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
January 18, 2012		or
		Mark A. Wendel,
		EVP, Chief Financial Officer
		703-584-3400

CARDINAL ANNOUNCES RECORD 2011 ANNUAL EARNINGS;

LOAN GROWTH AND ASSET QUALITY REMAIN STRONG

Cardinal Financial Corporation (NASDAQ: CFNL) (the “Company”) today announced earnings of $28.0 million, or $0.94 per diluted share, for year ended December 31, 2011.  This is a 51.8% increase over earnings of $18.4 million, or $0.62 per diluted share, for the previous year.   For the quarter ended December 31, 2011, income was $8.2 million, or $0.28 per diluted share, versus $4.0 million, or $0.14 per diluted share, for the same quarter in 2010.

Selected Highlights

·Asset quality continues to be strong.  Nonperforming assets remained low at 0.69% of total assets, and annualized net loan charge offs were 0.34% of loans outstanding.  Real estate owned decreased to $3.0 million from $4.0 million at the previous quarter ended September 30, 2011, and the Company currently has $208,000 loans receivable past due 90 days or more.

·The Company’s tax equivalent net interest margin increased to 3.81% for the current year, up from 3.68% in the previous year. For the most recent quarter, net interest margin was 3.88% compared to 3.86% for the previous quarter ended September 30, 2011.

·Total assets at period-end were $2.603 billion versus $2.072 billion one year earlier, an increase of 25.6%.

·Loans held for investment grew to $1.632 billion, an increase of $223 million, or 15.8%, compared to the prior year end.

·Total non-interest bearing deposits grew to $263.8 million, an increase of 14.9% compared to December 31, 2010.

·All capital ratios substantially exceed the requirements of banking regulators to be considered well-capitalized.  Tangible common equity capital (TCE) as a percentage of total assets was 9.08%.

Income Statement Review

For the fourth quarter of 2011, net income was $8.2 million, or $0.28 per diluted share, an increase of 103.3% compared to the year ago quarter.  For the same periods, net interest income increased 23% to $22.7 million from $18.5 million and the tax equivalent net interest margin improved to 3.88% from 3.77%. The growth in net interest income and the margin is the result of the Bank’s success in growing its balance sheet, while average earning asset yields decreased less than the associated funding expense.  Compared to the year ago quarter, average earning assets grew $392 million, the average yield on earning assets decreased by 0.23% and the average cost of interest bearing liabilities decreased 0.42%. The average balance of the Company’s loans held for investment portfolio increased $190 million, while the yield decreased 0.24%. The average balance of loans held for sale increased $182 million and the yield decreased 0.19%.  To fund this asset growth, the average balance of non-interest bearing deposits increased $57 million, or 24%, and interest-bearing deposits increased $320 million while the costs decreased 0.27%.  In 2012, the Company expects net interest margin pressure to increase due to an increasingly competitive environment for both loans and deposits.

Noninterest income was $6.6 million for the current quarter compared to $5.5 million for the year ago quarter. For the current year compared to the prior year, noninterest income increased to $34.3 million from $27.4 million, or 25%.  The increase in income year over year is primarily attributable to revenues from mortgage banking activities, which improved by $6.4 million to $25.6 million from $19.2 million.  Mortgage banking operations were positively impacted by historically strong refinancing activity by homeowners during the year.

Noninterest expense decreased to $15.1 million for the current quarter from $16.9 million for the year ago quarter, which included an impairment charge of $2.6 million. Absent these charges, expenses increased 5.2% year over year.

For the comparable years ended December 31, noninterest expense increased to $64.5 million from $59.5 million, or 8.4%. Expenses in 2011 include losses on extinguishment of FHLB Advances of $2.3 million and settlements for potential repurchase of mortgage loans of $670,000.   In 2010, goodwill and other intangible assets charges totaled $3.0 million. Expenses for 2010 also included $801,000 of expenses related to the accelerated vesting of certain retirement benefits and data processing and telecom expenses related to the Company’s systems conversion of $943,000 partially offset by a $686,000 reduction in accruals for potential mortgage repurchases.

Absent the items mentioned in the preceding paragraph, noninterest expenses for 2011 and 2010 were $61.5 million and $55.4 million, respectively.

Review of Balance Sheet and Credit Quality

At December 31, 2011, total assets of the Company were $2.60 billion, an increase of 25.6% from total assets of $2.07 billion at December 31, 2010. Loans held for investment grew 15.8% to $1.63 billion at December 31, 2011, from $1.41 billion at December 31, 2010.  During this period, loans held for sale increased $323 million, or 157.0% while the Bank’s investment portfolio decreased slightly by $34 million, or 10.0%.

The Bank’s asset growth was primarily funded by a 26.5% increase in deposits, which grew $372 million and totaled $1.78 billion at December 31, 2011 versus $1.40 billion a year earlier. Most of this deposit growth was comprised of short term brokered CD’s, which were primarily used to fund the increase in loans held for sale. Demand deposit account balances also increased by 14.9% year over year, reflecting the Bank’s continued focus on attracting primary banking relationships.

The quality of the Bank’s loan portfolio has remained strong. The Company’s nonperforming assets stood at 0.69% of total assets at December 31, 2011 compared to 0.59% at September 30, 2011 and 0.43% at December 31, 2010.  Net loan charge-offs totaled $217,000 for the current quarter, compared to $1.3 million for last quarter.  There were $208,000 loans past due 90 days or more at December 31, 2011, while early stage loan delinquencies at 30-89 days past due were $1.9 million.  The provision for loan losses was $2.2 million for the current quarter versus $1.9 million for the fourth quarter of last year.  The total allowance for loan losses decreased to 1.60% of loans outstanding from a comparable ratio of 1.72% at December 31, 2010.

Other Information

With respect to the previously disclosed matter involving the U.S. Department of Justice (the “DOJ”), the Company continues to cooperate fully with the DOJ in its investigation and has provided relevant information to resolve the issues. It is too early to assess whether the resolution of this matter will have any effect on the Company.

MANAGEMENT COMMENTS

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

“We are pleased to announce a record year for earnings, loan and asset growth.  As our Company’s total assets surpassed the $2.6 billion mark at year end, loan losses remained minimal as we maintained a continuing conservative risk philosophy.

Moving forward into 2012, our Company will continue to concentrate on gaining core market share and increasing franchise value for our shareholders.  We remain enthusiastically committed to building a great financial services company for our employees, clients, shareholders and the communities we serve.”

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, 2010 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 $2.60 billion at December 31, 2011, serves the Washington Metropolitan region through its wholly-owned subsidiary, Cardinal Bank, with 27 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 ten 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

December 31, 2011 and  December 31, 2010

(Dollars in thousands)

	(Unaudited)						% Change
	December 31, 2011			December 31, 2010			Current Year
Cash and due from banks	$	16,745		$	12,963		29.2	%
Federal funds sold	20,394			12,905			58.0	%
Investment securities available-for-sale	295,560			320,998			-7.9	%
Investment securities held-to-maturity	12,918			21,879			-41.0	%
Investment securities — trading	2,065			2,107			-2.0	%
Total investment securities	310,543			344,984			-10.0	%
Other investments	17,120			16,469			4.0	%
Loans held for sale	529,500			206,047			157.0	%
Loans receivable, net of fees	1,631,882			1,409,302			15.8	%
Allowance for loan losses	(26,159		)	(24,210		)	8.1	%
Loans receivable, net	1,605,723			1,385,092			15.9	%
Premises and equipment, net	19,302			16,717			15.5	%
Goodwill and intangibles, net	10,490			10,688			-1.9	%
Bank-owned life insurance	35,154			34,358			2.3	%
Prepaid FDIC insurance premiums	3,350			4,574			-26.8	%
Other real estate owned	3,046			1,250			143.7	%
Other assets	31,349			25,971			20.7	%
TOTAL ASSETS	$	2,602,716		$	2,072,018		25.6	%
Non-interest bearing deposits	$	263,752		$	229,575		14.9	%
Interest bearing deposits	1,511,508			1,174,150			28.7	%
Total deposits	1,775,260			1,403,725			26.5	%
Other borrowed funds	510,385			389,586			31.0	%
Mortgage funding checks	25,989			662			3825.8	%
Escrow liabilities	4,095			1,454			181.6	%
Other liabilities	29,170			53,689			-45.7	%
Shareholders’ equity	257,817			222,902			15.7	%
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	2,602,716		$	2,072,018		25.6	%

Cardinal Financial Corporation and Subsidiaries

Summary Income Statements

 For the Three Months and Years Ended December 31, 2011 and 2010

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

(Unaudited)

	For the Three Months Ended								For the Years Ended
	December 31,								December 31,
	2011			2010			% Change		2011			2010			% Change
	(Unaudited)								(Unaudited)
Net interest income	$	22,738		$	18,466		23.1	%	$	79,162		$	69,045		14.7	%
Provision for loan losses	(2,165		)	(1,877		)	15.3	%	(6,910		)	(10,502		)	-34.2	%
Net interest income after provision for loan losses	20,573			16,589			24.0	%	72,252			58,543			23.4	%
Service charges on deposit accounts	460			446			3.1	%	1,767			1,881			-6.1	%
Loan fees	1,006			821			22.5	%	2,734			2,311			18.3	%
Investment fee income	644			1,016			-36.6	%	2,546			4,088			-37.7	%
Realized and unrealized gains on mortgage banking activities	1,794			2,005			-10.5	%	20,529			13,860			48.1	%
Management fee income	1,268			981			29.3	%	3,406			3,657			-6.9	%
Income from bank owned life insurance	193			146			32.2	%	796			646			23.2	%
Net realized gains on investment securities	1,256			103			1119.4	%	2,541			914			178.0	%
Litigation recovery on previously impaired investment	—			—			0.0	%	—			87			-100.0	%
Other non-interest income (loss)	11			4			175.0	%	14			(55		)	-125.5	%
Total non-interest income	6,632			5,522			20.1	%	34,333			27,389			25.4	%
Net interest income and non-interest income	27,205			22,111			23.0	%	106,585			85,932			24.0	%
Salaries and benefits	5,736			5,663			1.3	%	28,707			27,445			4.6	%
Occupancy	1,603			1,423			12.6	%	6,032			5,723			5.4	%
Depreciation	540			469			15.1	%	2,517			1,938			29.9	%
Data communications	1,235			909			35.9	%	4,117			4,295			-4.1	%
Professional fees	1,010			1,157			-12.7	%	3,955			2,733			44.7	%
FDIC insurance assessment	309			261			18.4	%	1,387			1,853			-25.1	%
Impairment of goodwill and other intangible assets	—			2,557			-100.0	%	—			3,008			-100.0	%
Impairment of other real estate owned	911			1,365			-33.3	%	911			1,365			-33.3	%
Mortgage loan repurchases and settlements	—			—			0.0	%	670			(686		)	-197.7	%
Loss on extinguishment of debt	—			—			0.0	%	2,271			—			100.0	%
Other operating expense	3,769			3,113			21.1	%	13,898			11,795			17.8	%
Total non-interest expense	15,113			16,917			-10.7	%	64,465			59,469			8.4	%
Income before income taxes	12,092			5,194			132.8	%	42,120			26,463			59.2	%
Provision for income taxes	3,845			1,164			230.3	%	14,122			8,021			76.1	%
NET INCOME	$	8,247		$	4,030		104.6	%	$	27,998		$	18,442		51.8	%
Earnings per common share - basic	$	0.28		$	0.14		102.1	%	$	0.95		$	0.63		50.4	%
Earnings per common share - diluted	$	0.28		$	0.14		103.3	%	$	0.94		$	0.62		50.9	%
Weighted-average common shares outstanding - basic	29,525,946			29,160,590			1.3	%	29,401,231			29,122,780			1.0	%
Weighted-average common shares outstanding - diluted	29,914,769			29,724,959			0.6	%	29,784,081			29,608,002			0.6	%

Cardinal Financial Corporation and Subsidiaries

Selected Financial Information

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

	For the Three Months Ended				For the Years Ended
	December 31,				December 31,
	2011		2010		2011		2010
	(Unaudited)		(Unaudited)		(Unaudited)
Income Statements:
Interest income	$	28,529	$	24,993	$	102,878	$	96,633
Interest expense	5,791		6,527		23,716		27,588
Net interest income	22,738		18,466		79,162		69,045
Provision for loan losses	2,165		1,877		6,910		10,502
Net interest income after provision for loan losses	20,573		16,589		72,252		58,543
Non-interest income	6,632		5,522		34,333		27,389
Non-interest expense	15,113		16,917		64,465		59,469
Net income before income taxes	12,092		5,194		42,120		26,463
Provision for income taxes	3,845		1,164		14,122		8,021
Net income	$	8,247	$	4,030	$	27,998	$	18,442

	December 31, 2011			December 31, 2010
	(Unaudited)
Balance Sheet Data:
Total assets	$	2,602,716		$	2,072,018
Loans receivable, net of fees	1,631,882			1,409,302
Allowance for loan losses	(26,159		)	(24,210		)
Loans held for sale	529,500			206,047
Total investment securities	310,543			344,984
Total deposits	1,775,260			1,403,725
Other borrowed funds	510,385			389,586
Total shareholders’ equity	257,817			222,902
Common shares outstanding	29,199			28,770

	For the Three Months Ended December 31,						For the Years Ended December 31,
	2011			2010			2011			2010
Selected Average Balances:
Total assets	$	2,493,489		$	2,082,070		$	2,206,946		$	1,997,911
Loans receivable, net of fees	1,561,294			1,371,010			1,464,454			1,327,558
Allowance for loan losses	(24,643		)	(24,325		)	(24,524		)	(21,306		)
Loans held for sale	457,052			274,992			244,542			194,928
Total investment securities	307,362			301,945			336,262			336,088
Interest earning assets	2,368,854			1,976,880			2,099,120			1,894,313
Total deposits	1,824,662			1,447,497			1,570,067			1,378,887
Other borrowed funds	371,131			376,699			365,724			376,508
Total shareholders’ equity	256,838			229,873			241,755		��	218,457
Weighted Average:
Common shares outstanding - basic	29,526			29,161			29,401			29,123
Common shares outstanding - diluted	29,915			29,725			29,784			29,608
Per Common Share Data:
Basic net income	$	0.28		$	0.14		$	0.95		$	0.63
Fully diluted net income	0.28			0.14			0.94			0.62
Book value	8.83			7.75			8.83			7.75
Tangible book value (1)	8.08			7.22			8.08			7.22
Performance Ratios:
Return on average assets	1.32		%	0.77		%	1.27		%	0.92		%
Return on average equity	12.84		%	7.01		%	11.58		%	8.44		%
Net interest margin (2)	3.88		%	3.77		%	3.81		%	3.68		%
Efficiency ratio (3)	51.46		%	70.52		%	56.80		%	61.67		%
Non-interest income to average assets	1.06		%	1.06		%	1.56		%	1.37		%
Non-interest expense to average assets	2.42		%	3.25		%	2.92		%	2.98		%
Asset Quality Data:
Annualized net charge-offs to average loans receivable, net of fees							0.34		%	0.37		%
Total nonaccrual loans							$	14,617		$	7,516
Real estate owned							$	3,046		$	1,250
Nonperforming loans to loans receivable, net of fees							0.91		%	0.53		%
Nonperforming loans to total assets							0.57		%	0.36		%
Nonperforming assets to total assets (4)							0.69		%	0.43		%
Total loans receivable past due 30 to 89 days							$	1,904		$	2,131
Total loans receivable past due 90 days or more							$	208		$	49
Allowance for loan losses to loans receivable, net of fees							1.60		%	1.72		%
Allowance for loan losses to nonperforming loans							176.45		%	320.03		%
Capital Ratios:
Tier 1 risk-based capital							11.25		%	12.67		%
Total risk-based capital							12.43		%	14.06		%
Leverage capital ratio							10.14		%	10.82		%

(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% for 2011 and 35% for 2010.

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

(4) Does not include approximately $1.1 million of land held for investment.

Cardinal Financial Corporation and Subsidiaries

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

For the Three Months and Years Ended December 31, 2011 and 2010

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended										For the Years Ended
	December 31, 2011					December 31, 2010					December 31, 2011					December 31, 2010
	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	$	223,091		4.35	%	$	173,528		4.41	%	$	202,441		4.40	%	$	163,497		4.58	%
Real estate - commercial	732,316			5.78	%	618,565			6.28	%	669,841			5.92	%	609,568			6.23	%
Real estate - construction	267,299			5.72	%	225,115			5.61	%	250,897			5.57	%	204,167			5.62	%
Real estate - residential	214,058			4.94	%	229,959			5.13	%	216,065			5.03	%	227,950			5.16	%
Home equity lines	121,358			3.73	%	120,986			3.46	%	122,090			3.71	%	119,686			3.64	%
Consumer	3,172			5.25	%	2,857			5.83	%	3,120			5.35	%	2,690			5.87	%
Total loans	1,561,294			5.30	%	1,371,010			5.54	%	1,464,454			5.35	%	1,327,558			5.53	%
Loans held for sale	457,052			4.13	%	274,992			4.32	%	244,542			4.40	%	194,928			4.64	%
Investment securities - available-for-sale (1)	294,104			4.39	%	279,176			4.35	%	320,138			4.40	%	307,612			4.49	%
Investment securities - held-to-maturity	13,258			2.59	%	22,769			3.10	%	16,124			2.73	%	28,476			3.28	%
Other investments	15,729			0.81	%	15,728			0.39	%	15,723			0.79	%	15,728			0.34	%
Federal funds sold	27,417			0.23	%	13,205			0.22	%	38,139			0.23	%	20,011			0.23	%
Total interest-earning assets	2,368,854			4.86	%	1,976,880			5.09	%	2,099,120			4.94	%	1,894,313			5.14	%
Non-interest earning assets:
Cash and due from banks	14,892					13,409					14,609					12,893
Premises and equipment, net	19,298					16,971					17,943					16,436
Goodwill and intangibles, net	10,519					13,253					10,593					13,587
Accrued interest and other assets	104,569					85,882					89,205					81,988
Allowance for loan losses	(24,643		)			(24,325		)			(24,524		)			(21,306		)
TOTAL ASSETS	$	2,493,489				$	2,082,070				$	2,206,946				$	1,997,911
Interest-bearing liabilities:
Interest checking	$	130,881		0.19	%	$	132,923		0.19	%	$	133,841		0.19	%	$	133,105		0.35	%
Money markets	169,334			0.41	%	142,479			0.49	%	163,856			0.41	%	109,771			0.56	%
Statement savings	224,341			0.36	%	257,999			0.36	%	238,165			0.36	%	272,843			0.52	%
Certificates of deposit	1,007,755			1.19	%	679,014			1.80	%	776,585			1.52	%	661,906			1.97	%
Total interest-bearing deposits	1,532,311			0.89	%	1,212,415			1.16	%	1,312,447			1.03	%	1,177,625			1.32	%
Other borrowed funds	371,131			2.50	%	376,699			3.13	%	365,724			2.78	%	376,508			3.19	%
Total interest-bearing liabilities	1,903,442			1.21	%	1,589,114			1.63	%	1,678,171			1.41	%	1,554,133			1.78	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	292,351					235,082					257,620					201,262
Other liabilities	40,858					28,001					29,400					24,059
Shareholders’ equity	256,838					229,873					241,755					218,457
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	2,493,489				$	2,082,070				$	2,206,946				$	1,997,911
NET INTEREST MARGIN (1)				3.88	%				3.77	%				3.81	%				3.68	%

(1) The average yields for loans receivable and investment securities available-for-sale are reported on a fully taxable-equivalent basis at a rate of 34% for 2011 and 35% for 2010.

Cardinal Financial Corporation and Subsidiaries

Segment Reporting at and for the Three Months and Years Ended December 31, 2011 and 2010

(Dollars in thousands)

(Unaudited)

At and for the Three Months Ended December 31, 2011:

	Commercial		Mortgage		Wealth Management &					Intersegment
	Banking		Banking		Trust Services		Other			Elimination			Consolidated
Net interest income	$	22,135	$	811	$	—	$	(208	)	$	—		$	22,738
Provision for loan losses	2,165		—		—		—			—			2,165
Non-interest income	2,275		3,645		650		100			(38		)	6,632
Non-interest expense	9,650		4,137		527		837			(38		)	15,113
Provision for income taxes	4,084		88		39		(366		)	—			3,845
Net income (loss)	$	8,511	$	231	$	84	$	(579	)	$	—		$	8,247
Average Assets	$	2,497,420	$	461,554	$	647	$	255,451		$	(721,583	)	$	2,493,489

At and for the Three Months Ended December 31, 2010:

	Commercial		Mortgage		Wealth Management &						Intersegment
	Banking		Banking		Trust Services			Other			Elimination			Consolidated
Net interest income	$	18,013	$	658	$	—		$	(205	)	$	—		$	18,466
Provision for loan losses	1,877		—		—			—			—			1,877
Non-interest income	818		3,597		1,016			108			(17		)	5,522
Non-interest expense	9,170		2,989		3,708			1,067			(17		)	16,917
Provision for income taxes	2,450		438		(942		)	(782		)	—			1,164
Net income (loss)	$	5,334	$	828	$	(1,750	)	$	(382	)	$	—		$	4,030
Average Assets	$	2,074,261	$	280,735	$	2,960		$	228,991		$	(504,877	)	$	2,082,070

At and for the Twelve Months Ended December 31, 2011:

	Commercial		Mortgage		Wealth Management &						Intersegment
	Banking		Banking		Trust Services			Other			Elimination			Consolidated
Net interest income	$	77,456	$	2,522	$	—		$	(816	)	$	—		$	79,162
Provision for loan losses	6,910		—		—			—			—			6,910
Non-interest income	6,116		25,592		2,552			161			(88		)	34,333
Non-interest expense	42,202		16,032		2,610			3,709			(88		)	64,465
Provision for income taxes	11,397		4,291		(29		)	(1,537		)	—			14,122
Net income (loss)	$	23,063	$	7,791	$	(29	)	$	(2,827	)	$	—		$	27,998
Average Assets	$	2,204,122	$	248,384	$	603		$	252,887		$	(499,050	)	$	2,206,946

At and for the Twelve Months Ended December 31, 2010:

	Commercial		Mortgage		Wealth Management &						Intersegment
	Banking		Banking		Trust Services			Other			Elimination			Consolidated
Net interest income	$	67,480	$	2,385	$	—		$	(820	)	$	—		$	69,045
Provision for loan losses	10,502		—		—			—			—			10,502
Non-interest income	3,975		19,203		4,102			205			(96		)	27,389
Non-interest expense	37,226		11,103		6,798			4,438			(96		)	59,469
Provision for income taxes	7,432		3,640		(942		)	(2,109		)	—			8,021
Net income (loss)	$	16,295	$	6,845	$	(1,754	)	$	(2,944	)	$	—		$	18,442
Average Assets	$	1,987,599	$	203,172	$	3,180		$	230,376		$	(426,416	)	$	1,997,911