----

----

| [X]                  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|----------------------|------------------------------------------------------------------------------------------|
|                 | For the quarterly period ended March 31, 2011                                            |
|                 |                                                                                     |
|                 | Or                                                                                       |
|                 |                                                                                     |
| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                 | For the transition period from _____________ to _____________                            |
|                 |                                                                                     |

| Kentucky                                                                        | 61-0979818                      |
|---------------------------------------------------------------------------------|---------------------------------|
| (State or other jurisdiction of incorporation or organization)                  | IRS Employer Identification No. |
|                                                                            |                            |
| 346 North Mayo TrailPikeville, Kentucky(address of principal executive offices) | 41501(Zip Code)                 |

| Yes  ü | No |
|-----------------------|----|

| Yes | No |
|-----|----|

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

| Yes |    No ü |
|-----|-----------------------------|

----

----

----

----

| (dollars in thousands)                                                                                                        |   | (unaudited)March 312011 |      |   | December 312010 |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|-----------------|--------|
| Assets:                                                                                                                       |   |                    |      |   |            |   |
| Cash and due from banks                                                                                                       |   | $                       | 71,545    |   |            | $      | 62,559 |   |
| Interest bearing deposits                                                                                                     |   |                    | 33,982    |   |            |   | 70,086 |   |
| Federal funds sold                                                                                                            |   |                    | 99,420    |   |            |   | 26,338 |   |
| Cash and cash equivalents                                                                                                     |   |                    | 204,947   |   |            |   | 158,983 |   |
|                                                                                                                          |   |                    |      |   |            |   |   |   |
| Certificates of deposits in other banks                                                                                       |   |                    | 10,789    |   |            |   | 14,762 |   |
| Securities available-for-sale at fair value (amortized cost of $403,286 and $332,658, respectively)                           |   |                    | 410,330   |   |            |   | 338,675 |   |
| Securities held-to-maturity at amortized cost (fair value of $1,664 and $1,662, respectively)                                 |   |                    | 1,662     |   |            |   | 1,662 |   |
| Loans held for sale                                                                                                           |   |                    | 952       |   |            |   | 455 |   |
|                                                                                                                          |   |                    |      |   |            |   |   |   |
| Loans                                                                                                                         |   |                    | 2,586,048 |   |            |   | 2,605,180 |   |
| Allowance for loan losses                                                                                                     |   |                    | (35,152   | )      |            |   | (34,805 | ) |
| Net loans                                                                                                                     |   |                    | 2,550,896 |   |            |   | 2,570,375 |   |
|                                                                                                                          |   |                    |      |   |            |   |   |   |
| Premises and equipment, net                                                                                                   |   |                    | 56,174    |   |            |   | 55,343 |   |
| Federal Home Loan Bank stock                                                                                                  |   |                    | 25,673    |   |            |   | 25,673 |   |
| Federal Reserve Bank stock                                                                                                    |   |                    | 4,468     |   |            |   | 4,434 |   |
| Goodwill                                                                                                                      |   |                    | 65,490    |   |            |   | 65,499 |   |
| Core deposit intangible (net of accumulated amortization of $7,339 and $7,260, respectively)                                  |   |                    | 1,276     |   |            |   | 1,342 |   |
| Bank owned life insurance                                                                                                     |   |                    | 40,028    |   |            |   | 39,697 |   |
| Mortgage servicing rights                                                                                                     |   |                    | 3,251     |   |            |   | 3,161 |   |
| Other real estate owned                                                                                                       |   |                    | 47,667    |   |            |   | 42,935 |   |
| Other assets                                                                                                                  |   |                    | 35,668    |   |            |   | 32,876 |   |
| Total assets                                                                                                                  |   | $                       | 3,459,271 |   |            | $      | 3,355,872 |   |
|                                                                                                                          |   |                    |      |   |            |   |   |   |
| Liabilities and shareholders’ equity:                                                                                   |   |                    |      |   |            |   |   |   |
| Deposits:                                                                                                                     |   |                    |      |   |            |   |   |   |
| Noninterest bearing                                                                                                           |   | $                       | 563,544   |   |            | $      | 525,478 |   |
| Interest bearing                                                                                                              |   |                    | 2,228,691 |   |            |   | 2,180,639 |   |
| Total deposits                                                                                                                |   |                    | 2,792,235 |   |            |   | 2,706,117 |   |
|                                                                                                                          |   |                    |      |   |            |   |   |   |
| Repurchase agreements                                                                                                         |   |                    | 194,472   |   |            |   | 188,275 |   |
| Federal funds purchased and other short-term borrowings                                                                       |   |                    | 14,585    |   |            |   | 9,680 |   |
| Advances from Federal Home Loan Bank                                                                                          |   |                    | 21,759    |   |            |   | 21,238 |   |
| Long-term debt                                                                                                                |   |                    | 61,341    |   |            |   | 61,341 |   |
| Other liabilities                                                                                                             |   |                    | 30,367    |   |            |   | 30,583 |   |
| Total liabilities                                                                                                             |   |                    | 3,114,759 |   |            |   | 3,017,234 |   |
|                                                                                                                          |   |                    |      |   |            |   |   |   |
| Shareholders’ equity:                                                                                                   |   |                    |      |   |            |   |   |   |
| Preferred stock, 300,000 shares authorized and unissued                                                                       |   |                    | -         |   |            |   | - |   |
| Common stock, $5 par value, shares authorized 25,000,000; shares outstanding 2011 – 15,394,892; 2010 – 15,334,410 |   |                    | 76,483    |   |            |   | 76,408 |   |
| Capital surplus                                                                                                               |   |                    | 155,371   |   |            |   | 154,880 |   |
| Retained earnings                                                                                                             |   |                    | 108,079   |   |            |   | 103,439 |   |
| Accumulated other comprehensive income, net of tax                                                                            |   |                    | 4,579     |   |            |   | 3,911 |   |
| Total shareholders’ equity                                                                                              |   |                    | 344,512   |   |            |   | 338,638 |   |
|                                                                                                                          |   |                    |      |   |            |   |   |   |
| Total liabilities and shareholders’ equity                                                                              |   | $                       | 3,459,271 |   |            | $      | 3,355,872 |   |

----

|                                                                       |   | Three Months Ended |   |
|----------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                       |   | March 31           |   |
| (in thousands except per share data)                                       |   | 2011               |   |   | 2010 |   |
|                                                                       |   |               |   |   |   |   |
| Interest income:                                                           |   |               |   |   |   |   |
| Interest and fees on loans, including loans held for sale                  |   | $                  | 36,686 |   |   | $ | 35,151 |   |
| Interest and dividends on securities                                       |   |               |   |   |   |   |   |   |
| Taxable                                                                    |   |               | 2,282  |   |   |   | 2,214 |   |
| Tax exempt                                                                 |   |               | 396    |   |   |   | 424 |   |
| Interest and dividends on Federal Reserve and Federal Home Loan Bank stock |   |               | 356    |   |   |   | 619 |   |
| Other, including interest on federal funds sold                            |   |               | 140    |   |   |   | 89 |   |
| Total interest income                                                      |   |               | 39,860 |   |   |   | 38,497 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Interest expense:                                                          |   |               |   |   |   |   |   |   |
| Interest on deposits                                                       |   |               | 5,830  |   |   |   | 7,596 |   |
| Interest on repurchase agreements and other short-term borrowings          |   |               | 428    |   |   |   | 535 |   |
| Interest on advances from Federal Home Loan Bank                           |   |               | 28     |   |   |   | 21 |   |
| Interest on long-term debt                                                 |   |               | 1,000  |   |   |   | 1,000 |   |
| Total interest expense                                                     |   |               | 7,286  |   |   |   | 9,152 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Net interest income                                                        |   |               | 32,574 |   |   |   | 29,345 |   |
| Provision for loan losses                                                  |   |               | 4,387  |   |   |   | 5,722 |   |
| Net interest income after provision for loan losses                        |   |               | 28,187 |   |   |   | 23,623 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Noninterest income:                                                        |   |               |   |   |   |   |   |   |
| Service charges on deposit accounts                                        |   |               | 5,880  |   |   |   | 5,297 |   |
| Gains on sales of loans, net                                               |   |               | 381    |   |   |   | 442 |   |
| Trust income                                                               |   |               | 1,616  |   |   |   | 1,424 |   |
| Loan related fees                                                          |   |               | 883    |   |   |   | 840 |   |
| Bank owned life insurance                                                  |   |               | 410    |   |   |   | 405 |   |
| Other noninterest income                                                   |   |               | 1,568  |   |   |   | 1,333 |   |
| Total noninterest income                                                   |   |               | 10,738 |   |   |   | 9,741 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Noninterest expense:                                                       |   |               |   |   |   |   |   |   |
| Officer salaries and employee benefits                                     |   |               | 2,173  |   |   |   | 1,902 |   |
| Other salaries and employee benefits                                       |   |               | 9,911  |   |   |   | 9,543 |   |
| Occupancy, net                                                             |   |               | 2,097  |   |   |   | 1,741 |   |
| Equipment                                                                  |   |               | 868    |   |   |   | 983 |   |
| Data processing                                                            |   |               | 1,792  |   |   |   | 1,586 |   |
| Bank franchise tax                                                         |   |               | 1,164  |   |   |   | 978 |   |
| Legal fees                                                                 |   |               | 930    |   |   |   | 593 |   |
| Professional fees                                                          |   |               | 406    |   |   |   | 231 |   |
| FDIC insurance                                                             |   |               | 1,124  |   |   |   | 999 |   |
| Other real estate owned provision and expense                              |   |               | 846    |   |   |   | 872 |   |
| Other noninterest expense                                                  |   |               | 5,236  |   |   |   | 4,013 |   |
| Total noninterest expense                                                  |   |               | 26,547 |   |   |   | 23,441 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Income before income taxes                                                 |   |               | 12,378 |   |   |   | 9,923 |   |
| Income taxes                                                               |   |               | 3,074  |   |   |   | 3,132 |   |
| Net income                                                                 |   |               | 9,304  |   |   |   | 6,791 |   |
| Other comprehensive income, net of tax:                                    |   |               |   |   |   |   |   |   |
| Unrealized holding gains on securities available-for-sale                  |   |               | 668    |   |   |   | 317 |   |
| Comprehensive income                                                       |   | $                  | 9,972  |   |   | $ | 7,108 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Basic earnings per share                                                   |   | $                  | 0.61   |   |   | $ | 0.45 |   |
| Diluted earnings per share                                                 |   | $                  | 0.61   |   |   | $ | 0.45 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Weighted average shares outstanding-basic                                  |   |               | 15,294 |   |   |   | 15,202 |   |
| Weighted average shares outstanding-diluted                                |   |               | 15,324 |   |   |   | 15,235 |   |
|                                                                       |   |               |   |   |   |   |   |   |
| Dividends declared per share                                               |   | $                  | 0.305  |   |   | $ | 0.30 |   |

----

|                                                                                           |   | Three Months Ended |    |
|------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                           |   | March 31           |    |
| (in thousands)                                                                                 |   | 2011               |    |   | 2010 |   |
|                                                                                           |   |               |    |   |   |   |
| Cash flows from operating activities:                                                          |   |               |    |   |   |   |
| Net income                                                                                     |   | $                  | 9,304   |   |   | $ | 6,791 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:              |   |               |    |   |   |   |   |   |
| Depreciation and amortization                                                                  |   |               | 1,007   |   |   |   | 1,169 |   |
| Deferred taxes                                                                                 |   |               | (337    | ) |   |   | (193 | ) |
| Stock-based compensation                                                                       |   |               | 154     |   |   |   | 134 |   |
| Excess tax benefits of stock-based compensation                                                |   |               | 16      |   |   |   | 40 |   |
| Dividends on restricted stock                                                                  |   |               | 30      |   |   |   | 19 |   |
| Provision for loan and other real estate losses                                                |   |               | 4,805   |   |   |   | 6,051 |   |
| Gains on sale of mortgage loans held for sale                                                  |   |               | (381    | ) |   |   | (442 | ) |
| (Gains)/losses on sale of assets, net                                                          |   |               | 37      |   |   |   | (19 | ) |
| Proceeds from sale of mortgage loans held for sale                                             |   |               | 18,181  |   |   |   | 20,963 |   |
| Funding of mortgage loans held for sale                                                        |   |               | (18,296 | ) |   |   | (19,033 | ) |
| Amortization of securities premiums and discounts, net                                         |   |               | 656     |   |   |   | 451 |   |
| Change in cash surrender value of bank owned life insurance                                    |   |               | (332    | ) |   |   | (347 | ) |
| Mortgage servicing rights:                                                                     |   |               |    |   |   |   |   |   |
| Fair value adjustments                                                                         |   |               | 46      |   |   |   | 127 |   |
| New servicing assets created                                                                   |   |               | (136    | ) |   |   | (163 | ) |
| Changes in:                                                                                    |   |               |    |   |   |   |   |   |
| Other assets                                                                                   |   |               | (2,785  | ) |   |   | 858 |   |
| Other liabilities                                                                              |   |               | (254    | ) |   |   | (258 | ) |
| Net cash provided by operating activities                                                      |   |               | 11,715  |   |   |   | 16,148 |   |
|                                                                                           |   |               |    |   |   |   |   |   |
| Cash flows from investing activities:                                                          |   |               |    |   |   |   |   |   |
| Certificates of deposit in other banks:                                                        |   |               |    |   |   |   |   |   |
| Purchase of certificates of deposit                                                            |   |               | 0       |   |   |   | (5,177 | ) |
| Maturity of certificates of deposit                                                            |   |               | 3,973   |   |   |   | 0 |   |
| Securities available-for-sale (AFS):                                                           |   |               |    |   |   |   |   |   |
| Purchase of AFS securities                                                                     |   |               | (90,186 | ) |   |   | (65,939 | ) |
| Proceeds from prepayments and maturities of AFS securities                                     |   |               | 18,902  |   |   |   | 25,175 |   |
| Securities held-to-maturity (HTM):                                                             |   |               |    |   |   |   |   |   |
| Purchase of HTM securities                                                                     |   |               | 0       |   |   |   | (480 | ) |
| Proceeds from prepayments and maturities of HTM securities                                     |   |               | 0       |   |   |   | 4,525 |   |
| Change in loans, net                                                                           |   |               | 8,752   |   |   |   | 411 |   |
| Purchase of premises and equipment                                                             |   |               | (1,774  | ) |   |   | (927 | ) |
| Proceeds from sale of premises and equipment                                                   |   |               | 0       |   |   |   | 1 |   |
| Additional investment in Federal Reserve Bank stock                                            |   |               | (34     | ) |   |   | (4 | ) |
| Proceeds from sale of other real estate and other repossessed assets                           |   |               | 1,169   |   |   |   | 1,415 |   |
| Additional investment in other real estate and other repossessed assets                        |   |               | (14     | ) |   |   | (52 | ) |
| Net cash used in investing activities                                                          |   |               | (59,212 | ) |   |   | (41,052 | ) |
|                                                                                           |   |               |    |   |   |   |   |   |
| Cash flows from financing activities:                                                          |   |               |    |   |   |   |   |   |
| Change in deposits, net                                                                        |   |               | 86,118  |   |   |   | 68,025 |   |
| Change in repurchase agreements, federal funds purchased, and other short-term borrowings, net |   |               | 11,102  |   |   |   | 11,693 |   |
| Proceeds from Federal Home Loan Bank advances                                                  |   |               | 570     |   |   |   | 0 |   |
| Payments on advances from Federal Home Loan Bank                                               |   |               | (49     | ) |   |   | (429 | ) |
| Issuance of common stock                                                                       |   |               | 396     |   |   |   | 681 |   |
| Excess tax benefits of stock-based compensation                                                |   |               | (16     | ) |   |   | (40 | ) |
| Dividends paid                                                                                 |   |               | (4,660  | ) |   |   | (4,555 | ) |
| Net cash provided by financing activities                                                      |   |               | 93,461  |   |   |   | 75,375 |   |
| Net increase in cash and cash equivalents                                                      |   |               | 45,964  |   |   |   | 50,471 |   |
| Cash and cash equivalents at beginning of period                                               |   |               | 158,983 |   |   |   | 142,129 |   |
| Cash and cash equivalents at end of period                                                     |   | $                  | 204,947 |   |   | $ | 192,600 |   |
|                                                                                           |   |               |    |   |   |   |   |   |
| Supplemental disclosures:                                                                      |   |               |    |   |   |   |   |   |
| Income taxes paid                                                                              |   | $                  | 3,600   |   |   | $ | 6,695 |   |
| Interest paid                                                                                  |   |               | 6,808   |   |   |   | 7,823 |   |
| Non-cash activities:                                                                           |   |               |    |   |   |   |   |   |
| Loans to facilitate the sale of other real estate and other repossessed assets                 |   |               | 40      |   |   |   | 30 |   |
| Common stock dividends accrued, paid in subsequent quarter                                     |   |               | 4,695   |   |   |   | 4,560 |   |
| Real estate acquired in settlement of loans                                                    |   |               | 6,322   |   |   |   | 2,955 |   |

----

| ·   | The amounts of and reasons for significant transfers in and out of Level 1, Level 2 and Level 3 fair value measurements and the accounting policy for the date used to recognize such transfers, e.g., actual transaction date, beginning of reporting period date or end of reporting period date |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Presentation of purchases, sales, issuances and settlements as separate lines, rather than one net number, in the table reconciling activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provision of fair value measurement disclosures for each class of assets and liabilities with a class often being a subset of assets or liabilities within a balance sheet line item.  Class should be determined on the basis of the nature and risks of investments in debt and equity securities and generally will not require change from the classifications already employed in disclosures for those investments |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provision of explanations about the valuation techniques and inputs used to determine fair value for both recurring and nonrecurring fair value measurements falling in either Level 2 or Level 3 |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Revision of the existing disclosures made by a plan sponsor about fair value for assets of defined benefit pension and other postretirement benefit plans to require those disclosures be made by asset class instead of asset category |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | Three Months Ended |   |
|----------------------------------------|--------|--------------------|--------|
|                                   |   | March 31           |   |
|                                   |   | 2010               |   |
| Expected dividend yield                |   |               | 4.78   | % |
| Risk-free interest rate                |   |               | 3.14   | % |
| Expected volatility                    |   |               | 39.12  | % |
| Expected term (in years)               |   |               | 7.5    |   |
| Weighted average fair value of options |   | $                  | 6.53   |   |

| (in thousands)                                              |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|-------------------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
| U.S. Treasury and government agencies                       |   | $              | 29,105  |   |                   | $      | 283    |                    |   | $      | (164       | )      |   | $ | 29,224 |   |
| State and political subdivisions                            |   |           | 52,463  |   |                   |   | 1,142  |                    |   |   | (313       | )      |   |   | 53,292 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 301,136 |   |                   |   | 6,182  |                    |   |   | (230       | )      |   |   | 307,088 |   |
| Total debt securities                                       |   |           | 382,704 |   |                   |   | 7,607  |                    |   |   | (707       | )      |   |   | 389,604 |   |
| Marketable equity securities                                |   |           | 20,582  |   |                   |   | 144    |                    |   |   | 0          |   |   |   | 20,726 |   |
| Total available-for-sale securities                         |   | $              | 403,286 |   |                   | $      | 7,751  |                    |   | $      | (707       | )      |   | $ | 410,330 |   |

| (in thousands)                    |   | Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|-----------------------------------|--------|----------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
| State and political subdivisions  |   | $              | 1,182  |   |                   | $      | 2      |                    |   | $      | 0          |   |   | $ | 1,184 |   |
| Other debt securities             |   |           | 480    |   |                   |   | 0      |                    |   |   | 0          |   |   |   | 480 |   |
| Total held-to-maturity securities |   | $              | 1,662  |   |                   | $      | 2      |                    |   | $      | 0          |   |   | $ | 1,664 |   |

| (in thousands)                                              |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|-------------------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
| U.S. Treasury and government agencies                       |   | $              | 29,154  |   |                   | $      | 330    |                    |   | $      | (230       | )      |   | $ | 29,254 |   |
| State and political subdivisions                            |   |           | 52,017  |   |                   |   | 690    |                    |   |   | (842       | )      |   |   | 51,865 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 230,905 |   |                   |   | 6,690  |                    |   |   | (352       | )      |   |   | 237,243 |   |
| Total debt securities                                       |   |           | 312,076 |   |                   |   | 7,710  |                    |   |   | (1,424     | )      |   |   | 318,362 |   |
| Marketable equity securities                                |   |           | 20,582  |   |                   |   | 41     |                    |   |   | (310       | )      |   |   | 20,313 |   |
| Total available-for-sale securities                         |   | $              | 332,658 |   |                   | $      | 7,751  |                    |   | $      | (1,734     | )      |   | $ | 338,675 |   |

| (in thousands)                    |   | Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|-----------------------------------|--------|----------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
| State and political subdivisions  |   | $              | 1,182  |   |                   | $      | 0      |                    |   | $      | 0          |   |   | $ | 1,182 |   |
| Other debt securities             |   |           | 480    |   |                   |   | 0      |                    |   |   | 0          |   |   |   | 480 |   |
| Total held-to-maturity securities |   | $              | 1,662  |   |                   | $      | 0      |                    |   | $      | 0          |   |   | $ | 1,662 |   |

|                                                        |   | Available-for-Sale |    |   | Held-to-Maturity |   |
|-------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
| (in thousands)                                              |   | Amortized Cost     |    |   | Fair Value       |   |   | Amortized Cost |   |   | Fair Value |   |
| Due in one year or less                                     |   | $                  | 4,167   |   |             | $      | 4,197 |   |   | $ | 0 |   |   | $ | 0 |   |
| Due after one through five years                            |   |               | 21,133  |   |             |   | 21,419 |   |   |   | 0 |   |   |   | 0 |   |
| Due after five through ten years                            |   |               | 34,560  |   |             |   | 35,014 |   |   |   | 1,182 |   |   |   | 1,184 |   |
| Due after ten years                                         |   |               | 21,708  |   |             |   | 21,886 |   |   |   | 0 |   |   |   | 0 |   |
| U.S. government sponsored agency mortgage-backed securities |   |               | 301,136 |   |             |   | 307,088 |   |   |   | 0 |   |   |   | 0 |   |
| Other securities                                            |   |               | 0       |   |             |   | 0 |   |   |   | 480 |   |   |   | 480 |   |
| Total debt securities                                       |   |               | 382,704 |   |             |   | 389,604 |   |   |   | 1,662 |   |   |   | 1,664 |   |
| Marketable equity securities                                |   |               | 20,582  |   |             |   | 20,726 |   |   |   | 0 |   |   |   | 0 |   |
| Total securities                                            |   | $                  | 403,286 |   |             | $      | 410,330 |   |   | $ | 1,662 |   |   | $ | 1,664 |   |

| (in thousands)                                              |   | Amortized Cost |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|-------------------------------------------------------------|--------|----------------|--------|--------|-------------------------|--------|--------|------------|--------|
| Less Than 12 Months                                         |   |           |   |   |                    |   |   |       |   |
| U.S. Treasury and government agencies                       |   | $              | 9,821  |   |                    | $      | (164   | )          |   | $ | 9,657 |   |
| State and political subdivisions                            |   |           | 15,257 |   |                    |   | (296   | )          |   |   | 14,961 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 40,361 |   |                    |   | (230   | )          |   |   | 40,131 |   |
| Total debt securities                                       |   |           | 65,439 |   |                    |   | (690   | )          |   |   | 64,749 |   |
| Marketable equity securities                                |   |           | 0      |   |                    |   | 0      |       |   |   | 0 |   |
| Total securities                                            |   |           | 65,439 |   |                    |   | (690   | )          |   |   | 64,749 |   |
|                                                        |   |           |   |   |                    |   |   |       |   |   |   |   |
| 12 Months or More                                           |   |           |   |   |                    |   |   |       |   |   |   |   |
| U.S. Treasury and government agencies                       |   |           | 0      |   |                    |   | 0      |       |   |   | 0 |   |
| State and political subdivisions                            |   |           | 590    |   |                    |   | (17    | )          |   |   | 573 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 0      |   |                    |   | 0      |       |   |   | 0 |   |
| Total debt securities                                       |   |           | 590    |   |                    |   | (17    | )          |   |   | 573 |   |
| Marketable equity securities                                |   |           | 0      |   |                    |   | 0      |       |   |   | 0 |   |
| Total securities                                            |   |           | 590    |   |                    |   | (17    | )          |   |   | 573 |   |
|                                                        |   |           |   |   |                    |   |   |       |   |   |   |   |
| Total                                                       |   |           |   |   |                    |   |   |       |   |   |   |   |
| U.S. Treasury and government agencies                       |   |           | 9,821  |   |                    |   | (164   | )          |   |   | 9,657 |   |
| State and political subdivisions                            |   |           | 15,847 |   |                    |   | (313   | )          |   |   | 15,534 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 40,361 |   |                    |   | (230   | )          |   |   | 40,131 |   |
| Total debt securities                                       |   |           | 66,029 |   |                    |   | (707   | )          |   |   | 65,322 |   |
| Marketable equity securities                                |   |           | 0      |   |                    |   | 0      |       |   |   | 0 |   |
| Total securities                                            |   | $              | 66,029 |   |                    | $      | (707   | )          |   | $ | 65,322 |   |

| (in thousands)                                              |   | Amortized Cost |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|-------------------------------------------------------------|--------|----------------|--------|--------|-------------------------|--------|--------|------------|--------|
| Less Than 12 Months                                         |   |           |   |   |                    |   |   |       |   |
| U.S. Treasury and government agencies                       |   | $              | 10,384 |   |                    | $      | (230   | )          |   | $ | 10,154 |   |
| State and political subdivisions                            |   |           | 24,624 |   |                    |   | (826   | )          |   |   | 23,798 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 30,016 |   |                    |   | (352   | )          |   |   | 29,664 |   |
| Total debt securities                                       |   |           | 65,024 |   |                    |   | (1,408 | )          |   |   | 63,616 |   |
| Marketable equity securities                                |   |           | 42     |   |                    |   | (17    | )          |   |   | 25 |   |
| Total securities                                            |   |           | 65,066 |   |                    |   | (1,425 | )          |   |   | 63,641 |   |
|                                                        |   |           |   |   |                    |   |   |       |   |   |   |   |
| 12 Months or More                                           |   |           |   |   |                    |   |   |       |   |   |   |   |
| U.S. Treasury and government agencies                       |   |           | 0      |   |                    |   | 0      |       |   |   | 0 |   |
| State and political subdivisions                            |   |           | 590    |   |                    |   | (16    | )          |   |   | 574 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 0      |   |                    |   | 0      |       |   |   | 0 |   |
| Total debt securities                                       |   |           | 590    |   |                    |   | (16    | )          |   |   | 574 |   |
| Marketable equity securities                                |   |           | 329    |   |                    |   | (293   | )          |   |   | 36 |   |
| Total securities                                            |   |           | 919    |   |                    |   | (309   | )          |   |   | 610 |   |
|                                                        |   |           |   |   |                    |   |   |       |   |   |   |   |
| Total                                                       |   |           |   |   |                    |   |   |       |   |   |   |   |
| U.S. Treasury and government agencies                       |   |           | 10,384 |   |                    |   | (230   | )          |   |   | 10,154 |   |
| State and political subdivisions                            |   |           | 25,214 |   |                    |   | (842   | )          |   |   | 24,372 |   |
| U.S. government sponsored agency mortgage-backed securities |   |           | 30,016 |   |                    |   | (352   | )          |   |   | 29,664 |   |
| Total debt securities                                       |   |           | 65,614 |   |                    |   | (1,424 | )          |   |   | 64,190 |   |
| Marketable equity securities                                |   |           | 371    |   |                    |   | (310   | )          |   |   | 61 |   |
| Total securities                                            |   | $              | 65,985 |   |                    | $      | (1,734 | )          |   | $ | 64,251 |   |

|  (in thousands)              |   | March 312011 |      |   | December 312010 |   |
|-----------------------------------|--------|--------------|-----------|--------|-----------------|--------|
| Commercial construction           |   | $            | 133,780   |   |            | $      | 135,091 |   |
| Commercial secured by real estate |   |         | 791,833   |   |            |   | 807,049 |   |
| Equipment lease financing         |   |         | 12,359    |   |            |   | 14,151 |   |
| Commercial other                  |   |         | 395,334   |   |            |   | 388,746 |   |
| Real estate construction          |   |         | 50,046    |   |            |   | 56,910 |   |
| Real estate mortgage              |   |         | 637,839   |   |            |   | 623,851 |   |
| Home equity                       |   |         | 83,767    |   |            |   | 85,103 |   |
| Consumer direct                   |   |         | 121,685   |   |            |   | 126,046 |   |
| Consumer indirect                 |   |         | 359,405   |   |            |   | 368,233 |   |
| Total loans                       |   | $            | 2,586,048 |   |            | $      | 2,605,180 |   |

|  (in thousands) |   | March 312011 |   |   | December 312010 |   |
|----------------------|--------|--------------|--------|--------|-----------------|--------|
| Beginning balance    |   | $            | 2,995  |   |            | $      | 0 |   |
| Additions            |   |         | 0      |   |            |   | 3,152 |   |
| Accretion            |   |         | (270   | )      |            |   | (126 | ) |
| Disposals            |   |         | (758   | )      |            |   | (31 | ) |
| Ending balance       |   | $            | 1,967  |   |            | $      | 2,995 |   |

|  (in thousands)              |   | March 312011 |   |   | December 312010 |   |
|-----------------------------------|--------|--------------|--------|--------|-----------------|--------|
| Commercial:                       |   |         |   |   |            |   |
| Commercial construction           |   | $            | 10,372 |   |            | $      | 13,138 |   |
| Commercial secured by real estate |   |         | 13,878 |   |            |   | 15,608 |   |
| Commercial other                  |   |         | 7,641  |   |            |   | 9,338 |   |
|                              |   |         |   |   |            |   |   |   |
| Residential:                      |   |         |   |   |            |   |   |   |
| Real estate construction          |   |         | 949    |   |            |   | 636 |   |
| Real estate mortgage              |   |         | 6,015  |   |            |   | 6,137 |   |
| Home equity                       |   |         | 147    |   |            |   | 164 |   |
| Total nonaccrual loans            |   | $            | 39,002 |   |            | $      | 45,021 |   |

|                              |   | March 31, 2011      |   |
|-----------------------------------|--------|---------------------|--------|
| (in thousands)                    |   | 30-59 Days Past Due |   |   | 60-89 Days Past Due |   |   | 90+ Days Past Due |   |   | Total Past Due |   |   | Current |   |   | Total Loans |   |   | 90+ and Accruing* |   |
| Commercial:                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction           |   | $                   | 1,748  |   |   | $ | 7,667 |   |   | $ | 12,201 |   |   | $ | 21,616 |   |   | $ | 112,164 |   |   | $ | 133,780 |   |   | $ | 2,022 |   |
| Commercial secured by real estate |   |                | 5,467  |   |   |   | 2,153 |   |   |   | 24,786 |   |   |   | 32,406 |   |   |   | 759,427 |   |   |   | 791,833 |   |   |   | 12,374 |   |
| Equipment lease financing         |   |                | 0      |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 12,359 |   |   |   | 12,359 |   |   |   | 0 |   |
| Commercial other                  |   |                | 6,502  |   |   |   | 543 |   |   |   | 3,393 |   |   |   | 10,438 |   |   |   | 384,896 |   |   |   | 395,334 |   |   |   | 769 |   |
| Residential:                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate construction          |   |                | 462    |   |   |   | 248 |   |   |   | 1,065 |   |   |   | 1,775 |   |   |   | 48,271 |   |   |   | 50,046 |   |   |   | 116 |   |
| Real estate mortgage              |   |                | 1,677  |   |   |   | 3,948 |   |   |   | 8,021 |   |   |   | 13,646 |   |   |   | 624,193 |   |   |   | 637,839 |   |   |   | 2,595 |   |
| Home equity                       |   |                | 411    |   |   |   | 182 |   |   |   | 309 |   |   |   | 902 |   |   |   | 82,865 |   |   |   | 83,767 |   |   |   | 214 |   |
| Consumer:                         |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer direct                   |   |                | 1,241  |   |   |   | 243 |   |   |   | 47 |   |   |   | 1,531 |   |   |   | 120,154 |   |   |   | 121,685 |   |   |   | 47 |   |
| Consumer indirect                 |   |                | 2,148  |   |   |   | 466 |   |   |   | 250 |   |   |   | 2,864 |   |   |   | 356,541 |   |   |   | 359,405 |   |   |   | 250 |   |
| Total                             |   | $                   | 19,656 |   |   | $ | 15,450 |   |   | $ | 50,072 |   |   | $ | 85,178 |   |   | $ | 2,500,870 |   |   | $ | 2,586,048 |   |   | $ | 18,387 |   |

|                              |   | December 31, 2010   |   |
|-----------------------------------|--------|---------------------|--------|
| (in thousands)                    |   | 30-59 Days Past Due |   |   | 60-89 Days Past Due |   |   | 90+ Days Past Due |   |   | Total Past Due |   |   | Current |   |   | Total Loans |   |   | 90+ and Accruing* |   |
| Commercial:                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction           |   | $                   | 1,800  |   |   | $ | 545 |   |   | $ | 14,290 |   |   | $ | 16,635 |   |   | $ | 118,456 |   |   | $ | 135,091 |   |   | $ | 1,178 |   |
| Commercial secured by real estate |   |                | 6,382  |   |   |   | 8,618 |   |   |   | 22,195 |   |   |   | 37,195 |   |   |   | 769,854 |   |   |   | 807,049 |   |   |   | 9,641 |   |
| Equipment lease financing         |   |                | 0      |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 14,151 |   |   |   | 14,151 |   |   |   | 0 |   |
| Commercial other                  |   |                | 6,737  |   |   |   | 539 |   |   |   | 5,039 |   |   |   | 12,315 |   |   |   | 376,431 |   |   |   | 388,746 |   |   |   | 1,692 |   |
| Residential:                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate construction          |   |                | 109    |   |   |   | 767 |   |   |   | 1,009 |   |   |   | 1,885 |   |   |   | 55,025 |   |   |   | 56,910 |   |   |   | 372 |   |
| Real estate mortgage              |   |                | 1,478  |   |   |   | 3,764 |   |   |   | 8,844 |   |   |   | 14,086 |   |   |   | 609,765 |   |   |   | 623,851 |   |   |   | 3,337 |   |
| Home equity                       |   |                | 885    |   |   |   | 276 |   |   |   | 295 |   |   |   | 1,456 |   |   |   | 83,647 |   |   |   | 85,103 |   |   |   | 226 |   |
| Consumer:                         |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer direct                   |   |                | 1,569  |   |   |   | 242 |   |   |   | 70 |   |   |   | 1,881 |   |   |   | 124,165 |   |   |   | 126,046 |   |   |   | 70 |   |
| Consumer indirect                 |   |                | 2,851  |   |   |   | 684 |   |   |   | 498 |   |   |   | 4,033 |   |   |   | 364,200 |   |   |   | 368,233 |   |   |   | 498 |   |
| Total                             |   | $                   | 21,811 |   |   | $ | 15,435 |   |   | $ | 52,240 |   |   | $ | 89,486 |   |   | $ | 2,515,694 |   |   | $ | 2,605,180 |   |   | $ | 17,014 |   |

| Ø   | Pass grades include investment grade, low risk, moderate risk, and acceptable risk loans.  The loans range from loans that have no chance of resulting in a loss to loans that have a limited chance of resulting in a loss.  Customers in this grade have excellent to fair credit ratings.  The cash flows are adequate to meet required debt repayments. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Watch graded loans are loans that warrant extra management attention but are not currently criticized.  Loans on the watch list may be potential troubled credits or may warrant “watch” status for a reason not directly related to the asset quality of the credit.  The watch grade is a management tool to identify credits which may be candidates for future classification or may temporarily warrant extra management monitoring. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Other assets especially mentioned (OAEM) reflects loans that are currently protected but are potentially weak.  These loans constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard.  The credit risk may be relatively minor yet constitute an unwarranted risk in light of circumstances surrounding a specific asset. Loans in this grade display potential weaknesses which may, if unchecked or uncorrected, inadequately protect the Bank’s credit position at some future date.  The loans may be adversely affected by economic or market conditions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Substandard grading indicates that the loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged.  These loans have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the debt with the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Doubtful graded loans have the weaknesses inherent in the substandard grading with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.  The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the Bank’s advantage or strengthen the asset(s), its classification as an estimated loss is deferred until its more exact status may be determined.  Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A loss grading applies to loans that are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.  This classification does not mean that the asset has absolutely no recovery value, but rather it is not practical or desirable to defer writing off the asset.  Losses must be taken in the period in which they surface as uncollectible. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (in thousands) |   | Real Estate Commercial Construction |    |   | Commercial Secured by Real Estate |   |    | Commercial Other |   |   | Equipment Leases |   |
|----------------------|--------|-------------------------------------|---------|--------|-----------------------------------|--------|---------|------------------|--------|--------|------------------|--------|
| March 31, 2011       |   |                                |    |   |                              |   |    |             |   |   |             |   |
| Pass                 |   | $                                   | 78,933  |   |                              | $      | 644,301 |             |   | $      | 314,966          |   |   | $ | 12,359 |   |
| Watch                |   |                                | 22,031  |   |                              |   | 75,389  |             |   |   | 61,947           |   |   |   | 0 |   |
| OAEM                 |   |                                | 8,648   |   |                              |   | 8,313   |             |   |   | 1,478            |   |   |   | 0 |   |
| Substandard          |   |                                | 12,942  |   |                              |   | 49,637  |             |   |   | 7,612            |   |   |   | 0 |   |
| Doubtful             |   |                                | 10,372  |   |                              |   | 11,978  |             |   |   | 7,499            |   |   |   | 0 |   |
| Loss                 |   |                                | 854     |   |                              |   | 2,215   |             |   |   | 1,832            |   |   |   | 0 |   |
| Total                |   | $                                   | 133,780 |   |                              | $      | 791,833 |             |   | $      | 395,334          |   |   | $ | 12,359 |   |
|                 |   |                                |    |   |                              |   |    |             |   |   |             |   |   |   |   |   |
| December 31, 2010    |   |                                |    |   |                              |   |    |             |   |   |             |   |   |   |   |   |
| Pass                 |   | $                                   | 80,064  |   |                              | $      | 651,281 |             |   | $      | 313,444          |   |   | $ | 14,151 |   |
| Watch                |   |                                | 27,510  |   |                              |   | 80,128  |             |   |   | 57,716           |   |   |   | 0 |   |
| OAEM                 |   |                                | 853     |   |                              |   | 8,163   |             |   |   | 731              |   |   |   | 0 |   |
| Substandard          |   |                                | 13,987  |   |                              |   | 53,141  |             |   |   | 7,348            |   |   |   | 0 |   |
| Doubtful             |   |                                | 12,506  |   |                              |   | 13,813  |             |   |   | 7,456            |   |   |   | 0 |   |
| Loss                 |   |                                | 171     |   |                              |   | 523     |             |   |   | 2,051            |   |   |   | 0 |   |
| Total                |   | $                                   | 135,091 |   |                              | $      | 807,049 |             |   | $      | 388,746          |   |   | $ | 14,151 |   |

| (in thousands)    |   | Real Estate Consumer Construction |   |   | Real Estate Mortgage |   |    | Home Equity |   |   | Consumer Direct |   |   | ConsumerIndirect |    |
|-------------------|--------|-----------------------------------|--------|--------|----------------------|--------|---------|-------------|--------|--------|-----------------|--------|--------|------------------|---------|
| March 31, 2011    |   |                              |   |   |                 |   |    |        |   |   |            |   |   |             |    |
| Performing        |   | $                                 | 48,981 |   |                 | $      | 629,229 |        |   | $      | 83,406          |   |   | $                | 121,638 |   |   | $ | 359,155 |   |
| Nonperforming     |   |                              | 1,065  |   |                 |   | 8,610   |        |   |   | 361             |   |   |             | 47      |   |   |   | 250 |   |
| Total             |   | $                                 | 50,046 |   |                 | $      | 637,839 |        |   | $      | 83,767          |   |   | $                | 121,685 |   |   | $ | 359,405 |   |
|              |   |                              |   |   |                 |   |    |        |   |   |            |   |   |             |    |   |   |   |   |   |
| December 31, 2010 |   |                              |   |   |                 |   |    |        |   |   |            |   |   |             |    |   |   |   |   |   |
| Performing        |   | $                                 | 55,902 |   |                 | $      | 614,377 |        |   | $      | 84,713          |   |   | $                | 125,976 |   |   | $ | 367,735 |   |
| Nonperforming     |   |                              | 1,008  |   |                 |   | 9,474   |        |   |   | 390             |   |   |             | 70      |   |   |   | 498 |   |
| Total             |   | $                                 | 56,910 |   |                 | $      | 623,851 |        |   | $      | 85,103          |   |   | $                | 126,046 |   |   | $ | 368,233 |   |

|                                          |   | March 31, 2011   |   |
|-----------------------------------------------|--------|------------------|--------|
| (in thousands)                                |   | Recorded Balance |   |   | Unpaid Principal Balance |   |   | Specific Allowance |   |   | Average Investment in Impaired Loans |   |   | Interest Income Recognized |   |
| Loans without a specific valuation allowance: |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction                       |   | $                | 7,537  |   |   | $ | 8,394 |   |   | $ | 0 |   |   | $ | 7,540 |   |   | $ | 71 |   |
| Commercial secured by real estate             |   |             | 30,903 |   |   |   | 33,279 |   |   |   | 0 |   |   |   | 32,777 |   |   |   | 257 |   |
| Commercial other                              |   |             | 3,870  |   |   |   | 4,970 |   |   |   | 0 |   |   |   | 3,886 |   |   |   | 56 |   |
| Real estate construction                      |   |             | 0      |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Real estate mortgage                          |   |             | 85     |   |   |   | 85 |   |   |   | 0 |   |   |   | 85 |   |   |   | 2 |   |
| Consumer direct                               |   |             | 43     |   |   |   | 43 |   |   |   | 0 |   |   |   | 43 |   |   |   | 1 |   |
| Consumer indirect                             |   |             | 89     |   |   |   | 89 |   |   |   | 0 |   |   |   | 89 |   |   |   | 2 |   |
|                                          |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans with a specific valuation allowance:    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction                       |   |             | 9,356  |   |   |   | 9,788 |   |   |   | 2,805 |   |   |   | 9,356 |   |   |   | 0 |   |
| Commercial secured by real estate             |   |             | 5,189  |   |   |   | 5,379 |   |   |   | 1,622 |   |   |   | 5,219 |   |   |   | 23 |   |
| Commercial other                              |   |             | 7,247  |   |   |   | 8,645 |   |   |   | 2,913 |   |   |   | 7,963 |   |   |   | 0 |   |
|                                          |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                    |   |             | 64,102 |   |   |   | 70,455 |   |   |   | 7,340 |   |   |   | 66,741 |   |   |   | 407 |   |
| Residential                                   |   |             | 85     |   |   |   | 85 |   |   |   | 0 |   |   |   | 85 |   |   |   | 2 |   |
| Consumer                                      |   |             | 132    |   |   |   | 132 |   |   |   | 0 |   |   |   | 132 |   |   |   | 3 |   |
| Total                                         |   | $                | 64,319 |   |   | $ | 70,672 |   |   | $ | 7,340 |   |   | $ | 66,958 |   |   | $ | 412 |   |

|                                          |   | December 31, 2010 |   |
|-----------------------------------------------|--------|-------------------|--------|
| (in thousands)                                |   | Recorded Balance  |   |   | Unpaid Principal Balance |   |   | Specific Allowance |   |   | Average Investment in Impaired Loans |   |   | Interest Income Recognized |   |
| Loans without a specific valuation allowance: |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction                       |   | $                 | 6,313  |   |   | $ | 6,313 |   |   | $ | 0 |   |   | $ | 6,262 |   |   | $ | 43 |   |
| Commercial secured by real estate             |   |              | 23,503 |   |   |   | 24,034 |   |   |   | 0 |   |   |   | 23,629 |   |   |   | 330 |   |
| Commercial other                              |   |              | 4,357  |   |   |   | 4,616 |   |   |   | 0 |   |   |   | 4,407 |   |   |   | 71 |   |
| Real estate construction                      |   |              | 790    |   |   |   | 790 |   |   |   | 0 |   |   |   | 790 |   |   |   | 0 |   |
| Real estate mortgage                          |   |              | 950    |   |   |   | 950 |   |   |   | 0 |   |   |   | 950 |   |   |   | 0 |   |
|                                          |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans with a specific valuation allowance:    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction                       |   |              | 9,528  |   |   |   | 10,813 |   |   |   | 2,554 |   |   |   | 9,686 |   |   |   | 0 |   |
| Commercial secured by real estate             |   |              | 9,188  |   |   |   | 9,358 |   |   |   | 2,575 |   |   |   | 9,191 |   |   |   | 2 |   |
| Commercial other                              |   |              | 8,680  |   |   |   | 10,338 |   |   |   | 3,093 |   |   |   | 8,090 |   |   |   | 85 |   |
|                                          |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                    |   |              | 61,569 |   |   |   | 65,472 |   |   |   | 8,222 |   |   |   | 61,265 |   |   |   | 531 |   |
| Residential                                   |   |              | 1,740  |   |   |   | 1,740 |   |   |   | 0 |   |   |   | 1,740 |   |   |   | 0 |   |
| Total                                         |   | $                 | 63,309 |   |   | $ | 67,212 |   |   | $ | 8,222 |   |   | $ | 63,005 |   |   | $ | 531 |   |

| (in thousands)                           |   | March 312010 |   |
|------------------------------------------|--------|--------------|--------|
| Impaired loans without specific reserves |   | $            | 25,203 |   |
| Impaired loans with specific reserves    |   |         | 24,407 |   |
| Restructured loans                       |   |         | 952    |   |
| Total                                    |   | $            | 50,562 |   |

|  (in thousands)              |   | March 312011 |   |   | December 312010 |   |
|-----------------------------------|--------|--------------|--------|--------|-----------------|--------|
| Commercial:                       |   |         |   |   |            |   |
| Commercial construction           |   | $            | 6,320  |   |            | $      | 2,973 |   |
| Commercial secured by real estate |   |         | 5,742  |   |            |   | 2,511 |   |
| Commercial other                  |   |         | 4,594  |   |            |   | 1,156 |   |
|                              |   |         |   |   |            |   |   |   |
| Residential:                      |   |         |   |   |            |   |   |   |
| Real estate mortgage              |   |         | 85     |   |            |   | 0 |   |
|                              |   |         |   |   |            |   |   |   |
| Consumer:                         |   |         |   |   |            |   |   |   |
| Consumer direct                   |   |         | 43     |   |            |   | 0 |   |
| Consumer indirect                 |   |         | 89     |   |            |   | 0 |   |
| Total restructured loans          |   | $            | 16,873 |   |            | $      | 6,640 |   |

|  (in thousands)              |   | March 312011 |   |   | December 312010 |   |
|-----------------------------------|--------|--------------|--------|--------|-----------------|--------|
| Commercial:                       |   |         |   |   |            |   |
| Commercial construction           |   | $            | 4,974  |   |            | $      | 1,633 |   |
| Commercial secured by real estate |   |         | 4,328  |   |            |   | 2,427 |   |
| Commercial other                  |   |         | 4,080  |   |            |   | 771 |   |
|                              |   |         |   |   |            |   |   |   |
| Residential:                      |   |         |   |   |            |   |   |   |
| Real estate mortgage              |   |         | 85     |   |            |   | 0 |   |
|                              |   |         |   |   |            |   |   |   |
| Consumer:                         |   |         |   |   |            |   |   |   |
| Consumer direct                   |   |         | 43     |   |            |   | 0 |   |
| Consumer indirect                 |   |         | 89     |   |            |   | 0 |   |
| Total restructured loans          |   | $            | 13,599 |   |            | $      | 4,831 |   |

|                                              |   | Three Months Ended |   |
|---------------------------------------------------|--------|--------------------|--------|
|                                              |   | March 31           |   |
| (in thousands)                                    |   | 2011               |   |   | 2010 |   |
| Allowance balance at January 1                    |   | $                  | 34,805 |   |   | $ | 32,643 |   |
| Additions to allowance charged against operations |   |               | 4,387  |   |   |   | 5,722 |   |
| Recoveries credited to allowance                  |   |               | 622    |   |   |   | 825 |   |
| Losses charged against allowance                  |   |               | (4,662 | ) |   |   | (4,316 | ) |
| Allowance balance at March 31                     |   | $                  | 35,152 |   |   | $ | 34,874 |   |

|                                  |   | March 31, 2011          |    |
|---------------------------------------|--------|-------------------------|---------|
| (in thousands)                        |   | Commercial Construction |    |   | Commercial Secured by Real Estate |   |   | Commercial Other |   |   | Equipment Lease Financing |   |   | Real Estate Construction |   |   | Real Estate Mortgage |   |   | HomeEquity |   |   | Consumer Direct |   |   | Consumer Indirect |   |   | Total |   |
| Allowance for loan losses             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                     |   | $                       | 4,332   |   |   | $ | 12,327 |   |   | $ | 7,392 |   |   | $ | 148 |   |   | $ | 271 |   |   | $ | 2,982 |   |   | $ | 407 |   |   | $ | 1,169 |   |   | $ | 5,777 |   |   | $ | 34,805 |   |
| Provision charged to expense          |   |                    | 433     |   |   |   | 1,613 |   |   |   | 906 |   |   |   | (10 | ) |   |   | (17 | ) |   |   | 683 |   |   |   | 78 |   |   |   | 43 |   |   |   | 658 |   |   |   | 4,387 |   |
| Losses charged off                    |   |                    | 98      |   |   |   | 2,015 |   |   |   | 875 |   |   |   | 0 |   |   |   | 0 |   |   |   | 342 |   |   |   | 46 |   |   |   | 291 |   |   |   | 995 |   |   |   | 4,662 |   |
| Recoveries                            |   |                    | 1       |   |   |   | 27 |   |   |   | 81 |   |   |   | 0 |   |   |   | 8 |   |   |   | 22 |   |   |   | 0 |   |   |   | 140 |   |   |   | 343 |   |   |   | 622 |   |
| Ending balance                        |   | $                       | 4,668   |   |   | $ | 11,952 |   |   | $ | 7,504 |   |   | $ | 138 |   |   | $ | 262 |   |   | $ | 3,345 |   |   | $ | 439 |   |   | $ | 1,061 |   |   | $ | 5,783 |   |   | $ | 35,152 |   |
|                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment |   | $                       | 2,805   |   |   | $ | 1,622 |   |   | $ | 2,913 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 7,340 |   |
| Collectively evaluated for impairment |   | $                       | 1,863   |   |   | $ | 10,330 |   |   | $ | 4,591 |   |   | $ | 138 |   |   | $ | 262 |   |   | $ | 3,345 |   |   | $ | 439 |   |   | $ | 1,061 |   |   | $ | 5,783 |   |   | $ | 27,812 |   |
|                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                 |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment |   | $                       | 16,893  |   |   | $ | 36,092 |   |   | $ | 11,117 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 85 |   |   | $ | 0 |   |   | $ | 43 |   |   | $ | 89 |   |   | $ | 64,319 |   |
| Collectively evaluated for impairment |   | $                       | 116,887 |   |   | $ | 755,741 |   |   | $ | 384,217 |   |   | $ | 12,359 |   |   | $ | 50,046 |   |   | $ | 637,754 |   |   | $ | 83,767 |   |   | $ | 121,642 |   |   | $ | 359,316 |   |   | $ | 2,521,729 |   |

|                                  |   | December 31, 2010       |    |
|---------------------------------------|--------|-------------------------|---------|
| (in thousands)                        |   | Commercial Construction |    |   | Commercial Secured by Real Estate |   |   | Commercial Other |   |   | Equipment Lease Financing |   |   | Real Estate Construction |   |   | Real Estate Mortgage |   |   | HomeEquity |   |   | Consumer Direct |   |   | Consumer Indirect |   |   | Total |   |
| Allowance for loan losses             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                     |   | $                       | 3,381   |   |   | $ | 10,961 |   |   | $ | 7,472 |   |   | $ | 221 |   |   | $ | 291 |   |   | $ | 3,041 |   |   | $ | 455 |   |   | $ | 1,258 |   |   | $ | 5,563 |   |   | $ | 32,643 |   |
| Provision charged to expense          |   |                    | 2,640   |   |   |   | 5,029 |   |   |   | 4,416 |   |   |   | (73 | ) |   |   | (17 | ) |   |   | 526 |   |   |   | 287 |   |   |   | 532 |   |   |   | 3,144 |   |   |   | 16,484 |   |
| Losses charged off                    |   |                    | 1,695   |   |   |   | 3,826 |   |   |   | 5,184 |   |   |   | 0 |   |   |   | 22 |   |   |   | 684 |   |   |   | 358 |   |   |   | 1,256 |   |   |   | 4,611 |   |   |   | 17,636 |   |
| Recoveries                            |   |                    | 6       |   |   |   | 163 |   |   |   | 688 |   |   |   | 0 |   |   |   | 19 |   |   |   | 99 |   |   |   | 23 |   |   |   | 635 |   |   |   | 1,681 |   |   |   | 3,314 |   |
| Ending balance                        |   | $                       | 4,332   |   |   | $ | 12,327 |   |   | $ | 7,392 |   |   | $ | 148 |   |   | $ | 271 |   |   | $ | 2,982 |   |   | $ | 407 |   |   | $ | 1,169 |   |   | $ | 5,777 |   |   | $ | 34,805 |   |
|                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment |   | $                       | 2,554   |   |   | $ | 2,575 |   |   | $ | 3,093 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 8,222 |   |
| Collectively evaluated for impairment |   | $                       | 1,778   |   |   | $ | 9,752 |   |   | $ | 4,299 |   |   | $ | 148 |   |   | $ | 271 |   |   | $ | 2,982 |   |   | $ | 407 |   |   | $ | 1,169 |   |   | $ | 5,777 |   |   | $ | 26,583 |   |
|                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                 |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment |   | $                       | 15,841  |   |   | $ | 32,691 |   |   | $ | 13,037 |   |   | $ | 0 |   |   | $ | 790 |   |   | $ | 950 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 63,309 |   |
| Collectively evaluated for impairment |   | $                       | 119,250 |   |   | $ | 774,358 |   |   | $ | 375,709 |   |   | $ | 14,151 |   |   | $ | 56,120 |   |   | $ | 622,901 |   |   | $ | 85,103 |   |   | $ | 126,046 |   |   | $ | 368,233 |   |   | $ | 2,541,871 |   |

|                                    |   | Three Months Ended |   |
|-----------------------------------------|--------|--------------------|--------|
|                                    |   | March 31           |   |
| (in thousands)                          |   | 2011               |   |   | 2010 |   |
| Net gain on sale of loans held for sale |   | $                  | 381    |   |   | $ | 442 |   |
| Net loan servicing income:              |   |               |   |   |   |   |   |   |
| Servicing fees                          |   |               | 268    |   |   |   | 272 |   |
| Late fees                               |   |               | 22     |   |   |   | 17 |   |
| Ancillary fees                          |   |               | 66     |   |   |   | 66 |   |
| Fair value adjustments                  |   |               | (46    | ) |   |   | (127 | ) |
| Net loan servicing income               |   |               | 310    |   |   |   | 228 |   |
| Mortgage banking income                 |   | $                  | 691    |   |   | $ | 670 |   |

|                                           |   | Three Months Ended |   |
|------------------------------------------------|--------|--------------------|--------|
|                                           |   | March 31           |   |
| (in thousands)                                 |   | 2011               |   |   | 2010 |   |
| Fair value, beginning of period                |   | $                  | 3,161  |   |   | $ | 3,406 |   |
| New servicing assets created                   |   |               | 136    |   |   |   | 163 |   |
| Change in fair value during the period due to: |   |               |   |   |   |   |   |   |
| Time decay (1)                                 |   |               | (59    | ) |   |   | (50 | ) |
| Payoffs (2)                                    |   |               | (131   | ) |   |   | (62 | ) |
| Changes in valuation inputs or assumptions (3) |   |               | 144    |   |   |   | (15 | ) |
| Fair value, end of period                      |   | $                  | 3,251  |   |   | $ | 3,442 |   |

| (1)   | Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (2)   | Represents decrease in value due to loans that paid off during the period. |
|-----------------|----------------------------------------------------------------------------|

| (3)   | Represents change in value resulting from market-driven changes in interest rates and prepayment speeds. |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (in thousands)         |   | 2011   |   |   | 2010   |   |
|------------------------|--------|--------|--------|--------|--------|--------|
| Beginning balance      |   | $      | 42,935 |   |   | $      | 37,333 |   |
| New assets acquired    |   |   | 6,321  |   |   |   | 2,955 |   |
| Capitalized costs      |   |   | 13     |   |   |   | 52 |   |
| Fair value adjustments |   |   | (418   | )      |   |   | (329 | ) |
| Sale of assets         |   |   | (1,184 | )      |   |   | (1,399 | ) |
| Ending balance         |   | $      | 47,667 |   |   | $      | 38,612 |   |

| (in thousands)          |   | March 312011 |    |   | December 312010 |   |
|-------------------------|--------|--------------|---------|--------|-----------------|--------|
| Subsidiaries:           |   |         |    |   |            |   |
| Repurchase agreements   |   | $            | 194,472 |   |            | $      | 188,275 |   |
| Federal funds purchased |   |         | 14,585  |   |            |   | 9,680 |   |
| Total short-term debt   |   | $            | 209,057 |   |            | $      | 197,955 |   |

| (in thousands)     |   | March 312011 |   |   | December 312010 |   |
|--------------------|--------|--------------|--------|--------|-----------------|--------|
| Monthly amortizing |   | $            | 1,759  |   |            | $      | 1,238 |   |
| Term               |   |         | 20,000 |   |            |   | 20,000 |   |
| Total advances     |   | $            | 21,759 |   |            | $      | 21,238 |   |

|                                                               |   | Principal Payments Due by Period at March 31, 2011 |   |
|--------------------------------------------------------------------|--------|----------------------------------------------------|--------|
| (in thousands)                                                     |   | Total                                              |   |   | Within 1 Year |   |   | 2 Years |   |   | 3 Years |   |   | 4 Years |   |   | 5 Years |   |   | After 5 Years |   |
| Outstanding advances, weighted average interest rate – 2.35% |   | $                                                  | 1,759  |   |   | $ | 212 |   |   | $ | 173 |   |   | $ | 126 |   |   | $ | 116 |   |   | $ | 113 |   |   | $ | 1,019 |   |

|  (in thousands)             |   | March 312011 |   |   | December 312010 |   |
|----------------------------------|--------|--------------|--------|--------|-----------------|--------|
| Advance #158, 0.37%, due 1/24/11 |   | $            | 0      |   |            | $      | 20,000 |   |
| Advance #160, 0.33%, due 7/22/11 |   |         | 20,000 |   |            |   | 0 |   |
| Total term advances              |   | $            | 20,000 |   |            | $      | 20,000 |   |

| (in thousands)                                    |   | March 312011 |   |   | December 312010 |   |
|---------------------------------------------------|--------|--------------|--------|--------|-----------------|--------|
| Junior subordinated debentures, 6.52%, due 6/1/37 |   | $            | 61,341 |   |            | $      | 61,341 |   |

|                                 |   | Three Months Ended |   |
|--------------------------------------|--------|--------------------|--------|
|                                 |   | March 31           |   |
| (in thousands except per share data) |   | 2011               |   |   | 2010 |   |
| Numerator:                           |   |               |   |   |   |   |
| Net income                           |   | $                  | 9,304  |   |   | $ | 6,791 |   |
|                                 |   |               |   |   |   |   |   |   |
| Denominator:                         |   |               |   |   |   |   |   |   |
| Basic earnings per share:            |   |               |   |   |   |   |   |   |
| Weighted average shares              |   |               | 15,294 |   |   |   | 15,202 |   |
| Diluted earnings per share:          |   |               |   |   |   |   |   |   |
| Effect of dilutive stock options     |   |               | 30     |   |   |   | 33 |   |
| Adjusted weighted average shares     |   |               | 15,324 |   |   |   | 15,235 |   |
|                                 |   |               |   |   |   |   |   |   |
| Earnings per share                   |   |               |   |   |   |   |   |   |
| Basic earnings per share             |   | $                  | 0.61   |   |   | $ | 0.45 |   |
| Diluted earnings per share           |   | $                  | 0.61   |   |   | $ | 0.45 |   |

| (in thousands)                                              |   |                   |    |   | Fair Value Measurements atMarch 31, 2011 Using                |   |
|-------------------------------------------------------------|--------|------------------------|---------|--------|---------------------------------------------------------------|--------|
|                                                        |   | Fair ValueMarch 312011 |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Available-for-sale securities:                              |   |                   |    |   |                                                          |   |   |   |   |   |   |   |
| U.S. Treasury and government agencies                       |   | $                      | 29,224  |   |                                                          | $      | 0 |   |   | $ | 29,224 |   |   | $ | 0 |   |
| State and political subdivisions                            |   |                   | 53,292  |   |                                                          |   | 0 |   |   |   | 53,292 |   |   |   | 0 |   |
| U.S. government sponsored agency mortgage-backed securities |   |                   | 307,088 |   |                                                          |   | 0 |   |   |   | 307,088 |   |   |   | 0 |   |
| Marketable equity securities                                |   |                   | 20,726  |   |                                                          |   | 0 |   |   |   | 20,515 |   |   |   | 211 |   |
| Mortgage servicing rights                                   |   |                   | 3,251   |   |                                                          |   | 0 |   |   |   | 0 |   |   |   | 3,251 |   |
| Total recurring assets measured at fair value               |   | $                      | 413,581 |   |                                                          | $      | 0 |   |   | $ | 410,119 |   |   | $ | 3,462 |   |

|  (in thousands)                                        |   |                      |    |   | Fair Value Measurements atDecember 31, 2010 Using             |   |
|-------------------------------------------------------------|--------|---------------------------|---------|--------|---------------------------------------------------------------|--------|
|                                                        |   | Fair ValueDecember 312010 |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Available-for-sale securities:                              |   |                      |    |   |                                                          |   |   |   |   |   |   |   |
| U.S. Treasury and government agencies                       |   | $                         | 29,254  |   |                                                          | $      | 0 |   |   | $ | 29,254 |   |   | $ | 0 |   |
| State and political subdivisions                            |   |                      | 51,865  |   |                                                          |   | 0 |   |   |   | 51,865 |   |   |   | 0 |   |
| U.S. government sponsored agency mortgage-backed securities |   |                      | 237,243 |   |                                                          |   | 0 |   |   |   | 237,243 |   |   |   | 0 |   |
| Marketable equity securities                                |   |                      | 20,313  |   |                                                          |   | 0 |   |   |   | 20,102 |   |   |   | 211 |   |
| Mortgage servicing rights                                   |   |                      | 3,161   |   |                                                          |   | 0 |   |   |   | 0 |   |   |   | 3,161 |   |
| Total recurring assets measured at fair value               |   | $                         | 341,836 |   |                                                          | $      | 0 |   |   | $ | 338,464 |   |   | $ | 3,372 |   |

|                                             |   | Three Months Ended |   |
|--------------------------------------------------|--------|--------------------|--------|
|                                             |   | March 31           |   |
| Marketable Equity Securities (in thousands) |   | 2011               |   |   | 2010 |   |
| Beginning balance                                |   | $                  | 211    |   |   | $ | 211 |   |
| Total realized and unrealized gains and losses   |   |               |   |   |   |   |   |   |
| Included in net income                           |   |               | 0      |   |   |   | 0 |   |
| Transfers from Level 3 to Level 2                |   |               | 0      |   |   |   | 0 |   |
| Purchases                                        |   |               | 0      |   |   |   | 0 |   |
| Issuances                                        |   |               | 0      |   |   |   | 0 |   |
| Settlements                                      |   |               | 0      |   |   |   | 0 |   |
| Ending balance                                   |   | $                  | 211    |   |   | $ | 211 |   |

|                                           |   | Three Months Ended |   |
|------------------------------------------------|--------|--------------------|--------|
|                                           |   | March 31           |   |
| Mortgage Servicing Rights (in thousands)  |   | 2011               |   |   | 2010 |   |
| Beginning balance                              |   | $                  | 3,161  |   |   | $ | 3,406 |   |
| Total realized and unrealized gains and losses |   |               |   |   |   |   |   |   |
| Included in net income                         |   |               | 144    |   |   |   | (15 | ) |
| Transfers from Level 3 to Level 2              |   |               | 0      |   |   |   | 0 |   |
| Purchases                                      |   |               | 0      |   |   |   | 0 |   |
| Issuances                                      |   |               | 136    |   |   |   | 163 |   |
| Settlements                                    |   |               | (190   | ) |   |   | (112 | ) |
| Ending balance                                 |   | $                  | 3,251  |   |   | $ | 3,442 |   |

| (in thousands)                 |   |                   | Fair Value Measurements atMarch 31, 2011 Using |   |
|--------------------------------|--------|------------------------|------------------------------------------------|--------|
|                           |   | Fair ValueMarch 312011 |                                           |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Impaired loans                 |   | $                      | 9,418                                          |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 9,418 |   |
| Other real estate/assets owned |   |                   | 1,404                                          |   |   |   | 0 |   |   |   | 0 |   |   |   | 1,404 |   |

| (in thousands)                 |   |                      | Fair Value Measurements atDecember 31, 2010 Using |   |
|--------------------------------|--------|---------------------------|---------------------------------------------------|--------|
|                           |   | Fair ValueDecember 312010 |                                              |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Impaired loans                 |   | $                         | 16,589                                            |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 16,589 |   |
| Other real estate/assets owned |   |                      | 4,579                                             |   |   |   | 0 |   |   |   | 0 |   |   |   | 4,579 |   |

|  (in thousands)                    | March 31, 2011  | December 31, 2010    |
|-----------------------------------------|-----------------|----------------------|
|                                    | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value |
| Financial assets:                       |            |                 |   |   |
| Cash and cash equivalents               | $204,947        | $204,947             | $158,983 | $158,983 |
| Certificates of deposits in other banks | 10,789          | 10,803               | 14,762 | 14,775 |
| Securities available-for-sale           | 410,330         | 410,330              | 338,675 | 338,675 |
| Securities held-to-maturity             | 1,662           | 1,664                | 1,662 | 1,662 |
| Loans, net (including impaired loans)   | 2,550,896       | 2,553,651            | 2,570,375 | 2,582,596 |
| Loans held for sale                     | 952             | 972                  | 455 | 462 |
| Federal Home Loan Bank stock            | 25,673          | 25,673               | 25,673 | 25,673 |
| Federal Reserve Bank stock              | 4,468           | 4,468                | 4,434 | 4,434 |
| Accrued interest receivable             | 12,627          | 12,627               | 12,574 | 12,574 |
| Capitalized mortgage servicing rights   | 3,251           | 3,251                | 3,161 | 3,161 |
|                                    |            |                 |   |   |
| Financial liabilities:                  |            |                 |   |   |
| Deposits                                | $2,792,235      | $2,792,477           | $2,706,117 | $2,690,960 |
| Repurchase agreements                   | 194,472         | 193,499              | 188,275 | 186,989 |
| Federal funds purchased                 | 14,585          | 14,585               | 9,680 | 9,680 |
| Advances from Federal Home Loan Bank    | 21,759          | 21,765               | 21,238 | 21,213 |
| Long-term debt                          | 61,341          | 30,926               | 61,341 | 30,894 |
| Accrued interest payable                | 3,326           | 3,326                | 2,848 | 2,848 |
|                                    |            |                 |   |   |
| Unrecognized financial instruments:     |            |                 |   |   |
| Letters of credit                       | $0              | $0                   | $0 | $0 |
| Commitments to extend credit            | 0               | 0                    | 0 | 0 |

| (in thousands)               |   | Goodwill |   |   | Core Deposit Intangible |   |
|------------------------------|--------|----------|--------|--------|-------------------------|--------|
| Beginning balance, January 1 |   | $        | 65,499 |   |                    | $      | 1,342 |   |
| Amortization                 |   |     | 0      |   |                    |   | (66 | ) |
| Acquisition adjustments      |   |     | (9     | )      |                    |   | 0 |   |
| Ending balance, March 31     |   | $        | 65,490 |   |                    | $      | 1,276 |   |

| Pay Date        | Record Date        | Amount Per Share |
|-----------------|--------------------|------------------|
| April 1, 2011   | March 15, 2011     | $0.305           |
| January 1, 2011 | December 15, 2010  | $0.305           |
| October 1, 2010 | September 15, 2010 | $0.305           |
| July 1, 2010    | June 15, 2010      | $0.30            |
| April 1, 2010   | March 15, 2010     | $0.30            |
| January 1, 2010 | December 15, 2009  | $0.30            |

| Earnings Summary                      |   |   |   |   |   |   |   |   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (in thousands except per share data)  |   |   | 1Q2011 |   |   |   | 4Q2010 |   |   |   | 1Q2010 |   |
| Net income                            |   | $      | 9,304  |   |   | $      | 9,240  |   |   | $ | 6,791 |   |
| Earnings per share                    |   | $      | 0.61   |   |   | $      | 0.61   |   |   | $ | 0.45 |   |
| Earnings per share—diluted      |   | $      | 0.61   |   |   | $      | 0.60   |   |   | $ | 0.45 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets              |   |   | 1.11   | %      |   |   | 1.11   | %      |   |   | 0.88 | % |
| Return on average equity              |   |   | 10.96  | %      |   |   | 10.71  | %      |   |   | 8.47 | % |
| Efficiency ratio                      |   |   | 60.78  | %      |   |   | 58.50  | %      |   |   | 59.45 | % |
| Tangible common equity                |   |   | 8.19   | %      |   |   | 8.26   | %      |   |   | 8.36 | % |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared per share          |   | $      | 0.305  |   |   | $      | 0.305  |   |   | $ | 0.30 |   |
| Book value per share                  |   | $      | 22.38  |   |   | $      | 22.08  |   |   | $ | 21.26 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares               |   |   | 15,294 |   |   |   | 15,265 |   |   |   | 15,202 |   |
| Weighted average shares—diluted |   |   | 15,324 |   |   |   | 15,294 |   |   |   | 15,235 |   |

| v   | CTBI's basic earnings per share increased $0.16 per share from first quarter 2010 and remained flat to fourth quarter 2010.  Earnings for the first quarter 2011 were positively impacted by increased net interest income compared to both prior year first quarter and prior quarter.  Provision for loan loss increased from prior quarter but decreased from prior year first quarter, partially offset by increased noninterest expense. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | CTBI’s net interest margin increased from 4.20% for the quarter ended March 31, 2010 and 4.15% for the quarter ended December 31, 2010, to 4.27% for the quarter ended March 31, 2011 as deposit expense decreased. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Nonperforming loans at $57.4 million increased from the $54.9 million at March 31, 2010 but decreased from the $62.0 million at December 31, 2010.  The decrease from prior quarter was in the nonaccrual classification.  Nonperforming assets at $105.2 million increased $11.2 million from prior year first quarter and $0.1 million from prior quarter. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | The loan loss provision for the quarter increased $0.4 million from prior quarter but decreased $1.3 million from prior year same quarter. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Net loan charge-offs for the quarter ended March 31, 2011 of $4.0 million, or 0.63% of average loans annualized, was an increase from the $3.5 million, or 0.58%, experienced for the first quarter 2010 and from prior quarter’s $3.4 million, or 0.54%. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Our loan loss reserve as a percentage of total loans outstanding at March 31, 2011 was 1.36% compared to 1.34% at December 31, 2010 and 1.44% at March 31, 2010.  The allowance-to-legacy loan ratio, which excludes loans acquired from First National Bank of LaFollette (“LaFollette”), was 1.42%, 1.40%, and 1.44%, respectively, at March 31, 2011, December 31, 2010, and March 31, 2010. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Noninterest income increased for the quarter ended March 31, 2011 compared to same period 2010 but decreased from prior quarter.  The increase from prior year was primarily attributable to increased deposit service charges and trust revenue, while the decrease from prior quarter was primarily impacted by the variance in the fair value adjustments of our mortgage servicing rights as well as a decrease in deposit service charges offset by increased trust revenue and gains on sales of loans. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Our loan portfolio increased $157.1 million from prior year, including $118.6 million from the LaFollette acquisition, but decreased $19.1 million from prior quarter. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Our investment portfolio increased $90.7 million from prior year, including the $29.8 million increase from the LaFollette acquisition, and $71.7 million during the quarter. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Deposits, including repurchase agreements, increased $269.6 million from prior year, including $164.5 million from LaFollette, and $92.3 million from prior quarter. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Our tangible common equity/tangible assets ratio remains strong at 8.19%. |
|---------------|---------------------------------------------------------------------------|

|                                   |   | Three Months Ended |   |
|----------------------------------------|--------|--------------------|--------|
|                                   |   | March 31           |   |
|                                   |   | 2011               |   |   | 2010 |   |
| Return on average shareholders' equity |   |               | 10.96  | % |   |   | 8.47 | % |
| Return on average assets               |   |               | 1.11   | % |   |   | 0.88 | % |

|                             |   | Three Months Ended |   |
|----------------------------------|--------|--------------------|--------|
|                             |   | March 31           |   |
|                             |   | 2011               |   |   | 2010 |   |
| Yield on interest earning assets |   |               | 5.21   | % |   |   | 5.49 | % |
| Cost of interest bearing funds   |   |               | 1.19   | % |   |   | 1.63 | % |
| Net interest spread              |   |               | 4.02   | % |   |   | 3.86 | % |
|                             |   |               |   |   |   |   |   |   |
| Net interest margin              |   |               | 4.27   | % |   |   | 4.20 | % |

|                                                             |   | Three Months Ended |      |
|------------------------------------------------------------------|--------|--------------------|-----------|
|                                                             |   | March 31           |      |
| (in thousands)                                                   |   | 2011               |      |   | 2010 |   |
| Allowance balance at January 1                                   |   | $                  | 34,805    |   |   | $ | 32,643 |   |
| Additions to allowance charged against operations                |   |               | 4,387     |   |   |   | 5,722 |   |
| Recoveries credited to allowance                                 |   |               | 622       |   |   |   | 825 |   |
| Losses charged against allowance                                 |   |               | (4,662    | ) |   |   | (4,316 | ) |
| Allowance balance at March 31                                    |   | $                  | 35,152    |   |   | $ | 34,874 |   |
|                                                             |   |               |      |   |   |   |   |   |
| Allowance for loan losses to period-end loans                    |   |               | 1.36      | % |   |   | 1.44 | % |
| Average loans, net of unearned income                            |   | $                  | 2,594,746 |   |   | $ | 2,437,105 |   |
| Provision for loan losses to average loans, annualized           |   |               | 0.69      | % |   |   | 0.95 | % |
| Loan charge-offs net of recoveries, to average loans, annualized |   |               | 0.63      | % |   |   | 0.58 | % |

| (in thousands)                    |   | Nonaccrual Loans |   |   | As a % of Loan Balances by Category |   |   | Accruing Loans Past Due 90 Days or More |   |   | As a % of Loan Balances by Category |   |   | Total Loan Balances |   |
|-----------------------------------|--------|------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------------|--------|--------|-------------------------------------|--------|--------|---------------------|--------|
| March 31, 2011                    |   |             |   |   |                                |   |   |                                    |   |   |                                |   |   |                |   |
| Commercial construction           |   | $                | 10,372 |   |                                |   | 7.75   | %                                       |   | $      | 2,022                               |   |   |                | 1.51   | % |   | $ | 133,780 |   |
| Commercial secured by real estate |   |             | 13,878 |   |                                |   | 1.75   | %                                       |   |   | 12,374                              |   |   |                | 1.56   | % |   |   | 791,833 |   |
| Equipment lease financing         |   |             | 0      |   |                                |   | 0.00   | %                                       |   |   | 0                                   |   |   |                | 0.00   | % |   |   | 12,359 |   |
| Commercial other                  |   |             | 7,641  |   |                                |   | 1.93   | %                                       |   |   | 769                                 |   |   |                | 0.19   | % |   |   | 395,334 |   |
| Real estate construction          |   |             | 949    |   |                                |   | 1.90   | %                                       |   |   | 116                                 |   |   |                | 0.23   | % |   |   | 50,046 |   |
| Real estate mortgage              |   |             | 6,015  |   |                                |   | 0.94   | %                                       |   |   | 2,595                               |   |   |                | 0.41   | % |   |   | 637,839 |   |
| Home equity                       |   |             | 147    |   |                                |   | 0.18   | %                                       |   |   | 214                                 |   |   |                | 0.26   | % |   |   | 83,767 |   |
| Consumer direct                   |   |             | 0      |   |                                |   | 0.00   | %                                       |   |   | 47                                  |   |   |                | 0.04   | % |   |   | 121,685 |   |
| Consumer indirect                 |   |             | 0      |   |                                |   | 0.00   | %                                       |   |   | 250                                 |   |   |                | 0.07   | % |   |   | 359,405 |   |
| Total                             |   | $                | 39,002 |   |                                |   | 1.51   | %                                       |   | $      | 18,387                              |   |   |                | 0.71   | % |   | $ | 2,586,048 |   |

| (in thousands)                    |   | Nonaccrual Loans |   |   | As a % of Loan Balances by Category |   |   | Accruing Loans Past Due 90 Days or More |   |   | As a % of Loan Balances by Category |   |   | Total Loan Balances |   |
|-----------------------------------|--------|------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------------|--------|--------|-------------------------------------|--------|--------|---------------------|--------|
| December 31, 2010                 |   |             |   |   |                                |   |   |                                    |   |   |                                |   |   |                |   |
| Commercial construction           |   | $                | 13,138 |   |                                |   | 9.73   | %                                       |   | $      | 1,178                               |   |   |                | 0.87   | % |   | $ | 135,091 |   |
| Commercial secured by real estate |   |             | 15,608 |   |                                |   | 1.93   | %                                       |   |   | 9,641                               |   |   |                | 1.19   | % |   |   | 807,049 |   |
| Equipment lease financing         |   |             | 0      |   |                                |   | 0.00   | %                                       |   |   | 0                                   |   |   |                | 0.00   | % |   |   | 14,151 |   |
| Commercial other                  |   |             | 9,338  |   |                                |   | 2.40   | %                                       |   |   | 1,692                               |   |   |                | 0.44   | % |   |   | 388,746 |   |
| Real estate construction          |   |             | 636    |   |                                |   | 1.12   | %                                       |   |   | 372                                 |   |   |                | 0.65   | % |   |   | 56,910 |   |
| Real estate mortgage              |   |             | 6,137  |   |                                |   | 0.98   | %                                       |   |   | 3,337                               |   |   |                | 0.53   | % |   |   | 623,851 |   |
| Home equity                       |   |             | 164    |   |                                |   | 0.19   | %                                       |   |   | 226                                 |   |   |                | 0.27   | % |   |   | 85,103 |   |
| Consumer direct                   |   |             | 0      |   |                                |   | 0.00   | %                                       |   |   | 70                                  |   |   |                | 0.06   | % |   |   | 126,046 |   |
| Consumer indirect                 |   |             | 0      |   |                                |   | 0.00   | %                                       |   |   | 498                                 |   |   |                | 0.14   | % |   |   | 368,233 |   |
| Total                             |   | $                | 45,021 |   |                                |   | 1.73   | %                                       |   | $      | 17,014                              |   |   |                | 0.65   | % |   | $ | 2,605,180 |   |

| (in thousands)                      |   | March 312011 |   |   | December 312010 |   |
|-------------------------------------|--------|--------------|--------|--------|-----------------|--------|
| 1-4 family                          |   | $            | 20,455 |   |            | $      | 18,792 |   |
| Agricultural/farmland               |   |         | 0      |   |            |   | 58 |   |
| Construction/land development/other |   |         | 12,663 |   |            |   | 10,207 |   |
| Multifamily                         |   |         | 4,594  |   |            |   | 4,594 |   |
| Non-farm/non-residential            |   |         | 9,955  |   |            |   | 9,284 |   |
| Total other real estate owned       |   | $            | 47,667 |   |            | $      | 42,935 |   |

| Item 1.  | Legal Proceedings                                                                                                                                                                                                                | None                     |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|     |                                                                                                                                                                                                                             |                     |
| Item 1A. | Risk Factors                                                                                                                                                                                                                     | None                     |
|     |                                                                                                                                                                                                                             |                     |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                      | None                     |
|     |                                                                                                                                                                                                                             |                     |
| Item 3.  | Defaults Upon Senior Securities                                                                                                                                                                                                  | None                     |
|     |                                                                                                                                                                                                                             |                     |
| Item 4.  | Reserved                                                                                                                                                                                                                         | None                     |
|     |                                                                                                                                                                                                                             |                     |
| Item 5.  | Other Information:                                                                                                                                                                                                               |                     |
|     | CTBI’s Principal Executive Officer and Principal Financial Officer have furnished to the SEC the certifications with respect to this Form 10-Q that are required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 |                     |
|     |                                                                                                                                                                                                                             |                     |
| Item 6.  | a. Exhibits:                                                                                                                                                                                                                     |                     |
|     | (1)   Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                     | Exhibit 31.1Exhibit 31.2 |
|     | (2)   Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                     | Exhibit 32.1Exhibit 32.2 |

|                    | COMMUNITY TRUST BANCORP, INC. |                                            |
|-------------------------|-------------------------------|-------------------------------------------------|
|                    |                          |                                            |   |
| Date:  May 9, 2011 | By:                           | /s/ Jean R. Hale                           |   |
|                    |                          | Jean R. Hale                                    |   |
|                    |                          | Chairman, President and Chief Executive Officer |   |
|                    |                          |                                            |   |

|   |   | /s/ Kevin J. Stumbo               |   |
|--------|--------|----------------------------------------|--------|
|   |   | Kevin J. Stumbo                        |   |
|   |   | Executive Vice President and Treasurer |   |
|   |   |  (Principal Financial Officer)    |   |

----