| INTEGRA BANK CORPORATION                               |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| INDIANA                                                        | 35-1632155                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employee Identification No.) |

| PO BOX 868, EVANSVILLE, INDIANA          | 47705-0868 |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |

| Large accelerated filer  ̈ | Accelerated filer  ̈ | Non-accelerated filer  ̈                                           | Smaller reporting company x |
|-----------------------------------------------|------------------------------------|----------------------------------------------------------------------------------|--------------------------------------------|
|                                          |                               | (Do not check if a smaller reporting company) |                                       |

| CLASS                              | OUTSTANDING AT APRIL 26, 2011 |
|------------------------------------|---------------------------------------------------|
| (Common stock, $1.00 Stated Value) | 21,016,685                                        |

----

|                                                                                          |         | PAGE NO. |
|-----------------------------------------------------------------------------------------------|--------------|---------------|
| PART I - FINANCIAL INFORMATION                                                                |
|                                                                                          |         |          |
| Item 1. Unaudited Financial Statements                                                        |         |   3      |
|                                                                                          |         |          |
| Consolidated balance sheets-                                                                  |         |          |
| March 31, 2011 and December 31, 2010                                                          |         | 3             |
|                                                                                          |         |          |
| Consolidated statements of operations-                                                        |         |          |
| Three months ended March 31, 2011 and 2010                                                    |         | 4             |
|                                                                                          |         |          |
| Consolidated statements of comprehensive income/(loss)-                                       |         |          |
| Three months ended March 31, 2011 and 2010                                                    |         | 6             |
|                                                                                          |         |          |
| Consolidated statements of changes in shareholders’ equity-                             |         |          |
| Three months ended March 31, 2011                                                             |         | 7             |
|                                                                                          |         |          |
| Consolidated statements of cash flow-                                                         |         |          |
| Three months ended March 31, 2011 and 2010                                                    |         | 8             |
|                                                                                          |         |          |
| Notes to unaudited consolidated financial statements                                          |         | 9             |
|                                                                                          |         |          |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |         | 42            |
|                                                                                          |         |          |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                            |         | 54            |
|                                                                                          |         |          |
| Item 4. Controls and Procedures                                                               |         | 55            |
|                                                                                          |         |          |
| PART II - OTHER INFORMATION                                                                   |
|                                                                                          |         |          |
| Item 1. Legal Proceedings                                                                     |         | 55            |
|                                                                                          |         |          |
| Item 1A. Risk Factors                                                                         |         | 55            |
|                                                                                          |         |          |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                           |         | 55            |
|                                                                                          |         |          |
| Item 3. Defaults Upon Senior Securities                                                       |         | 56            |
|                                                                                          |         |          |
| Item 4. Reserved                                                                              |         | 56            |
|                                                                                          |         |          |
| Item 5. Other Information                                                                     |         | 56            |
|                                                                                          |         |          |
| Item 6. Exhibits                                                                              |         | 56            |
|                                                                                          |         |          |
| Signatures                                                                                    |    | 57            |

----

|                                                               |   | March 31, |      |   | December 31, |   |
|--------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                                                               |   | 2011           |      |   | 2010              |   |
| ASSETS                                                             |   |           |      |   |              |   |
| Cash and due from banks                                            |   | $              | 288,248   |   |              | $      | 430,253 |   |
| Short-term investments                                             |   |           | 56,559    |   |              |   | 56,559 |   |
| Total cash and cash equivalents                                    |   |           | 344,807   |   |              |   | 486,812 |   |
| Loans held for sale (at lower of cost or fair value)               |   |           | 989       |   |              |   | 1,899 |   |
| Securities available for sale                                      |   |           | 514,467   |   |              |   | 528,904 |   |
| Securities held for trading                                        |   |           | 421       |   |              |   | 329 |   |
| Regulatory stock                                                   |   |           | 20,337    |   |              |   | 22,172 |   |
| Loans, net of unearned income                                      |   |           | 1,283,615 |   |              |   | 1,349,504 |   |
| Less: Allowance for loan losses                                    |   |           | (112,487  | )      |              |   | (95,801 | ) |
| Net loans                                                          |   |           | 1,171,128 |   |              |   | 1,253,703 |   |
| Premises and equipment                                             |   |           | 32,980    |   |              |   | 34,019 |   |
| Premises and equipment held for sale                               |   |           | 1,387     |   |              |   | 1,387 |   |
| Other real estate owned                                            |   |           | 48,701    |   |              |   | 49,238 |   |
| Other intangible assets                                            |   |           | 3,737     |   |              |   | 3,950 |   |
| Other assets                                                       |   |           | 41,006    |   |              |   | 38,372 |   |
| TOTAL ASSETS                                                       |   | $              | 2,179,960 |   |              | $      | 2,420,785 |   |
|                                                               |   |           |      |   |              |   |   |   |
| LIABILITIES                                                        |   |           |      |   |              |   |   |   |
| Deposits:                                                          |   |           |      |   |              |   |   |   |
| Non-interest-bearing demand                                        |   | $              | 220,300   |   |              | $      | 224,184 |   |
| Interest-bearing                                                   |   |           | 1,629,139 |   |              |   | 1,765,695 |   |
|  Total deposits                                               |   |           | 1,849,439 |   |              |   | 1,989,879 |   |
| Short-term borrowings                                              |   |           | 21,526    |   |              |   | 59,893 |   |
| Long-term borrowings                                               |   |           | 335,528   |   |              |   | 347,847 |   |
| Other liabilities                                                  |   |           | 38,545    |   |              |   | 42,005 |   |
| TOTAL LIABILITIES                                                  |   |           | 2,245,038 |   |              |   | 2,439,624 |   |
|                                                               |   |           |      |   |              |   |   |   |
| Commitments and contingent liabilities (Note 12)                   |   |           | -         |   |              |   | - |   |
|                                                               |   |           |      |   |              |   |   |   |
| SHAREHOLDERS' EQUITY                                               |   |           |      |   |              |   |   |   |
| Preferred stock - no par, $1,000 per share liquidation preference: |   |           |      |   |              |   |   |   |
| Shares authorized: 1,000,000                                       |   |           |      |   |              |   |   |   |
| Shares outstanding: 83,586                                         |   |           | 82,447    |   |              |   | 82,359 |   |
| Common stock - $1.00 stated value:                                 |   |           |      |   |              |   |   |   |
| Shares authorized: 129,000,000                                     |   |           |      |   |              |   |   |   |
| Shares outstanding: 21,045,052 and 21,052,697 respectively         |   |           | 21,045    |   |              |   | 21,053 |   |
| Additional paid-in capital                                         |   |           | 217,279   |   |              |   | 217,174 |   |
| Retained earnings (deficit)                                        |   |           | (381,932  | )      |              |   | (334,593 | ) |
| Accumulated other comprehensive income (loss)                      |   |           | (3,917    | )      |              |   | (4,832 | ) |
| TOTAL SHAREHOLDERS' EQUITY                                         |   |           | (65,078   | )      |              |   | (18,839 | ) |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                         |   | $              | 2,179,960 |   |              | $      | 2,420,785 |   |

----

|                                                              |   | Three Months Ended |    |
|-------------------------------------------------------------------|--------|------------------------------|---------|
|                                                              |   | March 31,               |    |
|                                                              |   | 2011                         |    |   | 2010 |   |
| INTEREST INCOME                                                   |   |                         |    |   |   |   |
| Interest and fees on loans:                                       |   |                         |    |   |   |   |
| Taxable                                                           |   | $                            | 13,561  |   |   | $ | 21,517 |   |
| Tax-exempt                                                        |   |                         | 107     |   |   |   | 101 |   |
| Interest and dividends on securities:                             |   |                         |    |   |   |   |   |   |
| Taxable                                                           |   |                         | 3,293   |   |   |   | 3,322 |   |
| Tax-exempt                                                        |   |                         | 193     |   |   |   | 222 |   |
| Dividends on regulatory stock                                     |   |                         | 195     |   |   |   | 221 |   |
| Interest on loans held for sale                                   |   |                         | 16      |   |   |   | 26 |   |
| Interest on federal funds sold and other short-term investments   |   |                         | 219     |   |   |   | 219 |   |
| Total interest income                                             |   |                         | 17,584  |   |   |   | 25,628 |   |
|                                                              |   |                         |    |   |   |   |   |   |
| INTEREST EXPENSE                                                  |   |                         |    |   |   |   |   |   |
| Interest on deposits                                              |   |                         | 5,492   |   |   |   | 8,102 |   |
| Interest on short-term borrowings                                 |   |                         | 28      |   |   |   | 45 |   |
| Interest on long-term borrowings                                  |   |                         | 2,877   |   |   |   | 2,621 |   |
| Total interest expense                                            |   |                         | 8,397   |   |   |   | 10,768 |   |
|                                                              |   |                         |    |   |   |   |   |   |
| NET INTEREST INCOME                                               |   |                         | 9,187   |   |   |   | 14,860 |   |
| Provision for loan losses                                         |   |                         | 36,790  |   |   |   | 52,700 |   |
| Net interest income after provision for loan losses               |   |                         | (27,603 | ) |   |   | (37,840 | ) |
|                                                              |   |                         |    |   |   |   |   |   |
| NON-INTEREST INCOME                                               |   |                         |    |   |   |   |   |   |
| Service charges on deposit accounts                               |   |                         | 2,517   |   |   |   | 3,985 |   |
| Other service charges and fees                                    |   |                         | 595     |   |   |   | 717 |   |
| ATM income                                                        |   |                         | 295     |   |   |   | 362 |   |
| Debit card income-interchange                                     |   |                         | 1,131   |   |   |   | 1,310 |   |
| Trust income                                                      |   |                         | 464     |   |   |   | 495 |   |
| Net securities gains                                              |   |                         | -       |   |   |   | (2 | ) |
| Other than temporary impairment loss:                             |   |                         |    |   |   |   |   |   |
| Total impairment losses recognized on securities                  |   |                         | -       |   |   |   | (1,631 | ) |
| Loss or reclassification recognized in other comprehensive income |   |                         | -       |   |   |   | 1,421 |   |
| Net impairment loss recognized in earnings                        |   |                         | -       |   |   |   | (210 | ) |
| Gain (loss) on sale of OREO                                       |   |                         | (373    | ) |   |   | 66 |   |
| Other                                                             |   |                         | 785     |   |   |   | 867 |   |
| Total non-interest income                                         |   |                         | 5,414   |   |   |   | 7,590 |   |
|                                                              |   |                         |    |   |   |   |   |   |
| NON-INTEREST EXPENSE                                              |   |                         |    |   |   |   |   |   |
| Salaries and employee benefits                                    |   |                         | 7,216   |   |   |   | 9,198 |   |
| Occupancy                                                         |   |                         | 1,770   |   |   |   | 2,118 |   |
| Equipment                                                         |   |                         | 516     |   |   |   | 750 |   |
| Professional fees                                                 |   |                         | 3,202   |   |   |   | 1,693 |   |
| Communication and transportation                                  |   |                         | 706     |   |   |   | 997 |   |
| Processing                                                        |   |                         | 474     |   |   |   | 715 |   |
| Software                                                          |   |                         | 459     |   |   |   | 597 |   |
| Marketing                                                         |   |                         | 195     |   |   |   | 224 |   |
| Loan collection and OREO expense                                  |   |                         | 4,412   |   |   |   | 1,597 |   |
| FDIC assessment                                                   |   |                         | 3,705   |   |   |   | 2,043 |   |
| Low income housing project losses                                 |   |                         | 295     |   |   |   | 424 |   |
| Amortization of intangible assets                                 |   |                         | 214     |   |   |   | 412 |   |
| State and local franchise tax                                     |   |                         | 210     |   |   |   | 402 |   |
| Other                                                             |   |                         | 1,128   |   |   |   | 1,323 |   |
| Total non-interest expense                                        |   |                         | 24,502  |   |   |   | 22,493 |   |
| Income (Loss) before income taxes                                 |   |                         | (46,691 | ) |   |   | (52,743 | ) |
| Income taxes (benefit)                                            |   |                         | (485    | ) |   |   | 8 |   |
| NET INCOME (LOSS)                                                 |   | $                            | (46,206 | ) |   | $ | (52,751 | ) |
| Preferred stock dividends and discount accretion                  |   |                         | 1,133   |   |   |   | 1,128 |   |
| Net income (loss) available to common shareholders                |   | $                            | (47,339 | ) |   | $ | (53,879 | ) |

----

|                                 |   | Three Months Ended |   |
|--------------------------------------|--------|------------------------------|--------|
|                                 |   | March 31,               |   |
|                                 |   | 2011                         |   |   | 2010 |   |
|                                 |   |                         |   |   |   |   |
| Earnings (Loss) per share:           |   |                         |   |   |   |   |
| Basic                                |   | $                            | (2.29  | ) |   | $ | (2.61 | ) |
| Diluted                              |   |                         | (2.29  | ) |   |   | (2.61 | ) |
|                                 |   |                         |   |   |   |   |   |   |
| Weighted average shares outstanding: |   |                         |   |   |   |   |   |   |
| Basic                                |   |                         | 20,688 |   |   |   | 20,666 |   |
| Diluted                              |   |                         | 20,688 |   |   |   | 20,666 |   |

----

|                                                                 |   | Three Months Ended |    |
|----------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                 |   | March 31,               |    |
|                                                                 |   | 2011                         |    |   | 2010 |   |
|                                                                 |   |                         |    |   |   |   |
| Net income (loss)                                                    |   | $                            | (46,206 | ) |   | $ | (52,751 | ) |
|                                                                 |   |                         |    |   |   |   |   |   |
| Other comprehensive income (loss), net of tax:                       |   |                         |    |   |   |   |   |   |
| Unrealized gain on securities:                                       |   |                         |    |   |   |   |   |   |
| Unrealized gain arising in period                                    |   |                         |    |   |   |   |   |   |
| (net of tax of $532 and $2,151, respectively)                        |   |                         | 894     |   |   |   | 3,617 |   |
| Reclassification of amounts realized through impairment charges      |   |                         |    |   |   |   |   |   |
| and sales (net of tax of $79 for 2010)                               |   |                         | -       |   |   |   | 133 |   |
| Net unrealized gain on securities                                    |   |                         | 894     |   |   |   | 3,750 |   |
|                                                                 |   |                         |    |   |   |   |   |   |
| Change in net pension plan liability                                 |   |                         |    |   |   |   |   |   |
| (net of tax of $12 and $101, respectively)                           |   |                         | 21      |   |   |   | 170 |   |
|                                                                 |   |                         |    |   |   |   |   |   |
| Net unrealized gain, recognized in other comprehensive income (loss) |   |                         | 915     |   |   |   | 3,920 |   |
|                                                                 |   |                         |    |   |   |   |   |   |
| Comprehensive income (loss)                                          |   | $                            | (45,291 | ) |   | $ | (48,831 | ) |

----

|                                       |   |      |   |   |           |   |       |   |   |   |       |   |   |      |    |   | Accumulated        |   |     |          |   |
|-------------------------------------------------|--------|-----------|--------|--------|----------------|--------|------------|--------|--------|--------|------------|--------|--------|-----------|---------|--------|--------------------|--------|----------|---------------|--------|
|                                            |   |      |   |   | Shares of |   |       |   |   |   | Additional |   |   | Retained  |    |   | Other              |   |     | Total         |   |
|                                            |   | Preferred |   |   | Common         |   |       | Common |   |   | Paid-In    |   |   | Earnings  |    |   | Comprehensive      |   |     | Shareholders' |   |
|                                            |   | Stock     |   |   | Stock          |   |       | Stock  |   |   | Capital    |   |   | (Deficit) |    |   | Income (Loss) |   |     | Equity        |   |
|                                            |   |      |   |   |           |   |       |   |   |   |       |   |   |      |    |   |               |   |     |          |   |
| BALANCE AT DECEMBER 31, 2010                    |   | $         | 82,359 |   |           |   | 21,052,697 |   |   | $      | 21,053     |   |   | $         | 217,174 |   |               | $      | (334,593 | )             |   | $ | (4,832 | ) |   | $ | (18,839 | ) |
|                                            |   |      |   |   |           |   |       |   |   |   |       |   |   |      |    |   |               |   |     |          |   |   |   |   |   |   |   |   |
| Net income (loss)                               |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |      | -       |   |               |   | (46,206  | )             |   |   | - |   |   |   | (46,206 | ) |
| Net change, net of tax, in accumulated          |   |      |   |   |           |   |       |   |   |   |       |   |   |      |    |   |               |   |     |          |   |   |   |   |   |   |   |   |
| other comprehensive income                      |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |      | -       |   |               |   | -        |          |   |   | 915 |   |   |   | 915 |   |
| Preferred stock dividend and discount accretion |   |      | 88     |   |           |   | -          |   |   |   | -          |   |   |      | -       |   |               |   | (1,133   | )             |   |   | - |   |   |   | (1,045 | ) |
| Restricted stock forfeitures                    |   |      | -      |   |           |   | (7,645     | )      |   |   | (8         | )      |   |      | 8       |   |               |   | -        |          |   |   | - |   |   |   | - |   |
| Stock-based compensation expense                |   |      | -      |   |           |   | -          |   |   |   | -          |   |   |      | 97      |   |               |   | -        |          |   |   | - |   |   |   | 97 |   |
| BALANCE AT MARCH 31, 2011                       |   | $         | 82,447 |   |           |   | 21,045,052 |   |   | $      | 21,045     |   |   | $         | 217,279 |   |               | $      | (381,932 | )             |   | $ | (3,917 | ) |   | $ | (65,078 | ) |

----

|                                                      |   | Three Months Ended |     |
|-----------------------------------------------------------|--------|------------------------------|----------|
|                                                      |   | March 31,               |     |
|                                                      |   | 2011                         |     |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                      |   |                         |     |   |   |   |
| Net income (loss)                                         |   | $                            | (46,206  | ) |   | $ | (52,751 | ) |
| Adjustments to reconcile net income to                    |   |                         |     |   |   |   |   |   |
| net cash provided by operating activities:                |   |                         |     |   |   |   |   |   |
| Amortization and depreciation                             |   |                         | 2,629    |   |   |   | 1,884 |   |
| Provision for loan losses                                 |   |                         | 36,790   |   |   |   | 52,700 |   |
| Impairment charge on available for sale securities        |   |                         | -        |   |   |   | 210 |   |
| Net held for trading (gains) losses                       |   |                         | (92      | ) |   |   | (179 | ) |
| (Gain) loss on sale of other real estate owned            |   |                         | 373      |   |   |   | (66 | ) |
| Loss on low-income housing investments                    |   |                         | 295      |   |   |   | 424 |   |
| Net (gain) on sale of loans held for sale                 |   |                         | (159     | ) |   |   | (144 | ) |
| Proceeds from sale of loans held for sale                 |   |                         | 12,329   |   |   |   | 13,652 |   |
| Origination of loans held for sale                        |   |                         | (11,260  | ) |   |   | (14,515 | ) |
| Change in other operating                                 |   |                         | (5,461   | ) |   |   | 1,856 |   |
| Net cash flows provided by (used in) operating activities |   | $                            | (10,762  | ) |   | $ | 3,071 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                      |   |                         |     |   |   |   |   |   |
| Proceeds from maturities of securities available for sale |   |                         | 20,760   |   |   |   | 16,229 |   |
| Proceeds from sales of securities available for sale      |   |                         | -        |   |   |   | 100 |   |
| Purchase of securities available for sale                 |   |                         | (6,647   | ) |   |   | (10,829 | ) |
| Proceeds from redemption of regulatory stock              |   |                         | 1,835    |   |   |   | 2,825 |   |
| Decrease in loans made to customers                       |   |                         | 41,192   |   |   |   | 52,741 |   |
| Purchase of premises and equipment                        |   |                         | (134     | ) |   |   | (1,240 | ) |
| Proceeds from sale of premises and equipment              |   |                         | 17       |   |   |   | 404 |   |
| Proceeds from sale of other real estate owned             |   |                         | 2,860    |   |   |   | 1,068 |   |
| Net cash flows provided by investing activities           |   | $                            | 59,883   |   |   | $ | 61,298 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                      |   |                         |     |   |   |   |   |   |
| Net increase (decrease) in deposits                       |   | $                            | (140,440 | ) |   | $ | 52,446 |   |
| Net increase (decrease) in short-term borrowed funds      |   |                         | (38,367  | ) |   |   | 20 |   |
| Repayment of long-term borrowings                         |   |                         | (12,319  | ) |   |   | (12,297 | ) |
| Net cash flows provided by (used in) financing activities |   | $                            | (191,126 | ) |   | $ | 40,169 |   |
| Net increase (decrease) in cash and cash equivalents      |   |                         | (142,005 | ) |   |   | 104,538 |   |
| Cash and cash equivalents at beginning of period          |   |                         | 486,812  |   |   |   | 354,574 |   |
| Cash and cash equivalents at end of period                |   | $                            | 344,807  |   |   | $ | 459,112 |   |
|                                                      |   |                         |     |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS           |   |                         |     |   |   |   |   |   |
| Other real estate acquired in settlement of loans         |   |                         | 4,729    |   |   |   | 6,012 |   |
| Dividends accrued not paid on preferred stock             |   |                         | 1,045    |   |   |   | 1,045 |   |
| Accretion of discount on TARP preferred stock             |   |                         | (88      | ) |   |   | (83 | ) |

----

----

----

----

| March 31, 2011                |   |               |   |   |           |   |    |           |   |   |                     |   |
|-----------------------------------------|--------|--------------------|--------|--------|----------------|--------|---------|----------------|--------|--------|--------------------------|--------|
|                                    |   | 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) |   |   | March 31, 2011 |   |
| Assets                                  |   |               |   |   |           |   |    |           |   |   |                     |   |
| Securities, available for sale          |   |               |   |   |           |   |    |           |   |   |                     |   |
| U.S. Treasuries                         |   | $                  | -      |   |           | $      | 18,637  |           |   | $      | -                        |   |   | $ | 18,637 |   |
| U.S. Government agencies                |   |               | -      |   |           |   | 105     |           |   |   | -                        |   |   |   | 105 |   |
| Collateralized mortgage obligations:    |   |               |   |   |           |   |    |           |   |   |                     |   |   |   |   |   |
| Agency                                  |   |               | -      |   |           |   | 238,190 |           |   |   | -                        |   |   |   | 238,190 |   |
| Private Label                           |   |               | -      |   |           |   | 15,142  |           |   |   | -                        |   |   |   | 15,142 |   |
| Mortgage backed securities: residential |   |               | -      |   |           |   | 201,151 |           |   |   | -                        |   |   |   | 201,151 |   |
| Trust Preferred                         |   |               | -      |   |           |   | 10,599  |           |   |   | 1,042                    |   |   |   | 11,641 |   |
| State & political subdivisions      |   |               | -      |   |           |   | 20,945  |           |   |   | -                        |   |   |   | 20,945 |   |
| Other securities                        |   |               | -      |   |           |   | 8,656   |           |   |   | -                        |   |   |   | 8,656 |   |
| Total securities, available for sale    |   | $                  | -      |   |           | $      | 513,425 |           |   | $      | 1,042                    |   |   | $ | 514,467 |   |
|                                    |   |               |   |   |           |   |    |           |   |   |                     |   |   |   |   |   |
| Securities, held for trading            |   |               |   |   |           |   |    |           |   |   |                     |   |   |   |   |   |
| Trust Preferred                         |   | $                  | -      |   |           | $      | 421     |           |   | $      | -                        |   |   | $ | 421 |   |
|                                    |   |               |   |   |           |   |    |           |   |   |                     |   |   |   |   |   |
| Derivatives                             |   |               | -      |   |           |   | 5,895   |           |   |   | -                        |   |   |   | 5,895 |   |
|                                    |   |               |   |   |           |   |    |           |   |   |                     |   |   |   |   |   |
| Liabilities                             |   |               |   |   |           |   |    |           |   |   |                     |   |   |   |   |   |
| Derivatives                             |   | $                  | -      |   |           | $      | 6,145   |           |   | $      | -                        |   |   | $ | 6,145 |   |

----

| 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                                  |   |               |   |   |           |   |    |           |   |   |                        |   |
| 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 |   |

|                                 |   | Fair Value Measurements at March 31, 2011 |   |
|--------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                 |   | 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) |   |   | March 31, 2011 |   |
| Assets                               |   |                                                                    |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                       |   |                                                                    |   |   |   |   |   |   |   |   |   |   |
| Commercial                           |   | $                                                                       | -      |   |   | $ | - |   |   | $ | 21,306 |   |   | $ | 21,306 |   |
| Commercial real estate               |   |                                                                    | -      |   |   |   | - |   |   |   | 131,867 |   |   |   | 131,867 |   |
| Residential mortgage                 |   |                                                                    | -      |   |   |   | - |   |   |   | 430 |   |   |   | 430 |   |
| Home equity                          |   |                                                                    | -      |   |   |   | - |   |   |   | 691 |   |   |   | 691 |   |
| Consumer                             |   |                                                                    | -      |   |   |   | - |   |   |   | 252 |   |   |   | 252 |   |
| Total impaired loans                 |   |                                                                    | -      |   |   |   | - |   |   |   | 154,546 |   |   |   | 154,546 |   |
| Loans held for sale                  |   |                                                                    | -      |   |   |   | 989 |   |   |   | - |   |   |   | 989 |   |
| Other real estate owned              |   |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                           |   |                                                                    | -      |   |   |   | - |   |   |   | 1,224 |   |   |   | 1,224 |   |
| Commercial real estate               |   |                                                                    | -      |   |   |   | - |   |   |   | 46,685 |   |   |   | 46,685 |   |
| Residential mortgage                 |   |                                                                    | -      |   |   |   | - |   |   |   | 777 |   |   |   | 777 |   |
| Home equity                          |   |                                                                    | -      |   |   |   | - |   |   |   | 15 |   |   |   | 15 |   |
| Consumer                             |   |                                                                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total other real estate owned        |   |                                                                    | -      |   |   |   | - |   |   |   | 48,701 |   |   |   | 48,701 |   |
| Premises and equipment held for sale |   |                                                                    | -      |   |   |   | - |   |   |   | 1,387 |   |   |   | 1,387 |   |

----

|                                 |   | 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                       |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Commercial                           |   | $                                                                          | -      |   |   | $ | - |   |   | $ | 22,113 |   |   | $ | 22,113 |   |
| Commercial real estate               |   |                                                                       | -      |   |   |   | - |   |   |   | 140,262 |   |   |   | 140,262 |   |
| Residential mortgage                 |   |                                                                       | -      |   |   |   | - |   |   |   | 410 |   |   |   | 410 |   |
| Home equity                          |   |                                                                       | -      |   |   |   | - |   |   |   | 989 |   |   |   | 989 |   |
| Consumer                             |   |                                                                       | -      |   |   |   | - |   |   |   | 249 |   |   |   | 249 |   |
| Total impaired loans                 |   |                                                                       | -      |   |   |   | - |   |   |   | 164,023 |   |   |   | 164,023 |   |
| Loans held for sale                  |   |                                                                       | -      |   |   |   | 1,899 |   |   |   | - |   |   |   | 1,899 |   |
| Other real estate owned              |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                           |   |                                                                       | -      |   |   |   | - |   |   |   | 973 |   |   |   | 973 |   |
| Commercial real estate               |   |                                                                       | -      |   |   |   | - |   |   |   | 47,470 |   |   |   | 47,470 |   |
| Residential mortgage                 |   |                                                                       | -      |   |   |   | - |   |   |   | 765 |   |   |   | 765 |   |
| Home equity                          |   |                                                                       | -      |   |   |   | - |   |   |   | 30 |   |   |   | 30 |   |
| Consumer                             |   |                                                                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total other real estate owned        |   |                                                                       | -      |   |   |   | - |   |   |   | 49,238 |   |   |   | 49,238 |   |
| Premises and equipment held for sale |   |                                                                       | -      |   |   |   | - |   |   |   | 1,387 |   |   |   | 1,387 |   |

|                                                  |   | Fair Value Measurements Using Significant |   |
|-------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                  |   | Unobservable Inputs (Level 3)                  |   |
|                                                  |   | Securities                                                    |   |   |   |   |
|                                                  |   | Available for sale                                  |   |   | Total |   |
|                                                  |   |                                                          |   |   |   |   |
| Beginning Balance at January 1, 2011                  |   | $                                                             | 973    |   |   | $ | 973 |   |
| Transfers in and/or out of Level 3                    |   |                                                          | -      |   |   |   | - |   |
| Gains (Losses) included in other comprehensive income |   |                                                          | 69     |   |   |   | 69 |   |
| Gains (Losses) included in earnings                   |   |                                                          | -      |   |   |   | - |   |
| Ending Balance at March 31, 2011                      |   | $                                                             | 1,042  |   |   | $ | 1,042 |   |

----

|                                                  |   | 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 |   |                                                          | 138    |   |   |   | 138 |   |
| Gains (Losses) included in earnings                   |   |                                                          | (210   | ) |   |   | (210 | ) |
| Ending Balance at March 31, 2010                      |   | $                                                             | 1,516  |   |   | $ | 1,516 |   |

|                            |   | March 31, 2011 |      |   | December 31, 2010 |   |
|---------------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
|                            |   | Carrying                 |      |   | Fair                        |   |   | Carrying |   |   | Fair |   |
|                            |   | Amount                   |      |   | Value                       |   |   | Amount |   |   | Value |   |
|                            |   |                     |      |   |                        |   |   |   |   |   |   |   |
| Financial Assets:               |   |                     |      |   |                        |   |   |   |   |   |   |   |
| Cash and short-term investments |   | $                        | 344,807   |   |                        | $      | 344,807 |   |   | $ | 486,812 |   |   | $ | 486,812 |   |
| Loans-net of allowance          |   |                     | 1,016,582 |   |                        |   | 1,013,482 |   |   |   | 1,089,680 |   |   |   | 1,090,884 |   |
| Accrued interest receivable     |   |                     | 7,061     |   |                        |   | 7,061 |   |   |   | 7,561 |   |   |   | 7,561 |   |
|                            |   |                     |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:          |   |                     |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                        |   | $                        | 1,849,439 |   |                        | $      | 1,865,403 |   |   | $ | 1,989,879 |   |   | $ | 2,009,837 |   |
| Short-term borrowings           |   |                     | 21,526    |   |                        |   | 21,526 |   |   |   | 59,893 |   |   |   | 59,893 |   |
| Long-term borrowings            |   |                     | 335,528   |   |                        |   | 336,447 |   |   |   | 347,847 |   |   |   | 352,149 |   |
| Accrued interest payable        |   |                     | 8,280     |   |                        |   | 8,280 |   |   |   | 8,710 |   |   |   | 8,710 |   |

----

|                                          |   | March 31, 2011 |    |
|-----------------------------------------------|--------|--------------------------|---------|
|                                          |   |                     |    |   |   |   |   | Weighted Average |   |
|                                          |   |                     |    |   | Weighted Average |   |   | Remaining Term |   |
|                                          |   | Shares                   |    |   | Exercise Price |   |   | (In years) |   |
|                                          |   |                     |    |   |   |   |   |   |   |
| Options/SARs outstanding at December 31, 2010 |   |                     | 375,993 |   |   | $ | 20.58 |   |   |   |   |
| Options/SARs granted                          |   |                     | -       |   |   |   | - |   |   |   |   |
| Options/SARs exercised                        |   |                     | -       |   |   |   | - |   |   |   |   |
| Options/SARs forfeited/expired                |   |                     | (11,000 | ) |   |   | 24.52 |   |   |   |   |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |
| Options/SARs outstanding at March 31, 2011    |   |                     | 364,993 |   |   | $ | 20.46 |   |   |   | 4.1 |   |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Options/SARs exercisable at March 31, 2011    |   |                     | 355,225 |   |   | $ | 20.52 |   |   |   | 4.0 |   |

|                                             |   |   |    |   | Weighted-Average                                                                                                            |   |
|--------------------------------------------------|--------|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|
|                                             |   |   |    |   | Grant-Date                                                                                                                  |   |
|                                             |   | Shares |    |   |          Fair Value          |   |
|                                             |   |   |    |   |                                                                                                                        |   |
| Restricted shares outstanding, December 31, 2010 |   |   | 377,737 |   |                                                                                                                        | $      | 1.46 |   |
| Shares granted                                   |   |   | -       |   |                                                                                                                        |   |   |   |
| Shares vested                                    |   |   | (500    | )      |                                                                                                                        |   |   |   |
| Shares forfeited                                 |   |   | (7,645  | )      |                                                                                                                        |   |   |   |
|                                             |   |   |    |   |                                                                                                                        |   |   |   |
| Restricted shares outstanding, March 31, 2011    |   |   | 369,592 |   |                                                                                                                        |   | 1.41 |   |

----

|   | · | Pursue all available strategies to obtain an acceptable commitment to recapitalize the Bank; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | Continue to serve our community banking customers in our core market area and take all available actions necessary to ensure the safety of their deposits; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | Make continual adjustments to increase profitability. |
|--------|--------|-------------------------------------------------------|

----

|                                                       |   | Three Months Ended |       |
|------------------------------------------------------------|--------|------------------------------|------------|
|                                                       |   | March 31,               |       |
|                                                       |   | 2011                         |       |   | 2010 |   |
|                                                       |   |                         |       |   |   |   |
| Net income (loss)                                          |   | $                            | (46,206    | ) |   | $ | (52,751 | ) |
| Preferred dividends and discount accretion                 |   |                         | (1,133     | ) |   |   | (1,128 | ) |
| Net income (loss) available to common shareholders         |   | $                            | (47,339    | ) |   | $ | (53,879 | ) |
|                                                       |   |                         |       |   |   |   |   |   |
| Weighted average common shares outstanding - Basic         |   |                         | 20,688,483 |   |   |   | 20,666,237 |   |
| Incremental shares related to stock compensation           |   |                         | -          |   |   |   | - |   |
| Average common shares outstanding - Diluted                |   |                         | 20,688,483 |   |   |   | 20,666,237 |   |
|                                                       |   |                         |       |   |   |   |   |   |
| Earnings (Loss) per common share - Basic                   |   | $                            | (2.29      | ) |   | $ | (2.61 | ) |
| Effect of incremental shares related to stock compensation |   |                         | -          |   |   |   | - |   |
| Earnings (Loss) per common share - Diluted                 |   | $                            | (2.29      | ) |   | $ | (2.61 | ) |

----

|                                     |   |      |    |   | Gross      |   |   | Gross      |   |   |   |   |
|------------------------------------------|--------|-----------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                     |   | Amortized |    |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                     |   | Cost      |    |   | Gains      |   |   | Losses     |   |   | Value  |   |
| March 31, 2011                           |   |      |    |   |       |   |   |       |   |   |   |   |
| U.S. Treasuries                          |   | $         | 18,616  |   |       | $      | 70     |       |   | $      | 49     |   |   | $ | 18,637 |   |
| U.S. Government agencies                 |   |      | 100     |   |       |   | 5      |       |   |   | -      |   |   |   | 105 |   |
| Collateralized mortgage obligations:     |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Agency                                   |   |      | 238,388 |   |       |   | 744    |       |   |   | 942    |   |   |   | 238,190 |   |
| Private label                            |   |      | 15,591  |   |       |   | -      |       |   |   | 449    |   |   |   | 15,142 |   |
| Mortgage-backed securities - residential |   |      | 201,433 |   |       |   | 850    |       |   |   | 1,132  |   |   |   | 201,151 |   |
| Trust preferred                          |   |      | 16,207  |   |       |   | 108    |       |   |   | 4,674  |   |   |   | 11,641 |   |
| States & political subdivisions      |   |      | 19,587  |   |       |   | 1,358  |       |   |   | -      |   |   |   | 20,945 |   |
| Other securities                         |   |      | 8,641   |   |       |   | 17     |       |   |   | 2      |   |   |   | 8,656 |   |
| Total                                    |   | $         | 518,563 |   |       | $      | 3,152  |       |   | $      | 7,248  |   |   | $ | 514,467 |   |

|                                     |   |      |    |   | 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 |   |

|               |   | March 31, 2011 |    |
|--------------------|--------|--------------------------|---------|
|               |   | Amortized                |    |   | Fair |   |
|               |   | Cost                     |    |   | Value |   |
| Maturity           |   |                     |    |   |   |   |
| Available-for-sale |   |                     |    |   |   |   |
|               |   |                     |    |   |   |   |
| Within one year    |   | $                        | 8,157   |   |   | $ | 8,176 |   |
| One to five years  |   |                     | 181,657 |   |   |   | 181,974 |   |
| Five to ten years  |   |                     | 191,236 |   |   |   | 191,493 |   |
| Beyond ten years   |   |                     | 137,513 |   |   |   | 132,824 |   |
|  Total        |   | $                        | 518,563 |   |   | $ | 514,467 |   |

----

|                                     |   | Less than 12 Months |    |   | 12 Months or More |   |   | Total           |   |
|------------------------------------------|--------|------------------------------------|---------|--------|----------------------------------|--------|--------|-----------------|--------|
| March 31, 2011                 |   | Fair Value                    |    |   | UnrealizedLosses                 |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| U.S. Treasury securities                 |   | $                                  | 9,528   |   |                             | $      | 49     |            |   | $ | - |   |   | $ | - |   |   | $ | 9,528 |   |   | $ | 49 |   |
| Collateralized mortgage obligations:     |   |                               |    |   |                             |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency                                   |   |                               | 85,666  |   |                             |   | 942    |            |   |   | - |   |   |   | - |   |   |   | 85,666 |   |   |   | 942 |   |
| Private Label                            |   |                               | 3,925   |   |                             |   | 41     |            |   |   | 11,217 |   |   |   | 408 |   |   |   | 15,142 |   |   |   | 449 |   |
| Mortgage-backed securities - residential |   |                               | 115,515 |   |                             |   | 1,132  |            |   |   | - |   |   |   | - |   |   |   | 115,515 |   |   |   | 1,132 |   |
| Trust Preferred                          |   |                               | -       |   |                             |   | -      |            |   |   | 7,542 |   |   |   | 4,674 |   |   |   | 7,542 |   |   |   | 4,674 |   |
| State & political subdivisions       |   |                               | -       |   |                             |   | -      |            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other securities                         |   |                               | -       |   |                             |   | -      |            |   |   | 24 |   |   |   | 2 |   |   |   | 24 |   |   |   | 2 |   |
| Total                                    |   | $                                  | 214,634 |   |                             | $      | 2,164  |            |   | $ | 18,783 |   |   | $ | 5,084 |   |   | $ | 233,417 |   |   | $ | 7,248 |   |

|                                     |   | 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 |   |

----

| Ratings                                                                    |   |                              |   |                              |
|----------------------------------------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|
|                                                                       |   |                              |   |                              |
| Issuer                                                                     |   | Ratings as of March 31, 2011      |   | Ratings as of December 31, 2010   |
| Pooled Trust Preferred CDOs (Amortized cost $2,213, fair value $1,042)     |   |                              |
| PreTSL VI                                                                  |   | Ca (Moodys) / D (Fitch)           |   | Ca (Moodys) / D (Fitch)           |
| PreTSL XIV                                                                 |   | Ca (Moodys) /C (Fitch)            |   | Ca (Moodys) /C (Fitch)            |
|                                                                       |   |                              |   |                              |
| Pooled Trust Preferred CDOs (Held For Trading)-Carried at fair value, $421 |   |                              |
| Alesco 10A C1                                                              |   | Ca (Moodys) / C (Fitch)           |   | Ca (Moodys) / C (Fitch)           |
| Trapeza 11A D1                                                             |   | C (Fitch)                         |   | C (Fitch)                         |
| Trapeza 12A D1                                                             |   | C (Fitch)                         |   | C (Fitch)                         |
| US Capital Funding                                                         |   | C (Moodys) / C (Fitch)            |   | C (Moodys) / C (Fitch)            |
|                                                                       |   |                              |   |                              |
| Single Issue Trust Preferred (Amortized cost $13,994, fair value $10,599)  |   |                              |
| Bank One Cap Tr VI (JP Morgan)                                             |   | A2(Moodys) / A (Fitch)            |   | A2(Moodys) / A (Fitch)            |
| First Citizen Bancshare                                                    |   | Non-Rated                         |   | Non-Rated                         |
| First Union Instit Cap I (Wells Fargo)                                     |   | Baa1(Moodys)/A-(S&P)/A(Fitch) |   | Baa1(Moodys)/A-(S&P)/A(Fitch) |
| Sky Financial Cap Trust III (Huntington)                                   |   | BB-(S&P)                      |   | BB-(S&P)                      |
|                                                                       |   |                              |   |                              |
| Private Label CMOs (Amortized cost $15,591 fair value $15,142)             |   |                              |
| CWHL 2003-58 2A1                                                           |   | Aaa/*-(Moodys)/AAA(S&P)       |   | Aaa/*-(Moodys)/AAA(S&P)       |
| 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                                                           |   | A3/(Moodys)/AAA(S&P)          |   | A1/*-(Moodys)/AAA(S&P)        |
| WFMBS 2006-8 A13                                                           |   | B2(Moodys)/B(Fitch)               |   | B2(Moodys)/B(Fitch)               |

----

----

| Ending balance December 31, 2010                                                                                                                                                                               |   | $      | 1,417  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Additions for amounts related to credit loss for which an other- than-temporary impairment was not previously recognized                                                                                       |   |   | -      |   |
| 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, March 31, 2011                                                                                                                                                                                 |   | $      | 1,417  |   |
|                                                                                                                                                                                                           |   |   |   |   |
| Ending balance December 31, 2009                                                                                                                                                                               |   | $      | 315    |   |
| Additions for amounts related to credit loss for which an other- than-temporary impairment was not previously recognized                                                                                       |   |   | 210    |   |
| 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, March 31, 2010                                                                                                                                                                                 |   | $      | 525    |   |

----

|                                                                                  |   | March 31, |      |   | December 31, |   |
|---------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                                                  |   | 2011      |      |   | 2010         |   |
| Commercial                                                                            |   |      |      |   |         |   |
| Commercial, industrial and agricultural loans:                                        |   |      |      |   |         |   |
| Commercial real estate                                                                |   | $         | 52,947    |   |         | $      | 68,910 |   |
| Chicago                                                                               |   |      | 31,313    |   |         |   | 35,090 |   |
| Community                                                                             |   |      | 287,950   |   |         |   | 297,936 |   |
| Economic development loans and other obligations of state and political subdivisions: |   |      |      |   |         |   |   |   |
| Community                                                                             |   |      | 14,799    |   |         |   | 8,992 |   |
| Lease financing:                                                                      |   |      |      |   |         |   |   |   |
| Community                                                                             |   |      | -         |   |         |   | 424 |   |
| Total commercial                                                                      |   |      | 387,009   |   |         |   | 411,352 |   |
| Commercial real estate                                                                |   |      |      |   |         |   |   |   |
| Commercial mortgages:                                                                 |   |      |      |   |         |   |   |   |
| Commercial real estate                                                                |   |      | 306,089   |   |         |   | 318,902 |   |
| Chicago                                                                               |   |      | 80,202    |   |         |   | 87,099 |   |
| Community                                                                             |   |      | 42,021    |   |         |   | 44,291 |   |
| Construction and development:                                                         |   |      |      |   |         |   |   |   |
| Commercial real estate                                                                |   |      | 100,056   |   |         |   | 106,855 |   |
| Chicago                                                                               |   |      | 47,799    |   |         |   | 51,944 |   |
| Community                                                                             |   |      | 3,912     |   |         |   | 3,438 |   |
| Total commercial real estate                                                          |   |      | 580,079   |   |         |   | 612,529 |   |
|                                                                                  |   |      |      |   |         |   |   |   |
| Residential mortgages:                                                                |   |      |      |   |         |   |   |   |
| Chicago                                                                               |   |      | 4,800     |   |         |   | 4,101 |   |
| Community                                                                             |   |      | 133,260   |   |         |   | 139,142 |   |
| Home equity:                                                                          |   |      |      |   |         |   |   |   |
| Chicago                                                                               |   |      | 8,092     |   |         |   | 8,541 |   |
| Community                                                                             |   |      | 109,183   |   |         |   | 109,865 |   |
| Consumer loans:                                                                       |   |      |      |   |         |   |   |   |
| Commercial real estate                                                                |   |      | 2         |   |         |   | 2 |   |
| Chicago                                                                               |   |      | 1,058     |   |         |   | 1,150 |   |
| Community                                                                             |   |      | 60,132    |   |         |   | 62,822 |   |
| Total loans                                                                           |   | $         | 1,283,615 |   |         | $      | 1,349,504 |   |

----

|                                                                                 |   | March 31, 2011 |    |   | December 31, 2010                           |   |
|--------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|-------------------------------------------------------|--------|
|                                                                                 |   | Nonaccrual               |    |   | Loans PastDue Over90 DaysStillAccruing |   |   | Nonaccrual |   |   | Loans PastDue Over90 DaysStillAccruing |   |
|                                                                                 |   |                     |    |   |                                                  |   |   |   |   |   |   |   |
| Commercial                                                                           |   |                     |    |   |                                                  |   |   |   |   |   |   |   |
| Commercial, industrial and agricultural loans:                                       |   |                     |    |   |                                                  |   |   |   |   |   |   |   |
| Commercial real estate                                                               |   | $                        | 6,111   |   |                                                  | $      | 391 |   |   | $ | 6,673 |   |   | $ | - |   |
| Chicago                                                                              |   |                     | 14,304  |   |                                                  |   | - |   |   |   | 14,078 |   |   |   | - |   |
| Community                                                                            |   |                     | 5,116   |   |                                                  |   | - |   |   |   | 3,589 |   |   |   | 7 |   |
| Economic development loans and other obligations of state and political subdivisions |   |                     | -       |   |                                                  |   | - |   |   |   | - |   |   |   | - |   |
| Lease financing                                                                      |   |                     | -       |   |                                                  |   | - |   |   |   | 424 |   |   |   | - |   |
| Total commercial                                                                     |   |                     | 25,531  |   |                                                  |   | 391 |   |   |   | 24,764 |   |   |   | 7 |   |
| Commercial real estate                                                               |   |                     |    |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Commercial mortgages:                                                                |   |                     |    |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                               |   |                     | 36,830  |   |                                                  |   | 5,275 |   |   |   | 32,462 |   |   |   | - |   |
| Chicago                                                                              |   |                     | 39,061  |   |                                                  |   | - |   |   |   | 43,184 |   |   |   | - |   |
| Community                                                                            |   |                     | 3,534   |   |                                                  |   | - |   |   |   | 4,507 |   |   |   | - |   |
| Construction and development:                                                        |   |                     |    |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                               |   |                     | 32,316  |   |                                                  |   | - |   |   |   | 41,433 |   |   |   | - |   |
| Chicago                                                                              |   |                     | 42,210  |   |                                                  |   | - |   |   |   | 45,092 |   |   |   | - |   |
| Community                                                                            |   |                     | 271     |   |                                                  |   | - |   |   |   | 271 |   |   |   | - |   |
| Total commercial real estate                                                         |   |                     | 154,222 |   |                                                  |   | 5,275 |   |   |   | 166,949 |   |   |   | - |   |
|                                                                                 |   |                     |    |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgages:                                                               |   |                     |    |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                              |   |                     | 487     |   |                                                  |   | - |   |   |   | 494 |   |   |   | - |   |
| Community                                                                            |   |                     | 2,057   |   |                                                  |   | - |   |   |   | 2,637 |   |   |   | 8 |   |
| Home equity:                                                                         |   |                     |    |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                              |   |                     | 670     |   |                                                  |   | - |   |   |   | 896 |   |   |   | - |   |
| Community                                                                            |   |                     | 607     |   |                                                  |   | - |   |   |   | 606 |   |   |   | 30 |   |
| Consumer loans:                                                                      |   |                     |    |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Community                                                                            |   |                     | 438     |   |                                                  |   | - |   |   |   | 596 |   |   |   | 28 |   |
| Total loans                                                                          |   | $                        | 184,012 |   |                                                  | $      | 5,666 |   |   | $ | 196,942 |   |   | $ | 73 |   |

----

|                                                                                 |   | March 31, 2011 |   |   | December 31, 2010          |   |
|--------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|--------------------------------------|--------|
|                                                                                 |   | 30-89Days PastDue   |   |   | Greaterthan 90Days PastDue |   |   | Total PastDue |   |   | 30-89Days PastDue |   |   | Greaterthan 90Days PastDue |   |   | Total PastDue |   |
|                                                                                 |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                           |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, industrial and agricultural loans:                                       |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                               |   | $                        | 495    |   |                                 | $      | 391 |   |   | $ | 886 |   |   | $ | 536 |   |   | $ | - |   |   | $ | 536 |   |
| Chicago                                                                              |   |                     | 215    |   |                                 |   | - |   |   |   | 215 |   |   |   | 276 |   |   |   |   |   |   |   | 276 |   |
| Community                                                                            |   |                     | 2,143  |   |                                 |   | - |   |   |   | 2,143 |   |   |   | 1,477 |   |   |   | 7 |   |   |   | 1,484 |   |
| Economic development loans and other obligations of state and political subdivisions |   |                     | -      |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Lease financing                                                                      |   |                     | -      |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total commercial                                                                     |   |                     | 2,853  |   |                                 |   | 391 |   |   |   | 3,244 |   |   |   | 2,289 |   |   |   | 7 |   |   |   | 2,296 |   |
| Commercial real estate                                                               |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial mortgages:                                                                |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                               |   |                     | 17,102 |   |                                 |   | 5,275 |   |   |   | 22,377 |   |   |   | 5,735 |   |   |   | - |   |   |   | 5,735 |   |
| Chicago                                                                              |   |                     | 1,085  |   |                                 |   | - |   |   |   | 1,085 |   |   |   | 695 |   |   |   | - |   |   |   | 695 |   |
| Community                                                                            |   |                     | 2,051  |   |                                 |   | - |   |   |   | 2,051 |   |   |   | 611 |   |   |   | - |   |   |   | 611 |   |
| Construction and development:                                                        |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                               |   |                     | 2,939  |   |                                 |   | - |   |   |   | 2,939 |   |   |   | 3,529 |   |   |   | - |   |   |   | 3,529 |   |
| Chicago                                                                              |   |                     | 31     |   |                                 |   | - |   |   |   | 31 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Community                                                                            |   |                     | -      |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total commercial real estate                                                         |   |                     | 23,208 |   |                                 |   | 5,275 |   |   |   | 28,483 |   |   |   | 10,570 |   |   |   | - |   |   |   | 10,570 |   |
|                                                                                 |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgages:                                                               |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                              |   |                     | 416    |   |                                 |   | - |   |   |   | 416 |   |   |   | 314 |   |   |   | - |   |   |   | 314 |   |
| Community                                                                            |   |                     | 4,762  |   |                                 |   | - |   |   |   | 4,762 |   |   |   | 4,632 |   |   |   | 8 |   |   |   | 4,640 |   |
| Home equity:                                                                         |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                              |   |                     | 558    |   |                                 |   | - |   |   |   | 558 |   |   |   | 507 |   |   |   | - |   |   |   | 507 |   |
| Community                                                                            |   |                     | 419    |   |                                 |   | - |   |   |   | 419 |   |   |   | 336 |   |   |   | 30 |   |   |   | 366 |   |
| Consumer loans:                                                                      |   |                     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                               |   |                     | -      |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Chicago                                                                              |   |                     | 51     |   |                                 |   | - |   |   |   | 51 |   |   |   | 35 |   |   |   | - |   |   |   | 35 |   |
| Community                                                                            |   |                     | 540    |   |                                 |   | - |   |   |   | 540 |   |   |   | 940 |   |   |   | 28 |   |   |   | 968 |   |
| Total loans                                                                          |   | $                        | 32,807 |   |                                 | $      | 5,666 |   |   | $ | 38,473 |   |   | $ | 19,623 |   |   | $ | 73 |   |   | $ | 19,696 |   |

----

|                                                                                  |   | Loans evaluated for impairment: |    |   | Allowance based on impairment method: |   |
|---------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|--------|-----------------------------------------------------------|--------|
| At March 31, 2011                                                                     |   | Individually                                   |    |   | Collectively                                              |   |   | Individually |   |   | Collectively |   |
|                                                                                  |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |
| Commercial                                                                            |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |
| Commercial, industrial and agricultural loans:                                        |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   | $                                              | 6,111   |   |                                                      | $      | 46,836 |   |   | $ | 1,498 |   |   | $ | 2,728 |   |
| Chicago                                                                               |   |                                           | 14,304  |   |                                                      |   | 17,009 |   |   |   | 1,423 |   |   |   | 1,237 |   |
| Community                                                                             |   |                                           | 5,116   |   |                                                      |   | 282,834 |   |   |   | 1,304 |   |   |   | 19,228 |   |
| Economic development loans and other obligations of state and political subdivisions: |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Community                                                                             |   |                                           | -       |   |                                                      |   | 14,799 |   |   |   | - |   |   |   | 18 |   |
| Total commercial                                                                      |   |                                           | 25,531  |   |                                                      |   | 361,478 |   |   |   | 4,225 |   |   |   | 23,211 |   |
| Commercial real estate                                                                |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Commercial mortgages:                                                                 |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |                                           | 43,667  |   |                                                      |   | 262,422 |   |   |   | 12,359 |   |   |   | 22,783 |   |
| Chicago                                                                               |   |                                           | 39,061  |   |                                                      |   | 41,141 |   |   |   | 5,891 |   |   |   | 2,731 |   |
| Community                                                                             |   |                                           | 3,534   |   |                                                      |   | 38,487 |   |   |   | 576 |   |   |   | 861 |   |
| Construction and development:                                                         |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |                                           | 37,703  |   |                                                      |   | 62,353 |   |   |   | 5,606 |   |   |   | 5,788 |   |
| Chicago                                                                               |   |                                           | 42,297  |   |                                                      |   | 5,502 |   |   |   | 10,234 |   |   |   | 517 |   |
| Community                                                                             |   |                                           | 271     |   |                                                      |   | 3,641 |   |   |   | - |   |   |   | 52 |   |
| Total commercial real estate                                                          |   |                                           | 166,533 |   |                                                      |   | 413,546 |   |   |   | 34,666 |   |   |   | 32,732 |   |
| Residential mortgages:                                                                |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                               |   |                                           | 59      |   |                                                      |   | 4,741 |   |   |   | 18 |   |   |   | 214 |   |
| Community                                                                             |   |                                           | 547     |   |                                                      |   | 132,713 |   |   |   | 158 |   |   |   | 6,226 |   |
| Home equity:                                                                          |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                               |   |                                           | 719     |   |                                                      |   | 7,373 |   |   |   | 75 |   |   |   | 155 |   |
| Community                                                                             |   |                                           | 68      |   |                                                      |   | 109,115 |   |   |   | 21 |   |   |   | 2,292 |   |
| Consumer loans:                                                                       |   |                                           |    |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |                                           | -       |   |                                                      |   | 2 |   |   |   | - |   |   |   | - |   |
| Chicago                                                                               |   |                                           | -       |   |                                                      |   | 1,058 |   |   |   | - |   |   |   | 52 |   |
| Community                                                                             |   |                                           | 280     |   |                                                      |   | 59,852 |   |   |   | 28 |   |   |   | 3,718 |   |
| Unallocated:                                                                          |   |                                           | -       |   |                                                      |   | - |   |   |   | - |   |   |   | 4,696 |   |
| Total loans                                                                           |   | $                                              | 193,737 |   |                                                      | $      | 1,089,878 |   |   | $ | 39,191 |   |   | $ | 73,296 |   |

----

|                                |   | Loans evaluated for impairment: |    |   | Allowance based on impairment method: |   |
|-------------------------------------|--------|------------------------------------------------|---------|--------|-----------------------------------------------------------|--------|
| At December 31, 2010 |   | 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 |   |

----

|                                |   | Three Months Ended |   |
|------------------------------------------|--------|--------------------|--------|
|                                     |   | March 31, 2011     |   |
|                                     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |   |   | Commercial |   |   | Residential |   |   | Home |   |   |   |   |   |   |   |   |   |   |
|                                     |   | Commercial         |   |   | Real Estate |   |   | Mortgages |   |   | Equity |   |   | Consumer |   |   | Unallocated |   |   | Total |   |
| Beginning Balance                        |   | $                  | 17,362 |   |   | $ | 57,745 |   |   | $ | 6,925 |   |   | $ | 2,392 |   |   | $ | 4,023 |   |   | $ | 7,354 |   |   | $ | 95,801 |   |
| Loans charged off                        |   |               | (4,043 | ) |   |   | (15,773 | ) |   |   | (274 | ) |   |   | (376 | ) |   |   | (558 | ) |   |   | - |   |   |   | (21,024 | ) |
| Recoveries                               |   |               | 116    |   |   |   | 288 |   |   |   | 31 |   |   |   | 6 |   |   |   | 717 |   |   |   | - |   |   |   | 1,158 |   |
| Provision for loan losses                |   |               | 14,001 |   |   |   | 25,376 |   |   |   | (66 | ) |   |   | 521 |   |   |   | (384 | ) |   |   | (2,658 | ) |   |   | 36,790 |   |
| Allowance related to divested loans sold |   |               | -      |   |   |   | (238 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (238 | ) |
| Ending Balance                           |   | $                  | 27,436 |   |   | $ | 67,398 |   |   | $ | 6,616 |   |   | $ | 2,543 |   |   | $ | 3,798 |   |   | $ | 4,696 |   |   | $ | 112,487 |   |

|                                     |   | Three Months EndedMarch 31,2010 |    |
|------------------------------------------|--------|---------------------------------|---------|
| Beginning Balance                        |   | $                               | 88,670  |   |
| Loans charged off                        |   |                            | (40,113 | ) |
| Recoveries                               |   |                            | 724     |   |
| Provision for loan losses                |   |                            | 52,700  |   |
| Allowance related to divested loans sold |   |                            | -       |   |
| Ending Balance                           |   | $                               | 101,981 |   |

----

|                                                                                 |   | RecordedInvestment |   |   | RelatedAllowance forLoan Losses |   |   | AverageRecordedInvestment |   |   | InterestIncomeRecognized |   |   | Cash BasisInterestIncomeRecognized |   |
|--------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------------------------------|--------|--------|---------------------------|--------|--------|--------------------------|--------|--------|-----------------------------------------|--------|
|                                                                                 |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |
| Impaired loans with no allocated allowance:                                          |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |
| Commercial                                                                           |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |
| Commercial, industrial and agricultural loans:                                       |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |
| Commercial real estate                                                               |   | $                  | 1,111  |   |                                      | $      | -      |                      |   | $      | 1,111                    |   |   | $                                       | -      |   |   | $ | - |   |
| Chicago                                                                              |   |               | 2,800  |   |                                      |   | -      |                      |   |   | 2,809                    |   |   |                                    | -      |   |   |   | - |   |
| Community                                                                            |   |               | 667    |   |                                      |   | -      |                      |   |   | 674                      |   |   |                                    | -      |   |   |   | - |   |
| Economic development loans and other obligations of state and political subdivisions |   |               | -      |   |                                      |   | -      |                      |   |   | -                        |   |   |                                    | -      |   |   |   | - |   |
| Total commercial                                                                     |   |               | 4,578  |   |                                      |   | -      |                      |   |   | 4,594                    |   |   |                                    | -      |   |   |   | - |   |
| Commercial real estate                                                               |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Commercial mortgages:                                                                |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Commercial real estate                                                               |   |               | 4,117  |   |                                      |   | -      |                      |   |   | 4,258                    |   |   |                                    | 3      |   |   |   | - |   |
| Chicago                                                                              |   |               | 9,616  |   |                                      |   | -      |                      |   |   | 9,633                    |   |   |                                    | 3      |   |   |   | - |   |
| Community                                                                            |   |               | 1,451  |   |                                      |   | -      |                      |   |   | 1,832                    |   |   |                                    | -      |   |   |   | - |   |
| Construction and development:                                                        |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Commercial real estate                                                               |   |               | 11,794 |   |                                      |   | -      |                      |   |   | 11,973                   |   |   |                                    | 13     |   |   |   | - |   |
| Chicago                                                                              |   |               | 683    |   |                                      |   | -      |                      |   |   | 1,006                    |   |   |                                    | -      |   |   |   | - |   |
| Community                                                                            |   |               | 271    |   |                                      |   | -      |                      |   |   | 271                      |   |   |                                    | -      |   |   |   | - |   |
| Total commercial real estate                                                         |   |               | 27,932 |   |                                      |   | -      |                      |   |   | 28,973                   |   |   |                                    | 19     |   |   |   | - |   |
|                                                                                 |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Residential mortgages:                                                               |   |               |   |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Community                                                                            |   |               | 37     |   |                                      |   | -      |                      |   |   | 37                       |   |   |                                    | -      |   |   |   | - |   |
| Home equity                                                                          |   |               | -      |   |                                      |   | -      |                      |   |   | -                        |   |   |                                    | -      |   |   |   | - |   |
| Consumer loans                                                                       |   |               | -      |   |                                      |   | -      |                      |   |   | -                        |   |   |                                    | -      |   |   |   | - |   |
| Total impaired loans with no allocated allowance                                     |   | $                  | 32,547 |   |                                      | $      | -      |                      |   | $      | 33,604                   |   |   | $                                       | 19     |   |   | $ | - |   |

----

|                                                                                 |   | RecordedInvestment |    |   | RelatedAllowance forLoan Losses |   |   | AverageRecordedInvestment |   |   | InterestIncomeRecognized |   |   | Cash BasisInterestIncomeRecognized |   |
|--------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------------------------------|--------|--------|---------------------------|--------|--------|--------------------------|--------|--------|-----------------------------------------|--------|
| Impaired loans with allocated allowance:                                             |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |
| Commercial                                                                           |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |
| Commercial, industrial and agricultural loans:                                       |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |
| Commercial real estate                                                               |   | $                  | 5,000   |   |                                      | $      | 1,498  |                      |   | $      | 5,003                    |   |   | $                                       | 1      |   |   | $ | - |   |
| Chicago                                                                              |   |               | 11,504  |   |                                      |   | 1,423  |                      |   |   | 12,917                   |   |   |                                    | 1      |   |   |   | - |   |
| Community                                                                            |   |               | 4,449   |   |                                      |   | 1,304  |                      |   |   | 4,860                    |   |   |                                    | -      |   |   |   | - |   |
| Economic development loans and other obligations of state and political subdivisions |   |               | -       |   |                                      |   | -      |                      |   |   | -                        |   |   |                                    | -      |   |   |   | - |   |
| Total commercial                                                                     |   |               | 20,953  |   |                                      |   | 4,225  |                      |   |   | 22,780                   |   |   |                                    | 2      |   |   |   | - |   |
| Commercial real estate                                                               |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Commercial mortgages:                                                                |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Commercial real estate                                                               |   |               | 39,550  |   |                                      |   | 12,359 |                      |   |   | 41,886                   |   |   |                                    | 2      |   |   |   | - |   |
| Chicago                                                                              |   |               | 29,445  |   |                                      |   | 5,891  |                      |   |   | 31,047                   |   |   |                                    | 1      |   |   |   | - |   |
| Community                                                                            |   |               | 2,083   |   |                                      |   | 576    |                      |   |   | 2,259                    |   |   |                                    | -      |   |   |   | - |   |
| Construction and development:                                                        |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Commercial real estate                                                               |   |               | 25,909  |   |                                      |   | 5,606  |                      |   |   | 27,770                   |   |   |                                    | 6      |   |   |   | - |   |
| Chicago                                                                              |   |               | 41,614  |   |                                      |   | 10,234 |                      |   |   | 43,925                   |   |   |                                    | 11     |   |   |   | - |   |
| Total commercial real estate                                                         |   |               | 138,601 |   |                                      |   | 34,666 |                      |   |   | 146,887                  |   |   |                                    | 20     |   |   |   | - |   |
|                                                                                 |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Residential mortgages:                                                               |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Chicago                                                                              |   |               | 59      |   |                                      |   | 18     |                      |   |   | 59                       |   |   |                                    | -      |   |   |   | - |   |
| Community                                                                            |   |               | 510     |   |                                      |   | 158    |                      |   |   | 512                      |   |   |                                    | -      |   |   |   | - |   |
| Home equity:                                                                         |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Chicago                                                                              |   |               | 719     |   |                                      |   | 75     |                      |   |   | 721                      |   |   |                                    | -      |   |   |   | - |   |
| Community                                                                            |   |               | 68      |   |                                      |   | 21     |                      |   |   | 68                       |   |   |                                    | -      |   |   |   | - |   |
| Consumer loans:                                                                      |   |               |    |   |                                      |   |   |                      |   |   |                     |   |   |                                    |   |   |   |   |   |   |
| Community                                                                            |   |               | 280     |   |                                      |   | 28     |                      |   |   | 281                      |   |   |                                    | -      |   |   |   | - |   |
| Total impaired loans with allocated allowance                                        |   | $                  | 161,190 |   |                                      | $      | 39,191 |                      |   | $      | 171,308                  |   |   | $                                       | 22     |   |   | $ | - |   |

----

|                                                                             |   | March 31, 2011 |   |
|---------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                  |   | SpecialMention           |   |   | Substandard |   |   | Doubtful |   |   | Loss |   |   | Pass |   |   | Not Rated |   |   | Total Loans |   |
|                                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                            |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, industrial and agricultural loans:                                        |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   | $                        | 15,867 |   |   | $ | 26,994 |   |   | $ | 1,498 |   |   | $ | - |   |   | $ | 8,588 |   |   | $ | - |   |   | $ | 52,947 |   |
| Chicago                                                                               |   |                     | 1,860  |   |   |   | 16,474 |   |   |   | 1,423 |   |   |   | - |   |   |   | 11,556 |   |   |   | - |   |   |   | 31,313 |   |
| Community                                                                             |   |                     | 10,601 |   |   |   | 29,428 |   |   |   | 1,304 |   |   |   | - |   |   |   | 246,617 |   |   |   | - |   |   |   | 287,950 |   |
| Economic development loans and other obligations of state and political subdivisions: |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community                                                                             |   |                     | 511    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,288 |   |   |   | - |   |   |   | 14,799 |   |
| Total commercial                                                                      |   |                     | 28,839 |   |   |   | 72,896 |   |   |   | 4,225 |   |   |   | - |   |   |   | 281,049 |   |   |   | - |   |   |   | 387,009 |   |
| Commercial real estate                                                                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial mortgages:                                                                 |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |                     | 27,382 |   |   |   | 100,612 |   |   |   | 12,359 |   |   |   | - |   |   |   | 165,736 |   |   |   | - |   |   |   | 306,089 |   |
| Chicago                                                                               |   |                     | 5,716  |   |   |   | 51,437 |   |   |   | 5,891 |   |   |   | - |   |   |   | 17,158 |   |   |   | - |   |   |   | 80,202 |   |
| Community                                                                             |   |                     | 2,237  |   |   |   | 7,032 |   |   |   | 576 |   |   |   | - |   |   |   | 32,176 |   |   |   | - |   |   |   | 42,021 |   |
| Construction and development:                                                         |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |                     | 4,372  |   |   |   | 55,743 |   |   |   | 5,606 |   |   |   | - |   |   |   | 34,335 |   |   |   | - |   |   |   | 100,056 |   |
| Chicago                                                                               |   |                     | 634    |   |   |   | 34,592 |   |   |   | 10,234 |   |   |   | - |   |   |   | 2,339 |   |   |   | - |   |   |   | 47,799 |   |
| Community                                                                             |   |                     | 947    |   |   |   | 308 |   |   |   | - |   |   |   | - |   |   |   | 2,657 |   |   |   | - |   |   |   | 3,912 |   |
| Total commercial real estate                                                          |   |                     | 41,288 |   |   |   | 249,724 |   |   |   | 34,666 |   |   |   | - |   |   |   | 254,401 |   |   |   | - |   |   |   | 580,079 |   |
|                                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgages:                                                                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                               |   |                     | -      |   |   |   | 1,406 |   |   |   | 18 |   |   |   | - |   |   |   | - |   |   |   | 3,376 |   |   |   | 4,800 |   |
| Community                                                                             |   |                     | 117    |   |   |   | 4,746 |   |   |   | 158 |   |   |   | - |   |   |   | - |   |   |   | 128,239 |   |   |   | 133,260 |   |
| Home equity:                                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chicago                                                                               |   |                     | -      |   |   |   | 1,767 |   |   |   | 75 |   |   |   | - |   |   |   | - |   |   |   | 6,250 |   |   |   | 8,092 |   |
| Community                                                                             |   |                     | 171    |   |   |   | 1,479 |   |   |   | 21 |   |   |   | - |   |   |   | - |   |   |   | 107,512 |   |   |   | 109,183 |   |
| Consumer loans:                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | 2 |   |
| Chicago                                                                               |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,058 |   |   |   | 1,058 |   |
| Community                                                                             |   |                     | 59     |   |   |   | 933 |   |   |   | 28 |   |   |   | 16 |   |   |   | - |   |   |   | 59,096 |   |   |   | 60,132 |   |
| Total loans                                                                           |   | $                        | 70,474 |   |   | $ | 332,951 |   |   | $ | 39,191 |   |   | $ | 16 |   |   | $ | 535,450 |   |   | $ | 305,533 |   |   | $ | 1,283,615 |   |

----

|                                                                             |   | December 31, 2010 |   |
|---------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                  |   | 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 |   |

|              |   | Three Months Ended |   |
|-------------------|--------|------------------------------|--------|
|              |   | March 31, 2011     |   |
| Beginning Balance |   | $                            | 49,238 |   |
| Additions         |   |                         | 4,570  |   |
| Sales             |   |                         | (3,233 | ) |
| Write-downs       |   |                         | (1,871 | ) |
| Other changes     |   |                         | (3     | ) |
| Ending Balance    |   | $                            | 48,701 |   |

----

|                          |   | March 31, 2011 |      |   | December 31, 2010 |   |
|-------------------------------|--------|----------------|-----------|--------|-------------------|--------|
| Deposits:                     |   |           |      |   |              |   |
| Non-interest-bearing          |   | $              | 220,300   |   |              | $      | 224,184 |   |
| Interest checking             |   |           | 255,272   |   |              |   | 286,654 |   |
| Money market accounts         |   |           | 137,988   |   |              |   | 199,854 |   |
| Savings                       |   |           | 214,571   |   |              |   | 236,814 |   |
| Time deposits of $100 or more |   |           | 657,347   |   |              |   | 666,671 |   |
| Other interest-bearing        |   |           | 363,961   |   |              |   | 375,702 |   |
|                          |   | $              | 1,849,439 |   |              | $      | 1,989,879 |   |

| Time Deposit Maturities |   |   |      |
|-------------------------|--------|--------|-----------|
|                    |   |   |      |
| 2011                    |   | $      | 445,888   |   |
| 2012                    |   |   | 380,486   |   |
| 2013                    |   |   | 105,171   |   |
| 2014                    |   |   | 23,421    |   |
| 2015 and thereafter     |   |   | 66,342    |   |
|                    |   |   |      |   |
| Total                   |   | $      | 1,021,308 |   |

----

|                                                                                                                                                                                                        |   | March 31, |    |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                        |   | 2011           |    |   | 2010              |   |
| Federal Home Loan Bank (FHLB) Advances Fixed maturity advances (weighted average rate of 3.08% and 2.78% as of March 31, 2011 and December 31, 2010, respectively)                                          |   | $              | 102,000 |   |              | $      | 114,000 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Securities sold under repurchase agreements with maturities at various dates through 2013 (weighted average rate of 4.60% as of March 31, 2011 and December 31, 2010, respectively)                         |   |           | 80,000  |   |              |   | 80,000 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Note payable, secured by equipment, with a fixed interest rate of 7.26%, due at various dates through 2012                                                                                                  |   |           | 1,106   |   |              |   | 1,425 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Subordinated debt, unsecured, with a floating interest rate equal to three- month LIBOR plus 3.20%, with a maturity date of April 24, 2013 *                                                                |   |           | 10,000  |   |              |   | 10,000 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Subordinated debt, unsecured, with a floating interest rate equal to three- month LIBOR plus 2.85%, with a maturity date of April 7, 2014 *                                                                 |   |           | 4,000   |   |              |   | 4,000 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Floating Rate Capital Securities, with an interest rate equal to six-month LIBOR plus 3.75%, with a maturity date of July 25, 2031, and callable effective July 25, 2011, at par  **              |   |           | 18,557  |   |              |   | 18,557 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Floating Rate Capital Securities, with an interest rate equal to three-month LIBOR plus 3.10%, with a maturity date of June 26, 2033, and callable quarterly, at par  **                          |   |           | 35,568  |   |              |   | 35,568 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Floating Rate Capital Securities, with an interest rate equal to three-month LIBOR plus 1.57%, with a maturity date of June 30,  2037, and callable effective June 30, 2012, at par  ** |   |           | 20,619  |   |              |   | 20,619 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Floating Rate Capital Securities, with an interest rate equal to three-month LIBOR plus 1.70%, with a maturity date of December 15, 2036, and callable effective December 15, 2011, at par  **    |   |           | 10,310  |   |              |   | 10,310 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Senior unsecured debt guaranteed by FDIC under the TLGP, with a fixed rate of 2.625%, with a maturity date of March 30, 2012                                                                                |   |           | 50,000  |   |              |   | 50,000 |   |
|                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
| Other                                                                                                                                                                                                       |   |           | 3,368   |   |              |   | 3,368 |   |
| Total long-term borrowings                                                                                                                                                                                  |   | $              | 335,528 |   |              | $      | 347,847 |   |

----

|                                                       |   | March 31, |    |   | December 31, |   |
|------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                       |   | 2011           |    |   | 2010              |   |
| Commitments to extend credit                               |   | $              | 240,591 |   |              | $      | 261,791 |   |
|                                                       |   |           |    |   |              |   |   |   |
| Standby letters of credit                                  |   |           | 9,296   |   |              |   | 10,717 |   |
|                                                       |   |           |    |   |              |   |   |   |
| Non-reimbursable standby letters of credit and commitments |   |           | 460     |   |              |   | 780 |   |

----

|                                          |   | March 31, 2011 |   |   | December 31, 2010 |   |
|----------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                               |   | 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                            |   | $              | 5,862  |   |              | $      | (6,145 | ) |   | $ | (283 | ) |   | $ | 6,630 |   |   | $ | (7,008 | ) |   | $ | (378 | ) |
|                                               |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments: |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage banking derivatives                       |   |           | 43     |   |              |   | (10 | ) |   |   | 33 |   |   |   | 31 |   |   |   | (149 | ) |   |   | (118 | ) |

----

|                                          |   | March 31, |     |   | December 31, |   |
|-----------------------------------------------|--------|----------------|----------|--------|-------------------|--------|
|                                          |   | 2011           |     |   | 2010              |   |
|                                          |   |           |     |   |              |   |
| ASSETS                                        |   |           |     |   |              |   |
| Cash and cash equivalents                     |   | $              | 1,124    |   |              | $      | 1,699 |   |
| Investment in banking subsidiaries            |   |           | 40,532   |   |              |   | 84,643 |   |
| Investment in other subsidiaries              |   |           | 514      |   |              |   | 503 |   |
| Securities available for sale                 |   |           | 2,554    |   |              |   | 2,554 |   |
| Other assets                                  |   |           | 1,453    |   |              |   | 1,424 |   |
| TOTAL ASSETS                                  |   | $              | 46,177   |   |              | $      | 90,823 |   |
|                                          |   |           |     |   |              |   |   |   |
| LIABILITIES                                   |   |           |     |   |              |   |   |   |
| Long-term borrowings                          |   | $              | 99,054   |   |              | $      | 99,054 |   |
| Dividends payable                             |   |           | 6,792    |   |              |   | 5,747 |   |
| Other liabilities                             |   |           | 5,409    |   |              |   | 4,861 |   |
|                                          |   |           |     |   |              |   |   |   |
| Total liabilities                             |   |           | 111,255  |   |              |   | 109,662 |   |
|                                          |   |           |     |   |              |   |   |   |
| SHAREHOLDERS' EQUITY                          |   |           |     |   |              |   |   |   |
| Preferred Stock                               |   |           | 82,447   |   |              |   | 82,359 |   |
| Common stock                                  |   |           | 21,045   |   |              |   | 21,053 |   |
| Additional paid-in capital                    |   |           | 217,279  |   |              |   | 217,174 |   |
| Retained earnings (deficit)                   |   |           | (381,932 | )      |              |   | (334,593 | ) |
| Accumulated other comprehensive income (loss) |   |           | (3,917   | )      |              |   | (4,832 | ) |
| Total shareholders' equity                    |   |           | (65,078  | )      |              |   | (18,839 | ) |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    |   | $              | 46,177   |   |              | $      | 90,823 |   |

----

| For three months ended March 31, 2011              |   | Banking |      |   | Other  |   |   | Total  |   |
|----------------------------------------------------|--------|---------|-----------|--------|--------|--------|--------|--------|--------|
| Interest income                                    |   | $       | 17,561    |   |   | $      | 23     |   |   | $ | 17,584 |   |
| Interest expense                                   |   |    | 7,600     |   |   |   | 797    |   |   |   | 8,397 |   |
| Net interest income                                |   |    | 9,961     |   |   |   | (774   | )      |   |   | 9,187 |   |
| Provision for loan losses                          |   |    | 36,790    |   |   |   | -      |   |   |   | 36,790 |   |
| Other income                                       |   |    | 5,356     |   |   |   | 58     |   |   |   | 5,414 |   |
| Other expense                                      |   |    | 24,041    |   |   |   | 461    |   |   |   | 24,502 |   |
| Earnings (Loss) before income taxes                |   |    | (45,514   | )      |   |   | (1,177 | )      |   |   | (46,691 | ) |
| Income taxes (benefit)                             |   |    | (488      | )      |   |   | 3      |   |   |   | (485 | ) |
| Net income (loss)                                  |   |    | (45,026   | )      |   |   | (1,180 | )      |   |   | (46,206 | ) |
| Preferred stock dividends and discount accretion   |   |    | -         |   |   |   | 1,133  |   |   |   | 1,133 |   |
| Net income (loss) available to common shareholders |   | $       | (45,026   | )      |   | $      | (2,313 | )      |   | $ | (47,339 | ) |
|                                               |   |    |      |   |   |   |   |   |   |   |   |   |
| Segment assets                                     |   | $       | 2,175,584 |   |   | $      | 4,376  |   |   | $ | 2,179,960 |   |
|                                               |   |    |      |   |   |   |   |   |   |   |   |   |
| For three months ended March 31, 2010              |   | Banking |      |   | Other  |   |   | Total  |   |
| Interest income                                    |   | $       | 25,605    |   |   | $      | 23     |   |   | $ | 25,628 |   |
| Interest expense                                   |   |    | 9,984     |   |   |   | 784    |   |   |   | 10,768 |   |
| Net interest income                                |   |    | 15,621    |   |   |   | (761   | )      |   |   | 14,860 |   |
| Provision for loan losses                          |   |    | 52,700    |   |   |   | -      |   |   |   | 52,700 |   |
| Other income                                       |   |    | 7,501     |   |   |   | 89     |   |   |   | 7,590 |   |
| Other expense                                      |   |    | 22,295    |   |   |   | 198    |   |   |   | 22,493 |   |
| Earnings (Loss) before income taxes                |   |    | (51,873   | )      |   |   | (870   | )      |   |   | (52,743 | ) |
| Income taxes (benefit)                             |   |    | -         |   |   |   | 8      |   |   |   | 8 |   |
| Net income (loss)                                  |   | $       | (51,873   | )      |   | $      | (878   | )      |   | $ | (52,751 | ) |
| Preferred stock dividends and discount accretion   |   |    | -         |   |   |   | 1,128  |   |   |   | 1,128 |   |
| Net income (loss) available to common shareholders |   | $       | (51,873   | )      |   |   | (2,006 | )      |   | $ | (53,879 | ) |
|                                               |   |    |      |   |   |   |   |   |   |   |   |   |
| Segment assets                                     |   | $       | 2,909,638 |   |   | $      | 2,892  |   |   | $ | 2,912,530 |   |

----

----

|                                |   |   |    |   |                   |   |   |                                      |   |                       |                |   |           | Minimum |   |
|------------------------------------------|--------|--------|---------|--------|------------------------|--------|--------|-------------------------------------------|--------|----------------------------|---------------------|--------|----------------|---------|--------|
|                                     |   |   |    |   |                   |   |   | Minimum Ratios For Capital |   |                       | Capital Ratios |   |
|                                     |   | Actual |    |   | Adequacy Purposes |   |   | Under Capital Directive         |   |
|                                     |   | Amount |    |   | Ratio                  |   |   | Amount                                    |   |                       | Ratio               |   |           | Amount  |   |   | Ratio |   |
| As of March 31, 2011                     |   |   |    |   |                   |   |   |                                      |   |                       |                |   |           |    |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |   |    |   |                   |   |   |                                      |   |                       |                |   |           |    |   |   |   |   |
| Consolidated                             |   | $      | (64,898 | )      |                   |   | -4.84  | %                                         |   | $                          | 107,259             |   |           |    | 8.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 58,654  |   |                   |   | 4.38   | %                                         |   |                       | 107,179             |   |           |    | 8.00   | % |   |   | 154,070 |   |   |   | 11.50 | % |
|                                     |   |   |    |   |                   |   |   |                                      |   |                       |                |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |   |    |   |                   |   |   |                                      |   |                       |                |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | (64,898 | )      |                   |   | -4.84  | %                                         |   | $                          | 53,630              |   |           |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 40,715  |   |                   |   | 3.04   | %                                         |   |                       | 53,590              |   |           |    | 4.00   | % |   |   | 80,384 |   |   |   | 6.00 | % |
|                                     |   |   |    |   |                   |   |   |                                      |   |                       |                |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Average Assets)       |   |   |    |   |                   |   |   |                                      |   |                       |                |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | (64,898 | )      |                   |   | -2.80  | %                                         |   | $                          | 92,706              |   |           |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 40,715  |   |                   |   | 1.76   | %                                         |   |                       | 92,531              |   |           |    | 4.00   | % |   |   | 185,062 |   |   |   | 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, 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 | % |

----

| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------|

----

|   | · | Pursue all available strategies to obtain an acceptable commitment to recapitalize the Bank; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | Continue to serve our community banking customers in our core market area and take all available actions necessary to ensure the safety of their deposits; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | Make continual adjustments to increase profitability. |
|--------|--------|-------------------------------------------------------|

----

|   | · | Average earning assets decreased $594,926, or 23.5%, primarily due to the branch divestitures, loan paydowns, loan payoffs and loan sales occurring throughout 2010 and 2011.  Average balances of interest bearing liabilities decreased by $461,488 and non-interest bearing deposits declined by $48,207 because of the branch divestitures, partially offsetting the loss of interest income. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The average yield on total securities declined 129 basis points to 2.74%.  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 average rate paid on interest bearing liabilities was 1.64% for the first quarter of 2011, an 8 basis point decline from the first quarter of 2010.  Savings deposit rates decreased 45 basis points, interest-bearing checking rates decreased 35 basis points, time deposit rates declined 34 basis points and money market rates declined 31 basis points.  The branch divestitures in 2010 and the reduction in Indiana public deposits in the first quarter of 2011 had an unfavorable impact on the average rate on interest bearing liabilities as lower cost transaction deposits now make up a smaller share of total funding.  The average rate paid on sources of funds other than time and transaction deposits, which include repurchase agreements, FHLB advances and other sources, increased from 2.54% to 3.00% during the quarter ended March 31, 2011, as compared to the quarter ended March 31, 2010.  Decreases in these funding sources included $20,633 in customer repurchase agreements and $11,337 in long-term FHLB borrowings.  The average rate paid on long-term borrowings increased 0.40%, due primarily from variable rate structured repurchase agreements in the first quarter of 2010 being converted to fixed rate debt in April of 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We elected to maintain a higher level of liquidity and increased cash position throughout 2010 and 2011 due to our financial performance.  Earnings on the liquid assets were less than the costs of the related funding, resulting in a reduction in net interest income. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| For Three Months Ended March 31,          |   | 2011     |      |   | 2010       |   |
|-------------------------------------------|--------|----------|-----------|--------|------------|--------|
|                                      |   | Average  |      |   | Interest   |   |   | Yield/ |   |   | Average |   |   | Interest |   |   | Yield/ |   |
| EARNING ASSETS:                           |   | Balances |      |   | & Fees |   |   | Cost |   |   | Balances |   |   | & Fees |   |   | Cost |   |
| Short-term investments                    |   | $        | 56,582    |   |       | $      | 219 |   |   |   | 1.57 | % |   | $ | 49,760 |   |   | $ | 219 |   |   |   | 1.78 | % |
| Loans held for sale                       |   |     | 1,604     |   |       |   | 16 |   |   |   | 4.00 | % |   |   | 2,186 |   |   |   | 26 |   |   |   | 4.83 | % |
| Securities                                |   |     | 523,588   |   |       |   | 3,590 |   |   |   | 2.74 | % |   |   | 363,983 |   |   |   | 3,664 |   |   |   | 4.03 | % |
| Regulatory Stock                          |   |     | 21,866    |   |       |   | 195 |   |   |   | 3.61 | % |   |   | 28,716 |   |   |   | 221 |   |   |   | 3.08 | % |
| Loans                                     |   |     | 1,328,178 |   |       |   | 13,726 |   |   |   | 4.15 | % |   |   | 2,082,099 |   |   |   | 21,672 |   |   |   | 4.18 | % |
| Total earning assets                      |   |     | 1,931,818 |   |       | $      | 17,746 |   |   |   | 3.71 | % |   |   | 2,526,744 |   |   | $ | 25,802 |   |   |   | 4.13 | % |
|                                      |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan loss                   |   |     | (97,987   | )      |       |   |   |   |   |   |   |   |   |   | (93,081 | ) |   |   |   |   |   |   |   |   |
| Other non-earning assets                  |   |     | 482,679   |   |       |   |   |   |   |   |   |   |   |   | 507,144 |   |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                              |   | $        | 2,316,510 |   |       |   |   |   |   |   |   |   |   | $ | 2,940,807 |   |   |   |   |   |   |   |   |   |
|                                      |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST-BEARING LIABILITIES:             |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                  |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and interest-bearing demand       |   | $        | 506,051   |   |       | $      | 359 |   |   |   | 0.29 | % |   | $ | 760,788 |   |   | $ | 1,289 |   |   |   | 0.69 | % |
| Money market accounts                     |   |     | 168,593   |   |       |   | 307 |   |   |   | 0.74 | % |   |   | 259,488 |   |   |   | 675 |   |   |   | 1.05 | % |
| Certificates of deposit and other time    |   |     | 1,015,506 |   |       |   | 4,826 |   |   |   | 1.93 | % |   |   | 1,098,139 |   |   |   | 6,138 |   |   |   | 2.27 | % |
| Total interest-bearing deposits           |   |     | 1,690,150 |   |       |   | 5,492 |   |   |   | 1.32 | % |   |   | 2,118,415 |   |   |   | 8,102 |   |   |   | 1.55 | % |
|                                      |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings                     |   |     | 40,055    |   |       |   | 28 |   |   |   | 0.28 | % |   |   | 60,688 |   |   |   | 45 |   |   |   | 0.30 | % |
| Long-term borrowings                      |   |     | 347,150   |   |       |   | 2,877 |   |   |   | 3.31 | % |   |   | 359,740 |   |   |   | 2,621 |   |   |   | 2.91 | % |
| Total interest-bearing liabilities        |   |     | 2,077,355 |   |       | $      | 8,397 |   |   |   | 1.64 | % |   |   | 2,538,843 |   |   | $ | 10,768 |   |   |   | 1.72 | % |
|                                      |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits             |   |     | 223,028   |   |       |   |   |   |   |   |   |   |   |   | 271,235 |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities and |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| shareholders' equity                      |   |     | 16,127    |   |       |   |   |   |   |   |   |   |   |   | 130,729 |   |   |   |   |   |   |   |   |   |
|                                      |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND                     |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHAREHOLDERS' EQUITY                      |   | $        | 2,316,510 |   |       |   |   |   |   |   |   |   |   | $ | 2,940,807 |   |   |   |   |   |   |   |   |   |
|                                      |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income/earning assets            |   |     |      |   |       | $      | 17,746 |   |   |   | 3.71 | % |   |   |   |   |   | $ | 25,802 |   |   |   | 4.13 | % |
| Interest expense/earning assets           |   |     |      |   |       |   | 8,397 |   |   |   | 1.76 | % |   |   |   |   |   |   | 10,768 |   |   |   | 1.73 | % |
| Net interest income/earning assets        |   |     |      |   |       | $      | 9,349 |   |   |   | 1.95 | % |   |   |   |   |   | $ | 15,034 |   |   |   | 2.40 | % |

|   | · | Deposit service charges declined $1,468 for the first quarter of 2011, primarily due to the sale of the deposit accounts from seventeen banking centers since the first quarter of 2010. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The first quarter of 2011 included a $373 net loss on the sale of OREO properties, compared to a net gain of $66 during the first quarter of 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other-than-temporary securities impairment during the first quarter of 2010 was $210, while there were no impairment charges during the first quarter of 2011. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An increase in loan and other real estate owned expense of $2,815 consisted of increases in loan collection costs of $902, other real estate owned related costs of $439, and other real estate owned writedowns of $1,474.  The increase is attributed to higher levels of other 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.  Lower values on newly ordered appraisals contributed to the $1,474 of first quarter 2011 writedowns. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | FDIC insurance premiums increased $1,662 during the first quarter of 2011.  The initial base assessment rate for the FDIC assessment is assigned by risk categories that are based mainly on the capitalization category of a bank.  The increase in the FDIC assessment was caused primarily from the Bank being in the “undercapitalized” capital category for purposes of the PCA regulations as of December 31, 2010. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Professional fees increased $1,509, primarily due to an increase in legal fees of $1,033. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Salaries and employee benefits decreased $1,982, or 21.5%, during the first quarter of 2011.  The decrease in salaries of $1,892 was mainly due to the sale of seventeen branches since the first quarter of 2010, as well as a reduction in workforce as part of our profit improvement program. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| LOAN PORTFOLIO                                                                       |   |      |      |   |         |   |
|--------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                                                 |   | March 31, |      |   | December 31, |   |
|                                                                                 |   | 2011      |      |   | 2010         |   |
| Commercial, industrial and agricultural loans                                        |   | $         | 372,210   |   |         | $      | 401,936 |   |
| Economic development loans and other obligations of state and political subdivisions |   |      | 14,799    |   |         |   | 8,992 |   |
| Lease financing                                                                      |   |      | -         |   |         |   | 424 |   |
| Commercial mortgages                                                                 |   |      | 428,312   |   |         |   | 450,292 |   |
| Construction and development                                                         |   |      | 151,767   |   |         |   | 162,237 |   |
| Residential mortgages                                                                |   |      | 138,060   |   |         |   | 143,243 |   |
| Home equity lines of credit                                                          |   |      | 117,275   |   |         |   | 118,406 |   |
| Consumer loans                                                                       |   |      | 61,192    |   |         |   | 63,974 |   |
| Total loans                                                                          |   |      | 1,283,615 |   |         |   | 1,349,504 |   |

----

| SUMMARY OF ALLOWANCE FOR LOAN LOSSES     |   |               |    |   |   |   |
|------------------------------------------|--------|--------------------|---------|--------|--------|--------|
|                                     |   | Three Months Ended |    |
|                                     |   | March 31,          |    |
|                                |   | 2011               |    |   | 2010   |   |
| Beginning Balance                        |   | $                  | 95,801  |   |   | $      | 88,670 |   |
| Loans charged off                        |   |               | (21,024 | )      |   |   | (40,113 | ) |
| Recoveries                               |   |               | 1,158   |   |   |   | 724 |   |
| Provision for loan losses                |   |               | 36,790  |   |   |   | 52,700 |   |
| Allowance related to divested loans sold |   |               | (238    | )      |   |   | - |   |
| Ending Balance                           |   | $                  | 112,487 |   |   | $      | 101,981 |   |
|                                     |   |               |    |   |   |   |   |   |
| Percent of total loans                   |   |               | 8.76    | %      |   |   | 5.07 | % |
|                                     |   |               |    |   |   |   |   |   |
| Annualized % of average loans:           |   |               |    |   |   |   |   |   |
| Net charge-offs                          |   |               | 6.07    | %      |   |   | 7.67 | % |
| Provision for loan losses                |   |               | 11.23   | %      |   |   | 10.27 | % |

----

|   | · | We are continuing to obtain new appraisals on properties securing our non-performing CRE loans and using those appraisals to determine specific reserves within the allowance for loan losses.  As we receive new appraisals on properties securing non-performing loans, we recognize charge-offs and adjust specific reserves as appropriate. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We shifted the credit analysis effort for our Chicago portfolio from Chicago and our CRE loan production offices formerly originated by our Greater Cincinnati LPO to our centralized Business Service Center in Evansville. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have exited the CRE line of business within the Chicago and Greater Cincinnati LPO. |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | We have added additional loan workout specialists to our Chicago and CRE group and transitioned our relationship managers to assist with an orderly exit strategy similar to our steps taken in Chicago. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                       |   | March 31, |    |   | December 31, |   |
|------------------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                                       |   | 2011      |    |   | 2010         |   |
| Nonaccrual loans                                           |   | $         | 184,012 |   |         | $      | 196,942 |   |
| 90 days or more past due loans                             |   |      | 5,666   |   |         |   | 73 |   |
| Total non-performing loans                                 |   | $         | 189,678 |   |         |   | 197,015 |   |
| Trust preferred held for trading                           |   |      | 421     |   |         |   | 329 |   |
| Other real estate owned                                    |   |      | 48,701  |   |         |   | 49,238 |   |
| Total non-performing assets                                |   | $         | 238,800 |   |         | $      | 246,582 |   |
|                                                       |   |      |    |   |         |   |   |   |
| Ratios:                                                    |   |      |    |   |         |   |   |   |
| Non-performing Loans to Loans                              |   |      | 14.78   | %      |         |   | 14.60 | % |
| Non-performing Assets to Loans and Other Real Estate Owned |   |      | 17.92   | %      |         |   | 17.63 | % |
| Allowance for Loan Losses to Non-performing Loans          |   |      | 59.30   | %      |         |   | 48.63 | % |

|              |   | Three Months Ended |   |
|-------------------|--------|--------------------|--------|
|              |   | March 31, 2011     |   |
| Beginning Balance |   | $                  | 49,238 |   |
| Additions         |   |               | 4,570  |   |
| Sales             |   |               | (3,233 | ) |
| Write-downs       |   |               | (1,871 | ) |
| Other changes     |   |               | (3     | ) |
| Ending Balance    |   | $                  | 48,701 |   |

----

|                                                       |   | March 31, |    |   | December 31, |   |
|------------------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                                       |   | 2011      |    |   | 2010         |   |
| Commitments to extend credit                               |   | $         | 240,591 |   |         | $      | 261,791 |   |
|                                                       |   |      |    |   |         |   |   |   |
| Standby letters of credit                                  |   |      | 9,296   |   |         |   | 10,717 |   |
|                                                       |   |      |    |   |         |   |   |   |
| Non-reimbursable standby letters of credit and commitments |   |      | 460     |   |         |   | 780 |   |

----

----

|                                     |   |   |    |   |              |   |   |                       |   |                       |           |   |           | Minimum |   |
|------------------------------------------|--------|--------|---------|--------|-------------------|--------|--------|----------------------------|--------|----------------------------|----------------|--------|----------------|---------|--------|
|                                     |   |   |    |   |              |   |   | Minimum Ratios For Capital |   |                       | Capital Ratios |   |
|                                     |   | Actual |    |   | Adequacy Purposes |   |   | Under Capital Directive    |   |
|                                     |   | Amount |    |   | Ratio             |   |   | Amount                     |   |                       | Ratio          |   |           | Amount  |   |   | Ratio |   |
| As of March 31, 2011                     |   |   |    |   |              |   |   |                       |   |                       |           |   |           |    |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |   |    |   |              |   |   |                       |   |                       |           |   |           |    |   |   |   |   |
| Consolidated                             |   | $      | (64,898 | )      |              |   | -4.84  | %                          |   | $                          | 107,259        |   |           |    | 8.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 58,654  |   |              |   | 4.38   | %                          |   |                       | 107,179        |   |           |    | 8.00   | % |   |   | 154,070 |   |   |   | 11.50 | % |
|                                     |   |   |    |   |              |   |   |                       |   |                       |           |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |   |    |   |              |   |   |                       |   |                       |           |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | (64,898 | )      |              |   | -4.84  | %                          |   | $                          | 53,630         |   |           |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 40,715  |   |              |   | 3.04   | %                          |   |                       | 53,590         |   |           |    | 4.00   | % |   |   | 80,384 |   |   |   | 6.00 | % |
|                                     |   |   |    |   |              |   |   |                       |   |                       |           |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Average Assets)       |   |   |    |   |              |   |   |                       |   |                       |           |   |           |    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | (64,898 | )      |              |   | -2.80  | %                          |   | $                          | 92,706         |   |           |    | 4.00   | % |   |   | N/A |   |   |   | N/A |   |
| Integra Bank                             |   |   | 40,715  |   |              |   | 1.76   | %                          |   |                       | 92,531         |   |           |    | 4.00   | % |   |   | 185,062 |   |   |   | 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, 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 | % |

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|   | 31.1 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Executive Officer |
|--------|------|----------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer |
|--------|------|----------------------------------------------------------------------------------------------------|

|   | 32 | Certification of Chief Executive Officer and Chief Financial Officer |
|--------|----|----------------------------------------------------------------------|

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|   | INTEGRA BANK CORPORATION |
|--------|--------------------------|
|   |                     |   |
|   | By                       | /s/ Michael J. Alley |
|   |                     | Chairman of the Board |
|   |                     | and Chief Executive Officer |
|   |                     | May 2, 2011 |
|   |                     |   |
|   |                     | /s/ Michael B. Carroll |
|   |                     | Chief Financial Officer |
|   |                     | May 2, 2011 |

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