</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,627</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,736</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,836</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,965</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,065</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">72</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">72</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">463</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">463</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,048</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,323</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,781</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,483</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,611</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,619</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,619</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">85</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">111</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">204</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">314</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">642</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">718</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with no related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">24,316</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,921</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">15,866</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">18,351</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with a related allowance:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">256</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">256</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">264</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">264</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,659</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,659</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">700</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">89</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">89</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other commercial</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">972</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">972</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">215</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">880</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">880</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">120</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with a related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,358</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,358</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,162</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,722</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,722</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">397</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,467</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,467</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,891</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,891</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,736</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,836</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,965</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,065</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,731</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,731</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">700</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,048</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,323</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,781</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,455</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,583</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">215</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">85</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">111</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">204</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">314</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">642</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">718</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">28,674</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">31,279</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,162</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,588</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,073</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">397</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>200730004890002891000044990006056000406500027000022300071400031400055200031279000471000124670000258300053230005836000718000340000699000111000273100016030000052480000506700022420001958000515000152000143000262000443000223460000884900004020000271100049100004350002740007070001330003070001056000042400003830007900010800037000400050001300030001139000057000001770002800028100022000800042000600050007880000374000030800007300020000001100020004720000920000212000400014200011000100005000500014892000158660000262700003619000378100039650002700002230007140002040004630002431600001221100001483000304800057360006420003400006990008500072000183510000262700003619000605600040650002700002230007140003140004630002692100001221100001611000532300058360007180003400006990001110007200052330004960007960000777000290500016600000009300033090004810002600000935000105000450000000148300043000350000080000000000106000340006000020000000006400000000000000060000600000000000068980001722000489000264000088000000000089000435800047100025600009720000000002659000172200048900026400008800000000008900043580004710002560000972000000000265900015660008290002663000964000202000015320007341000741000180800083960001767000239300052200036730003015000124970001283000375600023820003344000524400047590007862000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 13-Income Taxes</b></font></p>
<p><font class="_mt" size="2">The following table presents the provision for income taxes for the years ended December 31, 2012, 2011 and 2010. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="90%">
<tr style="font-size: 1px;"><td valign="bottom" width="53%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Current tax provision</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Federal</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,486</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,440</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,099</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">State</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">232</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">234</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">178</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total current tax provision</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,718</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,674</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,277</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Deferred tax expense (benefit)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Federal</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">419</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(979</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(956</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">State</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(34</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(78</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(188</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total deferred tax expense (benefit)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">385</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,057</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,144</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total tax provision</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,103</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,617</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,133</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The provision for income taxes includes $<font class="_mt">145,000</font>, $<font class="_mt">42,000</font> and $<font class="_mt">37,000</font> of applicable income tax expense related to net investment security gains in 2012, 2011 and 2010, respectively. </font></p>
<p><font class="_mt" size="2">The differences between the effective income tax rate and the Federal statutory income tax rate for the years ended December 31, 2012, 2011 and 2010 are shown below. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="90%">
<tr style="font-size: 1px;"><td valign="bottom" width="53%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Statutory tax rate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Increase (decrease) resulting from:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Low-income housing credits</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1.8</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3.6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Tax-exempt interest income</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(7.5</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(11.2</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(12.9</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Bank owned life insurance income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1.7</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2.6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">State income taxes, net of federal tax benefit</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(0.1</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other, net</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.7</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.9</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Effective income tax rate</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">24.8</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">19.3</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">15.4</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr></table>
<p><font class="_mt" size="2">Significant components of the Corporation's deferred tax asset, included in other assets as of December 31, 2012 and 2011 are shown below. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="80%">
<tr style="font-size: 1px;"><td valign="bottom" width="75%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Deferred tax assets</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Allowance for loan losses</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,327</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,099</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deferred compensation</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,364</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,227</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Low-income housing partnerships</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">580</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">601</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Tax credit carryforward</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">75</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">545</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,327</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,738</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">72</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total deferred tax assets</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">6,745</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Deferred tax liabilities</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deferred loan fees</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">436</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">514</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Depreciation</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">221</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">254</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net unrealized gains on available-for-sale securities</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,953</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,051</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">325</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">354</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total deferred tax liabilities</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,935</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,173</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Net deferred tax assets</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,810</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,097</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The Corporation has low-income housing tax credit carryforwards that expire through 2032. Based on the level of historical income projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Corporation will realize the benefits of its deferred tax assets as of December 31, 2012. </font></p> </div>-1719000-1960000-282500011330002230002970001617000253000521000-139000938000725000310300024900097700051100089000011330001617000310300016300062000-73000540260005118600063343000-65000-166000-51000554450004710600072298000-755000-59000-416000770000411000-36500029127000-2896000-164350006000280006100043100046200056000014770001103000896000440270001090700045411000112630001173800011503000113930004651200011692000116080001181900038151000390830004061300078063900081283100019640000348660001315400066300031430001235900075300031270003131000295800026910001052700074600026400002677000251900011397000111560009615000166900032500010890003130007900003200008800011400012200027883000281170003423500030873000776400033052000813600086070008545000870200035985000905200089310009300000335400060003823000600033670007000244200024300002424000-13219000-12525000-1057800022000846000533000<div> <div>
<p><font class="_mt" size="2"><b>Investment Securities <br /></b>The classification of securities is determined at the time of acquisition and is reevaluated at each reporting date. Securities classified as available-for-sale are debt securities that the Corporation intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in maturity mix of assets and liabilities, income or liquidity needs, regulatory considerations and other factors. Debt securities available-for-sale are carried at fair value, with unrealized gains and losses, net of taxes, reported as a component of accumulated other comprehensive income in shareholders' equity. Premiums and discounts are recognized in interest income using the interest method over the estimated life of the security. Realized gains and losses from the sale of available-for-sale securities are computed on the basis of specific identification of the adjusted cost of each security and are shown net as a separate line item in the statement of income. </font></p>
<p><font class="_mt" size="2">Declines in the fair value of available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management must first assess whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps are done before assessing whether the cost basis of the investment will be recovered. The assessment of the probability of recovery would consider, among other things, the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer. More information about investment securities is provided in Note 3 – Securities.</font></p></div> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="66%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Available-for-sale</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amortized<br />Cost</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair<br />Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due in one year or less</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,501</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,651</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due after one year through five years</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">177,725</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">184,708</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due after five years through ten years</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">27,590</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Due after ten years</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,113</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total debt securities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">225,375</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>13276000137480001531200010010002000000<div> <font class="_mt" size="2">
</font>
<div>
<p><font class="_mt" size="2"><b>NOTE 15-Contingent Liabilities </b></font></p>
<p><font class="_mt" size="2">Periodically, the Corporation and its subsidiary Bank may be defendants in legal proceedings relating to the conduct of their banking business. Most of such legal proceedings are normal parts of the banking business and, in management's opinion, do not materially affect the financial position or results of operations of the Corporation. </font></p></div> </div>115320001706400091889000011985000958406000116090001012132000105227000105973700011294000071750007500018370003340008380003370006810000255600022100011300075000175000330006580001440007626000175000156100034500010170009490006787000188700031400020100083000155000300006980005250008702000184000217000039400090700018060008120000200300034500017100086000151000880005050002370009302000202000157100048500011700001913000803200012590005990002380002370002370001240001195000671000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Allowance for Loan Losses</b> <br />The allowance for loan losses represents the Corporation's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. While the Corporation attributes a portion of the allowance to individual loans and groups of loans that it evaluates and determines to be impaired, the allowance is available to cover all charge-offs that arise from the loan portfolio. </font></p>
<p><font class="_mt" size="2">The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. The Corporation performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Corporation's past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. </font></p>
<p><font class="_mt" size="2">The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired, generally substandard and nonaccrual loans. For loans that are classified as impaired, an allowance is established when the collateral value (or discounted cash flows or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these classes of loans, adjusted for qualitative (environmental) risk factors. Historical loss rates are based on a two year rolling average of net charge-offs. Qualitative risk factors that supplement historical losses in the evaluation of loan pools include: </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="top" width="5%">
<p> </p></td>
<td valign="top" width="5%">
<p> </p></td>
<td valign="bottom" width="90%">
<p> </p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in national and local economies and business conditions </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the value of collateral for collateral dependent loans </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the level of concentrations of credit </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the volume and severity of classified and past due loans </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the nature and volume of the portfolio </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in collection, charge-off, and recovery procedures </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in underwriting standards and loan terms </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the quality of the loan review system </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the experience/ability of lending management and key lending staff </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Regulatory and legal regulations that could affect the level of credit losses </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Other pertinent environmental factors </font></p></td></tr></table>
<p><font class="_mt" size="2">Each factor is assigned a value to reflect improving, stable or declining conditions based on the Corporation's best judgment using relevant information available at the time of the evaluation. An </font></p>
<p><font class="_mt" size="2">unallocated component is maintained to cover uncertainties that could affect the Corporation's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the loan portfolio. </font></p>
<p><font class="_mt" size="2">As disclosed in Note 4-Loans, the Corporation engages in commercial and consumer lending. Loans are made within the Corporation's primary market area and surrounding areas, and include the purchase of whole loan or participation interests in loans from other financial institutions. Commercial related loans, which pose the greatest risk of loss to the Corporation, whether originated or purchased, are generally secured by real estate. Within the broad commercial loan segment, the builder & developer and commercial real estate investor loan classes generally present a higher level of risk than other commercial loan classifications. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties, unstable real estate prices and the dependency upon successful construction and sale or operation of the real estate project. Within the consumer loan segment, junior (i.e., second) liens present a slightly higher risk to the Corporation because economic and housing market conditions can adversely affect the underlying value of the collateral and the ability of some borrowers to service their debt. </font></p>
<p><font class="_mt" size="2">A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The Corporation determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Loans that are deemed impaired are evaluated for impairment loss based on the net realizable value of the collateral, as applicable. Loans that are not collateral dependent will rely on the present value of expected future cash flows discounted at the loan's effective interest rate to determine impairment loss. Large groups of smaller balance homogeneous loans such as residential mortgage loans, home equity loans and other consumer loans are collectively evaluated for impairment, unless they are considered to be a troubled debt restructuring. </font></p>
<p><font class="_mt" size="2">An allowance for loan losses is established for an impaired commercial loan if its carrying value exceeds its estimated fair value. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals of the underlying collateral. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the most recent appraisal and the condition of the property. Appraisals are generally discounted to provide for selling costs and other factors to determine an estimate of the net realizable value of the property. For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower's financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. In instances when specific consumer related loans become impaired, they may be partially or fully charged off, which obviates the need for a specific allowance. </font></p>
<p><font class="_mt" size="2">Loans whose terms are modified are classified as troubled debt restructurings if the Corporation grants borrowers experiencing financial difficulties concessions that it would not otherwise consider. </font></p>
<p><font class="_mt" size="2">Concessions granted under a troubled debt restructuring may involve an interest rate that is below the market rate given the associated credit risk of the loan or an extension of a loan's stated maturity date. Loans classified as troubled debt restructurings are designated as impaired. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for a reasonable period of time, generally six consecutive months after modification and future payments are reasonably assured. </font></p>
<p><font class="_mt" size="2">Federal regulatory agencies, as an integral part of their examination process, periodically review the Corporation's allowance for loan losses and may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to the Corporation. Based on a comprehensive analysis of the loan portfolio, the Corporation believes that the level of the allowance for loan losses at December 31, 2012 is adequate. </font></p></div> </div>692000118600011701000011600000449900029700001126000020790004410002360003500001700005520008342000025500001843000178400078460003277000496000291000152000053000687000693515000173680001035140005287100011701000124821000603280005655750001181330001279400004822600058390000259760006381260002132400062564000407240002964000011600000449900029700001126000020790004410002360003500001700005520001687900090429000528710001112270005419300051156600010237400012656000047359000580880002526200021113000583310000113920000909500023540004004100013519000683000597000790000700036810004890005330000081100027080001610002560003400018800071400034000073713400020928000969360006494800083420001248340007044300060748000012271400012965400040285000658580004025800068933000023511000664190002061000018852000025500001843000178400078460003277000496000291000152000053000687000204570007910100064948000121223000661550005611850001074150001281450003931800065406000395590002342100062327000065670000115600015210002016800095630004420003250001120000500013610004710001101300006120009830001828100024590005710003510001880006990003200020440006848130007278320002887000429000130700037650002869000292600030910003151000031510000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 4-Loans </b></font></p>
<p><font class="_mt" size="2">The table below provides the composition of the loan portfolio at December 31. The portfolio is comprised of <font class="_mt">two</font> segments, commercial and consumer loans. The commercial loan segment is disaggregated by industry class which allows us to monitor risk and performance. Those industries representing the largest dollar investment and most risk are listed separately. The other commercial loans category is comprised of a multitude of industries, including health services, professional services, public administration, restaurant, service, transportation, finance, natural resources, recreation and religious organization. The Corporation has not engaged in sub-prime residential mortgage originations.</font></p><br />
<table border="0" cellspacing="0" cellpadding="0" width="80%">
<tr style="font-size: 1px;"><td valign="bottom" width="70%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">96,936</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">103,514 </font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">122,714</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">118,133</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">66,419</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,564</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">70,443</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,834</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">607,480</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">565,575</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Residential mortgages</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">23,511</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,324</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">65,858</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,390</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">40,285</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">48,226</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">129,654</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">127,940</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">737,134</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">693,515 </font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">Concentrations of credit risk arise when a number of customers are engaged in similar business activities in the same geographic region or have similar economic features that could cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Most of the Corporation's business is with customers in York County, Pennsylvania and northern-central Maryland, specifically Baltimore, Harford and Carroll counties. Although this focus may pose a concentration risk geographically, the Corporation believes that the diverse local economy and our detailed knowledge of the customer base lessens this risk. At December 31, 2012 and 2011, the Corporation had <font class="_mt">two</font> industry concentrations that exceeded <font class="_mt">10</font> percent of the total loan portfolio: builder & developer, which was <font class="_mt">13.2</font> and <font class="_mt">14.9</font> percent of the portfolio at December 31, 2012 and 2011, respectively; and commercial real estate investor, which was <font class="_mt">16.6</font> and <font class="_mt">17.0</font> percent of the portfolio, respectively. Loans to borrowers within these industries are usually collateralized by real estate.</font></p>
<p><font class="_mt" size="2">The principal balance of outstanding loans to directors, executive officers, principal shareholders and any associates of such persons was $<font class="_mt">429,000</font> at December 31, 2012 and $<font class="_mt">2,887,000</font> at December 31, 2011. During 2012, total additions were $<font class="_mt">1,307,000</font> and total repayments and reductions were $<font class="_mt">3,765,000</font>. Related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than normal risk of collection. As of year-end 2012, all loans to this group were current and performing in accordance with contractual terms.</font></p>
<p><font class="_mt" size="2">The Corporation's internal risk rating system follows regulatory guidance as to risk classifications and definitions. Every approved loan is assigned a risk rating. Generally, risk ratings for commercial related loans and residential mortgages held for investment are determined by a formal evaluation of risk factors performed by the Corporation's underwriting staff. For consumer loans, and commercial loans up to $<font class="_mt">750,000</font>, the Corporation uses third-party credit scoring software models for risk rating purposes. The loan portfolio is monitored on a continuous basis by loan officers, loan review personnel and senior management. Adjustments of loan risk ratings are generally performed by the Special Asset Committee, which includes senior management. The Committee, which meets monthly, makes changes, as appropriate, to risk ratings when it becomes aware of credit events such as payment delinquency, cessation of a business or project, bankruptcy or death of the borrower, or changes in collateral value. </font></p>
<p><font class="_mt" size="2">The Corporation uses <font class="_mt">ten</font> risk ratings to grade loans. The first <font class="_mt">seven</font> ratings, representing the lowest risk, are combined and given a "pass" rating. A pass rating is a satisfactory credit rating, which applies to a loan that is expected to perform in accordance with the loan agreement and has a low probability of loss. A loan rated "special mention" has a potential weakness which may, if not corrected, weaken the loan or inadequately protect the Corporation's position at some future date. A loan rated "substandard" is inadequately protected by the current net worth or paying capacity of the borrower or of the collateral pledged. A "substandard" loan has a well-defined weakness or weaknesses that could jeopardize liquidation of the loan, which exposes the Corporation to loss if the deficiencies are not corrected. When circumstances indicate that collection of the loan is doubtful, the loan is risk rated "nonaccrual," the accrual of interest income is discontinued, and any unpaid interest previously credited to income is reversed. Accordingly, the table below does not include the regulatory classification of "doubtful," nor does it include the regulatory classification of "loss" because the Corporation promptly charges off loan losses. </font></p>
<p><font class="_mt" size="2">The table below presents a summary of loan risk ratings by loan class at December 31, 2012 and 2011. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="38%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Pass</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Special<br />Mention</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Substandard</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Nonaccrual</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">79,101</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,567</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,013</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">255</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">96,936</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">107,415</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,563</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,459</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,277</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">122,714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">62,327</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,361</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">687</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">66,419</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">66,155</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,521</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">983</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,784</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">70,443</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">39,559</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,457</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">121,223</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,156</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">612</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,843</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">124,834</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">561,185</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">20,168</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">18,281</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,846</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">607,480</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,421</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">32</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">53</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,511</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,406</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">112</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,858</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">39,318</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">325</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">351</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">291</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,285</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">128,145</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">442</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">571</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">129,654</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">689,330</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,610</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">18,852</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,342</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">737,134</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">90,429</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,392</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">533</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,160</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">103,514</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102,374</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13,519</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">161</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,079</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">118,133</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,331</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,681</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,564</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">54,193</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,354</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">811</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,970</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,262</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">16,879</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">111,227</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">9,095</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">511,566</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,041</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,708</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,260</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">565,575</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,113</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">170</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,324</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,088</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">79</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,390</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">47,359</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">597</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">48,226</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">126,560</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">683</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">256</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">441</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">127,940</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">638,126</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">40,724</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,964</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,701</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">693,515</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The table below presents a summary of impaired loans at December 31, 2012 and 2011. Generally, impaired loans are loans risk rated substandard and nonaccrual. An allowance is established for those individual loans that are commercial related and only those consumer related loans classified as troubled debt restructurings where the Corporation has doubt as to full recovery of the outstanding principal balance. The recorded investment represents outstanding unpaid principal loan balances adjusted for charge-offs. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="26%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unpaid<br />Principal<br />Balance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Related<br />Allowance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unpaid<br />Principal<br />Balance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Related<br />Allowance</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with no related allowance:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,211</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,211</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,627</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,627</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,736</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,836</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,965</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,065</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">72</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">72</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">463</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">463</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,048</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,323</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,781</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,483</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,611</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,619</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,619</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">85</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">111</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">204</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">314</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">642</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">718</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with no related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">24,316</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,921</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">15,866</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">18,351</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with a related allowance:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">256</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">256</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">264</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">264</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,659</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,659</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">700</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">89</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">89</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other commercial</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">972</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">972</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">215</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">880</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">880</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">120</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with a related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,358</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,358</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,162</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,722</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,722</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">397</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,467</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,467</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,891</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,891</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">147</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,736</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,836</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,965</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,065</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,731</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,731</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">700</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">30</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,048</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,323</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,781</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">699</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">471</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">489</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">100</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,455</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,583</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">215</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">85</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">111</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">204</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">314</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">340</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">642</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">718</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">28,674</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">31,279</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,162</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,588</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,073</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">397</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table><font class="_mt" size="2">
</font>
<p><font class="_mt" size="2">The table below presents a summary of average impaired loans and related interest income that was included in net income for the years ended December 31, 2012 and 2011. The table that immediately follows for the year ended December 31, 2010 is in a more highly summarized form pertaining solely to commercial loans. Generally, impaired loans are loans risk rated substandard and nonaccrual or classified as troubled debt restructurings. An allowance is established for individual commercial related loans where the Corporation has doubt as to full recovery of the outstanding principal balance. Typically, impaired consumer related loans are partially or fully charged-off obviating the need for a specific allowance. The recorded investment represents outstanding unpaid principal loan balances adjusted for charge-offs. </font></p>
<div> </div>
<div>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="33%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="17">
<p align="center"><font class="_mt" size="1"><b>For the years ended</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>December 31, 2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Average<br />Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Cash Basis<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Average<br />Recorded<br />Investment</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Cash Basis<br />Interest<br />Income</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with no related allowance:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8,849</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">570</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">92</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,248</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">424</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">374</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,910</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">281</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">142</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,958</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">73</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">307</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">443</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,711</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">28</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,242</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">79</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">707</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">143</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,020</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">177</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">212</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,067</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">383</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">133</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">262</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">274</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">435</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">22</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">515</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">37</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">20</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with no related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">22,346</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,139</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">472</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">16,030</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,056</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">788</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Impaired loans with a related allowance:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">260</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">796</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">45</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">166</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,483</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">93</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">105</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,905</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">481</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other commercial</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">935</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">777</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans with a related allowance</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,309</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">106</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">5,233</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">43</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">9,109</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">576</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">98</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">424</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">374</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,955</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">281</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">142</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,124</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">73</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,790</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">69</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">536</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,816</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">28</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,147</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">79</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">707</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">143</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">481</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">34</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other commercial</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,955</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">179</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">212</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,844</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">391</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">133</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">262</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">274</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt;"><font class="_mt" size="2">Other consumer</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">435</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">22</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">515</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">37</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">20</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Total impaired loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">25,655</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,245</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">478</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">21,263</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,099</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">788</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table></div>
<div> </div>
<div> </div>The following table presents information regarding impaired commercial related loans as of and for the year ended December 31, 2010.
<p> </p>
<table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="84%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Impaired loans without a related allowance</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14,892</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Impaired loans with a related allowance</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,898</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Allowance for impaired loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,195</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Average recorded investment in impaired loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">26,434</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Total interest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">697</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Cash basis interest income</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">456</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">The performance and credit quality of the loan portfolio is also monitored by using an aging schedule which shows the length of time a payment is past due. The table below presents a summary of past due loans, current loans and nonaccrual loans by loan segment and class at December 31, 2012 and 2011. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="21%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>30-59<br />Days Past<br />Due</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>60-89 Days<br />Past Due</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>90 Days<br />and<br />Greater<br />Past Due</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total Past<br />Due<br />Accruing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Nonaccrual</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Current</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total Loans</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">400</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">400</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">255</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">96,281</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">96,936</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,277</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">119,437</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">122,714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">687</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">63,688</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">66,419</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,067</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,067</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,784</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">67,592</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">70,443</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">456</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">456</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,843</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">122,535</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">124,834</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,967</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,967</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,846</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">595,667</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">607,480</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">474</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">129</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">603</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">53</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">22,855</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,511</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">62</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">62</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,644</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,858</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">842</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">195</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">186</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,223</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">291</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">38,771</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,285</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,378</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">324</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">186</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,888</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">127,270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">129,654</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,345</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">324</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">186</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,855</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,342</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">722,937</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">737,134</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,709</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,709</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,160</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100,645</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">103,514</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,079</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">116,054</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">118,133</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,564</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,970</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">56,833</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">109</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">109</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">120,213</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,343</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,343</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,260</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">551,972</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">565,575</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">320</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">320</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">170</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,834</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,324</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,119</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,390</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">677</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">678</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">47,312</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">48,226</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,233</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,234</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">441</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">126,265</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">127,940</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,576</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,577</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,701</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">678,237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">693,515</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">Loans classified as troubled debt restructurings (TDRs) are designated impaired and arise when the Corporation grants borrowers experiencing financial difficulties concessions that it would not otherwise consider. Concessions granted with respect to these loans involve an extension of the maturity date or a below market interest rate relative to new debt with similar credit risk. Generally, these loans are secured by real estate. If repayment of the loan is determined to be collateral dependent, the loan is evaluated for impairment loss based on the fair value of the collateral. For loans that are not collateral dependent, the present value of expected future cash flows, discounted at the loan's effective interest rate, is used to determine any impairment loss. </font></p>
<p><font class="_mt" size="2">A nonaccrual TDR represents a nonaccrual loan, as previously defined, which includes an economic concession. Nonaccrual TDRs are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive payments after the modification and future principal and interest payments are reasonably assured. In contrast, an accruing TDR represents a loan that, at the time of the modification, has a demonstrated history of payments and with respect to which management believes that future loan payments are reasonably assured under the modified terms. </font></p>
<p><font class="_mt" size="2">The table below shows loans whose terms have been modified under TDRs during the years ended December 31, 2012 and 2011. There was no impairment loss recognized on any of these TDRs, and they are all performing under their modified terms. There were no defaults of restructured loans during the years ended December 31, 2012 and 2011. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="56%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Number<br />of<br />Contracts</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Pre-Modification<br />Outstanding<br />Recorded<br />Investments</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="top" colspan="2" nowrap="nowrap">
<p align="center"><font class="_mt" size="1"><b>Post-Modification<br />Outstanding<br />Recorded<br />Investments</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>Years ended:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Commercial related loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">nonaccrual</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">286</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">286</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Commercial related loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">nonaccrual</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,151</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,151</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">accruing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,097</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,097</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Consumer related loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">accruing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table> </div>6848130006942600007278320007532990000075329900028690003091000466280003093000721700010310000308150003093000721700010310000466280004152900030815000265680000212890005279000323000050000005096000860001269500012940000700000840000907000-9104000-3013000-23100057635000-168500042592000610300038535000-1831000-49676000528000-69987000-8570000-3745600012900091310001281000163210002354000164830001944000620800062080006208000151100067790006779000677900018720006610002735000229000093940009394000939400027790001871000245400052280005228000126600053190005319000162600040002423000210200090100009010000270800018090002391000<div> <div class="MetaData">
<div><font class="_mt" size="2"><b>Recent Accounting Pronouncements </b></font></div>
<div><font class="_mt" size="2">The FASB issued ASU No. 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IFRSs." This Update amends FASB ASC Topic 820, Fair Value Measurements, to bring U.S. GAAP for fair value measurements in line with International Accounting Standards. The Update clarifies existing guidance for items such as: the application of the highest and best use concept to non-financial assets and liabilities; the application of fair value measurement to financial instruments classified in a reporting entity's stockholder's equity; and disclosure requirements regarding quantitative information about unobservable inputs used in the fair value measurements of level 3 assets. The Update also creates an exception to Topic 820 for entities which carry financial instruments within a portfolio or group, under which the entity is now permitted to base the price used for fair valuation upon a price that would be received to sell the net asset position or transfer a net liability position in an orderly transaction. The Update also allows for the application of premiums and discounts in a fair value measurement if the financial instrument is categorized in level 2 or 3 of the fair value hierarchy. Lastly, the ASU contains new disclosure requirements regarding fair </font><font class="_mt" size="2">value amounts categorized as level 3 in the fair value hierarchy such as: disclosure of the valuation process used; effects of and relationships between unobservable inputs; usage of nonfinancial assets for purposes other than their highest and best use when that is the basis of the disclosed fair value; and categorization by level of items disclosed at fair value, but not measured at fair value for financial statement purposes. The Corporation adopted the provisions of ASU No. 2011-04 effective January 1, 2012. The fair value measurement provisions of ASU No. 2011-04 had no impact on the Corporation's consolidated financial statements. See Note 16 to the consolidated financial statements for enhanced disclosures required by ASU No. 2011-04. </font></div>
<p><font class="_mt" size="2">In November 2008, the Securities and Exchange Commission (SEC) released a proposed roadmap regarding the potential use by U.S. issuers of financial statements prepared in accordance with International Financial Reporting Standards (IFRS). IFRS is a comprehensive series of accounting standards published by the International Accounting Standards Board (IASB). On July 13, 2012, the SEC published their final report on IFRS, which included an analysis of the issues related to possible incorporation of IFRS into the U.S. financial reporting regime. The SEC report was designed to inform the SEC commissioners for when they would come to decide whether, and if so, how, IFRS should be applied to the U.S. The next step for the SEC is to develop a recommendation on IFRS, but no timetable has been disclosed for completing this work. The Corporation will continue to monitor the development of the potential implementation of IFRS. </font></p>
<p><font class="_mt" size="2">In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The objective of this ASU is to improve the reporting of reclassifications out of accumulated other comprehensive income. This ASU requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income, by component, on the respective line items in the income statement if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. Reclassifications that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period are required to be cross-referenced to other U.S. GAAP disclosures that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income. The provisions of this ASU are effective for public entities prospectively for reporting periods beginning after December 15, 2012. The update is not expected to have a material impact on the Corporation's results of operations or financial condition. </font></p></div> </div>73760000884760002811600070380002707900069320006317000679200072700002992800069520008194000751200075740001606000735800016190001666000156500015250008190000162500016200001666000601000613000645000760192600013100020040001870001977000133000<div> <div class="MetaData">
<div><font class="_mt" size="2"><b>Off-Balance Sheet Financial Instruments </b></font></div>
<div><font class="_mt" size="2">In the ordinary course of business, the Corporation enters into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. These financial instruments are recorded on the balance sheet when they become a receivable to the Corporation. </font></div><br /></div> </div>11230003960008100081000187000323000550004010004090004230004389800037500030639000465000-2630003786000-191000-263000-26300037860003786000-191000-191000-71000-83000-2820003700042000145000-192000386900091000-9900019930004700073000680009400076060003580006928000110000189700020700023050002530002493000293000158000175000252000<div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="21%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>30-59<br />Days Past<br />Due</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>60-89 Days<br />Past Due</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>90 Days<br />and<br />Greater<br />Past Due</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total Past<br />Due<br />Accruing</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Nonaccrual</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Current</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Total Loans</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">400</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">400</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">255</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">96,281</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">96,936</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,277</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">119,437</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">122,714</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,044</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">687</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">63,688</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">66,419</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,067</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,067</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,784</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">67,592</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">70,443</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">456</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">456</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,843</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">122,535</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">124,834</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,967</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,967</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,846</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">595,667</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">607,480</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">474</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">129</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">603</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">53</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">22,855</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">23,511</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">62</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">62</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">152</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,644</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">65,858</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">842</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">195</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">186</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,223</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">291</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">38,771</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,285</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,378</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">324</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">186</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,888</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">496</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">127,270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">129,654</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,345</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">324</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">186</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,855</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,342</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">722,937</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">737,134</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,709</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,709</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,160</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100,645</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">103,514</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,079</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">116,054</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">118,133</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">552</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,564</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,970</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">56,833</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">109</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">109</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,499</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">120,213</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,343</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,343</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,260</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">551,972</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">565,575</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Residential mortgage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">320</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">320</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">170</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,834</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,324</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,119</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,390</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">677</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">678</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">236</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">47,312</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">48,226</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,233</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,234</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">441</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">126,265</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">127,940</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,576</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,577</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,701</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">678,237</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">693,515</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table> </div>613000059274000446890005266040000600060001022000102200014540001454000169000016900008250008250007740007740006340006340009282900059502000631190001000000780000007000677000237000914000220001402000700002018000231000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 11- Benefit Plans </b></font></p>
<p><font class="_mt" size="2"><b>Defined Contribution Plan</b> <br />PeoplesBank maintains a 401(k) savings and investment plan covering substantially all employees. Under the plan, employees can contribute a percentage of their compensation subject to certain limits based on federal tax law. The Bank makes matching contributions of <font class="_mt">50</font> percent up to the first <font class="_mt">6</font> percent of an employee's compensation contributed to the plan. Employee contributions vest immediately and employer contributions vest <font class="_mt">100</font>% after <font class="_mt">three</font> years of service. The Bank's expense for the 401(k) savings and investment plan was $<font class="_mt">237,000</font> for 2012, $<font class="_mt">207,000</font> for 2011, and $<font class="_mt">220,000</font> for 2010. </font></p>
<p><font class="_mt" size="2"><b>Supplemental Benefit Plans</b> <br />PeoplesBank maintains supplemental retirement plans for selected executives. The expense associated with these plans was approximately $<font class="_mt">296,000</font> for 2012, $<font class="_mt">267,000</font> for 2011, and $<font class="_mt">316,000</font> for 2010. The accrued liability for the supplemental retirement plans was $<font class="_mt">3,475,000</font> at December 31, 2012 and $<font class="_mt">3,179,000</font> at December 31, 2011. Income earned from bank owned life insurance policies was used to finance the cost of supplemental benefit plans, and provide a tax-exempt return to PeoplesBank. </font></p>
<p><font class="_mt" size="2"><b>Director's Post Retirement Split-dollar Life Insurance Benefit</b><br />PeoplesBank recorded net income of $<font class="_mt">1,000</font> in 2012 and net expense of $<font class="_mt">28,000</font> and $<font class="_mt">19,000</font> in 2011 and 2010, respectively, on bank owned life insurance policies with a post retirement split-dollar life insurance benefit. The accrued liability for the post retirement split-dollar benefit was $<font class="_mt">235,000</font> at December 31, 2012 and $<font class="_mt">236,000</font> at December 31, 2011.</font></p> </div>0-1550001550000-4780004780000.090.070.01980000980000245000146000014600002460006570003120001880003840003840007100062000630001000100010002.502.52.510000001000000250002500025000250002500025000000250000002500000023500000440002720002720004770004770006270006270000150000000002500000025000000165070000000206000381530003793700044178000-17030003494000909900048450001571500017440000809400091400010028000524210005000400073403000542000002100004320007720000127000252000488000586000534000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 6-Premises and Equipment </b></font></p>
<p><font class="_mt" size="2">The following table presents a summary of premises and equipment as of December 31, 2012 and 2011. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="58%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Land</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,000</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,001</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Buildings and improvements</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,716</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,458</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Capitalized leased premises</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">672</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">672</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Equipment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">12,940</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">12,695</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">28,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,826</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Less-accumulated depreciation/amortization</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(16,835</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(15,965</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Premises and equipment, net</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,493</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,861</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">PeoplesBank leases certain banking branches under capital and noncancellable operating leases. The terms include various renewal options and provide for rental increases based upon predetermined factors. Total lease expenses under operating leases amounted to $<font class="_mt">423,000</font> in 2012, $<font class="_mt">409,000</font> in 2011, and $<font class="_mt">401,000</font> in 2010. </font></p>
<p><font class="_mt" size="2">At December 31, 2012, future minimum lease payments for these leases and a capital lease are payable as follows: </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="58%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Capital<br />Lease</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Operating<br />Leases</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2013</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">396</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2014</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">102</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">323</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2015</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">187</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">2016</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">81</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">2017</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">81</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Thereafter</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">55</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total future minimum lease payments</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">306</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,123</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Less interest</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(46</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Present value of minimum lease payments</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">260</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>2682600028328000108610003445000114930003516000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Premises and Equipment</b> <br />Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is calculated principally on the straight-line method over the assets' estimated useful lives. Estimated useful lives are seven to forty years for buildings and improvements, three to twenty years for furniture and equipment and three to five years for computer equipment and software. Maintenance and repairs are charged to expense as incurred. The cost of significant improvements to existing assets is capitalized and amortized over the shorter of the asset's useful life or related lease term. When facilities are retired or otherwise disposed of, the depreciated cost is removed from the asset accounts, and any gain or loss is reflected in the statement of income. </font></p></div> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="58%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Land</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,000</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,001</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Buildings and improvements</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,716</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12,458</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Capitalized leased premises</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">672</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">672</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Equipment</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">12,940</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">12,695</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">28,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,826</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Less-accumulated depreciation/amortization</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(16,835</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(15,965</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Premises and equipment, net</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,493</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,861</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div>2990000675000493500055000035600001500002500001750000250000650000600000-2990000-100000-597000-11000-209000-612000-2261000-712000-348000-282000-3800020000-28000-40000-381000-4935000-9000-1573000-4900071000-3271000-4768000-116000-455000-88000-1680004000-199000175000288000-1750000-18000382000-91000-572000-91000-504000677000-812000-364000-338000-86000-110000-705000-434000<div> <p><font class="_mt" size="2"><b>Note 18-Quarterly Results of Operations (Unaudited) </b></font></p>
<p><font class="_mt" size="2">A summary of the quarterly results of operations for the years ended December 31, 2012 and 2011 is shown below. </font></p>
<div class="MetaData">
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="32%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom" rowspan="3">
<p><font class="_mt" size="1"><i>(dollars in thousands,<br />except per share data)</i></font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>Quarter</b></font></p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>Quarter</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fourth</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Third</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Second</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>First</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fourth</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Third</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Second</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>First</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Interest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,819</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,608</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,692</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,393</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,503</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,738</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,263</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,907</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Interest expense</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,519</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,677</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,640</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,691</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,958</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,131</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,127</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,143</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Net interest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,300</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,931</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,052</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,702</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,545</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,607</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,136</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,764</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Provision for loan losses</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">600</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">650</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">250</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">250</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">150</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,560</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">550</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">675</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Noninterest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,666</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,620</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,625</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,565</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,666</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,619</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,606</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Gain on sales of loans held for sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">494</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">293</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">281</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">259</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">355</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">126</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">120</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">176</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Noninterest expense</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,512</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,194</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,952</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,270</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,792</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,317</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,932</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,038</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Income before taxes and securities gain (loss)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,348</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,756</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,966</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,523</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">522</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,393</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,833</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Gain (loss) on sales of securities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(4</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">382</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">49</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">150</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Income before income taxes</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,344</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,382</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,756</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,015</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,673</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">522</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,393</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,808</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Provision (benefit) for income taxes</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">890</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">511</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">977</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">725</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">938</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(139</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">521</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">297</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Net income</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,454</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,871</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,290</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,735</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">661</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,872</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,511</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Preferred stock dividends and discount accretion</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">63</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">71</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">312</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">657</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">246</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">245</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Net income available to common shareholders</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,391</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,809</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,708</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,102</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,423</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,626</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,266</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Net income per common share, basic (1)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.53</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.41</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.61</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.48</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.55</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.37</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.29</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Net income per common share, diluted (1)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.53</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.40</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.60</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.47</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.55</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.37</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.29</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">(1) <font class="_mt">adjusted for the 5% common stock dividend distributed on December 11, 2012</font></font></p></div>
<p> </p> </div>3652000365200035790003579000035790000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 9-Regulatory Matters </b></font></p>
<p><font class="_mt" size="2">The Corporation is subject to restrictions on the payment of dividends to its shareholders pursuant to the Pennsylvania Business Corporation Law of 1988, as amended (BCL). The BCL prohibits dividend payments if such payment would render the Corporation insolvent or result in negative net worth. Federal and state banking regulations place certain restrictions on dividends paid and loans or advances made by PeoplesBank to the Corporation. The amount of total dividends, which may be paid at any date, is generally limited to the retained earnings of PeoplesBank. Furthermore, dividend payments would be prohibited if the effect thereof would cause PeoplesBank's capital to be reduced below applicable minimum capital requirements as discussed below. Loans and advances by PeoplesBank to affiliates, including the Corporation, are limited to <font class="_mt">10</font> percent of PeoplesBank's capital stock and contributed capital on a secured basis. </font></p>
<p><font class="_mt" size="2">The Corporation and PeoplesBank are subject to various regulatory capital requirements. Failure to meet minimum capital requirements can result in certain mandatory and possible additional discretionary actions by regulators that, if imposed, could have a material effect on the Corporation's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and PeoplesBank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators. </font></p>
<p><font class="_mt" size="2">Quantitative measures established by regulators to ensure capital adequacy require the Corporation and PeoplesBank to maintain minimum ratios, as set forth below, to total and Tier 1 capital as a percentage of risk-weighted assets, and of tier 1 capital to quarter-to-date average assets (leverage ratio). In December 2012, PeoplesBank received the most recent notification from the Federal Deposit Insurance Corporation, which categorized PeoplesBank as "well capitalized", as of September 30, 2012, under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes would change PeoplesBank's well capitalized category. As of December 31, 2011, PeoplesBank was also categorized as "well capitalized". </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="39%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Actual</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Minimum for<br />Capital Adequacy</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Well Capitalized<br />Minimum*</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Ratio</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Ratio</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Ratio</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Codorus Valley Bancorp, Inc. <i>(consolidated)</i></b> </font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,597</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13.59</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">31,074</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">114,899</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14.79</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,597</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10.02</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">42,143</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">97,128</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">13.35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">29,097</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,830</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14.55</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">58,194</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">97,128</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9.62</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,379</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>PeoplesBank, A Codorus Valley Company</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102,120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">13.20</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30,951</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">46,427</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">111,422</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14.40</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">61,902</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">77,378</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10.00</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102,120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9.72</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42,020</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">52,526</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">94,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12.98</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">28,975</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">43,463</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6.00</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102,758</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14.19</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">57,950</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">72,438</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">94,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">9.35</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">40,239</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">50,299</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5.00</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table> </div><div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Income Taxes</b> <br />Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted through the provision for income taxes for the effects of changes in tax laws and rates on the effective date. </font></p>
<p><font class="_mt" size="2">The Corporation accounts for uncertain tax positions as required by FASB ASC Topic 740. FASB ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. Specifically, the accounting standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return as well as guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. No significant income tax uncertainties have been identified by the Corporation; therefore, the Corporation recognized no adjustment for unrecognized income tax benefits for the years ended December 31, 2012 or 2011. The Corporation's policy is to recognize interest and penalties on unrecognized tax benefits in income taxes expense in the Consolidated Statement of Income. The Company did not recognize any interest and penalties for the years ended December 31, 2012, 2011 and 2010. The tax years subject to examination by the taxing authorities are the years ended December 31, 2011, 2010, and 2009. </font></p></div> </div>2224000011000030414000119000158130001280003635000286300036350003635000286300028630000286300001455800018868000140400025200002029000<div> <table border="0" cellspacing="0" cellpadding="0" width="80%">
<tr style="font-size: 1px;"><td valign="bottom" width="70%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Builder & developer</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">96,936</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">103,514 </font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Commercial real estate investor</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">122,714</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">118,133</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Residential real estate investor</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">66,419</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,564</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Hotel/Motel</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">64,948</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">52,871</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Wholesale & retail</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">70,443</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60,328</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Manufacturing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">40,258</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,976</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Agriculture</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,928</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">17,368</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,834</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">124,821</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total commercial related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">607,480</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">565,575</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Residential mortgages</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">23,511</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">21,324</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Home equity</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">65,858</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">58,390</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">40,285</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">48,226</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total consumer related loans</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">129,654</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">127,940</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total loans</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">737,134</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">693,515 </font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="46%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amortized</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Gross Unrealized</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Estimated<br />Fair</b></font></p></td>
<td valign="bottom">
<p> </p>
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Cost</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Gains</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Losses</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,001</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">31</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,032</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">37,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,083</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">38,058</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-backed, residential</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">84,630</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,603</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">88,233</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p>
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">98,744</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,053</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(58</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">102,739</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total debt securities</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">225,375</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,770</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(83</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">234,062</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. Treasury notes</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10,003</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">131</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10,134</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">29,593</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,080</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30,673</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-backed, residential</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">103,017</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,456</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(29</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">106,444</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p>
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">82,272</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,340</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">86,610</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total debt securities</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">224,885</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">9,007</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">233,861</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="62%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Cash paid during the period for:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Income taxes</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,825</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,960</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,719</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,578</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">12,525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">13,219</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Noncash investing and financing activities:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Transfer of loans to foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">231</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,013</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,104</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Transfer of loans held for sale to the held-to-maturity portfolio</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">160</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for investment in foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">116</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">65</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for purchase of securities settling after year end</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,063</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for preferred stock dividends declared</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">63</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">313</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td></tr></table> </div><div> <table cellspacing="0" cellpadding="0" width="75%" align="center" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="62%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Total intrinsic value of options exercised</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">140</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Cash received from options exercised</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">252</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">127</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Tax deduction realized from options exercised</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">48</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="39%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Actual</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Minimum for<br />Capital Adequacy</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Well Capitalized<br />Minimum*</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Ratio</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Ratio</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Amount</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Ratio</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Codorus Valley Bancorp, Inc. <i>(consolidated)</i></b> </font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,597</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13.59</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">31,074</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">114,899</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14.79</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62,147</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,597</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10.02</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">42,143</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">97,128</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">13.35</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">29,097</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">105,830</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14.55</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">58,194</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">97,128</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9.62</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">40,379</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">n/a</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>PeoplesBank, A Codorus Valley Company</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102,120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">13.20</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30,951</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">46,427</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">111,422</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14.40</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">61,902</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">77,378</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">10.00</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102,120</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9.72</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">42,020</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">52,526</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Capital ratios:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Tier 1 risk-based</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">94,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">12.98</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">28,975</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">43,463</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6.00</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total risk-based</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">102,758</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14.19</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">57,950</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">72,438</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Leverage</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">94,056</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">9.35</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">40,239</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">50,299</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5.00</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="90%">
<tr style="font-size: 1px;"><td valign="bottom" width="53%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Current tax provision</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Federal</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,486</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,440</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,099</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">State</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">232</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">234</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">178</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total current tax provision</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,718</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,674</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,277</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Deferred tax expense (benefit)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Federal</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">419</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(979</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(956</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">State</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(34</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(78</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(188</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total deferred tax expense (benefit)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">385</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,057</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,144</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total tax provision</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,103</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,617</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,133</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="89%">
<tr style="font-size: 1px;"><td valign="bottom" width="73%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>December 31,</b></font></p></td>
<td valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Assets</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Cash and due from banks</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">312</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">70</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Investment in bank subsidiary</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">107,853</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">100,170</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Investment in other subsidiaries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">794</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,167</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Premises and equipment, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,516</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,445</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other assets</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">465</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">375</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total assets</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">112,940</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">105,227</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Liabilities</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Long-term debt</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,310</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,310</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Long-term debt with bank subsidiary</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,189</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,317</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other liabilities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">110</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">358</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total liabilities</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,609</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,985</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Shareholders' equity</b></font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">101,331</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">93,242</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total liabilities and shareholders' equity</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">112,940</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">105,227</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="59%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Cash flows from operating activities</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net income</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">9,394</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,779</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6,208</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Adjustments to reconcile net income to net cash provided by operations:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Depreciation</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">160</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">159</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">159</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Equity in undistributed earnings of subsidiaries, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(7,862</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(4,759</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(5,244</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Other, net</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">252</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">175</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">158</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Net cash provided by operating activities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,944</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,354</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,281</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Cash flows from investing activities</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Additional investment in bank subsidiary</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(7,800</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,000</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Return of (additional) investment in other subsidiary</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">360</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(700</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,550</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Purchases of premises and equipment</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(231</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(70</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(22</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Net cash provided by (used in) investing activities</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">129</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(8,570</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">528</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Cash flows from financing activities</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Repayments of long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(128</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(119</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(110</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash dividends paid to preferred shareholders</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(634</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(774</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(825</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash dividends paid to common shareholders</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(1,690</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(1,454</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(1,022</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Redemption of preferred stock and common stock warrant</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(17,027</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Issuance of preferred stock</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">25,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Issuance of common stock</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">627</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">477</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">272</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Cash paid in lieu of fractional shares</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(6</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Net cash (used in) provided by financing activities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,831</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,103</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1,685</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Net increase (decrease) in cash and cash equivalents</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">242</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(113</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">124</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents at beginning of year</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">70</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">183</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">59</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Cash and cash equivalents at end of year</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">312</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">70</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">183</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="63%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Income</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Interest from investment securities</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Dividends from bank subsidiary</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,022</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,514</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,398</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total income</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,029</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,520</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,404</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Expense</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Interest expense on long-term debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">320</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">313</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">325</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Occupancy of premises, net</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">133</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">187</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">131</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">293</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">253</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">207</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Total expense</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">746</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">753</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">663</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Income before applicable income tax benefit and<br />undistributed earnings (losses) of subsidiaries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,283</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,767</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">741</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2"><b>Applicable income tax benefit</b></font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">249</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">253</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">223</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Income before undistributed earnings (losses) of subsidiaries</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,532</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,020</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">964</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Equity in undistributed earnings of bank subsidiary</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,874</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">4,869</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,308</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Equity in undistributed losses of other subsidiaries</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(12</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(110</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(64</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,394</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,779</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,208</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Preferred stock dividends and discount accretion</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">384</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,460</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">980</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net income available to common shareholders</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,010</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,319</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,228</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table cellspacing="0" cellpadding="0" width="80%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="72%">
<p> </p></td>
<td valign="bottom" width="3%">
<p align="center"> </p></td>
<td valign="bottom" width="1%">
<p align="center"> </p></td>
<td valign="bottom" width="9%">
<p align="center"> </p></td>
<td valign="bottom" width="3%">
<p align="center"> </p></td>
<td valign="bottom" width="1%">
<p align="center"> </p></td>
<td valign="bottom" width="9%">
<p align="center"> </p></td>
<td valign="bottom" width="1%">
<p align="center"> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="center"> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="2">PeoplesBank obligations:</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">FHLBP</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due January 2012, <font class="_mt">2.34</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due June 2012, <font class="_mt">4.25</font>% amortizing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">170 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due December 2012, <font class="_mt">1.91</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due May 2013, <font class="_mt">3.46</font>% amortizing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">245</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">818 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due December 2013, <font class="_mt">2.39</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due July 2014, <font class="_mt">1.38</font>%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due July 2015, <font class="_mt">1.90</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due July 2016, <font class="_mt">2.35</font>%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5,000 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due June 2018, <font class="_mt">1.87</font>%</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0 </font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due June 2019, <font class="_mt">2.10</font>%</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">5,000</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">0 </font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Total FHLBP</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">20,245</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">35,988 </font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: medium none; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Capital lease obligation</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">260</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">330 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="2">Codorus Valley Bancorp, Inc. obligations:</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Junior subordinated debt</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due 2034, <font class="_mt">2.33</font>%, floating rate based on 3 month</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">LIBOR plus <font class="_mt">2.02</font>%, callable quarterly</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,093</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,093 </font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Due 2036, <font class="_mt">1.88</font>%, floating rate based on 3 month</font></p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="background: #d6f3e8;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p style="margin-left: 25.9pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">LIBOR plus <font class="_mt">1.54</font>%, callable quarterly</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,217</font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,217 </font></p></td>
<td style="border-top: medium none; border-right: medium none; border-bottom: black 1px solid; border-left: medium none;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 34.55pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Total long-term debt</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">30,815</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">46,628 </font></p></td>
<td style="border-top: medium none; border-right: medium none; background: #d6f3e8; border-bottom: black 3px double; border-left: medium none;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="80%">
<tr style="font-size: 1px;"><td valign="bottom" width="75%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Deferred tax assets</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Allowance for loan losses</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,327</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,099</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deferred compensation</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,364</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,227</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Low-income housing partnerships</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">580</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">601</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Tax credit carryforward</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">75</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">545</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Foreclosed real estate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,327</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,738</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">72</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">60</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total deferred tax assets</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">6,745</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">7,270</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Deferred tax liabilities</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Deferred loan fees</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">436</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">514</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Depreciation</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">221</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">254</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Net unrealized gains on available-for-sale securities</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,953</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,051</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">325</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">354</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Total deferred tax liabilities</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,935</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,173</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Net deferred tax assets</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,810</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,097</font></p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="90%">
<tr style="font-size: 1px;"><td valign="bottom" width="53%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Statutory tax rate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">34.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Increase (decrease) resulting from:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Low-income housing credits</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1.8</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3.6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Tax-exempt interest income</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(7.5</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(11.2</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(12.9</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Bank owned life insurance income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(1.7</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2.6</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3.0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">State income taxes, net of federal tax benefit</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.2</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(0.1</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Other, net</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.7</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.9</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Effective income tax rate</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">24.8</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">19.3</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">15.4</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr></table> </div><div> <table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="62%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">ESPP shares purchased</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,784</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14,363</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Average purchase price per share (85% of market value)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8.969</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.467</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">5.242</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Compensation expense recognized (in thousands)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">24</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">25</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="43%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="12%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Stock Options</b></font></p></td>
<td valign="bottom">
<p> </p>
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Restricted Stock</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Options</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Exercise Price<br />Per Share</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Shares</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Grant Date<br />Fair Value</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Non-vested at January 1, 2012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">55,137</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.99</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">44,575</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.90</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Vested</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(51,199</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.99</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(16,261</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.54</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Cancelled</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(3,938</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.86</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 1px;" valign="bottom">
<p><font class="_mt" size="2">Granted</font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">27,749</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom"> </td>
<td style="padding-bottom: 1px;" valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,290</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td style="padding-bottom: 1px;" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Non-vested at December 31, 2012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">27,749</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">39,604</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10.00</font></p></td>
<td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <div class="MetaData">
<table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="32%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="4%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="5%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom" rowspan="3">
<p><font class="_mt" size="1"><i>(dollars in thousands,<br />except per share data)</i></font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>Quarter</b></font></p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="11">
<p align="center"><font class="_mt" size="1"><b>Quarter</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fourth</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Third</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Second</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>First</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fourth</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Third</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Second</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>First</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Interest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,819</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,608</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,692</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,393</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,503</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,738</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">11,263</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,907</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Interest expense</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,519</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,677</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,640</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,691</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,958</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,131</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,127</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3,143</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Net interest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,300</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,931</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,052</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,702</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,545</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,607</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,136</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,764</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Provision for loan losses</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">600</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">650</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">250</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">250</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">150</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,560</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">550</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">675</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Noninterest income</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,666</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,620</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,625</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,565</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,666</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,619</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,606</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Gain on sales of loans held for sale</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">494</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">293</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">281</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">259</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">355</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">126</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">120</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">176</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Noninterest expense</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,512</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,194</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,952</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,270</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,792</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,317</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,932</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7,038</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Income before taxes and securities gain (loss)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,348</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,000</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,756</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,966</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,523</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">522</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,393</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,833</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Gain (loss) on sales of securities</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(4</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">382</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">49</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">150</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Income before income taxes</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,344</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,382</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,756</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,015</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,673</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">522</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,393</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,808</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Provision (benefit) for income taxes</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">890</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">511</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">977</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">725</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">938</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(139</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">521</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">297</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Net income</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,454</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,871</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,779</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,290</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,735</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">661</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,872</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,511</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Preferred stock dividends and discount accretion</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">63</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">62</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">71</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">312</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">657</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">246</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">245</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="margin-left: 17.3pt; margin-right: 0in; text-indent: -8.65pt;"><font class="_mt" size="2">Net income available to common shareholders</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,391</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,809</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,708</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,102</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">2,423</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,626</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,266</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Net income per common share, basic (1)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.53</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.41</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.61</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.48</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.55</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.37</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.29</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Net income per common share, diluted (1)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.53</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.40</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.60</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.47</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.55</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.37</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.29</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table>
<p><font class="_mt" size="2">(1) <font class="_mt">adjusted for the 5% common stock dividend distributed on December 11, 2012</font></font></p></div> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="81%" align="center">
<tr style="font-size: 1px;"><td valign="bottom" width="50%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Realized gains</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">428</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">229</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Realized losses</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(1</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(104</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Net gains</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">427</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">125</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">108</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="39%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="14%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="14%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="11%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Options</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Exercise Price<br />Per Share</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Weighted Average<br />Remaining<br />Contractual Term</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Aggregate<br />Intrinsic Value<br />($000)</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Outstanding at January 1, 2012</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">259,469</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9.99</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6.6 years</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">65</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Granted</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">27,749</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">14.75</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Exercised</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(29,096</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8.66</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Cancelled</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(3,938</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">7.86</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Expired</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.00</font></p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="padding-bottom: 3px;" valign="bottom">
<p><font class="_mt" size="2">Outstanding at December 31, 2012</font></p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">254,184</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p align="right"><font class="_mt" size="2">10.70</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p align="right"><font class="_mt" size="2">5.8 years</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p align="right"><font class="_mt" size="2">1,107</font></p></td>
<td style="padding-bottom: 3px;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Exerciseable at December 31, 2012</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">226,435</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10.20</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5.3 years</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1,098</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr></table> </div><div> <table cellspacing="0" cellpadding="0" width="75%" align="center" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="61%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Expected life (in years)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.43</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5.63</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">7.09</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Risk-free interest rate</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.10</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.97</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.72</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Expected volatility</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">43.84</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">48.60</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">44.20</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">Expected dividend yield</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3.19</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3.50</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">3.50</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr></table> </div><div> <table cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="font-size: 1px;"><td valign="bottom" width="38%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="7%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="6%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p align="center"> </p></td>
<td valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i> </font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Repurchase<br />agreements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Short-term<br />borrowings</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Repurchase<br />agreements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Short-term<br />borrowings</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Repurchase<br />agreements</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Short-term<br />borrowings</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Amount outstanding at end of year</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,356</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,257</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6,763</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Weighted average interest rate at end of year</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.56</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.79</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0.99</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">Maximum amount outstanding at any month-end</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">26,166</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">12,647</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,623</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2">Daily average amount outstanding</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">20,843</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">11,546</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">8,803</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="margin-left: 8.65pt; text-indent: -8.65pt;"><font class="_mt" size="2">Approximate weighted average interest rate for the year</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.58</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0.99</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.00</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">%</font></p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="59%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(in thousands, except per share data)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Net income available to common shareholders</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,010</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,319</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,228</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Weighted average shares outstanding (basic)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,441</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,366</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,298</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Effect of dilutive stock options</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">61</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">28</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Weighted average shares outstanding (diluted)</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,502</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,394</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,304</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Basic earnings per common share</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2.03</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.22</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.22</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Diluted earnings per common share</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.21</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.21</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Anti-dilutive stock options and common stock warrants</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">excluded from the computation of earnings per share</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">106</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">486</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table> </div><div> <div class="MetaData">
<div><font class="_mt" size="2"><b>Segment Reporting </b></font></div>
<div><font class="_mt" size="2">Management has determined that it operates in only one segment, community banking. The Corporation's non-banking activities are insignificant to the consolidated financial statements. </font></div><br /></div> </div>157000229000295000P6MP3YP2Y0.03500.03500.0319P7Y1M2DP5Y7M17DP7Y5M5D0.44200.48600.43840.01720.00970.0110183061811511290150071726682294940109800022643510.20P5Y3M18D04200014000003938261482172627925235572774915850118992.892.624.7465000110700025946925418400154613995719.9910.70P6Y7M6DP5Y9M18D0.85818.660.007.8614.75<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Stock-Based Compensation <br /></b>The Corporation accounts for its stock-based compensation awards in accordance with FASB ASC Topic 718, which requires public companies to recognize compensation expense, related to stock-based compensation awards in their statements of operations. Compensation expense is equal to the fair value of the stock-based compensation awards on the grant date and is recognized over the vesting period of such awards. More information is provided in Note 12. </font></p></div> </div>676300001025700010257000019356000193560000880300001154600002084300001025700010257000193560001935600001935600001062300001264700002616600000.00990.00000.00790.00000.00560.0000<div> <p><font class="_mt" size="2"><b>NOTE 1-Summary of Significant Accounting Policies</b> </font></p>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Nature of Operations and Basis of Presentation <br /></b>Codorus Valley Bancorp, Inc. (Corporation or Codorus Valley) is a one-bank holding company headquartered in York, Pennsylvania that provides a full range of banking services through its subsidiary, PeoplesBank, A Codorus Valley Company (PeoplesBank or Bank). PeoplesBank operates two wholly-owned subsidiaries, Codorus Valley Financial Advisors, Inc. (formerly SYC Insurance Services, Inc.) which sells nondeposit investment products, and SYC Settlement Services, Inc., which provides real estate settlement services. In addition, PeoplesBank may periodically create nonbank subsidiaries for the purpose of temporarily holding foreclosed properties pending the liquidation of these properties. PeoplesBank operates under a state charter and is subject to regulation by the Pennsylvania Department of Banking and the Federal Deposit Insurance Corporation. The Corporation is subject to regulation by the Federal Reserve Board and the state of Pennsylvania. </font></p>
<p><font class="_mt" size="2">The consolidated financial statements include the accounts of Codorus Valley and its wholly-owned bank subsidiary, PeoplesBank, and its wholly-owned nonbank subsidiary, SYC Realty Company, Inc. SYC Realty is primarily used to hold foreclosed properties obtained by PeoplesBank pending the liquidation of these properties. The accounts of CVB Statutory Trust No. 1 and No. 2 are not included in the consolidated financial statements as discussed in Note 8 –Short-term Borrowings and Long-term Debt. All significant intercompany account balances and transactions have been eliminated in consolidation. The accounting and reporting policies of Codorus Valley and subsidiaries conform to accounting principles generally accepted in the United States of America and have been followed on a consistent basis. </font></p>
<p><font class="_mt" size="2">In accordance with FASB ASC Topic 855, the Corporation evaluated the events and transactions that occurred after the balance sheet date of December 31, 2012 through the date these consolidated financial statements were issued. </font></p></div>
<div>
<p><font class="_mt" size="2"><b>Investment Securities <br /></b>The classification of securities is determined at the time of acquisition and is reevaluated at each reporting date. Securities classified as available-for-sale are debt securities that the Corporation intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in maturity mix of assets and liabilities, income or liquidity needs, regulatory considerations and other factors. Debt securities available-for-sale are carried at fair value, with unrealized gains and losses, net of taxes, reported as a component of accumulated other comprehensive income in shareholders' equity. Premiums and discounts are recognized in interest income using the interest method over the estimated life of the security. Realized gains and losses from the sale of available-for-sale securities are computed on the basis of specific identification of the adjusted cost of each security and are shown net as a separate line item in the statement of income. </font></p>
<p><font class="_mt" size="2">Declines in the fair value of available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management must first assess whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps are done before assessing whether the cost basis of the investment will be recovered. The assessment of the probability of recovery would consider, among other things, the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer. More information about investment securities is provided in Note 3 – Securities.</font></p></div>
<p><font class="_mt" size="2"> </font> </p>
<div>
<p><font class="_mt" size="2"><b>Restricted Stock <br /></b>Restricted stock, which represents required investments in the common stock of correspondent banks, is carried at cost and, as of December 31, 2012 and 2011, consisted primarily of the common stock of the Federal Home Loan Bank of Pittsburgh (FHLBP) and, to a lesser degree, Atlantic Central Bankers Bank (ACBB). Under the FHLBP's Capital Plan, PeoplesBank is required to maintain a minimum member stock investment, both as a condition of becoming and remaining a member and as a condition of obtaining borrowings from the FHLBP. The FHLBP uses a formula to determine the minimum stock investment, which is based on the volume of loans outstanding, unused borrowing capacity and other factors. </font></p>
<p><font class="_mt" size="2">For the fourth quarter of 2011, the FHLBP began paying a quarterly cash dividend on its common stock after a period of suspension since December 2008. The FHLBP reported that it will continue to monitor the condition of its private-label residential mortgage-back securities portfolio, its overall financial performance and retained earnings, developments in the mortgage and credit markets, and other relevant information as the basis for determining the status of dividends and excess capital stock repurchases in future quarters. </font></p>
<p><font class="_mt" size="2">Management evaluates the restricted stock for impairment in accordance with FASB ASC Topic 942. Management's determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. Using the FHLBP as an example, the determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as: (1) the significance of the decline in net assets of the FHLBP as compared to the capital stock amount for the FHLBP and the length of time this situation has persisted; (2) commitments by the FHLBP to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLBP; and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLBP. Management believes no impairment charge was necessary related to the restricted stock during the periods ended December 31, 2012 and 2011.</font></p></div>
<p><font class="_mt" size="2"> </font> </p>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Loans Held for Sale</b> <br />Loans held for sale are comprised of residential mortgage loans originated by the Bank and servicing of the loan is not retained after sale. Loans held for sale are reported at the lower of cost or fair value, as determined by the aggregate commitments from investors or current investor yield requirements. The amount, by which cost exceeds fair value, if any, is accounted for as a valuation allowance and is charged to expense in the period of the change. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loan and is recorded in noninterest income. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Loans <br /></b>Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at their outstanding unpaid principal balances less amounts charged off, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Generally, loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) over the contractual life of the loan. The loans receivable portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following industry classes: builder & developer, commercial real estate investor, residential real estate investor, hotel/motel, wholesale & retail, agriculture, manufacturing and all other. Consumer loans consist of the following classes: residential mortgage, home equity and all other. </font></p>
<p><font class="_mt" size="2">For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan </font></p>
<p><font class="_mt" size="2">is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to the Corporation's judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Allowance for Loan Losses</b> <br />The allowance for loan losses represents the Corporation's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. While the Corporation attributes a portion of the allowance to individual loans and groups of loans that it evaluates and determines to be impaired, the allowance is available to cover all charge-offs that arise from the loan portfolio. </font></p>
<p><font class="_mt" size="2">The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. The Corporation performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Corporation's past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. </font></p>
<p><font class="_mt" size="2">The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired, generally substandard and nonaccrual loans. For loans that are classified as impaired, an allowance is established when the collateral value (or discounted cash flows or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these classes of loans, adjusted for qualitative (environmental) risk factors. Historical loss rates are based on a two year rolling average of net charge-offs. Qualitative risk factors that supplement historical losses in the evaluation of loan pools include: </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="top" width="5%">
<p> </p></td>
<td valign="top" width="5%">
<p> </p></td>
<td valign="bottom" width="90%">
<p> </p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in national and local economies and business conditions </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the value of collateral for collateral dependent loans </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the level of concentrations of credit </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the volume and severity of classified and past due loans </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the nature and volume of the portfolio </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in collection, charge-off, and recovery procedures </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in underwriting standards and loan terms </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the quality of the loan review system </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Changes in the experience/ability of lending management and key lending staff </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Regulatory and legal regulations that could affect the level of credit losses </font></p></td></tr>
<tr><td valign="top">
<p> </p></td>
<td valign="top">
<p><font class="_mt" size="2">•</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">Other pertinent environmental factors </font></p></td></tr></table>
<p><font class="_mt" size="2">Each factor is assigned a value to reflect improving, stable or declining conditions based on the Corporation's best judgment using relevant information available at the time of the evaluation. An </font></p>
<p><font class="_mt" size="2">unallocated component is maintained to cover uncertainties that could affect the Corporation's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the loan portfolio. </font></p>
<p><font class="_mt" size="2">As disclosed in Note 4-Loans, the Corporation engages in commercial and consumer lending. Loans are made within the Corporation's primary market area and surrounding areas, and include the purchase of whole loan or participation interests in loans from other financial institutions. Commercial related loans, which pose the greatest risk of loss to the Corporation, whether originated or purchased, are generally secured by real estate. Within the broad commercial loan segment, the builder & developer and commercial real estate investor loan classes generally present a higher level of risk than other commercial loan classifications. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties, unstable real estate prices and the dependency upon successful construction and sale or operation of the real estate project. Within the consumer loan segment, junior (i.e., second) liens present a slightly higher risk to the Corporation because economic and housing market conditions can adversely affect the underlying value of the collateral and the ability of some borrowers to service their debt. </font></p>
<p><font class="_mt" size="2">A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The Corporation determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Loans that are deemed impaired are evaluated for impairment loss based on the net realizable value of the collateral, as applicable. Loans that are not collateral dependent will rely on the present value of expected future cash flows discounted at the loan's effective interest rate to determine impairment loss. Large groups of smaller balance homogeneous loans such as residential mortgage loans, home equity loans and other consumer loans are collectively evaluated for impairment, unless they are considered to be a troubled debt restructuring. </font></p>
<p><font class="_mt" size="2">An allowance for loan losses is established for an impaired commercial loan if its carrying value exceeds its estimated fair value. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals of the underlying collateral. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the most recent appraisal and the condition of the property. Appraisals are generally discounted to provide for selling costs and other factors to determine an estimate of the net realizable value of the property. For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower's financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. In instances when specific consumer related loans become impaired, they may be partially or fully charged off, which obviates the need for a specific allowance. </font></p>
<p><font class="_mt" size="2">Loans whose terms are modified are classified as troubled debt restructurings if the Corporation grants borrowers experiencing financial difficulties concessions that it would not otherwise consider. </font></p>
<p><font class="_mt" size="2">Concessions granted under a troubled debt restructuring may involve an interest rate that is below the market rate given the associated credit risk of the loan or an extension of a loan's stated maturity date. Loans classified as troubled debt restructurings are designated as impaired. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for a reasonable period of time, generally six consecutive months after modification and future payments are reasonably assured. </font></p>
<p><font class="_mt" size="2">Federal regulatory agencies, as an integral part of their examination process, periodically review the Corporation's allowance for loan losses and may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to the Corporation. Based on a comprehensive analysis of the loan portfolio, the Corporation believes that the level of the allowance for loan losses at December 31, 2012 is adequate. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Transfers of Financial Assets <br /></b>Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Premises and Equipment</b> <br />Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is calculated principally on the straight-line method over the assets' estimated useful lives. Estimated useful lives are seven to forty years for buildings and improvements, three to twenty years for furniture and equipment and three to five years for computer equipment and software. Maintenance and repairs are charged to expense as incurred. The cost of significant improvements to existing assets is capitalized and amortized over the shorter of the asset's useful life or related lease term. When facilities are retired or otherwise disposed of, the depreciated cost is removed from the asset accounts, and any gain or loss is reflected in the statement of income. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Foreclosed Real Estate</b> <br />Foreclosed real estate, included in other assets, is comprised of property acquired through a foreclosure proceeding or property that is acquired through in substance foreclosure. Foreclosed real estate is initially recorded at fair value minus estimated costs to sell at the date of foreclosure, establishing a new cost basis. Any difference between the carrying value and the new cost basis is charged against the allowance for loan losses. Appraisals are generally used to determine fair value. After foreclosure, management reviews valuations at least quarterly and adjusts the asset to the lower of cost or fair value minus estimated costs to sell through a valuation allowance. Costs related to the improvement of foreclosed real estate are generally capitalized until the real estate reaches a saleable condition. Revenue and expense from operations and changes in the valuation allowance are included in noninterest expense. When a foreclosed real estate asset is ultimately sold, any gain or loss on the sale is included in the income statement as a component of noninterest expense. At December 31, 2012, foreclosed real estate, net of allowance was $<font class="_mt">3,633,000</font>, compared to $<font class="_mt">16,243,000</font> for December 31, 2011. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Investments in Real Estate Partnerships <br /></b>In March 2003, PeoplesBank acquired a <font class="_mt">73.47</font> percent limited partner interest in a real estate joint venture known as Village Court, which was formed to develop, construct, own and operate a <font class="_mt">60</font>-unit affordable housing complex located in Dover Township, York County, Pennsylvania. Construction of the housing complex was completed in the fourth quarter of 2004 and the complex was fully leased by December 31, 2004. The investment balance included in other assets was $<font class="_mt">533,000</font> at December 31, </font><font class="_mt" size="2">2012, compared to $<font class="_mt">846,000</font> at December 31, 2011. Additionally, PeoplesBank is a <font class="_mt">99.99</font> percent limited partner in a real estate joint venture known as SMB Properties that rehabilitated and now operates <font class="_mt">seven</font> buildings in the City of York, Pennsylvania as part of a revitalization initiative. The buildings provide low-income housing to qualified families and, to a lesser degree, space for commercial purposes. The investment balance included in other assets has been fully amortized as of December 31, 2012, compared to $<font class="_mt">22,000</font> at December 31, 2011. </font></p>
<p><font class="_mt" size="2">Investment and related tax credits are accounted for under the effective yield method of accounting under which tax credits are recognized as they are allocated, and the cost of the investment is amortized to provide a constant yield over the period that tax credits are allocated, generally ten years. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Bank Owned Life Insurance</b> <br />PeoplesBank invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by PeoplesBank on a select group of employees and directors. PeoplesBank is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies and is included in other assets in the amount of $<font class="_mt">15,467,000</font> at December 31, 2012, compared to $<font class="_mt">14,814,000</font> at December 31, 2011. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Trust and Investment Services Assets <br /></b>Assets held by PeoplesBank in a fiduciary or agency capacity for its customers are not included in the consolidated balance sheets since these items are not assets of PeoplesBank. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Advertising <br /></b>Advertising costs are charged to expense when incurred. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Income Taxes</b> <br />Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted through the provision for income taxes for the effects of changes in tax laws and rates on the effective date. </font></p>
<p><font class="_mt" size="2">The Corporation accounts for uncertain tax positions as required by FASB ASC Topic 740. FASB ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. Specifically, the accounting standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return as well as guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. No significant income tax uncertainties have been identified by the Corporation; therefore, the Corporation recognized no adjustment for unrecognized income tax benefits for the years ended December 31, 2012 or 2011. The Corporation's policy is to recognize interest and penalties on unrecognized tax benefits in income taxes expense in the Consolidated Statement of Income. The Company did not recognize any interest and penalties for the years ended December 31, 2012, 2011 and 2010. The tax years subject to examination by the taxing authorities are the years ended December 31, 2011, 2010, and 2009. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Use of Estimates <br /></b>The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near </font><font class="_mt" size="2">term relate to the determination of the allowance for loan losses, the evaluation of other-than-temporary impairment losses for investment securities and the evaluation of impairment losses for foreclosed real estate. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Fair Value of Financial Instruments <br /></b>Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. </font></p></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Per Common Share Data <br /></b>Basic net income per common share is calculated as net income available to common shareholders divided by the weighted average number of common shares outstanding. Diluted net income per common share is calculated as net income available to common shareholders divided by the weighted average number of common shares outstanding plus common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Corporation relate solely to outstanding stock options and warrants and are determined using the treasury stock method. All share and per share amounts are adjusted for stock dividends that are declared prior to the issuance of the consolidated financial statements. </font></p>
<p><font class="_mt" size="2">The computation of net income per common share for the years ended December 31, 2012, 2011 and 2010 is provided in the table below. </font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="59%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="9%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(in thousands, except per share data)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom"> </td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Net income available to common shareholders</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,010</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,319</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">5,228</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Weighted average shares outstanding (basic)</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,441</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,366</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">4,298</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Effect of dilutive stock options</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">61</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">28</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">6</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Weighted average shares outstanding (diluted)</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,502</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,394</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p align="right"><font class="_mt" size="2">4,304</font></p></td>
<td style="border-bottom: black 3px double;" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Basic earnings per common share</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2.03</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.22</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1.22</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Diluted earnings per common share</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2.00</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.21</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1.21</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Anti-dilutive stock options and common stock warrants</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">excluded from the computation of earnings per share</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">106</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">486</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table></div>
<div class="MetaData">
<p><font class="_mt" size="2"><b>Stock-Based Compensation <br /></b>The Corporation accounts for its stock-based compensation awards in accordance with FASB ASC Topic 718, which requires public companies to recognize compensation expense, related to stock-based compensation awards in their statements of operations. Compensation expense is equal to the fair value of the stock-based compensation awards on the grant date and is recognized over the vesting period of such awards. More information is provided in Note 12. </font></p></div>
<div class="MetaData">
<div><font class="_mt" size="2"><b>Cash Flow Information </b></font></div>
<div><font class="_mt" size="2">For purposes of the statements of cash flows, the Corporation considers interest bearing deposits with banks, cash and due from banks, and federal funds sold to be cash and cash equivalents. </font></div><br />
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="62%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom" colspan="8">
<p align="center"><font class="_mt" size="1"><b>Years ended December 31,</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2012</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2011</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>2010</b></font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Cash paid during the period for:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Income taxes</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">2,825</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,960</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,719</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Interest</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">10,578</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">12,525</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">13,219</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 8.65pt;"><font class="_mt" size="2">Noncash investing and financing activities:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Transfer of loans to foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">231</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">3,013</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">9,104</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Transfer of loans held for sale to the held-to-maturity portfolio</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">160</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for investment in foreclosed real estate</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">116</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">65</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for purchase of securities settling after year end</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1,063</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Increase in other liabilities for preferred stock dividends declared</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">63</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">313</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td></tr></table></div><br />
<div class="MetaData">
<div><font class="_mt" size="2"><b>Off-Balance Sheet Financial Instruments </b></font></div>
<div><font class="_mt" size="2">In the ordinary course of business, the Corporation enters into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. These financial instruments are recorded on the balance sheet when they become a receivable to the Corporation. </font></div><br /></div>
<div class="MetaData">
<div><font class="_mt" size="2"><b>Comprehensive Income </b></font></div>
<div><font class="_mt" size="2">Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders' equity section of the balance sheet, such items, along with net income, are components of comprehensive income. </font></div><br /></div>
<div class="MetaData">
<div><font class="_mt" size="2"><b>Segment Reporting </b></font></div>
<div><font class="_mt" size="2">Management has determined that it operates in only one segment, community banking. The Corporation's non-banking activities are insignificant to the consolidated financial statements. </font></div><br /></div>
<div class="MetaData">
<div><font class="_mt" size="2"><b>Reclassification </b></font></div>
<div><font class="_mt" size="2">Certain amounts in the 2011 and 2010 consolidated financial statements have been reclassified to conform to the 2012 presentation, which did not impact net income or shareholders' equity. </font></div><br /></div>
<div class="MetaData">
<div><font class="_mt" size="2"><b>Recent Accounting Pronouncements </b></font></div>
<div><font class="_mt" size="2">The FASB issued ASU No. 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IFRSs." This Update amends FASB ASC Topic 820, Fair Value Measurements, to bring U.S. GAAP for fair value measurements in line with International Accounting Standards. The Update clarifies existing guidance for items such as: the application of the highest and best use concept to non-financial assets and liabilities; the application of fair value measurement to financial instruments classified in a reporting entity's stockholder's equity; and disclosure requirements regarding quantitative information about unobservable inputs used in the fair value measurements of level 3 assets. The Update also creates an exception to Topic 820 for entities which carry financial instruments within a portfolio or group, under which the entity is now permitted to base the price used for fair valuation upon a price that would be received to sell the net asset position or transfer a net liability position in an orderly transaction. The Update also allows for the application of premiums and discounts in a fair value measurement if the financial instrument is categorized in level 2 or 3 of the fair value hierarchy. Lastly, the ASU contains new disclosure requirements regarding fair </font><font class="_mt" size="2">value amounts categorized as level 3 in the fair value hierarchy such as: disclosure of the valuation process used; effects of and relationships between unobservable inputs; usage of nonfinancial assets for purposes other than their highest and best use when that is the basis of the disclosed fair value; and categorization by level of items disclosed at fair value, but not measured at fair value for financial statement purposes. The Corporation adopted the provisions of ASU No. 2011-04 effective January 1, 2012. The fair value measurement provisions of ASU No. 2011-04 had no impact on the Corporation's consolidated financial statements. See Note 16 to the consolidated financial statements for enhanced disclosures required by ASU No. 2011-04. </font></div>
<p><font class="_mt" size="2">In November 2008, the Securities and Exchange Commission (SEC) released a proposed roadmap regarding the potential use by U.S. issuers of financial statements prepared in accordance with International Financial Reporting Standards (IFRS). IFRS is a comprehensive series of accounting standards published by the International Accounting Standards Board (IASB). On July 13, 2012, the SEC published their final report on IFRS, which included an analysis of the issues related to possible incorporation of IFRS into the U.S. financial reporting regime. The SEC report was designed to inform the SEC commissioners for when they would come to decide whether, and if so, how, IFRS should be applied to the U.S. The next step for the SEC is to develop a recommendation on IFRS, but no timetable has been disclosed for completing this work. The Corporation will continue to monitor the development of the potential implementation of IFRS. </font></p>
<p><font class="_mt" size="2">In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The objective of this ASU is to improve the reporting of reclassifications out of accumulated other comprehensive income. This ASU requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income, by component, on the respective line items in the income statement if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. Reclassifications that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period are required to be cross-referenced to other U.S. GAAP disclosures that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income. The provisions of this ASU are effective for public entities prospectively for reporting periods beginning after December 15, 2012. The update is not expected to have a material impact on the Corporation's results of operations or financial condition. </font></p></div>
<div><font class="_mt" size="2"> </font> </div> </div>25000000250000007201200024010003700400010187000158280006592000765390002138000372900001033000015983000107980009324200059240003725300010507000932420002500000014558000101331000573300040524000112060001013310002500000018868000<div> <font class="_mt" size="2"> </font>
<p><font class="_mt" size="2"><b>NOTE 10-Shareholders' Equity </b></font></p>
<p><font class="_mt" size="2"><i>Preferred stock issued under the US Treasury's Small Business Lending Fund Program </i></font></p>
<p><font class="_mt" size="2">On August 18, 2011, as part of the Treasury Small Business Lending Fund (SBLF) program, the Corporation entered into a Securities Purchase Agreement (SBLF Purchase Agreement) with the United States Department of the Treasury (Treasury) pursuant to which the Corporation sold to the Treasury, for an aggregate purchase price of $<font class="_mt">25</font> million, <font class="_mt">25,000</font> shares of senior non-cumulative, perpetual preferred stock, Series B, $<font class="_mt">1,000</font> liquidation value, $<font class="_mt">2.50</font> par value. Generally, the preferred stock is non-voting and qualifies as Tier 1 regulatory capital. The SBLF agreement imposes limits on the ability of the Corporation to pay dividends and repurchase shares of common stock if it fails to declare and pay quarterly dividends on the SBLF preferred stock. The dividend rate can fluctuate on a quarterly basis during the first <font class="_mt">10</font> quarters during which the SBLF preferred stock is outstanding, based upon changes in the level of "Qualified Small Business Lending" or "QSBL" (as defined in the Purchase Agreement) by the Bank. Based upon the increase in the Bank's level of QSBL over the baseline level calculated under the terms of the Purchase Agreement, the dividend rate for the initial dividend period was set at <font class="_mt">5</font> percent. For the second through ninth calendar quarters, the dividend rate may be adjusted between one percent (<font class="_mt">1</font>%) and five percent (<font class="_mt">5</font>%) per annum to reflect the amount of change in the Bank's level of QSBL. The annualized dividend rate in effect on December 31, 2012 was <font class="_mt">1</font> percent, compared to <font class="_mt">5</font> percent on December 31, 2011. The decrease in the dividend rate was the result of an increase in QSBL above the baseline. For the tenth calendar quarter through four and one half years after issuance, the dividend rate will be fixed at between one percent (<font class="_mt">1</font>%) and seven percent (<font class="_mt">7</font>%) based upon the increase in QSBL as compared to the baseline. After four and one half years from issuance, the dividend rate will increase to <font class="_mt">9</font>% (including a quarterly lending incentive fee of <font class="_mt">0.5</font>%). Information about SBLF preferred stock is disclosed in Note 10—Shareholders' Equity in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2011. </font></p>
<p><font class="_mt" size="2"><i>Preferred stock and common stock warrant issued under the US Treasury's Capital Purchase Program </i></font></p>
<p><font class="_mt" size="2">On August 18, 2011, the Corporation entered into a repurchase letter agreement with the Treasury providing for the redemption of the CPP preferred stock. Pursuant to the SBLF Purchase Agreement, approximately $<font class="_mt">16,507,000</font> of the proceeds of the sale of the SBLF preferred stock was used to redeem the <font class="_mt">16,500</font> shares of the Series A CPP preferred stock plus accrued and unpaid dividends. Upon redemption, the remaining $<font class="_mt">379,000</font> preferred stock discount was recorded as a reduction to third quarter 2011 net income available to common shareholders. Additionally, the additional paid-in-capital account was reduced by approximately $<font class="_mt">39,000</font> pertaining to issuance costs for the CPP preferred stock. As a result of the redemption, the Corporation is no longer subject to the restrictions imposed by the CPP. On September 28, 2011, the Corporation repurchased the outstanding CPP common stock warrant for $<font class="_mt">526,604</font> from the US Treasury which was recorded as a reduction to additional paid-in-capital. </font></p>
<p><font class="_mt" size="2"><i>Change in authorized shares of common stock </i></font></p>
<p><font class="_mt" size="2">On May 15, 2012, as previously reported on Form 8-K, the Corporation's shareholders approved the Board of Directors' proposal to amend the Corporation's Articles of Incorporation to increase the aggregate number of shares of common stock which the Corporation may issue from <font class="_mt">10</font> million to <font class="_mt">15</font> million shares. The increase in the number of authorized shares provides flexibility of action in the future and enables the Corporation to act promptly in connection with stock splits, stock dividends, acquisitions, financings and such other corporate matters involving the issuance of common stock as the Board of Directors may deem advisable. There are no present plans for the use of the additional shares. </font></p>
<p><font class="_mt" size="2"><i>Dividend Reinvestment and Stock Purchase Plan </i></font></p>
<p><font class="_mt" size="2">The Corporation maintains a Dividend Reinvestment and Stock Purchase Plan (Plan). Shareholders of common stock may participate in the Plan, which allows additional shares of common stock to be purchased with reinvested dividends at prevailing market prices. The Plan also permits participants to make additional voluntary cash payments to purchase shares of the Corporation's common stock. Since August 2008, purchases have been made from the Corporation from its authorized, but unissued, common stock. All shares reserved for the Plan were issued as of December 31, 2011. On January 26, 2012, an additional <font class="_mt">150,000</font> shares were reserved for issuance under the Plan. </font></p>
<p><font class="_mt" size="2"><i>Common stock dividend </i></font></p>
<p><font class="_mt" size="2">Periodically, the Corporation distributes stock dividends on its common stock. The Corporation distributed a <font class="_mt">5</font> percent common stock dividend on <font class="_mt">December 11, 2012</font> which resulted in the issuance of <font class="_mt">211,564</font> additional common shares. </font></p> </div>24463268032019114363112571078414316112571078418306183061129014682258841970001360006100026900020200067000266000216000500007500039000360008400056000280009700070000270000-46000460000-45000450000-28000280001240008700037000264000199000650000.99990.734751600051900050800001400048000165009712800094056000105597000102120000403790004023900042143000420200000.04000.04000.04000.040050299000525260000.05000.05000.09620.09350.10020.09729712800094056000105597000102120000290970002897500031074000309510000.04000.04000.04000.040043463000464270000.06000.06000.13350.12980.13590.1320343500043953000236950001845290005672100099446000411779000181024000175096000247190000236683000-16000000<div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Transfers of Financial Assets <br /></b>Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. </font></p></div> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="56%">
<p> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="3%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="10%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Number<br />of<br />Contracts</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Pre-Modification<br />Outstanding<br />Recorded<br />Investments</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="top" colspan="2" nowrap="nowrap">
<p align="center"><font class="_mt" size="1"><b>Post-Modification<br />Outstanding<br />Recorded<br />Investments</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>Years ended:</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Commercial related loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">nonaccrual</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">286</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">286</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Commercial related loans</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">nonaccrual</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,151</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">2,151</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">accruing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,097</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">3,097</font></p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">Consumer related loans</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">accruing</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">1</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">188</font></p></td>
<td valign="bottom">
<p> </p></td></tr></table> </div><div> <table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="font-size: 1px;"><td valign="bottom" width="32%">
<p> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="2%">
<p> </p></td>
<td valign="bottom" width="1%">
<p> </p></td>
<td valign="bottom" width="8%">
<p align="right"> </p></td>
<td valign="bottom" width="1%">
<p> </p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Less than 12 months</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>12 months or more</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="5">
<p align="center"><font class="_mt" size="1"><b>Total</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="1"><i>(dollars in thousands)</i></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair </b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Value</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unrealized<br />Losses</b></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair</b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Value</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unrealized</b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Losses</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Fair</b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Value</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="center"> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom" colspan="2">
<p align="center"><font class="_mt" size="1"><b>Unrealized </b><font class="_mt" size="1"><b><br /></b></font><font class="_mt" size="1"><b>Losses</b></font></font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2012</b></font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,251</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">8,251</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(25</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,565</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(58</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">11,565</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(58</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total temporarily impaired debt securities, available for sale</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,816</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(83</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">19,816</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(83</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p><font class="_mt" size="2"><b>December 31, 2011</b></font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p align="right"> </p></td>
<td valign="bottom">
<p> </p></td></tr>
<tr><td bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 17.3pt; margin-right: 0in;"><font class="_mt" size="2">Debt securities:</font></p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p align="right"> </p></td>
<td bgcolor="#d6f3e8" valign="bottom">
<p> </p></td></tr>
<tr><td valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">U.S. agency mortgage-backed, residential</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13,430</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(29</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">13,430</font></p></td>
<td valign="bottom">
<p> </p></td>
<td valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td valign="bottom">
<p align="right"><font class="_mt" size="2">(29</font></p></td>
<td valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 25.9pt; margin-right: 0in;"><font class="_mt" size="2">State and municipal</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">856</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">856</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p align="right"><font class="_mt" size="2">(2</font></p></td>
<td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr>
<tr><td style="border-bottom: black 1px solid;" valign="bottom">
<p style="text-indent: -8.65pt; margin-left: 34.55pt; margin-right: 0in;"><font class="_mt" size="2">Total temporarily impaired debt securities, available for sale</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,286</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">0</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">14,286</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p> </p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">$</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p align="right"><font class="_mt" size="2">(31</font></p></td>
<td style="border-bottom: black 1px solid;" valign="bottom">
<p><font class="_mt" size="2">)</font></p></td></tr></table> </div><div> <div class="MetaData">
<p><font class="_mt" size="2"><b>Use of Estimates <br /></b>The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near </font><font class="_mt" size="2">term relate to the determination of the allowance for loan losses, the evaluation of other-than-temporary impairment losses for investment securities and the evaluation of impairment losses for foreclosed real estate. </font></p></div> </div>430400043940004502000429800043660004441000
Appraisals may be adjusted downward by the Corporation's management for qualitative factors such as economic conditions, and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Fair value is generally determined through independent appraisals, which generally include various level 3 inputs that are not identifiable.
May include qualitative adjustments by the Corporation's management and estimated liquidation expenses.
Shares/options are subject to adjustment in the event of specified changes in the Corporation's capital structure.
All options available for grant under the 2000 Plan have been granted.adjusted for the 5% common stock dividend distributed on December 11, 2012Amount includes 27,749 of unvested options.EX-101.SCH
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