| x      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------------------------------------------------------------------------------------|
|   | For the fiscal year ended December 31, 2010                                          |

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|
|   | For the transition period from _______ to _______                                        |

| Indiana                                                       |   | 35-1632155                              |
|---------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. Employer Identification number) |

| 21 S.E. Third Street, P.O. Box 868, Evansville, IN |   | 47705-0868 |
|----------------------------------------------------|--------|------------|
| (Address of principal executive offices)           |   | (Zip Code) |

| Large accelerated filer  ̈ | Accelerated filer  ̈ | Non-accelerated filer  ̈ | Smaller reporting company x |
|--------------------------------|--------------------------|------------------------------|-----------------------------|

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|       |   |                                                                                                                   |   | PAGE   |
|------------|--------|------------------------------------------------------------------------------------------------------------------------|--------|--------|
|       |   |                                                                                                                   |   | NUMBER |
|       |   |                                                                                                                   |   |   |
| PART I     |   |                                                                                                                   |   |   |
|       |   |                                                                                                                   |   |   |
| Item 1.    |   | Business                                                                                                               |   | 4      |
| Item 1A.   |   | Risk Factors                                                                                                           |   | 11     |
| Item 1B.   |   | Unresolved Staff Comments                                                                                              |   | 16     |
| Item 2.    |   | Properties                                                                                                             |   | 16     |
| Item 3.    |   | Legal Proceedings                                                                                                      |   | 16     |
| Item 4.    |   | [Removed and Reserved]                                                                                                 |   | 17     |
|       |   |                                                                                                                   |   |   |
| PART II    |   |                                                                                                                   |   |   |
|       |   |                                                                                                                   |   |   |
| Item 5.    |   | Market for Registrant’s Common Equity and Related Stockholder Matters, and Issuer Purchases of Equity Securities |   | 17     |
| Item 6.    |   | Selected Financial Data                                                                                                |   | 17     |
| Item 7.    |   | Management’s Discussion and Analysis of Financial Condition and Results of Operation                             |   | 18     |
| Item 7A.   |   | Quantitative and Qualitative Disclosures About Market Risk                                                             |   | 40     |
| Item 8.    |   | Financial Statements and Supplementary Data                                                                            |   | 41     |
| Item 9.    |   | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                                   |   | 91     |
| Item 9A.   |   | Controls and Procedures                                                                                                |   | 91     |
| Item 9B.   |   | Other Information                                                                                                      |   | 91     |
|       |   |                                                                                                                   |   |   |
| PART III   |   |                                                                                                                   |   |   |
|       |   |                                                                                                                   |   |   |
| Item 10.   |   | Directors and Executive Officers and Corporate Governance                                                              |   | 91     |
| Item 11.   |   | Executive Compensation                                                                                                 |   | 91     |
| Item 12.   |   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                         |   | 91     |
| Item 13.   |   | Certain Relationships and Related Transactions, and Director Independence                                              |   | 91     |
| Item 14.   |   | Principal Accountant Fees and Services                                                                                 |   | 91     |
|       |   |                                                                                                                   |   |   |
| PART IV    |   |                                                                                                                   |   |   |
|       |   |                                                                                                                   |   |   |
| Item 15.   |   | Exhibits and Financial Statement Schedules                                                                             |   | 92     |
|       |   |                                                                                                                   |   |   |
| Signatures |   |                                                                                                                   |   | 93     |

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|   | · | Additional restrictions regarding transactions with affiliates; |
|--------|--------|-----------------------------------------------------------------|

|   | · | More stringent asset growth restrictions; |
|--------|--------|-------------------------------------------|

|   | · | Additional restrictions on other Bank activities; |
|--------|--------|---------------------------------------------------|

|   | · | Directives to improve management, such as ordering election of a new board of directors, dismissing directors or senior executives and employing qualified senior executive officers; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Prohibiting deposits from correspondent banks; |
|--------|--------|------------------------------------------------|

|   | · | Requiring prior approval for any capital distributions by a parent holding company; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Requiring the holding company to divest itself of the Bank; and |
|--------|--------|-----------------------------------------------------------------|

|   | · | Other actions the OCC believes would enable the Bank to carry out its obligations. |
|--------|--------|------------------------------------------------------------------------------------|

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|   | · | Centralize responsibility for consumer financial protection by creating a new agency within the Federal Reserve, the Consumer Financial Protection Bureau, responsible for implementing, examining and enforcing compliance with federal consumer financial laws; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Apply the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminate the ceiling on the size of the Deposit Insurance Fund (“DIF”) and increase the floor of the DIF; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Make permanent the $250,000 limit for federal deposit insurance and increase the cash limit of Securities Investor Protection Corporation protection from $100,000 to $250,000 and provide unlimited federal deposit insurance until December 31, 2012 for non-interest bearing demand transaction accounts, including Interest on Lawyer Trust Accounts (“IOLTAs”), at all insured depository institutions; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transactions and other accounts; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Implement corporate governance revisions, including with regard to executive compensation and proxy access by shareholders that apply to all public companies, not just financial institutions; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase the authority of the Federal Reserve to examine us and any of our non-bank subsidiaries. |
|--------|--------|---------------------------------------------------------------------------------------------------|

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|   | · | To the extent we are eligible to use a Registration Statement on Form S-3 under the Securities Act of 1933, we are required to register for resale the Treasury Preferred Stock, the Warrant and the Warrant Shares.  We registered the resale of the Warrant and the Warrant Shares in June 2009.  We are not currently eligible to use Form S-3 to register the resale of the Treasury Preferred Stock. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | As long as the Treasury Preferred Stock remains outstanding, unless all accrued and unpaid dividends for all past dividend periods on the Treasury Preferred Stock are fully paid, we will not be permitted to declare or pay dividends on any common stock, any junior preferred shares or, generally, any preferred shares ranking pari passu with the Treasury Preferred Stock (other than in the case of pari passu preferred shares, dividends on a pro rata basis with the Treasury Preferred Stock), nor will we be permitted to repurchase or redeem any common stock or preferred shares other than the Treasury Preferred Stock.  We suspended payment of cash dividends on the Treasury Preferred Stock and common stock during 2009.  The unpaid dividends on the Treasury Preferred Stock willcontinue to accrue and cumulate until paid in full.  Because we have not paid dividends on the Treasury Preferred Stock for six consecutive quarters, the Treasury Department has the right to appoint two new members to our Board of Directors.  To date, the Treasury Department has not exercised this right. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Unless the Treasury Preferred Stock has been transferred to unaffiliated third parties or redeemed in whole, until February 27, 2012, the Treasury Department’s approval is required for any increase in common stock dividends or any share repurchases other than repurchases of the Treasury Preferred Stock, repurchases of junior preferred shares or common stock in connection with the administration of any employee benefit plan in the ordinary course of business and consistent with past practice and purchases under certain other limited circumstances specified in the Securities Purchase Agreement. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We must also comply with the executive compensation and corporate governance standards imposed by the American Recovery & Reinvestment Act of 2009, or ARRA, for so long as the Treasury Department holds any securities acquired from us pursuant to the Securities Purchase Agreement or upon exercise of the Warrant, excluding any period during which the Treasury Department holds only the Warrant, or the Covered Period. The ARRA executive compensation standards apply to our Senior Executive Officers (as defined in the ARRA) as well as certain other employees. The Treasury Department adopted an interim final rule effective June 15, 2009, which includes, without limitation, the following requirements: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Any incentive compensation for Senior Executive Officers must not encourage unnecessary and excessive risks that threaten the value of the financial institution; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Any bonus, retention award or incentive compensation paid (or under a legally binding obligation to be paid) to a Senior Executive Officer or any of our 20 next most highly-compensated employees based on statements of earnings, revenues, gains or other criteria that are later proven to be materially inaccurate must be subject to recovery or “clawback” by us; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We are prohibited from paying or accruing any bonus, retention award or incentive compensation with respect to our five most highly-compensated employees or such higher number as the Secretary of the Treasury Department may determine is in the public interest, except for grants of restricted stock that do not fully vest during the Covered Period and do not have a value which exceeds one-third of an employee’s total annual compensation; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Severance payments to the Senior Executive Officers and our five next most highly-compensated employees, generally referred to as “golden parachute” payments, are prohibited, except for payments for services performed or benefits accrued; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Compensation plans that encourage manipulation of reported earnings are prohibited; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | The Treasury Department may retroactively review bonuses, retention awards and other compensation previously paid to a Senior Executive Officer or any of our 20 next most highly-compensated employees that the Treasury Department finds to be inconsistent with the purposes of the Capital Purchase Program or otherwise contrary to the public interest; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our Board of Directors had to establish a company-wide policy regarding excessive or luxury expenditures; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Our proxy statements for annual shareholder meetings must permit a non-binding “say on pay” shareholder vote on the compensation of executives; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Compensation in excess of $500,000 for each Senior Executive Officer must not be deducted for federal income tax purposes; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | We must comply with the executive compensation reporting and recordkeeping requirements established by the Treasury Department. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

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| NAME               |   | AGE    |   | OFFICE AND BUSINESS EXPERIENCE                                                                                                                                                                                                                                                                                                                               |
|--------------------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |   |   |   |                                                                                                                                                                                                                                                                                                                                                         |
| Michael J. Alley   |   | 55     |   | Chairman of the Board, President, and Chief Executive Officer of the Company (May 2009 to present); Chairman of the Board, Patriot Investments LLC (June 2002 to present).                                                                                                                                                                                   |
|               |   |   |   |                                                                                                                                                                                                                                                                                                                                                         |
| Michael B. Carroll |   | 49     |   | Executive Vice President and Chief Financial Officer, (December 2009 to present), Executive Vice President and Controller of the Company (December 2008 to December 2009); Senior Vice President and Controller of the Company (December 2005 to December 2008); Senior Vice President and Risk Manager of the Company (May 2002 to December 2005).     |
| Roger M. Duncan    |   | 57     |   | Executive Vice President, Integra Bank, Retail Manager and Community Markets Manager; President of Evansville Region (July 2008 to present); Executive Vice President, Integra Bank, President of Evansville Region and Community Banking Division (October 2006 to July 2008); Market Executive, Community Banking Division (January 2000 to October 2006). |
|               |   |   |   |                                                                                                                                                                                                                                                                                                                                                         |
| John W. Key        |   | 51     |   | Executive Vice President, Chief Credit and Risk Officer (December 2009 to present); Executive Vice President of Corporate Banking (April 2007 to December 2009); South Central Region President, Old National Bank (January 2004 to April 2007).                                                                                                             |

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|         |   |    |   | Range of Stock Price |   |   | Dividends |   |
|--------------|--------|---------|--------|-------------------------------------|--------|--------|-----------|--------|
|    |   | Quarter |   | High                                |   |   | Low       |   |   | Declared |   |
| 2010         |   | 1st     |   | $                                   | 1.25   |   |      | $      | 0.55 |   |   |   | 0.00 |   |
|         |   | 2nd     |   |                                | 2.00   |   |      |   | 0.62 |   |   |   | 0.00 |   |
|         |   | 3rd     |   |                                | 1.00   |   |      |   | 0.62 |   |   |   | 0.00 |   |
|         |   | 4th     |   |                                | 0.87   |   |      |   | 0.50 |   |   |   | 0.00 |   |
|         |   |    |   |                                |   |   |      |   |   |   |   |   |   |   |
| 2009         |   | 1st     |   | $                                   | 2.90   |   |      | $      | 0.75 |   |   |   | 0.01 |   |
|         |   | 2nd     |   |                                | 2.65   |   |      |   | 0.97 |   |   |   | 0.01 |   |
|         |   | 3rd     |   |                                | 1.90   |   |      |   | 0.97 |   |   |   | 0.00 |   |
|         |   | 4th     |   |                                | 1.40   |   |      |   | 0.56 |   |   |   | 0.00 |   |

|                         |   |                                   |   |    |                          |   | Number of securities    |
|------------------------------|--------|----------------------------------------|--------|---------|-------------------------------|--------|-----------------------------------|
|                    |   |                              |   |    |                     |   | remaining available for |
|                    |   |                              |   |    |                     |   | future issuance under   |
|                    |   | Number of securities to |   |    | Weighted-average              |   | equity compensation          |
|                    |   | be issued upon exercise |   |    | exercise price of   |   | plans (excluding             |
|                    |   | of outstanding options,      |   |    | outstanding options,     |   | securities reflected in |
|                    |   | warrants and rights          |   |    | warrants and rights |   | column A)                    |
| Plan Category           |   | (A)                                    |   |    | (B)                           |   | (C)                               |
|                    |   |                                   |   |    |                          |   |                              |
| Equity compensation plans    |   |                                   |   |    |                          |   |                              |
| approved by security holders |   | 375,993                                |   | $  | 20.57                         |   | 434,940                           |

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|   | · | We completed the transition to new executive leadership that was clearly focused throughout 2010 on the execution of strategies to position us for long term success and a more disciplined focus on community banking within a narrower geographic footprint; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We completed five multi-branch and loan sale transactions, which generated deposit premiums of $15,612, after consideration of a write-off of $2,959 of core deposit intangible assets, as well as a net gain on the loans sold in those transactions of $11,742.  These transactions helped offset a portion of the provision for loan losses of $129,571 and loan collection and other real estate owned expenses of $13,921; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We experienced a decline in total non-performing assets from December 31, 2009 to $246,582 – the first decline reported since 2006.  This included a $17,865, or 10.6% reduction in non-performing loans from December 31, 2009; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We continued to reduce our concentration in CRE loans, including construction and land development loans, which declined $352,662, or 36.5%, from December 31, 2009.  This included a reduction in commercial real estate loan balances in Chicago of $63,827 to $139,044, as well as a reduction of CRE loans made in our previously owned LPOs of $252,923 to $425,757; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We executed our second profit improvement initiative in two years, which resulted in a significant reduction in non-interest expenses to better match our lower core earning capacity; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We closed our remaining CRE LPOs in Cleveland and Columbus, Ohio and Covington, Kentucky; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | We continued to execute efforts to retain and grow deposits, and added several new accounts, while experiencing only minimal loss of accounts related to customers’ concerns about our financial condition; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We completed implementation of Regulation E and were successful in minimizing its potential impact to our fee income by communicating with customers and educating them on its potential impact. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Pursue all available strategies to recapitalize the Bank to the levels required by the Capital Directive; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Continue to reduce our concentration in CRE credit exposure by obtaining paydowns and payoffs; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | Continue to reduce non-performing assets and our overall credit exposure; and |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Market our services to community banking customers in our core market area that we serve and make continual adjustments to increase profitability. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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| Year Ended December 31,                         |   | 2010     |         |   | 2009            |   |
|----------------------------------------------------------------|--------|----------|--------------|--------|-----------------|--------|
|                                                      |   | Average  |         |   | Interest        |   |   | Yield/ |   |   | Average |   |   | Interest |   |   | Yield/ |   |
|                                                           |   | Balances |         |   | & Fees |   |   | Cost |   |   | Balances |   |   | & Fees |   |   | Cost |   |
| EARNING ASSETS:                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits in banks                             |   | $        | 51,617       |   |            | $      | 1,249 |   |   |   | 2.42 | % |   | $ | 24,497 |   |   | $ | 745 |   |   |   | 3.04 | % |
| Loans held for sale                                            |   |     | 2,788        |   |            |   | 123 |   |   |   | 4.41 | % |   |   | 14,189 |   |   |   | 516 |   |   |   | 3.64 | % |
| Securities:                                                    |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                        |   |     | 425,625      |   |            |   | 13,678 |   |   |   | 3.21 | % |   |   | 395,970 |   |   |   | 17,179 |   |   |   | 4.34 | % |
| Tax-exempt                                                     |   |     | 17,607       |   |            |   | 1,282 |   |   |   | 7.28 | % |   |   | 58,699 |   |   |   | 4,088 |   |   |   | 6.96 | % |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities                                               |   |     | 443,232      |   |            |   | 14,960 |   |   |   | 3.38 | % |   |   | 454,669 |   |   |   | 21,267 |   |   |   | 4.68 | % |
| Regulatory Stock                                               |   |     | 26,157       |   |            |   | 717 |   |   |   | 2.74 | % |   |   | 29,138 |   |   |   | 1,184 |   |   |   | 4.06 | % |
| Loans                                                          |   |     | 1,777,756    |   |            |   | 75,551 |   |   |   | 4.25 | % |   |   | 2,338,918 |   |   |   | 99,600 |   |   |   | 4.26 | % |
| Total earning assets                                           |   |     | 2,301,550    |   |            | $      | 92,600 |   |   |   | 4.02 | % |   |   | 2,861,411 |   |   | $ | 123,312 |   |   |   | 4.31 | % |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value adjustment on securities available for sale         |   |     | 5            |   |            |   |   |   |   |   |   |   |   |   | (5,476 | ) |   |   |   |   |   |   |   |   |
| Allowance for loan loss                                        |   |     | (99,101      | )      |            |   |   |   |   |   |   |   |   |   | (77,905 | ) |   |   |   |   |   |   |   |   |
| Other non-earning assets                                       |   |     | 649,649      |   |            |   |    |   |   |   |    |   |   |   | 590,629 |   |   |   |    |   |   |   |    |   |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                   |   | $        | 2,852,103    |   |            |   |    |   |   |   |    |   |   | $ | 3,368,659 |   |   |   |    |   |   |   |    |   |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST-BEARING LIABILITIES:                                  |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                       |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and interest-bearing demand                            |   | $        | 665,560      |   |            | $      | 3,339 |   |   |   | 0.50 | % |   | $ | 720,073 |   |   | $ | 6,034 |   |   |   | 0.84 | % |
| Money market accounts                                          |   |     | 245,666      |   |            |   | 2,318 |   |   |   | 0.94 | % |   |   | 311,042 |   |   |   | 4,077 |   |   |   | 1.31 | % |
| Certificates of deposit and other time                         |   |     | 1,186,016    |   |            |   | 25,203 |   |   |   | 2.13 | % |   |   | 1,189,550 |   |   |   | 33,110 |   |   |   | 2.78 | % |
| Total interest-bearing deposits                                |   |     | 2,097,242    |   |            |   | 30,860 |   |   |   | 1.47 | % |   |   | 2,220,665 |   |   |   | 43,221 |   |   |   | 1.95 | % |
| Short-term borrowings                                          |   |     | 59,685       |   |            |   | 194 |   |   |   | 0.33 | % |   |   | 223,151 |   |   |   | 1,682 |   |   |   | 0.75 | % |
| Long-term borrowings                                           |   |     | 351,132      |   |            |   | 11,335 |   |   |   | 3.23 | % |   |   | 367,695 |   |   |   | 10,527 |   |   |   | 2.86 | % |
| Total interest-bearing liabilities                             |   |     | 2,508,059    |   |            | $      | 42,389 |   |   |   | 1.69 | % |   |   | 2,811,511 |   |   | $ | 55,430 |   |   |   | 1.97 | % |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits                                  |   |     | 253,155      |   |            |   |   |   |   |   |   |   |   |   | 292,859 |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities and shareholders' equity |   |     | 90,889       |   |            |   |    |   |   |   |    |   |   |   | 264,289 |   |   |   |    |   |   |   |    |   |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                     |   | $        | 2,852,103    |   |            |   |   |   |   |   |   |   |   | $ | 3,368,659 |   |   |   |   |   |   |   |   |   |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income/earning assets                                 |   |     |         |   |            | $      | 92,600 |   |   |   | 4.02 | % |   |   |   |   |   | $ | 123,312 |   |   |   | 4.31 | % |
| Interest expense/earning assets                                |   |     |    |   |            |   | 42,389 |   |   |   | 1.84 | % |   |   |    |   |   |   | 55,430 |   |   |   | 1.94 | % |
|                                                           |   |     |         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income/earning assets                             |   |     |    |   |            | $      | 50,211 |   |   |   | 2.18 | % |   |   |    |   |   | $ | 67,882 |   |   |   | 2.37 | % |

| Note: | Tax exempt income presented on a tax equivalent basis based on a 35% federal tax rate.Loans include loan fees of $3,933 and $3,863 for 2010 and 2009, respectively, and nonaccrual loans.Securities yields are calculated on an amortized cost basis.Federal tax equivalent adjustments on securities are $448 and $1,431 for 2010 and 2009, respectively.Federal tax equivalent adjustments on loans are $189 and $415 for 2010 and 2009, respectively. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                         |   | 2010 Compared to 2009 |    |
|------------------------------|--------|--------------------------------------|---------|
|                    |   | Change Due to              |    |   |   |   |
| Increase (decrease)     |   | a Change in                |    |   |   |   |
|                    |   |                                 |    |   |   |   |   | Total |   |
| Interest income         |   | Volume                               |    |   | Rate |   |   | Change |   |
|                    |   |                                 |    |   |   |   |   |   |   |
| Loans                        |   | $                                    | (23,816 | ) |   | $ | (233 | ) |   | $ | (24,049 | ) |
| Securities                   |   |                                 | (523    | ) |   |   | (5,783 | ) |   |   | (6,306 | ) |
| Regulatory Stock             |   |                                 | (112    | ) |   |   | (355 | ) |   |   | (467 | ) |
| Loans held for sale          |   |                                 | (482    | ) |   |   | 88 |   |   |   | (394 | ) |
| Other short-term investments |   |                                 | 682     |   |   |   | (178 | ) |   |   | 504 |   |
|                         |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Total interest income        |   |                                 | (24,251 | ) |   |   | (6,461 | ) |   |   | (30,712 | ) |
|                         |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Interest expense             |   |                                 |    |   |   |   |   |   |   |   |   |   |
|                         |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Deposits                     |   |                                 | (2,277  | ) |   |   | (10,084 | ) |   |   | (12,361 | ) |
| Short-term borrowings        |   |                                 | (843    | ) |   |   | (645 | ) |   |   | (1,488 | ) |
| Long-term borrowings         |   |                                 | (494    | ) |   |   | 1,302 |   |   |   | 808 |   |
|                         |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Total interest expense       |   |                                 | (3,614  | ) |   |   | (9,427 | ) |   |   | (13,041 | ) |
|                         |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Net interest income          |   | $                                    | (20,637 | ) |   | $ | 2,966 |   |   | $ | (17,671 | ) |

|   | · | Average earning assets decreased $559,861, or 19.6%, primarily due to the branch divestitures and loan sales occurring during 2010 and the full year effect of the sales occurring late in the third and fourth quarters of 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The average yield on loans remained basically flat compared to 2009.  Approximately 32% of our variable rate loans are tied to prime, 57% to a LIBOR index and 11% to other floating rate indexes.  During 2010, the prime rate remained the same, while one-month and three-month LIBOR rates increased 3 and 5 basis points, respectively.  The impact of non-accrual loans on the net interest margin was 57 basis points, or approximately 63 cents of earnings per share.  Commercial loan average balances represented 58.3% of total earning assets for 2010, down from 61.4% for 2009.  We are asset sensitive, meaning that a change in prevailing interest rates impacts our assets more quickly than our liabilities. If rates were to rise, our asset yields shouldincrease faster than the cost of the liabilities funding those assets, causing our net interest margin to increase. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | · | Non-interest bearing deposit average balances decreased $39,704, while the average balances of savings and interest-bearing demand deposits, which have an average cost of 50 basis points, also decreased $54,513.  Average money market accounts declined by $65,376.  The majority of the declines are due to the branch divestitures in 2010 and late 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | · | The average yield on total securities declined 130 basis points from 2009 to 2010.  This decrease in yield resulted primarily from a shift in the mix of the portfolio from higher rate municipal and FNMA and FHLMC securities which carry a higher risk based capital weighting to lower yielding, zero risk weighted GNMA and treasury securities. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The higher level of liquidity and increased cash position that we elected to maintain due to our recent financial performance included an increase in average cash balances of $206,407.  Earnings on that cash were less than the costs of the related funding resulting in a reduction in net interest income. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The average balance of interest-bearing liabilities decreased $303,452 compared to 2009.  A decrease in short-term borrowings consists of a $87,115 decrease in Term Auction Facility borrowings from the Federal Reserve, a decrease in Federal Home Loan Bank advances of $60,356, and a decrease in repurchase agreements of $15,250.  These decreases were slightly offset by an increase of $12,192 in borrowings under the FDIC’s Temporary Loan Guaranty Program.  The average rate paid on interest-bearing liabilities was 1.69% for 2010, a 28 basis point decline from 2009. Short-term borrowing rates declined 42 basis points as maturing FHLB advances were not renewed.  Long-term borrowings increased by 37 basis points as $80,000 in variable rate structuredrepurchase agreements converted to fixed rate debt during 2009 and 2010 at an average rate of 4.60%. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Premiums received from the assumption of deposits in the sales of 17 branch locations in 2010 totaled $15,612, after giving effect to a write-off of $2,959 of core deposit intangible assets.   This compares to the sale of 10 branch locations in 2009, which included premiums of $7,812.  Deposit service charges declined by $4,735, primarily, due to the sale of the deposit accounts. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The sale of the branch loans and other loans sold in 2010 branch divestitures resulted in an $11,742 gain. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | Net securities gains of $4,701 included other-than-temporary impairment charges of $1,102 on two securities.  In 2009, we had gains on securities sales of $8,060 and OTTI of $21,484.  The “Securities Available for Sale and Trading Securities” section of Management Discussion and Analysis, as well as Note 5 of the Notes to the Consolidated Financial Statements provides additional information on the other-than-temporary impairment. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our Treasury Warrant was reflected as a liability at March 31, 2009, because it was not fully exercisable at the time of issuance.  In 2009, a $6,145 non-tax deductible fair value adjustment reflected the change in value of the Treasury Warrant from March 31, 2009, through the date it was reclassified to equity. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Bank owned life insurance declined $818, due to our decision to sell or surrender the majority of the policies in 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | Personnel expense declined $7,420, or 17.6% during 2010.  The decrease included declines in salaries of $7,940, or 21.9%, offset slightly by an increase in post retirement insurance of $1,574.  The decrease in salaries was mainly due to the sale of seventeen branches throughout 2010, as well as a reduction in workforce as part of our profit improvement program.  Post retirement insurance increased due to the sale or surrender of the BOLI policies in 2009, in which the liability from the related compensation cost of the split dollar policies was reversed through post retirement insurance.  At December 31, 2010, we had 517 full-time equivalent employees or FTEs, compared to 736 FTEs at December 31, 2009. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We took a $1,639 charge in 2009 as we wrote down three properties, that we intended to sell, to their fair value. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | Occupancy and communication and transportation expenses decreased by $1,602 and $863, respectively in 2010, due to the branch divestitures and the closing of loan production offices during 2010 and late 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Debt prepayment penalties decreased $1,538 due to the penalties incurred in 2009 when we repaid a $20,000 structured repurchase agreement prior to maturity. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Loan and OREO expenses increased by $2,918, or 26.5% in 2010.  This increase is attributed to higher levels of real estate owned and related expenses, expenses incurred in connection with loan workout and collection activities and loan portfolio management expenses, such as the cost of obtaining new appraisals on real estate securing some of our commercial real estate loans.  The increase in writedowns on OREO properties in 2010 totaled $1,489. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Professional fees increased $4,179, primarily due to legal fees of $1,752 and investment banking fees of $2,765 for the branch sales completed during 2010. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FDIC insurance premiums increased by $1,597, or 20.8% in 2010. |
|--------|--------|----------------------------------------------------------------|

----

----

|                                             |   | 2010             |    |
|--------------------------------------------------|--------|------------------|---------|
| Three months ended                               |   | December 31 |    |   | September 30 |   |   | June 30 |   |   | March 31 |   |
|                                             |   |             |    |   |   |   |   |   |   |   |   |   |
| Interest income                                  |   | $                | 18,920  |   |   | $ | 22,184 |   |   | $ | 25,231 |   |   | $ | 25,628 |   |
| Interest expense                                 |   |             | 9,578   |   |   |   | 10,723 |   |   |   | 11,320 |   |   |   | 10,768 |   |
| Net interest income                              |   |             | 9,342   |   |   |   | 11,461 |   |   |   | 13,911 |   |   |   | 14,860 |   |
| Provision for loan losses                        |   |             | 36,351  |   |   |   | 26,240 |   |   |   | 19,280 |   |   |   | 52,700 |   |
| Non-interest income                              |   |             | 8,014   |   |   |   | 27,379 |   |   |   | 18,467 |   |   |   | 7,590 |   |
| Non-interest expense                             |   |             | 24,067  |   |   |   | 28,796 |   |   |   | 22,486 |   |   |   | 22,493 |   |
| Income (Loss) before income taxes                |   |             | (43,062 | ) |   |   | (16,196 | ) |   |   | (9,388 | ) |   |   | (52,743 | ) |
| Income taxes (benefits)                          |   |             | (1,344  | ) |   |   | (42 | ) |   |   | (316 | ) |   |   | 8 |   |
| NET INCOME (LOSS)                                |   |             | (41,718 | ) |   |   | (16,154 | ) |   |   | (9,072 | ) |   |   | (52,751 | ) |
| Preferred stock dividends and discount accretion |   |             | 1,133   |   |   |   | 1,133 |   |   |   | 1,133 |   |   |   | 1,128 |   |
| NET INCOME (LOSS) AVAILABLE                      |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TO COMMON SHAREHOLDERS                           |   | $                | (42,851 | ) |   | $ | (17,287 | ) |   | $ | (10,205 | ) |   | $ | (53,879 | ) |
|                                             |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (Loss) per share:                       |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                            |   | $                | (2.07   | ) |   | $ | (0.84 | ) |   | $ | (0.49 | ) |   | $ | (2.61 | ) |
| Diluted                                          |   |             | (2.07   | ) |   |   | (0.84 | ) |   |   | (0.49 | ) |   | $ | (2.61 | ) |
|                                             |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average shares:                                  |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                            |   |             | 20,690  |   |   |   | 20,686 |   |   |   | 20,664 |   |   |   | 20,666 |   |
| Diluted                                          |   |             | 20,690  |   |   |   | 20,686 |   |   |   | 20,664 |   |   |   | 20,666 |   |

|                                             |   | 2009             |    |
|--------------------------------------------------|--------|------------------|---------|
| Three months ended                               |   | December 31 |    |   | September 30 |   |   | June 30 |   |   | March 31 |   |
|                                             |   |             |    |   |   |   |   |   |   |   |   |   |
| Interest income                                  |   | $                | 27,322  |   |   | $ | 29,202 |   |   | $ | 31,799 |   |   | $ | 33,143 |   |
| Interest expense                                 |   |             | 11,593  |   |   |   | 13,152 |   |   |   | 15,025 |   |   |   | 15,660 |   |
| Net interest income                              |   |             | 15,729  |   |   |   | 16,050 |   |   |   | 16,774 |   |   |   | 17,483 |   |
| Provision for loan losses                        |   |             | 30,525  |   |   |   | 18,913 |   |   |   | 32,536 |   |   |   | 31,394 |   |
| Non-interest income                              |   |             | 13,833  |   |   |   | 14,827 |   |   |   | (10,984 | ) |   |   | 5,492 |   |
| Non-interest expense                             |   |             | 23,158  |   |   |   | 24,369 |   |   |   | 29,169 |   |   |   | 29,473 |   |
| Income (Loss) before income taxes                |   |             | (24,121 | ) |   |   | (12,405 | ) |   |   | (55,915 | ) |   |   | (37,892 | ) |
| Income taxes (benefits)                          |   |             | 70,802  |   |   |   | 7,330 |   |   |   | (7,451 | ) |   |   | (9,831 | ) |
| NET INCOME (LOSS)                                |   |             | (94,923 | ) |   |   | (19,735 | ) |   |   | (48,464 | ) |   |   | (28,061 | ) |
| Preferred stock dividends and discount accretion |   |             | 1,129   |   |   |   | 1,117 |   |   |   | 1,139 |   |   |   | 413 |   |
| NET INCOME (LOSS) AVAILABLE                      |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TO COMMON SHAREHOLDERS                           |   | $                | (96,052 | ) |   | $ | (20,852 | ) |   | $ | (49,603 | ) |   | $ | (28,474 | ) |
|                                             |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (Loss) per share:                       |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                            |   | $                | (4.64   | ) |   | $ | (1.01 | ) |   | $ | (2.39 | ) |   | $ | (1.37 | ) |
| Diluted                                          |   |             | (4.64   | ) |   |   | (1.01 | ) |   |   | (2.39 | ) |   |   | (1.37 | ) |
|                                             |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average shares:                                  |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                            |   |             | 20,685  |   |   |   | 20,707 |   |   |   | 20,715 |   |   |   | 20,732 |   |
| Diluted                                          |   |             | 20,685  |   |   |   | 20,707 |   |   |   | 20,715 |   |   |   | 20,732 |   |

----

----

| SECURITIES AVAILABLE FOR SALE |   | December 31, |    |
|----------------------------------------------|--------|-------------------|---------|
| (At Fair Value)                    |   | 2010              |    |   | 2009 |   |
| U.S. Treasuries                              |   | $                 | 18,739  |   |   | $ | 8,833 |   |
| U.S. Government agencies                     |   |              | 106     |   |   |   | 279 |   |
| Collateralized Mortgage Obligations:         |   |              |    |   |   |   |   |   |
| Agency                                       |   |              | 250,057 |   |   |   | 118,431 |   |
| Private Label                                |   |              | 16,155  |   |   |   | 23,229 |   |
| Mortgage-backed securities                   |   |              | 202,752 |   |   |   | 167,232 |   |
| Trust Preferred                              |   |              | 10,749  |   |   |   | 10,038 |   |
| State & political subdivisions           |   |              | 21,679  |   |   |   | 25,040 |   |
| Other securities                             |   |              | 8,667   |   |   |   | 8,637 |   |
| Total                                        |   | $                 | 528,904 |   |   | $ | 361,719 |   |

| Available for Sale Securities |   | Fair Value |    |
|-------------------------------|--------|------------|---------|
|                          |   |       |    |
| Due in one year or less       |   | $          | 1,965   |   |
| Due from one to five years    |   |       | 224,029 |   |
| Due from five to ten years    |   |       | 180,643 |   |
| Due after ten years           |   |       | 122,267 |   |
|                          |   | $          | 528,904 |   |

| SECURITIES HELD FOR TRADING |   |                        |   |   |                        |   |
|--------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
| (At Fair Value)                  |   | December 31, 2010 |   |   | December 31, 2009 |   |
| Trust Preferred                            |   | $                           | 329    |   |                        | $      | 36 |   |
| Total                                      |   | $                           | 329    |   |                        | $      | 36 |   |

----

----

----

|                                                                             |   | 2010   |      |   | 2009   |   |      | 2008   |   |   | 2007      |   |   | 2006   |      |
|---------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Commercial, industrial and agricultural loans                                         |   | $      | 401,936   |   |   | $      | 602,606   |   |   | $      | 748,446   |   |   | $      | 689,504   |   |   | $ | 568,841 |   |
| Economic development loans and other obligations of state and political subdivisions  |   |   | 8,992     |   |   |   | 14,773    |   |   |   | 24,502    |   |   |   | 7,227     |   |   |   | 7,179 |   |
| Lease financing                                                                       |   |   | 424       |   |   |   | 5,579     |   |   |   | 5,397     |   |   |   | 5,291     |   |   |   | 5,495 |   |
| Commercial mortgages                                                                  |   |   | 450,292   |   |   |   | 583,123   |   |   |   | 436,336   |   |   |   | 298,151   |   |   |   | 180,249 |   |
| Construction and development                                                          |   |   | 162,237   |   |   |   | 382,068   |   |   |   | 641,460   |   |   |   | 609,858   |   |   |   | 260,314 |   |
| Residential mortgages                                                                 |   |   | 143,243   |   |   |   | 232,799   |   |   |   | 309,397   |   |   |   | 380,429   |   |   |   | 436,309 |   |
| Home equity lines of credit                                                           |   |   | 118,406   |   |   |   | 162,934   |   |   |   | 171,241   |   |   |   | 145,403   |   |   |   | 132,704 |   |
| Consumer loans                                                                        |   |   | 63,974    |   |   |   | 126,466   |   |   |   | 153,464   |   |   |   | 175,516   |   |   |   | 199,887 |   |
| Total loans                                                                           |   |   | 1,349,504 |   |   |   | 2,110,348 |   |   |   | 2,490,243 |   |   |   | 2,311,379 |   |   |   | 1,790,978 |   |
| Less:  unearned income                                                      |   |   | -         |   |   |   | -         |   |   |   | -         |   |   |   | 1         |   |   |   | 2 |   |
| Loans, net of unearned income                                                         |   |   | 1,349,504 |   |   |   | 2,110,348 |   |   |   | 2,490,243 |   |   |   | 2,311,378 |   |   |   | 1,790,976 |   |
|                                                                                  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Less:  Loans held for sale in probable branch divestitures                  |   |   | -         |   |   |   | 90,616    |   |   |   | -         |   |   |   | -         |   |   |   | - |   |
|                                                                                  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Loans, net of unearned income and loans held for sale in probable branch divestitures |   | $      | 1,349,504 |   |   | $      | 2,019,732 |   |   | $      | 2,490,243 |   |   | $      | 2,311,378 |   |   | $ | 1,790,976 |   |

| LOAN MATURITIES AND RATE SENSITIVITIES AT DECEMBER 31, 2010 |   |        |    |   |                   |   |    |
|-----------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|------------------------|--------|---------|
| Total Loans                                                                                    |   |        |    |   | After 1 Year |   |    |   |   |   |   |   |
|                                                                                           |   | Within      |    |   | But Within        |   |    | Over |   |   |   |   |
| Rate sensitivities:                                                                            |   | 1 Year |    |   | 5 Years           |   |    | 5 Years |   |   | Total |   |
|                                                                                           |   |        |    |   |                   |   |    |   |   |   |   |   |
| Fixed rate loans                                                                                    |   | $           | 180,557 |   |                   | $      | 348,692 |   |   | $ | 102,881 |   |   | $ | 632,130 |   |
| Variable rate loans                                                                                 |   |        | 475,418 |   |                   |   | 44,291  |   |   |   | 723 |   |   |   | 520,432 |   |
|                                                                                                |   |        |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Subtotal                                                                                            |   | $           | 655,975 |   |                   | $      | 392,983 |   |   | $ | 103,604 |   |   |   | 1,152,562 |   |
|                                                                                                |   |        |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Percent of total                                                                                    |   |        | 56.91   | %      |                   |   | 34.10   | % |   |   | 8.99 | % |   |   |   |   |
|                                                                                                |   |        |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Nonaccrual loans                                                                                    |   |        |    |   |                   |   |    |   |   |   |   |   |   |   | 196,942 |   |
|                                                                                                |   |        |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Total loans                                                                                         |   |        |    |   |                   |   |    |   |   |   |   |   |   | $ | 1,349,504 |   |

----

| LOAN MATURITIES AND RATE SENSITIVITIES AT DECEMBER 31, 2010                                                                          |   |   |    |   |                   |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|
| Commercial, Industrial, Agricultural, Economic Development, Obligations of State and Political Division, Construction |   |
| and Development Loans                                                                                                                                              |   |   |    |   |                   |   |    |   |   |   |   |   |
|                                                                                                                                                                         |   |   |    |   |                   |   |    |   |   |   |   |   |
|                                                                                                                                                                         |   |   |    |   | After 1 Year |   |    |   |   |   |   |   |
|                                                                                                                                                                         |   | Within |    |   | But Within             |   |    | Over |   |   |   |   |
|                                                                                                                                                                         |   | 1 Year |    |   | 5 Years                |   |    | 5 Years |   |   | Total |   |
| Commercial, industrial and agriculture loans                                                                                                                                 |   | $      | 143,907 |   |                   | $      | 223,399 |   |   | $ | 10,290 |   |   | $ | 377,596 |   |
| Economic development loans and other obligations of state and political subdivisions                                                                                         |   |   | 1,074   |   |                   |   | 7,414   |   |   |   | 504 |   |   |   | 8,992 |   |
| Construction and development                                                                                                                                                 |   |   | 66,125  |   |                   |   | 9,316   |   |   |   | - |   |   |   | 75,441 |   |
| Total                                                                                                                                                                        |   | $      | 211,106 |   |                   | $      | 240,129 |   |   | $ | 10,794 |   |   | $ | 462,029 |   |
|                                                                                                                                                                         |   |   |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Fixed rate                                                                                                                                                                   |   | $      | 87,544  |   |                   | $      | 222,667 |   |   | $ | 10,567 |   |   | $ | 320,778 |   |
| Variable rate                                                                                                                                                                |   |   | 123,562 |   |                   |   | 17,463  |   |   |   | 226 |   |   |   | 141,251 |   |
|                                                                                                                                                                         |   |   |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Subtotal                                                                                                                                                                     |   | $      | 211,106 |   |                   | $      | 240,130 |   |   | $ | 10,793 |   |   |   | 462,029 |   |
|                                                                                                                                                                         |   |   |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Percent of total                                                                                                                                                             |   |   | 45.69   | %      |                   |   | 51.97   | % |   |   | 2.34 | % |   |   |   |   |
|                                                                                                                                                                         |   |   |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Nonaccrual loans                                                                                                                                                             |   |   |    |   |                   |   |    |   |   |   |   |   |   |   | 111,136 |   |
|                                                                                                                                                                         |   |   |    |   |                   |   |    |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                        |   |   |    |   |                   |   |    |   |   |   |   |   |   | $ | 573,165 |   |

| NON-PERFORMING ASSETS AT YEAR END            |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |
|----------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|
|                                         |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |   | 2006   |   |
| Non-performing loans:                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |
|                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |
| Nonaccrual                                   |   | $      | 196,942 |   |   | $      | 210,753 |   |   | $      | 150,002 |   |   | $      | 18,549 |   |   | $ | 8,625 |   |
| 90 days past due and still accruing interest |   |   | 73      |   |   |   | 4,127   |   |   |   | 897     |   |   |   | 4,118  |   |   |   | 228 |   |
|                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total non-performing loans                   |   |   | 197,015 |   |   |   | 214,880 |   |   |   | 150,899 |   |   |   | 22,667 |   |   |   | 8,853 |   |
|                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Trust preferred held for trading             |   |   | 329     |   |   |   | 36      |   |   |   | -       |   |   |   | -      |   |   |   | - |   |
| Other real estate owned (OREO)               |   |   | 49,238  |   |   |   | 31,982  |   |   |   | 19,396  |   |   |   | 2,923  |   |   |   | 936 |   |
|                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total non-performing assets                  |   | $      | 246,582 |   |   | $      | 246,898 |   |   | $      | 170,295 |   |   | $      | 25,590 |   |   | $ | 9,789 |   |

----

----

----

|   | · | We continued to obtain new appraisals on properties securing our CRE non-performing loans and used those appraisals to help determine any specific reserves within the allowance for loan losses.  As we receive lower appraised values on properties securing non-performing loans, we recognize charge-offs, and adjust specific reserves as appropriate. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We conducted an internal loan review on the remaining portion of performing CRE loans from our former CRE line of business.  Although we regularly review all relationships on an annual basis, this review included location visits as well as appointments with certain principals.  While the review was intended to identify relationships in need for elevated attention by our managed asset group, we believe it also confirmed the quality of the risk ratings assigned to the pass grade performing credits. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Bank contracted an outside consultant to perform a valuation on the remaining Chicago builder based portfolio.  We believe the findings validated our current exit strategy. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | We have consolidated both our Chicago based work out team and the former CRE team located in Greater Cincinnati into our managed asset group.  This enables us to realize greater levels of efficiency in assigned problem assets within our managed asset group. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We continue to offer modest discounts to reduce our exposure to certain CRE related assets. |
|--------|--------|---------------------------------------------------------------------------------------------|

| SUMMARY OF LOAN LOSS EXPERIENCE (ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES) |   |   |      |   |
|-----------------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                        |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   | 2010   |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Allowance for loan losses, January 1                                        |   | $      | 88,670    |   |   | $ | 64,437 |   |   | $ | 27,261 |   |   | $ | 21,155 |   |   | $ | 24,392 |   |
| Allowance associated with purchase acquisitions                             |   |   | -         |   |   |   | - |   |   |   | - |   |   |   | 5,982 |   |   |   | - |   |
| Loans charged off:                                                          |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, industrial and agriculture                                      |   |   | 51,320    |   |   |   | 41,211 |   |   |   | 8,338 |   |   |   | 1,244 |   |   |   | 21,509 |   |
| Commercial mortgages                                                        |   |   | 9,019     |   |   |   | 10,991 |   |   |   | 3,257 |   |   |   | 54 |   |   |   | 66 |   |
| Construction and development                                                |   |   | 47,540    |   |   |   | 30,774 |   |   |   | 12,368 |   |   |   | 200 |   |   |   | - |   |
| Residential mortgages                                                       |   |   | 1,808     |   |   |   | 2,483 |   |   |   | 1,485 |   |   |   | 797 |   |   |   | 704 |   |
| Home equity                                                                 |   |   | 946       |   |   |   | 1,378 |   |   |   | 352 |   |   |   | 246 |   |   |   | 397 |   |
| Consumer                                                                    |   |   | 2,728     |   |   |   | 4,615 |   |   |   | 4,412 |   |   |   | 2,900 |   |   |   | 2,665 |   |
| Leases                                                                      |   |   | 3,778     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                                                       |   |   | 117,139   |   |   |   | 91,452 |   |   |   | 30,212 |   |   |   | 5,441 |   |   |   | 25,341 |   |
| Recoveries on charged off loans:                                            |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, industrial and agriculture                                      |   |   | 1,019     |   |   |   | 551 |   |   |   | 280 |   |   |   | 315 |   |   |   | 633 |   |
| Commercial mortgages                                                        |   |   | 104       |   |   |   | 115 |   |   |   | 20 |   |   |   | 18 |   |   |   | 174 |   |
| Construction and development                                                |   |   | 199       |   |   |   | 83 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Residential mortgages                                                       |   |   | 396       |   |   |   | 351 |   |   |   | 184 |   |   |   | 154 |   |   |   | 171 |   |
| Home equity                                                                 |   |   | 132       |   |   |   | 137 |   |   |   | 11 |   |   |   | 105 |   |   |   | 41 |   |
| Consumer                                                                    |   |   | 919       |   |   |   | 1,080 |   |   |   | 1,109 |   |   |   | 780 |   |   |   | 791 |   |
| Total                                                                       |   |   | 2,769     |   |   |   | 2,317 |   |   |   | 1,604 |   |   |   | 1,372 |   |   |   | 1,810 |   |
| Net charge-offs                                                             |   |   | 114,370   |   |   |   | 89,135 |   |   |   | 28,608 |   |   |   | 4,069 |   |   |   | 23,531 |   |
| Provision for loan losses                                                   |   |   | 134,571   |   |   |   | 113,368 |   |   |   | 65,784 |   |   |   | 4,193 |   |   |   | 20,294 |   |
| Allowance related to divested loans sold                                    |   |   | (13,070   | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Allowance for loan losses, December 31                                      |   | $      | 95,801    |   |   | $ | 88,670 |   |   | $ | 64,437 |   |   | $ | 27,261 |   |   | $ | 21,155 |   |
|                                                                        |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans at year-end, net of unearned income                             |   | $      | 1,349,504 |   |   | $ | 2,110,348 |   |   | $ | 2,490,243 |   |   | $ | 2,311,378 |   |   | $ | 1,790,976 |   |
| Average loans                                                               |   |   | 1,777,756 |   |   |   | 2,338,919 |   |   |   | 2,407,677 |   |   |   | 2,128,551 |   |   |   | 1,782,918 |   |
| Total non-performing loans                                                  |   |   | 197,015   |   |   |   | 214,880 |   |   |   | 150,899 |   |   |   | 22,667 |   |   |   | 8,853 |   |
|                                                                        |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs to average loans                                            |   |   | 6.43      | %      |   |   | 3.81 | % |   |   | 1.19 | % |   |   | 0.19 | % |   |   | 1.32 | % |
| Provision for loan losses to average loans                                  |   |   | 7.57      |   |   |   | 4.85 |   |   |   | 2.73 |   |   |   | 0.20 |   |   |   | 1.14 |   |
| Allowance for loan losses to loans                                          |   |   | 7.10      |   |   |   | 4.20 |   |   |   | 2.59 |   |   |   | 1.18 |   |   |   | 1.18 |   |
| Allowance for loan losses to non-performing loans                           |   |   | 48.63     |   |   |   | 41.26 |   |   |   | 42.70 |   |   |   | 120.27 |   |   |   | 238.96 |   |

----

| TIME DEPOSITS OF $100 OR MORE AT DECEMBER 31, 2010 |   |
|----------------------------------------------------|--------|
| Maturing:                                          |   |   |   |
| 3 months or less                                   |   | $ | 97,137 |   |
| Over 3 to 6 months                                 |   |   | 86,691 |   |
| Over 6 to 12 months                                |   |   | 161,397 |   |
| Over 12 months                                     |   |   | 321,446 |   |
| Total                                              |   | $ | 666,671 |   |

----

----

----

----

|   | · | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/ Michael J. Alley        |   | /s/ Michael B. Carroll       |
|-----------------------------|--------|------------------------------|
| Chairman of the Board       |   | Executive Vice President and |
| and Chief Executive Officer |   | Chief Financial Officer      |

----

| /s/ Crowe Horwath LLP |
|-----------------------|

----

|                                                                  |   | December 31, |      |
|-----------------------------------------------------------------------|--------|-------------------|-----------|
|                                                                  |   | 2010              |      |   | 2009 |   |
| ASSETS                                                                |   |              |      |   |   |   |
| Cash and due from banks                                               |   | $                 | 430,253   |   |   | $ | 304,921 |   |
| Short-term investments                                                |   |              | 56,559    |   |   |   | 49,653 |   |
| Total cash and cash equivalents                                       |   |              | 486,812   |   |   |   | 354,574 |   |
| Loans held for sale (at lower of cost or fair value)                  |   |              | 1,899     |   |   |   | 93,572 |   |
| Securities available for sale                                         |   |              | 528,904   |   |   |   | 361,719 |   |
| Securities held for trading                                           |   |              | 329       |   |   |   | 36 |   |
| Regulatory stock                                                      |   |              | 22,172    |   |   |   | 29,124 |   |
| Loans, net of unearned income                                         |   |              | 1,349,504 |   |   |   | 2,019,732 |   |
| Less:  Allowance for loan losses                            |   |              | (95,801   | ) |   |   | (88,670 | ) |
| Net loans                                                             |   |              | 1,253,703 |   |   |   | 1,931,062 |   |
| Premises and equipment                                                |   |              | 34,019    |   |   |   | 37,814 |   |
| Premises and equipment held for sale                                  |   |              | 1,387     |   |   |   | 4,249 |   |
| Other real estate owned                                               |   |              | 49,238    |   |   |   | 31,982 |   |
| Other intangible assets                                               |   |              | 3,950     |   |   |   | 8,242 |   |
| Other assets                                                          |   |              | 38,372    |   |   |   | 69,567 |   |
| TOTAL ASSETS                                                          |   | $                 | 2,420,785 |   |   | $ | 2,921,941 |   |
|                                                                  |   |              |      |   |   |   |   |   |
| LIABILITIES                                                           |   |              |      |   |   |   |   |   |
| Deposits:                                                             |   |              |      |   |   |   |   |   |
| Non-interest-bearing demand                                           |   | $                 | 224,184   |   |   | $ | 263,530 |   |
| Non-interest-bearing held for sale                                    |   |              | -         |   |   |   | 7,319 |   |
| Interest-bearing                                                      |   |              | 1,765,695 |   |   |   | 2,004,369 |   |
| Interest-bearing held for sale                                        |   |              | -         |   |   |   | 89,888 |   |
| Total deposits                                                        |   |              | 1,989,879 |   |   |   | 2,365,106 |   |
| Short-term borrowings                                                 |   |              | 59,893    |   |   |   | 62,114 |   |
| Long-term borrowings                                                  |   |              | 347,847   |   |   |   | 361,071 |   |
| Other liabilities                                                     |   |              | 42,005    |   |   |   | 31,304 |   |
| TOTAL LIABILITIES                                                     |   |              | 2,439,624 |   |   |   | 2,819,595 |   |
|                                                                  |   |              |      |   |   |   |   |   |
| Commitments and contingent liabilities (Note 19)                      |   |              | -         |   |   |   | - |   |
|                                                                  |   |              |      |   |   |   |   |   |
| SHAREHOLDERS' EQUITY                                                  |   |              |      |   |   |   |   |   |
| Preferred stock - no par, $1,000 per share liquidation preference:    |   |              |      |   |   |   |   |   |
| Shares authorized: 1,000,000                                          |   |              |      |   |   |   |   |   |
| Shares outstanding: 83,586                                            |   |              | 82,359    |   |   |   | 82,011 |   |
| Common stock - $1.00 stated value:                                    |   |              |      |   |   |   |   |   |
| Shares authorized: 129,000,000                                        |   |              |      |   |   |   |   |   |
| Shares outstanding:  21,052,697 and 20,847,589 respectively |   |              | 21,053    |   |   |   | 20,848 |   |
| Additional paid-in capital                                            |   |              | 217,174   |   |   |   | 216,939 |   |
| Retained earnings                                                     |   |              | (334,593  | ) |   |   | (210,371 | ) |
| Accumulated other comprehensive income (loss)                         |   |              | (4,832    | ) |   |   | (7,081 | ) |
| TOTAL SHAREHOLDERS' EQUITY                                            |   |              | (18,839   | ) |   |   | 102,346 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                            |   | $                 | 2,420,785 |   |   | $ | 2,921,941 |   |

----

|                                                              |   | Year Ended December 31, |     |
|-------------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                              |   | 2010                                   |     |   | 2009 |   |
| INTEREST INCOME                                                   |   |                                   |     |   |   |   |
| Interest and fees on loans:                                       |   |                                   |     |   |   |   |
| Taxable                                                           |   | $                                      | 75,010   |   |   | $ | 98,414 |   |
| Tax-exempt                                                        |   |                                   | 352      |   |   |   | 771 |   |
| Interest and dividends on securities:                             |   |                                   |     |   |   |   |   |   |
| Taxable                                                           |   |                                   | 13,679   |   |   |   | 17,018 |   |
| Tax-exempt                                                        |   |                                   | 834      |   |   |   | 2,657 |   |
| Interest on securities held for trading                           |   |                                   | -        |   |   |   | 161 |   |
| Dividends on regulatory stock                                     |   |                                   | 717      |   |   |   | 1,184 |   |
| Interest on loans held for sale                                   |   |                                   | 122      |   |   |   | 516 |   |
| Interest on federal funds sold and other short-term investments   |   |                                   | 1,249    |   |   |   | 745 |   |
| Total interest income                                             |   |                                   | 91,963   |   |   |   | 121,466 |   |
|                                                              |   |                                   |     |   |   |   |   |   |
| INTEREST EXPENSE                                                  |   |                                   |     |   |   |   |   |   |
| Interest on deposits                                              |   |                                   | 30,860   |   |   |   | 43,221 |   |
| Interest on short-term borrowings                                 |   |                                   | 194      |   |   |   | 1,682 |   |
| Interest on long-term borrowings                                  |   |                                   | 11,335   |   |   |   | 10,527 |   |
| Total interest expense                                            |   |                                   | 42,389   |   |   |   | 55,430 |   |
|                                                              |   |                                   |     |   |   |   |   |   |
| NET INTEREST INCOME                                               |   |                                   | 49,574   |   |   |   | 66,036 |   |
| Provision for loan losses                                         |   |                                   | 134,571  |   |   |   | 113,368 |   |
| Net interest income after provision for loan losses               |   |                                   | (84,997  | ) |   |   | (47,332 | ) |
|                                                              |   |                                   |     |   |   |   |   |   |
| NON-INTEREST INCOME                                               |   |                                   |     |   |   |   |   |   |
| Service charges on deposit accounts                               |   |                                   | 15,144   |   |   |   | 19,879 |   |
| Other service charges and fees                                    |   |                                   | 3,923    |   |   |   | 4,137 |   |
| Debit card income-interchange                                     |   |                                   | 5,049    |   |   |   | 5,361 |   |
| Trust income                                                      |   |                                   | 1,905    |   |   |   | 2,102 |   |
| Net securities gains                                              |   |                                   | 5,803    |   |   |   | 8,060 |   |
| Net premiums on sales of deposits                                 |   |                                   | 15,612   |   |   |   | 7,812 |   |
| Other than temporary impairment loss:                             |   |                                   |     |   |   |   |   |   |
| Total impairment losses recognized on securities                  |   |                                   | (1,173   | ) |   |   | (22,634 | ) |
| Loss or reclassification recognized in other comprehensive income |   |                                   | (71      | ) |   |   | (1,150 | ) |
| Net impairment loss recognized in earnings                        |   |                                   | (1,102   | ) |   |   | (21,484 | ) |
| Warrant fair value adjustment                                     |   |                                   | -        |   |   |   | (6,145 | ) |
| Cash surrender value life insurance                               |   |                                   | 95       |   |   |   | 913 |   |
| Net gain on sale of divested loans                                |   |                                   | 11,742   |   |   |   | 727 |   |
| Other                                                             |   |                                   | 3,279    |   |   |   | 1,806 |   |
|  Total non-interest income                                   |   |                                   | 61,450   |   |   |   | 23,168 |   |
|                                                              |   |                                   |     |   |   |   |   |   |
| NON-INTEREST EXPENSE                                              |   |                                   |     |   |   |   |   |   |
| Salaries and employee benefits                                    |   |                                   | 34,814   |   |   |   | 42,234 |   |
| Occupancy                                                         |   |                                   | 7,897    |   |   |   | 9,499 |   |
| Equipment                                                         |   |                                   | 2,608    |   |   |   | 3,151 |   |
| Professional fees                                                 |   |                                   | 11,632   |   |   |   | 7,453 |   |
| Communication and transportation                                  |   |                                   | 3,483    |   |   |   | 4,346 |   |
| Processing                                                        |   |                                   | 2,174    |   |   |   | 2,781 |   |
| Software                                                          |   |                                   | 2,154    |   |   |   | 2,549 |   |
| Marketing                                                         |   |                                   | 853      |   |   |   | 1,432 |   |
| Loan collection and OREO expense                                  |   |                                   | 13,921   |   |   |   | 11,003 |   |
| FDIC assessment                                                   |   |                                   | 9,278    |   |   |   | 7,681 |   |
| Low income housing project losses                                 |   |                                   | 1,709    |   |   |   | 1,779 |   |
| Building impairment expense                                       |   |                                   | -        |   |   |   | 1,639 |   |
| Debt prepayment penalties                                         |   |                                   | -        |   |   |   | 1,538 |   |
| Amortization of intangible assets                                 |   |                                   | 1,333    |   |   |   | 1,686 |   |
| Other                                                             |   |                                   | 5,986    |   |   |   | 7,398 |   |
|  Total non-interest expense                                  |   |                                   | 97,842   |   |   |   | 106,169 |   |
| Income (Loss) before income taxes                                 |   |                                   | (121,389 | ) |   |   | (130,333 | ) |
| Income taxes (benefit)                                            |   |                                   | (1,694   | ) |   |   | 60,850 |   |
| NET INCOME (LOSS)                                                 |   | $                                      | (119,695 | ) |   | $ | (191,183 | ) |
| Preferred stock dividends and discount accretion                  |   |                                   | 4,527    |   |   |   | 3,798 |   |
| Net income (loss) available to common shareholders                |   | $                                      | (124,222 | ) |   | $ | (194,981 | ) |

----

|                                 |   | Year Ended December 31, |   |
|--------------------------------------|--------|----------------------------------------|--------|
|                            |   | 2010                                   |   |   | 2009 |   |
| Earnings (Loss) per share:           |   |                                   |   |   |   |   |
| Basic                                |   | $                                      | (6.01  | ) |   | $ | (9.42 | ) |
| Diluted                              |   |                                   | (6.01  | ) |   |   | (9.42 | ) |
|                                 |   |                                   |   |   |   |   |   |   |
| Weighted average shares outstanding: |   |                                   |   |   |   |   |   |   |
| Basic                                |   |                                   | 20,676 |   |   |   | 20,706 |   |
| Diluted                              |   |                                   | 20,676 |   |   |   | 20,706 |   |

----

|                                                                                                                        |   | Year Ended December 31, |     |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                                                                                        |   | 2010                                   |     |   | 2009 |   |
|                                                                                                                        |   |                                   |     |   |   |   |
| Net income (loss)                                                                                                           |   | $                                      | (119,695 | ) |   | $ | (191,183 | ) |
|                                                                                                                        |   |                                   |     |   |   |   |   |   |
| Other comprehensive income (loss), net of tax:                                                                              |   |                                   |     |   |   |   |   |   |
| Unrealized gain (loss) on securities:                                                                                       |   |                                   |     |   |   |   |   |   |
| Unrealized gain (loss) arising in period (net of tax of $2,968 and $(4,639), respectively)                                  |   |                                   | 4,992    |   |   |   | (7,634 | ) |
| Reclassification of amounts realized through impairment charges and sales (net of tax of $(1,752) and $5,075, respectively) |   |                                   | (2,948   | ) |   |   | 8,349 |   |
| Net unrealized gain (loss) on securities                                                                                    |   |                                   | 2,044    |   |   |   | 715 |   |
|                                                                                                                        |   |                                   |     |   |   |   |   |   |
| Change in net pension plan liability                                                                                        |   |                                   |     |   |   |   |   |   |
| (net of tax of $581 and $(785), respectively)                                                                               |   |                                   | 978      |   |   |   | (1,292 | ) |
| Unrealized gain (loss) on derivative hedging instruments arising in period                                                  |   |                                   |     |   |   |   |   |   |
| (net of tax of $(233) in 2009)                                                                                              |   |                                   | -        |   |   |   | (384 | ) |
|                                                                                                                        |   |                                   |     |   |   |   |   |   |
| Net unrealized gain (loss), recognized in other comprehensive income (loss)                                                 |   |                                   | 3,022    |   |   |   | (961 | ) |
|                                                                                                                        |   |                                   |     |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                 |   | $                                      | (116,673 | ) |   | $ | (192,144 | ) |

----

|                                                                                                                                                                                              |   |      |   |   |           |   |       |   |   |   |       |   |   |     |    |   | Accumulated        |   |     |          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|----------------|--------|------------|--------|--------|--------|------------|--------|--------|----------|---------|--------|--------------------|--------|----------|---------------|--------|
|                                                                                                                                                                                              |   |      |   |   | Shares of |   |       |   |   |   | Additional |   |   |     |    |   | Other              |   |     | Total         |   |
|                                                                                                                                                                                              |   | Preferred |   |   | Common         |   |       | Common |   |   | Paid-In    |   |   | Retained |    |   | Comprehensive      |   |     | Shareholders' |   |
|                                                                                                                                                                                              |   | Stock     |   |   | Stock          |   |       | Stock  |   |   | Capital    |   |   | Earnings |    |   | Income (Loss) |   |     | Equity        |   |
|                                                                                                                                                                                              |   |      |   |   |           |   |       |   |   |   |       |   |   |     |    |   |               |   |     |          |   |   |   |   |   |   |   |   |
| BALANCE AT JANUARY 1, 2009                                                                                                                                                                        |   | $         | -      |   |           |   | 20,748,880 |   |   | $      | 20,749     |   |   | $        | 208,732 |   |               | $      | (15,754  | )             |   | $ | (8,936 | ) |   | $ | 204,791 |   |
|                                                                                                                                                                                              |   |      |   |   |           |   |       |   |   |   |       |   |   |     |    |   |               |   |     |          |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                 |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | (191,183 | )             |   |   | - |   |   |   | (191,183 | ) |
| Cash dividend declared ($0.02 per share)                                                                                                                                                          |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | (414     | )             |   |   | - |   |   |   | (414 | ) |
| Net change, net of tax, in accumulated other comprehensive income                                                                                                                                 |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | -        |          |   |   | 1,918 |   |   |   | 1,918 |   |
| Cumulative effect of change in accounting principles, adoption of FSP FAS 115-2 and 124-2 (net of tax) (ASC 320)                                                                                  |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | 778      |          |   |   | (778 | ) |   |   | - |   |
| Change in unrealized gains (losses) on securities available-for-sale for which a portion of an other-than temporary impairment has been recognized in earnings, net of reclassification and taxes |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | -        |          |   |   | 715 |   |   |   | 715 |   |
| Preferred stock                                                                                                                                                                                   |   |      | 83,586 |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | -        |          |   |   | - |   |   |   | 83,586 |   |
| Common stock warrants                                                                                                                                                                             |   |      | -      |   |           |   |       |   |   |   |       |   |   |     | 7,999   |   |               |   |     |          |   |   |   |   |   |   | 7,999 |   |
| Discount on preferred stock                                                                                                                                                                       |   |      | (1,855 | )      |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | -        |          |   |   | - |   |   |   | (1,855 | ) |
| Preferred stock dividend and discount accretion                                                                                                                                                   |   |      | 280    |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | (3,798   | )             |   |   | - |   |   |   | (3,518 | ) |
| Vesting of restricted shares, net                                                                                                                                                                 |   |      | -      |   |           |   | (9,873     | )      |   |   | (10        | )      |   |     | (307    | )      |               |   | -        |          |   |   | - |   |   |   | (317 | ) |
| Grant of restricted stock, net of forfeitures                                                                                                                                                     |   |      | -      |   |           |   | 108,582    |   |   |   | 109        |   |   |     | (109    | )      |               |   | -        |          |   |   | - |   |   |   | - |   |
| Stock-based compensation expense                                                                                                                                                                  |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | 624     |   |               |   | -        |          |   |   | - |   |   |   | 624 |   |
| BALANCE AT DECEMBER 31, 2009                                                                                                                                                                 |   | $         | 82,011 |   |           | $      | 20,847,589 |   |   | $      | 20,848     |   |   | $        | 216,939 |   |               | $      | (210,371 | )             |   | $ | (7,081 | ) |   | $ | 102,346 |   |
|                                                                                                                                                                                              |   |      |   |   |           |   |       |   |   |   |       |   |   |     |    |   |               |   |     |          |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                 |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | (119,695 | )             |   |   | - |   |   |   | (119,695 | ) |
| Net change, net of tax, in accumulated other comprehensive income                                                                                                                                 |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | -        |          |   |   | 2,249 |   |   |   | 2,249 |   |
| Preferred stock dividend and discount accretion                                                                                                                                                   |   |      | 348    |   |           |   | -          |   |   |   | -          |   |   |     | -       |   |               |   | (4,527   | )             |   |   | - |   |   |   | (4,179 | ) |
| Vesting of restricted shares, net                                                                                                                                                                 |   |      | -      |   |           |   | (1,398     | )      |   |   | (2         | )      |   |     | -       |   |               |   | -        |          |   |   | - |   |   |   | (2 | ) |
| Grant of restricted stock, net of forfeitures                                                                                                                                                     |   |      | -      |   |           |   | 206,506    |   |   |   | 207        |   |   |     | (207    | )      |               |   | -        |          |   |   | - |   |   |   | - |   |
| Stock-based compensation expense                                                                                                                                                                  |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |     | 442     |   |               |   | -        |          |   |   | - |   |   |   | 442 |   |
| BALANCE AT DECEMBER 31, 2010                                                                                                                                                                      |   | $         | 82,359 |   |           | $      | 21,052,697 |   |   | $      | 21,053     |   |   | $        | 217,174 |   |               | $      | (334,593 | )             |   | $ | (4,832 | ) |   | $ | (18,839 | ) |

----

|                                                                              |   | Year ended December 31, |     |
|-----------------------------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                                         |   | 2010                                   |     |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                              |   |                                   |     |   |   |   |
| Net income (loss)                                                                 |   | $                                      | (119,695 | ) |   | $ | (191,183 | ) |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                   |     |   |   |   |   |   |
| Amortization and depreciation                                                     |   |                                   | 8,993    |   |   |   | 6,301 |   |
| Provision for loan losses                                                         |   |                                   | 134,571  |   |   |   | 113,368 |   |
| Net gain on sale of divested loans                                                |   |                                   | (11,742  | ) |   |   | - |   |
| Income tax valuation allowance                                                    |   |                                   | -        |   |   |   | 64,266 |   |
| Net securities (gains) losses                                                     |   |                                   | (5,803   | ) |   |   | (8,060 | ) |
| Impairment charge on available for sale securities                                |   |                                   | 1,102    |   |   |   | 21,484 |   |
| Net held for trading (gains) losses                                               |   |                                   | (293     | ) |   |   | 1,004 |   |
| (Gain) loss on sale of premises and equipment                                     |   |                                   | (457     | ) |   |   | 86 |   |
| (Gain) loss on sale of other real estate owned                                    |   |                                   | 879      |   |   |   | 506 |   |
| Net premiums on sale of deposits                                                  |   |                                   | (15,612  | ) |   |   | (7,812 | ) |
| Loss on low-income housing investments                                            |   |                                   | 1,710    |   |   |   | 1,779 |   |
| Proceeds from sale of held for trading securities                                 |   |                                   | -        |   |   |   | 20,298 |   |
| Purchase of held for trading securities                                           |   |                                   | -        |   |   |   | (19,745 | ) |
| Net gain on sale of loans held for sale                                           |   |                                   | (12,158  | ) |   |   | (1,491 | ) |
| Proceeds from sale of loans held for sale                                         |   |                                   | 86,308   |   |   |   | 182,017 |   |
| Origination of loans held for sale                                                |   |                                   | (73,094  | ) |   |   | (127,246 | ) |
| Debt prepayment fees                                                              |   |                                   | -        |   |   |   | 1,538 |   |
| Change in other operating                                                         |   |                                   | 25,563   |   |   |   | 18,984 |   |
| Net cash flows provided by operating activities                                   |   | $                                      | 20,272   |   |   | $ | 76,094 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                              |   |                                   |     |   |   |   |   |   |
|  Proceeds from maturities of securities available for sale                   |   |                                   | 122,493  |   |   |   | 112,727 |   |
|  Proceeds from sales of securities available for sale                        |   |                                   | 208,697  |   |   |   | 296,751 |   |
|  Purchase of securities available for sale                                   |   |                                   | (494,821 | ) |   |   | (218,145 | ) |
|  Proceeds from sale of regulatory stock                                      |   |                                   | 6,952    |   |   |   | (9 | ) |
|  Proceeds from sale of bank owned life insurance                             |   |                                   | 16,900   |   |   |   | 45,067 |   |
|  Decrease in loans made to customers                                         |   |                                   | 278,790  |   |   |   | 133,608 |   |
|  Purchase of premises and equipment                                          |   |                                   | (5,358   | ) |   |   | (1,293 | ) |
|  Proceeds from sale of premises and equipment                                |   |                                   | 718      |   |   |   | (95 | ) |
|  Proceeds from sale of other real estate owned                               |   |                                   | 10,152   |   |   |   | 8,791 |   |
|  Increase (decrease) from sale of branches, net of cash acquired             |   |                                   | (66,359  | ) |   |   | (48,112 | ) |
| Net cash flows provided by (used in) investing activities                         |   | $                                      | 78,164   |   |   | $ | 329,290 |   |

----

|                                                                           |   | Year ended December 31, |    |
|--------------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                      |   | 2010                                   |    |   | 2009 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                       |   |                                   |    |   |   |   |
|  Net increase (decrease) in deposits                  |   | $                                      | 49,245  |   |   | $ | 152,029 |   |
|  Net increase (decrease) in short-term borrowed funds |   |                                   | (2,221  | ) |   |   | (352,892 | ) |
|  Proceeds from long-term borrowings                                       |   |                                   | -       |   |   |   | 50,000 |   |
|  Repayment of long-term borrowings                                        |   |                                   | (13,220 | ) |   |   | (49,841 | ) |
|  Proceeds from issuance of TARP preferred stock                           |   |                                   | -       |   |   |   | 90,010 |   |
|  Dividends paid on TARP preferred stock                                   |   |                                   | -       |   |   |   | (1,950 | ) |
|  Dividends paid on common stock                                           |   |                                   | -       |   |   |   | (622 | ) |
|  Proceeds from exercise of stock options and restricted shares, net       |   |                                   | (2      | ) |   |   | (317 | ) |
| Net cash flows provided by financing activities                                |   | $                                      | 33,802  |   |   | $ | (113,583 | ) |
|  Net increase in cash and cash equivalents                                |   |                                   | 132,238 |   |   |   | 291,801 |   |
|  Cash and cash equivalents at beginning of period                         |   |                                   | 354,574 |   |   |   | 62,773 |   |
|  Cash and cash equivalents at end of period                               |   | $                                      | 486,812 |   |   | $ | 354,574 |   |

|                                                      |   | Year ended December 31, |   |
|-----------------------------------------------------------|--------|----------------------------------------|--------|
|                                                 |   | 2010                                   |   |   | 2009 |   |
| SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS           |   |                                   |   |   |   |   |
| Cash paid during the year:                                |   |                                   |   |   |   |   |
| Interest                                                  |   | $                                      | 41,879 |   |   | $ | 57,790 |   |
| Income taxes                                              |   |                                   | (7,297 | ) |   |   | (5,931 | ) |
|                                                      |   |                                   |   |   |   |   |   |   |
|   Other real estate acquired in settlement of loans  |   |                                   | 37,010 |   |   |   | 29,512 |   |
|   Dividends accrued not paid on preferred stock |   |                                   | 4,180  |   |   |   | 1,567 |   |
|   Accretion of discount on TARP preferred stock      |   |                                   | (4,527 | ) |   |   | (3,798 | ) |

----

----

----

----

----

----

|                                |   | 2009   |   |
|-------------------------------------|--------|--------|--------|
|                                |   |   |   |
| Number of options/SARs granted      |   |   | 5,000  |   |
| Stock price                         |   | $      | 2.13   |   |
| Risk-free interest rate             |   |   | 3.09   | % |
| Expected  life, in years  |   |   | 8      |   |
| Expected volatility                 |   |   | 57.96  | % |
| Expected dividend yield             |   |   | 1.83   | % |
| Estimated fair value per option/SAR |   | $      | 1.12   |   |

----

|   | · | We have narrowed our geographic operating footprint through the sale of multiple branch clusters while improving capital as detailed in Note 3 below. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We continued our exit from the commercial real estate (CRE) lending line of business and decreased our outstanding CRE balances by $352,662. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We also increased pricing on $90,374 of commercial credits from low LIBOR based variable rates to minimum floor rates of at least 4% during 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We executed multiple cost reduction initiatives during 2010 that are expected to result in lower annualized personnel costs of approximately $4,000, as well as other expense reductions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Pursue all available strategies to recapitalize the Bank to the levels required by the Capital Directive; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Continue to reduce our concentration in CRE credit exposure by obtaining paydowns and payoffs; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | Continue to reduce non-performing assets and our overall credit exposure; and |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Market our services to community banking customers in our core market area that we serve and make continual adjustments to increase profitability. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| Branch Divestitures               |   |           |   |    |   |   |   |   |    |     |   |   |                  |   |   |                 |   |
|----------------------------------------|--------|----------------|--------|---------|--------|--------|--------|--------|---------|----------|--------|--------|-----------------------|--------|--------|----------------------|--------|
|                                   |   |           |   | Number  |   |   |   |   |    |     |   |   | Premium               |   |   | Net gain        |   |
|                                   |   |           |   | of      |   |   | Loans  |   |    | Deposits |   |   | on sales of |   |   | on sale of |   |
| Sold to                           |   | Date           |   | offices |   |   | sold   |   |    | sold     |   |   | deposits              |   |   | divested loans  |   |
| United Community Bank                  |   | June 2010      |   |    | 3      |   |   | $      | 45,913  |     |   | $      | 53,057                |   |   | $                    | 2,394  |   |   | $ | 1,066 |   |
| The Cecilian Bank                      |   | June 2010      |   |    | 2      |   |   |   | 40,733  |     |   |   | 45,000                |   |   |                 | 1,977  |   |   |   | 1,172 |   |
| First Security Bank of Owensboro, Inc. |   | July 2010      |   |    | 5      |   |   |   | 104,929 |     |   |   | 115,110               |   |   |                 | 2,799  |   |   |   | 4,959 |   |
| FNB Bank                               |   | September 2010 |   |    | 3      |   |   |   | 71,855  |     |   |   | 118,928               |   |   |                 | 6,010  |   |   |   | 2,078 |   |
| Citizens Deposit Bank and Trust        |   | September 2010 |   |    | 4      |   |   |   | 69,671  |     |   |   | 73,686                |   |   |                 | 2,432  |   |   |   | 2,565 |   |

----

| For the Year Ended December 31,                    |   | 2010   |       |   | 2009   |   |
|----------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Net income (loss)                                  |   | $      | (119,695   | )      |   | $      | (191,183 | ) |
| Preferred dividends and discount accretion         |   |   | (4,527     | )      |   |   | (3,798 | ) |
| Net income (loss) available to common shareholders |   | $      | (124,222   | )      |   | $      | (194,981 | ) |
|                                               |   |   |       |   |   |   |   |   |
| Weighted average shares outstanding - Basic        |   |   | 20,676,434 |   |   |   | 20,706,184 |   |
| Stock option adjustment                            |   |   | -          |   |   |   | - |   |
| Restricted stock adjustment                        |   |   | -          |   |   |   | - |   |
| Average shares outstanding - Diluted               |   |   | 20,676,434 |   |   |   | 20,706,184 |   |
|                                               |   |   |       |   |   |   |   |   |
| Earnings per share-Basic                           |   | $      | (6.01      | )      |   | $      | (9.42 | ) |
| Effect of stock options and restricted shares      |   |   | -          |   |   |   | - |   |
| Earnings per share - Diluted                       |   | $      | (6.01      | )      |   | $      | (9.42 | ) |

|                                     |   |      |    |   | Gross      |   |   | Gross      |   |   |   |   |
|------------------------------------------|--------|-----------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                     |   | Amortized |    |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                     |   | Cost      |    |   | Gains      |   |   | Losses     |   |   | Value  |   |
| December 31, 2010                        |   |      |    |   |       |   |   |       |   |   |   |   |
| U.S. Treasuries                          |   | $         | 18,607  |   |       | $      | 132    |       |   | $      | -      |   |   | $ | 18,739 |   |
| U.S. Government agencies                 |   |      | 100     |   |       |   | 6      |       |   |   | -      |   |   |   | 106 |   |
| Collateralized mortgage obligations:     |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Agency                                   |   |      | 250,097 |   |       |   | 798    |       |   |   | 838    |   |   |   | 250,057 |   |
| Private label                            |   |      | 16,760  |   |       |   | -      |       |   |   | 605    |   |   |   | 16,155 |   |
| Mortgage-backed securities - residential |   |      | 203,438 |   |       |   | 725    |       |   |   | 1,411  |   |   |   | 202,752 |   |
| Trust preferred                          |   |      | 16,193  |   |       |   | 59     |       |   |   | 5,503  |   |   |   | 10,749 |   |
| States & political subdivisions      |   |      | 20,438  |   |       |   | 1,242  |       |   |   | 1      |   |   |   | 21,679 |   |
| Other securities                         |   |      | 8,641   |   |       |   | 28     |       |   |   | 2      |   |   |   | 8,667 |   |
| Total                                    |   | $         | 534,274 |   |       | $      | 2,990  |       |   | $      | 8,360  |   |   | $ | 528,904 |   |

----

|                                     |   |      |    |   | Gross      |   |   | Gross      |   |   |   |   |
|------------------------------------------|--------|-----------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                     |   | Amortized |    |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                     |   | Cost      |    |   | Gains      |   |   | Losses     |   |   | Value  |   |
| December 31, 2009                        |   |      |    |   |       |   |   |       |   |   |   |   |
| U.S. Treasuries                          |   | $         | 8,856   |   |       | $      | -      |       |   | $      | 23     |   |   | $ | 8,833 |   |
| U.S. Government agencies                 |   |      | 277     |   |       |   | 5      |       |   |   | 3      |   |   |   | 279 |   |
| Collateralized mortgage obligations:     |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Agency                                   |   |      | 117,930 |   |       |   | 1,624  |       |   |   | 1,123  |   |   |   | 118,431 |   |
| Private label                            |   |      | 25,164  |   |       |   | -      |       |   |   | 1,935  |   |   |   | 23,229 |   |
| Mortgage-backed securities - residential |   |      | 167,533 |   |       |   | 537    |       |   |   | 838    |   |   |   | 167,232 |   |
| Trust preferred                          |   |      | 17,238  |   |       |   | 10     |       |   |   | 7,210  |   |   |   | 10,038 |   |
| States & political subdivisions      |   |      | 23,529  |   |       |   | 1,589  |       |   |   | 78     |   |   |   | 25,040 |   |
| Other securities                         |   |      | 8,640   |   |       |   | -      |       |   |   | 3      |   |   |   | 8,637 |   |
| Total                                    |   | $         | 369,167 |   |       | $      | 3,765  |       |   | $      | 11,213 |   |   | $ | 361,719 |   |

|               |   | December 31, 2010 |    |
|--------------------|--------|-----------------------------|---------|
|               |   | Amortized                   |    |   | Fair |   |
|               |   | Cost                        |    |   | Value |   |
| Maturity           |   |                        |    |   |   |   |
| Available-for-sale |   |                        |    |   |   |   |
|               |   |                        |    |   |   |   |
| Within one year    |   | $                           | 1,942   |   |   | $ | 1,965 |   |
| One to five years  |   |                        | 223,810 |   |   |   | 224,029 |   |
| Five to ten years  |   |                        | 181,225 |   |   |   | 180,643 |   |
| Beyond ten years   |   |                        | 127,297 |   |   |   | 122,267 |   |
| Total              |   | $                           | 534,274 |   |   | $ | 528,904 |   |

|                            |   | 2010   |   |   | 2009   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|
|                            |   |   |   |   |   |   |
| Gross realized gains            |   | $      | 5,805  |   |   | $      | 8,076 |   |
| Gross realized losses           |   |   | (2     | )      |   |   | (16 | ) |
| Other-than-temporary impairment |   |   | (1,102 | )      |   |   | (21,484 | ) |
|                            |   |   |   |   |   |   |   |   |
| Total                           |   | $      | 4,701  |   |   | $      | (13,424 | ) |

----

|                                     |   | Less than 12 Months |    |   | 12 Months or More |   |   | Total           |   |
|------------------------------------------|--------|------------------------------------|---------|--------|----------------------------------|--------|--------|-----------------|--------|
| December 31, 2010              |   | Fair Value                    |    |   | UnrealizedLosses                 |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| Collateralized mortgage obligations:     |   |                               |    |   |                             |   |   |            |   |   |   |   |   |   |   |   |   |   |
| Agency                                   |   | $                                  | 110,593 |   |                             | $      | 838    |            |   | $ | - |   |   | $ | - |   |   | $ | 110,593 |   |   | $ | 838 |   |
| Private Label                            |   |                               | 4,509   |   |                             |   | 17     |            |   |   | 11,646 |   |   |   | 588 |   |   |   | 16,155 |   |   |   | 605 |   |
| Mortgage-backed securities - residential |   |                               | 126,749 |   |                             |   | 1,411  |            |   |   | - |   |   |   | - |   |   |   | 126,749 |   |   |   | 1,411 |   |
| Trust Preferred                          |   |                               | -       |   |                             |   | -      |            |   |   | 6,699 |   |   |   | 5,503 |   |   |   | 6,699 |   |   |   | 5,503 |   |
| State & political subdivisions       |   |                               | 1,754   |   |                             |   | 1      |            |   |   | - |   |   |   | - |   |   |   | 1,754 |   |   |   | 1 |   |
| Other securities                         |   |                               | -       |   |                             |   | -      |            |   |   | 24 |   |   |   | 2 |   |   |   | 24 |   |   |   | 2 |   |
| Total                                    |   | $                                  | 243,605 |   |                             | $      | 2,267  |            |   | $ | 18,369 |   |   | $ | 6,093 |   |   | $ | 261,974 |   |   | $ | 8,360 |   |

|                                     |   | Less than 12 Months |    |   | 12 Months or More |   |   | Total           |   |
|------------------------------------------|--------|------------------------------------|---------|--------|----------------------------------|--------|--------|-----------------|--------|
| December 31, 2009              |   | Fair Value                    |    |   | UnrealizedLosses                 |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| U.S. Treasuries                          |   | $                                  | 8,833   |   |                             | $      | 23     |            |   | $ | - |   |   | $ | - |   |   | $ | 8,833 |   |   | $ | 23 |   |
| U.S. Government agencies                 |   |                               | 149     |   |                             |   | 3      |            |   |   | - |   |   |   | - |   |   |   | 149 |   |   |   | 3 |   |
| Collateralized mortgage obligations:     |   |                               |    |   |                             |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency                                   |   |                               | 59,198  |   |                             |   | 1,123  |            |   |   | - |   |   |   | - |   |   |   | 59,198 |   |   |   | 1,123 |   |
| Private Label                            |   |                               | -       |   |                             |   | -      |            |   |   | 23,229 |   |   |   | 1,935 |   |   |   | 23,229 |   |   |   | 1,935 |   |
| Mortgage-backed securities - residential |   |                               | 105,719 |   |                             |   | 838    |            |   |   | - |   |   |   | - |   |   |   | 105,719 |   |   |   | 838 |   |
| Trust Preferred                          |   |                               | 602     |   |                             |   | 123    |            |   |   | 5,436 |   |   |   | 7,087 |   |   |   | 6,038 |   |   |   | 7,210 |   |
| State & political subdivisions       |   |                               | 1,806   |   |                             |   | 22     |            |   |   | 1,066 |   |   |   | 56 |   |   |   | 2,872 |   |   |   | 78 |   |
| Other securities                         |   |                               | -       |   |                             |   | -      |            |   |   | 21 |   |   |   | 3 |   |   |   | 21 |   |   |   | 3 |   |
| Total                                    |   | $                                  | 176,307 |   |                             | $      | 2,132  |            |   | $ | 29,752 |   |   | $ | 9,081 |   |   | $ | 206,059 |   |   | $ | 11,213 |   |

| (At Fair Value) |   | December 31, 2010 |   |   | December 31, 2009 |   |
|-----------------|--------|-------------------|--------|--------|-------------------|--------|
| Trust Preferred |   | $                 | 329    |   |              | $      | 36 |   |
| Total           |   | $                 | 329    |   |              | $      | 36 |   |

----

| Ratings                                                                    |   |                              |   |                              |
|----------------------------------------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|
|                                                                       |   |                              |   |                              |
| Issuer                                                                     |   | Ratings as of December 31, 2010   |   | Ratings as of December 31, 2009   |
| Pooled Trust Preferred CDOs (Amortized cost $2,197, fair value $974)       |   |                              |
| PreTSL VI                                                                  |   | Ca (Moodys) / D (Fitch)           |   | Caa1 (Moodys) / CCC (Fitch)       |
| PreTSL XIV                                                                 |   | Ca (Moodys) /C (Fitch)            |   | Ca (Moodys) /CC (Fitch)           |
|                                                                       |   |                              |   |                              |
| Pooled Trust Preferred CDOs (Held For Trading)-Carried at fair value, $329 |   |                              |
| Alesco 10A C1                                                              |   | Ca (Moodys) / C (Fitch)           |   | Ca (Moodys) / CC (Fitch)          |
| Trapeza 11A D1                                                             |   | C (Fitch)                         |   | C (Fitch)                         |
| Trapeza 12A D1                                                             |   | C (Fitch)                         |   | C (Fitch)                         |
| US Capital Funding                                                         |   | C (Moodys) / C (Fitch)            |   | Caa3 (Moodys) / CC (Fitch)        |
|                                                                       |   |                              |   |                              |
| Single Issue Trust Preferred (Amortized cost $13,996, fair value $9,775)   |   |                              |
| Bank One Cap Tr VI (JP Morgan)                                             |   | A2(Moodys) / A (Fitch)            |   | A2(Moodys)                        |
| First Citizen Bancshare                                                    |   | Non-Rated                         |   | Non-Rated                         |
| First Union Instit Cap I (Wells Fargo)                                     |   | Baa1(Moodys)/A-(S&P)/A(Fitch) |   | Baa2(Moodys)/A-(S&P)/A(Fitch) |
| Sky Financial Cap Trust III (Huntington)                                   |   | BB-(S&P)                      |   | B(S&P)                        |
|                                                                       |   |                              |   |                              |
| Private Label CMOs (Amortized cost $16,760 fair value $16,155)             |   |                              |
| CWHL 2003-58 2A1                                                           |   | Aaa/*-(Moodys)/AAA(S&P)       |   | Aaa(Moodys)/AAA(S&P)          |
| CMSI 2004-4 A2                                                             |   | Paid-off                          |   | AAA(S&P)/AAA(Fitch)           |
| GSR 2003-10 2A1                                                            |   | Aaa/*-(Moodys)/AAA(S&P)       |   | Aaa(Moodys)/AAA(S&P)          |
| RAST 2003-A15 1A1                                                          |   | AAA(S&P)/AAA(Fitch)           |   | AAA(S&P)/AAA(Fitch)           |
| SASC 2003-31A 3A                                                           |   | A1/*-(Moodys)/AAA(S&P)        |   | A1(Moodys)/AAA(S&P)           |
| WFMBS 2006-8 A13                                                           |   | B2(Moodys)/B(Fitch)               |   | B3/*-(Moodys)/B(Fitch)            |

----

----

----

| Beginning balance January 1, 2010                                                                                                                                                                              |   | $      | 315     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Additions for amounts related to credit loss for which an other- than-temporary impairment was not previously recognized                                                                                       |   |   | 1,102   |   |
| Reductions for amounts related to securities for which the company intends to sell or that it will be more likely than not that the company will be required to sell prior to recovery of amortized cost basis |   |   | -       |   |
| Ending balance, December 31, 2010                                                                                                                                                                              |   | $      | 1,417   |   |
|                                                                                                                                                                                                           |   |   |    |   |
| Beginning balance April 1, 2009                                                                                                                                                                                |   | $      | 10,531  |   |
| Additions for amounts related to credit loss for which an other- than-temporary impairment was not previously recognized                                                                                       |   |   | 20,314  |   |
| Reductions for amounts related to securities for which the company intends to sell or that it will be more likely than not that the company will be required to sell prior to recovery of amortized cost basis |   |   | (30,530 | )      |
| Ending balance, December 31, 2009                                                                                                                                                                              |   | $      | 315     |   |

----

|                                                                                  |   | 2010   |      |   | 2009   |   |
|---------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Commercial                                                                            |   |   |      |   |   |   |
| Commercial, industrial and agricultural loans:                                        |   |   |      |   |   |   |
| Commercial real estate                                                                |   | $      | 68,910    |   |   | $      | 87,243 |   |
| Chicago                                                                               |   |   | 35,090    |   |   |   | 56,620 |   |
| Community                                                                             |   |   | 297,936   |   |   |   | 458,743 |   |
| Economic development loans and other obligations of state and political subdivisions: |   |   |      |   |   |   |   |   |
| Chicago                                                                               |   |   | -         |   |   |   | 37 |   |
| Community                                                                             |   |   | 8,992     |   |   |   | 14,736 |   |
| Lease financing:                                                                      |   |   |      |   |   |   |   |   |
| Community                                                                             |   |   | 424       |   |   |   | 5,579 |   |
| Total commercial                                                                      |   |   | 411,352   |   |   |   | 622,958 |   |
| Commercial real estate                                                                |   |   |      |   |   |   |   |   |
| Commercial mortgages:                                                                 |   |   |      |   |   |   |   |   |
| Commercial real estate                                                                |   |   | 318,902   |   |   |   | 388,443 |   |
| Chicago                                                                               |   |   | 87,099    |   |   |   | 116,690 |   |
| Community                                                                             |   |   | 44,291    |   |   |   | 77,990 |   |
| Construction and development:                                                         |   |   |      |   |   |   |   |   |
| Commercial real estate                                                                |   |   | 106,855   |   |   |   | 290,237 |   |
| Chicago                                                                               |   |   | 51,944    |   |   |   | 86,181 |   |
| Community                                                                             |   |   | 3,438     |   |   |   | 5,650 |   |
| Total commercial real estate                                                          |   |   | 612,529   |   |   |   | 965,191 |   |
|                                                                                  |   |   |      |   |   |   |   |   |
| Residential mortgages:                                                                |   |   |      |   |   |   |   |   |
| Chicago                                                                               |   |   | 4,101     |   |   |   | 5,547 |   |
| Community                                                                             |   |   | 139,142   |   |   |   | 227,252 |   |
| Home equity:                                                                          |   |   |      |   |   |   |   |   |
| Chicago                                                                               |   |   | 8,541     |   |   |   | 10,190 |   |
| Community                                                                             |   |   | 109,865   |   |   |   | 152,744 |   |
| Consumer loans:                                                                       |   |   |      |   |   |   |   |   |
| Commercial real estate                                                                |   |   | 2         |   |   |   | 3 |   |
| Chicago                                                                               |   |   | 1,150     |   |   |   | 1,319 |   |
| Community                                                                             |   |   | 62,822    |   |   |   | 125,144 |   |
| Total loans                                                                           |   |   | 1,349,504 |   |   |   | 2,110,348 |   |
| Less:  Loans held for sale in probable                                      |   |   |      |   |   |   |   |   |
| branch divestiture                                                                    |   |   | -         |   |   |   | 90,616 |   |
| Loans, net of loans held for sale in                                                  |   |   |      |   |   |   |   |   |
| probable branch divestiture                                                           |   | $      | 1,349,504 |   |   | $      | 2,019,732 |   |

----

|                                                                                 |   | Nonaccrual |    |   | Loans Past Due Over 90 Days StillAccruing |   |
|--------------------------------------------------------------------------------------|--------|------------|---------|--------|-------------------------------------------------------------------------|--------|
|                                                                                 |   |       |    |   |                                                                    |   |
| Commercial                                                                           |   |       |    |   |                                                                    |   |
| Commercial, industrial and agricultural loans:                                       |   |       |    |   |                                                                    |   |
| Commercial real estate                                                               |   | $          | 6,673   |   |                                                                    | $      | - |   |
| Chicago                                                                              |   |       | 14,078  |   |                                                                    |   | - |   |
| Community                                                                            |   |       | 3,589   |   |                                                                    |   | 7 |   |
| Economic development loans and other obligations of state and political subdivisions |   |       | -       |   |                                                                    |   | - |   |
| Lease financing                                                                      |   |       | 424     |   |                                                                    |   | - |   |
| Total commercial                                                                     |   |       | 24,764  |   |                                                                    |   | 7 |   |
| Commercial real estate                                                               |   |       |    |   |                                                                    |   |   |   |
| Commercial mortgages:                                                                |   |       |    |   |                                                                    |   |   |   |
| Commercial real estate                                                               |   |       | 32,462  |   |                                                                    |   | - |   |
| Chicago                                                                              |   |       | 43,184  |   |                                                                    |   | - |   |
| Community                                                                            |   |       | 4,507   |   |                                                                    |   | - |   |
| Construction and development:                                                        |   |       |    |   |                                                                    |   |   |   |
| Commercial real estate                                                               |   |       | 41,433  |   |                                                                    |   | - |   |
| Chicago                                                                              |   |       | 45,092  |   |                                                                    |   | - |   |
| Community                                                                            |   |       | 271     |   |                                                                    |   | - |   |
| Total commercial real estate                                                         |   |       | 166,949 |   |                                                                    |   | - |   |
|                                                                                 |   |       |    |   |                                                                    |   |   |   |
| Residential mortgages:                                                               |   |       |    |   |                                                                    |   |   |   |
| Chicago                                                                              |   |       | 494     |   |                                                                    |   | - |   |
| Community                                                                            |   |       | 2,637   |   |                                                                    |   | 8 |   |
| Home equity:                                                                         |   |       |    |   |                                                                    |   |   |   |
| Chicago                                                                              |   |       | 896     |   |                                                                    |   | - |   |
| Community                                                                            |   |       | 606     |   |                                                                    |   | 30 |   |
| Consumer loans:                                                                      |   |       |    |   |                                                                    |   |   |   |
| Community                                                                            |   |       | 596     |   |                                                                    |   | 28 |   |
| Total loans                                                                          |   | $          | 196,942 |   |                                                                    | $      | 73 |   |

----

|                                                                                 |   | 30-89 Days Past Due |   |   | Greaterthan 90Days Past Due |   |   | Total Past Due |   |
|--------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------|--------|
|                                                                                 |   |                               |   |   |                                       |   |   |                     |   |
| Commercial                                                                           |   |                               |   |   |                                       |   |   |                     |   |
| Commercial, industrial and agricultural loans:                                       |   |                               |   |   |                                       |   |   |                     |   |
| Commercial real estate                                                               |   | $                                  | 536    |   |                                       | $      | -      |                     |   | $ | 536 |   |
| Chicago                                                                              |   |                               | 276    |   |                                       |   |   |                     |   |   | 276 |   |
| Community                                                                            |   |                               | 1,477  |   |                                       |   | 7      |                     |   |   | 1,484 |   |
| Economic development loans and other obligations of state and political subdivisions |   |                               | -      |   |                                       |   | -      |                     |   |   | - |   |
| Lease financing                                                                      |   |                               | -      |   |                                       |   | -      |                     |   |   | - |   |
| Total commercial                                                                     |   |                               | 2,289  |   |                                       |   | 7      |                     |   |   | 2,296 |   |
| Commercial real estate                                                               |   |                               |   |   |                                       |   |   |                     |   |   |   |   |
| Commercial mortgages:                                                                |   |                               |   |   |                                       |   |   |                     |   |   |   |   |
| Commercial real estate                                                               |   |                               | 5,735  |   |                                       |   | -      |                     |   |   | 5,735 |   |
| Chicago                                                                              |   |                               | 695    |   |                                       |   | -      |                     |   |   | 695 |   |
| Community                                                                            |   |                               | 611    |   |                                       |   | -      |                     |   |   | 611 |   |
| Construction and development:                                                        |   |                               |   |   |                                       |   |   |                     |   |   |   |   |
| Commercial real estate                                                               |   |                               | 3,529  |   |                                       |   | -      |                     |   |   | 3,529 |   |
| Chicago                                                                              |   |                               | -      |   |                                       |   | -      |                     |   |   | - |   |
| Community                                                                            |   |                               | -      |   |                                       |   | -      |                     |   |   | - |   |
| Total commercial real estate                                                         |   |                               | 10,570 |   |                                       |   | -      |                     |   |   | 10,570 |   |
|                                                                                 |   |                               |   |   |                                       |   |   |                     |   |   |   |   |
| Residential mortgages:                                                               |   |                               |   |   |                                       |   |   |                     |   |   |   |   |
| Chicago                                                                              |   |                               | 314    |   |                                       |   | -      |                     |   |   | 314 |   |
| Community                                                                            |   |                               | 4,632  |   |                                       |   | 8      |                     |   |   | 4,640 |   |
| Home equity:                                                                         |   |                               |   |   |                                       |   |   |                     |   |   |   |   |
| Chicago                                                                              |   |                               | 507    |   |                                       |   | -      |                     |   |   | 507 |   |
| Community                                                                            |   |                               | 336    |   |                                       |   | 30     |                     |   |   | 366 |   |
| Consumer loans:                                                                      |   |                               |   |   |                                       |   |   |                     |   |   |   |   |
| Commercial real estate                                                               |   |                               | -      |   |                                       |   | -      |                     |   |   | - |   |
| Chicago                                                                              |   |                               | 35     |   |                                       |   | -      |                     |   |   | 35 |   |
| Community                                                                            |   |                               | 940    |   |                                       |   | 28     |                     |   |   | 968 |   |
| Total loans                                                                          |   | $                                  | 19,623 |   |                                       | $      | 73     |                     |   | $ | 19,696 |   |

----

| At December 31, 2010                                                                  |   |                            |    |   |                                  |   |      |         |   |   |         |   |
|---------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------------|--------|-----------|--------------|--------|--------|--------------|--------|
|                                                                                  |   | Loans evaluated for impairment: |    |   | Allowance based on impairment method: |   |
|                                                                                  |   | Individually                    |    |   | Collectively                          |   |      | Individually |   |   | Collectively |   |
|                                                                                  |   |                            |    |   |                                  |   |      |         |   |   |         |   |
| Commercial                                                                            |   |                            |    |   |                                  |   |      |         |   |   |         |   |
| Commercial, industrial and agricultural loans:                                        |   |                            |    |   |                                  |   |      |         |   |   |         |   |
| Commercial real estate                                                                |   | $                               | 9,187   |   |                                  | $      | 59,723    |         |   | $      | 1,218        |   |   | $ | 2,684 |   |
| Chicago                                                                               |   |                            | 14,078  |   |                                  |   | 21,012    |         |   |   | 3,417        |   |   |   | 883 |   |
| Community                                                                             |   |                            | 3,596   |   |                                  |   | 294,340   |         |   |   | 537          |   |   |   | 8,612 |   |
| Economic development loans and other obligations of state and political subdivisions: |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Community                                                                             |   |                            | -       |   |                                  |   | 8,992     |         |   |   | -            |   |   |   | 11 |   |
| Lease financing:                                                                      |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Community                                                                             |   |                            | 424     |   |                                  |   | -         |         |   |   | -            |   |   |   | - |   |
| Total commercial                                                                      |   |                            | 27,285  |   |                                  |   | 384,067   |         |   |   | 5,172        |   |   |   | 12,190 |   |
| Commercial real estate                                                                |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Commercial mortgages:                                                                 |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Commercial real estate                                                                |   |                            | 35,210  |   |                                  |   | 283,692   |         |   |   | 6,198        |   |   |   | 17,654 |   |
| Chicago                                                                               |   |                            | 43,184  |   |                                  |   | 43,915    |         |   |   | 5,921        |   |   |   | 3,190 |   |
| Community                                                                             |   |                            | 4,507   |   |                                  |   | 39,784    |         |   |   | 645          |   |   |   | 675 |   |
| Construction and development:                                                         |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Commercial real estate                                                                |   |                            | 41,433  |   |                                  |   | 65,422    |         |   |   | 7,843        |   |   |   | 6,097 |   |
| Chicago                                                                               |   |                            | 45,179  |   |                                  |   | 6,765     |         |   |   | 8,915        |   |   |   | 557 |   |
| Community                                                                             |   |                            | 271     |   |                                  |   | 3,167     |         |   |   |         |   |   |   | 50 |   |
| Total commercial real estate                                                          |   |                            | 169,784 |   |                                  |   | 442,745   |         |   |   | 29,522       |   |   |   | 28,223 |   |
| Residential mortgages:                                                                |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Chicago                                                                               |   |                            | 60      |   |                                  |   | 4,041     |         |   |   | 17           |   |   |   | 182 |   |
| Community                                                                             |   |                            | 516     |   |                                  |   | 138,626   |         |   |   | 149          |   |   |   | 6,577 |   |
| Home equity:                                                                          |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Chicago                                                                               |   |                            | 1,021   |   |                                  |   | 7,520     |         |   |   | 80           |   |   |   | 147 |   |
| Community                                                                             |   |                            | 68      |   |                                  |   | 109,797   |         |   |   | 20           |   |   |   | 2,145 |   |
| Consumer loans:                                                                       |   |                            |    |   |                                  |   |      |         |   |   |         |   |   |   |   |   |
| Commercial real estate                                                                |   |                            | -       |   |                                  |   | 2         |         |   |   | -            |   |   |   | - |   |
| Chicago                                                                               |   |                            | -       |   |                                  |   | 1,150     |         |   |   | -            |   |   |   | 49 |   |
| Community                                                                             |   |                            | 274     |   |                                  |   | 62,548    |         |   |   | 25           |   |   |   | 3,949 |   |
| Unallocated:                                                                          |   |                            | -       |   |                                  |   | -         |         |   |   | -            |   |   |   | 7,354 |   |
| Total loans                                                                           |   | $                               | 199,008 |   |                                  | $      | 1,150,496 |         |   | $      | 34,985       |   |   | $ | 60,816 |   |

|                                                       |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                       |   |   |    |   |   |   |
| Year-end loans with no allocated allowance for loan losses |   | $      | 38,627  |   |   | $      | 78,719 |   |
| Year-end loans with allocated allowance for loan losses    |   |   | 160,381 |   |   |   | 129,017 |   |
|                                                       |   |   |    |   |   |   |   |   |
| Total                                                      |   | $      | 199,008 |   |   | $      | 207,736 |   |
|                                                       |   |   |    |   |   |   |   |   |
| Amount of the allowance for loan losses allocated          |   | $      | 34,985  |   |   | $      | 32,753 |   |
| Average of individually impaired loans during year         |   |   | 235,892 |   |   |   | 189,730 |   |
| Interest income recognized during impairment               |   |   | 2,483   |   |   |   | 1,811 |   |
| Cash-basis interest income recognized                      |   |   | 17      |   |   |   | 40 |   |

----

|                                                    |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                    |   |   |   |   |   |   |
| Balance as of January 1                                 |   | $      | 2,087  |   |   | $      | 6,432 |   |
| New loans                                               |   |   | 1,731  |   |   |   | 572 |   |
| Repayments                                              |   |   | (1,898 | )      |   |   | (1,983 | ) |
| Director and officer changes                            |   |   | (55    | )      |   |   | (2,934 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| Balance as of December 31                               |   | $      | 1,865  |   |   | $      | 2,087 |   |
|                                                    |   |   |   |   |   |   |   |   |
| The balance of related party deposits as of December 31 |   | $      | 4,880  |   |   | $      | 4,414 |   |

|                                     |   | 2010   |     |   | 2009   |   |
|------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                     |   |   |     |   |   |   |
| Balance at beginning of year             |   | $      | 88,670   |   |   | $      | 64,437 |   |
| Loans charged to allowance               |   |   | (117,139 | )      |   |   | (91,452 | ) |
| Recoveries credited to allowance         |   |   | 2,769    |   |   |   | 2,317 |   |
| Net charge-offs                          |   |   | (114,370 | )      |   |   | (89,135 | ) |
| Allowance related to divested loans sold |   |   | (13,070  | )      |   |   | - |   |
| Provision for loan losses                |   |   | 134,571  |   |   |   | 113,368 |   |
| Balance at end of year                   |   | $      | 95,801   |   |   | $      | 88,670 |   |

----

|                                                                                  |   | SpecialMention |   |   | Substandard |   |    | Doubtful |   |   | Loss   |   |   | Pass   |   |   | Not Rated |   | Total Loans |   |
|---------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------|--------|---------|----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|------------------|--------|
|                                                                                  |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |
| Commercial                                                                            |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |
| Commercial, industrial and agricultural loans:                                        |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |
| Commercial real estate                                                                |   | $              | 1,720  |   |        | $      | 20,805  |     |   | $      | 1,218  |   |   | $      | -      |   |      | $      | 45,167           |   | $ | - |   | $ | 68,910 |   |
| Chicago                                                                               |   |           | 3,686  |   |        |   | 14,568  |     |   |   | 3,417  |   |   |   | -      |   |      |   | 13,419           |   |   | - |   |   | 35,090 |   |
| Community                                                                             |   |           | 12,475 |   |        |   | 22,958  |     |   |   | 537    |   |   |   | -      |   |      |   | 261,966          |   |   | - |   |   | 297,936 |   |
| Economic development loans and other obligations of state and political subdivisions: |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Community                                                                             |   |           | 527    |   |        |   | -       |     |   |   | -      |   |   |   | -      |   |      |   | 8,465            |   |   | - |   |   | 8,992 |   |
| Lease financing:                                                                      |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Community                                                                             |   |           | -      |   |        |   | 424     |     |   |   | -      |   |   |   | -      |   |      |   | -                |   |   | - |   |   | 424 |   |
| Total commercial                                                                      |   |           | 18,408 |   |        |   | 58,755  |     |   |   | 5,172  |   |   |   | -      |   |      |   | 329,017          |   |   | - |   |   | 411,352 |   |
| Commercial real estate                                                                |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Commercial mortgages:                                                                 |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |           | 4,241  |   |        |   | 67,055  |     |   |   | 6,198  |   |   |   | -      |   |      |   | 241,408          |   |   | - |   |   | 318,902 |   |
| Chicago                                                                               |   |           | 5,937  |   |        |   | 58,455  |     |   |   | 5,921  |   |   |   | -      |   |      |   | 16,786           |   |   | - |   |   | 87,099 |   |
| Community                                                                             |   |           | 2,376  |   |        |   | 7,973   |     |   |   | 645    |   |   |   | -      |   |      |   | 33,297           |   |   | - |   |   | 44,291 |   |
| Construction and development:                                                         |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |           | 5,335  |   |        |   | 49,516  |     |   |   | 7,843  |   |   |   | -      |   |      |   | 44,161           |   |   | - |   |   | 106,855 |   |
| Chicago                                                                               |   |           | 650    |   |        |   | 40,085  |     |   |   | 8,915  |   |   |   | -      |   |      |   | 2,294            |   |   | - |   |   | 51,944 |   |
| Community                                                                             |   |           | 983    |   |        |   | 308     |     |   |   | -      |   |   |   | -      |   |      |   | 2,147            |   |   | - |   |   | 3,438 |   |
| Total commercial real estate                                                          |   |           | 19,522 |   |        |   | 223,392 |     |   |   | 29,522 |   |   |   | -      |   |      |   | 340,093          |   |   | - |   |   | 612,529 |   |
|                                                                                  |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Residential mortgages:                                                                |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Chicago                                                                               |   |           | -      |   |        |   | 400     |     |   |   | 17     |   |   |   | -      |   |      |   | -                |   |   | 3,684 |   |   | 4,101 |   |
| Community                                                                             |   |           | 122    |   |        |   | 1,692   |     |   |   | 149    |   |   |   | 16     |   |      |   | -                |   |   | 137,163 |   |   | 139,142 |   |
| Home equity:                                                                          |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Chicago                                                                               |   |           | -      |   |        |   | 527     |     |   |   | 80     |   |   |   | -      |   |      |   | -                |   |   | 7,934 |   |   | 8,541 |   |
| Community                                                                             |   |           | 171    |   |        |   | 460     |     |   |   | 20     |   |   |   | -      |   |      |   | -                |   |   | 109,214 |   |   | 109,865 |   |
| Consumer loans:                                                                       |   |           |   |   |        |   |    |     |   |   |   |   |   |   |   |   |      |   |             |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |           | -      |   |        |   | -       |     |   |   | -      |   |   |   | -      |   |      |   | -                |   |   | 2 |   |   | 2 |   |
| Chicago                                                                               |   |           | -      |   |        |   | -       |     |   |   | -      |   |   |   | -      |   |      |   | -                |   |   | 1,150 |   |   | 1,150 |   |
| Community                                                                             |   |           | 72     |   |        |   | 429     |     |   |   | 25     |   |   |   | -      |   |      |   | -                |   |   | 62,296 |   |   | 62,822 |   |
| Total loans                                                                           |   | $              | 38,295 |   |        | $      | 285,655 |     |   | $      | 34,985 |   |   | $      | 16     |   |      | $      | 669,110          |   | $ | 321,443 |   | $ | 1,349,504 |   |

----

|                   |   | 2010   |    |   | 2009   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
|                   |   |   |    |   |   |   |
| Beginning balance      |   | $      | 31,982  |   |   | $      | 18,646 |   |
| Additions              |   |   | 37,010  |   |   |   | 30,262 |   |
| Writedowns             |   |   | (8,612  | )      |   |   | (7,937 | ) |
| Sales proceeds         |   |   | (10,152 | )      |   |   | (8,791 | ) |
| Net loss on sales      |   |   | (879    | )      |   |   | (506 | ) |
| Other changes          |   |   | (111    | )      |   |   | 308 |   |
| Balance at end of year |   | $      | 49,238  |   |   | $      | 31,982 |   |

|                                              |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                              |   |   |   |   |   |   |
| Land                                              |   | $      | 5,423  |   |   | $      | 6,306 |   |
| Buildings and lease improvements                  |   |   | 55,590 |   |   |   | 62,202 |   |
| Equipment                                         |   |   | 18,873 |   |   |   | 21,157 |   |
| Construction in progress                          |   |   | 234    |   |   |   | 898 |   |
|                                              |   |   |   |   |   |   |   |   |
| Total cost                                        |   |   | 80,120 |   |   |   | 90,563 |   |
|                                              |   |   |   |   |   |   |   |   |
| Less accumulated depreciation                     |   |   | 46,101 |   |   |   | 51,505 |   |
| Less held for sale in probable branch divestiture |   |   |   |   |   |   | 1,244 |   |
| Net premises and equipment                        |   | $      | 34,019 |   |   | $      | 37,814 |   |

|                               |   | December 31, 2010 |   |   | December 31, 2009 |   |
|------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                               |   | Gross                  |   |   |                   |   |   | Net |   |   | Gross |   |   |   |   |   | Net |   |
|                               |   | Carrying               |   |   | Accumulated            |   |   | Carrying |   |   | Carrying |   |   | Accumulated |   |   | Carrying |   |
|                               |   | Amount                 |   |   | Amortization           |   |   | Amount |   |   | Amount |   |   | Amortization |   |   | Amount |   |
|                               |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core deposits (Amortizing)         |   |                   | 23,320 |   |                   |   | (19,384 | ) |   |   | 3,936 |   |   |   | 23,320 |   |   |   | (15,113 | ) |   |   | 8,207 |   |
| Customer Relationship (Amortizing) |   |                   | 140    |   |                   |   | (126 | ) |   |   | 14 |   |   |   | 140 |   |   |   | (105 | ) |   |   | 35 |   |
| Total intangible assets            |   | $                      | 23,460 |   |                   | $      | (19,510 | ) |   | $ | 3,950 |   |   | $ | 23,460 |   |   | $ | (15,218 | ) |   | $ | 8,242 |   |

| Year ending December 31, |   |   |   |
|-----------------------------------------|--------|--------|--------|
| 2011                                    |   | $      | 854    |   |
| 2012                                    |   |   | 809    |   |
| 2013                                    |   |   | 704    |   |
| 2014                                    |   |   | 569    |   |
| Thereafter                              |   |   | 1,014  |   |
|                                    |   | $      | 3,950  |   |

----

|                          |   | December 31, |      |
|-------------------------------|--------|-------------------|-----------|
|                          |   | 2010              |      |   | 2009 |   |
| Deposits:                     |   |              |      |   |   |   |
| Non-interest-bearing          |   | $                 | 224,184   |   |   | $ | 270,849 |   |
| Interest checking             |   |              | 286,654   |   |   |   | 416,635 |   |
| Money market accounts         |   |              | 199,854   |   |   |   | 249,490 |   |
| Savings                       |   |              | 236,814   |   |   |   | 342,453 |   |
| Time deposits of $100 or more |   |              | 666,671   |   |   |   | 623,670 |   |
| Other interest-bearing        |   |              | 375,702   |   |   |   | 462,009 |   |
|                          |   | $                 | 1,989,879 |   |   | $ | 2,365,106 |   |

| Time Deposit Maturities |   |   |      |
|-------------------------|--------|--------|-----------|
|                    |   |   |      |
| 2011                    |   | $      | 563,261   |   |
| 2012                    |   |   | 293,676   |   |
| 2013                    |   |   | 98,492    |   |
| 2014                    |   |   | 23,062    |   |
| 2015 and thereafter     |   |   | 63,881    |   |
|                    |   |   |      |   |
| Total                   |   | $      | 1,042,372 |   |

|                                 |   | 2010   |   |   | 2009   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|
| Federal:                             |   |   |   |   |   |   |
| Current                              |   | $      | (340   | )      |   | $      | (5,696 | ) |
| Deferred                             |   |   | (1,226 | )      |   |   | (29,640 | ) |
| Total                                |   |   | (1,566 | )      |   |   | (35,336 | ) |
|                                 |   |   |   |   |   |   |   |   |
| State:                               |   |   |   |   |   |   |   |   |
| Current                              |   | $      | -      |   |   | $      | (212 | ) |
| Deferred                             |   |   | (128   | )      |   |   | (4,566 | ) |
| Total                                |   |   | (128   | )      |   |   | (4,778 | ) |
|                                 |   |   |   |   |   |   |   |   |
| Establishment of valuation allowance |   |   | -      |   |   |   | 100,964 |   |
| Total income taxes (benefit)         |   | $      | (1,694 | )      |   | $      | 60,850 |   |

----

|                                               |   | December 31 |    |   | December 31, |   |
|----------------------------------------------------|--------|------------------|---------|--------|-------------------|--------|
|                                               |   | 2010             |    |   | 2009              |   |
|                                               |   |             |    |   |              |   |
| Federal income tax computed at the statutory rates |   | $                | (42,486 | )      |              | $      | (45,617 | ) |
| Adjusted for effects of:                           |   |             |    |   |              |   |   |   |
| Change in valuation allowance                      |   |             | 45,313  |   |              |   | 100,964 |   |
| Taxable proceeds from BOLI sale                    |   |             | -       |   |              |   | 5,464 |   |
| State taxes, net of federal benefit                |   |             | (1,809  | )      |              |   | (3,106 | ) |
| Nondeductible fair value adjustment - warrants     |   |             | -       |   |              |   | 2,151 |   |
| Low income housing credit                          |   |             | (1,052  | )      |              |   | (1,788 | ) |
| Tax exempt interest                                |   |             | (415    | )      |              |   | (1,200 | ) |
| Cash surrender value of life insurance policies    |   |             | (33     | )      |              |   | (561 | ) |
| Nondeductible expenses                             |   |             | 68      |   |              |   | 170 |   |
| Intraperiod Tax Allocation                         |   |             | (1,271  | )      |              |   | - |   |
| Other differences                                  |   |             | (9      | )      |              |   | 4,373 |   |
| Total income taxes                                 |   | $                | (1,694  | )      |              | $      | 60,850 |   |

|                                             |   | December 31, |     |   | December 31, |   |
|--------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|
|                                             |   | 2010              |     |   | 2009              |   |
| Allowance for loan losses                        |   | $                 | 35,729   |   |              | $      | 33,514 |   |
| Goodwill and core deposit intangibles            |   |              | 17,339   |   |              |   | 20,996 |   |
| General business credits                         |   |              | 19,135   |   |              |   | 18,088 |   |
| Net operating loss carryforward                  |   |              | 52,505   |   |              |   | 15,910 |   |
| Other-than-temporary impairment                  |   |              | 9,841    |   |              |   | 9,560 |   |
| Alternative minimum tax credit carryforward      |   |              | 4,769    |   |              |   | 4,772 |   |
| Interest on non-accrual loans                    |   |              | 5,950    |   |              |   | 4,456 |   |
| Other real estate owned                          |   |              | 3,726    |   |              |   | 1,345 |   |
| Unrealized loss on securities available for sale |   |              | 2,004    |   |              |   | 2,815 |   |
| Postretirement liability                         |   |              | 1,568    |   |              |   | 1,849 |   |
| Building impairment                              |   |              | 577      |   |              |   | 619 |   |
| Other, net                                       |   |              | 638      |   |              |   | 795 |   |
| Total deferred tax assets                        |   |              | 153,781  |   |              |   | 114,719 |   |
|                                             |   |              |     |   |              |   |   |   |
| Premises and equipment                           |   |              | (3,169   | )      |              |   | (3,827 | ) |
| Direct financing and leveraged leases            |   |              |     |   |              |   | (3,625 | ) |
| FHLB dividend                                    |   |              | (1,237   | )      |              |   | (1,478 | ) |
| Partnership income                               |   |              | (1,147   | )      |              |   | (1,383 | ) |
| Fair value adjustments from acquisitions         |   |              | (171     | )      |              |   | (262 | ) |
| Total deferred tax liabilities                   |   |              | (5,724   | )      |              |   | (10,575 | ) |
|                                             |   |              |     |   |              |   |   |   |
| Net temporary differences                        |   |              | 148,057  |   |              |   | 104,144 |   |
| Valuation allowance                              |   |              | (148,057 | )      |              |   | (104,144 | ) |
| Net deferred tax asset (liability)               |   | $                 | -        |   |              | $      | - |   |

----

|                                        |   | December 31, |   |   | December 31, |   |
|---------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                        |   | 2010              |   |   | 2009              |   |
| Balance at January 1                        |   | $                 | 95     |   |              | $      | - |   |
| Additions for tax positions of prior years  |   |              |   |   |              |   | 315 |   |
| Reductions for tax positions of prior years |   |              | (95    | )      |              |   | (104 | ) |
| Reductions due to statute of limitations    |   |              |   |   |              |   | (116 | ) |
| Balance at December 31                      |   |              | -      |   |              |   | 95 |   |

|                                                                     |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                     |   |   |   |   |   |   |
| A summary of selected data related to short-term borrowed funds follows: |   |   |   |   |   |   |
| Average amount outstanding                                               |   | $      | 59,685 |   |   | $      | 223,151 |   |
| Maximum amount at any month-end                                          |   |   | 66,058 |   |   |   | 493,097 |   |
| Weighted average interest rate:                                          |   |   |   |   |   |   |   |   |
| During year                                                              |   |   | 0.33   | %      |   |   | 0.75 | % |
| End of year                                                              |   |   | 0.28   | %      |   |   | 0.30 | % |

----

|                                                                             |   | 2010    |    |   | 2009   |    |
|----------------------------------------------------------------------------------|--------|---------|---------|--------|--------|---------|
| Federal Home Loan Bank (FHLB) Advances                                           |   |    |    |   |   |    |   |   |
| Fixed maturity advances (weighted average rate of 2.78% and  2.53%     |   | $  | 114,000 |   |   | $  |  126,004  |   |
| as of December 31, 2010 and 2009, respectively)                                  |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Securities sold under repurchase agreements with maturities                      |   |    | 80,000  |   |   |    | 80,000 |   |
| at various dates through 2013 (weighted average rate of 4.60%                    |   |    |    |   |   |    |   |   |
| and 3.29% as of December 31, 2010 and 2009, respectively)                        |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Note payable, secured by equipment, with a fixed interest rate of 7.26%,         |   |    | 1,425   |   |   |    | 2,645 |   |
| due at various dates through 2012                                                |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Subordinated debt, unsecured, with a floating interest rate equal to three-      |   |    | 10,000  |   |   |    | 10,000 |   |
| month LIBOR plus 3.20%, with a maturity date of April 24, 2013                   |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Subordinated debt, unsecured, with a floating interest rate equal to three-      |   |    | 4,000   |   |   |    | 4,000 |   |
| month LIBOR plus 2.85%, with a maturity date of April 7, 2014                    |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Floating Rate Capital Securities, with an interest rate equal to six-month       |   |    | 18,557  |   |   |    | 18,557 |   |
| LIBOR plus 3.75%, with a maturity date of July 25, 2031, and callable            |   |    |    |   |   |    |   |   |
| effective July 25, 2011, at par  *                                     |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Floating Rate Capital Securities, with an interest rate equal to three-month     |   |    | 35,568  |   |   |    | 35,568 |   |
| LIBOR plus 3.10%, with a maturity date of June 26, 2033, and callable            |   |    |    |   |   |    |   |   |
| quarterly, at par  *                                                   |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Floating Rate Capital Securities, with an interest rate equal to three-month     |   |    | 20,619  |   |   |    | 20,619 |   |
| LIBOR plus 1.57%, with a maturity date of June 30,  2037, and callable |   |    |    |   |   |    |   |   |
| effective June 30, 2012, at par  *                                     |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Floating Rate Capital Securities, with an interest rate equal to three-month     |   |    | 10,310  |   |   |    | 10,310 |   |
| LIBOR plus 1.70%, with a maturity date of December 15, 2036, and callable        |   |    |    |   |   |    |   |   |
| effective December 15, 2011, at par  *                                 |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Senior unsecured debt guaranteed by FDIC under the TLGP, with a fixed            |   |    | 50,000  |   |   |    | 50,000 |   |
| rate of 2.625%, with a maturity date of March 30, 2012                           |   |    |    |   |   |    |   |   |
|                                                                             |   |    |    |   |   |    |   |   |
| Other                                                                            |   |    | 3,368   |   |   |    | 3,368 |   |
| Total long-term borrowings                                                       |   | $       | 347,847 |   |   | $       | 361,071 |   |

| * | Payment of interest has been deferred since September 2009. |
|---|-------------------------------------------------------------|

| 2011                     |   |   | 13,311  |   |
|--------------------------|--------|--------|---------|--------|
| 2012                     |   |   | 120,482 |   |
| 2013                     |   |   | 110,000 |   |
| 2014                     |   |   | 4,000   |   |
| Thereafter               |   |   | 100,054 |   |
| Total principal payments |   | $      | 347,847 |   |

----

----

|                                     |   |   |    |   |              |   |   |                       |   |   |           |   |   | Minimum |   |
|------------------------------------------|--------|--------|---------|--------|-------------------|--------|--------|----------------------------|--------|--------|----------------|--------|--------|---------|--------|
|                                     |   |   |    |   |              |   |   | Minimum Ratios For Capital |   |   | Capital Ratios |   |
|                                     |   | Actual |    |   | Adequacy Purposes |   |   | Under Capital Directive    |   |
|                                     |   | Amount |    |   | Ratio             |   |   | Amount                     |   |   | Ratio          |   |   | Amount  |   |   | Ratio |   |
| As of December 31, 2010                  |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |
| Consolidated                             |   | $      | (17,957 | )      |              |   | -1.26  | %                          |   | $      | 114,117        |   |   |    | 8.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 104,322 |   |              |   | 7.32   | %                          |   |   | 114,015        |   |   |    | 8.00   | % |   |   | 163,896 |   |   |   | 11.50 | % |
|                                     |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | (17,957 | )      |              |   | -1.26  | %                          |   | $      | 57,058         |   |   |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 85,529  |   |              |   | 6.00   | %                          |   |   | 57,007         |   |   |    | 4.00   | % |   |   | 85,511 |   |   |   | 6.00 | % |
|                                     |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Average Assets)       |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | (17,957 | )      |              |   | -0.70  | %                          |   | $      | 102,527        |   |   |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 85,529  |   |              |   | 3.34   | %                          |   |   | 102,288        |   |   |    | 4.00   | % |   |   | 204,576 |   |   |   | 8.00 | % |

|                                     |   |   |    |   |              |   |   |                       |   |   |           |   |   | Minimum |   |
|------------------------------------------|--------|--------|---------|--------|-------------------|--------|--------|----------------------------|--------|--------|----------------|--------|--------|---------|--------|
|                                     |   |   |    |   |              |   |   | Minimum Ratios For Capital |   |   | Capital Ratios |   |
|                                     |   | Actual |    |   | Adequacy Purposes |   |   | To Be Well Capitalized     |   |
|                                     |   | Amount |    |   | Ratio             |   |   | Amount                     |   |   | Ratio          |   |   | Amount  |   |   | Ratio |   |
| As of December 31, 2009                  |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |
| Consolidated                             |   | $      | 221,590 |   |              |   | 9.94   | %                          |   | $      | 178,377        |   |   |    | 8.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 224,127 |   |              |   | 10.05  | %                          |   |   | 178,377        |   |   |    | 8.00   | % |   |   | 222,971 |   |   |   | 10.00 | % |
|                                     |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | 137,658 |   |              |   | 6.17   | %                          |   | $      | 89,189         |   |   |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 195,416 |   |              |   | 8.76   | %                          |   |   | 89,188         |   |   |    | 4.00   | % |   |   | 133,783 |   |   |   | 6.00 | % |
|                                     |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Average Assets)       |   |   |    |   |              |   |   |                       |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | 137,658 |   |              |   | 4.43   | %                          |   | $      | 124,397        |   |   |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 195,416 |   |              |   | 6.30   | %                          |   |   | 124,136        |   |   |    | 4.00   | % |   |   | 155,170 |   |   |   | 5.00 | % |

----

|                                          |   | December 31, 2010 |      |   |                  |   |
|-----------------------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|
|                                          |   |                   |      |   |                  |   |   | Weighted Average |   |
|                                          |   |                   |      |   | Weighted Average |   |   | Remaining Term |   |
|                                          |   | Shares                 |      |   | Exercise Price        |   |   | (In years) |   |
|                                          |   |                   |      |   |                  |   |   |   |   |
| Options/SARs outstanding at December 31, 2009 |   |                   | 1,099,536 |   |                  | $      | 20.53 |   |   |   |   |
| Options/SARs granted                          |   |                   | -         |   |                  |   | - |   |   |   |   |
| Options/SARs exercised                        |   |                   | -         |   |                  |   | - |   |   |   |   |
| Options/SARs forfeited/expired                |   |                   | (723,543  | )      |                  |   | 20.49 |   |   |   |   |
|                                          |   |                   |      |   |                  |   |   |   |   |   |   |
| Options/SARs outstanding at December 31, 2010 |   |                   | 375,993   |   |                  | $      | 20.58 |   |   |   | 4.4 |   |
|                                          |   |                   |      |   |                  |   |   |   |   |   |   |   |
| Options/SARs exercisable at December 31, 2010 |   |                   | 366,225   |   |                  | $      | 20.64 |   |   |   | 4.3 |   |

|                                             |   |   |    |   | Weighted-Average |   |
|--------------------------------------------------|--------|--------|---------|--------|------------------|--------|
|                                             |   |   |    |   | Grant-Date       |   |
|                                             |   | Shares |    |   | Fair Value       |   |
|                                             |   |   |    |   |             |   |
| Restricted shares outstanding, December 31, 2009 |   |   | 226,113 |   |             | $      | 4.94 |   |
| Shares granted                                   |   |   | 288,000 |   |             | $      | 0.76 |   |
| Shares vested                                    |   |   | (54,882 | )      |             |   |   |   |
| Shares forfeited                                 |   |   | (81,494 | )      |             |   |   |   |
|                                             |   |   |    |   |             |   |   |   |
| Restricted shares outstanding, December 31, 2010 |   |   | 377,737 |   |             | $      | 1.46 |   |

----

----

----

|                                    |   | Quoted Prices |   |   |        |   |    |         |   |   |                    |   |
|-----------------------------------------|--------|--------------------|--------|--------|-------------|--------|---------|--------------|--------|--------|-------------------------|--------|
|                                    |   | in Active     |   |   |        |   |    |         |   |   |                    |   |
|                                    |   | Markets for   |   |   | Significant |   |    |         |   |   |                    |   |
|                                    |   | Identical          |   |   | Other       |   |    | Significant  |   |   |                    |   |
|                                    |   | Assets and    |   |   | Observable  |   |    | Unobservable |   |   |                    |   |
|                                    |   | Liabilities        |   |   | Inputs      |   |    | Inputs       |   |   | Balance as of |   |
|                                    |   | (Level 1)          |   |   | (Level 2)   |   |    | (Level 3)    |   |   | December 31, 2010       |   |
| Assets                                  |   |               |   |   |        |   |    |         |   |   |                    |   |
| Securities, available for sale          |   |               |   |   |        |   |    |         |   |   |                    |   |
| U.S. Treasuries                         |   | $                  | -      |   |        | $      | 18,739  |         |   | $      | -                       |   |   | $ | 18,739 |   |
| U.S. Government agencies                |   |               | -      |   |        |   | 106     |         |   |   | -                       |   |   |   | 106 |   |
| Collateralized mortgage obligations:    |   |               |   |   |        |   |    |         |   |   |                    |   |   |   |   |   |
| Agency                                  |   |               |   |   |        |   | 250,057 |         |   |   |                    |   |   |   | 250,057 |   |
| Private Label                           |   |               | -      |   |        |   | 16,155  |         |   |   | -                       |   |   |   | 16,155 |   |
| Mortgage backed securities: residential |   |               |   |   |        |   | 202,752 |         |   |   |                    |   |   |   | 202,752 |   |
| Trust Preferred                         |   |               | -      |   |        |   | 9,776   |         |   |   | 973                     |   |   |   | 10,749 |   |
| State & political subdivisions      |   |               | -      |   |        |   | 21,679  |         |   |   | -                       |   |   |   | 21,679 |   |
| Other securities                        |   |               | -      |   |        |   | 8,667   |         |   |   |                    |   |   |   | 8,667 |   |
| Total securities, available for sale    |   | $                  | -      |   |        | $      | 527,931 |         |   | $      | 973                     |   |   | $ | 528,904 |   |
|                                    |   |               |   |   |        |   |    |         |   |   |                    |   |   |   |   |   |
| Securities, held for trading            |   |               |   |   |        |   |    |         |   |   |                    |   |   |   |   |   |
| Trust Preferred                         |   | $                  | -      |   |        | $      | 329     |         |   | $      | -                       |   |   | $ | 329 |   |
|                                    |   |               |   |   |        |   |    |         |   |   |                    |   |   |   |   |   |
| Derivatives                             |   |               | -      |   |        |   | 7,018   |         |   |   | -                       |   |   |   | 7,018 |   |
|                                    |   |               |   |   |        |   |    |         |   |   |                    |   |   |   |   |   |
| Liabilities                             |   |               |   |   |        |   |    |         |   |   |                    |   |   |   |   |   |
| Derivatives                             |   | $                  | -      |   |        | $      | 7,008   |         |   | $      | -                       |   |   | $ | 7,008 |   |

----

|                                 |   | Quoted Prices |   |   |        |   |    |         |   |   |              |   |
|--------------------------------------|--------|--------------------|--------|--------|-------------|--------|---------|--------------|--------|--------|-------------------|--------|
|                                 |   | in Active     |   |   |        |   |    |         |   |   |              |   |
|                                 |   | Markets for   |   |   | Significant |   |    |         |   |   |              |   |
|                                 |   | Identical          |   |   | Other       |   |    | Significant  |   |   |              |   |
|                                 |   | Assets and    |   |   | Observable  |   |    | Unobservable |   |   |              |   |
|                                 |   | Liabilities        |   |   | Inputs      |   |    | Inputs       |   |   | Balance as of     |   |
|                                 |   | (Level 1)          |   |   | (Level 2)   |   |    | (Level 3)    |   |   | December 31, 2009 |   |
| Assets                               |   |               |   |   |        |   |    |         |   |   |              |   |
| Securities, available for sale       |   |               |   |   |        |   |    |         |   |   |              |   |
| U.S. Treasuries                      |   | $                  | -      |   |        | $      | 8,833   |         |   | $      | -                 |   |   | $ | 8,833 |   |
| U.S. Government agencies             |   |               | -      |   |        |   | 279     |         |   |   | -                 |   |   |   | 279 |   |
| Collateralized mortgage obligations: |   |               |   |   |        |   |    |         |   |   |              |   |   |   |   |   |
| Agency                               |   |               | -      |   |        |   | 118,431 |         |   |   | -                 |   |   |   | 118,431 |   |
| Private Label                        |   |               | -      |   |        |   | 23,229  |         |   |   | -                 |   |   |   | 23,229 |   |
| Mortgage backed securities           |   |               | -      |   |        |   | 167,232 |         |   |   | -                 |   |   |   | 167,232 |   |
| Trust Preferred                      |   |               | -      |   |        |   | 8,450   |         |   |   | 1,588             |   |   |   | 10,038 |   |
| State & political subdivisions   |   |               | -      |   |        |   | 25,040  |         |   |   | -                 |   |   |   | 25,040 |   |
| Other securities                     |   |               | -      |   |        |   | 8,637   |         |   |   | -                 |   |   |   | 8,637 |   |
| Total securities, available for sale |   | $                  | -      |   |        | $      | 360,131 |         |   | $      | 1,588             |   |   | $ | 361,719 |   |
|                                 |   |               |   |   |        |   |    |         |   |   |              |   |   |   |   |   |
| Securities, held for trading         |   |               |   |   |        |   |    |         |   |   |              |   |   |   |   |   |
| U.S. Treasuries                      |   | $                  | -      |   |        | $      | -       |         |   | $      | -                 |   |   | $ | - |   |
| Trust Preferred                      |   |               | -      |   |        |   | 36      |         |   |   | -                 |   |   |   | 36 |   |
| Total securities, held for trading   |   | $                  | -      |   |        | $      | 36      |         |   | $      | -                 |   |   | $ | 36 |   |
|                                 |   |               |   |   |        |   |    |         |   |   |              |   |   |   |   |   |
| Derivatives                          |   |               | -      |   |        |   | 5,945   |         |   |   | -                 |   |   |   | 5,945 |   |
|                                 |   |               |   |   |        |   |    |         |   |   |              |   |   |   |   |   |
| Liabilities                          |   |               |   |   |        |   |    |         |   |   |              |   |   |   |   |   |
| Derivatives                          |   | $                  | -      |   |        | $      | 6,307   |         |   | $      | -                 |   |   | $ | 6,307 |   |

|                                 |   | Fair Value Measurements at December 31, 2010 |   |
|--------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                 |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
|                                 |   | Quoted Prices                                                         |   |   |   |   |   |   |   |   |   |   |
|                                 |   | in Active                                                             |   |   |   |   |   |   |   |   |   |   |
|                                 |   | Markets for                                                           |   |   | Significant |   |   |   |   |   |   |   |
|                                 |   | Identical                                                                  |   |   | Other |   |   | Significant |   |   |   |   |
|                                 |   | Assets and                                                            |   |   | Observable |   |   | Unobservable |   |   |   |   |
|                                 |   | Liabilities                                                                |   |   | Inputs |   |   | Inputs |   |   | Balance as of |   |
|                                 |   | (Level 1)                                                             |   |   | (Level 2) |   |   | (Level 3) |   |   | December 31, 2010 |   |
| Assets                               |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                       |   | $                                                                          | -      |   |   | $ | - |   |   | $ | 164,023 |   |   | $ | 164,023 |   |
| Loans held for sale                  |   |                                                                       | -      |   |   |   | 1,899 |   |   |   | - |   |   |   | 1,899 |   |
| Other real estate owned              |   |                                                                       | -      |   |   |   | - |   |   |   | 49,238 |   |   |   | 49,238 |   |
| Premises and equipment held for sale |   |                                                                       | -      |   |   |   | - |   |   |   | 1,387 |   |   |   | 1,387 |   |
|                                 |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                          |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits held for sale               |   | $                                                                          | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

----

|                                 |   | Fair Value Measurements at December 31, 2009 |   |
|--------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                 |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
|                                 |   | Quoted Prices                                                         |   |   |   |   |   |   |   |   |   |   |
|                                 |   | in Active                                                             |   |   |   |   |   |   |   |   |   |   |
|                                 |   | Markets for                                                           |   |   | Significant |   |   |   |   |   |   |   |
|                                 |   | Identical                                                                  |   |   | Other |   |   | Significant |   |   |   |   |
|                                 |   | Assets and                                                            |   |   | Observable |   |   | Unobservable |   |   |   |   |
|                                 |   | Liabilities                                                                |   |   | Inputs |   |   | Inputs |   |   | Balance as of |   |
|                                 |   | (Level 1)                                                             |   |   | (Level 2) |   |   | (Level 3) |   |   | December 31, 2009 |   |
| Assets                               |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                       |   | $                                                                          | -      |   |   | $ | - |   |   | $ | 92,715 |   |   | $ | 92,715 |   |
| Loans held for sale                  |   |                                                                       | -      |   |   |   | 93,572 |   |   |   | - |   |   |   | 93,572 |   |
| Other real estate owned              |   |                                                                       | -      |   |   |   | - |   |   |   | 29,317 |   |   |   | 29,317 |   |
| Premises and equipment held for sale |   |                                                                       | -      |   |   |   | - |   |   |   | 4,249 |   |   |   | 4,249 |   |
|                                 |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                          |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits held for sale               |   | $                                                                          | -      |   |   | $ | 97,207 |   |   | $ | - |   |   | $ | 97,207 |   |

|                                                  |   | Fair Value Measurements Using Significant |   |
|-------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                  |   | Unobservable Inputs (Level 3)                  |   |
|                                                  |   |                                                          |   |   |   |   |
|                                                  |   | Securities                                                    |   |   |   |   |
|                                                  |   | Available for sale                                  |   |   | Total |   |
|                                                  |   |                                                          |   |   |   |   |
| Beginning Balance at January 1, 2010                  |   | $                                                             | 1,588  |   |   | $ | 1,588 |   |
| Transfers in and/or out of Level 3                    |   |                                                          | -      |   |   |   | - |   |
| Gains (Losses) included in other comprehensive income |   |                                                          | 487    |   |   |   | 487 |   |
| Gains (Losses) included in earnings                   |   |                                                          | (1,102 | ) |   |   | (1,102 | ) |
| Ending Balance at December 31, 2010                   |   | $                                                             | 973    |   |   | $ | 973 |   |

|                                                  |   | Fair Value Measurements Using Significant |    |
|-------------------------------------------------------|--------|---------------------------------------------------------------|---------|
|                                                  |   | Unobservable Inputs (Level 3)                  |    |
|                                                  |   |                                                          |    |   |   |   |
|                                                  |   | Securities                                                    |    |   |   |   |
|                                                  |   | Available for sale                                  |    |   | Total |   |
|                                                  |   |                                                          |    |   |   |   |
| Beginning Balance at January 1, 2009                  |   | $                                                             | 17,535  |   |   | $ | 17,535 |   |
| Transfers in and/or out of Level 3                    |   |                                                          | (250    | ) |   |   | (250 | ) |
| Gains (Losses) included in other comprehensive income |   |                                                          | 131     |   |   |   | 131 |   |
| Gains (Losses) included in earnings                   |   |                                                          | (15,828 | ) |   |   | (15,828 | ) |
| Ending Balance at December 31, 2009                   |   | $                                                             | 1,588   |   |   | $ | 1,588 |   |

----

|                            |   | December 31, 2010 |      |   | December 31, 2009 |   |
|---------------------------------|--------|-----------------------------|-----------|--------|-----------------------------|--------|
|                            |   | Carrying                    |      |   | Fair                        |   |   | Carrying |   |   | Fair |   |
|                            |   | Amount                      |      |   | Value                       |   |   | Amount |   |   | Value |   |
|                            |   |                        |      |   |                        |   |   |   |   |   |   |   |
| Financial Assets:               |   |                        |      |   |                        |   |   |   |   |   |   |   |
| Cash and short-term investments |   | $                           | 486,812   |   |                        | $      | 486,812 |   |   | $ | 354,574 |   |   | $ | 354,574 |   |
| Loans-net of allowance          |   |                        | 1,093,866 |   |                        |   | 1,095,070 |   |   |   | 1,838,347 |   |   |   | 1,840,053 |   |
| Accrued interest receivable     |   |                        | 7,561     |   |                        |   | 7,561 |   |   |   | 9,336 |   |   |   | 9,336 |   |
|                            |   |                        |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:          |   |                        |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                        |   | $                           | 1,989,879 |   |                        | $      | 2,009,837 |   |   | $ | 2,267,899 |   |   | $ | 2,288,866 |   |
| Short-term borrowings           |   |                        | 59,893    |   |                        |   | 59,893 |   |   |   | 62,114 |   |   |   | 62,114 |   |
| Long-term borrowings            |   |                        | 347,847   |   |                        |   | 352,149 |   |   |   | 361,071 |   |   |   | 362,271 |   |
| Accrued interest payable        |   |                        | 8,710     |   |                        |   | 8,710 |   |   |   | 8,200 |   |   |   | 8,200 |   |

| Year Ending December 31, |   |   |   |
|--------------------------|--------|--------|--------|
| 2011                     |   | $      | 1,436  |   |
| 2012                     |   |   | 1,255  |   |
| 2013                     |   |   | 1,186  |   |
| 2014                     |   |   | 1,055  |   |
| 2015                     |   |   | 974    |   |
| Thereafter               |   |   | 5,399  |   |
| Total                    |   | $      | 11,305 |   |

----

|                         |   |               |    |   |            |   |   |       |   |   | Ranges of Rates |   |
|------------------------------|--------|--------------------|---------|--------|-----------------|--------|--------|------------|--------|--------|---------------------------|--------|
|                         |   | Variable Rate |    |   | Fixed Rate |   |   | Total      |   |   | on Fixed Rate   |   |
|                         |   | Commitment         |    |   | Commitment      |   |   | Commitment |   |   | Commitments               |   |
|                         |   |               |    |   |            |   |   |       |   |   |                      |   |
| Commitments to extend credit |   | $                  | 227,228 |   |            | $      | 34,563 |       |   | $      | 261,791                   |   |   |   | 0.00% - 21.00 | % |
|                         |   |               |    |   |            |   |   |       |   |   |                      |   |   |   |   |   |
| Standby letters of credit    |   |               | 10,491  |   |            |   | 226    |       |   |   | 10,717                    |   |   |   | 0.00% - 10.00 | % |

----

|                                               |   | December 31, 2010 |   |   | December 31, 2009 |   |
|----------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                               |   | Assets                 |   |   | (Liabilities)          |   |   | Derivative |   |   | Assets |   |   | (Liabilities) |   |   | Derivative |   |
|                                               |   | Carrying               |   |   | Carrying               |   |   | Net Carrying |   |   | Carrying |   |   | Carrying |   |   | Net Carrying |   |
|                                               |   | Value                  |   |   | Value                  |   |   | Value |   |   | Value |   |   | Value |   |   | Value |   |
|                                               |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives designated as hedging instruments:     |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                            |   | $                      | 6,630  |   |                   | $      | (7,008 | ) |   | $ | (378 | ) |   | $ | 5,963 |   |   | $ | (6,307 | ) |   | $ | (344 | ) |
|                                               |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments: |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage banking derivatives                       |   |                   | 31     |   |                   |   | (149 | ) |   |   | (118 | ) |   |   | 91 |   |   |   | (109 | ) |   |   | (18 | ) |

----

|                                                |   | Postretirement Benefits |   |
|-----------------------------------------------------|--------|------------------------------|--------|
|                                                |   | 2010                         |   |   | 2009 |   |
|                                                |   |                         |   |   |   |   |
| Change in Fair Value of Plan Assets:                |   |                         |   |   |   |   |
| Balance at beginning of year                        |   | $                            | -      |   |   | $ | - |   |
| Employer contributions                              |   |                         | 239    |   |   |   | 153 |   |
| Benefits paid, net of retiree contributions         |   |                         | (239   | ) |   |   | (153 | ) |
|                                                |   |                         |   |   |   |   |   |   |
| Balance at end of year                              |   | $                            | -      |   |   | $ | - |   |
|                                                |   |                         |   |   |   |   |   |   |
| Change in Accumulated Projected Benefit Obligation: |   |                         |   |   |   |   |   |   |
| Balance at beginning of year                        |   | $                            | 4,773  |   |   | $ | 2,427 |   |
| Service cost                                        |   |                         | 426    |   |   |   | 198 |   |
| Interest costs                                      |   |                         | 256    |   |   |   | 180 |   |
| Actuarial (gains) losses                            |   |                         | (1,201 | ) |   |   | 2,177 |   |
| Adjustment for prior year benefits paid             |   |                         | 191    |   |   |   | (56 | ) |
| Benefits paid, net of retiree contributions         |   |                         | (239   | ) |   |   | (153 | ) |
|                                                |   |                         |   |   |   |   |   |   |
| Balance at end of year                              |   | $                            | 4,206  |   |   | $ | 4,773 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Funded status-(accrued) prepaid benefit cost        |   | $                            | (4,206 | ) |   | $ | (4,773 | ) |

|                                              |   | Postretirement Benefits |   |
|---------------------------------------------------|--------|------------------------------|--------|
|                                              |   | 2010                         |   |   | 2009 |   |
|                                              |   |                         |   |   |   |   |
| Service cost - benefits earned during the period  |   | $                            | 426    |   |   | $ | 198 |   |
| Interest cost on projected benefit obligation     |   |                         | 256    |   |   |   | 180 |   |
| Amortization of prior service costs               |   |                         | 34     |   |   |   | 34 |   |
| Amortization of net (gain) loss                   |   |                         | 206    |   |   |   | 56 |   |
| Net periodic benefit cost                         |   |                         | 922    |   |   |   | 468 |   |
| Net loss (gain)                                   |   |                         | (1,201 | ) |   |   | 2,177 |   |
| Prior service (cost) credit                       |   |                         | (34    | ) |   |   | (34 | ) |
| Amortization of gain (loss)                       |   |                         | (206   | ) |   |   | (56 | ) |
| Total recognized in other comprehensive income    |   |                         | (1,441 | ) |   |   | 2,087 |   |
| Total recognized in net periodic benefit cost and |   |                         |   |   |   |   |   |   |
| other comprehensive income                        |   | $                            | (519   | ) |   | $ | 2,555 |   |

| Year ending December 31, |   |   |   |
|--------------------------|--------|--------|--------|
| 2011                     |   | $      | 231    |   |
| 2012                     |   |   | 254    |   |
| 2013                     |   |   | 268    |   |
| 2014                     |   |   | 300    |   |
| 2015                     |   |   | 316    |   |
| Thereafter               |   |   | 2,039  |   |

----

| For the Year Ended                  |   |    |      |   |   |   |   |   |   |
|----------------------------------------------------|--------|---------|-----------|--------|--------|--------|--------|--------|--------|
| December 31, 2010                        |   | Banking |      |   | Other  |   |   | Total  |   |
| Interest income                                    |   | $       | 91,868    |   |   | $      | 95     |   |   | $ | 91,963 |   |
| Interest expense                                   |   |    | 39,181    |   |   |   | 3,208  |   |   |   | 42,389 |   |
| Net interest income                                |   |    | 52,687    |   |   |   | (3,113 | )      |   |   | 49,574 |   |
| Provision for loan losses                          |   |    | 134,571   |   |   |   | -      |   |   |   | 134,571 |   |
| Other income                                       |   |    | 61,169    |   |   |   | 281    |   |   |   | 61,450 |   |
| Other expense                                      |   |    | 96,668    |   |   |   | 1,174  |   |   |   | 97,842 |   |
| Earnings (Loss) before income taxes                |   |    | (117,383  | )      |   |   | (4,006 | )      |   |   | (121,389 | ) |
| Income taxes (benefit)                             |   |    | (1,451    | )      |   |   | (243   | )      |   |   | (1,694 | ) |
| Net income (loss)                                  |   |    | (115,932  | )      |   |   | (3,763 | )      |   |   | (119,695 | ) |
| Preferred stock dividends and discount accretion   |   |    | -         |   |   |   | 4,527  |   |   |   | 4,527 |   |
| Net income (loss) available to common shareholders |   | $       | (115,932  | )      |   | $      | (8,290 | )      |   | $ | (124,222 | ) |
|                                               |   |    |      |   |   |   |   |   |   |   |   |   |
| Segment assets                                     |   | $       | 2,416,159 |   |   | $      | 4,626  |   |   | $ | 2,420,785 |   |

| For the Year Ended                  |   |    |      |   |   |   |    |   |   |
|----------------------------------------------------|--------|---------|-----------|--------|--------|--------|---------|--------|--------|
| December 31, 2009                        |   | Banking |      |   | Other  |   |    | Total  |   |
| Interest income                                    |   | $       | 121,338   |   |   | $      | 128     |   |   | $ | 121,466 |   |
| Interest expense                                   |   |    | 51,772    |   |   |   | 3,658   |   |   |   | 55,430 |   |
| Net interest income                                |   |    | 69,566    |   |   |   | (3,530  | )      |   |   | 66,036 |   |
| Provision for loan losses                          |   |    | 113,368   |   |   |   | -       |   |   |   | 113,368 |   |
| Other income                                       |   |    | 29,068    |   |   |   | (5,900  | )      |   |   | 23,168 |   |
| Other expense                                      |   |    | 104,589   |   |   |   | 1,580   |   |   |   | 106,169 |   |
| Earnings (Loss) before income taxes                |   |    | (119,323  | )      |   |   | (11,010 | )      |   |   | (130,333 | ) |
| Income taxes (benefit)                             |   |    | 56,470    |   |   |   | 4,380   |   |   |   | 60,850 |   |
| Net income (loss)                                  |   | $       | (175,793  | )      |   | $      | (15,390 | )      |   | $ | (191,183 | ) |
| Preferred stock dividends and discount accretion   |   |    | -         |   |   |   | 3,798   |   |   |   | 3,798 |   |
| Net income (loss) available to common shareholders |   | $       | (175,793  | )      |   |   | (19,188 | )      |   | $ | (194,981 | ) |
|                                               |   |    |      |   |   |   |    |   |   |   |   |   |
| Segment assets                                     |   | $       | 2,919,085 |   |   | $      | 2,856   |   |   | $ | 2,921,941 |   |

----

| CONDENSED BALANCE SHEETS                      |   | December 31, |     |
|-----------------------------------------------|--------|--------------|----------|
|                                          |   | 2010         |     |   | 2009 |   |
|                                          |   |         |     |   |   |   |
| ASSETS                                        |   |         |     |   |   |   |
| Cash and cash equivalents                     |   | $            | 1,699    |   |   | $ | 5,294 |   |
| Investment in banking subsidiaries            |   |         | 84,643   |   |   |   | 196,579 |   |
| Investment in other subsidiaries              |   |         | 503      |   |   |   | 360 |   |
| Securities available for sale                 |   |         | 2,554    |   |   |   | 2,554 |   |
| Other assets                                  |   |         | 1,424    |   |   |   | 2,735 |   |
|                                          |   |         |     |   |   |   |   |   |
| TOTAL ASSETS                                  |   | $            | 90,823   |   |   | $ | 207,522 |   |
|                                          |   |         |     |   |   |   |   |   |
| LIABILITIES                                   |   |         |     |   |   |   |   |   |
| Long-term borrowings                          |   | $            | 99,054   |   |   | $ | 99,054 |   |
| Dividends payable                             |   |         | 6,528    |   |   |   | 1,567 |   |
| Other liabilities                             |   |         | 4,080    |   |   |   | 4,555 |   |
| Total liabilities                             |   |         | 109,662  |   |   |   | 105,176 |   |
|                                          |   |         |     |   |   |   |   |   |
| SHAREHOLDERS' EQUITY                          |   |         |     |   |   |   |   |   |
| Preferred Stock                               |   |         | 82,359   |   |   |   | 82,011 |   |
| Common stock                                  |   |         | 21,053   |   |   |   | 20,848 |   |
| Additional paid-in capital                    |   |         | 217,174  |   |   |   | 216,939 |   |
| Retained earnings                             |   |         | (334,593 | ) |   |   | (210,371 | ) |
| Accumulated other comprehensive income (loss) |   |         | (4,832   | ) |   |   | (7,081 | ) |
| Total shareholders' equity                    |   |         | (18,839  | ) |   |   | 102,346 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    |   | $            | 90,823   |   |   | $ | 207,522 |   |

| CONDENSED STATEMENTS OF INCOME                  |   | Year Ended December 31, |     |
|----------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                           |   | 2010                                   |     |   | 2009 |   |
| Dividends from banking subsidiaries                            |   | $                                      | -        |   |   | $ | - |   |
| Dividends from other subsidiaries                              |   |                                   | -        |   |   |   | 400 |   |
| Other income                                                   |   |                                   | 86       |   |   |   | (5,903 | ) |
|                                                           |   |                                   |     |   |   |   |   |   |
| Total income                                                   |   |                                   | 86       |   |   |   | (5,503 | ) |
|                                                           |   |                                   |     |   |   |   |   |   |
| Interest expense                                               |   |                                   | 3,212    |   |   |   | 3,803 |   |
| Other expenses                                                 |   |                                   | 1,039    |   |   |   | 1,495 |   |
|                                                           |   |                                   |     |   |   |   |   |   |
| Total expenses                                                 |   |                                   | 4,251    |   |   |   | 5,298 |   |
|                                                           |   |                                   |     |   |   |   |   |   |
| Income before income taxes and equity in                       |   |                                   |     |   |   |   |   |   |
| undistributed earnings of subsidiaries                         |   |                                   | (4,165   | ) |   |   | (10,801 | ) |
|                                                           |   |                                   |     |   |   |   |   |   |
| Income taxes (benefit)                                         |   |                                   | (264     | ) |   |   | 4,425 |   |
|                                                           |   |                                   |     |   |   |   |   |   |
| Income before equity in undistributed earnings of subsidiaries |   |                                   | (3,901   | ) |   |   | (15,226 | ) |
|                                                           |   |                                   |     |   |   |   |   |   |
| Equity in undistributed earnings of subsidiaries               |   |                                   | (115,794 | ) |   |   | (175,957 | ) |
|                                                           |   |                                   |     |   |   |   |   |   |
| Net income (loss)                                              |   |                                   | (119,695 | ) |   |   | (191,183 | ) |
| Preferred stock dividends and discount accretion               |   |                                   | 4,527    |   |   |   | 3,798 |   |
|                                                           |   |                                   |     |   |   |   |   |   |
| Net income (loss) available to common shareholders             |   | $                                      | (124,222 | ) |   | $ | (194,981 | ) |

----

|                                                          |   | Year Ended December 31, |     |
|---------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                          |   | 2010                                   |     |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                          |   |                                   |     |   |   |   |
| Net income (loss)                                             |   | $                                      | (119,695 | ) |   | $ | (191,183 | ) |
| Adjustments to reconcile net income (loss) to                 |   |                                   |     |   |   |   |   |   |
| net cash provided by operating activities:                    |   |                                   |     |   |   |   |   |   |
| Amortization and depreciation                                 |   |                                   | 160      |   |   |   | 161 |   |
| Employee benefit expenses                                     |   |                                   | 442      |   |   |   | 922 |   |
| Excess distributions (undistributed) earnings of subsidiaries |   |                                   | 115,795  |   |   |   | 175,180 |   |
| (Gain) loss on sale of premises and equipment                 |   |                                   | (523     | ) |   |   | - |   |
| Decrease in deferred taxes                                    |   |                                   | -        |   |   |   | 943 |   |
| (Increase) decrease in other assets                           |   |                                   | (78      | ) |   |   | 858 |   |
| (Decrease) increase in other liabilities                      |   |                                   | 4,485    |   |   |   | 7,437 |   |
| Net cash flows provided by (used in) operating activities     |   |                                   | 586      |   |   |   | (5,682 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES                          |   |                                   |     |   |   |   |   |   |
| Payments for investments in and advances to subsidiaries      |   |                                   | (1,750   | ) |   |   | (60,900 | ) |
| Proceeds from sale of premise                                 |   |                                   | 1,750    |   |   |   | (19 | ) |
| Net cash flows provided by (used in) investing activities     |   |                                   | -        |   |   |   | (60,919 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                          |   |                                   |     |   |   |   |   |   |
| Repayment of long-term borrowings                             |   |                                   | -        |   |   |   | (18,000 | ) |
| Proceeds  from issuance of common stock warrants    |   |                                   | -        |   |   |   | 7,999 |   |
| Proceeds from vesting of restricted shares, net               |   |                                   | (2       | ) |   |   | (317 | ) |
| Proceeds from issuance of TARP preferred stock                |   |                                   | -        |   |   |   | 82,011 |   |
| Dividends paid                                                |   |                                   | -        |   |   |   | (2,572 | ) |
| Accrued dividends on preferred stock                          |   |                                   | (4,179   | ) |   |   | (3,798 | ) |
| Net cash flows provided by (used in) financing activities     |   |                                   | (4,181   | ) |   |   | 65,323 |   |
| Net increase (decrease) in cash and cash equivalents          |   |                                   | (3,595   | ) |   |   | (1,278 | ) |
| Cash and cash equivalents at beginning of year                |   |                                   | 5,294    |   |   |   | 6,572 |   |
| Cash and cash equivalents at end of year                      |   | $                                      | 1,699    |   |   | $ | 5,294 |   |

----

----

| Documents Filed as Part of Form 10-K |
|--------------------------------------|
|                                 |   |
| 1.                                   | Financial Statements |
|                                 |   |
|                                 | Report of Independent Registered Public Accounting Firm |
|                                 | Consolidated Balance Sheets at December 31, 2010 and 2009 |
|                                 | Consolidated Statements of Operations for the years ended December 31, 2010 and 2009 |
|                                 | Consolidated Statements of Comprehensive Income for the years ended December 31, 2010 and 2009 |
|                                 | Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2010 and 2009 |
|                                 | Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009 |
|                                 | Notes to Consolidated Financial Statements |
|                                 |   |
| 2.                                   | Schedules |
|                                 |   |
|                                 | No schedules are included because they are not applicable or the required information is shown in the financial statements or the notes thereto. |
|                                 |   |
| 3.                                   | Exhibits |
|                                 |   |
|                                 | Exhibit Index is on page 95. |

----

|   | INTEGRA BANK CORPORATION                                                                          |   |
|--------|---------------------------------------------------------------------------------------------------|--------|
|   |                                                                                              |   |   |   |
|   | /s/ MICHAEL J. ALLEY                                                                              |   | 3/14/2011 |   |
|   | Michael J. Alley                                                                                  |   | Date |   |
|   | Chairman of the Board and Chief Executive Officer (Principal Executive Officer)                   |   |   |   |
|   |                                                                                              |   |   |   |
|   | /s/ MICHAEL B. CARROLL                                                                            |   | 3/14/2011 |   |
|   | Michael B. Carroll                                                                                |   | Date |   |
|   | Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |   |   |   |

----

|   | /s/ ROBERT L. GOOCHER  |   | 3/14/2011 |   |
|--------|------------------------|--------|-----------|--------|
|   | Robert L. Goocher      |   | Date      |   |
|   | Director               |   |      |   |
|   |                   |   |      |   |
|   | /s/ H. RAY HOOPS       |   | 3/14/2011 |   |
|   | H. Ray Hoops           |   | Date      |   |
|   | Director               |   |      |   |
|   |                   |   |      |   |
|   | /s/ THOMAS W. MILLER   |   | 3/14/2011 |   |
|   | Thomas W. Miller       |   | Date      |   |
|   | Director               |   |      |   |
|   |                   |   |      |   |
|   | /s/ RICHARD M. STIVERS |   | 3/14/2011 |   |
|   | Richard M. Stivers     |   | Date      |   |
|   | Director               |   |      |   |
|   |                   |   |      |   |
|   | /s/ WAYNE S. TROCKMAN  |   | 3/14/2011 |   |
|   | Wayne S. Trockman      |   | Date      |   |
|   | Director               |   |      |   |
|   |                   |   |      |   |
|   | /s/ DANIEL T. WOLFE    |   | 3/14/2011 |   |
|   | Daniel T. Wolfe        |   | Date      |   |
|   | Director               |   |      |   |

----

| EXHIBIT   |   |                                                                                                                                                                                                                                |
|-----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| NUMBER    |   | DESCRIPTION OF EXHIBIT                                                                                                                                                                                                              |
|      |   |                                                                                                                                                                                                                                |
| 3(a)(i)   |   | Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to Form 8-A/A dated June 12, 1998)                                                                                                                     |
| 3(a)(ii)  |   | Articles of Amendment dated May 17, 2000 (incorporated by reference to Exhibit 3(a) to Quarterly Report on Form 10-Q for the period ending September 30, 2000)                                                                      |
| 3(a)(iii) |   | Articles of Amendment dated July 18, 2001 (incorporated by reference to Exhibit 1 to the Current Report on Form 8-K dated July 18, 2001)                                                                                            |
| 3(a)(iv)  |   | Articles of Amendment dated February 25, 2009 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K dated March 2, 2009)                                                                                      |
| 3(a)(v)   |   | Articles of Amendment dated April 15, 2009 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K dated April 15, 2009)                                                                                        |
| 3(b)      |   | By-Laws (as amended through June 17, 2009 incorporated by reference to Exhibit 3.1 to Quarterly Report on Form 10-Q for the period ending June 30, 2009)                                                                            |
| 4(a)      |   | Form of Certificate for the Fixed Rate Cumulative Perpetual Preferred Stock, Series B (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K dated March 2, 2009)                                              |
| 4(b)      |   | Warrant for the Purchase of Shares of Common Stock of Integra Bank Corporation (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K dated March 2, 2009)                                                     |
| 10(a)*    |   | Integra Bank Corporation Employees' 401(K) Plan (2003 Restatement) (incorporated by reference to Exhibit 10(a) to Annual Report on Form 10-K for the fiscal year ended December 31, 2006)                                           |
| 10(b)*    |   | Change in Control Benefits Agreement dated May 22, 2007, between Integra Bank Corporation and Roger M. Duncan (incorporated by reference to Exhibit 10.5 to Quarterly Report on Form 10-Q for the period ending June 30, 2007)      |
| 10(c)*    |   | Change in Control Benefits Agreement dated May 22, 2007, between Integra Bank Corporation and John W. Key (incorporated by reference to Exhibit 10(d) to Annual Report on Form 10-K for the period ending December 31, 2009)        |
| 10(d)*    |   | Change in Control Benefits Agreement dated October 15, 2008, between Integra Bank Corporation and Michael B. Carroll (incorporated by reference to Exhibit 10(j) to Annual Report on Form 10-K for period ending December 31, 2008) |
| 10(e)*    |   | First Amendment to Integra Bank Corporation Employees 401 (k) Plan dated January 1, 2003 (incorporated by reference to Exhibit 10(h) to Annual Report on Form 10-K for the fiscal year ended December 31, 2006)                     |
| 10(f)*    |   | Second Amendment to Integra Bank Corporation Employees 401 (k) Plan dated March 28, 2005 (incorporated by reference to Exhibit 10(i) to Annual Report on Form 10-K for the fiscal year ended December 31, 2006)                     |
| 10(g)*    |   | Third Amendment to Integra Bank Corporation Employees 401 (k) Plan dated January 1, 2006 (incorporated by reference to Exhibit 10(j) to Annual Report on Form 10-K for the fiscal year ended December 31, 2006)                     |
| 10(h)*    |   | Fourth Amendment to Integra Bank Corporation Employees 401 (k) Plan dated July 1, 2007 (incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q for the period ending September 30, 2007)                        |
| 10(i)*    |   | Integra Bank Corporation 2007 Equity Incentive Plan (incorporated by reference to Exhibit A to Proxy Statement on Schedule 14A filed March 16, 2007)                                                                                |
| 10(j)*    |   | Amendment to Integra Bank Corporation 2007 Equity Incentive Plan dated April 15, 2009 (incorporated by reference to Exhibit 10.5 to Quarterly Report on Form 10-Q for the period ending March 31, 2009)                             |
| 10(k)*    |   | Integra Bank Corporation Annual Cash Incentive Plan (incorporated by reference to Exhibit B to Proxy Statement on Schedule 14A filed March 16, 2007)                                                                                |
| 10(l)*    |   | Form of Restricted Stock Agreement (Director) under 2007 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K dated April 18, 2007)                                                   |
| 10(m)*    |   | Form of Restricted Stock Agreement (Employee) under 2007 Equity Incentive Plan (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K dated April 18, 2007)                                                   |

----

| 10(n)*  |   | Form of Nonqualified Stock Option Agreement under 2007 Equity Incentive Plan (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K dated April 18, 2007)                                                                                                                              |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10(o)*  |   | Form of Stock Appreciation Right Agreement under 2007 Equity Incentive Plan (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K dated April 18, 2007)                                                                                                                               |
| 10(p)*  |   | Form of Restricted Stock Agreement (CPP) (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K dated July 20, 2009)                                                                                                                                                                   |
| 10(q)*  |   | Form of Restricted Stock Agreement (Employee) (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K dated July 20, 2009)                                                                                                                                                              |
| 10(r)*  |   | Summary Sheet of 2011 Compensation                                                                                                                                                                                                                                                                           |
| 10(s)*  |   | Letter Agreement, dated February 27, 2009, between Integra Bank Corporation and the United States Department of Treasury, which includes the Securities Purchase Agreement-Standard Terms attached thereto (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K dated March 2, 2009) |
| 10(t)*  |   | Form of Senior Officer Letter Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K dated March 2, 2009)                                                                                                                                                                    |
| 10(u)*  |   | Amended Form of Senior Officer Letter Agreement (incorporated by reference to Exhibit 10(v) to Annual Report on Form 10-K for period ending December 31, 2009)                                                                                                                                               |
| 10(v)*  |   | Form of Waiver (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K dated March 2, 2009)                                                                                                                                                                                             |
| 10(w)*  |   | ARRA Letter Agreement, dated February 27, 2009, between Integra Bank Corporation and the United States Department of the Treasury (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K dated March 2, 2009)                                                                          |
| 10(x)*  |   | Formal Written Agreement dated May 20, 2009 between Integra Bank N.A. and the Office of the Comptroller of the Currency (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K-A dated May 27, 2009)                                                                                   |
| 10(y)*  |   | Agreement dated May 6, 2010, between Integra Bank Corporation and the Federal Reserve Bank of St Louis (incorporated by reference to Exhibit 99(a) to the Current Report on Form 8-K dated May 6, 2010)                                                                                                      |
| 10(z)*  |   | Capital Directive dated August 12, 2010 between Integra Bank, National Association and the Office of the Comptroller of the Currency (incorporated by reference to Exhibit 99.1 to the Current Report on Form 8-K dated August 12, 2010)                                                                     |
| 21      |   | Subsidiaries of the Registrant                                                                                                                                                                                                                                                                               |
| 23      |   | Consent of Crowe Horwath LLP                                                                                                                                                                                                                                                                                 |
| 31(a)   |   | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Executive Officer                                                                                                                                                                                                           |
| 31(b)   |   | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer                                                                                                                                                                                                           |
| 32      |   | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                      |
| 99.1    |   | EESA Section 111(b)(4) Certification of Principal Executive Officer                                                                                                                                                                                                                                          |
| 99.2    |   | EESA Section 111(b)(4) Certification of Principal Financial Officer                                                                                                                                                                                                                                          |
|    |   |                                                                                                                                                                                                                                                                                                         |
| *  |   | The indicated exhibit is a management contract, compensatory plan or arrangement required to be filed by Item 601 of Regulation S-K.                                                                                                                                                                    |

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