|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
|--------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                   |   | 2012   |      |   | 2011   |   |      | 2010   |   |   | 2009      |   |   | 2008   |      |
| Summary of Operations                                  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
| Total interest income                                  |   | $      | 112,212   |   |   | $      | 112,888   |   |   | $      | 121,916   |   |   | $      | 132,036   |   |   | $ | 147,673 |   |
| Total interest expense                                 |   |   | 14,450    |   |   |   | 20,758    |   |   |   | 27,628    |   |   |   | 36,603    |   |   |   | 45,918 |   |
| Net interest income                                    |   |   | 97,762    |   |   |   | 92,130    |   |   |   | 94,288    |   |   |   | 95,433    |   |   |   | 101,755 |   |
| Provision for loan losses                              |   |   | 6,375     |   |   |   | 4,600     |   |   |   | 7,093     |   |   |   | 6,994     |   |   |   | 10,515 |   |
| Total other income                                     |   |   | 55,257    |   |   |   | 54,860    |   |   |   | 48,939    |   |   |   | 51,983    |   |   |   | 21,936 |   |
| Total other expenses                                   |   |   | 87,401    |   |   |   | 81,141    |   |   |   | 78,721    |   |   |   | 77,244    |   |   |   | 75,580 |   |
| Income before income taxes                             |   |   | 59,243    |   |   |   | 61,249    |   |   |   | 57,413    |   |   |   | 63,178    |   |   |   | 37,596 |   |
| Income tax expense                                     |   |   | 20,298    |   |   |   | 20,571    |   |   |   | 18,453    |   |   |   | 20,533    |   |   |   | 9,487 |   |
| Net income available to common  shareholders |   |   | 38,945    |   |   |   | 40,678    |   |   |   | 38,960    |   |   |   | 42,645    |   |   |   | 28,109 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Per Share Data                                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net income basic                                       |   | $      | 2.63      |   |   | $      | 2.68      |   |   | $      | 2.48      |   |   | $      | 2.69      |   |   | $ | 1.74 |   |
| Net income diluted                                     |   |   | 2.61      |   |   |   | 2.67      |   |   |   | 2.47      |   |   |   | 2.68      |   |   |   | 1.74 |   |
| Cash dividends declared                                |   |   | 1.40      |   |   |   | 1.37      |   |   |   | 1.36      |   |   |   | 1.36      |   |   |   | 1.36 |   |
| Book value per share                                   |   |   | 22.47     |   |   |   | 21.05     |   |   |   | 20.31     |   |   |   | 19.45     |   |   |   | 17.90 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Selected Average Balances                              |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total loans                                            |   | $      | 2,041,876 |   |   | $      | 1,899,388 |   |   | $      | 1,820,588 |   |   | $      | 1,797,115 |   |   | $ | 1,743,846 |   |
| Securities                                             |   |   | 409,431   |   |   |   | 454,513   |   |   |   | 507,915   |   |   |   | 501,475   |   |   |   | 458,446 |   |
| Interest-earning assets                                |   |   | 2,489,072 |   |   |   | 2,391,484 |   |   |   | 2,348,258 |   |   |   | 2,304,053 |   |   |   | 2,210,236 |   |
| Deposits                                               |   |   | 2,338,891 |   |   |   | 2,221,414 |   |   |   | 2,190,324 |   |   |   | 2,136,949 |   |   |   | 2,015,075 |   |
| Long-term debt                                         |   |   | 16,495    |   |   |   | 16,495    |   |   |   | 16,876    |   |   |   | 18,286    |   |   |   | 21,506 |   |
| Shareholders’ equity                             |   |   | 325,073   |   |   |   | 316,161   |   |   |   | 316,030   |   |   |   | 294,583   |   |   |   | 303,189 |   |
| Total assets                                           |   |   | 2,837,234 |   |   |   | 2,701,720 |   |   |   | 2,654,497 |   |   |   | 2,608,750 |   |   |   | 2,502,411 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Selected Year-End Balances                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net loans                                              |   | $      | 2,127,560 |   |   | $      | 1,953,694 |   |   | $      | 1,846,776 |   |   | $      | 1,773,893 |   |   | $ | 1,790,180 |   |
| Securities                                             |   |   | 402,039   |   |   |   | 396,175   |   |   |   | 453,585   |   |   |   | 513,931   |   |   |   | 459,657 |   |
| Interest-earning assets                                |   |   | 2,574,684 |   |   |   | 2,374,804 |   |   |   | 2,334,921 |   |   |   | 2,309,884 |   |   |   | 2,276,119 |   |
| Deposits                                               |   |   | 2,409,316 |   |   |   | 2,221,268 |   |   |   | 2,171,375 |   |   |   | 2,163,722 |   |   |   | 2,041,130 |   |
| Long-term debt                                         |   |   | 16,495    |   |   |   | 16,495    |   |   |   | 16,495    |   |   |   | 16,959    |   |   |   | 19,047 |   |
| Shareholders’ equity                             |   |   | 333,274   |   |   |   | 311,134   |   |   |   | 314,861   |   |   |   | 308,902   |   |   |   | 285,463 |   |
| Total assets                                           |   |   | 2,917,466 |   |   |   | 2,777,109 |   |   |   | 2,637,295 |   |   |   | 2,622,620 |   |   |   | 2,586,403 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Performance Ratios                                     |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Return on average assets                               |   |   | 1.37      | %      |   |   | 1.51      | %      |   |   | 1.47      | %      |   |   | 1.63      | % |   |   | 1.12 | % |
| Return on average equity                               |   |   | 11.98     |   |   |   | 12.87     |   |   |   | 12.33     |   |   |   | 14.48     |   |   |   | 9.27 |   |
| Return on average tangible common equity               |   |   | 14.74     |   |   |   | 15.66     |   |   |   | 15.02     |   |   |   | 17.95     |   |   |   | 11.44 |   |
| Net interest margin                                    |   |   | 3.96      |   |   |   | 3.89      |   |   |   | 4.06      |   |   |   | 4.18      |   |   |   | 4.64 |   |
| Efficiency ratio                                       |   |   | 57.16     |   |   |   | 55.87     |   |   |   | 52.93     |   |   |   | 49.99     |   |   |   | 46.27 |   |
| Dividend payout ratio                                  |   |   | 53.23     |   |   |   | 51.12     |   |   |   | 54.84     |   |   |   | 50.56     |   |   |   | 78.16 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Asset Quality                                          |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net charge-offs to average loans                       |   |   | 0.34      | %      |   |   | 0.18      | %      |   |   | 0.41      | %      |   |   | 0.59      | % |   |   | 0.33 | % |
| Provision for loan losses to average loans             |   |   | 0.31      |   |   |   | 0.24      |   |   |   | 0.39      |   |   |   | 0.39      |   |   |   | 0.60 |   |
| Allowance for loan losses to nonperforming loans       |   |   | 84.67     |   |   |   | 87.76     |   |   |   | 156.39    |   |   |   | 132.02    |   |   |   | 85.72 |   |
| Allowance for loan losses to total loans               |   |   | 0.88      |   |   |   | 0.98      |   |   |   | 0.98      |   |   |   | 1.03      |   |   |   | 1.22 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Consolidated Capital Ratios                            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total                                                  |   |   | 13.85     | %      |   |   | 14.07     | %      |   |   | 14.81     | %      |   |   | 14.44     | % |   |   | 13.46 | % |
| Tier I Risk-based                                      |   |   | 12.97     |   |   |   | 13.12     |   |   |   | 13.88     |   |   |   | 13.46     |   |   |   | 12.27 |   |
| Tier I Leverage                                        |   |   | 9.82      |   |   |   | 10.18     |   |   |   | 10.54     |   |   |   | 10.10     |   |   |   | 9.47 |   |
| Average equity to average assets                       |   |   | 11.46     |   |   |   | 11.70     |   |   |   | 11.91     |   |   |   | 11.29     |   |   |   | 12.12 |   |
| Average tangible equity to average tangible assets     |   |   | 9.51      |   |   |   | 9.82      |   |   |   | 9.98      |   |   |   | 9.31      |   |   |   | 10.05 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Full-time equivalent employees                         |   |   | 843       |   |   |   | 795       |   |   |   | 805       |   |   |   | 809       |   |   |   | 827 |   |

----

|           |   |      |   |   |         |   |   |   |   |
|----------------|--------|-----------|--------|--------|--------------|--------|--------|--------|--------|
|           |   | Cash      |   |   |         |   |   |   |   |
|           |   | Dividends |   |   | Market Value |   |
|           |   | Per Share |   |   | Low          |   |   | High   |   |
| 2012           |   |      |   |   |         |   |   |   |   |
| Fourth Quarter |   | $         | 0.35   |   |         | $      | 31.78  |   |   | $ | 36.45 |   |
| Third Quarter  |   |      | 0.35   |   |         |   | 32.37  |   |   |   | 36.43 |   |
| Second Quarter |   |      | 0.35   |   |         |   | 30.96  |   |   |   | 35.62 |   |
| First Quarter  |   |      | 0.35   |   |         |   | 32.59  |   |   |   | 37.16 |   |
|           |   |      |   |   |         |   |   |   |   |   |   |   |
| 2011           |   |      |   |   |         |   |   |   |   |   |   |   |
| Fourth Quarter |   | $         | 0.35   |   |         | $      | 26.06  |   |   | $ | 35.10 |   |
| Third Quarter  |   |      | 0.34   |   |         |   | 26.82  |   |   |   | 33.96 |   |
| Second Quarter |   |      | 0.34   |   |         |   | 30.55  |   |   |   | 36.37 |   |
| First Quarter  |   |      | 0.34   |   |         |   | 33.79  |   |   |   | 37.22 |   |

----

----

----

|                        |   |   |   |   |   |   |   |   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                        |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|                        |   |   |   |   |   |   |   |   |   |
| Net income (in thousands)   |   | $      | 38,945 |   |   | $      | 40,678 |   |   | $ | 38,960 |   |
| Earnings per share, basic   |   | $      | 2.63   |   |   | $      | 2.68   |   |   | $ | 2.48 |   |
| Earnings per share, diluted |   | $      | 2.61   |   |   | $      | 2.67   |   |   | $ | 2.47 |   |
| ROA*                        |   |   | 1.37   | %      |   |   | 1.51   | %      |   |   | 1.47 | % |
| ROE*                        |   |   | 11.98  | %      |   |   | 12.87  | %      |   |   | 12.33 | % |
| ROATCE*                     |   |   | 14.74  | %      |   |   | 15.66  | %      |   |   | 15.02 | % |

|                                 |   |         |    |   |   |   |    |     |   |   |     |   |
|--------------------------------------|--------|--------------|---------|--------|--------|--------|---------|----------|--------|--------|----------|--------|
|                                 |   | December 31, |    |   |   |   |    |     |   |
|                                 |   | 2012         |    |   | 2011   |   |    | $ Change |   |   | % Change |   |
|                                 |   |         |    |   |   |   |    |     |   |   |     |   |
| Gross loans                          |   |         | 2,146.4 |   |   |   | 1,973.1 |     |   |   | 173.3    |   |   |   | 8.8 |   |
| Investment securities                |   |         | 402.0   |   |   |   | 396.2   |     |   |   | 5.8      |   |   |   | 1.5 |   |
| Premises and equipment, net          |   |         | 72.7    |   |   |   | 64.6    |     |   |   | 8.1      |   |   |   | 12.5 |   |
| Goodwill and other intangible assets |   |         | 65.1    |   |   |   | 56.2    |     |   |   | 8.9      |   |   |   | 15.8 |   |
|                                 |   |         |    |   |   |   |    |     |   |   |     |   |   |   |   |   |
| Total deposits                       |   |         | 2,409.3 |   |   |   | 2,221.3 |     |   |   | 188.0    |   |   |   | 8.5 |   |
| Short-term borrowings                |   |         | 114.6   |   |   |   | 189.0   |     |   |   | (74.4    | )      |   |   | (39.4 | ) |
| Long-term debt                       |   |         | 16.5    |   |   |   | 16.5    |     |   |   | -        |   |   |   | - |   |
| Total shareholders' equity           |   |         | 333.3   |   |   |   | 311.1   |     |   |   | 22.2     |   |   |   | 7.1 |   |

----

|                                                             |   | 2012    |      |   | 2011     |   |    | 2010   |   |
|------------------------------------------------------------------|--------|---------|-----------|--------|----------|--------|---------|--------|--------|
|                                                             |   | Average |      |   |     |   |    | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
|                                                             |   | Balance |      |   | Interest |   |    | Rate   |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| Assets                                                           |   |    |      |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan portfolio(1):                                               |   |    |      |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Residential real estate(2),(3)                 |   | $       | 1,114,653 |   |     |   | 49,000  |   |   |   | 4.40 | % |   | $ | 1,040,460 |   |   |   | 48,948 |   |   |   | 4.70 | % |   | $ | 1,004,023 |   |   |   | 52,481 |   |   |   | 5.23 | % |
|    Commercial, financial, and agriculture(4),(5)  |   |    | 880,502   |   |     |   | 40,815  |   |   |   | 4.64 |   |   |   | 812,401 |   |   |   | 37,955 |   |   |   | 4.67 |   |   |   | 765,634 |   |   |   | 39,163 |   |   |   | 5.12 |   |
|    Installment loans to individuals(6),(7)        |   |    | 46,721    |   |     |   | 3,311   |   |   |   | 7.09 |   |   |   | 46,167 |   |   |   | 3,375 |   |   |   | 7.31 |   |   |   | 49,724 |   |   |   | 3,796 |   |   |   | 7.63 |   |
|    Previously securitized loans(8)                |   |    | -         |   |     |   | 3,306   |   |   |   | - |   |   |   | 360 |   |   |   | 3,136 |   |   |   | 871.11 |   |   |   | 1,207 |   |   |   | 4,016 |   |   |   | 332.73 |   |
|      Total loans                        |   |    | 2,041,876 |   |     |   | 96,432  |   |   |   | 4.72 |   |   |   | 1,899,388 |   |   |   | 93,414 |   |   |   | 4.92 |   |   |   | 1,820,588 |   |   |   | 99,456 |   |   |   | 5.46 |   |
| Securities:                                                      |   |    |      |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Taxable                                        |   |    | 371,092   |   |     |   | 14,285  |   |   |   | 3.85 |   |   |   | 408,472 |   |   |   | 17,729 |   |   |   | 4.34 |   |   |   | 458,398 |   |   |   | 20,594 |   |   |   | 4.49 |   |
|    Tax-exempt(9)                                  |   |    | 38,339    |   |     |   | 2,218   |   |   |   | 5.79 |   |   |   | 46,041 |   |   |   | 2,611 |   |   |   | 5.67 |   |   |   | 49,517 |   |   |   | 2,826 |   |   |   | 5.71 |   |
|      Total securities                   |   |    | 409,431   |   |     |   | 16,503  |   |   |   | 4.03 |   |   |   | 454,513 |   |   |   | 20,340 |   |   |   | 4.48 |   |   |   | 507,915 |   |   |   | 23,420 |   |   |   | 4.61 |   |
| Deposits in depository institutions                              |   |    | 7,258     |   |     |   | -       |   |   |   | - |   |   |   | 7,655 |   |   |   | - |   |   |   | - |   |   |   | 5,249 |   |   |   | - |   |   |   | - |   |
| Federal funds sold                                               |   |    | 30,507    |   |     |   | 53      |   |   |   | 0.17 |   |   |   | 29,928 |   |   |   | 48 |   |   |   | 0.16 |   |   |   | 14,506 |   |   |   | 29 |   |   |   | 0.20 |   |
|      Total interest-earning assets      |   |    | 2,489,072 |   |     |   | 112,988 |   |   |   | 4.54 |   |   |   | 2,391,484 |   |   |   | 113,802 |   |   |   | 4.76 |   |   |   | 2,348,258 |   |   |   | 122,905 |   |   |   | 5.23 |   |
| Cash and due from banks                                          |   |    | 74,193    |   |     |   |    |   |   |   |   |   |   |   | 58,247 |   |   |   |   |   |   |   |   |   |   |   | 53,384 |   |   |   |   |   |   |   |   |   |
| Bank premises and equipment                                      |   |    | 69,772    |   |     |   |    |   |   |   |   |   |   |   | 64,678 |   |   |   |   |   |   |   |   |   |   |   | 64,666 |   |   |   |   |   |   |   |   |   |
| Other assets                                                     |   |    | 223,783   |   |     |   |    |   |   |   |   |   |   |   | 206,724 |   |   |   |   |   |   |   |   |   |   |   | 207,454 |   |   |   |   |   |   |   |   |   |
|    Less: allowance for loan losses                |   |    | (19,586   | )      |     |   |    |   |   |   |   |   |   |   | (19,413 | ) |   |   |   |   |   |   |   |   |   |   | (19,265 | ) |   |   |   |   |   |   |   |   |
| Total assets                                                     |   | $       | 2,837,234 |   |     |   |    |   |   |   |   |   |   | $ | 2,701,720 |   |   |   |   |   |   |   |   |   |   | $ | 2,654,497 |   |   |   |   |   |   |   |   |   |
|                                                             |   |    |      |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                      |   |    |      |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                                 |   | $       | 534,211   |   |     |   | 697     |   |   |   | 0.13 | % |   | $ | 493,433 |   |   |   | 895 |   |   |   | 0.18 | % |   | $ | 462,641 |   |   |   | 1,242 |   |   |   | 0.27 | % |
|    Savings deposits                               |   |    | 479,760   |   |     |   | 759     |   |   |   | 0.16 |   |   |   | 420,212 |   |   |   | 1,023 |   |   |   | 0.24 |   |   |   | 389,385 |   |   |   | 1,016 |   |   |   | 0.26 |   |
|    Time deposits(10)                              |   |    | 909,951   |   |     |   | 12,021  |   |   |   | 1.32 |   |   |   | 927,789 |   |   |   | 17,876 |   |   |   | 1.93 |   |   |   | 983,310 |   |   |   | 24,350 |   |   |   | 2.48 |   |
|    Short-term borrowings                          |   |    | 121,780   |   |     |   | 312     |   |   |   | 0.26 |   |   |   | 123,569 |   |   |   | 325 |   |   |   | 0.26 |   |   |   | 112,575 |   |   |   | 362 |   |   |   | 0.32 |   |
|    Long-term debt                                 |   |    | 16,495    |   |     |   | 661     |   |   |   | 4.01 |   |   |   | 16,495 |   |   |   | 639 |   |   |   | 3.87 |   |   |   | 16,876 |   |   |   | 658 |   |   |   | 3.90 |   |
|      Total interest-bearing liabilities |   |    | 2,062,197 |   |     |   | 14,450  |   |   |   | 0.70 |   |   |   | 1,981,498 |   |   |   | 20,758 |   |   |   | 1.05 |   |   |   | 1,964,787 |   |   |   | 27,628 |   |   |   | 1.41 |   |
| Noninterest-bearing demand deposits                              |   |    | 414,969   |   |     |   |    |   |   |   |   |   |   |   | 379,980 |   |   |   |   |   |   |   |   |   |   |   | 354,988 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                |   |    | 34,995    |   |     |   |    |   |   |   |   |   |   |   | 24,081 |   |   |   |   |   |   |   |   |   |   |   | 18,692 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                       |   |    | 325,073   |   |     |   |    |   |   |   |   |   |   |   | 316,161 |   |   |   |   |   |   |   |   |   |   |   | 316,030 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity            |   | $       | 2,837,234 |   |     |   |    |   |   |   |   |   |   | $ | 2,701,720 |   |   |   |   |   |   |   |   |   |   | $ | 2,654,497 |   |   |   |   |   |   |   |   |   |
| Net interest income                                              |   |    |      |   |     | $      | 98,538  |   |   |   |   |   |   |   |   |   |   | $ | 93,044 |   |   |   |   |   |   |   |   |   |   | $ | 95,277 |   |   |   |   |   |
| Net yield on earning assets                                      |   |    |      |   |     |   |    |   |   |   | 3.96 | % |   |   |   |   |   |   |   |   |   |   | 3.89 | % |   |   |   |   |   |   |   |   |   |   | 4.06 | % |
|                                                             |   |    |      |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|  Year Ended |   | LoanAccretion |   |   | Certificates of Deposit |   |   | Total  |   |
|------------------|--------|---------------|--------|--------|-------------------------|--------|--------|--------|--------|
|             |   |          |   |   |                    |   |   |   |   |
| 2012             |   | $             | 2,415  |   |                    | $      | 179    |   |   | $ | 2,594 |   |
| 2013             |   | $             | 2,204  |   |                    | $      | 356    |   |   | $ | 2,560 |   |
| 2014             |   | $             | 1,089  |   |                    | $      | 351    |   |   | $ | 1,440 |   |
| 2015             |   | $             | 798    |   |                    | $      | 331    |   |   | $ | 1,129 |   |
| Thereafter       |   | $             | 1,476  |   |                    | $      | 1,056  |   |   | $ | 2,532 |   |

----

|                                                             |   | 2012 vs. 2011       |   |   | 2011 vs. 2010       |   |
|------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                                             |   | Increase (Decrease) |   |   | Increase (Decrease) |   |
|                                                             |   | Due to Change In:   |   |   | Due to Change In:   |   |
|                                                             |   | Volume              |   |   | Rate                |   |   | Net |   |   | Volume |   |   | Rate |   |   | Net |   |
| Interest-earning assets:                                         |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan portfolio                                                   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Residential real estate                        |   | $                   | 3,490  |   |                | $      | (3,438 | ) |   | $ | 52 |   |   | $ | 1,905 |   |   | $ | (5,438 | ) |   | $ | (3,533 | ) |
|    Commercial, financial, and agriculture         |   |                | 3,182  |   |                |   | (322 | ) |   |   | 2,860 |   |   |   | 2,392 |   |   |   | (3,600 | ) |   |   | (1,208 | ) |
|    Installment loans to individuals               |   |                | 40     |   |                |   | (104 | ) |   |   | (64 | ) |   |   | (272 | ) |   |   | (149 | ) |   |   | (421 | ) |
|    Previously securitized loans                   |   |                | (3,136 | )      |                |   | 3,306 |   |   |   | 170 |   |   |   | (2,818 | ) |   |   | 1,938 |   |   |   | (880 | ) |
|      Total loans                        |   |                | 3,576  |   |                |   | (558 | ) |   |   | 3,018 |   |   |   | 1,207 |   |   |   | (7,249 | ) |   |   | (6,042 | ) |
| Securities:                                                      |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Taxable                                        |   |                | (1,622 | )      |                |   | (1,822 | ) |   |   | (3,444 | ) |   |   | (2,243 | ) |   |   | (622 | ) |   |   | (2,865 | ) |
|    Tax-exempt(1)                                  |   |                | (437   | )      |                |   | 44 |   |   |   | (393 | ) |   |   | (198 | ) |   |   | (17 | ) |   |   | (215 | ) |
|      Total securities                   |   |                | (2,059 | )      |                |   | (1,778 | ) |   |   | (3,837 | ) |   |   | (2,441 | ) |   |   | (639 | ) |   |   | (3,080 | ) |
| Federal funds sold                                               |   |                | 1      |   |                |   | 4 |   |   |   | 5 |   |   |   | 31 |   |   |   | (12 | ) |   |   | 19 |   |
| Total interest-earning assets                                    |   | $                   | 1,518  |   |                | $      | (2,332 | ) |   | $ | (814 | ) |   | $ | (1,203 | ) |   | $ | (7,900 | ) |   | $ | (9,103 | ) |
|                                                             |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                    |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                                 |   | $                   | 74     |   |                | $      | (272 | ) |   | $ | (198 | ) |   | $ | 83 |   |   | $ | (430 | ) |   | $ | (347 | ) |
|    Savings deposits                               |   |                | 145    |   |                |   | (409 | ) |   |   | (264 | ) |   |   | 80 |   |   |   | (73 | ) |   |   | 7 |   |
|    Time deposits                                  |   |                | (344   | )      |                |   | (5,511 | ) |   |   | (5,855 | ) |   |   | (1,375 | ) |   |   | (5,099 | ) |   |   | (6,474 | ) |
|    Short-term borrowings                          |   |                | (5     | )      |                |   | (8 | ) |   |   | (13 | ) |   |   | 35 |   |   |   | (72 | ) |   |   | (37 | ) |
|    Long-term debt                                 |   |                | -      |   |                |   | 22 |   |   |   | 22 |   |   |   | (15 | ) |   |   | (4 | ) |   |   | (19 | ) |
|      Total interest-bearing liabilities |   | $                   | (130   | )      |                | $      | (6,178 | ) |   | $ | (6,308 | ) |   | $ | (1,192 | ) |   | $ | (5,678 | ) |   | $ | (6,870 | ) |
| Net Interest Income                                              |   | $                   | 1,648  |   |                | $      | 3,846 |   |   | $ | 5,494 |   |   | $ | (11 | ) |   | $ | (2,222 | ) |   | $ | (2,233 | ) |

|                          |   |                            |   |   |   |   |   |     |   |   |     |   |
|-------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|----------|--------|--------|----------|--------|
|                          |   | For the year ended December 31, |   |   |   |   |   |     |   |
|                          |   | 2012                            |   |   | 2011   |   |   | $ Change |   |   | % Change |   |
| Net investment security gains |   |                            | 1.0    |   |   |   | 2.5    |     |   |   | (1.5     | )      |   |   | (60.0 | ) |
| Non-interest income           |   |                            | 54.3   |   |   |   | 52.4   |     |   |   | 1.9      |   |   |   | 3.6 |   |
| Non-interest expense          |   |                            | 87.4   |   |   |   | 81.1   |     |   |   | 6.3      |   |   |   | 7.8 |   |

----

|                                   |   |                            |   |   |   |   |   |     |   |   |     |   |
|----------------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|----------|--------|--------|----------|--------|
|                                   |   | For the year ended December 31, |   |   |   |   |   |     |   |
|                                   |   | 2011                            |   |   | 2010   |   |   | $ Change |   |   | % Change |   |
| Net investment security gains (losses) |   |                            | 2.5    |   |   |   | (4.7   | )        |   |   | 7.2      |   |   |   | (153.2 | ) |
| Non-interest income                    |   |                            | 52.4   |   |   |   | 53.6   |     |   |   | (1.2     | )      |   |   | (2.2 | ) |
| Non-interest expense                   |   |                            | 81.1   |   |   |   | 78.7   |     |   |   | 2.4      |   |   |   | 3.0 |   |

----

----

|                                           |   |   |                                                                |   |   |                                                       |   |   |                                                      |   |
|------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|
| Immediate Basis Point Change in Interest Rates |   |   | Implied Federal Funds Rate Associated with Change in Interest Rates |   |   | Estimated Increase (Decrease) in Net Income Over 12 Months |   |   | Estimated Increase (Decrease) in Economic Value of Equity |   |
|                                           |   |   |                                                                |   |   |                                                       |   |   |                                                      |   |
| December 31, 2012:                             |   |   |                                                                |   |   |                                                       |   |   |                                                      |   |
|                                           | +400   |   |                                                                |   | 4.25   | %                                                          |   |   | +4.2                                                      | %      |   |   | +4.8 | % |
|                                           | +300   |   |                                                                |   | 3.25   |                                                       |   |   | +3.8                                                      |   |   |   | +5.4 |   |
|                                           | +200   |   |                                                                |   | 2.25   |                                                       |   |   | +2.5                                                      |   |   |   | +3.9 |   |
|                                           | +100   |   |                                                                |   | 1.25   |                                                       |   |   | -0.3                                                      |   |   |   | +1.6 |   |
|                                           |   |   |                                                                |   |   |                                                       |   |   |                                                      |   |   |   |   |   |
| December 31, 2011:                             |   |   |                                                                |   |   |                                                       |   |   |                                                      |   |   |   |   |
|                                           | +400   |   |                                                                |   | 4.25   | %                                                          |   |   | +16.0                                                     | %      |   |   | +20.3 | % |
|                                           | +300   |   |                                                                |   | 3.25   |                                                       |   |   | +10.4                                                     |   |   |   | +16.4 |   |
|                                           | +200   |   |                                                                |   | 2.25   |                                                       |   |   | +5.6                                                      |   |   |   | +11.2 |   |
|                                           | +100   |   |                                                                |   | 1.25   |                                                       |   |   | +0.8                                                      |   |   |   | +5.1 |   |

----

----

----

|                                                                        |   | Carrying Values as of December 31, |    |
|-----------------------------------------------------------------------------|--------|------------------------------------|---------|
| (In thousands)                                                              |   | 2012                               |    |   | 2011 |   |   | 2010 |   |
| Securities available-for-sale:                                              |   |                               |    |   |   |   |   |   |   |
|     Obligations of states and political subdivisions    |   | $                                  | 48,929  |   |   | $ | 56,802 |   |   | $ | 65,926 |   |
|     U.S. Treasuries and U.S. government agencies        |   |                               | 3,888   |   |   |   | 6,041 |   |   |   | 8,002 |   |
| Mortgage-backed securities:                                                 |   |                               |    |   |   |   |   |   |   |   |   |   |
|      U.S. government agencies                      |   |                               | 286,482 |   |   |   | 227,613 |   |   |   | 258,815 |   |
|      Private label                                 |   |                               | 3,272   |   |   |   | 5,156 |   |   |   | 8,118 |   |
| Trust preferred securities                                                  |   |                               | 12,645  |   |   |   | 45,157 |   |   |   | 54,610 |   |
| Corporate securities                                                        |   |                               | 15,947  |   |   |   | 14,398 |   |   |   | 15,393 |   |
|      Total Debt Securities available-for-sale      |   |                               | 371,163 |   |   |   | 355,167 |   |   |   | 410,864 |   |
| Marketable equity  securities                                     |   |                               | 4,185   |   |   |   | 3,853 |   |   |   | 4,693 |   |
| Investment funds                                                            |   |                               | 1,774   |   |   |   | 1,763 |   |   |   | 1,610 |   |
|       Total Securities Available-for-Sale     |   |                               | 377,122 |   |   |   | 360,783 |   |   |   | 417,167 |   |
| Securities held-to-maturity:                                                |   |                               |    |   |   |   |   |   |   |   |   |   |
|     Trust preferred securities                          |   |                               | 13,454  |   |   |   | 23,458 |   |   |   | 23,427 |   |
|     Obligations of states and political subdivisions    |   |                               | -       |   |   |   | - |   |   |   | 438 |   |
|       Total Securities Held-to-Maturity       |   |                               | 13,454  |   |   |   | 23,458 |   |   |   | 23,865 |   |
| Other investment securities:                                                |   |                               |    |   |   |   |   |   |   |   |   |   |
|    Non-marketable equity securities                          |   |                               | 11,463  |   |   |   | 11,934 |   |   |   | 12,553 |   |
|        Total Other Investment Securities |   |                               | 11,463  |   |   |   | 11,934 |   |   |   | 12,553 |   |
|                                                                        |   |                               |    |   |   |   |   |   |   |   |   |   |
| Total Securities                                                            |   | $                                  | 402,039 |   |   | $ | 396,175 |   |   | $ | 453,585 |   |

|                                                                     |   | Within   |   |   | After One But     |   |   | After Five But   |   |   | After     |   |
|--------------------------------------------------------------------------|--------|----------|--------|--------|-------------------|--------|--------|------------------|--------|--------|-----------|--------|
|                                                                     |   | One Year |   |   | Within Five Years |   |   | Within Ten Years |   |   | Ten Years |   |
| (In thousands)                                                           |   | Amount   |   |   | Yield             |   |   | Amount           |   |   | Yield     |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |
| Securities available-for-sale:                                           |   |     |   |   |              |   |   |             |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Obligations of states and political subdivisions |   | $        | 6,522  |   |              |   | 4.19   | %                |   | $      | 16,327    |   |   |   | 5.36 | % |   | $ | 15,332 |   |   |   | 5.90 | % |   | $ | 10,748 |   |   |   | 7.45 | % |
|     U.S. Treasuries and U.S. government agencies     |   |     | -      |   |              |   | -      |             |   |   | 3,880     |   |   |   | 2.55 |   |   |   | 8 |   |   |   | 1.27 |   |   |   | - |   |   |   | - |   |
| Mortgage-backed securities:                                              |   |     |   |   |              |   |   |             |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      U.S. government agencies                   |   |     | 184    |   |              |   | 3.13   |             |   |   | 8,109     |   |   |   | 1.58 |   |   |   | 31,834 |   |   |   | 3.44 |   |   |   | 246,355 |   |   |   | 2.71 |   |
|      Private label                              |   |     | -      |   |              |   | -      |             |   |   | -         |   |   |   | - |   |   |   | 1,192 |   |   |   | 4.60 |   |   |   | 2,080 |   |   |   | 4.67 |   |
| Trust preferred securities                                               |   |     | -      |   |              |   | -      |             |   |   | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,645 |   |   |   | 5.98 |   |
| Corporate securities                                                     |   |     | -      |   |              |   | -      |             |   |   | 3,363     |   |   |   | 1.71 |   |   |   | 9,281 |   |   |   | 4.58 |   |   |   | 3,303 |   |   |   | 5.52 |   |
|      Total Debt Securities available-for-sale   |   |     | 6,706  |   |              |   | 4.16   |             |   |   | 31,679    |   |   |   | 3.66 |   |   |   | 57,647 |   |   |   | 4.30 |   |   |   | 275,131 |   |   |   | 3.09 |   |
| Securities held-to-maturity:                                             |   |     |   |   |              |   |   |             |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Trust preferred securities                       |   |     | -      |   |              |   | -      |             |   |   | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,454 |   |   |   | 8.77 |   |
|       Total Securities Held-to-Maturity    |   |     | -      |   |              |   | -      |             |   |   | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,454 |   |   |   | 8.77 |   |
|                                                                     |   |     |   |   |              |   |   |             |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total  debt securities     |   | $        | 6,706  |   |              |   | 4.16   | %                |   | $      | 31,679    |   |   |   | 3.66 | % |   | $ | 57,647 |   |   |   | 4.30 | % |   | $ | 288,585 |   |   |   | 3.36 | % |

----

| ( In thousands)                  |   | 2012   |      |   | 2011   |   |      | 2010   |   |   | 2009      |   |   | 2008   |      |
|----------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
| Residential real estate          |   | $      | 1,031,435 |   |   | $      | 929,788   |   |   | $      | 882,780   |   |   | $      | 851,659   |   |   | $ | 917,082 |   |
| Home equity – junior liens |   |   | 143,110   |   |   |   | 141,797   |   |   |   | 143,761   |   |   |   | 142,771   |   |   |   | 79,200 |   |
| Commercial and industrial        |   |   | 108,739   |   |   |   | 130,899   |   |   |   | 134,612   |   |   |   | 137,093   |   |   |   | 161,588 |   |
| Commercial real estate           |   |   | 821,970   |   |   |   | 732,146   |   |   |   | 661,758   |   |   |   | 614,959   |   |   |   | 606,667 |   |
| Consumer                         |   |   | 36,564    |   |   |   | 35,845    |   |   |   | 38,424    |   |   |   | 41,684    |   |   |   | 41,000 |   |
| DDA overdrafts                   |   |   | 4,551     |   |   |   | 2,628     |   |   |   | 2,876     |   |   |   | 2,555     |   |   |   | 2,585 |   |
| Previously securitzed loans      |   |   | -         |   |   |   | -         |   |   |   | 789       |   |   |   | 1,713     |   |   |   | 4,222 |   |
| Gross loans                      |   | $      | 2,146,369 |   |   | $      | 1,973,103 |   |   | $      | 1,865,000 |   |   | $      | 1,792,434 |   |   | $ | 1,812,344 |   |

----

| ( In thousands)                                             |   | Within One Year |    |   | After One But Within Five Years |   |      | After Five Years |   |   | Total   |   |
|-------------------------------------------------------------|--------|-----------------|---------|--------|---------------------------------|--------|-----------|------------------|--------|--------|---------|--------|
|                                                        |   |            |    |   |                            |   |      |             |   |   |    |   |
| Residential real estate                                     |   | $               | 169,474 |   |                            | $      | 448,829   |             |   | $      | 413,132 |   |   | $ | 1,031,435 |   |
| Home equity – junior liens                            |   |            | 32,285  |   |                            |   | 69,170    |             |   |   | 41,655  |   |   |   | 143,110 |   |
| Commercial and industrial                                   |   |            | 69,110  |   |                            |   | 35,651    |             |   |   | 3,978   |   |   |   | 108,739 |   |
| Commercial real estate                                      |   |            | 260,698 |   |                            |   | 421,364   |             |   |   | 139,908 |   |   |   | 821,970 |   |
| Consumer                                                    |   |            | 20,520  |   |                            |   | 20,053    |             |   |   | 542     |   |   |   | 41,115 |   |
| Total loans                                                 |   | $               | 552,087 |   |                            | $      | 995,067   |             |   | $      | 599,215 |   |   | $ | 2,146,369 |   |
|                                                        |   |            |    |   |                            |   |      |             |   |   |    |   |   |   |   |   |
|                                                        |   |            |    |   |                            |   |      |             |   |   |    |   |   |   |   |   |
| Loans maturing after one year with interest rates that are: |   |            |    |   |                            |   |      |             |   |   |    |   |   |   |   |   |
| Fixed until maturity                                        |   |            |    |   |                            | $      | 320,756   |             |   |   |    |   |   |   |   |   |
| Variable or adjustable                                      |   |            |    |   |                            |   | 1,273,526 |             |   |   |    |   |   |   |   |   |
| Total                                                       |   |            |    |   |                            | $      | 1,594,282 |             |   |   |    |   |   |   |   |   |

----

----

| (In thousands)                        |   | 2012   |   |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                  |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of period        |   | $      | 19,409 |   |   | $      | 18,224 |   |   | $      | 18,541 |   |   | $      | 22,164 |   |   | $ | 17,399 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial             |   |   | 226    |   |   |   | 522    |   |   |   | 73     |   |   |   | 530    |   |   |   | 98 |   |
| Commercial real estate                |   |   | 4,604  |   |   |   | 1,989  |   |   |   | 3,304  |   |   |   | 7,219  |   |   |   | 2,966 |   |
| Residential real estate               |   |   | 1,030  |   |   |   | 1,367  |   |   |   | 1,607  |   |   |   | 1,195  |   |   |   | 758 |   |
| Home equity                           |   |   | 1,355  |   |   |   | 1,089  |   |   |   | 930    |   |   |   | 721    |   |   |   | 832 |   |
| Consumer                              |   |   | 190    |   |   |   | 164    |   |   |   | 86     |   |   |   | 265    |   |   |   | 243 |   |
| DDA overdrafts                        |   |   | 1,522  |   |   |   | 1,712  |   |   |   | 3,638  |   |   |   | 2,886  |   |   |   | 3,151 |   |
| Total charge-offs                     |   |   | 8,927  |   |   |   | 6,843  |   |   |   | 9,638  |   |   |   | 12,816 |   |   |   | 8,048 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial             |   |   | 32     |   |   |   | 23     |   |   |   | 27     |   |   |   | 102    |   |   |   | 25 |   |
| Commercial real estate                |   |   | 289    |   |   |   | 1,981  |   |   |   | 415    |   |   |   | 133    |   |   |   | 13 |   |
| Residential real estate               |   |   | 22     |   |   |   | 29     |   |   |   | 74     |   |   |   | 102    |   |   |   | 84 |   |
| Home equity                           |   |   | 18     |   |   |   | 7      |   |   |   | 26     |   |   |   | 20     |   |   |   | 139 |   |
| Consumer                              |   |   | 135    |   |   |   | 136    |   |   |   | 129    |   |   |   | 222    |   |   |   | 296 |   |
| DDA overdrafts                        |   |   | 1,456  |   |   |   | 1,252  |   |   |   | 1,557  |   |   |   | 1,620  |   |   |   | 1,741 |   |
| Total recoveries                      |   |   | 1,952  |   |   |   | 3,428  |   |   |   | 2,228  |   |   |   | 2,199  |   |   |   | 2,298 |   |
| Net charge-offs                       |   |   | 6,975  |   |   |   | 3,415  |   |   |   | 7,410  |   |   |   | 10,617 |   |   |   | 5,750 |   |
| Provision for loan losses             |   |   | 6,375  |   |   |   | 4,600  |   |   |   | 7,093  |   |   |   | 6,994  |   |   |   | 10,515 |   |
| Balance at end of period              |   | $      | 18,809 |   |   | $      | 19,409 |   |   | $      | 18,224 |   |   | $      | 18,541 |   |   | $ | 22,164 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As a Percent of Average Total Loans:  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs                       |   |   | 0.34   | %      |   |   | 0.18   | %      |   |   | 0.41   | %      |   |   | 0.59   | % |   |   | 0.33 | % |
| Provision for loan losses             |   |   | 0.31   | %      |   |   | 0.24   | %      |   |   | 0.39   | %      |   |   | 0.39   | % |   |   | 0.60 | % |
| As a Percent of Non-Performing Loans: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses             |   |   | 84.67  | %      |   |   | 87.76  | %      |   |   | 156.39 | %      |   |   | 133.06 | % |   |   | 86.07 | % |

| (In thousands)                                      |   | 2012   |   |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Non-accrual loans                                   |   | $      | 21,935 |   |   | $      | 21,951 |   |   | $      | 10,817 |   |   | $      | 13,583 |   |   | $ | 25,224 |   |
| Accruing loans past due 90 days or more             |   |   | 280    |   |   |   | 166    |   |   |   | 782    |   |   |   | 382    |   |   |   | 623 |   |
| Perviously securized loans past due 90 days or more |   |   | -      |   |   |   | -      |   |   |   | 54     |   |   |   | 79     |   |   |   | 10 |   |
| Total non-performing loans                          |   | $      | 22,215 |   |   | $      | 22,117 |   |   | $      | 11,653 |   |   | $      | 14,044 |   |   | $ | 25,857 |   |

----

| (In thousands)                                        |   | 2012   |   |   | 2011   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Impaired loans with a valuation allowance             |   | $      | -      |   |   | $      | 2,840 |   |
| Impaired loans with no valuation allowance            |   |   | 10,679 |   |   |   | 13,326 |   |
| Total impaired loans                                  |   | $      | 10,679 |   |   | $      | 16,166 |   |
| Allowance for loan losses allocated to impaired loans |   | $      | -      |   |   | $      | 2,666 |   |

|                      |   | December 31, 2012 |   |
|---------------------------|--------|-------------------|--------|
| (In thousands)            |   | Accruing          |   |   | Non-Accruing |   |   | Total |   |
|                      |   |              |   |   |   |   |   |   |   |
| Commercial and industrial |   | $                 | 101    |   |   | $ | - |   |   | $ | 101 |   |
| Commercial real estate    |   |              | 734    |   |   |   | - |   |   |   | 734 |   |
| Residential real estate   |   |              | 15,083 |   |   |   | 162 |   |   |   | 15,245 |   |
| Home equity               |   |              | 7,068  |   |   |   | 418 |   |   |   | 7,486 |   |
| Consumer                  |   |              | 142    |   |   |   | - |   |   |   | 142 |   |
|                      |   | $                 | 23,128 |   |   | $ | 580 |   |   | $ | 23,708 |   |

| (dollars in thousands)     |   | 2012   |   |   | 2011                                             |   |   | 2010   |   |   | 2009                                             |   |   | 2008   |   |
|----------------------------|--------|--------|--------|--------|--------------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------------|--------|--------|--------|--------|
|                       |   | Amount |   |   | Percent of Loans in Each Category to Total Loans |   |   | Amount |   |   | Percent of Loans in Each Category to Total Loans |   |   | Amount |   |   | Percent of Loans in Each Category to Total Loans |   |   | Amount |   |   | Percent of Loans in Each Category to Total Loans |   |   | Amount |   |   | Percent of Loans in Each Category to Total Loans |   |
|                       |   |   |   |   |                                             |   |   |   |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial  |   | $      | 498    |   |                                             |   | 5      | %      |   | $      | 590                                              |   |   |   | 7      | % |   | $ | 1,864 |   |   |   | 7 | % |   | $ | 2,069 |   |   |   | 8 | % |   | $ | 3,096 |   |   |   | 9 | % |
| Commercial real estate     |   |   | 10,440 |   |                                             |   | 38     | %      |   |   | 11,666                                           |   |   |   | 37     | % |   |   | 8,488 |   |   |   | 35 | % |   |   | 8,961 |   |   |   | 34 | % |   |   | 11,942 |   |   |   | 33 | % |
| Residential real estate    |   |   | 5,229  |   |                                             |   | 48     | %      |   |   | 4,839                                            |   |   |   | 47     | % |   |   | 5,337 |   |   |   | 47 | % |   |   | 4,233 |   |   |   | 48 | % |   |   | 3,366 |   |   |   | 51 | % |
| Home equity - junior liens |   |   | 1,699  |   |                                             |   | 7      | %      |   |   | 1,525                                            |   |   |   | 7      | % |   |   | 1,452 |   |   |   | 8 | % |   |   | 1,282 |   |   |   | 8 | % |   |   | 1,217 |   |   |   | 4 | % |
| Consumer                   |   |   | 81     |   |                                             |   | 2      | %      |   |   | 88                                               |   |   |   | 2      | % |   |   | 95 |   |   |   | 3 | % |   |   | 191 |   |   |   | 2 | % |   |   | 190 |   |   |   | 3 | % |
| DDA overdrafts             |   |   | 862    |   |                                             |   | -      |   |   |   | 701                                              |   |   |   | -      |   |   |   | 988 |   |   |   | - |   |   |   | 1,805 |   |   |   | - |   |   |   | 2,353 |   |   |   | - |   |
| Allowance for Loan Losses  |   | $      | 18,809 |   |                                             |   | 100    | %      |   | $      | 19,409                                           |   |   |   | 100    | % |   | $ | 18,224 |   |   |   | 100 | % |   | $ | 18,541 |   |   |   | 100 | % |   | $ | 22,164 |   |   |   | 100 | % |

----

| ( In thousands)                       |   | Amounts |    |   | Percentage |   |
|---------------------------------------|--------|---------|---------|--------|------------|--------|
|                                  |   |    |    |   |       |   |
| Three months or less                  |   | $       | 45,528  |   |       | $      | 15 | % |
| Over three months through six months  |   |    | 35,622  |   |       |   | 12 | % |
| Over six months through twelve months |   |    | 85,135  |   |       |   | 28 | % |
| Over twelve months                    |   |    | 135,518 |   |       |   | 45 | % |
| Total                                 |   | $       | 301,803 |   |       | $      | 100 | % |

|                                                                                                                                                                                                                                                                                                                                                                             |   | Contractual Maturity in |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
| ( In thousands)                                                                                                                                                                                                                                                                                                                                                                  |   | Less than One Year      |      |   | Between One and Three Years |   |   | Between Three and Five Years |   |   | Greater than Five Years |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                                                                             |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits                                                                                                                                                                                                                                                                                                                                              |   | $                       | 429,969   |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 429,969 |   |
| Interest-bearing demand deposits (1)                                                                                                                                                                                                                                                                                                                                             |   |                    | 553,139   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 553,139 |   |
| Savings deposits (1)                                                                                                                                                                                                                                                                                                                                                             |   |                    | 506,876   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 506,876 |   |
| Time deposits (1)                                                                                                                                                                                                                                                                                                                                                                |   |                    | 524,435   |   |   |   | 298,726 |   |   |   | 114,259 |   |   |   | 3 |   |   |   | 937,423 |   |
| Short-term borrowings (1)                                                                                                                                                                                                                                                                                                                                                        |   |                    | 114,941   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 114,941 |   |
| Long-term debt (1)                                                                                                                                                                                                                                                                                                                                                               |   |                    | 642       |   |   |   | 1,284 |   |   |   | 1,284 |   |   |   | 29,602 |   |   |   | 32,812 |   |
| Total Contractual Obligations                                                                                                                                                                                                                                                                                                                                                    |   | $                       | 2,130,002 |   |   | $ | 300,010 |   |   | $ | 115,543 |   |   | $ | 29,605 |   |   | $ | 2,575,160 |   |
|                                                                                                                                                                                                                                                                                                                                                                             |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) – Includes interest on both fixed- and variable-rate obligations. The interest associated with variable-rate obligations is based upon interest rates in effect at December 31, 2012. The contractual amounts to be paid on variable-rate obligations are affected by market interest rates that could materially affect the contractual amounts to be paid. |   |

----

----

|                |   |    |   |   |        |   |   | Actual       |   |
|---------------------|--------|---------|--------|--------|-------------|--------|--------|--------------|--------|
|                |   |    |   |   | Well-       |   |   | December 31, |   |
|                |   | Minimum |   |   | Capitalized |   |   | 2012         |   |   | 2011 |   |
| City Holding:       |   |    |   |   |        |   |   |         |   |   |   |   |
| Total               |   |    | 8.0    | %      |        |   | 10.0   | %            |   |   | 13.9 | % |   |   | 14.1 | % |
| Tier I Risk-based   |   |    | 4.0    |   |        |   | 6.0    |         |   |   | 13.0 |   |   |   | 13.1 |   |
| Tier I Leverage     |   |    | 4.0    |   |        |   | 5.0    |         |   |   | 9.8 |   |   |   | 10.2 |   |
| City National Bank: |   |    |   |   |        |   |   |         |   |   |   |   |   |   |   |   |
| Total               |   |    | 8.0    | %      |        |   | 10.0   | %            |   |   | 12.4 | % |   |   | 13.0 | % |
| Tier I Risk-based   |   |    | 4.0    |   |        |   | 6.0    |         |   |   | 11.5 |   |   |   | 12.0 |   |
| Tier I Leverage     |   |    | 4.0    |   |        |   | 5.0    |         |   |   | 8.7 |   |   |   | 9.3 |   |

| Recent Accounting Pronouncements and Developments |
|---------------------------------------------------|

----

----

| s/ Charles R. Hageboeck                 |   |   | /s/ David L. Bumgarner  |   |
|-----------------------------------------|--------|--------|-------------------------|--------|
| Charles R. Hageboeck                    |   |   | David L. Bumgarner      |   |
| President & Chief Executive Officer |   |   | Chief Financial Officer |   |

----

----

----

|                                                                                                                                                                                                      |   |              |      |   |              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
|                                                                                                                                                                                                      |   | December 31, 2012 |      |   | December 31, 2011 |   |
|                                                                                                                                                                                                      |   |              |      |   |              |   |
| Assets                                                                                                                                                                                                    |   |              |      |   |              |   |
| Cash and due from banks                                                                                                                                                                                   |   | $                 | 58,718    |   |              | $      | 140,873 |   |
| Interest-bearing deposits in depository institutions                                                                                                                                                      |   |              | 16,276    |   |              |   | 5,526 |   |
| Federal funds sold                                                                                                                                                                                        |   |              | 10,000    |   |              |   | - |   |
|           Cash and Cash Equivalents                                                                                                                     |   |              | 84,994    |   |              |   | 146,399 |   |
|                                                                                                                                                                                                      |   |              |      |   |              |   |   |   |
| Investment securities available for sale, at fair value                                                                                                                                                   |   |              | 377,122   |   |              |   | 360,783 |   |
| Investment securities held-to-maturity, at amortized cost (approximate fair value at December 31, 2012 and 2011 - $13,861 and $23,423, respectively)                                                      |   |              | 13,454    |   |              |   | 23,458 |   |
| Other securities                                                                                                                                                                                          |   |              | 11,463    |   |              |   | 11,934 |   |
|           Total Investment Securities                                                                                                                   |   |              | 402,039   |   |              |   | 396,175 |   |
|                                                                                                                                                                                                      |   |              |      |   |              |   |   |   |
| Gross loans                                                                                                                                                                                               |   |              | 2,146,369 |   |              |   | 1,973,103 |   |
| Allowance for loan losses                                                                                                                                                                                 |   |              | (18,809   | )      |              |   | (19,409 | ) |
|           Net Loans                                                                                                                                     |   |              | 2,127,560 |   |              |   | 1,953,694 |   |
|                                                                                                                                                                                                      |   |              |      |   |              |   |   |   |
| Bank owned life insurance                                                                                                                                                                                 |   |              | 81,901    |   |              |   | 78,961 |   |
| Premises and equipment, net                                                                                                                                                                               |   |              | 72,728    |   |              |   | 64,612 |   |
| Accrued interest receivable                                                                                                                                                                               |   |              | 6,692     |   |              |   | 7,093 |   |
| Net deferred tax asset                                                                                                                                                                                    |   |              | 32,737    |   |              |   | 32,219 |   |
| Goodwill and other intangible assets                                                                                                                                                                      |   |              | 65,057    |   |              |   | 56,164 |   |
| Other assets                                                                                                                                                                                              |   |              | 43,758    |   |              |   | 41,792 |   |
|           Total Assets                                                                                                                                  |   | $                 | 2,917,466 |   |              | $      | 2,777,109 |   |
| Liabilities                                                                                                                                                                                               |   |              |      |   |              |   |   |   |
| Deposits:                                                                                                                                                                                                 |   |              |      |   |              |   |   |   |
| Noninterest-bearing                                                                                                                                                                                       |   | $                 | 429,969   |   |              | $      | 369,025 |   |
| Interest-bearing:                                                                                                                                                                                         |   |              |      |   |              |   |   |   |
| Demand deposits                                                                                                                                                                                           |   |              | 553,132   |   |              |   | 526,824 |   |
| Savings deposits                                                                                                                                                                                          |   |              | 506,869   |   |              |   | 439,823 |   |
| Time deposits                                                                                                                                                                                             |   |              | 919,346   |   |              |   | 885,596 |   |
|           Total Deposits                                                                                                                                |   |              | 2,409,316 |   |              |   | 2,221,268 |   |
|                                                                                                                                                                                                      |   |              |      |   |              |   |   |   |
| Short-term borrowings:                                                                                                                                                                                    |   |              |      |   |              |   |   |   |
| Federal funds purchased                                                                                                                                                                                   |   |              | -         |   |              |   | 75,000 |   |
| Customer repurchase agreements                                                                                                                                                                            |   |              | 114,646   |   |              |   | 114,050 |   |
| Long-term debt                                                                                                                                                                                            |   |              | 16,495    |   |              |   | 16,495 |   |
| Other liabilities                                                                                                                                                                                         |   |              | 43,735    |   |              |   | 39,162 |   |
|           Total Liabilities                                                                                                                             |   |              | 2,584,192 |   |              |   | 2,465,975 |   |
|                                                                                                                                                                                                      |   |              |      |   |              |   |   |   |
| Shareholders’ Equity                                                                                                                                                                                |   |              |      |   |              |   |   |   |
| Preferred stock, par value $25 per share: 500,000 shares authorized; none issued                                                                                                                          |   |              | -         |   |              |   | - |   |
| Common stock, par value $2.50 per share: 50,000,000 shares authorized; 18,499,282 shares issued at December 31, 2012 and December 31, 2011, less 3,665,999 and 3,717,993 shares in treasury, respectively |   |              | 46,249    |   |              |   | 46,249 |   |
|                                                                                                                                                                                                      |   |              |      |   |              |   |   |   |
| Capital surplus                                                                                                                                                                                           |   |              | 103,524   |   |              |   | 103,335 |   |
| Retained earnings                                                                                                                                                                                         |   |              | 309,270   |   |              |   | 291,050 |   |
| Cost of common stock in treasury                                                                                                                                                                          |   |              | (124,347  | )      |              |   | (125,593 | ) |
| Accumulated other comprehensive income (loss):                                                                                                                                                            |   |              |      |   |              |   |   |   |
| Unrealized gain on securities available-for-sale                                                                                                                                                          |   |              | 3,573     |   |              |   | 825 |   |
| Underfunded pension liability                                                                                                                                                                             |   |              | (4,995    | )      |              |   | (4,732 | ) |
|           Total Accumulated Other Comprehensive Loss                                                                                                    |   |              | (1,422    | )      |              |   | (3,907 | ) |
|           Total Shareholders’ Equity                                                                                                              |   |              | 333,274   |   |              |   | 311,134 |   |
|           Total Liabilities and Shareholders’ Equity                                                                                              |   | $                 | 2,917,466 |   |              | $      | 2,777,109 |   |

----

|                                                                                                            |   | Year Ended December 31 |    |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                            |   | 2012                   |    |   | 2011 |   |   | 2010 |   |
| Interest Income                                                                                                 |   |                   |    |   |   |   |   |   |   |
| Interest and fees on loans                                                                                      |   | $                      | 96,432  |   |   | $ | 93,414 |   |   | $ | 99,456 |   |
| Interest on investment securities:                                                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
|      Taxable                                                                           |   |                   | 14,285  |   |   |   | 17,729 |   |   |   | 20,594 |   |
|      Tax-exempt                                                                        |   |                   | 1,442   |   |   |   | 1,697 |   |   |   | 1,837 |   |
| Interest on federal funds sold                                                                                  |   |                   | 53      |   |   |   | 48 |   |   |   | 29 |   |
|           Total Interest Income                               |   |                   | 112,212 |   |   |   | 112,888 |   |   |   | 121,916 |   |
|                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Interest Expense                                                                                                |   |                   |    |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                                                                            |   |                   | 13,477  |   |   |   | 19,794 |   |   |   | 26,608 |   |
| Interest on short-term borrowings                                                                               |   |                   | 312     |   |   |   | 325 |   |   |   | 362 |   |
| Interest on long-term debt                                                                                      |   |                   | 661     |   |   |   | 639 |   |   |   | 658 |   |
|           Total Interest Expense                              |   |                   | 14,450  |   |   |   | 20,758 |   |   |   | 27,628 |   |
|           Net Interest Income                                 |   |                   | 97,762  |   |   |   | 92,130 |   |   |   | 94,288 |   |
| Provision for loan losses                                                                                       |   |                   | 6,375   |   |   |   | 4,600 |   |   |   | 7,093 |   |
|           Net Interest Income After Provision for Loan Losses |   |                   | 91,387  |   |   |   | 87,530 |   |   |   | 87,195 |   |
|                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Non-interest Income                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |
| Total investment securities impairment losses                                                                   |   |                   | (878    | ) |   |   | (2,767 | ) |   |   | (9,400 | ) |
| Noncredit impairment losses recognized in other comprehensive income                                            |   |                   | 302     |   |   |   | 1,494 |   |   |   | 3,336 |   |
|      Net investment securities impairment losses                                       |   |                   | (576    | ) |   |   | (1,273 | ) |   |   | (6,064 | ) |
| Gains on sale of investment securities                                                                          |   |                   | 1,530   |   |   |   | 3,756 |   |   |   | 1,397 |   |
|      Net investment securities gains (losses)                                          |   |                   | 954     |   |   |   | 2,483 |   |   |   | (4,667 | ) |
|                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Service charges                                                                                                 |   |                   | 26,409  |   |   |   | 26,959 |   |   |   | 30,104 |   |
| Bankcard interchange fees                                                                                       |   |                   | 12,406  |   |   |   | 11,150 |   |   |   | 9,898 |   |
| Insurance commissions                                                                                           |   |                   | 6,071   |   |   |   | 5,946 |   |   |   | 5,490 |   |
| Trust and investment management fee income                                                                      |   |                   | 3,774   |   |   |   | 3,106 |   |   |   | 2,767 |   |
| Bank owned  life insurance                                                                            |   |                   | 2,983   |   |   |   | 3,183 |   |   |   | 3,396 |   |
| Other income                                                                                                    |   |                   | 2,660   |   |   |   | 2,033 |   |   |   | 1,951 |   |
|           Total Non-interest Income                           |   |                   | 55,257  |   |   |   | 54,860 |   |   |   | 48,939 |   |
|                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Non-interest Expense                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                                                  |   |                   | 43,509  |   |   |   | 40,717 |   |   |   | 38,241 |   |
| Occupancy and equipment                                                                                         |   |                   | 8,186   |   |   |   | 8,013 |   |   |   | 7,697 |   |
| Depreciation                                                                                                    |   |                   | 4,605   |   |   |   | 4,508 |   |   |   | 4,675 |   |
| FDIC insurance expense                                                                                          |   |                   | 1,590   |   |   |   | 2,576 |   |   |   | 3,733 |   |
| Advertising                                                                                                     |   |                   | 2,589   |   |   |   | 2,007 |   |   |   | 3,692 |   |
| Bankcard expenses                                                                                               |   |                   | 2,662   |   |   |   | 2,258 |   |   |   | 1,953 |   |
| Postage, delivery, and statement mailings                                                                       |   |                   | 2,079   |   |   |   | 2,099 |   |   |   | 2,371 |   |
| Office supplies                                                                                                 |   |                   | 1,669   |   |   |   | 1,911 |   |   |   | 1,931 |   |
| Legal and professional fees                                                                                     |   |                   | 1,786   |   |   |   | 4,913 |   |   |   | 1,677 |   |
| Telecommunications                                                                                              |   |                   | 1,614   |   |   |   | 1,605 |   |   |   | 1,732 |   |
| Repossessed asset losses, net of expenses                                                                       |   |                   | 1,346   |   |   |   | 272 |   |   |   | 1,453 |   |
| Merger related costs                                                                                            |   |                   | 4,708   |   |   |   | - |   |   |   | - |   |
| Other expenses                                                                                                  |   |                   | 11,058  |   |   |   | 10,262 |   |   |   | 9,566 |   |
|           Total Non-interest Expense                          |   |                   | 87,401  |   |   |   | 81,141 |   |   |   | 78,721 |   |
|           Income Before Income Taxes                          |   |                   | 59,243  |   |   |   | 61,249 |   |   |   | 57,413 |   |
| Income tax expense                                                                                              |   |                   | 20,298  |   |   |   | 20,571 |   |   |   | 18,453 |   |
|           Net Income Available to Common Shareholders         |   | $                      | 38,945  |   |   | $ | 40,678 |   |   | $ | 38,960 |   |
|                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                                                                                      |   | $                      | 41,430  |   |   | $ | 39,268 |   |   | $ | 39,017 |   |
|                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Average common shares outstanding                                                                               |   |                   | 14,714  |   |   |   | 15,055 |   |   |   | 15,589 |   |
| Effect of dilutive securities:                                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
|      Employee stock options                                                            |   |                   | 82      |   |   |   | 75 |   |   |   | 62 |   |
| Shares for diluted earnings per share                                                                           |   |                   | 14,796  |   |   |   | 15,130 |   |   |   | 15,651 |   |
|                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Basic earnings per common share                                                                                 |   | $                      | 2.63    |   |   | $ | 2.68 |   |   | $ | 2.48 |   |
| Diluted earnings per common share                                                                               |   | $                      | 2.61    |   |   | $ | 2.67 |   |   | $ | 2.47 |   |
| Dividends declared per common share                                                                             |   | $                      | 1.40    |   |   | $ | 1.37 |   |   | $ | 1.36 |   |

----

|                                                                              |   | Year Ended December 31 |        |
|-----------------------------------------------------------------------------------|--------|------------------------|-------------|
|                                                                              |   | 2012                   |        |   | 2011 |   |   | 2010 |   |
|                                                                              |   |                   |        |   |   |   |   |   |   |
| Net income                                                                        |   | $                      | 38,945      |   |   | $ | 40,678 |   |   | $ | 38,960 |   |
|                                                                              |   |                   |        |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss) on available-for-sale securities arising during the period |   |                   | 5,370       |   |   |   | 2,169 |   |   |   | 44 |   |
|  Reclassification adjustment for (gains) losses                              |   |                   | (954        |  ) |   |   | (2,483 |  ) |   |   | 4,667 |   |
|                                                                              |   |                   | 4,416  |   |   |   | (314  |  ) |   |   | 4,711  |   |
|  Unrealized loss on interest rate floors                                     |   |                   | -      |   |   |   | (473  |  ) |   |   | (4,494 |  ) |
| Change in underfunded pension liability                                           |   |                   | (423        | ) |   |   | (1,473 | ) |   |   | (125 | ) |
| Other comprehensive income (loss) before income taxes                             |   |                   | 3,993       |   |   |   | (2,260  | )  |   |   | 92  |   |
| Tax effect                                                                        |   |                   | (1,508      |  ) |   |   |  850 |   |   |   | (35  |  ) |
|  Other comprehensive income (loss), net of tax                               |   |                   | 2,485       |   |   |   | (1,410  |  ) |   |   | 57  |   |
|                                                                              |   |                   |        |   |   |   |   |   |   |   |   |   |
|    Comprehensive income, net of tax                                |   |                   | 41,430      |   |   |   | 39,268 |   |   |   | 39,017 |   |

----

|                                      |   | Common Stock |   |   | Capital Surplus |   |    | Retained Earnings |   |   | Treasury Stock |   |   | Accumulated Other Comprehensive Income (Loss) |     |   | Total Shareholders’ Equity |   |
|-------------------------------------------|--------|--------------|--------|--------|-----------------|--------|---------|-------------------|--------|--------|----------------|--------|--------|-----------------------------------------------|----------|--------|----------------------------------|--------|
|                                      |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          |     |   |                             |   |
| Balances at December 31, 2009             |   | $            | 46,249 |   |            | $      | 102,917 |              |   | $      | 253,167        |   |   | $                                             | (90,877  | )      |                             | $      | (2,554 | ) |   | $ | 308,902 |   |
| Net income                                |   |         |   |   |            |   |    |              |   |   | 38,960         |   |   |                                          |     |   |                             |   |   |   |   |   | 38,960 |   |
| Other comprehensive income                |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          |     |   |                             |   | 57 |   |   |   | 57 |   |
| Cash dividends declared ($1.36 per share) |   |         |   |   |            |   |    |              |   |   | (21,222        | )      |   |                                          |     |   |                             |   |   |   |   |   | (21,222 | ) |
| Stock-based compensation expense, net     |   |         |   |   |            |   | 137     |              |   |   |           |   |   |                                          | 693      |   |                             |   |   |   |   |   | 830 |   |
| Exercise of 7,962 stock options           |   |         |   |   |            |   | 3       |              |   |   |           |   |   |                                          | 233      |   |                             |   |   |   |   |   | 236 |   |
| Purchase of 408,151 treasury shares       |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          | (12,902  | )      |                             |   |   |   |   |   | (12,902 | ) |
| Balances at December 31, 2010             |   | $            | 46,249 |   |            | $      | 103,057 |              |   | $      | 270,905        |   |   | $                                             | (102,853 | )      |                             | $      | (2,497 | ) |   | $ | 314,861 |   |

|                                      |   | Common Stock |   |   | Capital Surplus |   |    | Retained Earnings |   |   | Treasury Stock |   |   | Accumulated Other Comprehensive Income (Loss) |     |   | Total Shareholders’ Equity |   |
|-------------------------------------------|--------|--------------|--------|--------|-----------------|--------|---------|-------------------|--------|--------|----------------|--------|--------|-----------------------------------------------|----------|--------|----------------------------------|--------|
|                                      |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          |     |   |                             |   |
| Balances at December 31, 2010             |   | $            | 46,249 |   |            | $      | 103,057 |              |   | $      | 270,905        |   |   | $                                             | (102,853 | )      |                             | $      | (2,497 | ) |   | $ | 314,861 |   |
| Net income                                |   |         |   |   |            |   |    |              |   |   | 40,678         |   |   |                                          |     |   |                             |   |   |   |   |   | 40,678 |   |
| Other comprehensive income                |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          |     |   |                             |   | (1,410 | ) |   |   | (1,410 | ) |
| Cash dividends declared ($1.37 per share) |   |         |   |   |            |   |    |              |   |   | (20,533        | )      |   |                                          |     |   |                             |   |   |   |   |   | (20,533 | ) |
| Stock-based compensation expense, net     |   |         |   |   |            |   | 283     |              |   |   |           |   |   |                                          | 783      |   |                             |   |   |   |   |   | 1,066 |   |
| Exercise of 9,576 stock options           |   |         |   |   |            |   | (5      | )                 |   |   |           |   |   |                                          | 267      |   |                             |   |   |   |   |   | 262 |   |
| Purchase of 755,501 treasury shares       |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          | (23,790  | )      |                             |   |   |   |   |   | (23,790 | ) |
| Balances at December 31, 2011             |   | $            | 46,249 |   |            | $      | 103,335 |              |   | $      | 291,050        |   |   | $                                             | (125,593 | )      |                             | $      | (3,907 | ) |   | $ | 311,134 |   |

|                                          |   | Common Stock |   |   | Capital Surplus |   |    | Retained Earnings |   |   | Treasury Stock |   |   | Accumulated Other Comprehensive Income (Loss) |     |   | Total Shareholders’ Equity |   |
|-----------------------------------------------|--------|--------------|--------|--------|-----------------|--------|---------|-------------------|--------|--------|----------------|--------|--------|-----------------------------------------------|----------|--------|----------------------------------|--------|
|                                          |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          |     |   |                             |   |
| Balances at December 31, 2011                 |   | $            | 46,249 |   |            | $      | 103,335 |              |   | $      | 291,050        |   |   | $                                             | (125,593 | )      |                             | $      | (3,907 | ) |   | $ | 311,134 |   |
| Net income                                    |   |         |   |   |            |   |    |              |   |   | 38,945         |   |   |                                          |     |   |                             |   |   |   |   |   | 38,945 |   |
| Other comprehensive income                    |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          |     |   |                             |   | 2,485 |   |   |   | 2,485 |   |
| Acquisition of Virginia Savings Bancorp, Inc. |   |         |   |   |            |   | 276     |              |   |   |           |   |   |                                          | 7,447    |   |                             |   |   |   |   |   | 7,723 |   |
| Cash dividends declared ($1.40 per share)     |   |         |   |   |            |   |    |              |   |   | (20,725        | )      |   |                                          |     |   |                             |   |   |   |   |   | (20,725 | ) |
| Stock-based compensation expense, net         |   |         |   |   |            |   | 34      |              |   |   |           |   |   |                                          | 1,049    |   |                             |   |   |   |   |   | 1,083 |   |
| Exercise of 18,899 stock options              |   |         |   |   |            |   | (121    | )                 |   |   |           |   |   |                                          | 665      |   |                             |   |   |   |   |   | 544 |   |
| Purchase of 237,535 treasury shares           |   |         |   |   |            |   |    |              |   |   |           |   |   |                                          | (7,915   | )      |                             |   |   |   |   |   | (7,915 | ) |
| Balances at December 31, 2012                 |   | $            | 46,249 |   |            | $      | 103,524 |              |   | $      | 309,270        |   |   | $                                             | (124,347 | )      |                             | $      | (1,422 | ) |   | $ | 333,274 |   |

----

|                                                                                                            |   | Year Ended December 31 |         |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------|--------------|
|                                                                                                            |   | 2012                   |         |   | 2011 |   |   | 2010 |   |
|                                                                                                            |   |                   |         |   |   |   |   |   |   |
|                                                                                                            |   |                   |         |   |   |   |   |   |   |
| Net income                                                                                                      |   | $                      | 38,945       |   |   | $ | 40,678 |   |   | $ | 38,960 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                               |   |                   |         |   |   |   |   |   |   |   |   |   |
|      Amortization and accretion                                                        |   |                   | 728          |   |   |   | 1,894 |   |   |   | 1,004 |   |
|      Provision for loan losses                                                         |   |                   | 6,375        |   |   |   | 4,600 |   |   |   | 7,093 |   |
|      Depreciation of premises and equipment                                            |   |                   | 4,605        |   |   |   | 4,508 |   |   |   | 4,675 |   |
|      Deferred income tax expense (benefit)                                             |   |                   | 2,530        |   |   |   | (2,290 | ) |   |   | (1,235 | ) |
|      Accretion of gain from sale of interest rate floors                               |   |                   | -            |   |   |   | (295 | ) |   |   | (2,768 | ) |
|      Net periodic employee benefit cost                                                |   |                   | 521          |   |   |   | 386 |   |   |   | 232 |   |
|      Realized investment securities gains                                              |   |                   | (1,530       | ) |   |   | (3,756 | ) |   |   | (1,397 | ) |
|      Net investment securities impairment losses                                       |   |                   | 576          |   |   |   | 1,273 |   |   |   | 6,064 |   |
|      Stock-compensation expense                                                        |   |                   | 1,083        |   |   |   | 1,066 |   |   |   | 830 |   |
|      Increase in value of bank-owned life insurance                                    |   |                   | (2,940       | )  |   |   | (3,183 | ) |   |   | (3,397 | ) |
|      Loans originated for sale                                                         |   |                   | (44,032      | )  |   |   | (23,792 | )  |   |   | (31,311 | )  |
|      Proceeds from the sale of loans originated for sale                                    |   |                   | 47,660  |   |   |   | 20,824  |   |   |   | 36,865  |   |
|      Change in accrued interest receivable                                             |   |                   | 852          |   |   |   | 171 |   |   |   | 705 |   |
|      Change in other assets                                                            |   |                   | 2,163        |   |   |   | (4,592 | ) |   |   | 3,986 |   |
|      Change in other liabilities                                                       |   |                   | 2,575        |   |   |   | 15,547 |   |   |   | 8,027 |   |
|           Net Cash Provided by Operating Activities           |   |                   | 60,111       |   |   |   | 53,039 |   |   |   | 68,333 |   |
|                                                                                                            |   |                   |         |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   |                   |         |   |   |   |   |   |   |   |   |   |
| Proceeds from sales of securities available-for-sale                                                            |   |                   | 27,471       |   |   |   | 674,065 |   |   |   | 914,845 |   |
| Proceeds from maturities and calls of securities available-for-sale                                             |   |                   | 145,097      |   |   |   | 115,884 |   |   |   | 119,655 |   |
| Proceeds from maturities and calls of securities held-to-maturity                                               |   |                   | 10,402       |   |   |   | 1,080 |   |   |   | 3,216 |   |
| Purchases of securities available-for-sale                                                                      |   |                   | (171,200     | )  |   |   | (732,552 | ) |   |   | (979,740 | ) |
| Net (increase) in loans                                                                                         |   |                   | (109,098     | )  |   |   | (108,956 | ) |   |   | (85,074 | ) |
| Purchases of premises and equipment                                                                             |   |                   | (7,509       | )  |   |   | (4,615 | ) |   |   | (5,045 | ) |
| Acquisition of Virginia Savings Bancorp, Inc., net of cash acquired of $24,943                                  |   |                   | 20,272       |   |   |   | - |   |   |   | - |   |
|           Net Cash Used in Investing Activities               |   |                   | (84,565      | )  |   |   | (55,094 | ) |   |   | (32,143 | ) |
|                                                                                                            |   |                   |         |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   |                   |         |   |   |   |   |   |   |   |   |   |
| Net increase in noninterest-bearing deposits                                                                    |   |                   | 49,146       |   |   |   | 31,098 |   |   |   | 9,487 |   |
| Net increase (decrease) in interest-bearing deposits                                                            |   |                   | 16,388       |   |   |   | 18,795 |   |   |   | (1,834 | ) |
| Net (decrease) increase in short-term borrowings                                                                |   |                   | (74,404      | )  |   |   | 76,340 |   |   |   | (6,005 | ) |
| Repayment of long-term debt                                                                                     |   |                   | -            |   |   |   | - |   |   |   | (78 | ) |
| Purchases of treasury stock                                                                                     |   |                   | (7,915       | ) |   |   | (23,790 | ) |   |   | (12,902 | ) |
| Proceeds from exercise of stock options                                                                         |   |                   | 544          |   |   |   | 262 |   |   |   | 236 |   |
| Dividends paid                                                                                                  |   |                   | (20,710      | )  |   |   | (20,630 | ) |   |   | (21,350 | ) |
|           Net Cash (Used in) Provided by Financing Activities |   |                   | (36,951      | ) |   |   | 82,075 |   |   |   | (32,446 | ) |
|           (Decrease) increase in Cash and Cash Equivalents    |   |                   | (61,405      | )  |   |   | 80,020 |   |   |   | 3,744 |   |
| Cash and cash equivalents at beginning of period                                                                |   |                   | 146,399      |   |   |   | 66,379 |   |   |   | 62,635 |   |
|           Cash and Cash Equivalents at End of Period          |   | $                      | 84,994       |   |   | $ | 146,399 |   |   | $ | 66,379 |   |

----

----

----

----

----

----

|                                             |   | May 31, 2012 |    |
|--------------------------------------------------|--------|--------------|---------|
| Consideration:                                   |   |         |    |
|   Cash                                 |   | $            | 4,672   |   |
|   Common stock                         |   |         | 7,723   |   |
|                                             |   | $            | 12,395  |   |
|                                             |   |         |    |   |
| Identifiable assets:                             |   |         |    |   |
|   Cash and cash equivalents            |   | $            | 24,943  |   |
|   Investment securities                |   |         | 14,082  |   |
|   Loans                                |   |         | 73,463  |   |
|   Premises and equipment               |   |         | 5,158   |   |
|   Other assets                         |   |         | 8,799   |   |
|    Total identifiable assets      |   |         | 126,445 |   |
|                                             |   |         |    |   |
| Identifiable liabilities:                        |   |         |    |   |
|   Deposits                             |   |         | 122,723 |   |
|   Other liabilities                    |   |         | 698     |   |
|    Total identifiable liabilities |   |         | 123,421 |   |
|                                             |   |         |    |   |
| Net identifiable assets                          |   |         | 3,024   |   |
| Goodwill                                         |   |         | 8,098   |   |
| Core deposit intangible                          |   |         | 1,273   |   |
|                                             |   | $            | 12,395  |   |

| (1)   | ASC Topic 310-20 is used to value loans that do not have evidence of credit quality deterioration.  For these loans, the difference between the fair value of the loan and the amortized cost of the loan is amortized or accreted into income using the interest method. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | ASC Topic 310-30 is used to value loans that have evidence of credit quality deterioration.  For these loans, the expected cash flows that exceed the fair value of the loan represent the accretable yield, which is recognized as interest income on a level-yield basis over the expected cash flow periods of the loans.  The non-accretable difference represents the difference between the contractually required principal and interest payments and the cash flows expected to be collected based upon management’s estimation.  Subsequent decreases in the expected cash flows will require the Company to evaluate the need for additions to the Company’s allowance for loan losses.  Subsequent increases in the expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges with a corresponding adjustment to the accretable yield, which will result in the recognition of additional interest income over the remaining lives of the loans.   |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                |   | May 31, 2012 |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                |   |         |   |
| Contractually required principal and interest                                                       |   | $            | 11,567 |   |
| Contractual cash flows not expected to be collected (non-accretable difference)                     |   |         | (3,973 | ) |
| Expected cash flows                                                                                 |   |         | 7,594  |   |
| Interest component of expected cash flows (accretable difference)                                   |   |         | (954   | ) |
| Estimated fair value of purchased credit impaired loans acquired                                    |   | $            | 6,640  |   |
|                                                                                                |   |         |   |   |
| Estimated fair value of performing loans acquired (contractual principal balances of $72.5 million) |   |         | 66,823 |   |
| Estimated fair value of loans acquired                                                              |   | $            | 73,463 |   |

----

|                                                                        |   | Intangible Assets |   |
|-----------------------------------------------------------------------------|--------|-------------------|--------|
| Balance, January 1, 2012                                                    |   | $                 | 1,274  |   |
| Core deposit intangible acquired in conjunction with the acquisition of VSB |   |              | 1,273  |   |
| Amortization expense                                                        |   |              | (478   | ) |
| Balance, December 31, 2012                                                  |   | $                 | 2,069  |   |

|                                                         |   | Goodwill |   |
|--------------------------------------------------------------|--------|----------|--------|
| Balance, January 1, 2012                                     |   | $        | 54,890 |   |
| Goodwill acquired in conjunction with the acquisition of VSB |   |     | 8,098  |   |
| Balance, December 31, 2012                                   |   | $        | 62,988 |   |

----

|                                                   |   | December 31, 2012 |    |   | December 31, 2011      |   |
|--------------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
| (In thousands)                                         |   | Amortized Cost    |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |   | Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
| Securities available-for-sale:                         |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasuries and U.S.                               |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      government agencies      |   | $                 | 3,792   |   |                   | $      | 96 |   |   | $ | - |   |   | $ | 3,888 |   |   | $ | 5,868 |   |   | $ | 173 |   |   | $ | - |   |   | $ | 6,041 |   |
| Obligations of states and                              |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      political subdivisions   |   |              | 47,293  |   |                   |   | 1,651 |   |   |   | 15 |   |   |   | 48,929 |   |   |   | 55,262 |   |   |   | 1,561 |   |   |   | 21 |   |   |   | 56,802 |   |
| Mortgage-backed securities:                            |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      U.S. government agencies |   |              | 279,336 |   |                   |   | 7,231 |   |   |   | 85 |   |   |   | 286,482 |   |   |   | 220,815 |   |   |   | 6,966 |   |   |   | 168 |   |   |   | 227,613 |   |
|      Private label            |   |              | 3,235   |   |                   |   | 37 |   |   |   | - |   |   |   | 3,272 |   |   |   | 5,117 |   |   |   | 45 |   |   |   | 6 |   |   |   | 5,156 |   |
| Trust preferred                                        |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      securities               |   |              | 15,402  |   |                   |   | 55 |   |   |   | 2,812 |   |   |   | 12,645 |   |   |   | 48,951 |   |   |   | 941 |   |   |   | 4,735 |   |   |   | 45,157 |   |
| Corporate securities                                   |   |              | 16,152  |   |                   |   | 207 |   |   |   | 412 |   |   |   | 15,947 |   |   |   | 16,226 |   |   |   | 160 |   |   |   | 1,988 |   |   |   | 14,398 |   |
|      Total Debt Securities    |   |              | 365,210 |   |                   |   | 9,277 |   |   |   | 3,324 |   |   |   | 371,163 |   |   |   | 352,239 |   |   |   | 9,846 |   |   |   | 6,918 |   |   |   | 355,167 |   |
| Marketable equity  securities                |   |              | 3,381   |   |                   |   | 804 |   |   |   | - |   |   |   | 4,185 |   |   |   | 4,318 |   |   |   | - |   |   |   | 465 |   |   |   | 3,853 |   |
| Investment funds                                       |   |              | 1,724   |   |                   |   | 50 |   |   |   | - |   |   |   | 1,774 |   |   |   | 1,724 |   |   |   | 39 |   |   |   | - |   |   |   | 1,763 |   |
| Total Securities                                       |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-Sale                                     |   | $                 | 370,315 |   |                   | $      | 10,131 |   |   | $ | 3,324 |   |   | $ | 377,122 |   |   | $ | 358,281 |   |   | $ | 9,885 |   |   | $ | 7,383 |   |   | $ | 360,783 |   |

|                                               |   | December 31, 2012 |   |   | December 31, 2011      |   |
|----------------------------------------------------|--------|-------------------|--------|--------|------------------------|--------|
| (In thousands)                                     |   | Amortized Cost    |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |   | Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
| Securities held-to-maturity                        |   |              |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred securities                         |   | $                 | 13,454 |   |                   | $      | 465 |   |   | $ | 58 |   |   | $ | 13,861 |   |   | $ | 23,458 |   |   | $ | 675 |   |   | $ | 710 |   |   | $ | 23,423 |   |
| Total Securities                                   |   |              |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Held-to-Maturity                 |   | $                 | 13,454 |   |                   | $      | 465 |   |   | $ | 58 |   |   | $ | 13,861 |   |   | $ | 23,458 |   |   | $ | 675 |   |   | $ | 710 |   |   | $ | 23,423 |   |
|                                               |   |              |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other investment securities:                       |   |              |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Non-marketable equity securities |   | $                 | 11,463 |   |                   | $      | - |   |   | $ | - |   |   | $ | 11,463 |   |   | $ | 11,934 |   |   | $ | - |   |   | $ | - |   |   | $ | 11,934 |   |
| Total Other Investment                             |   |              |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities                       |   | $                 | 11,463 |   |                   | $      | - |   |   | $ | - |   |   | $ | 11,463 |   |   | $ | 11,934 |   |   | $ | - |   |   | $ | - |   |   | $ | 11,934 |   |

----

|                                                   |   | December 31, 2012       |   |
|--------------------------------------------------------|--------|-------------------------|--------|
|                                                   |   | Less Than Twelve Months |   |   | Twelve Months or Greater |   |   | Total |   |
| (In thousands)                                         |   | Estimated Fair Value    |   |   | Unrealized Loss |   |   | Estimated Fair Value |   |   | Unrealized Loss |   |   | Estimated Fair Value |   |   | Unrealized Loss |   |
|                                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available-for-sale:                         |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of states and political subdivisions       |   | $                       | 1,163  |   |   | $ | 15 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,163 |   |   | $ | 15 |   |
| Mortgage-backed securities:                            |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      U.S. Government agencies |   |                    | 16,225 |   |   |   | 85 |   |   |   | - |   |   |   | - |   |   |   | 16,225 |   |   |   | 85 |   |
| Trust preferred securities                             |   |                    | 348    |   |   |   | 51 |   |   |   | 5,836 |   |   |   | 2,761 |   |   |   | 6,184 |   |   |   | 2,812 |   |
| Corporate securities                                   |   |                    | 1,950  |   |   |   | 49 |   |   |   | 4,344 |   |   |   | 363 |   |   |   | 6,294 |   |   |   | 412 |   |
| Total                                                  |   | $                       | 19,686 |   |   | $ | 200 |   |   | $ | 10,180 |   |   | $ | 3,124 |   |   | $ | 29,866 |   |   | $ | 3,324 |   |
|                                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities held-to-maturity:                           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred securities                             |   | $                       | -      |   |   | $ | - |   |   | $ | 3,380 |   |   | $ | 58 |   |   | $ | 3,380 |   |   | $ | 58 |   |

|                                                   |   | December 31, 2011       |   |
|--------------------------------------------------------|--------|-------------------------|--------|
|                                                   |   | Less Than Twelve Months |   |   | Twelve Months or Greater |   |   | Total |   |
| (In thousands)                                         |   | Estimated Fair Value    |   |   | Unrealized Loss |   |   | Estimated Fair Value |   |   | Unrealized Loss |   |   | Estimated Fair Value |   |   | Unrealized Loss |   |
|                                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available-for-sale:                         |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of states and political subdivisions       |   | $                       | 992    |   |   | $ | 11 |   |   | $ | 394 |   |   | $ | 10 |   |   | $ | 1,386 |   |   | $ | 21 |   |
| Mortgage-backed securities:                            |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      U.S. Government agencies |   |                    | -      |   |   |   | - |   |   |   | 4,333 |   |   |   | 168 |   |   |   | 4,333 |   |   |   | 168 |   |
|      Private label            |   |                    | 3,236  |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | 3,236 |   |   |   | 6 |   |
| Trust preferred securities                             |   |                    | 6,724  |   |   |   | 520 |   |   |   | 5,402 |   |   |   | 4,215 |   |   |   | 12,126 |   |   |   | 4,735 |   |
| Corporate securities                                   |   |                    | 1,791  |   |   |   | 241 |   |   |   | 4,941 |   |   |   | 1,747 |   |   |   | 6,732 |   |   |   | 1,988 |   |
| Marketable equity securities                           |   |                    | 3,810  |   |   |   | 465 |   |   |   | - |   |   |   | - |   |   |   | 3,810 |   |   |   | 465 |   |
| Total                                                  |   | $                       | 16,553 |   |   | $ | 1,243 |   |   | $ | 15,070 |   |   | $ | 6,140 |   |   | $ | 31,623 |   |   | $ | 7,383 |   |
|                                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities held-to-maturity:                           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred securities                             |   | $                       | 4,823  |   |   | $ | 212 |   |   | $ | 8,219 |   |   | $ | 498 |   |   | $ | 13,042 |   |   | $ | 710 |   |

----

----

| (In thousands)               |   | Debt Securities |   |   | Equity Securities |   |   | Total  |   |
|------------------------------|--------|-----------------|--------|--------|-------------------|--------|--------|--------|--------|
|                         |   |            |   |   |              |   |   |   |   |
| Balance at January 1, 2011   |   | $               | 20,893 |   |              | $      | 5,130  |   |   | $ | 26,023 |   |
| Additions:                   |   |            |   |   |              |   |   |   |   |   |   |   |
| Initial credit impairment    |   |            | -      |   |              |   | -      |   |   |   | - |   |
| Additional credit impairment |   |            | 355    |   |              |   | 918    |   |   |   | 1,273 |   |
| Deductions:                  |   |            |   |   |              |   |   |   |   |   |   |   |
|    Called     |   |            | (638   | )      |              |   | -      |   |   |   | (638 | ) |
| Balance December 31, 2011    |   |            | 20,610 |   |              |   | 6,048  |   |   |   | 26,658 |   |
| Additions:                   |   |            |   |   |              |   |   |   |   |   |   |   |
| Initial credit impairment    |   |            | -      |   |              |   | -      |   |   |   | - |   |
| Additional credit impairment |   |            | 576    |   |              |   | -      |   |   |   | 576 |   |
| Deductions:                  |   |            |   |   |              |   |   |   |   |   |   |   |
|    Sold       |   |            | -      |   |              |   | (1,235 | )      |   |   | (1,235 | ) |
| Balance December 31, 2012    |   | $               | 21,186 |   |              | $      | 4,813  |   |   | $ | 25,999 |   |

----

| Deal Name |   | Type                               | Class                                         |   | Original Cost |   |   | Amortized Cost |   |   | Fair Value |   |   | Difference (1) |   | Lowest Credit Rating |   | # of issuers currently performing |   |   | Actual deferrals/defaults (as a % of original dollar) |   |   | Expected deferrals/defaults (as a % of remaining of performing collateral) |   |   |   |   |   | Excess Subordination as a Percentage of Current Performing Collateral (4) |   |
|-----------|--------|------------------------------------|-----------------------------------------------|--------|---------------|--------|--------|----------------|--------|--------|------------|--------|--------|----------------|--------|----------------------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|---------------------------------------------------------------------------|--------|
|      |   | Pooled trust preferred securities: |                                          |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |
|      |   | Available for Sale:                |                                          |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |
|      | P1     |                               | Pooled                                        | Mezz   |          | $      | 1,115  |           |   | $      | 451        |   |   | $              | 248    |                 |   |                              | (203   | )      | Ca                                                    |   |   | 12                                                                         |   |   |   | 22.8   | %      |                                                                      |   | 17.1 | % |   |   |   | (2) |   |   | 33.3 | % |
|      | P2     |                               | Pooled                                        | Mezz   |          |   | 3,944  |           |   |   | 1,197      |   |   |           | 871    |                 |   |                              | (326   | )      | Ca                                                    |   |   | 12                                                                         |   |   |   | 25.9   | %      |                                                                      |   | 18.9 | % |   |   |   | (2) |   |   | 8.8 | % |
|      | P3     | (5)                                | Pooled                                        | Mezz   |          |   | 2,962  |           |   |   | 1,419      |   |   |           | 367    |                 |   |                              | (1,052 | )      | Caa3                                                  |   |   | 22                                                                         |   |   |   | 24.5   | %      |                                                                      |   | 8.2 | % |   |   |   | (2) |   |   | 12.3 | % |
|      | P4     | (6)                                | Pooled                                        | Mezz   |          |   | 4,060  |           |   |   | 400        |   |   |           | 348    |                 |   |                              | (52    | )      | Ca                                                    |   |   | 10                                                                         |   |   |   | 19.2   | %      |                                                                      |   | 8.2 | % |   |   |   | (3) |   |   | 21.0 | % |
|      | P5     |                               | Pooled                                        | Mezz   |          |   | 5,872  |           |   |   | 826        |   |   |           | 376    |                 |   |                              | (450   | )      | Ca                                                    |   |   | 14                                                                         |   |   |   | 26.0   | %      |                                                                      |   | 22.0 | % |   |   |   | (2) |   |   | 20.8 | % |
|      |   |                               |                                          |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |
|      |   |                               | Held-to-Maturity:                             |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |   |                                                                      |   |   |   |   |   |   |   |
|      | P6     |                               | Pooled                                        | Mezz   |          |   | 2,158  |           |   |   | 255        |   |   |           | 496    |                 |   |                              | 241    |   | Ca                                                    |   |   | 12                                                                         |   |   |   | 22.8   | %      |                                                                      |   | 17.1 | % |   |   |   | (2) |   |   | 33.3 | % |
|      | P7     |                               | Pooled                                        | Mezz   |          |   | 5,237  |           |   |   | 1,075      |   |   |           | 1,161  |                 |   |                              | 86     |   | Ca                                                    |   |   | 12                                                                         |   |   |   | 25.9   | %      |                                                                      |   | 18.9 | % |   |   |   | (2) |   |   | 8.8 | % |
|      |   |                               |                                          |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |
|      |   |                               | Single issuer trust preferred securities |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |   |                                                                      |   |   |   |
|      |   |                               | Available for sale:                           |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |   |                                                                      |   |   |   |   |   |   |   |
|      | S1     |                               | Single                                        |   |          |   | 261    |           |   |   | 235        |   |   |           | 174    |                 |   |                              | (61    | )      | NR                                                    |   |   | 1                                                                          |   |   |   | -      |   |                                                                      |   | - |   |   |   |   |   |   |   |   |   |
|      | S2     |                               | Single                                        |   |          |   | 1,000  |           |   |   | 1,000      |   |   |           | 1,018  |                 |   |                              | 18     |   | Ba3                                                   |   |   | 1                                                                          |   |   |   | -      |   |                                                                      |   | - |   |   |   |   |   |   |   |   |   |
|      |   |                               |                                          |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |
|      |   |                               | Held-to-Maturity:                             |   |          |   |   |           |   |   |       |   |   |           |   |                 |   |                              |   |   |                                                  |   |   |                                                                       |   |   |   |   |   |                                                                      |   |   |   |   |   |   |   |
|      | S3     |                               | Single                                        |   |          |   | 4,000  |           |   |   | 4,000      |   |   |           | 4,000  |                 |   |                              | -      |   | NR                                                    |   |   | 1                                                                          |   |   |   | -      |   |                                                                      |   | - |   |   |   |   |   |   |   |   |   |
|      | S4     |                               | Single                                        |   |          |   | 3,360  |           |   |   | 3,094      |   |   |           | 3,090  |                 |   |                              | (4     | )      | NR                                                    |   |   | 1                                                                          |   |   |   | -      |   |                                                                      |   | - |   |   |   |   |   |   |   |   |   |
|      | S5     |                               | Single                                        |   |          |   | 3,564  |           |   |   | 3,531      |   |   |           | 3,586  |                 |   |                              | 55     |   | NR                                                    |   |   | 1                                                                          |   |   |   | -      |   |                                                                      |   | - |   |   |   |   |   |   |   |   |   |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | The differences noted consist of unrealized losses recorded at December 31, 2012 and noncredit other-than-temporary impairment losses recorded subsequent to April 1, 2009 that have not been reclassified as credit losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (2)    | Performing collateral is defined as total collateral minus all collateral that has been called, is currently deferring, or currently in default. This model for this security assumes that all collateral that is currently deferring will default with a zero recovery rate. The underlying issuers can cure, thus this bond could recover at a higher percentage upon default than zero.                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (3)    | Performing collateral is defined as total collateral minus all collateral that has been called, is currently deferring, or currently in default.  The model for this security assumes that one of the banks that are currently deferring will cure.  If additional underlying issuers cure, this bond could recover at a higher percentage.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (4)    | Excess subordination is defined as the additional defaults/deferrals necessary in the next reporting period to deplete the entire credit enhancement (excess interest and over-collateralization) beneath our tranche within each pool to the point that would cause a "break in yield." This amount assumes that all currently performing collateral continues to perform. A break in yield means that our security would not be expected to receive all the contractual cash flows (principal and interest) by maturity. The "percent of current performing collateral" is the ratio of the "excess subordination amount" to current performing collateral—a higher percent means there is more excess subordination to absorb additional defaults/deferrals, and the better our security is protected from loss. |
| (5)    | Other-than-temporary impairment losses of $11,000 were recognized during the year ended December 31, 2012.  Other-than-temporary impairment losses of $115,000 were recognized during the year ended December 31, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (6)    | Other-than-temporary impairment losses of $565,000 were recognized during the year ended December 31, 2012.  Other-than-temporary impairment losses of $240,000 were recognized during the year ended December 31, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| (In thousands)                         |   | Cost   |    |   | Estimated Fair Value |   |
|----------------------------------------|--------|--------|---------|--------|----------------------|--------|
| Securities Available-for-Sale          |   |   |    |   |                 |   |
| Due in one year or less                |   |   | 6,672   |   |                 |   | 6,705 |   |
| Due after one year through five years  |   |   | 31,265  |   |                 |   | 31,680 |   |
| Due after five years through ten years |   |   | 55,632  |   |                 |   | 57,646 |   |
| Due after ten years                    |   |   | 271,641 |   |                 |   | 275,132 |   |
|                                   |   | $      | 365,210 |   |                 | $      | 371,163 |   |
|                                   |   |   |    |   |                 |   |   |   |
| Securities Held-to-Maturity            |   |   |    |   |                 |   |   |   |
| Due in one year or less                |   |   | -       |   |                 |   | - |   |
| Due after one year through five years  |   |   | -       |   |                 |   | - |   |
| Due after five years through ten years |   |   | -       |   |                 |   | - |   |
| Due after ten years                    |   |   | 13,454  |   |                 |   | 13,861 |   |
|                                   |   | $      | 13,454  |   |                 | $      | 13,861 |   |

|                               |   | For the year ended December 31, |   |
|------------------------------------|--------|---------------------------------|--------|
| (in thousands)                     |   | 2012                            |   |   | 2011 |   |   | 2010 |   |
|                               |   |                            |   |   |   |   |   |   |   |
| Gross realized gains               |   |                            | 1,776  |   |   |   | 3,763 |   |   |   | 1,397 |   |
| Gross realized losses              |   |                            | (246   | ) |   |   | (7 | ) |   |   | - |   |
| Investment security gains (losses) |   |                            | 1,530  |   |   |   | 3,756 |   |   |   | 1,397 |   |

| ( In thousands)                  |   | December 31, 2012 |      |   | December 31, 2011 |   |
|----------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
|                             |   |              |      |   |              |   |
| Residential real estate          |   | $                 | 1,031,435 |   |              | $      | 929,788 |   |
| Home equity – junior liens |   |              | 143,110   |   |              |   | 141,797 |   |
| Commercial and industrial        |   |              | 108,739   |   |              |   | 130,899 |   |
| Commercial real estate           |   |              | 821,970   |   |              |   | 732,146 |   |
| Consumer                         |   |              | 36,564    |   |              |   | 35,845 |   |
| DDA overdrafts                   |   |              | 4,551     |   |              |   | 2,628 |   |
| Gross loans                      |   |              | 2,146,369 |   |              |   | 1,973,103 |   |
| Allowance for loan losses        |   |              | (18,809   | )      |              |   | (19,409 | ) |
| Net loans                        |   | $                 | 2,127,560 |   |              | $      | 1,953,694 |   |

----

|                                                    |   | Accretable Yield |   |   | Carrying Amountof Loans |   |
|---------------------------------------------------------|--------|------------------|--------|--------|-------------------------|--------|
| Balance at the beginning of the period                  |   | $                | -      |   |                    | $      | - |   |
| Additions                                               |   |             | 954    |   |                    |   | 6,640 |   |
| Accretion                                               |   |             | (837   | )      |                    |   | 837 |   |
| Net reclassifications to accretable from non-accretable |   |             | 1,714  |   |                    |   | - |   |
| Payments received, net                                  |   |             | -      |   |                    |   | (356 | ) |
| Disposals                                               |   |             | (8     | )      |                    |   | (103 | ) |
| Balance at the end of period                            |   | $                | 1,823  |   |                    | $      | 7,018 |   |

|                                        |   |   |   |
|---------------------------------------------|--------|--------|--------|
| Contractual required principal and interest |   | $      | 10,758 |   |
| Nonaccretable difference                    |   |   | (1,917 | ) |
| Expected cash flows                         |   |   | 8,841  |   |
| Accretable yield                            |   |   | (1,823 | ) |
| Carrying balance                            |   | $      | 7,018  |   |

| (In thousands)                   |   | Commercial and industrial |    |   | Commercial real estate |   |    | Residential real estate |   |   | Home equity |   |   | Consumer |    |   | DDA overdrafts |   |   | Total  |   |
|----------------------------------|--------|---------------------------|---------|--------|------------------------|--------|---------|-------------------------|--------|--------|-------------|--------|--------|----------|---------|--------|----------------|--------|--------|--------|--------|
| December 31, 2012:               |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |
| Allowance for loan loss          |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |
| Beginning balance                |   | $                         | 590     |   |                   | $      | 11,666  |                    |   | $      | 4,839       |   |   | $        | 1,525   |   |           | $      | 88     |   |   | $ | 701 |   |   | $ | 19,409 |   |
|    Charge-offs    |   |                      | 226     |   |                   |   | 4,604   |                    |   |   | 1,030       |   |   |     | 1,355   |   |           |   | 190    |   |   |   | 1,522 |   |   |   | 8,927 |   |
|    Recoveries     |   |                      | 32      |   |                   |   | 289     |                    |   |   | 22          |   |   |     | 18      |   |           |   | 135    |   |   |   | 1,456 |   |   |   | 1,952 |   |
|    Provision      |   |                      | 102     |   |                   |   | 3,089   |                    |   |   | 1,398       |   |   |     | 1,511   |   |           |   | 48     |   |   |   | 227 |   |   |   | 6,375 |   |
| Ending balance                   |   | $                         | 498     |   |                   | $      | 10,440  |                    |   | $      | 5,229       |   |   | $        | 1,699   |   |           | $      | 81     |   |   | $ | 862 |   |   | $ | 18,809 |   |
|                             |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011:               |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan loss          |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                |   | $                         | 1,864   |   |                   | $      | 8,488   |                    |   | $      | 5,337       |   |   | $        | 1,452   |   |           | $      | 95     |   |   | $ | 988 |   |   | $ | 18,224 |   |
|    Charge-offs    |   |                      | 522     |   |                   |   | 1,989   |                    |   |   | 1,367       |   |   |     | 1,089   |   |           |   | 164    |   |   |   | 1,712 |   |   |   | 6,843 |   |
|    Recoveries     |   |                      | 23      |   |                   |   | 1,981   |                    |   |   | 29          |   |   |     | 7       |   |           |   | 136    |   |   |   | 1,252 |   |   |   | 3,428 |   |
|    Provision      |   |                      | (775    | )      |                   |   | 3,186   |                    |   |   | 840         |   |   |     | 1,155   |   |           |   | 21     |   |   |   | 173 |   |   |   | 4,600 |   |
| Ending balance                   |   | $                         | 590     |   |                   | $      | 11,666  |                    |   | $      | 4,839       |   |   | $        | 1,525   |   |           | $      | 88     |   |   | $ | 701 |   |   | $ | 19,409 |   |
|                             |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2012:         |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan loss          |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Evaluated for impairment:        |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Individually   |   | $                         | -       |   |                   | $      | -       |                    |   | $      | -           |   |   | $        | -       |   |           | $      | -      |   |   | $ | - |   |   | $ | - |   |
|    Collectively   |   |                      | 498     |   |                   |   | 10,440  |                    |   |   | 5,229       |   |   |     | 1,699   |   |           |   | 81     |   |   |   | 862 |   |   |   | 18,809 |   |
| Acquired with deteriorated       |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    credit quality |   |                      | -       |   |                   |   | -       |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | - |   |
| Total                            |   | $                         | 498     |   |                   | $      | 10,440  |                    |   | $      | 5,229       |   |   | $        | 1,699   |   |           | $      | 81     |   |   | $ | 862 |   |   | $ | 18,809 |   |
|                             |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Loans                            |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Evaluated for impairment:        |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Individually   |   | $                         | -       |   |                   | $      | 9,912   |                    |   | $      | 469         |   |   | $        | 298     |   |           | $      | -      |   |   | $ | - |   |   | $ | 10,679 |   |
|    Collectively   |   |                      | 108,739 |   |                   |   | 805,365 |                    |   |   | 1,030,840   |   |   |     | 142,724 |   |           |   | 36,453 |   |   |   | 4,551 |   |   |   | 2,128,672 |   |
| Acquired with deteriorated       |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    credit quality |   |                      | -       |   |                   |   | 6,693   |                    |   |   | 126         |   |   |     | 88      |   |           |   | 111    |   |   |   | - |   |   |   | 7,018 |   |
| Total                            |   | $                         | 108,739 |   |                   | $      | 821,970 |                    |   | $      | 1,031,435   |   |   | $        | 143,110 |   |           | $      | 36,564 |   |   | $ | 4,551 |   |   | $ | 2,146,369 |   |
|                             |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2011:         |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan loss          |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Evaluated for impairment:        |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Individually   |   | $                         | -       |   |                   | $      | 2,666   |                    |   | $      | -           |   |   | $        | -       |   |           | $      | -      |   |   | $ | - |   |   | $ | 2,666 |   |
|    Collectively   |   |                      | 590     |   |                   |   | 9,000   |                    |   |   | 4,839       |   |   |     | 1,525   |   |           |   | 88     |   |   |   | 701 |   |   |   | 16,743 |   |
| Total                            |   | $                         | 590     |   |                   | $      | 11,666  |                    |   | $      | 4,839       |   |   | $        | 1,525   |   |           | $      | 88     |   |   | $ | 701 |   |   | $ | 19,409 |   |
|                             |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Loans                            |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Evaluated for impairment:        |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Individually   |   | $                         | 81      |   |                   | $      | 15,311  |                    |   | $      | 476         |   |   | $        | 298     |   |           | $      | -      |   |   | $ | - |   |   | $ | 16,166 |   |
|    Collectively   |   |                      | 130,818 |   |                   |   | 716,835 |                    |   |   | 929,312     |   |   |     | 141,499 |   |           |   | 35,845 |   |   |   | 2,628 |   |   |   | 1,956,937 |   |
| Total                            |   | $                         | 130,899 |   |                   | $      | 732,146 |                    |   | $      | 929,788     |   |   | $        | 141,797 |   |           | $      | 35,845 |   |   | $ | 2,628 |   |   | $ | 1,973,103 |   |

----

| Risk Rating     | Description                                                                                                                                                                                                                                                                                                                                                                            |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                                                                                                                                                                                                                                                                   |
| Exceptional     | Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy.  Loans rated within this category pose minimal risk of loss to the bank and the risk grade within this pool of loans is generally updated on an annual basis.                                                                                                |
| Good            | Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles.  Loans within this category are generally reviewed on an annual basis.  Loans in this category generally have a low chance of loss to the bank. |
| Acceptable      | Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles.  Loans within this category generally have a low risk of loss to the bank.                                                                                                                |
| Pass/watch      | Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk.  A borrower in this category poses a low to moderate risk of loss to the bank.                                                                                                                            |
| Special mention | Loans classified as special mention have a potential weakness(es) that deserves management’s close attention.  The potential weakness could result in deterioration of the loan repayment or the bank’s credit position at some future date.  A loan rated in this category poses a moderate loss risk to the bank.                               |
| Substandard     | Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt.  Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected and the bank’s collateral value is weakened by the financial deterioration of the borrower.                 |
| Doubtful        | Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable.  Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position.                       |

----

| (In thousands)     |   | Commercial and industrial |    |   | Commercial real estate |   |    | Residential real estate |   |   | Home equity |   |   | Consumer |    |   | DDA overdrafts |   |   | Total  |   |
|--------------------|--------|---------------------------|---------|--------|------------------------|--------|---------|-------------------------|--------|--------|-------------|--------|--------|----------|---------|--------|----------------|--------|--------|--------|--------|
| December 31, 2012: |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |
| Risk Grade         |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |
| Exceptional        |   | $                         | 3,355   |   |                   | $      | 1,795   |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   | $ | 5,150 |   |
| Good               |   |                      | 5,951   |   |                   |   | 108,944 |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 114,895 |   |
| Acceptable         |   |                      | 73,566  |   |                   |   | 491,558 |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 565,124 |   |
| Pass/watch         |   |                      | 22,818  |   |                   |   | 169,320 |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 192,138 |   |
| Special mention    |   |                      | 878     |   |                   |   | 15,015  |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 15,893 |   |
| Substandard        |   |                      | 2,171   |   |                   |   | 35,338  |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 37,509 |   |
| Doubtful           |   |                      | -       |   |                   |   | -       |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | - |   |
| Total              |   | $                         | 108,739 |   |                   | $      | 821,970 |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   | 930,709 |   |
|               |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Payment Activity   |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Performing         |   |                      |    |   |                   |   |    |                    |   |   | 1,029,142   |   |   |     | 141,961 |   |           |   | 36,564 |   |   |   | 4,548 |   |   | $ | 1,212,215 |   |
| Non-performing     |   |                      |    |   |                   |   |    |                    |   |   | 2,293       |   |   |     | 1,149   |   |           |   | -      |   |   |   | 3 |   |   |   | 3,445 |   |
| Total              |   |                      |    |   |                   |   |    |                    |   | $      | 1,031,435   |   |   | $        | 143,110 |   |           | $      | 36,564 |   |   | $ | 4,551 |   |   | $ | 2,146,369 |   |
|               |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011: |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Risk Grade         |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Exceptional        |   | $                         | 4,220   |   |                   | $      | 42      |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   | $ | 4,262 |   |
| Good               |   |                      | 6,728   |   |                   |   | 107,718 |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 114,446 |   |
| Acceptable         |   |                      | 93,077  |   |                   |   | 411,721 |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 504,798 |   |
| Pass/watch         |   |                      | 25,246  |   |                   |   | 161,598 |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 186,844 |   |
| Special mention    |   |                      | 470     |   |                   |   | 16,802  |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 17,272 |   |
| Substandard        |   |                      | 1,037   |   |                   |   | 34,265  |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 35,302 |   |
| Doubtful           |   |                      | 121     |   |                   |   | -       |                    |   |   | -           |   |   |     | -       |   |           |   | -      |   |   |   | - |   |   |   | 121 |   |
| Total              |   | $                         | 130,899 |   |                   | $      | 732,146 |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   | 863,045 |   |
|               |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Payment Activity   |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Performing         |   |                      |    |   |                   |   |    |                    |   | $      | 928,789     |   |   | $        | 139,996 |   |           | $      | 35,845 |   |   | $ | 2,616 |   |   | $ | 1,107,246 |   |
| Non-performing     |   |                      |    |   |                   |   |    |                    |   |   | 999         |   |   |     | 1,801   |   |           |   | -      |   |   |   | 12 |   |   |   | 2,812 |   |
| Total              |   |                      |    |   |                   |   |    |                    |   | $      | 929,788     |   |   | $        | 141,797 |   |           | $      | 35,845 |   |   | $ | 2,628 |   |   | $ | 1,973,103 |   |

----

| (In thousands)              |   | Commercial and industrial |    |   | Commercial real estate |   |    | Residential real estate |   |   | Home equity |   |   | Consumer |    |   | DDA overdrafts |   |   | Total  |   |
|-----------------------------|--------|---------------------------|---------|--------|------------------------|--------|---------|-------------------------|--------|--------|-------------|--------|--------|----------|---------|--------|----------------|--------|--------|--------|--------|
| December 31, 2012:          |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |
| 30 – 59 days past due |   | $                         | 260     |   |                   | $      | 442     |                    |   | $      | 4,910       |   |   | $        | 2,379   |   |           | $      | 113    |   |   | $ | 270 |   |   | $ | 8,374 |   |
| 60 – 89 days past due |   |                      | 236     |   |                   |   | 246     |                    |   |   | 599         |   |   |     | 477     |   |           |   | 8      |   |   |   | 8 |   |   |   | 1,574 |   |
| Over 90 days past due       |   |                      | -       |   |                   |   | 1       |                    |   |   | 239         |   |   |     | 37      |   |           |   | -      |   |   |   | 3 |   |   |   | 280 |   |
| Non-accrual                 |   |                      | 1,102   |   |                   |   | 17,667  |                    |   |   | 2,054       |   |   |     | 1,112   |   |           |   | -      |   |   |   | - |   |   |   | 21,935 |   |
|                        |   |                      | 1,598   |   |                   |   | 18,356  |                    |   |   | 7,802       |   |   |     | 4,005   |   |           |   | 121    |   |   |   | 281 |   |   |   | 32,163 |   |
| Current                     |   |                      | 107,141 |   |                   |   | 803,614 |                    |   |   | 1,023,633   |   |   |     | 139,105 |   |           |   | 36,443 |   |   |   | 4,270 |   |   |   | 2,114,206 |   |
| Total                       |   | $                         | 108,739 |   |                   | $      | 821,970 |                    |   | $      | 1,031,435   |   |   | $        | 143,110 |   |           | $      | 36,564 |   |   | $ | 4,551 |   |   | $ | 2,146,369 |   |
|                        |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011:          |   |                      |    |   |                   |   |    |                    |   |   |        |   |   |     |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| 30 – 59 days past due |   | $                         | 1,243   |   |                   | $      | 576     |                    |   | $      | 4,912       |   |   | $        | 1,906   |   |           | $      | 133    |   |   | $ | 883 |   |   | $ | 9,653 |   |
| 60 – 89 days past due |   |                      | -       |   |                   |   | 2,839   |                    |   |   | 408         |   |   |     | 228     |   |           |   | 5      |   |   |   | 14 |   |   |   | 3,494 |   |
| Over 90 days past due       |   |                      | -       |   |                   |   | -       |                    |   |   | 42          |   |   |     | 112     |   |           |   | -      |   |   |   | 12 |   |   |   | 166 |   |
| Non-accrual                 |   |                      | 375     |   |                   |   | 18,930  |                    |   |   | 957         |   |   |     | 1,689   |   |           |   | -      |   |   |   | - |   |   |   | 21,951 |   |
|                        |   |                      | 1,618   |   |                   |   | 22,345  |                    |   |   | 6,319       |   |   |     | 3,935   |   |           |   | 138    |   |   |   | 909 |   |   |   | 35,264 |   |
| Current                     |   |                      | 129,281 |   |                   |   | 709,801 |                    |   |   | 923,469     |   |   |     | 137,862 |   |           |   | 35,707 |   |   |   | 1,719 |   |   |   | 1,937,839 |   |
| Total                       |   | $                         | 130,899 |   |                   | $      | 732,146 |                    |   | $      | 929,788     |   |   | $        | 141,797 |   |           | $      | 35,845 |   |   | $ | 2,628 |   |   | $ | 1,973,103 |   |

----

| (In thousands)                             |   | Commercial and industrial |   |   | Commercial real estate |   |   | Residential real estate |   |   | Home equity |   |   | Consumer |   |   | DDA overdrafts |   |   | Total  |   |
|--------------------------------------------|--------|---------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|-------------|--------|--------|----------|--------|--------|----------------|--------|--------|--------|--------|
| December 31, 2012:                         |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |
| With no related allowance recorded         |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |
|    Recorded investment      |   | $                         | -      |   |                   | $      | 9,912  |                    |   | $      | 469         |   |   | $        | 298    |   |           | $      | -      |   |   | $ | - |   |   | $ | 10,679 |   |
|    Unpaid principal balance |   |                      | -      |   |                   |   | 14,781 |                    |   |   | 469         |   |   |     | 298    |   |           |   | -      |   |   |   | - |   |   |   | 15,548 |   |
|                                       |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded                 |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Recorded investment      |   | $                         | -      |   |                   | $      | -      |                    |   | $      | -           |   |   | $        | -      |   |           | $      | -      |   |   | $ | - |   |   | $ | - |   |
|    Unpaid principal balance |   |                      | -      |   |                   |   | -      |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | - |   |
|    Related allowance        |   |                      | -      |   |                   |   | -      |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | - |   |
|                                       |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011:                         |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded         |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Recorded investment      |   | $                         | 81     |   |                   | $      | 1,985  |                    |   | $      | 476         |   |   | $        | 298    |   |           | $      | -      |   |   | $ | - |   |   | $ | 2,840 |   |
|    Unpaid principal balance |   |                      | 81     |   |                   |   | 4,722  |                    |   |   | 476         |   |   |     | 298    |   |           |   | -      |   |   |   | - |   |   |   | 5,577 |   |
|                                       |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded                 |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Recorded investment      |   | $                         | -      |   |                   | $      | 13,326 |                    |   | $      | -           |   |   | $        | -      |   |           | $      | -      |   |   | $ | - |   |   | $ | 13,326 |   |
|    Unpaid principal balance |   |                      | -      |   |                   |   | 13,326 |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | 13,326 |   |
|    Related allowance        |   |                      | -      |   |                   |   | 2,666  |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | 2,666 |   |

| (In thousands)                                |   | Commercial and industrial |   |   | Commercial real estate |   |   | Residential real estate |   |   | Home equity |   |   | Consumer |   |   | DDA overdrafts |   |   | Total  |   |
|-----------------------------------------------|--------|---------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|-------------|--------|--------|----------|--------|--------|----------------|--------|--------|--------|--------|
| December 31, 2012:                            |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |
| With no related allowance recorded            |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |
|    Average recorded investment |   | $                         | -      |   |                   | $      | 13,124 |                    |   | $      | -           |   |   | $        | -      |   |           | $      | -      |   |   | $ | - |   |   | $ | 13,124 |   |
|    Interest income recognized  |   |                      | -      |   |                   |   | -      |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | - |   |
|                                          |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded                    |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Average recorded investment |   | $                         | -      |   |                   | $      | -      |                    |   | $      | -           |   |   | $        | -      |   |           | $      | -      |   |   | $ | - |   |   | $ | - |   |
|    Interest income recognized  |   |                      | -      |   |                   |   | -      |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | - |   |
|                                          |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011:                            |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded            |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Average recorded investment |   | $                         | 81     |   |                   | $      | 4,215  |                    |   | $      | 476         |   |   | $        | 298    |   |           | $      | -      |   |   | $ | - |   |   | $ | 5,070 |   |
|    Interest income recognized  |   |                      | -      |   |                   |   | -      |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | - |   |
|                                          |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded                    |   |                      |   |   |                   |   |   |                    |   |   |        |   |   |     |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Average recorded investment |   | $                         | -      |   |                   | $      | 14,428 |                    |   | $      | -           |   |   | $        | -      |   |           | $      | -      |   |   | $ | - |   |   | $ | 14,428 |   |
|    Interest income recognized  |   |                      | -      |   |                   |   | -      |                    |   |   | -           |   |   |     | -      |   |           |   | -      |   |   |   | - |   |   |   | - |   |

----

|                      |   | December 31, 2012 |   |
|---------------------------|--------|-------------------|--------|
| (In thousands)            |   | Accruing          |   |   | Non-Accruing |   |   | Total |   |
|                      |   |              |   |   |   |   |   |   |   |
| Commercial and industrial |   | $                 | 101    |   |   | $ | - |   |   | $ | 101 |   |
| Commercial real estate    |   |              | 734    |   |   |   | - |   |   |   | 734 |   |
| Residential real estate   |   |              | 15,083 |   |   |   | 162 |   |   |   | 15,245 |   |
| Home equity               |   |              | 7,068  |   |   |   | 418 |   |   |   | 7,486 |   |
| Consumer                  |   |              | 142    |   |   |   | - |   |   |   | 142 |   |
|                      |   | $                 | 23,128 |   |   | $ | 580 |   |   | $ | 23,708 |   |

|                      |   | New TDRs                             |   |
|---------------------------|--------|--------------------------------------|--------|
|                      |   | For the year ended December 31, 2012 |   |
|                      |   |                                 |   |   | Pre-modification |   |   | Post-modification |   |
|                      |   | Number of                            |   |   | Outstanding |   |   | Outstanding |   |
| (In thousands)            |   | Contracts                            |   |   | Recorded Investment |   |   | Recorded Investment |   |
|                      |   |                                 |   |   |   |   |   |   |   |
| Commercial and industrial |   |                                 | 1      |   |   | $ | 101 |   |   | $ | 101 |   |
| Commercial real estate    |   |                                 | 1      |   |   |   | 184 |   |   |   | 179 |   |
| Residential real estate   |   |                                 | 7      |   |   |   | 899 |   |   |   | 899 |   |
| Home equity               |   |                                 | 15     |   |   |   | 973 |   |   |   | 973 |   |
| Consumer                  |   |                                 | 1      |   |   |   | 142 |   |   |   | 142 |   |
|                      |   |                                 | 25     |   |   | $ | 2,299 |   |   | $ | 2,294 |   |

----

| ( In thousands)                | Estimated Useful Life |   | 2012   |    |   | 2011   |   |
|--------------------------------|-----------------------|--------|--------|---------|--------|--------|--------|
|                           |                  |   |   |    |   |   |   |
| Land                           |                  |   | $      | 29,383  |   |   | $      | 25,065 |   |
| Buildings and improvements     | 10 to 30 yrs.         |   |   | 76,892  |   |   |   | 72,940 |   |
| Equipment                      | 3 to 7 yrs.           |   |   | 38,539  |   |   |   | 35,159 |   |
|                           |                  |   |   | 144,814 |   |   |   | 133,164 |   |
| Less: accumulated depreciation |                  |   |   | (72,086 | )      |   |   | (68,552 | ) |
|                           |                  |   | $      | 72,728  |   |   | $      | 64,612 |   |

| ( In thousands)          |   | 2012   |   |   | 2011   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|
|                     |   |   |   |   |   |   |
| Gross carrying amount    |   | $      | 5,677  |   |   | $      | 4,404 |   |
| Accumulated amortization |   |   | (3,608 | )      |   |   | (3,130 | ) |
|                     |   | $      | 2,069  |   |   | $      | 1,274 |   |

| ( In thousands) |   |   |   |
|-----------------|--------|--------|--------|
|            |   |   |   |
| 2013            |   | $      | 520    |   |
| 2014            |   |   | 501    |   |
| 2015            |   |   | 285    |   |
| 2016            |   |   | 134    |   |
| 2017            |   |   | 129    |   |
| Thereafter      |   |   | 500    |   |
|            |   | $      | 2,069  |   |

| ( In thousands) |   |   |    |
|-----------------|--------|--------|---------|
|            |   |   |    |
| 2013            |   | $      | 513,640 |   |
| 2014            |   |   | 204,104 |   |
| 2015            |   |   | 88,316  |   |
| 2016            |   |   | 85,381  |   |
| 2017            |   |   | 26,882  |   |
| Over five years |   |   | 1,023   |   |
|            |   | $      | 919,346 |   |

----

| ( In thousands)               |   | 2012   |    |   | 2011   |   |
|-------------------------------|--------|--------|---------|--------|--------|--------|
|                          |   |   |    |   |   |   |
| Within one year               |   | $      | 166,285 |   |   | $      | 149,677 |   |
| Over one through two years    |   |   | 58,320  |   |   |   | 52,961 |   |
| Over two through three years  |   |   | 28,490  |   |   |   | 31,869 |   |
| Over three through four years |   |   | 39,004  |   |   |   | 15,655 |   |
| Over four through five years  |   |   | 9,704   |   |   |   | 25,244 |   |
| Over five years               |   |   | -       |   |   |   | 343 |   |
|                          |   | $      | 301,803 |   |   | $      | 275,749 |   |

| (dollars in thousands)             |   | 2012   |    |   | 2011   |   |    | 2010   |   |
|------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                               |   |   |    |   |   |   |    |   |   |
| Balance at end of year:            |   |   |    |   |   |   |    |   |   |
| Securities repurchase agreements   |   |   | 114,646 |   |   |   | 114,050 |   |   |   | 112,335 |   |
| Federal Funds purchased            |   |   | -       |   |   |   | 75,000  |   |   |   | - |   |
| FHLB advances                      |   |   | -       |   |   |   | -       |   |   |   | 375 |   |
| Total                              |   |   | 114,646 |   |   |   | 189,050 |   |   |   | 112,710 |   |
|                               |   |   |    |   |   |   |    |   |   |   |   |   |
| Avg. outstanding during the year:  |   |   |    |   |   |   |    |   |   |   |   |   |
| Securities repurchase agreements   |   |   | 121,270 |   |   |   | 122,693 |   |   |   | 110,891 |   |
| Federal Funds purchased            |   |   | 510     |   |   |   | 576     |   |   |   | - |   |
| FHLB advances                      |   |   | -       |   |   |   | 300     |   |   |   | 1,684 |   |
|                               |   |   |    |   |   |   |    |   |   |   |   |   |
| Max. outstanding at any month end: |   |   |    |   |   |   |    |   |   |   |   |   |
| Securities repurchase agreements   |   |   | 131,971 |   |   |   | 139,607 |   |   |   | 119,174 |   |
| Federal Funds purchased            |   |   | -       |   |   |   | 75,000  |   |   |   | - |   |
| FHLB advances                      |   |   | -       |   |   |   | 367     |   |   |   | 2,000 |   |
|                               |   |   |    |   |   |   |    |   |   |   |   |   |
| Weighted-average interest rate:    |   |   |    |   |   |   |    |   |   |   |   |   |
| During the year:                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Securities repurchase agreements   |   |   | 0.26    | %      |   |   | 0.25    | %      |   |   | 0.25 | % |
| Federal Funds purchased            |   |   | 0.28    | %      |   |   | 0.28    | %      |   |   | - |   |
| FHLB advances                      |   |   | -       |   |   |   | 4.36    | %      |   |   | 4.93 | % |
| End of the year:                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Securities repurchase agreements   |   |   | 0.26    | %      |   |   | 0.25    | %      |   |   | 0.25 | % |
| Federal Funds purchased            |   |   | 0.28    | %      |   |   | 0.28    | %      |   |   | - |   |
| FHLB advances                      |   |   | -       |   |   |   | -       |   |   |   | 4.38 | % |

----

| ( In thousands)                                                                                                                      |   | 2012   |   |   | 2011   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                 |   |   |   |   |   |   |
| Junior subordinated debentures owed to City Holding Capital Trust III, due 2038, interest at a rate of 3.89% and 3.85%, respectively |   | $      | 16,495 |   |   | $      | 16,495 |   |

----

|                                |   | 2012   |   |   | 2011   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
|                                |   |   |   |   |   |   |
| Fair Value:                         |   |   |   |   |   |   |
|    Other Assets      |   | $      | 14,012 |   |   | $      | 11,541 |   |
|    Other Liabilities |   |   | 14,012 |   |   |   | 11,541 |   |

|                                                  |   | Year Ended December 31, |   |
|-------------------------------------------------------|--------|-------------------------|--------|
|                                                  |   | 2012                    |   |   | 2011 |   |   | 2010 |   |
|                                                  |   |                    |   |   |   |   |   |   |   |
| Change in Fair Value:                                 |   |                    |   |   |   |   |   |   |   |
|    Other income - derivative asset     |   | $                       | 1,921  |   |   |   | 8,241 |   |   |   | 1,479 |   |
|    Other income - derivative liability |   |                    | (1,921 | ) |   |   | (8,241 | ) |   |   | (1,479 | ) |

|                           |   |   |   |   |   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|
| (in thousands)                 |   | 2012   |   |   | 2011   |   |
|                           |   |   |   |
| Deferred tax assets:           |   |   |   |   |   |   |
| Previously securitized loans   |   | $      | 5,921  |   |   | $      | 6,669 |   |
| Allowance for loan losses      |   |   | 7,100  |   |   |   | 7,310 |   |
| Deferred compensation payable  |   |   | 2,812  |   |   |   | 2,932 |   |
| Underfunded pension liability  |   |   | 3,029  |   |   |   | 2,874 |   |
| Accrued expenses               |   |   | 1,869  |   |   |   | 1,729 |   |
| Impaired assets                |   |   | 1,086  |   |   |   | 1,362 |   |
| Impaired security losses       |   |   | 9,814  |   |   |   | 10,386 |   |
| Intangible assets              |   |   | 2,928  |   |   |   | - |   |
| Other                          |   |   | 2,963  |   |   |   | 2,752 |   |
| Total Deferred Tax Assets      |   |   | 37,522 |   |   |   | 36,014 |   |
| Deferred tax liabilities:      |   |   |   |   |   |   |   |   |
| Intangible assets              |   |   | -      |   |   |   | 925 |   |
| Unrealized securities gains    |   |   | 2,145  |   |   |   | 495 |   |
| Other                          |   |   | 2,640  |   |   |   | 2,375 |   |
| Total Deferred Tax Liabilities |   |   | 4,785  |   |   |   | 3,795 |   |
| Net Deferred Tax Assets        |   | $      | 32,737 |   |   | $      | 32,219 |   |

----

| (in thousands)     |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |
| Current:           |   |   |   |   |   |   |   |   |   |
| Federal            |   |   | 15,509 |   |   |   | 20,052 |   |   |   | 17,147 |   |
| State              |   |   | 2,259  |   |   |   | 2,809  |   |   |   | 2,541 |   |
| Total current      |   |   | 17,768 |   |   |   | 22,861 |   |   |   | 19,688 |   |
|               |   |   |   |   |   |   |   |   |   |   |   |   |
| Total deferred     |   |   | 2,530  |   |   |   | (2,290 | )      |   |   | (1,235 | ) |
| Income tax expense |   |   | 20,298 |   |   |   | 20,571 |   |   |   | 18,453 |   |

| (in thousands)                                 |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                           |   |   |   |   |   |   |   |   |   |
| Computed federal taxes at statutory rate       |   |   | 20,735 |   |   |   | 21,437 |   |   |   | 20,096 |   |
| State income taxes, net of federal tax benefit |   |   | 1,591  |   |   |   | 1,654  |   |   |   | 1,586 |   |
| Tax effects of:                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt interest income                     |   |   | (712   | )      |   |   | (785   | )      |   |   | (804 | ) |
| Bank-owned life insurance                      |   |   | (1,044 | )      |   |   | (1,172 | )      |   |   | (1,269 | ) |
| Tax reserve adjustment                         |   |   | 8      |   |   |   | (70    | )      |   |   | (85 | ) |
| Other items, net                               |   |   | (280   | )      |   |   | (493   | )      |   |   | (1,071 | ) |
| Income tax expense                             |   |   | 20,298 |   |   |   | 20,571 |   |   |   | 18,453 |   |

|                                                           |   |   |   |   |   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| (in thousands)                                                 |   | 2012   |   |   | 2011   |   |
|                                                           |   |   |   |   |   |   |
| Balance at January 1,                                          |   |   | 3,649  |   |   |   | 3,645 |   |
| Additions for current year tax positions                       |   |   | 727    |   |   |   | 866 |   |
| Additions for prior year tax positions                         |   |   | -      |   |   |   | - |   |
| Decreases for prior year tax positions                         |   |   | -      |   |   |   | (862 | ) |
| Decreases for settlements with tax authorities                 |   |   | -      |   |   |   | - |   |
| Decreases related to lapse of applicable statute of limitation |   |   | -      |   |   |   | - |   |
| Balance at December 31                                         |   |   | 4,376  |   |   |   | 3,649 |   |

----

|   | Stock Options |
|--------|---------------|

|                                    |   | 2012    |    |   | 2011                            |   |   | 2010    |   |
|-----------------------------------------|--------|---------|---------|--------|---------------------------------|--------|--------|---------|--------|
|                                    |   | Options |    |   | Weighted-Average Exercise Price |   |   | Options |   |   | Weighted-Average Exercise Price |   |   | Options |   |   | Weighted-Average Exercise Price |   |
|                                    |   |    |    |   |                            |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Outstanding at January 1                |   |    | 293,817 |   |                            | $      | 33.95  |    |   |   | 287,393 |   |   | $ | 33.64 |   |   |   | 280,605 |   |   | $ | 33.56 |   |
|      Granted   |   |    | 16,876  |   |                            |   | 35.39  |    |   |   | 16,000 |   |   |   | 35.09 |   |   |   | 15,500 |   |   |   | 32.09 |   |
|      Exercised |   |    | (18,899 | )      |                            |   | 28.78  |    |   |   | (9,576 | ) |   |   | 26.63 |   |   |   | (7,962 | ) |   |   | 27.81 |   |
|      Forfeited |   |    | (2,250  | )      |                            |   | 33.28  |    |   |   | - |   |   |   | - |   |   |   | (750 | ) |   |   | 33.54 |   |
| Outstanding at December 31              |   |    | 289,544 |   |                            |   | 34.38  |    |   |   | 293,817 |   |   |   | 33.95 |   |   |   | 287,393 |   |   |   | 33.64 |   |
|                                    |   |    |    |   |                            |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable at end of year              |   |    | 183,584 |   |                            |   | 34.70  |    |   |   | 185,317 |   |   |   | 33.70 |   |   |   | 178,393 |   |   |   | 32.75 |   |
|                                    |   |    |    |   |                            |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonvested at beginning of year          |   |    | 108,500 |   |                            |   | 34.38  |    |   |   | 109,000 |   |   |   | 35.10 |   |   |   | 111,375 |   |   |   | 35.01 |   |
| Granted during the year                 |   |    | 16,876  |   |                            |   | 35.39  |    |   |   | 16,000 |   |   |   | 35.09 |   |   |   | 15,500 |   |   |   | 32.09 |   |
| Vested during the year                  |   |    | (18,166 | )      |                            |   | 38.87  |    |   |   | (16,500 | ) |   |   | 39.34 |   |   |   | (17,625 | ) |   |   | 31.88 |   |
| Forfeited during the year               |   |    | (1,250  | )      |                            |   | 30.38  |    |   |   | - |   |   |   | - |   |   |   | (250 | ) |   |   | 33.54 |   |
| Nonvested at end of eyar                |   |    | 105,960 |   |                            | $      | 33.81  |    |   |   | 108,500 |   |   | $ | 34.38 |   |   |   | 109,000 |   |   | $ | 35.10 |   |

----

| Ranges of Exercise Prices |           |   | No. of Options Outstanding |   |    | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Life (Months) |   |   | Aggregate Intrinsic Value (in thousands) |   |   | No. of Options Currently Exercisable |   |   | Weighted-Average Exercise Price of Options Currently Exercisable |   |   | Weighted-Average Remaining Contractual Life (Months) |   |   | Aggregate Intrinsic Value of Options Currently Exercisable (in thousands) |   |
|---------------------------|----------------|--------|----------------------------|--------|---------|---------------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
| $                         | 26.62 - $33.90 |   |                       |   | 165,168 |                            |   |   | 31.87                                                |   |   |                                     | 40     |   |                                 | $      | 491    |                                                             |   |   | 114,584                                              |   |   | $                                                                              | 32.65  |   |   |   | 23 |   |   | $ | 252 |   |
| $                         | 35.09 - $40.88 |   |                       |   | 124,376 |                            |   |   | 37.70                                                |   |   |                                     | 62     |   |                                 |   | -      |                                                             |   |   | 69,000                                               |   |   |                                                                           | 38.11  |   |   |   | 43 |   |   |   | - |   |
|                      |           |   |                       |   | 289,544 |                            |   |   |                                                 |   |   |                                     |   |   |                                 | $      | 491    |                                                             |   |   | 183,584                                              |   |   |                                                                           |   |   |   |   |   |   |   | $ | 252 |   |

|                    |   | 2012      |   |   | 2011      |   |   | 2010      |   |
|-------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
|                    |   |      |   |   |      |   |   |      |   |
| Risk-free interest rate |   |      | 2.51   | %      |      |   | 3.07   | %         |   |   | 3.24 | % |
| Expected dividend yield |   |      | 3.90   | %      |      |   | 3.88   | %         |   |   | 4.24 | % |
| Volatility factor       |   |      | 48.40  | %      |      |   | 41.12  | %         |   |   | 42.70 | % |
| Expected life of option |   | 5.0 years |   |   | 8.0 years |   |   | 8.0 years |   |

----

|                                           |   | 2012              |    |   | 2011                          |   |   | 2010              |   |
|------------------------------------------------|--------|-------------------|---------|--------|-------------------------------|--------|--------|-------------------|--------|
|                                           |   | Restricted Awards |    |   | Average Market Price at Grant |   |   | Restricted Awards |   |   | Average Market Price at Grant |   |   | Restricted Awards |   |   | Average Market Price at Grant |   |
|                                           |   |              |    |   |                          |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Outstanding at January 1                       |   |              | 108,209 |   |                          |   |   |              |   | 96,060 |   |   |   |   |   |   | 88,109 |   |   |   |   |
|      Granted          |   |              | 23,336  |   |                          | $      | 34.94  |              |   |   | 14,050 |   |   | $ | 35.08 |   |   |   | 13,750 |   |   | $ | 31.47 |   |
|      Forfeited/Vested |   |              | (14,834 | )      |                          |   |   |              |   |   | (1,901 | ) |   |   |   |   |   |   | (5,799 | ) |   |   |   |   |
| Outstanding at December 31                     |   |              | 116,711 |   |                          |   |   |              |   |   | 108,209 |   |   |   |   |   |   |   | 96,060 |   |   |   |   |   |

|                                                                     |   | Pension Benefits |    |
|--------------------------------------------------------------------------|--------|------------------|---------|
| (in thousands)                                                           |   | 2012             |    |   | 2011 |   |
|                                                                     |   |             |    |   |   |   |
| Change in fair value of plan assets:                                     |   |             |    |   |   |   |
| Fair value at beginning of measurement period                            |   | $                | 8,952   |   |   | $ | 9,668 |   |
| Actual gain (loss) on plan assets                                        |   |             | 734     |   |   |   | (379 | ) |
| Contributions                                                            |   |             | 736     |   |   |   | 400 |   |
| Benefits paid                                                            |   |             | (759    | ) |   |   | (737 | ) |
| Fair value at end of measurement period                                  |   |             | 9,663   |   |   |   | 8,952 |   |
|                                                                     |   |             |    |   |   |   |   |   |
| Change in benefit obligation:                                            |   |             |    |   |   |   |   |   |
|    Benefit obligation at beginning of measurement period  |   |             | (12,943 | ) |   |   | (12,202 | ) |
| Interest cost                                                            |   |             | (635    | ) |   |   | (650 | ) |
| Actuarial loss                                                           |   |             | (1,008  | ) |   |   | (828 | ) |
| Benefits paid                                                            |   |             | 759     |   |   |   | 737 |   |
| Benefit obligation at end of measurement period                          |   |             | (13,827 | ) |   |   | (12,943 | ) |
| Funded status                                                            |   |             | (4,164  | ) |   |   | (3,991 | ) |
|                                                                     |   |             |    |   |   |   |   |   |
| Unrecognized net actuarial gain                                          |   |             | 8,024   |   |   |   | 7,637 |   |
| Other comprehensive loss                                                 |   |             | (8,024  | ) |   |   | (7,637 | ) |
| Accrued Benefit Cost                                                     |   | $                | (4,164  | ) |   | $ | (3,991 | ) |
|                                                                     |   |             |    |   |   |   |   |   |
| Weighted-average assumptions for balance sheet liability at end of year: |   |             |    |   |   |   |   |   |
| Discount rate                                                            |   |             | 4.31    | % |   |   | 5.06 | % |
| Expected long-term rate of return                                        |   |             | 7.46    | % |   |   | 8.00 | % |
|                                                                     |   |             |    |   |   |   |   |   |
| Weighted-average assumptions for benefit cost at beginning of year:      |   |             |    |   |   |   |   |   |
| Discount rate                                                            |   |             | 5.06    | % |   |   | 5.50 | % |
| Expected long-term rate of return                                        |   |             | 8.00    | % |   |   | 8.00 | % |

----

|                                |   | Pension Benefits |   |
|-------------------------------------|--------|------------------|--------|
| (in thousands)                      |   | 2012             |   |   | 2011 |   |   | 2010 |   |
|                                |   |             |   |   |   |   |   |   |   |
| Components of net periodic benefit: |   |             |   |   |   |   |   |   |   |
| Interest cost                       |   | $                | 635    |   |   | $ | 650 |   |   | $ | 674 |   |
| Expected return on plan assets      |   |             | (810   | ) |   |   | (811 | ) |   |   | (812 | ) |
| Net amortization and deferral       |   |             | 696    |   |   |   | 547 |   |   |   | 370 |   |
| Net Periodic Pension Cost           |   | $                | 521    |   |   | $ | 386 |   |   | $ | 232 |   |

|              |   | Target     |   |   | Allowable- |   |   | Percentage of Plan Assets |   |
|-------------------|--------|------------|--------|--------|------------|--------|--------|---------------------------|--------|
|              |   | Allocation |   |   | Allocation |   |   | At December 31            |   |
|              |   | 2012       |   |   | Range      |   |   | 2012                      |   |   | 2011 |   |
|              |   |       |   |   |       |   |   |                      |   |   |   |   |
| Equity securities |   |       | 60     | %      |       |   | 40-80  | %                         |   |   | 39 | % |   |   | 54 | % |
| Debt securities   |   |       | 30     | %      |       |   | 20-40  | %                         |   |   | 36 | % |   |   | 35 | % |
| Other             |   |       | 10     | %      |       |   | 3-10   | %                         |   |   | 25 | % |   |   | 11 | % |
| Total             |   |       |   |   |       |   |   |                      |   |   | 100 | % |   |   | 100 | % |

----

| (in thousands)             |   | Total  |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|----------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| 2012                       |   |   |   |   |    |   |   |    |   |   |    |   |
| Cash and cash equivalents  |   | $      | 2,023  |   |    | $      | 2,023  |    |   | $      | -       |   |   | $ | - |   |
| Mutual funds               |   |   | 2,220  |   |    |   | 1,139  |    |   |   | 1,081   |   |   |   | - |   |
| Common stocks              |   |   | 3,034  |   |    |   | 2,552  |    |   |   | 482     |   |   |   | - |   |
| Mortgage-backed securities |   |   | 524    |   |    |   | -      |    |   |   | 524     |   |   |   | - |   |
| Government and GSE bonds   |   |   | 1,344  |   |    |   | -      |    |   |   | 1,344   |   |   |   | - |   |
| Corporate Bonds            |   |   | 518    |   |    |   | -      |    |   |   | 518     |   |   |   | - |   |
| Total                      |   | $      | 9,663  |   |    | $      | 5,714  |    |   | $      | 3,949   |   |   | $ | - |   |
|                       |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| 2011                       |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Cash and cash equivalents  |   | $      | 430    |   |    | $      | 430    |    |   | $      | -       |   |   | $ | - |   |
| Mutual funds               |   |   | 2,075  |   |    |   | 1,062  |    |   |   | 1,013   |   |   |   | - |   |
| Common stocks              |   |   | 4,320  |   |    |   | 3,879  |    |   |   | 441     |   |   |   | - |   |
| Mortgage-backed securities |   |   | 445    |   |    |   | -      |    |   |   | 445     |   |   |   | - |   |
| Government and GSE bonds   |   |   | 1,242  |   |    |   | -      |    |   |   | 1,242   |   |   |   | - |   |
| Corporate Bonds            |   |   | 440    |   |    |   | -      |    |   |   | 440     |   |   |   | - |   |
| Total                      |   | $      | 8,952  |   |    | $      | 5,371  |    |   | $      | 3,581   |   |   | $ | - |   |

| Plan Year Ending December 31 |   | Expected Benefits to be Paid |   |
|------------------------------|--------|------------------------------|--------|
| (in thousands)               |   |                         |   |
|                         |   |                         |   |
| 2013                         |   | $                            | 836    |   |
| 2014                         |   |                         | 839    |   |
| 2015                         |   |                         | 845    |   |
| 2016                         |   |                         | 853    |   |
| 2017                         |   |                         | 860    |   |
| 2018 through 2022            |   |                         | 4,411  |   |

----

| (In thousands)                                       |   | December 31, 2012 |    |   | December 31, 2011 |   |
|------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                                 |   |              |    |   |              |   |
| Commitments to extend credit:                        |   |              |    |   |              |   |
|      Home equity lines      |   | $                 | 156,274 |   |              | $      | 143,856 |   |
|      Commercial real estate |   |              | 33,869  |   |              |   | 29,995 |   |
|      Other commitments      |   |              | 171,670 |   |              |   | 185,602 |   |
| Standby letters of credit                            |   |              | 16,743  |   |              |   | 20,110 |   |
| Commercial letters of credit                         |   |              | 425     |   |              |   | 412 |   |

----

----

|                                      |   |   |    |   |   |   |   |        |   |   |    |   |   |   |   |   |   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|--------|-------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
|                                      |   |   |    |   |   |   |   |        |   |   |    |   |   | Well   |   |   |   |   |
|                                      |   | 2012   |    |   | 2011   |   |   | Capitalized |   |   | Minimum |   |
| (dollars in thousands)                    |   | Amount |    |   | Ratio  |   |   | Amount      |   |   | Ratio   |   |   | Ratio  |   |   | Ratio  |   |
|                                      |   |   |    |   |   |   |   |        |   |   |    |   |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets):  |   |   |    |   |   |   |   |        |   |   |    |   |   |   |   |   |   |   |
| Consolidated                              |   |   | 298,321 |   |   |   | 13.9   | %           |   |   | 288,156 |   |   |   | 14.1   | %      |   |   | 10.0 | % |   |   | 8.0 | % |
| City National                             |   |   | 264,126 |   |   |   | 12.4   | %           |   |   | 262,891 |   |   |   | 13.0   | %      |   |   | 10.0 | % |   |   | 8.0 | % |
|                                      |   |   |    |   |   |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital (to Risk-Weighted Assets): |   |   |    |   |   |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                              |   |   | 279,106 |   |   |   | 13.0   | %           |   |   | 268,707 |   |   |   | 13.1   | %      |   |   | 6.0 | % |   |   | 4.0 | % |
| City National                             |   |   | 245,273 |   |   |   | 11.5   | %           |   |   | 243,442 |   |   |   | 12.0   | %      |   |   | 6.0 | % |   |   | 4.0 | % |
|                                      |   |   |    |   |   |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital (to Average Assets):       |   |   |    |   |   |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                              |   |   | 279,106 |   |   |   | 9.8    | %           |   |   | 268,707 |   |   |   | 10.2   | %      |   |   | 5.0 | % |   |   | 4.0 | % |
| City National                             |   |   | 245,273 |   |   |   | 8.7    | %           |   |   | 243,442 |   |   |   | 9.3    | %      |   |   | 5.0 | % |   |   | 4.0 | % |

----

----

| (in thousands)                                                                       |   | Total  |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total Gains (Losses) |   |
|--------------------------------------------------------------------------------------|--------|--------|---------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|----------------------|--------|
| December 31, 2012                                                                    |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |
| Recurring fair value measurements                                                    |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |
| Financial Assets                                                                     |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |
|      U.S. Government agencies                               |   | $      | 3,888   |   |    | $      | -      |    |   | $      | 3,888   |   |   | $                    | -      |   |   |   |   |
|      Obligations of states and political subdivisions       |   |   | 48,929  |   |    |   | -      |    |   |   | 48,929  |   |   |                 | -      |   |   |   |   |
|      Mortgage-backed securities:                            |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |
|           U.S. Government agencies |   |   | 286,482 |   |    |   | -      |    |   |   | 286,482 |   |   |                 | -      |   |   |   |   |
|           Private label            |   |   | 3,272   |   |    |   | -      |    |   |   | 3,272   |   |   |                 | -      |   |   |   |   |
|      Trust preferred securities                             |   |   | 12,645  |   |    |   | -      |    |   |   | 10,260  |   |   |                 | 2,385  |   |   |   |   |
|      Corporate securities                                   |   |   | 15,947  |   |    |   | -      |    |   |   | 15,947  |   |   |                 | -      |   |   |   |   |
|      Marketable equity securities                           |   |   | 4,185   |   |    |   | 4,185  |    |   |   | -       |   |   |                 | -      |   |   |   |   |
|      Investment funds                                       |   |   | 1,774   |   |    |   | 1,774  |    |   |   | -       |   |   |                 | -      |   |   |   |   |
|      Derivative assets                                      |   |   | 14,012  |   |    |   | -      |    |   |   | 14,012  |   |   |                 | -      |   |   |   |   |
|                                                                                 |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |
| Financial Liabilities                                                                |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |
|      Derivative liabilities                                 |   |   | 14,012  |   |    |   | -      |    |   |   | 14,012  |   |   |                 | -      |   |   |   |   |
|                                                                                 |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |
| Nonrecurring fair value measurements                                                 |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |
| Financial Assets                                                                     |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |
|      Impaired loans                                         |   | $      | 10,679  |   |    | $      | -      |    |   | $      | 10,679  |   |   | $                    | -      |   |   | $ | - |   |
|      Other Assets                                           |   |   | 1,000   |   |    |   | -      |    |   |   | 1,000   |   |   |                 | -      |   |   |   | (288 | ) |
|                                                                                 |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
| December 31, 2011                                                                    |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
| Recurring fair value measurements                                                    |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
| Financial Assets                                                                     |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
|      U.S. Government agencies                               |   | $      | 6,041   |   |    | $      | -      |    |   | $      | 6,041   |   |   | $                    | -      |   |   |   |   |   |
|      Obligations of states and political subdivisions       |   |   | 56,802  |   |    |   | -      |    |   |   | 56,802  |   |   |                 | -      |   |   |   |   |   |
|      Mortgage-backed securities:                            |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
|      U.S. Government agencies                               |   |   | 227,613 |   |    |   | -      |    |   |   | 227,613 |   |   |                 | -      |   |   |   |   |   |
|      Private label                                          |   |   | 5,156   |   |    |   | -      |    |   |   | 5,156   |   |   |                 | -      |   |   |   |   |   |
|      Trust preferred securities                             |   |   | 45,157  |   |    |   | -      |    |   |   | 43,175  |   |   |                 | 1,982  |   |   |   |   |   |
|      Corporate securities                                   |   |   | 14,398  |   |    |   | -      |    |   |   | 14,398  |   |   |                 | -      |   |   |   |   |   |
|      Marketable equity securities                           |   |   | 3,853   |   |    |   | 3,853  |    |   |   | -       |   |   |                 | -      |   |   |   |   |   |
|      Investment funds                                       |   |   | 1,763   |   |    |   | 1,763  |    |   |   | -       |   |   |                 | -      |   |   |   |   |   |
|      Derivative assets                                      |   |   | 11,541  |   |    |   | -      |    |   |   | 11,541  |   |   |                 | -      |   |   |   |   |   |
|                                                                                 |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
| Financial Liabilities                                                                |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
|      Derivative liabilities                                 |   |   | 11,541  |   |    |   | -      |    |   |   | 11,541  |   |   |                 | -      |   |   |   |   |   |
|                                                                                 |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
| Nonrecurring fair value measurements                                                 |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
| Financial Assets                                                                     |   |   |    |   |    |   |   |    |   |   |    |   |   |                 |   |   |   |   |   |   |
|      Impaired loans                                         |   | $      | 16,166  |   |    | $      | -      |    |   | $      | 16,085  |   |   | $                    | 81     |   |   | $ | 2,701 |   |

|                                                                                       |   | December 31, |   |
|--------------------------------------------------------------------------------------------|--------|--------------|--------|
| (In thousands)                                                                             |   | 2012         |   |   | 2011 |   |
|                                                                                       |   |         |   |   |   |   |
| Beginning balance                                                                          |   | $            | 1,982  |   |   | $ | 2,504 |   |
|         Impairment losses on investment securities |   |         | (576   | ) |   |   | (355 | ) |
|         Included in other comprehensive income     |   |         | 979    |   |   |   | 208 |   |
|         Dispositions                               |   |         | -      |   |   |   | (375 | ) |
|     Transfers into Level 3                                             |   |         | -      |   |   |   | - |   |
| Ending Balance                                                                             |   | $            | 2,385  |   |   | $ | 1,982 |   |

----

|                                                |   | December 31, |   |
|-----------------------------------------------------|--------|--------------|--------|
|                                                |   | 2012         |   |   | 2011 |   |
| (In thousands)                                      |   | Level 2      |   |   | Level 2 |   |
|                                                |   |         |   |   |   |   |
| Carrying value of impaired loans before allocations |   | $            | 10,679 |   |   | $ | 18,832 |   |
| Specific valuation allowance allocations            |   |         | -      |   |   |   | (2,666 | ) |
|    Fair value                        |   | $            | 10,679 |   |   | $ | 16,166 |   |

| (In thousands)                                                                                           |   | 2012   |   |   | 2011   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                     |   |   |   |   |   |   |
| Beginning Balance, January 1                                                                             |   | $      | 7,948  |   |   | $      | 9,316 |   |
| OREO remeasured at initial recognition:                                                                  |   |   |   |   |   |   |   |   |
|      Carrying value of foreclosed assets prior to remeasurement                 |   |   | 5,685  |   |   |   | 6,096 |   |
|      Charge-offs recognized in the allowance for loan losses                    |   |   | (1,656 | )      |   |   | (1,436 | ) |
|          Fair value                                         |   |   | 4,029  |   |   |   | 4,660 |   |
| OREO remeasured subsequent to initial recognition:                                                       |   |   |   |   |   |   |   |   |
|      Carrying value of foreclosed assets prior to remeasurement                 |   |   | 3,659  |   |   |   | 979 |   |
|      Fair value                                                                 |   |   | 2,638  |   |   |   | 783 |   |
|          Write-downs included in other non-interest expense |   |   | (1,021 | )      |   |   | (196 | ) |
| Acquired                                                                                                 |   |   | 728    |   |   |   | - |   |
| Disposals                                                                                                |   |   | (3,522 | )      |   |   | (5,832 | ) |
| Ending Balance, December 31                                                                              |   | $      | 8,162  |   |   | $      | 7,948 |   |

----

----

| (In thousands)                |   | Carrying Amount |      |   | Fair Value |   |      | Level 1 |   |   | Level 2   |   |   | Level 3 |    |
|-------------------------------|--------|-----------------|-----------|--------|------------|--------|-----------|---------|--------|--------|-----------|--------|--------|---------|---------|
| December 31, 2012             |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |
| Assets:                       |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |
| Cash and cash equivalents     |   | $               | 84,994    |   |       | $      | 84,994    |    |   | $      | 84,994    |   |   | $       | -       |   |   | $ | - |   |
| Securities available-for-sale |   |            | 377,122   |   |       |   | 377,122   |    |   |   | 5,959     |   |   |    | 368,778 |   |   |   | 2,385 |   |
| Securities held-to-maturity   |   |            | 13,454    |   |       |   | 13,861    |    |   |   | -         |   |   |    | 13,861  |   |   |   | - |   |
| Other securities              |   |            | 11,463    |   |       |   | 11,463    |    |   |   | -         |   |   |    | 11,463  |   |   |   | - |   |
| Net loans                     |   |            | 2,127,560 |   |       |   | 2,162,856 |    |   |   | -         |   |   |    | -       |   |   |   | 2,162,856 |   |
| Accrued interest receivable   |   |            | 6,692     |   |       |   | 6,692     |    |   |   | 6,692     |   |   |    | -       |   |   |   | - |   |
| Derivative assets             |   |            | 14,012    |   |       |   | 14,012    |    |   |   | -         |   |   |    | 14,012  |   |   |   | - |   |
|                          |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |   |   |   |   |   |
| Liabilities:                  |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |   |   |   |   |   |
| Deposits                      |   |            | 2,409,316 |   |       |   | 2,381,495 |    |   |   | 1,447,954 |   |   |    | 933,541 |   |   |   | - |   |
| Short-term debt               |   |            | 114,646   |   |       |   | 114,648   |    |   |   | -         |   |   |    | 114,648 |   |   |   | - |   |
| Long-term debt                |   |            | 16,495    |   |       |   | 16,462    |    |   |   | -         |   |   |    | 16,462  |   |   |   | - |   |
| Derivative liabilities        |   |            | 14,012    |   |       |   | 14,012    |    |   |   |      |   |   |    | 14,012  |   |   |   |   |   |
|                          |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |   |   |   |   |   |
| December 31, 2011             |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |   |   |   |   |   |
| Assets:                       |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |   |   |   |   |   |
| Cash and cash equivalents     |   | $               | 146,399   |   |       | $      | 146,399   |    |   | $      | 146,399   |   |   | $       | -       |   |   | $ | - |   |
| Securities available-for-sale |   |            | 360,783   |   |       |   | 360,783   |    |   |   | 5,616     |   |   |    | 353,185 |   |   |   | 1,982 |   |
| Securities held-to-maturity   |   |            | 23,458    |   |       |   | 23,423    |    |   |   | -         |   |   |    | 23,423  |   |   |   | - |   |
| Other securities              |   |            | 11,934    |   |       |   | 11,934    |    |   |   | -         |   |   |    | 11,934  |   |   |   | - |   |
| Net loans                     |   |            | 1,953,694 |   |       |   | 1,991,335 |    |   |   | -         |   |   |    | -       |   |   |   | 1,991,335 |   |
| Accrued interest receivable   |   |            | 7,093     |   |       |   | 7,093     |    |   |   | 7,093     |   |   |    | -       |   |   |   | - |   |
| Derivative assets             |   |            | 11,541    |   |       |   | 11,541    |    |   |   | -         |   |   |    | 11,541  |   |   |   | - |   |
|                          |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |   |   |   |   |   |
| Liabilities:                  |   |            |      |   |       |   |      |    |   |   |      |   |   |    |    |   |   |   |   |   |
| Deposits                      |   |            | 2,221,268 |   |       |   | 2,189,559 |    |   |   | 1,290,587 |   |   |    | 898,972 |   |   |   | - |   |
| Short-term debt               |   |            | 189,050   |   |       |   | 189,050   |    |   |   | -         |   |   |    | 189,050 |   |   |   |   |   |
| Long-term debt                |   |            | 16,495    |   |       |   | 16,456    |    |   |   | -         |   |   |    | 16,456  |   |   |   | - |   |
| Derivative liabilities        |   |            | 11,541    |   |       |   | 11,541    |    |   |   | -         |   |   |    | 11,541  |   |   |   | - |   |

----

|                                             |   |        |    |   |   |   |
|--------------------------------------------------|--------|-------------|---------|--------|--------|--------|
|                                             |   | December 31 |    |
| (in thousands)                                   |   | 2012        |    |   | 2011   |   |
|                                             |   |        |    |
| Assets                                           |   |        |    |   |   |   |
| Cash                                             |   |        | 14,349  |   |   |   | 2,621 |   |
| Securities available-for-sale                    |   |        | 4,186   |   |   |   | 3,852 |   |
| Investment in subsidiaries                       |   |        | 332,156 |   |   |   | 319,940 |   |
| Deferred tax asset                               |   |        | 3,247   |   |   |   | 3,785 |   |
| Fixed assets                                     |   |        | 11      |   |   |   | 12 |   |
| Other assets                                     |   |        | 2,180   |   |   |   | 2,939 |   |
| Total Assets                                     |   |        | 356,129 |   |   |   | 333,149 |   |
|                                             |   |        |    |   |   |   |   |   |
| Liabilities                                      |   |        |    |   |   |   |   |   |
| Junior subordinated debentures                   |   |        | 16,495  |   |   |   | 16,495 |   |
| Dividends payable                                |   |        | 5,192   |   |   |   | 5,177 |   |
| Accrued interest payable                         |   |        | 24      |   |   |   | 31 |   |
| Other liabilities                                |   |        | 1,144   |   |   |   | 312 |   |
| Total Liabilities                                |   |        | 22,855  |   |   |   | 22,015 |   |
|                                             |   |        |    |   |   |   |   |   |
| Shareholders’ Equity                       |   |        | 333,274 |   |   |   | 311,134 |   |
| Total Liabilities and Shareholders’ Equity |   |        | 356,129 |   |   |   | 333,149 |   |

|                                                                                                                  |   | Year Ended December 31 |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
| (in thousands)                                                                                                        |   | 2012                   |   |   | 2011 |   |   | 2010 |   |
|                                                                                                                  |   |                   |   |   |   |   |   |   |   |
| Income                                                                                                                |   |                   |   |   |   |   |   |   |   |
| Dividends from subsidiaries                                                                                           |   |                   | 41,422 |   |   |   | 44,600 |   |   |   | 17,200 |   |
| Investment securities gains                                                                                           |   |                   | 1,134  |   |   |   | - |   |   |   | - |   |
| Other income                                                                                                          |   |                   | 65     |   |   |   | 92 |   |   |   | 156 |   |
|                                                                                                                  |   |                   | 42,621 |   |   |   | 44,692 |   |   |   | 17,356 |   |
| Expenses                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                      |   |                   | 661    |   |   |   | 639 |   |   |   | 641 |   |
| Investment securities losses                                                                                          |   |                   | -      |   |   |   | 918 |   |   |   | 3,643 |   |
| Other expenses                                                                                                        |   |                   | 533    |   |   |   | 613 |   |   |   | 594 |   |
|                                                                                                                  |   |                   | 1,194  |   |   |   | 2,170 |   |   |   | 4,878 |   |
| Income Before Income Tax Benefit and Equity in Undistributed Net Income (Excess Dividends)  of Subsidiaries |   |                   | 41,427 |   |   |   | 42,522 |   |   |   | 12,478 |   |
| Income tax benefit                                                                                                    |   |                   | 2      |   |   |   | (704 | ) |   |   | (2,066 | ) |
| Income Before Equity in Undistributed Net Income (Excess Dividends)  of Subsidiaries                        |   |                   | 41,425 |   |   |   | 43,226 |   |   |   | 14,544 |   |
| Equity in undistributed net income (excess dividends) of subsidiaries                                                 |   |                   | (2,480 | ) |   |   | (2,548 | ) |   |   | 24,416 |   |
| Net Income                                                                                                            |   |                   | 38,945 |   |   |   | 40,678 |   |   |   | 38,960 |   |
|                                                                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total Comprehensive Income                                                                                            |   |                   | 41,430 |   |   |   | 39,268 |   |   |   | 39,017 |   |

----

|                                                                              |   | Year Ended December 31 |    |
|-----------------------------------------------------------------------------------|--------|------------------------|---------|
| (in thousands)                                                                    |   | 2012                   |    |   | 2011 |   |   | 2010 |   |
| Operating Activities                                                              |   |                   |    |   |   |   |   |   |   |
| Net income                                                                        |   |                   | 38,945  |   |   |   | 40,678 |   |   |   | 38,960 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                   |    |   |   |   |   |   |   |   |   |   |
| Realized investment securities losses                                             |   |                   | (1,134  | ) |   |   | 918 |   |   |   | 3,643 |   |
| Amortization and accretion                                                        |   |                   | 19      |   |   |   | 19 |   |   |   | 19 |   |
| Deferred income tax benefit                                                       |   |                   | -       |   |   |   | (363 | ) |   |   | (1,501 | ) |
| Stock based compensation                                                          |   |                   | 224     |   |   |   | - |   |   |   | - |   |
| Depreciation                                                                      |   |                   | 1       |   |   |   | 1 |   |   |   | 1 |   |
| Change in other assets                                                            |   |                   | 740     |   |   |   | 1,522 |   |   |   | (1,305 | ) |
| Change in other liabilities                                                       |   |                   | 1,136   |   |   |   | (965 | ) |   |   | 827 |   |
| Excess dividends of subsidiaries (equity in undistributed net income)             |   |                   | 2,480   |   |   |   | 2,548 |   |   |   | (24,416 | ) |
| Net Cash Provided by Operating Activities                                         |   |                   | 42,411  |   |   |   | 44,358 |   |   |   | 16,228 |   |
|                                                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Investing Activities                                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Purchases of available for sale securities                                        |   |                   | (403    | ) |   |   | (29 | ) |   |   | (248 | ) |
| Proceeds from sales of available for sale securities                              |   |                   | 2,473   |   |   |   | - |   |   |   | - |   |
| Investment in subsidiaries                                                        |   |                   | -       |   |   |   | - |   |   |   | 4,201 |   |
| Acquisition of Virginia Savings Bank                                              |   |                   | (4,672  | ) |   |   | - |   |   |   | - |   |
| Net Cash (Used in) Provided by Investing Activities                               |   |                   | (2,602  | ) |   |   | (29 | ) |   |   | 3,953 |   |
|                                                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Financing Activities                                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Dividends paid                                                                    |   |                   | (20,710 | ) |   |   | (20,628 | ) |   |   | (21,350 | ) |
| Purchases of treasury stock                                                       |   |                   | (7,915  | ) |   |   | (23,791 | ) |   |   | (12,902 | ) |
| Exercise of stock options                                                         |   |                   | 544     |   |   |   | 462 |   |   |   | 236 |   |
| Net Cash Used in Financing Activities                                             |   |                   | (28,081 | ) |   |   | (43,957 | ) |   |   | (34,016 | ) |
| Increase (decrease)  in Cash and Cash Equivalents                       |   |                   | 11,728  |   |   |   | 372 |   |   |   | (13,835 | ) |
| Cash and cash equivalents at beginning of year                                    |   |                   | 2,621   |   |   |   | 2,249 |   |   |   | 16,084 |   |
| Cash and Cash Equivalents at End of Year                                          |   |                   | 14,349  |   |   |   | 2,621 |   |   |   | 2,249 |   |

|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |
|----------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                                     |   | First   |   |   | Second  |   |   | Third   |   |   | Fourth  |   |
| (in thousands, except per share data)                    |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                                     |   |    |   |
| 2012                                                     |   |    |   |   |    |   |   |    |   |   |    |   |
| Interest income                                          |   | $       | 27,430 |   |    | $      | 27,466 |    |   | $      | 28,432  |   |   | $ | 28,884 |   |
| Taxable equivalent adjustment                            |   |    | 208    |   |    |   | 198    |    |   |   | 185     |   |   |   | 183 |   |
| Interest income (FTE)                                    |   |    | 27,638 |   |    |   | 27,664 |    |   |   | 28,617  |   |   |   | 29,067 |   |
| Interest expense                                         |   |    | 3,908  |   |    |   | 3,625  |    |   |   | 3,557   |   |   |   | 3,360 |   |
| Net interest income                                      |   |    | 23,730 |   |    |   | 24,039 |    |   |   | 25,060  |   |   |   | 25,707 |   |
| Provision for loan losses                                |   |    | 1,950  |   |    |   | 1,675  |    |   |   | 975     |   |   |   | 1,775 |   |
| Investment securities gains (losses)                     |   |    | (31    | )      |    |   | 528    |    |   |   | 458     |   |   |   | - |   |
| Noninterest income                                       |   |    | 13,149 |   |    |   | 13,262 |    |   |   | 13,621  |   |   |   | 14,266 |   |
| Noninterest expense                                      |   |    | 19,515 |   |    |   | 24,763 |    |   |   | 21,846  |   |   |   | 21,273 |   |
| Income  before income tax expense              |   |    | 15,383 |   |    |   | 11,391 |    |   |   | 16,318  |   |   |   | 16,925 |   |
| Income tax expense                                       |   |    | 5,144  |   |    |   | 3,780  |    |   |   | 5,526   |   |   |   | 5,848 |   |
| Taxable equivalent adjustment                            |   |    | 208    |   |    |   | 198    |    |   |   | 185     |   |   |   | 183 |   |
| Net income                                               |   | $       | 10,031 |   |    | $      | 7,413  |    |   | $      | 10,607  |   |   | $ | 10,894 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net earnings available to common  shareholders |   | $       | 9,955  |   |    | $      | 7,354  |    |   | $      | 10,523  |   |   | $ | 10,809 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Basic earnings  per common share               |   | $       | 0.68   |   |    | $      | 0.50   |    |   | $      | 0.71    |   |   | $ | 0.73 |   |
| Diluted earnings per common share                        |   |    | 0.67   |   |    |   | 0.50   |    |   |   | 0.71    |   |   |   | 0.73 |   |
| Average common shares outstanding:                       |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Basic                                                    |   |    | 14,679 |   |    |   | 14,680 |    |   |   | 14,751  |   |   |   | 14,755 |   |
| Diluted                                                  |   |    | 14,759 |   |    |   | 14,759 |    |   |   | 14,834  |   |   |   | 14,837 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| 2011                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Interest income                                          |   | $       | 28,754 |   |    | $      | 28,323 |    |   | $      | 28,370  |   |   | $ | 27,441 |   |
| Taxable equivalent adjustment                            |   |    | 248    |   |    |   | 240    |    |   |   | 212     |   |   |   | 215 |   |
| Interest income (FTE)                                    |   |    | 29,002 |   |    |   | 28,563 |    |   |   | 28,582  |   |   |   | 27,656 |   |
| Interest expense                                         |   |    | 5,940  |   |    |   | 5,803  |    |   |   | 4,799   |   |   |   | 4,216 |   |
| Net interest income                                      |   |    | 23,062 |   |    |   | 22,760 |    |   |   | 23,783  |   |   |   | 23,440 |   |
| Provision for loan losses                                |   |    | 1,086  |   |    |   | 1,286  |    |   |   | -       |   |   |   | 2,229 |   |
| Investment securities losses                             |   |    | -      |   |    |   | 3,128  |    |   |   | 272     |   |   |   | (917 | ) |
| Noninterest income                                       |   |    | 12,662 |   |    |   | 13,409 |    |   |   | 13,259  |   |   |   | 13,045 |   |
| Noninterest expense                                      |   |    | 19,858 |   |    |   | 22,912 |    |   |   | 19,688  |   |   |   | 18,685 |   |
| Income  before income tax expense              |   |    | 14,780 |   |    |   | 15,099 |    |   |   | 17,626  |   |   |   | 14,654 |   |
| Income tax expense                                       |   |    | 4,918  |   |    |   | 5,029  |    |   |   | 5,837   |   |   |   | 4,787 |   |
| Taxable equivalent adjustment                            |   |    | 248    |   |    |   | 240    |    |   |   | 212     |   |   |   | 215 |   |
| Net income                                               |   | $       | 9,614  |   |    | $      | 9,830  |    |   | $      | 11,577  |   |   | $ | 9,652 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net earnings available to common  shareholders |   | $       | 9,546  |   |    | $      | 9,761  |    |   | $      | 11,494  |   |   | $ | 9,582 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Basic earnings  per common share               |   | $       | 0.62   |   |    | $      | 0.65   |    |   | $      | 0.77    |   |   | $ | 0.65 |   |
| Diluted earnings per common share                        |   |    | 0.62   |   |    |   | 0.64   |    |   |   | 0.76    |   |   |   | 0.65 |   |
| Average common shares outstanding:                       |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Basic                                                    |   |    | 15,380 |   |    |   | 15,120 |    |   |   | 15,003  |   |   |   | 14,743 |   |
| Diluted                                                  |   |    | 15,462 |   |    |   | 15,193 |    |   |   | 15,071  |   |   |   | 14,814 |   |

----

|                                                      |   | For the Year Ended December 31, |   |
|-----------------------------------------------------------|--------|---------------------------------|--------|
| (In thousands, except per share data)                     |   | 2012                            |   |   | 2011 |   |   | 2010 |   |
|                                                      |   |                            |   |   |   |   |   |   |   |
| Distributed earnings allocated to  common stock |   | $                               | 20,603 |   |   | $ | 20,102 |   |   | $ | 20,956 |   |
| Undistributed earnings allocated to common stock          |   |                            | 18,034 |   |   |   | 20,280 |   |   |   | 17,767 |   |
| Net earnings allocated to common shareholders             |   | $                               | 38,637 |   |   | $ | 40,382 |   |   | $ | 38,723 |   |
|                                                      |   |                            |   |   |   |   |   |   |   |   |   |   |
| Average shares outstanding                                |   |                            | 14,714 |   |   |   | 15,055 |   |   |   | 15,589 |   |
|                                                      |   |                            |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                            |   |                            |   |   |   |   |   |   |   |   |   |   |
|      Employee stock options      |   |                            | 82     |   |   |   | 75 |   |   |   | 62 |   |
|                                                      |   |                            |   |   |   |   |   |   |   |   |   |   |
| Shares for diluted earnings per share                     |   |                            | 14,796 |   |   |   | 15,130 |   |   |   | 15,651 |   |
|                                                      |   |                            |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                  |   | $                               | 2.63   |   |   | $ | 2.68 |   |   | $ | 2.48 |   |
| Diluted earnings per share                                |   | $                               | 2.61   |   |   | $ | 2.67 |   |   | $ | 2.47 |   |

----