EXHIBIT 99
MBT Financial Corp. Announces Third Quarter 2009 Results
MONROE, Mich., October 22, 2009 – MBT Financial Corp., (Nasdaq: MBTF), the parent company of Monroe Bank & Trust, reported a third quarter 2009 net loss of $1.6 million, or $0.10 per share, compared to the profit of $324,000, or $0.02 per diluted share in the third quarter of 2008. The year to date loss for 2009 is $8.3 million, or $0.52 per share compared to a profit of $4.7 million, or $0.29 per diluted share in the first three quarters of 2008.
The third quarter results include $5.3 million in gains on securities sold, a $4.5 million charge to record the other than temporary impairment of pooled trust preferred CDO investments, a $0.9 million write off of a defaulted investment security, and losses on the sales and write downs of other real estate owned totaled $1.9 million. In addition, the third quarter provision for loan losses was $5.7 million, an increase of $1.6 million compared to the third quarter of 2008.
The Net Interest Income for the third quarter of 2009 was $10.5 million, a decrease of $570,000, or 5.1% compared to the same period in 2008. The Net Interest Margin was unchanged at 3.24%, but the amount of average earning assets decreased $67.4 million, or 4.8%. Earning assets decreased due to a reduction of $80.7 million, or 8.2% in average loans, as economic conditions significantly decreased loan demand.
Non interest income, excluding securities gains, losses, and impairment charges decreased from $3.9 million in the third quarter of 2008 to $3.7 million in the third quarter of 2009. This was mainly due to a decrease of $151,000 in Wealth Management fee income, which was adversely impacted by the declines in market values of assets under management.
Non Interest expenses increased $25,000, or 0.2% as the bank continues to focus on controlling expenses. Losses and expenses of foreclosed real estate properties decreased $327,000, or 12.3% compared to last year while the cost of FDIC insurance increased $402,000, or 177.9%. Compared to last quarter, salaries and benefits declined by 5.1%, and overall non interest expenses net of credit related charges and the FDIC assessment declined by 3.0%.
Total assets of the bank decreased $62.5 million compared to September 30, 2008 due to the previously mentioned decrease in loan demand. The company’s capital position decreased from 8.0% of assets to 7.64%, which remains above regulatory minimums to be considered “well capitalized”. In addition, the company believes its liquidity position has improved, as cash and investments now total 30.3% of assets compared to 27.3% a year ago.
H. Douglas Chaffin, President and CEO, commented, “Although the national economy is beginning to show signs of recovering from the worst recession since the great depression, we expect the recession to continue into 2010 for the state of Michigan. The high level of unemployment and the unprecedented decline in real estate values had a negative impact on our asset quality and earnings. On October 8, 2009, we conducted an auction of foreclosed real estate properties. This was our second auction this year, and we were again successful in removing some non performing assets from our balance sheet. Although the auction was in the fourth quarter, we wrote down the values of the properties sold in the third quarter, recognizing a loss of $489,000. The sales are expected to close in the fourth quarter, which will result in an additional decrease of $1.4 million in Other Real Estate Owned, and a monthly decrease of nearly $10,000 in insurance, property taxes, and maintenance expenses for these properties. Our provision for loan losses and other credit related expenses remain elevated due to the current economic conditions, and the FDIC has significantly raised our deposit insurance assessment to rebuild their fund. In spite of these challenges, changes in our balance sheet structure allowed us to maintain our capital ratio at a level that exceeds the regulatory “well capitalized” minimum. Due to the losses recorded in the last few quarters, and the uncertainty of our economic and regulatory environments, our Board decided in August to take action to preserve capital by suspending the quarterly dividend to shareholders.”
Mr. Chaffin concluded, “Real estate values and unemployment rates in our market have shown signs of stabilizing recently. However, we anticipate any recovery in our local market to be lengthy. As a result, our Board is currently considering various options that might be available to raise additional capital. We will seek to continue to maintain our strong capital, liquidity, and allowance for loan losses. Our community banking model is needed more than ever in our markets, and we believe that we are well positioned for the eventual economic recovery.”
Conference Call
MBT Financial Corp. will hold a conference call to discuss third quarter results on Friday, October 23, at 10:00 a.m. Eastern Time. The call will be webcast and can be accessed at the Investor Relations/Corporate Profile page of MBT Financial Corp.’s web site www.mbandt.com. The call can also be accessed by calling (800) 860-2442. The event will be archived on the Company’s web site and available for twelve months following the call.
About the Company
MBT Financial Corp. (NASDAQ: MBTF), a single bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust (MBT).
Founded in 1858, MBT is one of the largest community banks in Southeast Michigan, with $1.4 billion in assets. MBT is a full-service bank, offering a complete range of business and personal accounts, credit options, and phone and online banking services. MBT’s Wealth Management Group is one of the largest and most respected in Southeastern Michigan. With 25 offices, 41 ATMs, and a comprehensive array of products and services, MBT prides itself in offering an incomparable banking experience for its customers. Visit MBT’s web site at www.mbandt.com.
Forward-Looking Statements
Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 21A of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond the Company's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, change in the financial and securities markets, including changes with respect to the market value of our financial assets, the availability of and costs associated with sources of liquidity, and the ability of the Company to resolve or dispose of problem loans. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION:
| H. Douglas Chaffin | John L. Skibski | Mary Jane Town |
| Chief Executive Officer | Chief Financial Officer | Marketing Officer |
| (734) 384-8123 | (734) 242-1879 | (734) 240-2510 |
| doug.chaffin@mbandt.com | john.skibski@mbandt.com | maryjane.town@mbandt.com |
| MBT FINANCIAL CORP. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED |
| | | Quarterly | | | Year to Date | |
| | | 2009 | | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | | | | | |
| (dollars in thousands except per share data) | | 3rd Qtr | | | 2nd Qtr | | | 1st Qtr | | | 4th Qtr | | | 3rd Qtr | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | | | | | | | | | | |
| EARNINGS | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 10,516 | | | $ | 10,185 | | | $ | 10,213 | | | $ | 9,723 | | | $ | 11,086 | | | $ | 30,914 | | | $ | 32,666 | |
| FTE Net interest income | | $ | 10,857 | | | $ | 10,536 | | | $ | 10,565 | | | $ | 10,088 | | | $ | 11,417 | | | $ | 31,958 | | | $ | 33,664 | |
| Provision for loan and lease losses | | $ | 5,700 | | | $ | 8,000 | | | $ | 4,200 | | | $ | 10,000 | | | $ | 4,100 | | | $ | 17,900 | | | $ | 8,000 | |
| Non-interest income | | $ | 3,559 | | | $ | 3,630 | | | $ | 3,331 | | | $ | 3,900 | | | $ | 4,265 | | | $ | 10,520 | | | $ | 12,085 | |
| Non-interest expense | | $ | 11,390 | | | $ | 14,589 | | | $ | 11,997 | | | $ | 8,773 | | | $ | 11,365 | | | $ | 37,976 | | | $ | 31,226 | |
| Net income (loss) | | $ | (1,599 | ) | | $ | (5,373 | ) | | $ | (1,367 | ) | | $ | (2,997 | ) | | $ | 324 | | | $ | (8,339 | ) | | $ | 4,689 | |
| Basic earnings (loss) per share | | $ | (0.10 | ) | | $ | (0.33 | ) | | $ | (0.08 | ) | | $ | (0.19 | ) | | $ | 0.02 | | | $ | (0.52 | ) | | $ | 0.29 | |
| Diluted earnings (loss) per share | | $ | (0.10 | ) | | $ | (0.33 | ) | | $ | (0.08 | ) | | $ | (0.19 | ) | | $ | 0.02 | | | $ | (0.52 | ) | | $ | 0.29 | |
| Average shares outstanding | | | 16,192,914 | | | | 16,182,528 | | | | 16,165,841 | | | | 16,143,902 | | | | 16,136,402 | | | | 16,180,527 | | | | 16,131,436 | |
| Average diluted shares outstanding | | | 16,192,914 | | | | 16,193,278 | | | | 16,181,966 | | | | 16,154,652 | | | | 16,147,152 | | | | 16,180,527 | | | | 16,158,897 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | -0.44 | % | | | -1.48 | % | | | -0.37 | % | | | -0.77 | % | | | 0.09 | % | | | -0.76 | % | | | 0.41 | % |
| Return on average common equity | | | -5.64 | % | | | -18.31 | % | | | -4.53 | % | | | -9.78 | % | | | 1.04 | % | | | -9.49 | % | | | 4.92 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Base Margin | | | 3.08 | % | | | 3.00 | % | | | 2.89 | % | | | 2.65 | % | | | 3.08 | % | | | 2.99 | % | | | 2.99 | % |
| FTE Adjustment | | | 0.10 | % | | | 0.10 | % | | | 0.10 | % | | | 0.10 | % | | | 0.09 | % | | | 0.10 | % | | | 0.09 | % |
| Loan Fees | | | 0.06 | % | | | 0.04 | % | | | 0.05 | % | | | 0.04 | % | | | 0.07 | % | | | 0.05 | % | | | 0.07 | % |
| FTE Net Interest Margin | | | 3.24 | % | | | 3.14 | % | | | 3.04 | % | | | 2.79 | % | | | 3.24 | % | | | 3.14 | % | | | 3.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 61.90 | % | | | 70.22 | % | | | 69.70 | % | | | 59.11 | % | | | 56.66 | % | | | 67.21 | % | | | 60.75 | % |
| Full-time equivalent employees | | | 370 | | | | 370 | | | | 383 | | | | 384 | | | | 366 | | | | 374 | | | | 374 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CAPITAL | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | | 7.84 | % | | | 8.10 | % | | | 8.09 | % | | | 7.83 | % | | | 8.19 | % | | $ | 8.01 | % | | | 8.32 | % |
| Book value per share | | $ | 6.81 | | | $ | 6.80 | | | $ | 7.18 | | | $ | 7.49 | | | $ | 7.46 | | | $ | 6.81 | | | $ | 7.46 | |
| Cash dividend per share | | $ | - | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.09 | | | $ | 0.09 | | | $ | 0.02 | | | $ | 0.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ASSET QUALITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loan Charge-Offs | | $ | 12,364 | | | $ | 6,334 | | | $ | 1,575 | | | $ | 10,132 | | | $ | 3,954 | | | $ | 20,273 | | | $ | 10,516 | |
| Loan Recoveries | | $ | 262 | | | $ | 456 | | | $ | 600 | | | $ | 252 | | | $ | 169 | | | $ | 1,318 | | | $ | 702 | |
| Net Charge-Offs | | $ | 12,102 | | | $ | 5,878 | | | $ | 975 | | | $ | 9,880 | | | $ | 3,785 | | | $ | 18,955 | | | $ | 9,814 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | | $ | 17,473 | | | $ | 23,875 | | | $ | 21,753 | | | $ | 18,528 | | | $ | 18,408 | | | $ | 17,473 | | | $ | 18,408 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual Loans | | $ | 62,038 | | | $ | 61,917 | | | $ | 50,437 | | | $ | 47,872 | | | $ | 34,892 | | | $ | 62,038 | | | $ | 34,892 | |
| Loans 90 days past due | | $ | 192 | | | $ | 300 | | | $ | 864 | | | $ | 93 | | | $ | 119 | | | $ | 192 | | | $ | 119 | |
| Restructured loans | | $ | 14,359 | | | $ | 7,552 | | | $ | 4,901 | | | $ | 5,811 | | | $ | 6,685 | | | $ | 14,359 | | | $ | 6,685 | |
| Total non performing loans | | $ | 76,589 | | | $ | 69,769 | | | $ | 56,202 | | | $ | 53,776 | | | $ | 41,696 | | | $ | 76,589 | | | $ | 41,696 | |
| Other real estate owned & other assets | | $ | 20,737 | | | $ | 19,215 | | | $ | 22,792 | | | $ | 19,211 | | | $ | 17,893 | | | $ | 20,737 | | | $ | 17,893 | |
| Total non performing assets | | $ | 97,326 | | | $ | 88,984 | | | $ | 78,994 | | | $ | 72,987 | | | $ | 59,589 | | | $ | 97,326 | | | $ | 59,589 | |
| Problem Loans Still Performing | | $ | 48,366 | | | $ | 59,076 | | | $ | 75,127 | | | $ | 63,935 | | | $ | 56,156 | | | $ | 48,366 | | | $ | 56,156 | |
| Total Problem Assets | | $ | 145,692 | | | $ | 148,060 | | | $ | 154,121 | | | $ | 136,922 | | | $ | 115,745 | | | $ | 145,692 | | | $ | 115,745 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net loan charge-offs to average loans | | | 5.34 | % | | | 2.57 | % | | | 0.42 | % | | | 4.08 | % | | | 1.54 | % | | | 2.76 | % | | | 1.32 | % |
| Allowance for losses to total loans | | | 1.99 | % | | | 2.62 | % | | | 2.35 | % | | | 1.97 | % | | | 1.88 | % | | | 1.99 | % | | | 1.88 | % |
| Non performing loans to gross loans | | | 8.71 | % | | | 7.66 | % | | | 6.08 | % | | | 5.71 | % | | | 4.25 | % | | | 8.71 | % | | | 4.25 | % |
| Non performing assets to total assets | | | 6.74 | % | | | 6.17 | % | | | 5.32 | % | | | 4.67 | % | | | 3.96 | % | | | 6.74 | % | | | 3.96 | % |
| Allowance to non performing loans | | | 22.81 | % | | | 34.22 | % | | | 38.71 | % | | | 34.45 | % | | | 44.15 | % | | | 22.81 | % | | | 44.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| END OF PERIOD BALANCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 879,513 | | | $ | 910,356 | | | $ | 923,919 | | | $ | 941,732 | | | $ | 981,038 | | | $ | 879,513 | | | $ | 981,038 | |
| Total earning assets | | $ | 1,315,930 | | | $ | 1,321,006 | | | $ | 1,363,015 | | | $ | 1,434,098 | | | $ | 1,383,659 | | | $ | 1,315,930 | | | $ | 1,383,659 | |
| Total assets | | $ | 1,443,238 | | | $ | 1,441,582 | | | $ | 1,485,854 | | | $ | 1,562,401 | | | $ | 1,505,709 | | | $ | 1,443,238 | | | $ | 1,505,709 | |
| Deposits | | $ | 1,047,649 | | | $ | 1,039,479 | | | $ | 1,066,886 | | | $ | 1,136,078 | | | $ | 1,080,194 | | | $ | 1,047,649 | | | $ | 1,080,194 | |
| Interest Bearing Liabilities | | $ | 1,199,403 | | | $ | 1,189,725 | | | $ | 1,232,573 | | | $ | 1,282,993 | | | $ | 1,234,705 | | | $ | 1,199,403 | | | $ | 1,234,705 | |
| Shareholders' equity | | $ | 110,323 | | | $ | 110,010 | | | $ | 116,096 | | | $ | 120,977 | | | $ | 120,413 | | | $ | 110,323 | | | $ | 120,413 | |
| Total Shares Outstanding | | | 16,198,785 | | | | 16,187,277 | | | | 16,178,121 | | | | 16,148,482 | | | | 16,139,538 | | | | 16,198,785 | | | | 16,139,538 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 899,789 | | | $ | 918,513 | | | $ | 934,766 | | | $ | $963,445 | | | $ | 980,466 | | | $ | 917,561 | | | $ | 990,345 | |
| Total earning assets | | $ | 1,331,375 | | | $ | 1,346,749 | | | $ | 1,405,306 | | | $ | 1,436,265 | | | $ | 1,398,768 | | | $ | 1,360,872 | | | $ | 1,425,146 | |
| Total assets | | $ | 1,434,971 | | | $ | 1,452,339 | | | $ | 1,513,312 | | | $ | 1,557,430 | | | $ | 1,505,823 | | | $ | 1,466,587 | | | $ | 1,529,166 | |
| Deposits | | $ | 1,051,967 | | | $ | 1,054,447 | | | $ | 1,100,982 | | | $ | 1,144,238 | | | $ | 1,076,734 | | | $ | 1,068,952 | | | $ | 1,087,442 | |
| Interest Bearing Liabilities | | $ | 1,202,082 | | | $ | 1,212,880 | | | $ | 1,258,040 | | | $ | 1,297,202 | | | $ | 1,245,873 | | | $ | 1,224,129 | | | $ | 1,267,559 | |
| Shareholders' equity | | $ | 112,533 | | | $ | 117,677 | | | $ | 122,371 | | | $ | 121,969 | | | $ | 123,355 | | | $ | 117,491 | | | $ | 127,280 | |
MBT FINANCIAL CORP. |
| CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
| | | Quarter Ended September 30, | | | Nine Months Ended September 30, | |
| Dollars in thousands (except per share data) | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Interest Income | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 13,229 | | | $ | 15,689 | | | $ | 39,994 | | | $ | 47,888 | |
| Interest on investment securities- | | | | | | | | | | | | | | | | |
| Tax-exempt | | | 837 | | | | 844 | | | | 2,579 | | | | 2,477 | |
| Taxable | | | 3,544 | | | | 4,558 | | | | 11,872 | | | | 14,312 | |
| Interest on balances due from banks | | | 30 | | | | - | | | | 57 | | | | - | |
| Interest on federal funds sold | | | - | | | | 22 | | | | - | | | | 23 | |
| Total interest income | | | 17,640 | | | | 21,113 | | | | 54,502 | | | | 64,700 | |
| | | | | | | | | | | | | | | | | |
| Interest Expense | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 4,174 | | | | 6,263 | | | | 14,280 | | | | 20,122 | |
| Interest on borrowed funds | | | 2,950 | | | | 3,764 | | | | 9,308 | | | | 11,912 | |
| Total interest expense | | | 7,124 | | | | 10,027 | | | | 23,588 | | | | 32,034 | |
| | | | | | | | | | | | | | | | | |
| Net Interest Income | | | 10,516 | | | | 11,086 | | | | 30,914 | | | | 32,666 | |
| Provision For Loan Losses | | | 5,700 | | | | 4,100 | | | | 17,900 | | | | 8,000 | |
| | | | | | | | | | | | | | | | | |
| Net Interest Income After | | | | | | | | | | | | | | | | |
| Provision For Loan Losses | | | 4,816 | | | | 6,986 | | | | 13,014 | | | | 24,666 | |
| | | | | | | | | | | | | | | | | |
| Other Income | | | | | | | | | | | | | | | | |
| Income from wealth management services | | | 936 | | | | 1,087 | | | | 2,756 | | | | 3,333 | |
| Service charges and other fees | | | 1,516 | | | | 1,683 | | | | 4,304 | | | | 4,795 | |
| Net gain (loss) on sales of securities | | | 4,365 | | | | 323 | | | | 5,021 | | | | 371 | |
| Other Than Temporary Impairment on securities | | | (2,693 | ) | | | - | | | | (9,093 | ) | | | - | |
| Portion of OTTI loss recognized in other | | | | | | | | | | | | | | | | |
| comprehensive income (before taxes) | | | (1,859 | ) | | | - | | | | 3,772 | | | | - | |
| Origination fees on mortgage loans sold | | | 119 | | | | 73 | | | | 350 | | | | 357 | |
| Bank Owned Life Insurance income | | | 369 | | | | 355 | | | | 1,034 | | | | 985 | |
| Other | | | 806 | | | | 744 | | | | 2,376 | | | | 2,244 | |
| Total other income | | | 3,559 | | | | 4,265 | | | | 10,520 | | | | 12,085 | |
| | | | | | | | | | | | | | | | | |
| Other Expenses | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 5,122 | | | | 5,090 | | | | 15,956 | | | | 16,113 | |
| Occupancy expense | | | 804 | | | | 801 | | | | 2,445 | | | | 2,712 | |
| Equipment expense | | | 729 | | | | 804 | | | | 2,348 | | | | 2,480 | |
| Marketing expense | | | 277 | | | | 297 | | | | 798 | | | | 894 | |
| Professional fees | | | 419 | | | | 401 | | | | 1,286 | | | | 1,325 | |
| Collection expense | | | 121 | | | | 87 | | | | 685 | | | | 514 | |
| Net loss on other real estate owned | | | 1,927 | | | | 2,215 | | | | 7,957 | | | | 2,604 | |
| Other real estate owned expense | | | 399 | | | | 438 | | | | 1,165 | | | | 1,026 | |
| FDIC deposit insurance assessment | | | 628 | | | | 226 | | | | 2,314 | | | | 394 | |
| Other | | | 964 | | | | 1,006 | | | | 3,022 | | | | 3,164 | |
| Total other expenses | | | 11,390 | | | | 11,365 | | | | 37,976 | | | | 31,226 | |
| | | | | | | | | | | | | | | | | |
| Income (Loss) Before Income Taxes | | | (3,015 | ) | | | (114 | ) | | | (14,442 | ) | | | 5,525 | |
| Income Tax Expense (Benefit) | | | (1,416 | ) | | | (438 | ) | | | (6,103 | ) | | | 836 | |
| Net Income (Loss) | | $ | (1,599 | ) | | $ | 324 | | | $ | (8,339 | ) | | $ | 4,689 | |
| | | | | | | | | | | | | | | | | |
| Basic Earnings (Loss) Per Common Share | | $ | (0.10 | ) | | $ | 0.02 | | | $ | (0.52 | ) | | $ | 0.29 | |
| | | | | | | | | | | | | | | | | |
| Diluted Earnings (Loss) Per Common Share | | $ | (0.10 | ) | | $ | 0.02 | | | $ | (0.52 | ) | | $ | 0.29 | |
| | | | | | | | | | | | | | | | | |
| Dividends Declared Per Common Share | | $ | - | | | $ | 0.09 | | | $ | 0.02 | | | $ | 0.45 | |
| MBT FINANCIAL CORP. |
| CONSOLIDATED BALANCE SHEETS |
| | | September 30, 2009 | | | December 31, | | | September 30, 2008 | |
| Dollars in thousands | | (Unaudited) | | | 2008 | | | (Unaudited) | |
| Assets | | | | | | | | | |
| Cash and Cash Equivalents | | | | | | | | | |
| Cash and due from banks | | | | | | | | | |
| Non-interest bearing | | $ | 14,500 | | | $ | 24,463 | | | $ | 21,927 | |
| Interest bearing | | | 56,731 | | | | 26,323 | | | | 600 | |
| Federal funds sold | | | - | | | | - | | | | 5,300 | |
| Total cash and cash equivalents | | | 71,231 | | | | 50,786 | | | | 27,827 | |
| | | | | | | | | | | | | |
| Securities - Held to Maturity | | | 34,655 | | | | 46,840 | | | | 38,248 | |
| Securities - Available for Sale | | | 331,945 | | | | 406,117 | | | | 345,387 | |
| Federal Home Loan Bank stock - at cost | | | 13,086 | | | | 13,086 | | | | 13,086 | |
| Loans held for sale | | | 418 | | | | 784 | | | | 267 | |
| Loans - Net | | | 861,622 | | | | 922,420 | | | | 962,363 | |
| Accrued interest receivable and other assets | | | 49,456 | | | | 43,973 | | | | 41,658 | |
| Bank Owned Life Insurance | | | 47,961 | | | | 45,488 | | | | 45,083 | |
| Premises and Equipment - Net | | | 32,864 | | | | 32,907 | | | | 31,790 | |
| Total assets | | $ | 1,443,238 | | | $ | 1,562,401 | | | $ | 1,505,709 | |
| | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Non-interest bearing | | $ | 121,746 | | | $ | 144,585 | | | $ | 136,989 | |
| Interest-bearing | | | 925,903 | | | | 991,493 | | | | 943,205 | |
| Total deposits | | | 1,047,649 | | | | 1,136,078 | | | | 1,080,194 | |
| | | | | | | | | | | | | |
| Federal Home Loan Bank advances | | | 243,500 | | | | 261,500 | | | | 261,500 | |
| Repurchase agreements | | | 30,000 | | | | 30,000 | | | | 30,000 | |
| Interest payable and other liabilities | | | 11,766 | | | | 13,846 | | | | 13,602 | |
| Total liabilities | | | 1,332,915 | | | | 1,441,424 | | | | 1,385,296 | |
| | | | | | | | | | | | | |
| Shareholders' Equity | | | | | | | | | | | | |
| Common stock (no par value) | | | 554 | | | | 321 | | | | - | |
| Retained Earnings | | | 114,234 | | | | 122,896 | | | | 127,621 | |
| Accumulated other comprehensive income | | | (4,465 | ) | | | (2,240 | ) | | | (7,208 | ) |
| Total shareholders' equity | | | 110,323 | | | | 120,977 | | | | 120,413 | |
| Total liabilities and shareholders' equity | | $ | 1,443,238 | | | $ | 1,562,401 | | | $ | 1,505,709 | |
