Cardinal Financial (CFNL) 8-K Results of Operations and Financial Condition

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE	Contact: Bernard H. Clineburg,
Tysons Corner, Virginia	Chairman, Chief Executive Officer
October 21, 2009	or
	Mark A. Wendel,
	EVP, Chief Financial Officer
	703-584-3400

CARDINAL REPORTS INCREASED THIRD QUARTER EARNINGS
ASSET QUALITY REMAINS STRONG, NET INTEREST MARGIN IMPROVES, LOANS GREW 16%

Cardinal Financial Corporation (NASDAQ: CFNL) (the “Company”) today reported earnings of $2.6 million, or $0.09 per diluted share, for the three month period ended September 30, 2009.   This compares to a net loss of $4.4 million or $0.18 per diluted share for the same period of 2008.  For the nine month period ended September 30, 2009, earnings totaled $6.9 million, or $0.26 per diluted share, versus a net loss of $1.5 million, or $0.06 per diluted share, for the same nine month period of 2008.

Included in the year-to-date 2009 results was an increase in the level of loan loss provisioning that continues to be influenced by a struggling economy. When comparing the current quarter to the same quarter last year, the provision expense increased $405,000.  For the comparable nine month periods, there was an increase of $2.0 million in this expense.  Additionally, year-to-date 2009 results were impacted by changes in ongoing and special FDIC insurance assessments, which increased this expense $280,000 and $1.7 million for the three and nine month periods ended September 30, 2009, reducing earnings by $0.01 and $0.04 per diluted share, respectively, versus the same periods in 2008.

Selected Highlights

·Asset quality continues to be excellent.  Nonperforming assets remained low at 0.50% of total assets, and annualized net loan charge offs year-to-date were 0.20% of loans outstanding.

·The loans receivable portfolio grew to $1.263 billion, an increase of $177 million, or 16.3%, compared to September 30, 2008.  For the quarter, loans held for investment grew $65 million, an annualized increase of over 20%.  Loans held for sale increased 12.8% from the prior year to $152 million at September 30, 2009.

·Total deposits grew to $1.275 billion, an increase of 17.5% compared to September 30, 2008 and 8.1% since the beginning of this year.

·Total assets at period-end were $1.893 billion versus $1.638 billion one year earlier, an increase of 15.6%.  The increase in total assets was primarily funded by the Company’s deposit growth and a successful capital raise of $31.6 million, which will allow the Company to continue penetrating its existing footprint and take full advantage of bank consolidation opportunities.

·Total risk-based capital to risk based assets was 14.31%, which substantially exceeds the 10.0% ratio that banking regulators consider to be the well-capitalized threshold.  Tangible common equity capital (TCE) as a percentage of total assets was 9.78%.

Income Statement Review

Third quarter net income was $2.6 million, or $0.09 per diluted share. Compared to the year ago quarter, net interest income increased to $13.1 million from $11.3 million.  During the current quarter, the net interest margin improved to 2.97% versus 2.84% and 2.61% for the second and first quarters of 2009, respectively.  The increases in net interest income and margin are primarily a result of the Bank’s success in growing its balance sheet while maintaining asset yields and lowering deposit rates.

Noninterest income increased $1.3 million, or 30%, for the three month period ended September 30, 2009 compared to the same period of 2008. For the nine months ended September 30, 2009, noninterest income increased $4.3 million, or 32%, over 2008 results.  The increase was primarily attributable to gains on mortgage banking activities from increases in loan originations and closings.  For the third quarter of 2009, the profit from our mortgage banking operations increased to $779,000 versus an operating loss of $325,000 in the same period last year.  Year-to-date through September 30th, profit from our mortgage banking operations increased to $3.5 million versus operating earnings of $159,000 last year.  Included in year to date results are increased fees of $677,000 from “managed” mortgage banking companies and increased revenues of $984,000 from our title company.

Noninterest expense before nonrecurring items for the three and nine month periods increased to $13.0 million from $12.0 million and to $38.7 million from $35.7 million, for the three and nine month periods ended September 30, 2009 and 2008, respectively.  As mentioned, the increase in FDIC premiums accounts for a large portion of this increase.  The remaining increase is primarily attributed to mortgage banking activity.

Review of Balance Sheet and Credit Quality

At September 30, 2009, total assets of the Company were $1.893 billion, an increase of 15.6% from total assets of $1.638 billion at September 30, 2008. Portfolio loans receivable grew 16.3% to $1.263 billion at September 30, 2009, from $1.087 billion at September 30, 2008.  The increase in the Bank’s loan portfolio was primarily comprised of increases in small business, commercial, commercial real estate and home equity lending as we continued to maintain a balanced loan portfolio.

The Bank’s asset growth was primarily funded by a 17.5% increase in deposits, which totaled $1.276 billion at September 30, 2009 versus $1.086 billion a year earlier.  Demand deposit account balances increased by 4.6% year over year reflecting the Bank’s continued focus on generating lower funding costs.

Although the quality of the Bank’s loan portfolio has remained excellent, the total allowance for loan losses was increased to 1.38% of loans outstanding due to the current credit market, economic uncertainties and a slight increase in the Company’s nonperforming assets, which increased to 0.50% of total assets at September 30, 2009 compared to 0.41% at June 30, 2009 and 0.29% at December 31, 2008.  The third quarter 2009 increase in nonperforming loans totaled $1.9 million and consisted of one commercial loan which is secured by real estate and four residential mortgage loans.  Net loan charge-offs totaled $727,000 for the third quarter of 2009, compared to $778,000 for the same period of 2008.  On a year-to-date basis, net loan charge-offs totaled $1.8 million, or 0.20% of loans outstanding on an annualized basis, compared to $1.1 million or 0.14% for the nine months ended September 30, 2008.  Early stage loan delinquencies at 30-89 days past due were $15,000 at September 30, 2009 versus $541,000 at September 30, 2008.

MANAGEMENT COMMENTS

Bernard H. Clineburg, Chairman and Chief Executive Officer of the Company, said:

“I continue to be pleased with our Company’s performance this year, considering the ongoing challenges with both the U.S. and regional economies.  The quality of our loan portfolio remains strong, differentiating Cardinal from many of its competitors in this environment. We also have been successful in our campaign to aggressively lend to qualified borrowers.  Our loan portfolio grew over $60 million this quarter, again achieving annualized growth well into the double digits. Although management has closely monitored deposit pricing, we have been able to primarily fund this asset growth with new deposit relationships.   As a result of growth in both our loan and deposit balances, we have experienced a significant increase in our net interest margin since the beginning of the year.

“Noninterest income has also increased significantly since last year, mainly as a result of improved activity at our mortgage banking subsidiary, George Mason.  Residential loan closings have almost doubled last year’s volume and have surpassed $2.0 billion year to date.

“Our recent capital raise put us in a position to substantially raise our legal lending limit and to extend our activities and relationships with larger businesses in the Washington DC metropolitan

area.  We also anticipate that announced bank mergers will result in further consolidation in our market.  There are over 400 branches in the marketplace that will be impacted by the mergers, and some may close.  We stand ready to capitalize on the dislocation of customers that normally occurs from this activity.

“While no financial institution is completely immune to downturns in the economy, we are proud that we maintain superb asset quality and significantly exceed regulatory requirements for a well capitalized bank.  As always, the board and management remain committed to operating a safe and sound financial institution and building upon our quality growth, and we believe we are well positioned to maximize the value of the Cardinal franchise.”

CAUTION ABOUT FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements contain information related to matters such as the Company’s intent, belief or expectation with regard to such matters as financial and operational performance, credit quality and branch expansion. Such statements are necessarily based on management’s assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company’s operations and business environment, which are difficult to predict and beyond the control of the Company. Such risks and uncertainties could cause actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements. For an explanation of the risks and uncertainties associated with forward-looking statements, please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 and other reports filed with and furnished to the Securities and Exchange Commission.

About Cardinal Financial Corporation: Cardinal Financial Corporation, a financial holding company headquartered in Tysons Corner, Virginia with assets of $1.9 billion at September 30, 2009, serves the Washington Metropolitan region through its wholly-owned subsidiary, Cardinal Bank, with 25 conveniently located banking offices. Cardinal also operates several other subsidiaries: George Mason Mortgage, LLC, and Cardinal First Mortgage, LLC, residential mortgage lending companies based in Fairfax, with six offices throughout the Washington Metropolitan region; Cardinal Trust and Investment Services, a trust division; Cardinal Wealth Services, Inc., a full-service brokerage company; and Wilson/Bennett Capital Management, Inc., an asset management company. The Company’s stock is traded on NASDAQ (CFNL). For additional information please visit our Web site at www.cardinalbank.com or call (703) 584-3400.

Cardinal Financial Corporation and Subsidiaries

Summary Statements of Condition

September 30, 2009,  December 31, 2008 and September 30, 2008

(Dollars in thousands)

	(Unaudited)						(Unaudited)			% Change
	September 30, 2009			December 31, 2008			September 30, 2008			Current Year		Year Over Year
Cash and due from banks	$	12,251		$	14,919		$	22,124		-17.9	%	-44.6	%
Federal funds sold	7,727			31,009			21,785			-75.1	%	-64.5	%
Investment securities available-for-sale	334,670			265,356			231,044			26.1	%	44.9	%
Investment securities held-to-maturity	37,526			50,183			52,229			-25.2	%	-28.2	%
Total investment securities	372,196			315,539			283,273			18.0	%	31.4	%
Other investments	16,467			16,370			16,822			0.6	%	-2.1	%
Loans held for sale	151,806			157,009			134,553			-3.3	%	12.8	%
Loans receivable, net of fees	1,263,291			1,139,348			1,086,531			10.9	%	16.3	%
Allowance for loan losses	(17,473		)	(14,518		)	(13,257		)	20.4	%	31.8	%
Loans receivable, net	1,245,818			1,124,830			1,073,274			10.8	%	16.1	%
Premises and equipment, net	15,578			16,463			16,995			-5.4	%	-8.3	%
Goodwill and intangibles, net	13,995			14,173			14,232			-1.3	%	-1.7	%
Bank-owned life insurance	33,576			33,176			33,056			1.2	%	1.6	%
Other assets	23,989			20,269			22,078			18.4	%	8.7	%
TOTAL ASSETS	$	1,893,403		$	1,743,757		$	1,638,192		8.6	%	15.6	%
Non-interest bearing deposits	$	154,276		$	147,529		$	147,499		4.6	%	4.6	%
Interest bearing deposits	1,121,600			1,032,315			938,065			8.6	%	19.6	%
Total deposits	1,275,876			1,179,844			1,085,564			8.1	%	17.5	%
Other borrowed funds	378,645			367,198			374,007			3.1	%	1.2	%
Mortgage funding checks	13,167			19,178			7,293			-31.3	%	80.5	%
Escrow liabilities	2,329			1,832			1,250			27.1	%	86.3	%
Other liabilities	20,036			17,699			15,538			13.2	%	28.9	%
Shareholders’ equity	203,350			158,006			154,540			28.7	%	31.6	%
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,893,403		$	1,743,757		$	1,638,192		8.6	%	15.6	%

Cardinal Financial Corporation and Subsidiaries

Summary Income Statements

Three and Nine Months Ended September 30, 2009 and 2008

(Dollars in thousands, except share and per share data)

(Unaudited)

	For the Three Months Ended								For the Nine Months Ended
	September 30,								September 30,
	2009			2008			% Change		2009			2008			% Change
Net interest income	$	13,092		$	11,280		16.1	%	$	35,674		$	32,660		9.2	%
Provision for loan losses	(2,050		)	(1,645		)	24.6	%	(4,750		)	(2,734		)	73.7	%
Net interest income after provision for loan losses	11,042			9,635			14.6	%	30,924			29,926			3.3	%
Service charges on deposit accounts	514			522			-1.5	%	1,482			1,584			-6.4	%
Loan fees	503			365			37.8	%	2,161			1,029			110.0	%
Investment fee income	975			893			9.2	%	2,665			2,715			-1.8	%
Realized and unrealized gains on mortgage banking activities	2,833			1,985			42.7	%	9,579			5,878			63.0	%
Management fee income	553			204			171.1	%	1,267			590			114.7	%
Other non-interest income	326			426			-23.5	%	558			1,586			-64.8	%
Total non-interest income	5,704			4,395			29.8	%	17,712			13,382			32.4	%
Net interest income and non-interest income	16,746			14,030			19.4	%	48,636			43,308			12.3	%
Salaries and benefits	5,897			5,754			2.5	%	17,546			17,250			1.7	%
Occupancy	1,321			1,429			-7.6	%	4,055			4,205			-3.6	%
Depreciation	464			583			-20.4	%	1,515			1,821			-16.8	%
Data processing	469			402			16.7	%	1,438			1,257			14.4	%
Telecommunications	328			256			28.1	%	939			742			26.5	%
Impairment of Fannie Mae perpetual preferred stock	—			4,408			-100.0	%	—			4,408			-100.0	%
Impairment of goodwill	—			2,821			-100.0	%	—			2,821			-100.0	%
Settlement with mortgage correspondent	—			—			0.0	%	—			1,800			-100.0	%
Other operating expense	4,499			3,603			24.9	%	13,228			10,414			27.0	%
Total non-interest expense	12,978			19,256			-32.6	%	38,721			44,718			-13.4	%
Income (loss) before income taxes	3,768			(5,226		)	-172.1	%	9,915			(1,410		)	-803.2	%
Provision (benefit) for income taxes	1,164			(816		)	-242.6	%	3,000			84			3471.4	%
NET INCOME (LOSS)	$	2,604		$	(4,410	)	-159.0	%	$	6,915		$	(1,494	)	-562.9	%
Earnings per common share - basic	$	0.09		$	(0.18	)	-149.5	%	$	0.26		$	(0.06	)	-525.1	%
Earnings per common share - diluted	$	0.09		$	(0.18	)	-148.7	%	$	0.26		$	(0.06	)	-517.4	%
Weighted-average common shares outstanding - basic	28,999,230			24,327,751			19.2	%	26,559,683			24,393,167			8.9	%
Weighted-average common shares outstanding - diluted	29,524,878			24,327,751			21.4	%	27,047,915			24,393,167			10.9	%
Reconciliation of Non-GAAP measures:
GAAP net income reported above	$	2,604		$	(4,410	)			$	6,915		$	(1,494	)
After tax impact on:
- FDIC special assessment	—			—					557			—
- impairment of Fannie Mae perpetual preferred stock	—			3,992					—			3,992
- impairment of goodwill	—			1,846					—			1,846
- settlement with mortgage correspondent	—			—					—			1,179
Operating earnings, excluding nonrecurring expenses reported above:	$	2,604		$	1,428		82.4	%	$	7,472		$	5,523		35.3	%
GAAP earnings per share - diluted reported above	$	0.09		$	(0.18	)			$	0.26		$	(0.06	)
After tax impact on:
- FDIC special assessment	—			—					0.02			—
- impairment of Fannie Mae perpetual preferred stock	—			0.16					—			0.16
- impairment of goodwill	—			0.08					—			0.07
- settlement with mortgage correspondent	—			—					—			0.05
Operating earnings per common share - diluted (excluding nonrecurring expenses reported above)	$	0.09		$	0.06		50.3	%	$	0.28		$	0.22		25.0	%
GAAP non-interest expense reported above	$	12,978		$	19,256				$	38,721		$	44,718
Less nonrecurring expenses:
- FDIC special assessment	—			—					844			—
- impairment of Fannie Mae perpetual preferred stock	—			(4,408		)			—			(4,408		)
- impairment of goodwill	—			(2,821		)			—			(2,821		)
- settlement with mortgage correspondent	—			—					—			(1,800		)
Non-interest expense, excluding nonrecurring expenses reported above	$	12,978		$	12,027		7.9	%	$	39,565		$	35,689		10.9	%

Cardinal Financial Corporation and Subsidiaries

Selected Financial Information

(Dollars in thousands, except per share data and ratios)

(Unaudited)

	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2009		2008			2009		2008
Income Statements:
Interest income	$	21,923	$	21,951		$	63,571	$	67,283
Interest expense	8,831		10,671			27,897		34,623
Net interest income	13,092		11,280			35,674		32,660
Provision for loan losses	2,050		1,645			4,750		2,734
Net interest income after provision for loan losses	11,042		9,635			30,924		29,926
Non-interest income	5,704		4,395			17,712		13,382
Non-interest expense	12,978		19,256			38,721		44,718
Net income before income taxes	3,768		(5,226		)	9,915		(1,410		)
Provision for income taxes	1,164		(816		)	3,000		84
Net income	$	2,604	$	(4,410	)	$	6,915	$	(1,494	)

	September 30, 2009			September 30, 2008
Balance Sheet Data:
Total assets	$	1,893,403		$	1,638,192
Loans receivable, net of fees	1,263,291			1,086,531
Allowance for loan losses	(17,473		)	(13,257		)
Loans held for sale	151,806			134,553
Total investment securities	372,196			283,273
Total deposits	1,275,876			1,085,564
Other borrowed funds	378,645			374,007
Total shareholders’ equity	203,350			154,540
Common shares outstanding	28,690			24,103

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2009			2008			2009			2008
Selected Average Balances:
Total assets	$	1,851,895		$	1,620,893		$	1,783,380		$	1,636,453
Loans receivable, net of fees	1,212,910			1,075,609			1,183,271			1,057,239
Allowance for loan losses	(16,692		)	(12,763		)	(15,725		)	(12,192		)
Loans held for sale	131,417			118,009			168,428			132,921
Total investment securities	326,182			313,180			283,652			325,851
Interest earning assets	1,778,013			1,541,592			1,708,611			1,554,172
Total deposits	1,271,837			1,083,469			1,220,137			1,107,002
Other borrowed funds	362,391			359,976			363,422			349,178
Total shareholders’ equity	200,387			159,971			180,041			161,567
Weighted Average:
Common shares outstanding - basic	28,999			24,328			26,560			24,393
Common shares outstanding - diluted	29,525			24,328			27,048			24,393
Per Common Share Data:
Basic net income	$	0.09		$	(0.18	)	$	0.26		$	(0.06	)
Fully diluted net income	0.09			(0.18		)	0.26			(0.06		)
Book value	7.09			6.41			7.09			6.41
Tangible book value (1)	6.41			5.92			6.41			5.92
Performance Ratios:
Return on average assets	0.56		%	-1.09		%	0.52		%	-0.12		%
Return on average equity	5.20		%	-11.03		%	5.12		%	-1.23		%
Net interest margin (2)	2.97		%	2.96		%	2.81		%	2.84		%
Efficiency ratio (3)	69.05		%	76.73		%	72.53		%	77.51		%
Non-interest income to average assets	1.23		%	1.08		%	1.32		%	1.09		%
Non-interest expense to average assets	2.80		%	4.75		%	2.89		%	3.64		%
Asset Quality Data:
Annualized net charge-offs to average loans receivable, net of fees							0.20		%	0.14		%
Total nonaccrual loans							$	9,454		$	—
Real estate owned							$	185		$	—
Nonperforming loans to loans receivable, net of fees							0.75		%	0.05		%
Nonperforming loans to total assets							0.50		%	0.04		%
Total loans receivable past due 30 days or more							$	15		$	541
Total loans receivable past due 90 days or more							$	25		$	584
Allowance for loan losses to loans receivable, net of fees							1.38		%	1.22		%
Allowance for loan losses to nonperforming loans							165.89		%	2087.67		%
Capital Ratios:
Tier 1 risk-based capital							13.16		%	11.93		%
Total risk-based capital							14.31		%	12.91		%
Leverage capital ratio							11.09		%	10.22		%

(1) Tangible book value is calculated as total shareholders’ equity, adjusted for changes in other comprehensive income, less goodwill and other intangible assets, divided by common shares outstanding.

(2) Net interest margin is calculated as net interest income divided by total average earning assets and reported on a tax equivalent basis at a rate of 34%.

(3) Efficiency ratio is calculated as total non-interest expense (less nonrecurring expense) divided by the total of net interest income and non-interest income.

Cardinal Financial Corporation and Subsidiaries

Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities

Three and Nine Months Ended September 30, 2009 and 2008

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended										For the Nine Months Ended
	September 30, 2009					September 30, 2008					September 30, 2009					September 30, 2008
	Average Balance			Average Yield		Average Balance			Average Yield		Average Balance			Average Yield		Average Balance			Average Yield
Interest-earning assets:
Loans receivable, net of fees (1)
Commercial and industrial	$	148,446		4.80	%	$	119,891		6.15	%	$	158,966		4.80	%	$	127,572		6.35	%
Real estate - commercial	567,150			6.27	%	454,513			6.55	%	531,923			6.26	%	432,948			6.56	%
Real estate - construction	178,585			5.04	%	189,041			5.72	%	177,728			4.57	%	190,428			6.11	%
Real estate - residential	201,500			5.15	%	213,360			5.60	%	202,133			5.34	%	213,018			5.61	%
Home equity lines	114,414			3.58	%	96,196			4.66	%	109,935			3.65	%	90,593			4.92	%
Consumer	2,815			5.78	%	2,608			6.08	%	2,586			6.05	%	2,680			6.48	%
Total loans	1,212,910			5.47	%	1,075,609			6.01	%	1,183,271			5.41	%	1,057,239			6.12	%
Loans held for sale	131,417			4.96	%	118,009			5.79	%	168,428			4.47	%	132,921			5.81	%
Investment securities - available-for-sale (1)	286,835			4.72	%	258,807			5.29	%	239,301			4.96	%	264,376			5.25	%
Investment securities - held-to-maturity	39,347			3.60	%	54,373			4.30	%	44,351			3.78	%	61,475			4.25	%
Other investments	15,728			0.84	%	15,726			2.91	%	15,697			0.11	%	15,138			4.82	%
Federal funds sold (1)	91,776			0.25	%	19,068			2.45	%	57,563			0.24	%	23,023			2.52	%
Total interest-earning assets	1,778,013			4.96	%	1,541,592			5.73	%	1,708,611			4.99	%	1,554,172			5.81	%
Non-interest earning assets:
Cash and due from banks	1,213					7,241					1,026					7,526
Premises and equipment, net	15,723					17,276					15,977					17,765
Goodwill and intangibles, net	14,025					17,060					14,090					17,140
Accrued interest and other assets	59,613					50,487					59,401					52,042
Allowance for loan losses	(16,692		)			(12,763		)			(15,725		)			(12,192		)
TOTAL ASSETS	$	1,851,895				$	1,620,893				$	1,783,380				$	1,636,453
Interest-bearing liabilities:
Interest-bearing deposits	$	1,121,501		2.02	%	$	946,894		3.04	%	$	1,075,904		2.30	%	$	979,057		3.34	%
Other borrowed funds	362,391			3.42	%	359,976			3.78	%	363,422			3.45	%	349,178			3.89	%
Total interest-bearing liabilities	1,483,892			2.36	%	1,306,870			3.24	%	1,439,326			2.59	%	1,328,235			3.48	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	150,336					136,575					144,233					127,945
Other liabilities	17,280					17,477					19,780					18,706
Shareholders’ equity	200,387					159,971					180,041					161,567
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,851,895				$	1,620,893				$	1,783,380				$	1,636,453
NET INTEREST MARGIN (1)				2.97	%				2.96	%				2.81	%				2.84	%

(1) The average yields for loans receivable, investment securities available-for-sale and fed funds sold (which includes investments in money market preferred stock) are reported on a fully taxable-equivalent basis at a rate of 34%.

Cardinal Financial Corporation and Subsidiaries

Segment Reporting at and for the Three and Nine Months Ended September 30, 2009 and 2008

(Dollars in thousands)

(Unaudited)

At and for the Three Months Ended September 30, 2009:

	Commercial		Mortgage		Wealth Management &					Intersegment
	Banking		Banking		Trust Services		Other			Elimination			Consolidated
Net interest income	$	12,649	$	655	$	—	$	(212	)	$	—		$	13,092
Provision for loan losses	2,050		—		—		—			—			2,050
Non-interest income	917		3,724		980		103			(20		)	5,704
Non-interest expense	8,334		3,192		785		687			(20		)	12,978
Provision for income taxes	961		408		66		(271		)	—			1,164
Net income (loss)	$	2,221	$	779	$	129	$	(525	)	$	—		$	2,604
Average Assets	$	1,851,296	$	137,303	$	3,430	$	223,422		$	(363,556	)	$	1,851,895

At and for the Three Months Ended September 30, 2008:

	Commercial			Mortgage			Wealth Management &					Intersegment
	Banking			Banking			Trust Services		Other			Elimination			Consolidated
Net interest income	$	10,720		$	837		$	—	$	(277	)	$	—		$	11,280
Provision for loan losses	865			780			—		—			—			1,645
Non-interest income	1,142			2,352			893		8			—			4,395
Non-interest expense	12,096			5,728			859		573			—			19,256
Provision for income taxes	605			(1,148		)	13		(286		)	—			(816		)
Net income (loss)	$	(1,704	)	$	(2,171	)	$	21	$	(556	)	$	—		$	(4,410	)
Reconciliation of Non-GAAP measures:
After tax impact on:
- Impairment of goodwill	—			1,846			—		—			—			1,846
- Impairment of Fannie Mae perpetual preferred stock	3,992			—			—		—			—			3,992
Operating earnings, excluding nonrecurring expenses reported above	$	2,288		$	(325	)	$	21	$	(556	)	$	—		$	1,428
Average Assets	$	1,612,406		$	124,567		$	3,589	$	172,889		$	(292,558	)	$	1,620,893

At and for the Nine Months Ended September 30, 2009:

	Commercial		Mortgage		Wealth Management &					Intersegment
	Banking		Banking		Trust Services		Other			Elimination			Consolidated
Net interest income	$	34,191	$	2,165	$	—	$	(682	)	$	—		$	35,674
Provision for loan losses	4,656		94		—		—			—			4,750
Non-interest income	3,077		12,419		2,686		(406		)	(64		)	17,712
Non-interest expense	25,504		9,154		2,376		1,751			(64		)	38,721
Provision for income taxes	2,025		1,835		105		(965		)	—			3,000
Net income (loss)	$	5,083	$	3,501	$	205	$	(1,874	)	$	—		$	6,915
Reconciliation of Non-GAAP measures:
After tax impact on:
- FDIC special assessment	557		—		—		—			—			557
Operating earnings, excluding nonrecurring expenses reported above	$	5,640	$	3,501	$	205	$	(1,874	)	$	—		$	7,472
Average Assets	$	1,777,923	$	170,349	$	3,447	$	201,099		$	(369,438	)	$	1,783,380

At and for the Nine Months Ended September 30, 2008:

	Commercial		Mortgage			Wealth Management &					Intersegment
	Banking		Banking			Trust Services		Other			Elimination			Consolidated
Net interest income	$	31,110	$	2,470		$	—	$	(920	)	$	—		$	32,660
Provision for loan losses	1,790		944			—		—			—			2,734
Non-interest income	3,565		7,075			2,715		27			—			13,382
Non-interest expense	27,165		12,979			2,575		1,999			—			44,718
Provision for income taxes	2,528		(1,512		)	51		(983		)	—			84
Net income (loss)	$	3,192	$	(2,866	)	$	89	$	(1,909	)	$	—		$	(1,494	)
Reconciliation of Non-GAAP measures:
After tax impact on:
- Impairment of goodwill	—		1,846			—		—			—			1,846
- Impairment of Fannie Mae perpetual preferred stock	3,992		—			—		—			—			3,992
- Settlement with mortgage correspondent	—		1,179			—		—			—			1,179
Operating earnings, excluding nonrecurring expenses
reported above	$	7,184	$	159		$	89	$	(1,909	)	$	—		$	5,523
Average Assets	$	1,628,002	$	138,243		$	3,647	$	176,287		$	(309,726	)	$	1,636,453