Condensed Income Statement

Three Months Ended

December 31,

Year Ended

December 31,

2012

2011

2012

2011

Interest income

$

7,232

7,888

29,938

32,093

Interest expense

1,105

1,411

4,889

6,387

  Net interest income

6,127

6,477

25,049

25,706

Provision for loan losses

609

613

1,351

2,089

  Net interest income after provision

5,518

5,864

23,698

23,617

Non-interest income

2,753

1,981

9,049

7,764

Non-interest expense

5,340

5,321

21,682

21,849

  Income before income taxes

2,931

2,524

11,065

9,532

Provision for income taxes

772

570

2,795

2,210

  Net income from continuing operations

2,159

1,954

8,270

7,322

Income from discontinued operations,

  net of taxes

-

-

-

793

  Net income

$

2,159

1,954

8,270

8,115

Dividends per common share

$

0.16

0.16

0.64

0.64

Basic earnings per common share:

  Continuing operations

$

0.32

0.29

1.23

1.09

  Discontinued operations

-

-

-

0.12

Diluted earnings per common share:

  Continuing operations

$

0.32

0.28

1.22

1.08

  Discontinued operations

-

-

-

0.12

Average basic shares outstanding

6,727,502

6,699,005

6,717,357

6,692,385

Average diluted shares outstanding

6,819,117

6,767,406

6,802,475

6,751,599

Selected Financial Ratios

Return on average assets

1.06%

0.97%

1.02%

1.02%

Return on average equity

10.33%

9.94%

10.22%

10.89%

Dividend payout ratio

50.00%

55.17%

52.03%

52.89%

Net interest margin (tax equivalent)

3.41%

3.63%

3.52%

3.70%