Condensed Income Statement

Three Months Ended

June 30,

Six Months Ended

June 30,

2012

2011

2012

2011

Interest income

$

7,571

8,099

15,302

16,229

Interest expense

1,272

1,667

2,594

3,439

  Net interest income

6,299

6,432

12,708

12,790

Provision for loan losses

91

224

306

888

  Net interest income after provision

6,208

6,208

12,402

11,902

Non-interest income

1,755

1,835

4,091

3,750

Non-interest expense

5,330

5,307

10,778

11,092

  Income before income taxes

2,633

2,736

5,715

4,560

Provision for income taxes

646

713

1,451

1,059

  Net income from continuing operations

1,987

2,023

4,264

3,501

Income from discontinued operations,

  net of taxes

-

(31)

-

793

  Net income

$

1,987

1,992

4,264

4,294

Dividends per common share

$

0.16

0.16

0.32

0.32

Basic earnings per common share:

  Continuing operations

$

0.30

0.30

0.64

0.52

  Discontinued operations

-

-

-

0.12

Diluted earnings per common share:

  Continuing operations

$

0.29

0.30

0.63

0.52

  Discontinued operations

-

-

-

0.12

Average basic shares outstanding

6,713,847

6,689,743

6,710,062

6,689,743

Average diluted shares outstanding

6,789,776

6,746,791

6,781,614

6,744,375

Selected Financial Ratios

Return on average assets

0.98%

1.00%

1.07%

1.11%

Return on average equity

9.96%

10.97%

10.77%

12.04%

Dividend payout ratio

53.33%

53.33%

50.00%

50.00%

Net interest margin (tax equivalent)

3.52%

3.70%

3.61%

3.79%