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| UNITED STATES                                                   |
|-----------------------------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                              |
| Washington, D.C. 20549                                          |
|                                                            |
| FORM 10-K                                                       |
| (Mark One)                                                      |
| x                                                               | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) |
| OF THE SECURITIES EXCHANGE ACT OF 1934                          |
| For the fiscal year ended December 31, 2010                     |
| OR                                                              |
| o                                                               | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) |
| OF THE SECURITIES EXCHANGE ACT OF 1934                          |
| For the transition period from ______________ to ______________ |
|                                                            |
| Commission file number 0-6233                                   |
|                                                            |
| 1ST SOURCE CORPORATION                                          |
| (Exact name of registrant as specified in its charter)          |

| Indiana                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 35-1068133                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|
| (State or other jurisdiction of incorporation ororganization)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (I.R.S. EmployerIdentification No.)                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                 |
| 100 North Michigan StreetSouth Bend, Indiana                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |  46601                                                          |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (Zip Code)                                                           |
| Registrant’s telephone number, including area code: (574) 235-2000                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Securities registered pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Title of each classCommon Stock – without par value                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Name of each exchange on which registeredThe NASDAQ Stock Market LLC |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Securities registered pursuant to section 12(g) of the Act: None                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     Yes    o No    x                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.      Yes    o No    x                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     x      No    o                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes    o      No    o |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.     x                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | o      | Accelerated filer                                                    | x | Non-accelerated filer | o |     Smaller reporting company | o |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes    o      No    x                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The aggregate market value of the voting common stock held by non-affiliates of the registrant as of June 30, 2010 was $230,698,887                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The number of shares outstanding of each of the registrant’s classes of stock as of February 14, 2011:Common Stock, without par value – 24,299,962 shares                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| DOCUMENTS INCORPORATED BY REFERENCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Portions of the annual proxy statement for the 2011 annual meeting of shareholders to be held April 21, 2011, are incorporated by reference into Part III.                                                                                                                                                                                                                                                                                                                                                    |

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| TABLE OF CONTENTS   |
|---------------------|
|                |
|                |
|                |
| Part I              |   |
|                |
| Item 1.             | Business |   3 |
| Item 1A.            | Risk Factors |   8 |
| Item 1B.            | Unresolved Staff Comments |   10 |
| Item 2.             | Properties |   10 |
| Item 3.             | Legal Proceedings |   10 |
| Item 4.             | (Removed and Reserved) |   10 |
|                |
|                |
| Part II             |   |
|                |
| Item 5.             | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   11 |
| Item 6.             | Selected Financial Data |   12 |
| Item 7.             | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   13 |
| Item 7A.            | Quantitative and Qualitative Disclosures About Market Risk |   29 |
| Item 8.             | Financial Statements and Supplementary Data |   30 |
|                | Reports of Independent Registered Public Accounting Firm |   30 |
|                | Consolidated Statements of Financial Condition |   31 |
|                | Consolidated Statements of Income |   32 |
|                | Consolidated Statements of Shareholder’s Equity |   33 |
|                | Consolidated Statements of Cash Flow |   34 |
|                | Notes to Consolidated Financial Statements |   35 |
| Item 9.             | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |   61 |
| Item 9A.            | Controls and Procedures |   62 |
| Item 9B.            | Other Information |   62 |
|                |
|                |
| Part III            |   |
|                |
| Item 10.            | Directors, Executive Officers and Corporate Governance |   62 |
| Item 11.            | Executive Compensation |   62 |
| Item 12.            | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |   63 |
| Item 13.            | Certain Relationships and Related Transactions, and Director Independence |   63 |
| Item 14.            | Principal Accounting Fees and Services |   63 |
|                |
|                |
| Part IV             |   |
|                |
| Item 15.            | Exhibits and Financial Statement Schedules |   63 |
| Signatures          |   65 |
| Exhibit 10(c)       |   |
| Exhibit 10(g)  |   |
| Exhibit 10(l)  |   |
| Exhibit 23     |   |
| Exhibit 31.1   |   |
| Exhibit 31.2   |   |
| Exhibit 32.1   |   |
| Exhibit 32.2   |   |
| Exhibit 99.1   |   |
|                |
|                |

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Item 1.  Business

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| ·  | The period of the Amended Restoration Plan was extended from seven to eight years. |
|--------------|------------------------------------------------------------------------------------|

| ·  | The FDIC announced that it will not impose any further special assessments under the final rule it adopted in May 2009. |
|--------------|-------------------------------------------------------------------------------------------------------------------------|

| ·  | The FDIC announced plans to maintain assessment rates at their current levels through the end of 2010. The FDIC also immediately adopted a uniform three basis point increase in assessment rates effective January 1, 2011 to ensure that the DIF returns to 1.15 percent within the Amended Restoration Plan period of eight years. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | The FDIC announced that, at least semi-annually following the adoption of the Amended Restoration Plan, it will update its loss and income projections for the DIF. The FDIC also announced that it may, if necessary, adopt a new rule prior to the end of the eight-year period to increase assessment rates in order to return the reserve ratio to 1.15 percent. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 1A.  Risk Factors.

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Item 1B.  Unresolved Staff Comments.

Item 2.  Properties.

Item 3.  Legal Proceedings.

Item 4.  (Removed and Reserved).

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Table of Contents

Item 5.

|                                                                                 |   | 2010 Sales Price |   |   | Cash Dividends |   |   | 2009 Sales Price |   |   | Cash Dividends |   |
|--------------------------------------------------------------------------------------|--------|------------------|--------|--------|----------------|--------|--------|------------------|--------|--------|----------------|--------|
| Common Stock Prices  (quarter ended)                                       |   | High             |   |   | Low            |   |   | Paid             |   |   | High           |   |   | Low |   |   | Paid |   |
| March 31                                                                             |   | $                | 18.74  |   |           | $      | 14.25  |             |   | $      | .15            |   |   | $ | 23.92 |   |   | $ | 14.16 |   |   | $ | .14 |   |
| June 30                                                                              |   |             | 20.36  |   |           |   | 16.58  |             |   |   | .15            |   |   |   | 21.98 |   |   |   | 15.36 |   |   |   | .14 |   |
| September 30                                                                         |   |             | 18.99  |   |           |   | 15.98  |             |   |   | .15            |   |   |   | 17.94 |   |   |   | 14.52 |   |   |   | .15 |   |
| December 31                                                                          |   |             | 20.75  |   |           |   | 17.01  |             |   |   | .16            |   |   |   | 16.60 |   |   |   | 13.84 |   |   |   | .16 |   |
| As of February 14, 2011, there were 984 holders of record of 1st Source common stock |   |             |   |   |           |   |   |             |   |   |           |   |   |   |   |   |   |

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|                                                                                                                                                                             |             |           | Total Number of            | Maximum Number (or Approximate   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|----------------|----------------------------|----------------------------------|
|                                                                                                                                                                             |             |           | Shares Purchased as        | Dollar Value) of Shares that     |
|                                                                                                                                                                             | Total Number of  | Average Price  | Part of Publicly Announced |  may yet be Purchased Under |
| Period                                                                                                                                                                           | Shares Purchased | Paid Per Share | Plans or Programs*         | the Plans or Programs            |
| October 01 - 31, 2010                                                                                                                                                            | 9,400            | 17.85          | 9,400                      | 1,259,812                        |
| November 01 - 30, 2010                                                                                                                                                           | 21,295           | 18.48          | 21,295                     | 1,238,517                        |
| December 01 - 31, 2010                                                                                                                                                           | 145              | 20.62          | 145                        | 1,238,372                        |
| *1st Source maintains a stock repurchase plan that was authorized by the Board of Directors on April 26, 2007. Under the terms of the plan, 1st Source may repurchase up to      |
| 2,000,000 shares of its common stock when favorable conditions exist on the open market or through private transactions at various prices from time to time. Since the inception |
| of the plan, 1st Source has repurchased a total of 761,628 shares.                                                                                                               |

Item 6.  Selected Financial Data.

| (Dollars in thousands, except per share amounts)                                                                                                                 |   | 2010   |      |   | 2009   |   |      | 2008   |   |   | 2007 (2)  |   |   | 2006   |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Interest income                                                                                                                                                  |   | $      | 200,626   |   |   | $      | 200,412   |   |   | $      | 235,308   |   |   | $      | 253,587   |   |   | $ | 208,994 |   |
| Interest expense                                                                                                                                                 |   |   | 53,129    |   |   |   | 72,200    |   |   |   | 103,148   |   |   |   | 134,677   |   |   |   | 102,561 |   |
| Net interest income                                                                                                                                              |   |   | 147,497   |   |   |   | 128,212   |   |   |   | 132,160   |   |   |   | 118,910   |   |   |   | 106,433 |   |
| Provision for (recovery of) loan and lease losses                                                                                                                |   |   | 19,207    |   |   |   | 31,101    |   |   |   | 16,648    |   |   |   | 7,534     |   |   |   | (2,736 | ) |
| Net interest income after provision for (recovery of)                                                                                                            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| loan and lease losses                                                                                                                                            |   |   | 128,290   |   |   |   | 97,111    |   |   |   | 115,512   |   |   |   | 111,376   |   |   |   | 109,169 |   |
| Noninterest income                                                                                                                                               |   |   | 86,691    |   |   |   | 85,530    |   |   |   | 84,003    |   |   |   | 70,619    |   |   |   | 76,585 |   |
| Noninterest expense                                                                                                                                              |   |   | 154,505   |   |   |   | 151,123   |   |   |   | 153,114   |   |   |   | 140,312   |   |   |   | 126,211 |   |
| Income before income taxes                                                                                                                                       |   |   | 60,476    |   |   |   | 31,518    |   |   |   | 46,401    |   |   |   | 41,683    |   |   |   | 59,543 |   |
| Income taxes                                                                                                                                                     |   |   | 19,232    |   |   |   | 6,028     |   |   |   | 13,015    |   |   |   | 11,144    |   |   |   | 20,246 |   |
| Net income                                                                                                                                                       |   |   | 41,244    |   |   |   | 25,490    |   |   |   | 33,386    |   |   |   | 30,539    |   |   |   | 39,297 |   |
| Net income available to common shareholders                                                                                                                      |   | $      | 29,655    |   |   | $      | 19,074    |   |   | $      | 33,386    |   |   | $      | 30,539    |   |   | $ | 39,297 |   |
| Assets at year-end                                                                                                                                               |   | $      | 4,445,281 |   |   | $      | 4,542,100 |   |   | $      | 4,464,174 |   |   | $      | 4,447,104 |   |   | $ | 3,807,315 |   |
| Long-term debt and mandatorily redeemable                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| securities at year-end                                                                                                                                           |   |   | 24,816    |   |   |   | 19,761    |   |   |   | 29,832    |   |   |   | 34,702    |   |   |   | 43,761 |   |
| Shareholders’ equity at year-end (3)                                                                                                                       |   |   | 486,383   |   |   |   | 570,320   |   |   |   | 453,664   |   |   |   | 430,504   |   |   |   | 368,904 |   |
| Basic net income per common share (1)                                                                                                                            |   |   | 1.21      |   |   |   | 0.79      |   |   |   | 1.38      |   |   |   | 1.30      |   |   |   | 1.74 |   |
| Diluted net income per common share (1)                                                                                                                          |   |   | 1.21      |   |   |   | 0.79      |   |   |   | 1.37      |   |   |   | 1.28      |   |   |   | 1.72 |   |
| Cash dividends per common share (1)                                                                                                                              |   |   | .610      |   |   |   | .590      |   |   |   | .580      |   |   |   | .560      |   |   |   | .534 |   |
| Dividend payout ratio                                                                                                                                            |   |   | 50.41     | %      |   |   | 74.68     | %      |   |   | 42.34     | %      |   |   | 43.75     | % |   |   | 31.05 | % |
| Return on average assets                                                                                                                                         |   |   | 0.91      | %      |   |   | 0.57      | %      |   |   | 0.76      | %      |   |   | 0.74      | % |   |   | 1.11 | % |
| Return on average common equity                                                                                                                                  |   |   | 6.10      | %      |   |   | 4.07      | %      |   |   | 7.52      | %      |   |   | 7.47      | % |   |   | 10.98 | % |
| Average common equity to average assets                                                                                                                          |   |   | 10.69     | %      |   |   | 10.40     | %      |   |   | 10.09     | %      |   |   | 9.85      | % |   |   | 10.07 | % |
|                                                                                                                                                             |   |
| (1) The computation of per common share data gives retroactive recognition to a 10% stock dividend declared July 27, 2006.                                       |   |
| (2) Results for 2007 and later include the acquisition of FINA Bancorp, Inc.                                                                                     |   |
| (3) Results for 2009 include the issuance of Preferred Stock under TARP. Refer to Note 13 of the Notes to Consolidated Financial Statements for further details. |   |

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Item 7.

| ·  | Local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Changes in the level of nonperforming assets and charge-offs. |
|--------------|---------------------------------------------------------------|

| ·  | Changes in estimates of future cash reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Inflation, interest rate, securities market, and monetary fluctuations. |
|--------------|-------------------------------------------------------------------------|

| ·  | Political instability. |
|--------------|------------------------|

| ·  | Acts of war or terrorism. |
|--------------|---------------------------|

| ·  | Substantial increases in the cost of fuel. |
|--------------|--------------------------------------------|

| ·  | The timely development and acceptance of new products and services and perceived overall value of these products and services by others. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Changes in consumer spending, borrowings, and savings habits. |
|--------------|---------------------------------------------------------------|

| ·  | Changes in the financial performance and/or condition of our borrowers. |
|--------------|-------------------------------------------------------------------------|

| ·  | Technological changes. |
|--------------|------------------------|

| ·  | Acquisitions and integration of acquired businesses. |
|--------------|------------------------------------------------------|

| ·  | The ability to increase market share and control expenses. |
|--------------|------------------------------------------------------------|

| ·  | Changes in the competitive environment among bank holding companies. |
|--------------|----------------------------------------------------------------------|

| ·  | The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) with which we and our subsidiaries must comply. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | The effect of changes in accounting policies and practices and auditing requirements, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Changes in our organization, compensation, and benefit plans. |
|--------------|---------------------------------------------------------------|

| ·  | The costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquires and the results of regulatory examinations or reviews. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Greater than expected costs or difficulties related to the integration of new products and lines of business. |
|--------------|---------------------------------------------------------------------------------------------------------------|

| ·  | Our success at managing the risks described in Item 1A. Risk Factors. |
|--------------|-----------------------------------------------------------------------|

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|                               |   |  2010 |      |  2009 |     |  2008 |
|------------------------------------|--------|------------|-----------|------------|----------|------------|
|                               |   |       |      |       | Interest |       |   |   |   |   |   |   | Interest |   |   |   |   |   |   |   | Interest |   |   |   |
|                               |   | Average    |      |       | Income/  |       | Yield/ |   |   | Average |   |   | Income/ |   | Yield/ |   |   | Average |   |   | Income/ |   | Yield/ |   |
| (Dollars in thousands)             |   | Balance    |      |       | Expense  |       | Rate |   |   | Balance |   |   | Expense |   | Rate |   |   | Balance |   |   | Expense |   | Rate |   |
| ASSETS                             |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities:             |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                            |   | $          | 743,838   |       |     | $          | 20,466 |   | 2.75 | % |   | $ | 629,229 |   |   | $ | 17,594 |   | 2.80 | % |   | $ | 491,061 |   |   | $ | 22,170 |   | 4.51 | % |
| Tax-exempt                         |   |       | 170,415   |       |     |       | 8,201 |   | 4.81 |   |   |   | 205,796 |   |   |   | 9,801 |   | 4.76 |   |   |   | 222,751 |   |   |   | 10,692 |   | 4.80 |   |
| Mortgages held for sale            |   |       | 52,097    |       |     |       | 2,430 |   | 4.66 |   |   |   | 74,173 |   |   |   | 3,907 |   | 5.27 |   |   |   | 33,925 |   |   |   | 2,069 |   | 6.10 |   |
| Net loans and leases               |   |       | 3,109,508 |       |     |       | 171,843 |   | 5.53 |   |   |   | 3,154,820 |   |   |   | 171,669 |   | 5.44 |   |   |   | 3,263,276 |   |   |   | 202,539 |   | 6.21 |   |
| Other investments                  |   |       | 131,627   |       |     |       | 1,061 |   | 0.81 |   |   |   | 135,494 |   |   |   | 1,228 |   | 0.91 |   |   |   | 57,601 |   |   |   | 1,425 |   | 2.47 |   |
| Total earning assets               |   |       | 4,207,485 |       |     |       | 204,001 |   | 4.85 |   |   |   | 4,199,512 |   |   |   | 204,199 |   | 4.86 |   |   |   | 4,068,614 |   |   |   | 238,895 |   | 5.87 |   |
| Cash and due from banks            |   |       | 60,977    |       |     |       |   |   |   |   |   |   | 59,626 |   |   |   |   |   |   |   |   |   | 83,270 |   |   |   |   |   |   |   |
| Reserve for loan and               |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| lease losses                       |   |       | (89,656   | )          |     |       |   |   |   |   |   |   | (85,095 | ) |   |   |   |   |   |   |   |   | (71,358 | ) |   |   |   |   |   |   |
| Other assets                       |   |       | 364,896   |       |     |       |   |   |   |   |   |   | 331,809 |   |   |   |   |   |   |   |   |   | 319,997 |   |   |   |   |   |   |   |
| Total assets                       |   | $          | 4,543,702 |       |     |       |   |   |   |   |   | $ | 4,505,852 |   |   |   |   |   |   |   |   | $ | 4,400,523 |   |   |   |   |   |   |   |
| LIABILITIES AND                    |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHAREHOLDERS’ EQUITY         |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits          |   | $          | 3,121,167 |       |     | $          | 44,605 |   | 1.43 | % |   | $ | 3,146,135 |   |   | $ | 63,521 |   | 2.02 | % |   | $ | 2,996,830 |   |   | $ | 86,903 |   | 2.90 | % |
| Short-term borrowings              |   |       | 164,191   |       |     |       | 800 |   | 0.49 |   |   |   | 185,647 |   |   |   | 1,115 |   | 0.60 |   |   |   | 386,850 |   |   |   | 7,626 |   | 1.97 |   |
| Subordinated notes                 |   |       | 89,692    |       |     |       | 6,589 |   | 7.35 |   |   |   | 89,692 |   |   |   | 6,589 |   | 7.35 |   |   |   | 90,960 |   |   |   | 6,714 |   | 7.38 |   |
| Long-term debt and                 |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mandatorily redeemable             |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities                         |   |       | 27,149    |       |     |       | 1,135 |   | 4.18 |   |   |   | 20,448 |   |   |   | 975 |   | 4.77 |   |   |   | 34,472 |   |   |   | 1,905 |   | 5.53 |   |
| Total interest bearing liabilities |   |       | 3,402,199 |       |     |       | 53,129 |   | 1.56 |   |   |   | 3,441,922 |   |   |   | 72,200 |   | 2.10 |   |   |   | 3,509,112 |   |   |   | 103,148 |   | 2.94 |   |
| Noninterest bearing deposits       |   |       | 484,028   |       |     |       |   |   |   |   |   |   | 427,513 |   |   |   |   |   |   |   |   |   | 377,440 |   |   |   |   |   |   |   |
| Other liabilities                  |   |       | 67,011    |       |     |       |   |   |   |   |   |   | 69,953 |   |   |   |   |   |   |   |   |   | 69,823 |   |   |   |   |   |   |   |
| Shareholders' equity               |   |       | 590,464   |       |     |       |   |   |   |   |   |   | 566,464 |   |   |   |   |   |   |   |   |   | 444,148 |   |   |   |   |   |   |   |
| Total liabilities and              |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| shareholders’ equity         |   | $          | 4,543,702 |       |     |       |   |   |   |   |   | $ | 4,505,852 |   |   |   |   |   |   |   |   | $ | 4,400,523 |   |   |   |   |   |   |   |
| Net interest income                |   |       |      |       |     | $          | 150,872 |   |   |   |   |   |   |   |   | $ | 131,999 |   |   |   |   |   |   |   |   | $ | 135,747 |   |   |   |
| Net interest margin on a tax       |   |       |      |       |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equivalent basis                   |   |       |      |       |     |       |   |   | 3.59 | % |   |   |   |   |   |   |   |   | 3.14 | % |   |   |   |   |   |   |   |   | 3.34 | % |

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|                                                 |   | Increase (Decrease) due to |   |   |   |   |
|------------------------------------------------------|--------|----------------------------|--------|--------|--------|--------|
| (Dollars in thousands)                               |   | Volume                     |   |   | Rate   |   |   | Net |   |
| 2010 compared to 2009                                |   |                       |   |   |   |   |   |   |   |
| Interest earned on:                                  |   |                       |   |   |   |   |   |   |   |
| Investment securities:                               |   |                       |   |   |   |   |   |   |   |
| Taxable                                              |   | $                          | 3,181  |   |   | $      | (309 | ) |   | $ | 2,872 |   |
| Tax-exempt                                           |   |                       | (1,704 | )      |   |   | 104 |   |   |   | (1,600 | ) |
| Mortgages held for sale                              |   |                       | (1,063 | )      |   |   | (414 | ) |   |   | (1,477 | ) |
| Net loans and leases                                 |   |                       | (2,124 | )      |   |   | 2,298 |   |   |   | 174 |   |
| Other investments                                    |   |                       | (35    | )      |   |   | (132 | ) |   |   | (167 | ) |
| Total earning assets                                 |   | $                          | (1,745 | )      |   | $      | 1,547 |   |   | $ | (198 | ) |
| Interest paid on:                                    |   |                       |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                            |   | $                          | (497   | )      |   | $      | (18,419 | ) |   | $ | (18,916 | ) |
| Short-term borrowings                                |   |                       | (125   | )      |   |   | (190 | ) |   |   | (315 | ) |
| Subordinated notes                                   |   |                       | -      |   |   |   | - |   |   |   | - |   |
| Long-term debt and mandatorily redeemable securities |   |                       | 257    |   |   |   | (97 | ) |   |   | 160 |   |
| Total interest bearing liabilities                   |   | $                          | (365   | )      |   | $      | (18,706 | ) |   | $ | (19,071 | ) |
| Net interest income                                  |   | $                          | (1,380 | )      |   | $      | 20,253 |   |   | $ | 18,873 |   |
|                                                 |   |                       |   |   |   |   |   |   |   |   |   |   |
| 2009 compared to 2008                                |   |                       |   |   |   |   |   |   |   |   |   |   |
| Interest earned on:                                  |   |                       |   |   |   |   |   |   |   |   |   |   |
| Investment securities:                               |   |                       |   |   |   |   |   |   |   |   |   |   |
| Taxable                                              |   | $                          | 12,787 |   |   | $      | (17,363 | ) |   | $ | (4,576 | ) |
| Tax-exempt                                           |   |                       | (803   | )      |   |   | (88 | ) |   |   | (891 | ) |
| Mortgages held for sale                              |   |                       | 2,077  |   |   |   | (239 | ) |   |   | 1,838 |   |
| Net loans and leases                                 |   |                       | (6,405 | )      |   |   | (24,465 | ) |   |   | (30,870 | ) |
| Other investments                                    |   |                       | (371   | )      |   |   | 174 |   |   |   | (197 | ) |
| Total earning assets                                 |   | $                          | 7,285  |   |   | $      | (41,981 | ) |   | $ | (34,696 | ) |
| Interest paid on:                                    |   |                       |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                            |   | $                          | 4,560  |   |   | $      | (27,942 | ) |   | $ | (23,382 | ) |
| Short-term borrowings                                |   |                       | (2,787 | )      |   |   | (3,724 | ) |   |   | (6,511 | ) |
| Subordinated notes                                   |   |                       | (98    | )      |   |   | (27 | ) |   |   | (125 | ) |
| Long-term debt and mandatorily redeemable securities |   |                       | (695   | )      |   |   | (235 | ) |   |   | (930 | ) |
| Total interest bearing liabilities                   |   | $                          | 980    |   |   | $      | (31,928 | ) |   | $ | (30,948 | ) |
| Net interest income                                  |   | $                          | 6,305  |   |   | $      | (10,053 | ) |   | $ | (3,748 | ) |

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| (Dollars in thousands)                                    |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Noninterest income:                                       |   |   |   |   |   |   |   |   |   |
| Trust fees                                                |   | $      | 15,838 |   |   | $      | 15,036 |   |   | $ | 18,599 |   |
| Service charges on deposit accounts                       |   |   | 19,323 |   |   |   | 20,645 |   |   |   | 22,035 |   |
| Mortgage banking income                                   |   |   | 6,218  |   |   |   | 8,251  |   |   |   | 2,994 |   |
| Insurance commissions                                     |   |   | 5,074  |   |   |   | 4,930  |   |   |   | 5,363 |   |
| Equipment rental income                                   |   |   | 26,036 |   |   |   | 25,757 |   |   |   | 24,224 |   |
| Other income                                              |   |   | 11,909 |   |   |   | 9,224  |   |   |   | 9,293 |   |
| Gain on sale of certain Investment Advisor assets         |   |   | -      |   |   |   | -      |   |   |   | 11,492 |   |
| Investment securities and other investment gains (losses) |   |   | 2,293  |   |   |   | 1,687  |   |   |   | (9,997 | ) |
| Total noninterest income                                  |   | $      | 86,691 |   |   | $      | 85,530 |   |   | $ | 84,003 |   |

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| (Dollars in thousands)                             |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Noninterest expense:                               |   |   |    |   |   |   |    |   |   |
| Salaries and employee benefits                     |   | $      | 75,815  |   |   | $      | 72,483  |   |   | $ | 76,965 |   |
| Net occupancy expense                              |   |   | 8,788   |   |   |   | 9,185   |   |   |   | 9,698 |   |
| Furniture and equipment expense                    |   |   | 12,543  |   |   |   | 13,980  |   |   |   | 15,095 |   |
| Depreciation — leased equipment              |   |   | 20,715  |   |   |   | 20,515  |   |   |   | 19,450 |   |
| Professional fees                                  |   |   | 6,353   |   |   |   | 4,399   |   |   |   | 8,446 |   |
| Supplies and communications                        |   |   | 5,499   |   |   |   | 5,916   |   |   |   | 6,782 |   |
| Business development and marketing expense         |   |   | 3,774   |   |   |   | 3,488   |   |   |   | 3,749 |   |
| Loan and lease collection and repossession expense |   |   | 6,227   |   |   |   | 4,283   |   |   |   | 1,162 |   |
| FDIC and other insurance                           |   |   | 6,256   |   |   |   | 8,362   |   |   |   | 2,601 |   |
| Intangible asset amortization                      |   |   | 1,324   |   |   |   | 1,352   |   |   |   | 1,393 |   |
| Other expense                                      |   |   | 7,211   |   |   |   | 7,160   |   |   |   | 7,773 |   |
| Total noninterest expense                          |   | $      | 154,505 |   |   | $      | 151,123 |   |   | $ | 153,114 |   |

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| (Dollars in thousands)                                                                                                                                                                  |   | 2010   |      |   | 2009   |   |      | 2008   |   |   | 2007      |   |   | 2006   |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Commercial and agricultural loans                                                                                                                                                       |   | $      | 530,228   |   |   | $      | 546,222   |   |   | $      | 643,440   |   |   | $      | 593,806   |   |   | $ | 478,310 |   |
| Auto, light truck and environmental equipment                                                                                                                                           |   |   | 396,500   |   |   |   | 349,741   |   |   |   | 353,838   |   |   |   | 305,238   |   |   |   | 317,604 |   |
| Medium and heavy duty truck                                                                                                                                                             |   |   | 162,824   |   |   |   | 204,545   |   |   |   | 243,375   |   |   |   | 300,469   |   |   |   | 341,744 |   |
| Aircraft financing                                                                                                                                                                      |   |   | 614,357   |   |   |   | 617,384   |   |   |   | 632,121   |   |   |   | 587,022   |   |   |   | 498,914 |   |
| Construction equipment financing                                                                                                                                                        |   |   | 285,634   |   |   |   | 313,300   |   |   |   | 375,983   |   |   |   | 377,785   |   |   |   | 305,976 |   |
| Commercial real estate                                                                                                                                                                  |   |   | 594,729   |   |   |   | 580,709   |   |   |   | 574,394   |   |   |   | 530,448   |   |   |   | 412,523 |   |
| Residential real estate                                                                                                                                                                 |   |   | 390,951   |   |   |   | 371,514   |   |   |   | 344,355   |   |   |   | 351,198   |   |   |   | 219,760 |   |
| Consumer loans                                                                                                                                                                          |   |   | 95,400    |   |   |   | 109,735   |   |   |   | 130,706   |   |   |   | 145,475   |   |   |   | 127,706 |   |
| Total loans and leases                                                                                                                                                                  |   | $      | 3,070,623 |   |   | $      | 3,093,150 |   |   | $      | 3,298,212 |   |   | $      | 3,191,441 |   |   | $ | 2,702,537 |   |
|                                                                                                                                                                                    |   |
| At December 31, 2010, 11.6% of total loans and leases were concentrated with auto rental and leasing and 10.9% of total loans and leases were concentrated with construction end users. |

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| (Dollars in thousands)                        |   | 0-1 Year |    |   | 1-5 Years |   |      | Over 5 Years |   |   | Total  |   |
|-----------------------------------------------|--------|----------|---------|--------|-----------|--------|-----------|--------------|--------|--------|--------|--------|
| Commercial and agricultural loans             |   | $        | 319,274 |   |      | $      | 203,476   |         |   | $      | 7,478  |   |   | $ | 530,228 |   |
| Auto, light truck and environmental equipment |   |     | 187,415 |   |      |   | 207,800   |         |   |   | 1,285  |   |   |   | 396,500 |   |
| Medium and heavy duty truck                   |   |     | 64,563  |   |      |   | 97,027    |         |   |   | 1,234  |   |   |   | 162,824 |   |
| Aircraft financing                            |   |     | 201,399 |   |      |   | 337,568   |         |   |   | 75,390 |   |   |   | 614,357 |   |
| Construction equipment financing              |   |     | 107,192 |   |      |   | 177,606   |         |   |   | 836    |   |   |   | 285,634 |   |
| Total                                         |   | $        | 879,843 |   |      | $      | 1,023,477 |         |   | $      | 86,223 |   |   | $ | 1,989,543 |   |

| Rate Sensitivity (Dollars in thousands) |   | Fixed Rate |    |   | Variable Rate |   |    | Total  |   |
|----------------------------------------------|--------|------------|---------|--------|---------------|--------|---------|--------|--------|
| 1 – 5 Years                            |   | $          | 555,463 |   |          | $      | 468,014 |   |   | $ | 1,023,477 |   |
| Over 5 Years                                 |   |       | 2,555   |   |          |   | 83,668  |   |   |   | 86,223 |   |
| Total                                        |   | $          | 558,018 |   |          | $      | 551,682 |   |   | $ | 1,109,700 |   |

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| (Dollars in thousands)                                          |   | 2010   |      |   | 2009   |   |      | 2008   |   |   | 2007      |   |   | 2006   |      |
|-----------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Amounts of loans and leases outstanding               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
| at end of period                                                |   | $      | 3,070,623 |   |   | $      | 3,093,150 |   |   | $      | 3,298,212 |   |   | $      | 3,191,441 |   |   | $ | 2,702,537 |   |
| Average amount of net loans and leases outstanding              |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| during period                                                   |   | $      | 3,109,508 |   |   | $      | 3,154,820 |   |   | $      | 3,263,276 |   |   | $      | 2,992,540 |   |   | $ | 2,566,217 |   |
| Balance of reserve for loan and lease losses                    |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| at beginning of period                                          |   | $      | 88,236    |   |   | $      | 79,776    |   |   | $      | 66,602    |   |   | $      | 58,802    |   |   | $ | 58,697 |   |
| Charge-offs:                                                    |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Commercial and agricultural loans                               |   |   | 4,000     |   |   |   | 8,809     |   |   |   | 1,580     |   |   |   | 1,841     |   |   |   | 1,038 |   |
| Auto, light truck and environmental equipment                   |   |   | 1,014     |   |   |   | 2,750     |   |   |   | 234       |   |   |   | 1,770     |   |   |   | 340 |   |
| Medium and heavy duty truck                                     |   |   | 1,879     |   |   |   | 2,071     |   |   |   | 924       |   |   |   | 569       |   |   |   | - |   |
| Aircraft financing                                              |   |   | 6,507     |   |   |   | 7,812     |   |   |   | 462       |   |   |   | 378       |   |   |   | 1,126 |   |
| Construction equipment financing                                |   |   | 2,372     |   |   |   | 1,476     |   |   |   | 1,695     |   |   |   | 799       |   |   |   | 118 |   |
| Commercial real estate                                          |   |   | 6,219     |   |   |   | 2,654     |   |   |   | 761       |   |   |   | 340       |   |   |   | 28 |   |
| Residential real estate                                         |   |   | 486       |   |   |   | 99        |   |   |   | 118       |   |   |   | 16        |   |   |   | 101 |   |
| Consumer loans                                                  |   |   | 1,629     |   |   |   | 2,544     |   |   |   | 2,619     |   |   |   | 1,654     |   |   |   | 1,203 |   |
| Total charge-offs                                               |   |   | 24,106    |   |   |   | 28,215    |   |   |   | 8,393     |   |   |   | 7,367     |   |   |   | 3,954 |   |
| Recoveries:                                                     |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Commercial and agricultural loans                               |   |   | 1,612     |   |   |   | 3,193     |   |   |   | 1,177     |   |   |   | 2,356     |   |   |   | 1,594 |   |
| Auto, light truck and environmental equipment                   |   |   | 80        |   |   |   | 310       |   |   |   | 330       |   |   |   | 446       |   |   |   | 430 |   |
| Medium and heavy duty truck                                     |   |   | 50        |   |   |   | 5         |   |   |   | 248       |   |   |   | 64        |   |   |   | 59 |   |
| Aircraft financing                                              |   |   | 636       |   |   |   | 983       |   |   |   | 2,230     |   |   |   | 1,779     |   |   |   | 3,612 |   |
| Construction equipment financing                                |   |   | 345       |   |   |   | 444       |   |   |   | 139       |   |   |   | 19        |   |   |   | 753 |   |
| Commercial real estate                                          |   |   | 105       |   |   |   | 28        |   |   |   | -         |   |   |   | 169       |   |   |   | - |   |
| Residential real estate                                         |   |   | 47        |   |   |   | 8         |   |   |   | 171       |   |   |   | -         |   |   |   | 31 |   |
| Consumer loans                                                  |   |   | 662       |   |   |   | 603       |   |   |   | 624       |   |   |   | 421       |   |   |   | 316 |   |
| Total recoveries                                                |   |   | 3,537     |   |   |   | 5,574     |   |   |   | 4,919     |   |   |   | 5,254     |   |   |   | 6,795 |   |
| Net charge-offs (recoveries)                                    |   |   | 20,569    |   |   |   | 22,641    |   |   |   | 3,474     |   |   |   | 2,113     |   |   |   | (2,841 | ) |
| Provision for (recovery of provision for) loan and lease losses |   |   | 19,207    |   |   |   | 31,101    |   |   |   | 16,648    |   |   |   | 7,534     |   |   |   | (2,736 | ) |
| Reserves acquired in acquisitions                               |   |   | -         |   |   |   | -         |   |   |   | -         |   |   |   | 2,379     |   |   |   | - |   |
| Balance at end of period                                        |   | $      | 86,874    |   |   | $      | 88,236    |   |   | $      | 79,776    |   |   | $      | 66,602    |   |   | $ | 58,802 |   |
| Ratio of net charge-offs (recoveries) to average net            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| loans and leases outstanding                                    |   |   | 0.66      | %      |   |   | 0.72      | %      |   |   | 0.11      | %      |   |   | 0.07      | % |   |   | (0.11 | ) % |
| Ratio of reserve for loan and lease losses to net loans         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| and leases outstanding end of period                            |   |   | 2.83      | %      |   |   | 2.85      | %      |   |   | 2.42      | %      |   |   | 2.09      | % |   |   | 2.18 | % |
| Coverage ratio of reserve for loan and lease losses to          |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| nonperforming loans and leases                                  |   |   | 115.50    | %      |   |   | 104.84    | %      |   |   | 212.30    | %      |   |   | 592.49    | % |   |   | 374.75 | % |

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|                                                                     | 2010                   |   |   | 2009                   |   |   | 2008                    |    |   | 2007                   |    |   | 2006                   |    |   |
|--------------------------------------------------------------------------|------------------------|--------|--------|------------------------|--------|--------|-------------------------|---------|--------|------------------------|---------|--------|------------------------|---------|--------|
| Commercial and agricultural loans                                        |    0.44 |   | %      |    0.95 |   | %      |  0.06              |    | %      |    (0.09     | )  | %      |    (0.12     | )  | %      |
| Auto, light truck and environmental equipment                            |    0.24 |   |   |    0.73 |   |   |    (0.03 | )  |   |    0.40 |    |   |    (0.03     | )  |   |
| Medium and heavy duty truck                                              |    0.99 |   |   |    0.93 |   |   |    0.25  |    |   |    0.16 |    |   |    (0.02     | )  |   |
| Aircraft financing                                                       |    0.96 |   |   |    1.09 |   |   |    (0.30 | )  |   |    (0.26     | )  |   |    (0.54     | )  |   |
| Construction equipment financing                                         |    0.67 |   |   |    0.30 |   |   |    0.41  |    |   |    0.22 |    |   |    (0.24     | )  |   |
| Commercial real estate                                                   |    1.05 |   |   |    0.45 |   |   |    0.14  |    |   |    0.04 |    |   |    0.01 |    |   |
| Residential real estate                                                  |    0.11 |   |   |    0.03 |   |   |    (0.02      | )  |   |    0.01 |    |   |    0.03 |    |   |
| Consumer loans                                                           |    0.95 |   |   |    1.63 |   |   |    1.44  |    |   |    0.88 |    |   |    0.74 |    |   |
| Total net charge-offs (recoveries) to average portfolio loans and leases |    0.66 |   | %      |    0.72 |   | %      |    0.11  |    | %      |    0.07 |    | %      |    (0.11     | )  | %      |

|                                           |   | 2010    |   |       | 2009   |   |    | 2008   |       |   | 2007   |    |   | 2006       |   |
|------------------------------------------------|--------|---------|--------|------------|--------|--------|---------|--------|------------|--------|--------|---------|--------|------------|--------|
|                                           |   |    |   | Percent of |   |   |    |   | Percent of |   |   |    |   | Percent of |   |   |   |   | Percent of |   |   |   |   | Percent of |   |
|                                           |   |    |   | Loans and  |   |   |    |   | Loans and  |   |   |    |   | Loans and  |   |   |   |   | Loans and |   |   |   |   | Loans and |   |
|                                           |   |    |   | Leases     |   |   |    |   | Leases     |   |   |    |   | Leases     |   |   |   |   | Leases |   |   |   |   | Leases |   |
|                                           |   |    |   | in Each    |   |   |    |   | in Each    |   |   |    |   | in Each    |   |   |   |   | in Each |   |   |   |   | in Each |   |
|                                           |   |    |   | Category   |   |   |    |   | Category   |   |   |    |   | Category   |   |   |   |   | Category |   |   |   |   | Category |   |
|                                           |   |    |   | to Total   |   |   |    |   | to Total   |   |   |    |   | to Total   |   |   |   |   | to Total |   |   |   |   | to Total |   |
|                                           |   | Reserve |   | Loans and  |   |   | Reserve |   | Loans and  |   |   | Reserve |   | Loans and  |   |   | Reserve |   | Loans and |   |   | Reserve |   | Loans and |   |
| (Dollars in thousands)                         |   | Amount  |   | Leases     |   |   | Amount  |   | Leases     |   |   | Amount  |   | Leases     |   |   | Amount |   | Leases |   |   | Amount |   | Leases |   |
| Commercial and agricultural loans              |   | $       | 20,544 |       |   | 17.27  | %       |   | $          | 24,017 |   |    | 17.66  | %          |   | $ | 22,694 |   |   | 19.51 | % |   | $ | 17,393 |   |   | 18.61 | % |   | $ | 14,547 |   |   | 17.70 | % |
| Auto, light truck, and environmental equipment |   |    | 7,542  |       |   | 12.91  |    |   |       | 9,630  |   |    | 11.31  |       |   |   | 9,709 |   |   | 10.73 |   |   |   | 7,242 |   |   | 9.57 |   |   |   | 7,022 |   |   | 11.75 |   |
| Medium and heavy duty truck                    |   |    | 5,768  |       |   | 5.30   |    |   |       | 6,186  |   |    | 6.61   |       |   |   | 8,785 |   |   | 7.38 |   |   |   | 8,775 |   |   | 9.41 |   |   |   | 6,337 |   |   | 12.65 |   |
| Aircraft financing                             |   |    | 29,811 |       |   | 20.01  |    |   |       | 24,807 |   |    | 19.96  |       |   |   | 18,883 |   |   | 19.17 |   |   |   | 17,761 |   |   | 18.39 |   |   |   | 18,621 |   |   | 18.46 |   |
| Construction equipment financing               |   |    | 8,439  |       |   | 9.30   |    |   |       | 8,875  |   |    | 10.13  |       |   |   | 10,516 |   |   | 11.40 |   |   |   | 6,171 |   |   | 11.84 |   |   |   | 5,030 |   |   | 11.32 |   |
| Commercial real estate                         |   |    | 11,177 |       |   | 19.37  |    |   |       | 10,453 |   |    | 18.76  |       |   |   | 4,939 |   |   | 17.41 |   |   |   | 5,645 |   |   | 16.62 |   |   |   | 4,239 |   |   | 15.26 |   |
| Residential real estate                        |   |    | 2,518  |       |   | 12.73  |    |   |       | 880    |   |    | 12.02  |       |   |   | 755 |   |   | 10.44 |   |   |   | 675 |   |   | 11.00 |   |   |   | 433 |   |   | 8.14 |   |
| Consumer loans                                 |   |    | 1,075  |       |   | 3.11   |    |   |       | 3,388  |   |    | 3.55   |       |   |   | 3,495 |   |   | 3.96 |   |   |   | 2,940 |   |   | 4.56 |   |   |   | 2,573 |   |   | 4.72 |   |
| Total                                          |   | $       | 86,874 |       |   | 100.00 | %       |   | $          | 88,236 |   |    | 100.00 | %          |   | $ | 79,776 |   |   | 100.00 | % |   | $ | 66,602 |   |   | 100.00 | % |   | $ | 58,802 |   |   | 100.00 | % |

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| Nonperforming assets at December 31 (Dollars in thousands)     |   | 2010   |   |   | 2009   |   |    | 2008   |   |   | 2007   |   |   | 2006   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|
| Loans past due over 90 days                                    |   | $      | 361    |   |   | $      | 628     |   |   | $      | 1,022  |   |   | $      | 1,105  |   |   | $ | 116 |   |
| Nonaccrual loans and leases                                    |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural loans                              |   |   | 8,083  |   |   |   | 9,507   |   |   |   | 5,399  |   |   |   | 1,597  |   |   |   | 1,768 |   |
| Auto, light truck and environmental equipment                  |   |   | 3,330  |   |   |   | 9,200   |   |   |   | 709    |   |   |   | 507    |   |   |   | 481 |   |
| Medium and heavy duty truck                                    |   |   | 5,068  |   |   |   | 11,624  |   |   |   | 7,801  |   |   |   | 277    |   |   |   | 1,755 |   |
| Aircraft financing                                             |   |   | 17,897 |   |   |   | 6,024   |   |   |   | 9,975  |   |   |   | 1,846  |   |   |   | 8,219 |   |
| Construction equipment financing                               |   |   | 8,568  |   |   |   | 7,218   |   |   |   | 1,934  |   |   |   | 1,196  |   |   |   | 853 |   |
| Commercial real estate                                         |   |   | 26,621 |   |   |   | 32,395  |   |   |   | 6,524  |   |   |   | 1,842  |   |   |   | 739 |   |
| Residential real estate                                        |   |   | 4,958  |   |   |   | 6,605   |   |   |   | 2,623  |   |   |   | 1,739  |   |   |   | 1,475 |   |
| Consumer loans                                                 |   |   | 328    |   |   |   | 964     |   |   |   | 1,590  |   |   |   | 1,132  |   |   |   | 285 |   |
| Total nonaccrual loans and leases                              |   |   | 74,853 |   |   |   | 83,537  |   |   |   | 36,555 |   |   |   | 10,136 |   |   |   | 15,575 |   |
| Total nonperforming loans and leases                           |   |   | 75,214 |   |   |   | 84,165  |   |   |   | 37,577 |   |   |   | 11,241 |   |   |   | 15,691 |   |
| Other real estate                                              |   |   | 6,392  |   |   |   | 4,039   |   |   |   | 1,381  |   |   |   | 783    |   |   |   | 800 |   |
| Former bank premises held for sale                             |   |   | 1,200  |   |   |   | 2,490   |   |   |   | 3,356  |   |   |   | 4,038  |   |   |   | - |   |
| Repossessions:                                                 |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural loans                              |   |   | 24     |   |   |   | 164     |   |   |   | 53     |   |   |   | 45     |   |   |   | 2 |   |
| Auto, light truck and environmental equipment                  |   |   | 475    |   |   |   | 336     |   |   |   | 226    |   |   |   | 183    |   |   |   | 178 |   |
| Medium and heavy duty truck                                    |   |   | 170    |   |   |   | -       |   |   |   | 1,248  |   |   |   | 54     |   |   |   | - |   |
| Aircraft financing                                             |   |   | 4,795  |   |   |   | 9,391   |   |   |   | 16     |   |   |   | 1,850  |   |   |   | 300 |   |
| Construction equipment financing                               |   |   | 201    |   |   |   | 238     |   |   |   | 67     |   |   |   | 92     |   |   |   | 400 |   |
| Consumer loans                                                 |   |   | 5      |   |   |   | 36      |   |   |   | 59     |   |   |   | 67     |   |   |   | 95 |   |
| Total repossessions                                            |   |   | 5,670  |   |   |   | 10,165  |   |   |   | 1,669  |   |   |   | 2,291  |   |   |   | 975 |   |
| Operating leases                                               |   |   | 236    |   |   |   | 154     |   |   |   | 185    |   |   |   | 126    |   |   |   | 201 |   |
| Total nonperforming assets                                     |   | $      | 88,712 |   |   | $      | 101,013 |   |   | $      | 44,168 |   |   | $      | 18,479 |   |   | $ | 17,667 |   |
| Nonperforming loans and leases to loans and leases,            |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net of unearned discount                                       |   |   | 2.45   | %      |   |   | 2.72    | %      |   |   | 1.14   | %      |   |   | 0.35   | % |   |   | 0.58 | % |
| Nonperforming assets to loans and leases and operating leases, |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net of unearned discount                                       |   |   | 2.81   | %      |   |   | 3.15    | %      |   |   | 1.30   | %      |   |   | 0.56   | % |   |   | 0.64 | % |

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| (Dollars in thousands)                            |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| U.S. Treasury and Federal agencies securities     |   | $      | 442,612 |   |   | $      | 390,189 |   |   | $ | 293,461 |   |
| U.S. States and political subdivisions securities |   |   | 147,679 |   |   |   | 188,706 |   |   |   | 198,640 |   |
| Mortgage-backed securities - Federal agencies     |   |   | 309,046 |   |   |   | 286,415 |   |   |   | 207,954 |   |
| Corporate debt securities                         |   |   | 45,778  |   |   |   | 26,166  |   |   |   | 10,494 |   |
| Foreign government and other securities           |   |   | 5,732   |   |   |   | 675     |   |   |   | 435 |   |
| Marketable equity securities                      |   |   | 1,254   |   |   |   | 1,288   |   |   |   | 4,396 |   |
| Total investment securities available-for-sale    |   | $      | 952,101 |   |   | $      | 893,439 |   |   | $ | 715,380 |   |

| (Dollars in thousands)                                  |   | Amount |    |   | Yield  |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| U.S. Treasury and Federal agencies securities           |   |   |    |   |   |   |
| Under 1 year                                            |   | $      | 9,992   |   |   |   | 1.21 | % |
| 1 – 5 years                                       |   |   | 402,021 |   |   |   | 1.56 |   |
| 5 – 10 years                                      |   |   | 30,598  |   |   |   | 3.30 |   |
| Over 10 years                                           |   |   | -       |   |   |   | - |   |
| Total U.S. Treasury and Federal agencies securities     |   |   | 442,611 |   |   |   | 1.67 |   |
| U.S. States and political subdivisions securities       |   |   |    |   |   |   |   |   |
| Under 1 year                                            |   |   | 21,867  |   |   |   | 5.20 |   |
| 1 – 5 years                                       |   |   | 64,447  |   |   |   | 5.63 |   |
| 5 – 10 years                                      |   |   | 50,135  |   |   |   | 5.72 |   |
| Over 10 years                                           |   |   | 11,231  |   |   |   | 1.40 |   |
| Total U.S. States and political subdivisions securities |   |   | 147,680 |   |   |   | 5.27 |   |
| Corporate debt securities                               |   |   |    |   |   |   |   |   |
| Under 1 year                                            |   |   | 9,992   |   |   |   | 0.53 |   |
| 1 – 5 years                                       |   |   | 35,786  |   |   |   | 1.61 |   |
| 5 – 10 years                                      |   |   | -       |   |   |   | - |   |
| Over 10 years                                           |   |   | -       |   |   |   | - |   |
| Total Corporate debt securities                         |   |   | 45,778  |   |   |   | 1.37 |   |
| Foreign government and other securities                 |   |   |    |   |   |   |   |   |
| Under 1 year                                            |   |   | 1,131   |   |   |   | 1.79 |   |
| 1 – 5 years                                       |   |   | 4,601   |   |   |   | 1.78 |   |
| 5 – 10 years                                      |   |   | -       |   |   |   | - |   |
| Over 10 years                                           |   |   | -       |   |   |   | - |   |
| Total Foreign government and other securities           |   |   | 5,732   |   |   |   | 1.78 |   |
| Mortgage-backed securities - Federal agencies           |   |   | 309,046 |   |   |   | 3.34 |   |
| Marketable equity securities                            |   |   | 1,254   |   |   |   | 7.38 |   |
| Total investment securities available-for-sale          |   | $      | 952,101 |   |   |   | 2.77 | % |

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|                                |   | 2010   |      |   | 2009   |                       |   | 2008   |   |
|-------------------------------------|--------|--------|-----------|--------|--------|----------------------------|--------|--------|--------|
| (Dollars in thousands)              |   | Amount |      | Rate   |   |                       | Amount |   | Rate   |   |   | Amount |   | Rate |   |
| Noninterest bearing demand deposits |   | $      | 484,028   |   |   | -      | %      |   | $      | 427,513 |   |   | -      | % |   | $ | 377,440 |   |   | -      | % |
| Interest bearing demand deposits    |   |   | 1,377,549 |   |   | 0.32                       |   |   |   | 1,209,800 |   |   | 0.62 |   |   |   | 1,137,491 |   |   | 1.82 |   |
| Savings deposits                    |   |   | 321,030   |   |   | 0.13                       |   |   |   | 325,801 |   |   | 0.29 |   |   |   | 285,538 |   |   | 0.63 |   |
| Other time deposits                 |   |   | 1,422,588 |   |   | 2.79                       |   |   |   | 1,610,534 |   |   | 3.42 |   |   |   | 1,573,801 |   |   | 4.09 |   |
| Total deposits                      |   | $      | 3,605,195 |   |   |                       |   |   | $      | 3,573,648 |   |   |   |   |   | $ | 3,374,270 |   |   |   |   |

|                                                      |   | Federal Funds |    |   |       |   |   |       |   |   |       |   |
|-----------------------------------------------------------|--------|---------------|---------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                                      |   | Purchased and |    |   |       |   |   |       |   |   |       |   |
|                                                      |   | Security      |    |   |       |   |   | Other      |   |   |       |   |
|                                                      |   | Repurchase    |    |   | Commercial |   |   | Short-Term |   |   | Total      |   |
| (Dollars in thousands)                                    |   | Agreements    |    |   | Paper      |   |   | Borrowings |   |   | Borrowings |   |
| 2010                                                      |   |          |    |   |       |   |   |       |   |   |       |   |
| Balance at December 31, 2010                              |   | $             | 136,028 |   |       | $      | 3,598  |       |   | $      | 16,363     |   |   | $ | 155,989 |   |
| Maximum amount outstanding at any month-end               |   |          | 169,831 |   |       |   | 8,533  |       |   |   | 21,542     |   |   |   | 199,906 |   |
| Average amount outstanding                                |   |          | 137,368 |   |       |   | 6,866  |       |   |   | 19,957     |   |   |   | 164,191 |   |
| Weighted average interest rate during the year            |   |          | 0.27    | %      |       |   | 0.43   | %          |   |   | 1.97       | %      |   |   | 0.49 | % |
| Weighted average interest rate for outstanding amounts at |   |          |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
| December 31, 2010                                         |   |          | 0.20    | %      |       |   | 0.28   | %          |   |   | 0.68       | %      |   |   | 0.25 | % |
| 2009                                                      |   |          |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
| Balance at December 31, 2009                              |   | $             | 123,787 |   |       | $      | 4,726  |       |   | $      | 21,597     |   |   | $ | 150,110 |   |
| Maximum amount outstanding at any month-end               |   |          | 275,407 |   |       |   | 5,392  |       |   |   | 23,863     |   |   |   | 304,662 |   |
| Average amount outstanding                                |   |          | 161,529 |   |       |   | 4,048  |       |   |   | 20,070     |   |   |   | 185,647 |   |
| Weighted average interest rate during the year            |   |          | 0.40    | %      |       |   | 0.34   | %          |   |   | 2.30       | %      |   |   | 0.60 | % |
| Weighted average interest rate for outstanding amounts at |   |          |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
| December 31, 2009                                         |   |          | 0.25    | %      |       |   | 0.43   | %          |   |   | 1.80       | %      |   |   | 0.48 | % |
| 2008                                                      |   |          |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
| Balance at December 31, 2008                              |   | $             | 272,529 |   |       | $      | 4,461  |       |   | $      | 19,185     |   |   | $ | 296,175 |   |
| Maximum amount outstanding at any month-end               |   |          | 359,452 |   |       |   | 9,875  |       |   |   | 247,828    |   |   |   | 617,155 |   |
| Average amount outstanding                                |   |          | 270,503 |   |       |   | 7,694  |       |   |   | 108,653    |   |   |   | 386,850 |   |
| Weighted average interest rate during the year            |   |          | 1.97    | %      |       |   | 2.35   | %          |   |   | 1.95       | %      |   |   | 1.97 | % |
| Weighted average interest rate for outstanding amounts at |   |          |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
| December 31, 2008                                         |   |          | 0.49    | %      |       |   | 0.29   | %          |   |   | 2.92       | %      |   |   | 0.65 | % |

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|  (i)   | Available Liquidity (sum of short term borrowing capacity) greater than $500 million;                                                                                        |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                              |
|  (ii)  | Liquidity Ratio (total of net cash, short term investments and unpledged marketable assets divided by the sum of net deposits and short term liabilities) greater than 15%;  |
|        |                                                                                                                                                                              |
|  (iii) | Dependency Ratio (net potentially volatile liabilities minus short term investments divided by total earning assets minus short term investments) less than 15%; and         |
|        |                                                                                                                                                                              |
|  (iv)  | Loans to Deposits Ratio less than 100%                                                                                                                                       |

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|                                            |   | Aggregate Hypothetical Change in Net Interest Income |    |
|-------------------------------------------------|--------|------------------------------------------------------|---------|
|                                            |   | December 31, 2010                                    |    |   | December 31, 2009 |   |
|                                            |   | Estimated                                            |    | Dollar |   | Percent |   |   | Estimated |   | Dollar |   | Percent |   |
| Change in Interest Rates (dollars in thousands) |   | Net Interest Income                                  |    | Change |   | Change |   |   | Net Interest Income |   | Change |   | Change |   |
| +1.00%                                          |   | $                                                    | 149,966 |   | $ | 269 |   |   | 0.18 | % |   | $ | 151,503 |   | $ | 3,388 |   |   | 2.29 | % |
| Base                                            |   |                                                 | 149,697 |   |   | - |   |   | - |   |   |   | 148,115 |   |   | - |   |   | - |   |
| -1.00%                                          |   |                                                 | 145,056 |   |   | (4,641 | ) |   | (3.10 | ) |   |   | 141,445 |   |   | (6,670 | ) |   | (4.50 | ) |

|                             |   |   |   |      |             |   |      |              |   |   |              |    |   |         |    |    | Indeterminate |   |   |   |   |
|----------------------------------|--------|--------|--------|-----------|------------------|--------|-----------|-------------------|--------|--------|-------------------|---------|--------|--------------|---------|---------|---------------|--------|--------|--------|--------|
| (Dollars in thousands)           |   | Note   |   |      | 0 – 1 Year |   |      | 1 – 3 Years |   |   | 3 – 5 Years |    |   | Over 5 Years |    |    | maturity      |   |   | Total  |   |
| Deposits without stated maturity |   |   | -      |      |             | $      | 2,293,167 |              |   | $      | -                 |    |   | $            | -       |    |          | $      | -      |   |   | $ | - |   |   | $ | 2,293,167 |   |
| Certificates of deposit          |   |   | 10     |      |             |   | 631,192   |              |   |   | 311,032           |    |   |         | 108,130 |    |          |   | 2,094  |   |   |   | - |   |   |   | 1,052,448 |   |
| Long-term debt                   |   |   | 11     |      |             |   | 286       |              |   |   | 10,238            |    |   |         | 5,247   |    |          |   | 817    |   |   |   | 8,228 |   |   |   | 24,816 |   |
| Subordinated notes               |   |   | 12     |      |             |   | -         |              |   |   | -                 |    |   |         | -       |    |          |   | 89,692 |   |   |   | - |   |   |   | 89,692 |   |
| Operating leases                 |   |   | 18     |      |             |   | 2,269     |              |   |   | 4,877             |    |   |         | 3,837   |    |          |   | 9,563  |   |   |   | - |   |   |   | 20,546 |   |
| Purchase obligations             |   |   | -      |      |             |   | 23,464    |              |   |   | 6,385             |    |   |         | 350     |    |          |   | -      |   |   |   | - |   |   |   | 30,199 |   |
| Total contractual obligations    |   |   | $      | 2,950,378 |             |   | $         | 332,532           |   |   | $                 | 117,564 |   |         | $       | 102,166 |          |   | $      | 8,228  |   |   | $ | 3,510,868 |   |

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| Three Months Ended (Dollars in thousands, except per share amounts) |   | March 31 |   |   | June 30 |   |   | September 30 |   |   | December 31 |   |
|---------------------------------------------------------------------|--------|----------|--------|--------|---------|--------|--------|--------------|--------|--------|-------------|--------|
| 2010                                                                |   |     |   |   |    |   |   |         |   |   |        |   |
| Interest income                                                     |   | $        | 49,412 |   |    | $      | 50,050 |         |   | $      | 50,241      |   |   | $ | 50,923 |   |
| Interest expense                                                    |   |     | 14,510 |   |    |   | 13,801 |         |   |   | 13,057      |   |   |   | 11,761 |   |
| Net interest income                                                 |   |     | 34,902 |   |    |   | 36,249 |         |   |   | 37,184      |   |   |   | 39,162 |   |
| Provision for loan and lease losses                                 |   |     | 4,388  |   |    |   | 5,798  |         |   |   | 5,578       |   |   |   | 3,443 |   |
| Investment securities and other investment gains                    |   |     | 881    |   |    |   | 95     |         |   |   | 1,083       |   |   |   | 234 |   |
| Income before income taxes                                          |   |     | 14,326 |   |    |   | 11,404 |         |   |   | 16,547      |   |   |   | 18,199 |   |
| Net income                                                          |   |     | 9,679  |   |    |   | 7,795  |         |   |   | 11,203      |   |   |   | 12,567 |   |
| Net income available to common shareholders                         |   |     | 7,968  |   |    |   | 6,078  |         |   |   | 9,482       |   |   |   | 6,127 |   |
| Diluted net income per common share                                 |   |     | 0.33   |   |    |   | 0.25   |         |   |   | 0.39        |   |   |   | 0.25 |   |
| 2009                                                                |   |     |   |   |    |   |   |         |   |   |        |   |   |   |   |   |
| Interest income                                                     |   | $        | 50,676 |   |    | $      | 50,630 |         |   | $      | 49,741      |   |   | $ | 49,365 |   |
| Interest expense                                                    |   |     | 19,954 |   |    |   | 18,717 |         |   |   | 17,695      |   |   |   | 15,834 |   |
| Net interest income                                                 |   |     | 30,722 |   |    |   | 31,913 |         |   |   | 32,046      |   |   |   | 33,531 |   |
| Provision for loan and lease losses                                 |   |     | 7,785  |   |    |   | 8,487  |         |   |   | 6,469       |   |   |   | 8,360 |   |
| Investment securities and other investment (losses) gains           |   |     | (469   | )      |    |   | 426    |         |   |   | 716         |   |   |   | 1,014 |   |
| Income before income taxes                                          |   |     | 4,846  |   |    |   | 8,782  |         |   |   | 9,263       |   |   |   | 8,627 |   |
| Net income                                                          |   |     | 6,251  |   |    |   | 6,283  |         |   |   | 6,733       |   |   |   | 6,223 |   |
| Net income available to common shareholders                         |   |     | 4,938  |   |    |   | 4,587  |         |   |   | 5,032       |   |   |   | 4,517 |   |
| Diluted net income per common share                                 |   |     | 0.20   |   |    |   | 0.19   |         |   |   | 0.21        |   |   |   | 0.19 |   |

Item 7A. 

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Item 8. 

Report 

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Table of Contents

| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION                                                     |   |   |      |   |   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                               |   |   |      |   |   |   |
| December 31 (Dollars in thousands)                                                                 |   | 2010   |      |   | 2009   |   |
|                                                                                               |   |   |      |   |   |   |
| ASSETS                                                                                             |   |   |      |   |   |   |
| Cash and due from banks                                                                            |   | $      | 62,313    |   |   | $      | 72,872 |   |
| Federal funds sold and interest bearing deposits with other banks                                  |   |   | 36,394    |   |   |   | 141,166 |   |
| Investment securities available-for-sale                                                           |   |   |      |   |   |   |   |   |
| (amortized cost of $952,101 and $893,439 at December 31, 2010 and December 31, 2009, respectively) |   |   | 969,018   |   |   |   | 901,638 |   |
| Other investments                                                                                  |   |   | 19,508    |   |   |   | 21,012 |   |
| Trading account securities                                                                         |   |   | 138       |   |   |   | 125 |   |
| Mortgages held for sale                                                                            |   |   | 32,599    |   |   |   | 26,649 |   |
| Loans and leases, net of unearned discount:                                                        |   |   |      |   |   |   |   |   |
| Commercial and agricultural loans                                                                  |   |   | 530,228   |   |   |   | 546,222 |   |
| Auto, light truck and environmental equipment                                                      |   |   | 396,500   |   |   |   | 349,741 |   |
| Medium and heavy duty truck                                                                        |   |   | 162,824   |   |   |   | 204,545 |   |
| Aircraft financing                                                                                 |   |   | 614,357   |   |   |   | 617,384 |   |
| Construction equipment financing                                                                   |   |   | 285,634   |   |   |   | 313,300 |   |
| Commercial real estate                                                                             |   |   | 594,729   |   |   |   | 580,709 |   |
| Residential real estate                                                                            |   |   | 390,951   |   |   |   | 371,514 |   |
| Consumer loans                                                                                     |   |   | 95,400    |   |   |   | 109,735 |   |
| Total loans and leases                                                                             |   |   | 3,070,623 |   |   |   | 3,093,150 |   |
| Reserve for loan and lease losses                                                                  |   |   | (86,874   | )      |   |   | (88,236 | ) |
| Net loans and leases                                                                               |   |   | 2,983,749 |   |   |   | 3,004,914 |   |
| Equipment owned under operating leases, net                                                        |   |   | 78,138    |   |   |   | 97,004 |   |
| Net premises and equipment                                                                         |   |   | 33,881    |   |   |   | 37,907 |   |
| Goodwill and intangible assets                                                                     |   |   | 88,955    |   |   |   | 90,222 |   |
| Accrued income and other assets                                                                    |   |   | 140,588   |   |   |   | 148,591 |   |
| Total assets                                                                                       |   | $      | 4,445,281 |   |   | $      | 4,542,100 |   |
| LIABILITIES                                                                                        |   |   |      |   |   |   |   |   |
| Deposits:                                                                                          |   |   |      |   |   |   |   |   |
| Noninterest bearing                                                                                |   | $      | 524,564   |   |   | $      | 450,608 |   |
| Interest bearing                                                                                   |   |   | 3,098,181 |   |   |   | 3,201,856 |   |
| Total deposits                                                                                     |   |   | 3,622,745 |   |   |   | 3,652,464 |   |
| Short-term borrowings:                                                                             |   |   |      |   |   |   |   |   |
| Federal funds purchased and securities sold under agreements to repurchase                         |   |   | 136,028   |   |   |   | 123,787 |   |
| Other short-term borrowings                                                                        |   |   | 19,961    |   |   |   | 26,323 |   |
| Total short-term borrowings                                                                        |   |   | 155,989   |   |   |   | 150,110 |   |
| Long-term debt and mandatorily redeemable securities                                               |   |   | 24,816    |   |   |   | 19,761 |   |
| Subordinated notes                                                                                 |   |   | 89,692    |   |   |   | 89,692 |   |
| Accrued expenses and other liabilities                                                             |   |   | 65,656    |   |   |   | 59,753 |   |
| Total liabilities                                                                                  |   |   | 3,958,898 |   |   |   | 3,971,780 |   |
| SHAREHOLDERS' EQUITY                                                                               |   |   |      |   |   |   |   |   |
| Preferred stock; no par value                                                                      |   |   |      |   |   |   |   |   |
| Authorized 10,000,000 shares; issued none in 2010 and 111,000 shares in 2009                       |   |   | -         |   |   |   | 104,930 |   |
| Common stock; no par value                                                                         |   |   |      |   |   |   |   |   |
| Authorized 40,000,000 shares; issued 25,643,506 shares in 2010 and 2009                            |   |   | 350,282   |   |   |   | 350,269 |   |
| Retained earnings                                                                                  |   |   | 157,875   |   |   |   | 142,407 |   |
| Cost of common stock in treasury (1,470,696 shares in 2010 and 1,532,483 shares in 2009)           |   |   | (32,284   | )      |   |   | (32,380 | ) |
| Accumulated other comprehensive income                                                             |   |   | 10,510    |   |   |   | 5,094 |   |
| Total shareholders' equity                                                                         |   |   | 486,383   |   |   |   | 570,320 |   |
| Total liabilities and shareholders' equity                                                         |   | $      | 4,445,281 |   |   | $      | 4,542,100 |   |
|                                                                                               |   |   |      |   |   |   |   |   |
| The accompanying notes are a part of the consolidated financial statements.                        |   |   |      |   |   |   |   |   |

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Table of Contents

| CONSOLIDATED STATEMENTS OF INCOME                                           |   |   |    |   |   |   |    |   |   |
|-----------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                        |   |   |    |   |   |   |    |   |   |
| Year Ended December 31 (Dollars in thousands, except per share data)        |   | 2010   |    |   | 2009   |   |    | 2008   |   |
| Interest income:                                                            |   |   |    |   |   |   |    |   |   |
| Loans and leases                                                            |   | $      | 173,526 |   |   | $      | 174,885 |   |   | $ | 204,006 |   |
| Investment securities, taxable                                              |   |   | 20,466  |   |   |   | 17,594  |   |   |   | 22,170 |   |
| Investment securities, tax-exempt                                           |   |   | 5,573   |   |   |   | 6,705   |   |   |   | 7,707 |   |
| Other                                                                       |   |   | 1,061   |   |   |   | 1,228   |   |   |   | 1,425 |   |
| Total interest income                                                       |   |   | 200,626 |   |   |   | 200,412 |   |   |   | 235,308 |   |
| Interest expense:                                                           |   |   |    |   |   |   |    |   |   |   |   |   |
| Deposits                                                                    |   |   | 44,605  |   |   |   | 63,521  |   |   |   | 86,903 |   |
| Short-term borrowings                                                       |   |   | 800     |   |   |   | 1,115   |   |   |   | 7,626 |   |
| Subordinated notes                                                          |   |   | 6,589   |   |   |   | 6,589   |   |   |   | 6,714 |   |
| Long-term debt and mandatorily redeemable securities                        |   |   | 1,135   |   |   |   | 975     |   |   |   | 1,905 |   |
| Total interest expense                                                      |   |   | 53,129  |   |   |   | 72,200  |   |   |   | 103,148 |   |
| Net interest income                                                         |   |   | 147,497 |   |   |   | 128,212 |   |   |   | 132,160 |   |
| Provision for loan and lease losses                                         |   |   | 19,207  |   |   |   | 31,101  |   |   |   | 16,648 |   |
| Net interest income after provision for loan and lease losses               |   |   | 128,290 |   |   |   | 97,111  |   |   |   | 115,512 |   |
| Noninterest income:                                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Trust fees                                                                  |   |   | 15,838  |   |   |   | 15,036  |   |   |   | 18,599 |   |
| Service charges on deposit accounts                                         |   |   | 19,323  |   |   |   | 20,645  |   |   |   | 22,035 |   |
| Mortgage banking income                                                     |   |   | 6,218   |   |   |   | 8,251   |   |   |   | 2,994 |   |
| Insurance commissions                                                       |   |   | 5,074   |   |   |   | 4,930   |   |   |   | 5,363 |   |
| Equipment rental income                                                     |   |   | 26,036  |   |   |   | 25,757  |   |   |   | 24,224 |   |
| Other income                                                                |   |   | 11,909  |   |   |   | 9,224   |   |   |   | 9,293 |   |
| Gain on sale of certain Investment Advisor assets                           |   |   | -       |   |   |   | -       |   |   |   | 11,492 |   |
| Investment securities and other investment gains (losses)                   |   |   | 2,293   |   |   |   | 1,687   |   |   |   | (9,997 | ) |
| Total noninterest income                                                    |   |   | 86,691  |   |   |   | 85,530  |   |   |   | 84,003 |   |
| Noninterest expense:                                                        |   |   |    |   |   |   |    |   |   |   |   |   |
| Salaries and employee benefits                                              |   |   | 75,815  |   |   |   | 72,483  |   |   |   | 76,965 |   |
| Net occupancy expense                                                       |   |   | 8,788   |   |   |   | 9,185   |   |   |   | 9,698 |   |
| Furniture and equipment expense                                             |   |   | 12,543  |   |   |   | 13,980  |   |   |   | 15,095 |   |
| Depreciation - leased equipment                                             |   |   | 20,715  |   |   |   | 20,515  |   |   |   | 19,450 |   |
| Professional fees                                                           |   |   | 6,353   |   |   |   | 4,399   |   |   |   | 8,446 |   |
| Supplies and communications                                                 |   |   | 5,499   |   |   |   | 5,916   |   |   |   | 6,782 |   |
| Business development and marketing expense                                  |   |   | 3,774   |   |   |   | 3,488   |   |   |   | 3,749 |   |
| Loan and lease collection and repossession expense                          |   |   | 6,227   |   |   |   | 4,283   |   |   |   | 1,162 |   |
| FDIC and other insurance                                                    |   |   | 6,256   |   |   |   | 8,362   |   |   |   | 2,601 |   |
| Other expense                                                               |   |   | 8,535   |   |   |   | 8,512   |   |   |   | 9,166 |   |
| Total noninterest expense                                                   |   |   | 154,505 |   |   |   | 151,123 |   |   |   | 153,114 |   |
| Income before income taxes                                                  |   |   | 60,476  |   |   |   | 31,518  |   |   |   | 46,401 |   |
| Income taxes                                                                |   |   | 19,232  |   |   |   | 6,028   |   |   |   | 13,015 |   |
| Net income                                                                  |   |   | 41,244  |   |   |   | 25,490  |   |   |   | 33,386 |   |
| Preferred stock dividends and discount accretion                            |   |   | (11,589 | )      |   |   | (6,416  | )      |   |   | - |   |
| Net income available to common shareholders                                 |   | $      | 29,655  |   |   | $      | 19,074  |   |   | $ | 33,386 |   |
| Basic net income per common share                                           |   | $      | 1.21    |   |   | $      | 0.79    |   |   | $ | 1.38 |   |
| Diluted net income per common share                                         |   | $      | 1.21    |   |   | $      | 0.79    |   |   | $ | 1.37 |   |
|                                                                        |   |   |    |   |   |   |    |   |   |   |   |   |
| The accompanying notes are a part of the consolidated financial statements. |   |   |    |   |   |   |    |   |   |   |   |   |

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Table of Contents

| CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY                                   |   |   |     |   |      |   |     |   |   |   |
|-----------------------------------------------------------------------------------|--------|--------|----------|--------|-----------|--------|----------|--------|--------|--------|
|                                                                              |   |   |     |   |      |   |     |   |   |   |   |   |   | Cost of |   |   | Accumulated |   |
|                                                                              |   |   |     |   |      |   |     |   |   |   |   |   |   | Common |   |   | Other |   |
|                                                                              |   |   |     |   | Preferred |   |     | Common |   |   | Retained |   |   | Stock |   |   | Comprehensive |   |
|  (Dollars in thousands, except per share data)                               |   | Total  |     |   | Stock     |   |     | Stock  |   |   | Earnings |   |   | in Treasury |   |   | Income (Loss), Net |   |
|  Balance at January 1, 2008                                                  |   | $      | 430,504  |   |      | $      | -        |   |   | $      | 342,840 |   |   | $ | 117,373 |   |   | $ | (32,231 | ) |   | $ | 2,522 |   |
|  Comprehensive income, net of tax:                                           |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net income                                                                  |   |   | 33,386   |   |      |   | -        |   |   |   | - |   |   |   | 33,386 |   |   |   | - |   |   |   | - |   |
|  Change in unrealized appreciation of                                        |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  available-for-sale securities, net of tax                                   |   |   | 9,651    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,651 |   |
|  Reclassification adjustments for losses included                            |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  in net income, net of tax                                                   |   |   | (6,349   | )      |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (6,349 | ) |
|  Total comprehensive income                                                  |   |   | 36,688   |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Issuance of 18,820 common shares per                                        |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  stock based compensation awards, including                                  |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   related tax effects                                                   |   |   | 341      |   |      |   | -        |   |   |   | - |   |   |   | 129 |   |   |   | 212 |   |   |   | - |   |
|  Stock based compensation                                                    |   |   | 142      |   |      |   | -        |   |   |   | 142 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Common stock dividend ($.580 per share)                                     |   |   | (14,011  | )      |      |   | -        |   |   |   | - |   |   |   | (14,011 | ) |   |   | - |   |   |   | - |   |
|  Balance at December 31, 2008                                                |   | $      | 453,664  |   |      | $      | -        |   |   | $      | 342,982 |   |   | $ | 136,877 |   |   | $ | (32,019 | ) |   | $ | 5,824 |   |
|  Comprehensive income, net of tax:                                           |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net income                                                                  |   |   | 25,490   |   |      |   | -        |   |   |   | - |   |   |   | 25,490 |   |   |   | - |   |   |   | - |   |
|  Change in unrealized depreciation of                                        |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  available-for-sale securities, net of tax                                   |   |   | (1,600   | )      |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,600 | ) |
|  Reclassification adjustments for gains included                             |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  in net income, net of tax                                                   |   |   | 870      |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 870 |   |
|  Total comprehensive income                                                  |   |   | 24,760   |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Issuance of 83,402 common shares per                                        |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  stock based compensation awards, including                                  |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   related tax effects                                                   |   |   | 1,663    |   |      |   | -        |   |   |   | - |   |   |   | 725 |   |   |   | 938 |   |   |   | - |   |
|  Cost of 83,309 shares of common                                             |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  stock acquired for treasury                                                 |   |   | (1,299   | )      |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | (1,299 | ) |   |   | - |   |
|  Issuance of preferred stock                                                 |   |   | 103,725  |   |      |   | 103,725  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Preferred stock discount accretion                                          |   |   | -        |   |      |   | 1,205    |   |   |   | - |   |   |   | (1,205 | ) |   |   | - |   |   |   | - |   |
|  Issuance of warrants to purchase common stock                               |   |   | 7,275    |   |      |   | -        |   |   |   | 7,275 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Preferred stock dividend (paid and/or accrued)                              |   |   | (5,211   | )      |      |   | -        |   |   |   | - |   |   |   | (5,211 | ) |   |   | - |   |   |   | - |   |
|  Stock based compensation                                                    |   |   | 12       |   |      |   | -        |   |   |   | 12 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Common stock dividend ($.590 per share)                                     |   |   | (14,269  | )      |      |   | -        |   |   |   | - |   |   |   | (14,269 | ) |   |   | - |   |   |   | - |   |
|  Balance at December 31, 2009                                                |   | $      | 570,320  |   |      | $      | 104,930  |   |   | $      | 350,269 |   |   | $ | 142,407 |   |   | $ | (32,380 | ) |   | $ | 5,094 |   |
|  Comprehensive income, net of tax:                                           |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net income                                                                  |   |   | 41,244   |   |      |   | -        |   |   |   | - |   |   |   | 41,244 |   |   |   | - |   |   |   | - |   |
|  Change in unrealized appreciation of                                        |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  available-for-sale securities, net of tax                                   |   |   | 5,254    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,254 |   |
|  Reclassification adjustments for gains included                             |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  in net income, net of tax                                                   |   |   | 162      |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 162 |   |
|  Total comprehensive income                                                  |   |   | 46,660   |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Issuance of 187,554 common shares per                                       |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  stock based compensation awards, including                                  |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    related tax effects                                             |   |   | 2,873    |   |      |   | -        |   |   |   | - |   |   |   | 635 |   |   |   | 2,238 |   |   |   | - |   |
|  Cost of 125,767 shares of common                                            |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  stock acquired for treasury                                                 |   |   | (2,142   | )      |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | (2,142 | ) |   |   | - |   |
|  Preferred stock discount accretion                                          |   |   | -        |   |      |   | 6,070    |   |   |   | - |   |   |   | (6,070 | ) |   |   | - |   |   |   | - |   |
|  Redemption of preferred stock                                               |   |   | (111,000 | )      |      |   | (111,000 | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Preferred stock dividend (paid and/or accrued)                              |   |   | (5,519   | )      |      |   | -        |   |   |   | - |   |   |   | (5,519 | ) |   |   | - |   |   |   | - |   |
|  Stock based compensation                                                    |   |   | 13       |   |      |   | -        |   |   |   | 13 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Common stock dividend ($.610 per share)                                     |   |   | (14,822  | )      |      |   | -        |   |   |   | - |   |   |   | (14,822 | ) |   |   | - |   |   |   | - |   |
|  Balance at December 31, 2010                                                |   | $      | 486,383  |   |      | $      | -        |   |   | $      | 350,282 |   |   | $ | 157,875 |   |   | $ | (32,284 | ) |   | $ | 10,510 |   |
|                                                                              |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  The accompanying notes are a part of the consolidated financial statements. |

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Table of Contents

| CONSOLIDATED STATEMENTS OF CASH FLOW                                                    |   |   |     |   |   |   |     |   |   |
|-----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                    |   |   |     |   |   |   |     |   |   |
| Year Ended December 31 (Dollars in thousands)                                           |   | 2010   |     |   | 2009   |   |     | 2008   |   |
|  Operating activities:                                                             |   |   |     |   |   |   |     |   |   |
|  Net income                                                                        |   | $      | 41,244   |   |   | $      | 25,490   |   |   | $ | 33,386 |   |
|  Adjustments to reconcile net income to net cash provided by operating activities: |   |   |     |   |   |   |     |   |   |   |   |   |
|  Provision for loan and lease losses                                               |   |   | 19,207   |   |   |   | 31,101   |   |   |   | 16,648 |   |
|  Depreciation of premises and equipment                                            |   |   | 4,132    |   |   |   | 4,605    |   |   |   | 5,312 |   |
|  Depreciation of equipment owned and leased to others                              |   |   | 20,715   |   |   |   | 20,515   |   |   |   | 19,450 |   |
|  Amortization of investment security premiums and accretion of discounts, net      |   |   | 1,576    |   |   |   | 5,304    |   |   |   | 2,232 |   |
|  Amortization of mortgage servicing rights                                         |   |   | 3,277    |   |   |   | 3,331    |   |   |   | 2,838 |   |
|  Mortgage servicing asset (recoveries)/impairment                                  |   |   | (1       | )      |   |   | (2,072   | )      |   |   | 1,913 |   |
|  Deferred income taxes                                                             |   |   | (1,055   | )      |   |   | 5,687    |   |   |   | (10,779 | ) |
|  Investment securities and other investment (gains) losses                         |   |   | (2,293   | )      |   |   | (1,687   | )      |   |   | 9,997 |   |
|  Originations/purchases of loans held for sale, net of principal collected         |   |   | (411,541 | )      |   |   | (577,949 | )      |   |   | (380,920 | ) |
|  Proceeds from the sales of loans held for sale                                    |   |   | 412,019  |   |   |   | 602,126  |   |   |   | 362,444 |   |
|  Net gain on sale of loans held for sale                                           |   |   | (6,427   | )      |   |   | (4,140   | )      |   |   | (2,289 | ) |
|  Change in trading account securities                                              |   |   | (13      | )      |   |   | (25      | )      |   |   | (100 | ) |
|  Change in interest receivable                                                     |   |   | 1,969    |   |   |   | 1,723    |   |   |   | 1,383 |   |
|  Change in interest payable                                                        |   |   | (4,728   | )      |   |   | (3,944   | )      |   |   | (6,710 | ) |
|  Change in other assets                                                            |   |   | 4,025    |   |   |   | (37,069  | )      |   |   | (15,980 | ) |
|  Change in other liabilities                                                       |   |   | 8,387    |   |   |   | (21,937  | )      |   |   | 21,345 |   |
|  Other                                                                             |   |   | 2,700    |   |   |   | 794      |   |   |   | 4,070 |   |
|  Net change in operating activities                                                |   |   | 93,193   |   |   |   | 51,853   |   |   |   | 64,240 |   |
|  Investing activities:                                                             |   |   |     |   |   |   |     |   |   |   |   |   |
|  Proceeds from sales of investment securities                                      |   |   | 83,089   |   |   |   | 240,325  |   |   |   | 8,548 |   |
|  Proceeds from maturities of investment securities                                 |   |   | 431,137  |   |   |   | 515,216  |   |   |   | 519,847 |   |
|  Purchases of investment securities                                                |   |   | (572,172 | )      |   |   | (937,217 | )      |   |   | (480,082 | ) |
|  Net change in short-term and other investments                                    |   |   | 106,276  |   |   |   | (136,615 | )      |   |   | 15,191 |   |
|  Loans sold or participated to others                                              |   |   | 19,311   |   |   |   | 17,805   |   |   |   | - |   |
|  Net change in loans and leases                                                    |   |   | (17,353  | )      |   |   | 164,616  |   |   |   | (110,246 | ) |
|  Net change in equipment owned under operating leases                         |   |   | (1,850   | )      |   |   | (34,457  | )      |   |   | (20,552 | ) |
|  Purchases of premises and equipment                                               |   |   | (2,515   | )      |   |   | (2,256   | )      |   |   | (3,726 | ) |
|  Net change in investing activities                                                |   |   | 45,923   |   |   |   | (172,583 | )      |   |   | (71,020 | ) |
|  Financing activities:                                                             |   |   |     |   |   |   |     |   |   |   |   |   |
|  Net change in demand deposits, NOW accounts and savings accounts                  |   |   | 126,079  |   |   |   | 317,699  |   |   |   | (72,780 | ) |
|  Net change in certificates of deposit                                             |   |   | (155,798 | )      |   |   | (179,777 | )      |   |   | 117,659 |   |
|  Net change in short-term borrowings                                               |   |   | 5,879    |   |   |   | (146,065 | )      |   |   | (41,656 | ) |
|  Proceeds from issuance of long-term debt                                          |   |   | 16,163   |   |   |   | 1,014    |   |   |   | 10,826 |   |
|  Payments on subordinated notes                                                    |   |   | -        |   |   |   | -        |   |   |   | (10,310 | ) |
|  Payments on long-term debt                                                        |   |   | (11,134  | )      |   |   | (11,382  | )      |   |   | (16,413 | ) |
|  Net proceeds from issuance of treasury stock                                      |   |   | 2,873    |   |   |   | 1,663    |   |   |   | 341 |   |
|  Acquisition of treasury stock                                                     |   |   | (2,142   | )      |   |   | (1,299   | )      |   |   | - |   |
|  Net proceeds from issuance of preferred stock & common stock warrants         |   |   | -        |   |   |   | 111,000  |   |   |   | - |   |
|  Redemption of preferred stock                                                     |   |   | (111,000 | )      |   |   | -        |   |   |   | - |   |
|  Cash dividends paid on preferred stock                                            |   |   | (5,519   | )      |   |   | (4,502   | )      |   |   | - |   |
|  Cash dividends paid on common stock                                               |   |   | (15,076  | )      |   |   | (14,520  | )      |   |   | (14,253 | ) |
|  Net change in financing activities                                                |   |   | (149,675 | )      |   |   | 73,831   |   |   |   | (26,586 | ) |
|  Net change in cash and cash equivalents                                           |   |   | (10,559  | )      |   |   | (46,899  | )      |   |   | (33,366 | ) |
|  Cash and cash equivalents, beginning of year                                      |   |   | 72,872   |   |   |   | 119,771  |   |   |   | 153,137 |   |
|  Cash and cash equivalents, end of year                                            |   | $      | 62,313   |   |   | $      | 72,872   |   |   | $ | 119,771 |   |
|  Supplemental Information:                                                         |   |   |     |   |   |   |     |   |   |   |   |   |
|  Non-cash transactions:                                                            |   |   |     |   |   |   |     |   |   |   |   |   |
|  Loans transferred to other real estate and repossessed assets                     |   | $      | 18,075   |   |   | $      | 19,393   |   |   | $  | 8,997 |   |
|  Common stock matching contribution to ESOP plan                                   |   |   | 2,545    |   |   |   | 1,254    |   |   |   | - |   |
|  Cash paid for:                                                                    |   |   |     |   |   |   |     |   |   |   |   |   |
|  Interest                                                                          |   | $      | 57,857   |   |   | $      | 76,145   |   |   | $ | 109,858 |   |
|  Income taxes                                                                      |   |   | 17,404   |   |   |   | 8,903    |   |   |   | 19,187 |   |
|                                                                                    |   |   |     |   |   |   |     |   |   |   |   |   |
| The accompanying notes are a part of the consolidated financial statements.             |   |   |     |   |   |   |     |   |   |   |   |   |

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|                                              |   | Amortized |    |   | Gross            |   |   | Gross             |   |   |       |   |
|---------------------------------------------------|--------|-----------|---------|--------|------------------|--------|--------|-------------------|--------|--------|------------|--------|
| (Dollars in thousands)                            |   | Cost      |    |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Fair Value |   |
| December 31, 2010                                 |   |      |    |   |             |   |   |              |   |   |       |   |
| U.S. Treasury and Federal agencies securities     |   | $         | 442,612 |   |             | $      | 5,546  |              |   | $      | (849       | )      |   | $ | 447,309 |   |
| U.S. States and political subdivisions securities |   |      | 147,679 |   |             |   | 4,381  |              |   |   | (1,753     | )      |   |   | 150,307 |   |
| Mortgage-backed securities - Federal agencies     |   |      | 309,046 |   |             |   | 7,854  |              |   |   | (232       | )      |   |   | 316,668 |   |
| Corporate debt securities                         |   |      | 45,778  |   |             |   | 182    |              |   |   | (345       | )      |   |   | 45,615 |   |
| Foreign government and other securities           |   |      | 5,732   |   |             |   | 18     |              |   |   | (34        | )      |   |   | 5,716 |   |
| Total debt securities                             |   |      | 950,847 |   |             |   | 17,981 |              |   |   | (3,213     | )      |   |   | 965,615 |   |
| Marketable equity securities                      |   |      | 1,254   |   |             |   | 2,152  |              |   |   | (3         | )      |   |   | 3,403 |   |
| Total investment securities available-for-sale    |   | $         | 952,101 |   |             | $      | 20,133 |              |   | $      | (3,216     | )      |   | $ | 969,018 |   |
|                                              |   |      |    |   |             |   |   |              |   |   |       |   |   |   |   |   |
| December 31, 2009                                 |   |      |    |   |             |   |   |              |   |   |       |   |   |   |   |   |
| U.S. Treasury and Federal agencies securities     |   | $         | 390,189 |   |             | $      | 760    |              |   | $      | (1,780     | )      |   | $ | 389,169 |   |
| U.S. States and political subdivisions securities |   |      | 188,706 |   |             |   | 5,450  |              |   |   | (2,337     | )      |   |   | 191,819 |   |
| Mortgage-backed securities - Federal agencies     |   |      | 286,415 |   |             |   | 5,996  |              |   |   | (1,434     | )      |   |   | 290,977 |   |
| Corporate debt securities                         |   |      | 26,166  |   |             |   | 194    |              |   |   | (38        | )      |   |   | 26,322 |   |
| Foreign government and other securities           |   |      | 675     |   |             |   | -      |              |   |   | -          |   |   |   | 675 |   |
| Total debt securities                             |   |      | 892,151 |   |             |   | 12,400 |              |   |   | (5,589     | )      |   |   | 898,962 |   |
| Marketable equity securities                      |   |      | 1,288   |   |             |   | 1,417  |              |   |   | (29        | )      |   |   | 2,676 |   |
| Total investment securities available-for-sale    |   | $         | 893,439 |   |             | $      | 13,817 |              |   | $      | (5,618     | )      |   | $ | 901,638 |   |

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|                                     |   | Amortized |    |   |       |   |
|------------------------------------------|--------|-----------|---------|--------|------------|--------|
| (Dollars in thousands)                   |   | Cost      |    |   | Fair Value |   |
| Due in one year or less                  |   | $         | 42,983  |   |       | $      | 43,307 |   |
| Due after one year through five years    |   |      | 506,854 |   |       |   | 513,124 |   |
| Due after five years through ten years   |   |      | 80,733  |   |       |   | 82,843 |   |
| Due after ten years                      |   |      | 11,231  |   |       |   | 9,673 |   |
| Mortgage-backed securities               |   |      | 309,046 |   |       |   | 316,668 |   |
| Total debt securities available-for-sale |   | $         | 950,847 |   |       | $      | 965,615 |   |

| (Dollars in thousands)      |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Gross realized gains        |   | $      | 297    |   |   | $      | 2,108  |   |   | $ | 830 |   |
| Gross realized losses       |   |   | (36    | )      |   |   | (707   | )      |   |   | (11,050 | ) |
| Net realized gains (losses) |   | $      | 261    |   |   | $      | 1,401  |   |   | $ | (10,220 | ) |

|                                                     |   | Less than 12 Months |    |   | 12 months or Longer |   |   | Total  |   |
|----------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|--------|--------|--------|
|                                                     |   | Fair                |    |   | Unrealized          |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| (Dollars in thousands)                                   |   | Value               |    |   | Losses              |   |   | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
| December 31, 2010                                        |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and Federal agencies securities            |   | $                   | 158,497 |   |                | $      | (849   | )      |   | $ | - |   |   | $ | - |   |   | $ | 158,497 |   |   | $ | (849 | ) |
| U.S. States and political subdivisions securities        |   |                | 9,226   |   |                |   | (246   | )      |   |   | 9,055 |   |   |   | (1,507 | ) |   |   | 18,281 |   |   |   | (1,753 | ) |
| Mortgage-backed securities - Federal agencies            |   |                | 23,351  |   |                |   | (213   | )      |   |   | 4,887 |   |   |   | (19 | ) |   |   | 28,238 |   |   |   | (232 | ) |
| Corporate debt securities                                |   |                | 26,407  |   |                |   | (345   | )      |   |   | - |   |   |   | - |   |   |   | 26,407 |   |   |   | (345 | ) |
| Foreign government and other securities                  |   |                | 3,015   |   |                |   | (34    | )      |   |   | - |   |   |   | - |   |   |   | 3,015 |   |   |   | (34 | ) |
| Total debt securities                                    |   |                | 220,496 |   |                |   | (1,687 | )      |   |   | 13,942 |   |   |   | (1,526 | ) |   |   | 234,438 |   |   |   | (3,213 | ) |
| Marketable equity securities                             |   |                | -       |   |                |   | -      |   |   |   | 5 |   |   |   | (3 | ) |   |   | 5 |   |   |   | (3 | ) |
| Total temporarily impaired available-for-sale securities |   | $                   | 220,496 |   |                | $      | (1,687 | )      |   | $ | 13,947 |   |   | $ | (1,529 | ) |   | $ | 234,443 |   |   | $ | (3,216 | ) |
|                                                     |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                                        |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and Federal agencies securities            |   | $                   | 245,921 |   |                | $      | (1,780 | )      |   | $ | - |   |   | $ | - |   |   | $ | 245,921 |   |   | $ | (1,780 | ) |
| U.S. States and political subdivisions securities        |   |                | 9,501   |   |                |   | (178   | )      |   |   | 16,718 |   |   |   | (2,159 | ) |   |   | 26,219 |   |   |   | (2,337 | ) |
| Mortgage-backed securities - Federal agencies            |   |                | 90,592  |   |                |   | (1,137 | )      |   |   | 22,330 |   |   |   | (297 | ) |   |   | 112,922 |   |   |   | (1,434 | ) |
| Corporate debt securities                                |   |                | 7,149   |   |                |   | (38    | )      |   |   | - |   |   |   | - |   |   |   | 7,149 |   |   |   | (38 | ) |
| Total debt securities                                    |   |                | 353,163 |   |                |   | (3,133 | )      |   |   | 39,048 |   |   |   | (2,456 | ) |   |   | 392,211 |   |   |   | (5,589 | ) |
| Marketable equity securities                             |   |                | 2       |   |                |   | (2     | )      |   |   | 4 |   |   |   | (27 | ) |   |   | 6 |   |   |   | (29 | ) |
| Total temporarily impaired available-for-sale securities |   | $                   | 353,165 |   |                | $      | (3,135 | )      |   | $ | 39,052 |   |   | $ | (2,483 | ) |   | $ | 392,217 |   |   | $ | (5,618 | ) |

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| (Dollars in thousands)                    |   | 2010   |    |   | 2009   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Direct finance leases:                    |   |   |    |   |   |   |
| Rentals receivable                        |   | $      | 200,640 |   |   | $      | 207,666 |   |
| Estimated residual value of leased assets |   |   | 25,473  |   |   |   | 29,696 |   |
| Gross investment in lease financing       |   |   | 226,113 |   |   |   | 237,362 |   |
| Unearned income                           |   |   | (33,384 | )      |   |   | (34,753 | ) |
| Net investment in lease financing         |   | $      | 192,729 |   |   | $      | 202,609 |   |

|                              |   | Grade: |      |
|-----------------------------------|--------|--------|-----------|
| (Dollars in thousands)            |   |   | 1-6       |   |   |   | 7-12 |   |   | Total |   |
| 2010                              |   |   |      |   |   |   |   |   |   |   |   |
| Commercial and agricultural loans |   | $      | 485,307   |   |   | $ | 46,812 |   |   | $ | 532,119 |   |
| Auto, light truck,                |   |   |      |   |   |   |   |   |   |   |   |   |
| and environmental equipment       |   |   | 390,671   |   |   |   | 6,755 |   |   |   | 397,426 |   |
| Medium and heavy duty truck       |   |   | 143,733   |   |   |   | 19,437 |   |   |   | 163,170 |   |
| Aircraft financing                |   |   | 556,641   |   |   |   | 59,528 |   |   |   | 616,169 |   |
| Construction equipment financing  |   |   | 247,287   |   |   |   | 39,141 |   |   |   | 286,428 |   |
| Commercial real estate            |   |   | 534,638   |   |   |   | 62,298 |   |   |   | 596,936 |   |
| Total                             |   | $      | 2,358,277 |   |   | $ | 233,971 |   |   | $ | 2,592,248 |   |
|                              |   |   |      |   |   |   |   |   |   |   |   |   |
| 2009                              |   |   |      |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural loans |   | $      | 488,534   |   |   | $ | 59,734 |   |   | $ | 548,268 |   |
| Auto, light truck,                |   |   |      |   |   |   |   |   |   |   |   |   |
| and environmental equipment       |   |   | 315,588   |   |   |   | 35,007 |   |   |   | 350,595 |   |
| Medium and heavy duty truck       |   |   | 177,628   |   |   |   | 27,444 |   |   |   | 205,072 |   |
| Aircraft financing                |   |   | 577,595   |   |   |   | 41,805 |   |   |   | 619,400 |   |
| Construction equipment financing  |   |   | 281,881   |   |   |   | 32,393 |   |   |   | 314,274 |   |
| Commercial real estate            |   |   | 522,343   |   |   |   | 60,412 |   |   |   | 582,755 |   |
| Total                             |   | $      | 2,363,569 |   |   | $ | 256,795 |   |   | $ | 2,620,364 |   |

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| (Dollars in thousands)  |   | Performing |    |   | Nonperforming |   |   | Total  |   |
|-------------------------|--------|------------|---------|--------|---------------|--------|--------|--------|--------|
| 2010                    |   |       |    |   |          |   |   |   |   |
| Residential real estate |   | $          | 387,278 |   |          | $      | 5,227  |   |   | $ | 392,505 |   |
| Consumer                |   |       | 95,472  |   |          |   | 429    |   |   |   | 95,901 |   |
| Total                   |   | $          | 482,750 |   |          | $      | 5,656  |   |   | $ | 488,406 |   |
|                    |   |       |    |   |          |   |   |   |   |   |   |   |
| 2009                    |   |       |    |   |          |   |   |   |   |   |   |   |
| Residential real estate |   | $          | 365,851 |   |          | $      | 7,129  |   |   | $ | 372,980 |   |
| Consumer                |   |       | 109,266 |   |          |   | 1,080  |   |   |   | 110,346 |   |
| Total                   |   | $          | 475,117 |   |          | $      | 8,209  |   |   | $ | 483,326 |   |

|                              |       |   |   |       |   |   |    |   |   |       |   |   |       |   |   |    |   |   |            |   |   | Recorded       |   |
|-----------------------------------|------------|--------|--------|------------|--------|--------|---------|--------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|-----------------|--------|--------|----------------|--------|
|                              |       |   |   |       |   |   | Greater |   |   |       |   |   |       |   |   |    |   |   |  Total     |   |   | Investment> |   |
|                              | 30-59 Days |   |   | 60-89 Days |   |   | Than    |   |   | Total Past |   |   |       |   |   |    |   |   |  Financing |   |   | 90 Days and    |   |
| (Dollars in thousands)            | Past Due   |   |   | Past Due   |   |   | 90 Days |   |   | Due        |   |   | Nonaccrual |   |   | Current |   |   | Receivables     |   |   | Accruing       |   |
| 2010                              |       |   |   |       |   |   |    |   |   |       |   |   |       |   |   |    |   |   |            |   |   |           |   |
| Commercial and agricultural loans | $          | 774    |   |       | $      | 22     |    |   | $      | -          |   |   | $          | 796    |   |    | $      | 8,083  |            |   | $      | 523,240        |   |   | $ | 532,119 |   |   | $ | - |   |
| Auto, light truck and             |       |   |   |       |   |   |    |   |   |       |   |   |       |   |   |    |   |   |            |   |   |           |   |   |   |   |   |   |   |   |   |
| environmental equipment           |       | 534    |   |       |   | 729    |    |   |   | -          |   |   |       | 1,263  |   |    |   | 3,332  |            |   |   | 392,831        |   |   |   | 397,426 |   |   |   | - |   |
| Medium and heavy duty truck       |       | 34     |   |       |   | -      |    |   |   | -          |   |   |       | 34     |   |    |   | 5,068  |            |   |   | 158,068        |   |   |   | 163,170 |   |   |   | - |   |
| Aircraft financing                |       | 16,204 |   |       |   | 190    |    |   |   | -          |   |   |       | 16,394 |   |    |   | 17,898 |            |   |   | 581,877        |   |   |   | 616,169 |   |   |   | - |   |
| Construction equipment financing  |       | 1,274  |   |       |   | 616    |    |   |   | -          |   |   |       | 1,890  |   |    |   | 8,575  |            |   |   | 275,963        |   |   |   | 286,428 |   |   |   | - |   |
| Commercial real estate            |       | 773    |   |       |   | 97     |    |   |   | -          |   |   |       | 870    |   |    |   | 26,622 |            |   |   | 569,444        |   |   |   | 596,936 |   |   |   | - |   |
| Residential real estate           |       | 3,817  |   |       |   | 588    |    |   |   | 269        |   |   |       | 4,674  |   |    |   | 4,958  |            |   |   | 382,873        |   |   |   | 392,505 |   |   |   | 269 |   |
| Consumer                          |       | 1,165  |   |       |   | 546    |    |   |   | 100        |   |   |       | 1,811  |   |    |   | 329    |            |   |   | 93,761         |   |   |   | 95,901 |   |   |   | 100 |   |
| Total                             | $          | 24,575 |   |       | $      | 2,788  |    |   | $      | 369        |   |   | $          | 27,732 |   |    | $      | 74,865 |            |   | $      | 2,978,057      |   |   | $ | 3,080,654 |   |   | $ | 369 |   |
|                              |       |   |   |       |   |   |    |   |   |       |   |   |       |   |   |    |   |   |            |   |   |           |   |   |   |   |   |   |   |   |   |
| 2009                              |       |   |   |       |   |   |    |   |   |       |   |   |       |   |   |    |   |   |            |   |   |           |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural loans | $          | 1,005  |   |       | $      | 144    |    |   | $      | -          |   |   | $          | 1,149  |   |    | $      | 9,507  |            |   | $      | 537,612        |   |   | $ | 548,268 |   |   | $ | - |   |
| Auto, light truck and             |       |   |   |       |   |   |    |   |   |       |   |   |       |   |   |    |   |   |            |   |   |           |   |   |   |   |   |   |   |   |   |
| environmental equipment           |       | 4,341  |   |       |   | 885    |    |   |   | -          |   |   |       | 5,226  |   |    |   | 9,202  |            |   |   | 336,167        |   |   |   | 350,595 |   |   |   | - |   |
| Medium and heavy duty truck       |       | 4,375  |   |       |   | 2,216  |    |   |   | -          |   |   |       | 6,591  |   |    |   | 11,625 |            |   |   | 186,856        |   |   |   | 205,072 |   |   |   | - |   |
| Aircraft financing                |       | 5,685  |   |       |   | 3,907  |    |   |   | -          |   |   |       | 9,592  |   |    |   | 6,025  |            |   |   | 603,783        |   |   |   | 619,400 |   |   |   | - |   |
| Construction equipment financing  |       | 1,325  |   |       |   | 1,066  |    |   |   | -          |   |   |       | 2,391  |   |    |   | 7,218  |            |   |   | 304,665        |   |   |   | 314,274 |   |   |   | - |   |
| Commercial real estate            |       | 588    |   |       |   | 39     |    |   |   | -          |   |   |       | 627    |   |    |   | 32,395 |            |   |   | 549,733        |   |   |   | 582,755 |   |   |   | - |   |
| Residential real estate           |       | 2,927  |   |       |   | 740    |    |   |   | 524        |   |   |       | 4,191  |   |    |   | 6,605  |            |   |   | 362,184        |   |   |   | 372,980 |   |   |   | 524 |   |
| Consumer                          |       | 1,293  |   |       |   | 592    |    |   |   | 116        |   |   |       | 2,001  |   |    |   | 964    |            |   |   | 107,381        |   |   |   | 110,346 |   |   |   | 116 |   |
| Total                             | $          | 21,539 |   |       | $      | 9,589  |    |   | $      | 640        |   |   | $          | 31,768 |   |    | $      | 83,541 |            |   | $      | 2,988,381      |   |   | $ | 3,103,690 |   |   | $ | 640 |   |

----

Table of Contents

|                              | Commercial   |    |   | Auto, light   |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |
|-----------------------------------|--------------|---------|--------|---------------|--------|---------|-----------------|--------|--------|-----------|--------|--------|--------------|---------|--------|-------------|--------|---------|-------------|--------|--------|----------|--------|--------|--------|---------|
|                              | and          |    |   | truck and     |   |    | Medium          |   |   |      |   |   | Construction |    |   |        |   |    |        |   |   |     |   |   |   |    |
|                              | agricultural |    |   | environmental |   |    |  and heavy |   |   | Aircraft  |   |   | equipment    |    |   | Commercial  |   |    | Residential |   |   | Consumer |   |   |   |    |
| (Dollars in thousands)            | loans        |    |   | equipment     |   |    | duty truck |   |   | financing |   |   | financing    |    |   | real estate |   |    | real estate |   |   | loans    |   |   | Total  |    |
| 2010                              |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |
| Reserve for loan and lease losses |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |
| Balance, beginning of year        | $            | 24,017  |   |          | $      | 9,630   |            |   | $      | 6,186     |   |   | $            | 24,807  |   |        | $      | 8,875   |        |   | $      | 10,453   |   |   | $      | 880     |   |   | $ | 3,388 |   |   | $ | 88,236 |   |
| Charge-offs                       |         | 4,000   |   |          |   | 1,014   |            |   |   | 1,879     |   |   |         | 6,507   |   |        |   | 2,372   |        |   |   | 6,219    |   |   |   | 486     |   |   |   | 1,629 |   |   |   | 24,106 |   |
| Recoveries                        |         | 1,612   |   |          |   | 80      |            |   |   | 50        |   |   |         | 636     |   |        |   | 345     |        |   |   | 105      |   |   |   | 47      |   |   |   | 662 |   |   |   | 3,537 |   |
| Net charge-offs (recoveries)      |         | 2,388   |   |          |   | 934     |            |   |   | 1,829     |   |   |         | 5,871   |   |        |   | 2,027   |        |   |   | 6,114    |   |   |   | 439     |   |   |   | 967 |   |   |   | 20,569 |   |
| Provision (recovery of provision) |         | (1,085  | )      |          |   | (1,154  | )               |   |   | 1,411     |   |   |         | 10,875  |   |        |   | 1,591   |        |   |   | 6,838    |   |   |   | 2,077   |   |   |   | (1,346 | ) |   |   | 19,207 |   |
| Balance, end of year              | $            | 20,544  |   |          | $      | 7,542   |            |   | $      | 5,768     |   |   | $            | 29,811  |   |        | $      | 8,439   |        |   | $      | 11,177   |   |   | $      | 2,518   |   |   | $ | 1,075 |   |   | $ | 86,874 |   |
| Ending balance: individually      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 4,190   |   |          | $      | 377     |            |   | $      | 1,049     |   |   | $            | 2,050   |   |        | $      | 648     |        |   | $      | 893      |   |   | $      | -       |   |   | $ | - |   |   | $ | 9,207 |   |
| Ending balance: collectively      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 16,354  |   |          | $      | 7,165   |            |   | $      | 4,719     |   |   | $            | 27,761  |   |        | $      | 7,791   |        |   | $      | 10,284   |   |   | $      | 2,518   |   |   | $ | 1,075 |   |   | $ | 77,667 |   |
|                              |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Financing receivables:            |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Ending balance                    | $            | 532,119 |   |          | $      | 397,426 |            |   | $      | 163,170   |   |   | $            | 616,169 |   |        | $      | 286,428 |        |   | $      | 596,936  |   |   | $      | 392,505 |   |   | $ | 95,901 |   |   | $ | 3,080,654 |   |
| Ending balance: individually      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 13,241  |   |          | $      | 2,733   |            |   | $      | 5,095     |   |   | $            | 18,431  |   |        | $      | 8,930   |        |   | $      | 29,729   |   |   | $      | -       |   |   | $ | - |   |   | $ | 78,159 |   |
| Ending balance: collectively      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 518,878 |   |          | $      | 394,693 |            |   | $      | 158,075   |   |   | $            | 597,738 |   |        | $      | 277,498 |        |   | $      | 567,207  |   |   | $      | 392,505 |   |   | $ | 95,901 |   |   | $ | 3,002,495 |   |
|                              |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| 2009                              |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Reserve for loan and lease losses |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance, beginning of year        | $            | 22,694  |   |          | $      | 9,709   |            |   | $      | 8,785     |   |   | $            | 18,883  |   |        | $      | 10,516  |        |   | $      | 4,939    |   |   | $      | 755     |   |   | $ | 3,495 |   |   | $ | 79,776 |   |
| Charge-offs                       |         | 8,809   |   |          |   | 2,750   |            |   |   | 2,071     |   |   |         | 7,812   |   |        |   | 1,476   |        |   |   | 2,654    |   |   |   | 99      |   |   |   | 2,544 |   |   |   | 28,215 |   |
| Recoveries                        |         | 3,193   |   |          |   | 310     |            |   |   | 5         |   |   |         | 983     |   |        |   | 444     |        |   |   | 28       |   |   |   | 8       |   |   |   | 603 |   |   |   | 5,574 |   |
| Net charge-offs (recoveries)      |         | 5,616   |   |          |   | 2,440   |            |   |   | 2,066     |   |   |         | 6,829   |   |        |   | 1,032   |        |   |   | 2,626    |   |   |   | 91      |   |   |   | 1,941 |   |   |   | 22,641 |   |
| Provision (recovery of provision) |         | 6,939   |   |          |   | 2,361   |            |   |   | (533      | )      |   |         | 12,753  |   |        |   | (609    | )           |   |   | 8,140    |   |   |   | 216     |   |   |   | 1,834 |   |   |   | 31,101 |   |
| Balance, end of year              | $            | 24,017  |   |          | $      | 9,630   |            |   | $      | 6,186     |   |   | $            | 24,807  |   |        | $      | 8,875   |        |   | $      | 10,453   |   |   | $      | 880     |   |   | $ | 3,388 |   |   | $ | 88,236 |   |
| Ending balance: individually      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 679     |   |          | $      | 499     |            |   | $      | 1,034     |   |   | $            | 1,437   |   |        | $      | 898     |        |   | $      | 4,373    |   |   | $      | -       |   |   | $ | - |   |   | $ | 8,920 |   |
| Ending balance: collectively      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 23,338  |   |          | $      | 9,131   |            |   | $      | 5,152     |   |   | $            | 23,370  |   |        | $      | 7,977   |        |   | $      | 6,080    |   |   | $      | 880     |   |   | $ | 3,388 |   |   | $ | 79,316 |   |
|                              |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Financing receivables:            |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Ending balance                    | $            | 548,268 |   |          | $      | 350,595 |            |   | $      | 205,072   |   |   | $            | 619,400 |   |        | $      | 314,274 |        |   | $      | 582,755  |   |   | $      | 372,980 |   |   | $ | 110,346 |   |   | $ | 3,103,690 |   |
| Ending balance: individually      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 8,468   |   |          | $      | 9,075   |            |   | $      | 17,514    |   |   | $            | 5,961   |   |        | $      | 7,116   |        |   | $      | 32,486   |   |   | $      | -       |   |   | $ | - |   |   | $ | 80,620 |   |
| Ending balance: collectively      |         |    |   |          |   |    |            |   |   |      |   |   |         |    |   |        |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment          | $            | 539,800 |   |          | $      | 341,520 |            |   | $      | 187,558   |   |   | $            | 613,439 |   |        | $      | 307,158 |        |   | $      | 550,269  |   |   | $      | 372,980 |   |   | $ | 110,346 |   |   | $ | 3,023,070 |   |

| (Dollars in thousands)              |   | 2008   |   |
|-------------------------------------|--------|--------|--------|
| Balance, beginning of year          |   | $      | 66,602 |   |
| Provision for loan and lease losses |   |   | 16,648 |   |
| Charge-offs                         |   |   | (8,393 | ) |
| Recoveries                          |   |   | 4,919  |   |
| Balance, end of year                |   | $      | 79,776 |   |

----

Table of Contents

|                                          |   |       |   |   | Unpaid    |   |   |      |   |   | Average    |   |   | Interest   |   |
|-----------------------------------------------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
|                                          |   | Recorded   |   |   | Principal |   |   | Related   |   |   | Recorded   |   |   | Income     |   |
| (Dollars in thousands)                        |   | Investment |   |   | Balance   |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
| 2010                                          |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |
| With no related allowance recorded:           |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |
| Commercial and agricultural loans             |   | $          | 4,932  |   |      | $      | 4,930  |      |   | $      | -          |   |   | $          | 4,729  |   |   | $ | 20 |   |
| Auto, light truck and environmental equipment |   |       | 1,596  |   |      |   | 1,597  |      |   |   | -          |   |   |       | 1,632  |   |   |   | - |   |
| Medium and heavy duty truck                   |   |       | 1,748  |   |      |   | 1,748  |      |   |   | -          |   |   |       | 2,923  |   |   |   | 5 |   |
| Aircraft financing                            |   |       | 4,509  |   |      |   | 4,509  |      |   |   | -          |   |   |       | 3,315  |   |   |   | 25 |   |
| Construction equipment financing              |   |       | 5,535  |   |      |   | 5,535  |      |   |   | -          |   |   |       | 5,115  |   |   |   | 5 |   |
| Commercial real estate                        |   |       | 21,078 |   |      |   | 21,071 |      |   |   | -          |   |   |       | 20,307 |   |   |   | 73 |   |
| Total with no related allowance recorded      |   |       | 39,398 |   |      |   | 39,390 |      |   |   | -          |   |   |       | 38,021 |   |   |   | 128 |   |
| With an allowance recorded:                   |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial and agricultural loans             |   |       | 8,309  |   |      |   | 8,281  |      |   |   | 4,190      |   |   |       | 11,372 |   |   |   | 543 |   |
| Auto, light truck and environmental equipment |   |       | 1,137  |   |      |   | 1,136  |      |   |   | 377        |   |   |       | 1,715  |   |   |   | 4 |   |
| Medium and heavy duty truck                   |   |       | 3,347  |   |      |   | 3,347  |      |   |   | 1,049      |   |   |       | 5,591  |   |   |   | 2 |   |
| Aircraft financing                            |   |       | 13,922 |   |      |   | 13,913 |      |   |   | 2,050      |   |   |       | 8,650  |   |   |   | 60 |   |
| Construction equipment financing              |   |       | 3,395  |   |      |   | 3,379  |      |   |   | 648        |   |   |       | 5,547  |   |   |   | 217 |   |
| Commercial real estate                        |   |       | 8,651  |   |      |   | 8,630  |      |   |   | 893        |   |   |       | 9,499  |   |   |   | 97 |   |
| Total with an allowance recorded              |   |       | 38,761 |   |      |   | 38,686 |      |   |   | 9,207      |   |   |       | 42,374 |   |   |   | 923 |   |
| Total:                                        |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial and agricultural loans             |   |       | 13,241 |   |      |   | 13,211 |      |   |   | 4,190      |   |   |       | 16,101 |   |   |   | 563 |   |
| Auto, light truck and environmental equipment |   |       | 2,733  |   |      |   | 2,733  |      |   |   | 377        |   |   |       | 3,347  |   |   |   | 4 |   |
| Medium and heavy duty truck                   |   |       | 5,095  |   |      |   | 5,095  |      |   |   | 1,049      |   |   |       | 8,514  |   |   |   | 7 |   |
| Aircraft financing                            |   |       | 18,431 |   |      |   | 18,422 |      |   |   | 2,050      |   |   |       | 11,965 |   |   |   | 85 |   |
| Construction equipment financing              |   |       | 8,930  |   |      |   | 8,914  |      |   |   | 648        |   |   |       | 10,662 |   |   |   | 222 |   |
| Commercial real estate                        |   |       | 29,729 |   |      |   | 29,701 |      |   |   | 893        |   |   |       | 29,806 |   |   |   | 170 |   |
| Total impaired loans                          |   | $          | 78,159 |   |      | $      | 78,076 |      |   | $      | 9,207      |   |   | $          | 80,395 |   |   | $ | 1,051 |   |
|                                          |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| 2009                                          |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| With no related allowance recorded:           |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial and agricultural loans             |   | $          | 5,235  |   |      | $      | 5,235  |      |   | $      | -          |   |   | $          | 3,618  |   |   | $ | 13 |   |
| Auto, light truck and environmental equipment |   |       | 6,818  |   |      |   | 6,818  |      |   |   | -          |   |   |       | 4,195  |   |   |   | 13 |   |
| Medium and heavy duty truck                   |   |       | 8,187  |   |      |   | 8,137  |      |   |   | -          |   |   |       | 3,060  |   |   |   | 44 |   |
| Aircraft financing                            |   |       | 2,130  |   |      |   | 2,131  |      |   |   | -          |   |   |       | 1,460  |   |   |   | 7 |   |
| Construction equipment financing              |   |       | 3,189  |   |      |   | 3,184  |      |   |   | -          |   |   |       | 1,537  |   |   |   | 5 |   |
| Commercial real estate                        |   |       | 15,368 |   |      |   | 15,366 |      |   |   | -          |   |   |       | 10,586 |   |   |   | 43 |   |
| Total with no related allowance recorded      |   |       | 40,927 |   |      |   | 40,871 |      |   |   | -          |   |   |       | 24,456 |   |   |   | 125 |   |
| With an allowance recorded:                   |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial and agricultural loans             |   |       | 3,233  |   |      |   | 3,230  |      |   |   | 679        |   |   |       | 5,799  |   |   |   | 93 |   |
| Auto, light truck and environmental equipment |   |       | 2,257  |   |      |   | 2,258  |      |   |   | 499        |   |   |       | 3,636  |   |   |   | 10 |   |
| Medium and heavy duty truck                   |   |       | 9,327  |   |      |   | 9,304  |      |   |   | 1,034      |   |   |       | 10,361 |   |   |   | 28 |   |
| Aircraft financing                            |   |       | 3,831  |   |      |   | 3,831  |      |   |   | 1,437      |   |   |       | 6,581  |   |   |   | 115 |   |
| Construction equipment financing              |   |       | 3,927  |   |      |   | 3,927  |      |   |   | 898        |   |   |       | 2,690  |   |   |   | 8 |   |
| Commercial real estate                        |   |       | 17,118 |   |      |   | 17,116 |      |   |   | 4,373      |   |   |       | 12,868 |   |   |   | 118 |   |
| Total with an allowance recorded              |   |       | 39,693 |   |      |   | 39,666 |      |   |   | 8,920      |   |   |       | 41,935 |   |   |   | 372 |   |
| Total:                                        |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial and agricultural loans             |   | $          | 8,468  |   |      | $      | 8,465  |      |   | $      | 679        |   |   | $          | 9,417  |   |   | $ | 106 |   |
| Auto, light truck and environmental equipment |   |       | 9,075  |   |      |   | 9,076  |      |   |   | 499        |   |   |       | 7,831  |   |   |   | 23 |   |
| Medium and heavy duty truck                   |   |       | 17,514 |   |      |   | 17,441 |      |   |   | 1,034      |   |   |       | 13,421 |   |   |   | 72 |   |
| Aircraft financing                            |   |       | 5,961  |   |      |   | 5,962  |      |   |   | 1,437      |   |   |       | 8,041  |   |   |   | 122 |   |
| Construction equipment financing              |   |       | 7,116  |   |      |   | 7,111  |      |   |   | 898        |   |   |       | 4,227  |   |   |   | 13 |   |
| Commercial real estate                        |   |       | 32,486 |   |      |   | 32,482 |      |   |   | 4,373      |   |   |       | 23,454 |   |   |   | 161 |   |
| Total impaired loans                          |   |       | 80,620 |   |      |   | 80,537 |      |   |   | 8,920      |   |   |       | 66,391 |   |   |   | 497 |   |

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| (Dollars in thousands)                    |   | 2010   |    |   | 2009   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Land                                      |   | $      | 11,089  |   |   | $      | 11,052 |   |
| Buildings and improvements                |   |   | 43,594  |   |   |   | 47,771 |   |
| Furniture and equipment                   |   |   | 35,566  |   |   |   | 36,261 |   |
| Total premises and equipment              |   |   | 90,249  |   |   |   | 95,084 |   |
| Accumulated depreciation and amortization |   |   | (56,368 | )      |   |   | (57,177 | ) |
| Net premises and equipment                |   | $      | 33,881  |   |   | $      | 37,907 |   |

| (Dollars in thousands)                                         |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Mortgage servicing assets:                                     |   |   |   |   |   |   |
| Balance at beginning of year                                   |   | $      | 8,749  |   |   | $      | 6,708 |   |
| Additions                                                      |   |   | 3,643  |   |   |   | 7,143 |   |
| Amortization                                                   |   |   | (3,277 | )      |   |   | (3,331 | ) |
| Sales                                                          |   |   | (1,559 | )      |   |   | (1,771 | ) |
| Carrying value before valuation allowance at end of year       |   |   | 7,556  |   |   |   | 8,749 |   |
| Valuation allowance:                                           |   |   |   |   |   |   |   |   |
| Balance at beginning of year                                   |   |   | (1     | )      |   |   | (2,073 | ) |
| Impairment recoveries (charges)                                |   |   | 1      |   |   |   | 2,072 |   |
| Balance at end of year                                         |   | $      | -      |   |   | $      | (1 | ) |
| Net carrying value of mortgage servicing assets at end of year |   | $      | 7,556  |   |   | $      | 8,748 |   |
| Fair value of mortgage servicing assets at end of year         |   | $      | 8,785  |   |   | $      | 10,180 |   |

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|                                            |   | 2010   |   |   | 2009   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Expected weighted-average life (in years)       |   |   | 3.34   |   |   |   | 2.95 |   |
| Weighted-average constant prepayment rate (CPR) |   |   | 19.09  | %      |   |   | 18.73 | % |
| Weighted-average discount rate                  |   |   | 8.49   | %      |   |   | 8.96 | % |

| (Dollars in thousands)         |   | 2010   |   |   | 2009   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|
| Core deposit intangibles:      |   |   |   |   |   |   |
| Gross carrying amount          |   | $      | 10,442 |   |   | $      | 10,421 |   |
| Less: accumulated amortization |   |   | (4,956 | )      |   |   | (3,699 | ) |
| Net carrying amount            |   | $      | 5,486  |   |   | $      | 6,722 |   |
| Other intangibles:             |   |   |   |   |   |   |   |   |
| Gross carrying amount          |   | $      | 254    |   |   | $      | 254 |   |
| Less: accumulated amortization |   |   | (114   | )      |   |   | (82 | ) |
| Net carrying amount            |   | $      | 140    |   |   | $      | 172 |   |

| (Dollars in thousands) |   |   |    |
|------------------------|--------|--------|---------|
| Under 3 months         |   | $      | 86,337  |   |
| 4 – 6 months     |   |   | 52,135  |   |
| 7 – 12 months    |   |   | 138,613 |   |
| Over 12 months         |   |   | 205,078 |   |
| Total                  |   | $      | 482,163 |   |

| (Dollars in thousands) |   |   |      |
|------------------------|--------|--------|-----------|
| 2011                   |   | $      | 631,192   |   |
| 2012                   |   |   | 162,127   |   |
| 2013                   |   |   | 148,905   |   |
| 2014                   |   |   | 95,757    |   |
| 2015                   |   |   | 12,373    |   |
| Thereafter             |   |   | 2,094     |   |
| Total                  |   | $      | 1,052,448 |   |

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Table of Contents

| (Dollars in thousands)                                     |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Term loan                                                  |   | $      | -      |   |   | $      | 10,000 |   |
| Federal Home Loan Bank borrowings (1.80%–6.54%)      |   |   | 15,927 |   |   |   | 955 |   |
| Mandatorily redeemable securities                          |   |   | 8,228  |   |   |   | 8,201 |   |
| Other long-term debt                                       |   |   | 661    |   |   |   | 605 |   |
| Total long-term debt and mandatorily redeemable securities |   | $      | 24,816 |   |   | $      | 19,761 |   |

|                               |   | Amount of    |   |   |     |   |   |     |
|------------------------------------|--------|--------------|--------|--------|----------|--------|--------|----------|
|                               |   | Subordinated |   |   | Interest |   |   | Maturity |
| (Dollars in thousands)             |   | Notes        |   |   | Rate     |   |   | Date     |
| September 2004 issuance-fixed rate |   |         | 30,928 |   |     | 7.66%  |   |     | 12/15/34 |
| June 2007 issuance-fixed rate      |   |         | 41,238 |   |     | 7.22%  |   |     | 06/15/37 |
| August 2007 issuance-fixed rate    |   |         | 17,526 |   |     | 7.10%  |   |     | 09/15/37 |
| Total                              |   | $            | 89,692 |   |     |   |   |     |   |

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| (Dollars in thousands - except per share amounts)                         |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|---------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Distributed earnings allocated to common stock                            |   | $      | 14,771     |   |   | $      | 14,247     |   |   | $ | 13,980 |   |
| Undistributed earnings allocated to common stock                          |   |   | 14,594     |   |   |   | 4,735      |   |   |   | 19,035 |   |
| Net earnings allocated to common stock                                    |   |   | 29,365     |   |   |   | 18,982     |   |   |   | 33,015 |   |
| Net earnings allocated to participating securities                        |   |   | 290        |   |   |   | 92         |   |   |   | 371 |   |
| Net income allocated to common stock and participating securities         |   | $      | 29,655     |   |   | $      | 19,074     |   |   | $ | 33,386 |   |
|                                                                      |   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted average shares outstanding for basic earnings per common share   |   |   | 24,232,092 |   |   |   | 24,157,179 |   |   |   | 24,105,753 |   |
| Dilutive effect of stock compensation                                     |   |   | 7,102      |   |   |   | 6,510      |   |   |   | 281,979 |   |
| Weighted average shares outstanding for diluted earnings per common share |   |   | 24,239,194 |   |   |   | 24,163,689 |   |   |   | 24,387,732 |   |
|                                                                      |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic earnings per common share                                           |   | $      | 1.21       |   |   | $      | 0.79       |   |   | $ | 1.38 |   |
| Diluted earnings per common share                                         |   | $      | 1.21       |   |   | $      | 0.79       |   |   | $ | 1.37 |   |

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Table of Contents

|                         |   |      |      |   | Non-Vested Stock   |   |    | Stock Options |   |
|------------------------------|--------|-----------|-----------|--------|--------------------|--------|---------|---------------|--------|
|                         |   |      |      |   | Awards Outstanding |   |    | Outstanding   |   |
|                         |   |      |      |   |               |   |    | Weighted-     |   |   |   |   |   | Weighted- |   |
|                         |   | Shares    |      |   |               |   |    | Average       |   |   |   |   |   | Average |   |
|                         |   | Available |      |   | Number of          |   |    | Grant-Date    |   |   | Number of |   |   | Exercise |   |
|                         |   | for Grant |      |   |  Shares       |   |    | Fair Value    |   |   | Shares |   |   | Price |   |
| Balance, January 1, 2008     |   |      | 2,373,668 |   |               |   | 470,202 |          |   | $ | 15.18 |   |   |   | 471,517 |   |   | $ | 26.51 |   |
| Shares authorized --2008 EIP |   |      | 64,847    |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Granted                      |   |      | (66,847   | )      |               |   | 66,847  |          |   |   | 17.96 |   |   |   | - |   |   |   | - |   |
| Stock options exercised      |   |      | -         |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Stock awards vested          |   |      | -         |   |               |   | (37,070 | )             |   |   | 16.92 |   |   |   | - |   |   |   | - |   |
| Forfeited                    |   |      | 15,902    |   |               |   | (64,508 | )             |   |   | 15.10 |   |   |   | (390,569 | ) |   |   | 28.17 |   |
| Canceled                     |   |      | -         |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance, December 31, 2008   |   |      | 2,387,570 |   |               |   | 435,471 |          |   |   | 15.47 |   |   |   | 80,948 |   |   |   | 18.51 |   |
| Shares authorized --2009 EIP |   |      | 46,261    |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Granted                      |   |      | (87,761   | )      |               |   | 87,761  |          |   |   | 17.75 |   |   |   | - |   |   |   | - |   |
| Stock options exercised      |   |      | -         |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Stock awards vested          |   |      | -         |   |               |   | (34,395 | )             |   |   | 16.99 |   |   |   | - |   |   |   | - |   |
| Forfeited                    |   |      | 2,047     |   |               |   | (66,930 | )             |   |   | 11.85 |   |   |   | (9,185 | ) |   |   | 21.03 |   |
| Canceled                     |   |      | -         |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance, December 31, 2009   |   |      | 2,348,117 |   |               |   | 421,907 |          |   |   | 16.40 |   |   |   | 71,763 |   |   |   | 18.19 |   |
| Shares authorized --2010 EIP |   |      | 55,351    |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Granted                      |   |      | (93,350   | )      |               |   | 93,350  |          |   |   | 17.31 |   |   |   | - |   |   |   | - |   |
| Stock options exercised      |   |      | -         |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Stock awards vested          |   |      | -         |   |               |   | (21,666 | )             |   |   | 19.21 |   |   |   | - |   |   |   | - |   |
| Forfeited                    |   |      | 9,530     |   |               |   | (54,981 | )             |   |   | 12.68 |   |   |   | (9,255 | ) |   |   | 25.03 |   |
| Canceled                     |   |      | -         |   |               |   | -       |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance, December 31, 2010   |   |      | 2,319,648 |   |               |   | 438,610 |          |   | $ | 16.92 |   |   |   | 62,508 |   |   | $ | 17.18 |   |

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Table of Contents

|                     | Options Outstanding |                  | Options Exercisable |
|--------------------------|---------------------|-----------------------|---------------------|
|                     |                | Weighted-Average      |                |   |   |   |
|                     | Number of           | Remaining Contractual | Weighted-Average    |   | Number of | Weighted-Average |
| Range of Exercise Prices | Shares              | Life (Years)          | Exercise Price      |   | Shares | Exercise Price |
| $12.04 to $17.99         | 29,508              | 1.73                  | $13.38              |   | 26,758 | $13.52 |
| $18.00 to $20.86         | 33,000              | 0.55                  | 20.58               |   | 33,000 | 20.58 |

| Year Ended December 31  (Dollars in thousands) |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Current:                                                 |   |   |   |   |   |   |   |   |   |
| Federal                                                  |   | $      | 17,446 |   |   | $      | (983   | )      |   | $ | 21,112 |   |
| State                                                    |   |   | 2,841  |   |   |   | 1,324  |   |   |   | 2,682 |   |
| Total current                                            |   |   | 20,287 |   |   |   | 341    |   |   |   | 23,794 |   |
| Deferred:                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                                                  |   |   | (731   | )      |   |   | 6,172  |   |   |   | (9,446 | ) |
| State                                                    |   |   | (324   | )      |   |   | (485   | )      |   |   | (1,333 | ) |
| Total deferred                                           |   |   | (1,055 | )      |   |   | 5,687  |   |   |   | (10,779 | ) |
| Total provision                                          |   | $      | 19,232 |   |   | $      | 6,028  |   |   | $ | 13,015 |   |

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Table of Contents

|                                                                                                                                                |   | 2010   |   |   | 2009       |   |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
|                                                                                                                                                |   |   |   |   | Percent of |   |   |   |   |   | Percent of |   |   |   |   |   | Percent of |   |
|                                                                                                                                                |   |   |   |   | Pretax     |   |   |   |   |   | Pretax |   |   |   |   |   | Pretax |   |
| Year Ended December 31  (Dollars in thousands)                                                                                            |   | Amount |   |   | Income     |   |   | Amount |   |   | Income |   |   | Amount |   |   | Income |   |
| Statutory federal income tax                                                                                                                        |   | $      | 21,167 |   |       |   | 35.0   | %      |   | $ | 11,031 |   |   |   | 35.0 | % |   | $ | 16,240 |   |   |   | 35.0 | % |
| (Decrease) increase in income taxes resulting from:                                                                                                 |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt interest income                                                                                                                          |   |   | (2,240 | )      |       |   | (3.7   | )      |   |   | (2,539 | ) |   |   | (8.1 | ) |   |   | (2,412 | ) |   |   | (5.2 | ) |
| Settlements with taxing authorities                                                                                                                 |   |   | -      |   |       |   | -      |   |   |   | (2,170 | ) |   |   | (6.9 | ) |   |   | - |   |   |   | - |   |
| State taxes, net of federal income tax benefit                                                                                                      |   |   | 1,636  |   |       |   | 2.7    |   |   |   | 545 |   |   |   | 1.7 |   |   |   | 877 |   |   |   | 1.9 |   |
| Other                                                                                                                                               |   |   | (1,331 | )      |       |   | (2.2   | )      |   |   | (839 | ) |   |   | (2.6 | ) |   |   | (1,690 | ) |   |   | (3.6 | ) |
| Total                                                                                                                                               |   | $      | 19,232 |   |       |   | 31.8   | %      |   | $ | 6,028 |   |   |   | 19.1 | % |   | $ | 13,015 |   |   |   | 28.1 | % |
|                                                                                                                                                |   |
| The tax expense (benefit) applicable to securities gains for the years 2010, 2009, and 2008 was $868,000, $639,000, and $(3,786,000), respectively. |   |

| Deferred tax assets and liabilities as of December 31, 2010 and 2009 consisted of the following: |   |
|--------------------------------------------------------------------------------------------------|--------|
|                                                                                             |   |
| (Dollars in thousands)                                                                           |   | 2010 |   |   | 2009 |   |
| Deferred tax assets:                                                                             |   |   |   |   |   |   |
| Reserve for loan and lease losses                                                                |   | $ | 33,446 |   |   | $ | 33,809 |   |
| Accruals for employee benefits                                                                   |   |   | 3,959 |   |   |   | 2,785 |   |
| Alternative minimum tax                                                                          |   |   | - |   |   |   | 1,678 |   |
| Capital loss carryover                                                                           |   |   | 455 |   |   |   | 459 |   |
| Securities valuation reserve                                                                     |   |   | 110 |   |   |   | 82 |   |
| Other                                                                                            |   |   | 671 |   |   |   | 557 |   |
| Total deferred tax assets                                                                        |   |   | 38,641 |   |   |   | 39,370 |   |
| Deferred tax liabilities:                                                                        |   |   |   |   |   |   |   |   |
| Differing depreciable bases in premises and leased equipment                                     |   |   | 27,051 |   |   |   | 30,671 |   |
| Differing bases in assets related to acquisitions                                                |   |   | 3,608 |   |   |   | 3,242 |   |
| Net unrealized gains on securities available-for-sale                                            |   |   | 6,407 |   |   |   | 3,105 |   |
| Mortgage servicing                                                                               |   |   | 2,435 |   |   |   | 3,018 |   |
| Capitalized loan costs                                                                           |   |   | 1,188 |   |   |   | 1,306 |   |
| Prepaid expenses                                                                                 |   |   | 2,728 |   |   |   | 615 |   |
| Other                                                                                            |   |   | 907 |   |   |   | 857 |   |
| Total deferred tax liabilities                                                                   |   |   | 44,324 |   |   |   | 42,814 |   |
| Net deferred tax (liability)/asset                                                               |   | $ | (5,683 | ) |   | $ | (3,444 | ) |

| (Dollars in thousands)                                       |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance, beginning of year                                   |   | $      | 3,043  |   |   | $      | 7,601  |   |   | $ | 7,063 |   |
| Additions based on tax positions related to the current year |   |   | 431    |   |   |   | 409    |   |   |   | 1,271 |   |
| Additions for tax positions of prior years                   |   |   | 1,105  |   |   |   | 771    |   |   |   | 693 |   |
| Reductions for tax positions of prior years                  |   |   | (2     | )      |   |   | (52    | )      |   |   | (136 | ) |
| Reductions due to lapse in statute of limitations            |   |   | (1,153 | )      |   |   | (837   | )      |   |   | (1,290 | ) |
| Settlements                                                  |   |   | -      |   |   |   | (4,849 | )      |   |   | - |   |
| Balance, end of year                                         |   | $      | 3,424  |   |   | $      | 3,043  |   |   | $ | 7,601 |   |

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Table of Contents

| Year Ended December 31  (Dollars in thousands) |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Gross rental expense                                     |   | $      | 3,173  |   |   | $      | 3,016  |   |   | $ | 3,116 |   |
| Sublease rental income                                   |   |   | (1,562 | )      |   |   | (1,516 | )      |   |   | (1,523 | ) |
| Net rental expense                                       |   | $      | 1,611  |   |   | $      | 1,500  |   |   | $ | 1,593 |   |

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Table of Contents

|                                             |   |        |    | Asset derivatives   |                    |   | Liability derivatives |   |
|--------------------------------------------------|--------|-------------|---------|---------------------|-------------------------|--------|-----------------------|--------|
|                                             |   | Notional or |    | Statement of        |                    |   |                  |   | Statement of |   |   |   |   |
|                                             |   | contractual |    | Financial Condition |                    | Fair   |                  |   | Financial Condition |   |   | Fair |   |
| (Dollars in thousands)                           |   | amount      |    | location            |                    | value  |                  |   | location |   |   | value |   |
|                                             |   |        |    |                |                    |   |                  |   |   |   |   |   |   |
| Interest rate swap contracts                     |   | $           | 446,224 |                | Other assets            |   | $                     | 14,959 |   |   | Other liabilities |   |   | $ | 15,384 |   |
| Loan commitments                                 |   |        | 28,666  |                | Mortgages held for sale |   |                  | 30     |   |   | N/A |   |   |   | - |   |
| Forward contracts                                |   |        | 40,320  |                | Mortgages held for sale |   |                  | 451    |   |   | N/A |   |   |   | - |   |
| Total - December 31, 2010    |   | $           | 515,210 |                |                    |   | $                     | 15,440 |   |   |   |   |   |   | $ | 15,384 |   |
|                                             |   |        |    |                |                    |   |                  |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap contracts                     |   | $           | 412,717 |                | Other assets            |   | $                     | 13,516 |   |   | Other liabilities |   |   | $ | 13,988 |   |
| Loan commitments                                 |   |        | 48,821  |                | Mortgages held for sale |   |                  | 77     |   |   | N/A |   |   |   | - |   |
| Forward contracts                                |   |        | 38,940  |                | Mortgages held for sale |   |                  | 411    |   |   | N/A |   |   |   | - |   |
| Total - December 31, 2009         |   | $           | 500,478 |                |                    |   | $                     | 14,004 |   |   |   |   |   |   | $ | 13,988 |   |

|                         |        Statement of |   | Gain (loss) |   |
|------------------------------|---------------------------------------------------|--------|-------------|--------|
| (Dollars in thousands)       |     Income location                |   | 2010        |   |   | 2009 |   |   | 2008 |   |
| Interest rate swap contracts | Other expense                                     |   | $           | 61     |   |   | $ | (431 | ) |   | $ | (271 | ) |
| Interest rate swap contracts | Other income                                      |   |        | 448    |   |   |   | 77 |   |   |   | 744 |   |
| Loan commitments             | Mortgage banking income                           |   |        | (47    | ) |   |   | (1,505 | ) |   |   | 1,595 |   |
| Forward contracts            | Mortgage banking income                           |   |        | 40     |   |   |   | 1,796 |   |   |   | (1,131 | ) |
| Total                        |                                              |   | $           | 502    |   |   | $ | (63 | ) |   | $ | 937 |   |

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Table of Contents

|                                      |   |   |    |   |     |   |   |              |   |   |              |   |   | To Be Well        |   |
|-------------------------------------------|--------|--------|---------|--------|----------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                      |   |   |    |   |     |   |   |              |   |   |              |   |   | Capitalized Under |   |
|                                      |   |   |    |   |     |   |   | Minimum Capital   |   |   | Prompt Corrective |   |
|                                      |   | Actual |    |   | Adequacy |   |   | Action Provisions |   |
| (Dollars in thousands)                    |   | Amount |    |   | Ratio    |   |   | Amount            |   |   | Ratio             |   |   | Amount            |   |   | Ratio |   |
| 2010                                      |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |
| Total Capital (to Risk-Weighted Assets):  |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |
| 1st Source Corporation                    |   | $      | 517,527 |   |     |   | 15.34  | %                 |   | $      | 269,840           |   |   |              | 8.00   | % |   | $ | 337,300 |   |   |   | 10.00 | % |
| 1st Source Bank                           |   |   | 511,953 |   |     |   | 15.23  | %                 |   |   | 268,885           |   |   |              | 8.00   | % |   |   | 336,107 |   |   |   | 10.00 | % |
| Tier I Capital (to Risk-Weighted Assets): |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| 1st Source Corporation                    |   |   | 473,846 |   |     |   | 14.05  | %                 |   |   | 134,920           |   |   |              | 4.00   | % |   |   | 202,380 |   |   |   | 6.00 | % |
| 1st Source Bank                           |   |   | 469,329 |   |     |   | 13.96  | %                 |   |   | 134,443           |   |   |              | 4.00   | % |   |   | 201,664 |   |   |   | 6.00 | % |
| Tier I Capital (to Average Assets):       |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| 1st Source Corporation                    |   |   | 473,846 |   |     |   | 10.39  | %                 |   |   | 182,497           |   |   |              | 4.00   | % |   |   | 228,121 |   |   |   | 5.00 | % |
| 1st Source Bank                           |   |   | 469,329 |   |     |   | 10.32  | %                 |   |   | 181,843           |   |   |              | 4.00   | % |   |   | 227,304 |   |   |   | 5.00 | % |
|                                      |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| 2009                                      |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets):  |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| 1st Source Corporation                    |   | $      | 605,793 |   |     |   | 17.72  | %                 |   | $      | 273,568           |   |   |              | 8.00   | % |   | $ | 341,961 |   |   |   | 10.00 | % |
| 1st Source Bank                           |   |   | 571,328 |   |     |   | 16.78  | %                 |   |   | 272,404           |   |   |              | 8.00   | % |   |   | 340,505 |   |   |   | 10.00 | % |
| Tier I Capital (to Risk-Weighted Assets): |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| 1st Source Corporation                    |   |   | 561,862 |   |     |   | 16.43  | %                 |   |   | 136,784           |   |   |              | 4.00   | % |   |   | 205,176 |   |   |   | 6.00 | % |
| 1st Source Bank                           |   |   | 528,184 |   |     |   | 15.51  | %                 |   |   | 136,202           |   |   |              | 4.00   | % |   |   | 204,303 |   |   |   | 6.00 | % |
| Tier I Capital (to Average Assets):       |   |   |    |   |     |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| 1st Source Corporation                    |   |   | 561,862 |   |     |   | 12.74  | %                 |   |   | 176,346           |   |   |              | 4.00   | % |   |   | 220,433 |   |   |   | 5.00 | % |
| 1st Source Bank                           |   |   | 528,184 |   |     |   | 12.03  | %                 |   |   | 175,577           |   |   |              | 4.00   | % |   |   | 219,471 |   |   |   | 5.00 | % |

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Table of Contents

|                                                                                                                                                                                                                                                                         |   |                |   |   |             |   |   | Excess of fair value |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------|--------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                         |   |                |   |   |             |   |   | carrying amount      |   |
|                                                                                                                                                                                                                                                                         |   | Fair value carrying |   |   | Aggregate unpaid |   |   | over (under) unpaid  |   |
| (Dollars in thousands)                                                                                                                                                                                                                                                       |   | amount              |   |   | principal        |   |   | principal            |   |
| December 31, 2010                                                                                                                                                                                                                                                            |   |                |   |   |             |   |   |                 |   |
| Mortgages held for sale reported at fair value:                                                                                                                                                                                                                              |   |                |   |   |             |   |   |                 |   |
|   Total Loans                                                                                                                                                                                                                                                      |   | $                   | 32,599 |   |             | $      | 32,285 |                 |   | $ | 314 |   |
|   Nonaccrual Loans                                                                                                                                                                                                                                                 |   |                | -      |   |             |   | -      |                 |   |   | - |   |
|   Loans 90 days or more past due and still accruing                                                                                                                                                                                                                |   |                | -      |   |             |   | -      |                 |   |   | - |   |
|                                                                                                                                                                                                                                                                         |   |                |   |   |             |   |   |                 |   |   |   |   |
| December 31, 2009                                                                                                                                                                                                                                                            |   |                |   |   |             |   |   |                 |   |   |   |   |
| Mortgages held for sale reported at fair value:                                                                                                                                                                                                                              |   |                |   |   |             |   |   |                 |   |   |   |   |
|   Total Loans                                                                                                                                                                                                                                                      |   | $                   | 26,649 |   |             | $      | 25,758 |                 |   | $ | 891 |  (1) |
|   Nonaccrual Loans                                                                                                                                                                                                                                                 |   |                | -      |   |             |   | -      |                 |   |   | - |   |
|   Loans 90 days or more past due and still accruing                                                                                                                                                                                                                |   |                | -      |   |             |   | -      |                 |   |   | - |   |
|                                                                                                                                                                                                                                                                         |   |
| (1) The excess of fair value carrying amount over unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding, gains and losses on the related loan commitment prior to funding, and premiums on acquired loans. |

| ·  | U.S. treasuries are priced using the market approach and utilizing live data feeds from active market exchanges for identical securities. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Government-sponsored agency debt securities and corporate bonds are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Other government-sponsored agency securities, mortgage-backed securities and some of the actively traded REMICs and CMOs, are primarily priced using available market information including benchmark yields, prepayment speeds, spreads and volatility of similar securities. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Other inactive government-sponsored agency securities are primarily priced using consensus pricing and dealer quotes. |
|--------------|-----------------------------------------------------------------------------------------------------------------------|

| ·  | State and political subdivisions are largely grouped by characteristics, i.e., geographical data and source of revenue in trade dissemination systems. Since some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. Local tax anticipation warrants, with very little market activity, are priced using an appropriate market yield curve. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Marketable equity (common) securities are primarily priced using the market approach and utilizing live data feeds from active market exchanges for identical securities. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| (Dollars in thousands)                                                 |   | Level 1 |   |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
|------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|--------|--------|--------|--------|
| Assets:                                                                |   |    |   |   |    |   |    |    |   |   |   |   |
| Investment securities available-for-sale:                              |   |    |   |   |    |   |    |    |   |   |   |   |
| U.S. Treasury and Federal agencies securities                          |   | $       | 20,186 |   |    | $      | 427,123 |    |   | $      | -      |   |   | $ | 447,309 |   |
| U.S. States and political subdivisions securities                      |   |    | -      |   |    |   | 134,001 |    |   |   | 16,306 |   |   |   | 150,307 |   |
| Mortgage-backed securities - Federal agencies                          |   |    | -      |   |    |   | 316,668 |    |   |   | -      |   |   |   | 316,668 |   |
| Corporate debt securities                                              |   |    | -      |   |    |   | 35,623  |    |   |   | 9,992  |   |   |   | 45,615 |   |
| Foreign government and other securities                                |   |    | -      |   |    |   | 5,041   |    |   |   | 675    |   |   |   | 5,716 |   |
| Total debt securities                                                  |   |    | 20,186 |   |    |   | 918,456 |    |   |   | 26,973 |   |   |   | 965,615 |   |
| Marketable equity securities                                           |   |    | 3,403  |   |    |   | -       |    |   |   | -      |   |   |   | 3,403 |   |
| Total investment securities available-for-sale                         |   |    | 23,589 |   |    |   | 918,456 |    |   |   | 26,973 |   |   |   | 969,018 |   |
| Trading account securities                                             |   |    | 138    |   |    |   | -       |    |   |   | -      |   |   |   | 138 |   |
| Mortgages held for sale                                                |   |    | -      |   |    |   | 32,599  |    |   |   | -      |   |   |   | 32,599 |   |
| Accrued income and other liabilities (interest rate swap agreements)   |   |    | -      |   |    |   | 14,959  |    |   |   | -      |   |   |   | 14,959 |   |
| Total - December 31, 2010                                              |   | $       | 23,727 |   |    | $      | 966,014 |    |   | $      | 26,973 |   |   | $ | 1,016,714 |   |
|                                                                   |   |    |   |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Liabilities:                                                           |   |    |   |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Accrued expenses and other liabilities (interest rate swap agreements) |   | $       | -      |   |    | $      | 15,384  |    |   | $      | -      |   |   | $ | 15,384 |   |
| Total - December 31, 2010                                              |   | $       | -      |   |    | $      | 15,384  |    |   | $      | -      |   |   | $ | 15,384 |   |
|                                                                   |   |    |   |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Assets:                                                                |   |    |   |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Investment securities available-for-sale:                              |   |    |   |   |    |   |    |    |   |   |   |   |   |   |   |   |
| U.S. Treasury and Federal agencies securities                          |   | $       | 20,052 |   |    | $      | 369,117 |    |   | $      | -      |   |   | $ | 389,169 |   |
| U.S. States and political subdivisions securities                      |   |    | -      |   |    |   | 173,509 |    |   |   | 18,310 |   |   |   | 191,819 |   |
| Mortgage-backed securities - Federal agencies                          |   |    | -      |   |    |   | 290,977 |    |   |   | -      |   |   |   | 290,977 |   |
| Corporate debt securities                                              |   |    | -      |   |    |   | 26,322  |    |   |   | -      |   |   |   | 26,322 |   |
| Foreign government and other securities                                |   |    | -      |   |    |   | -       |    |   |   | 675    |   |   |   | 675 |   |
| Total debt securities                                                  |   |    | 20,052 |   |    |   | 859,925 |    |   |   | 18,985 |   |   |   | 898,962 |   |
| Marketable equity securities                                           |   |    | 2,667  |   |    |   | -       |    |   |   | 9      |   |   |   | 2,676 |   |
| Total investment securities available-for-sale                         |   |    | 22,719 |   |    |   | 859,925 |    |   |   | 18,994 |   |   |   | 901,638 |   |
| Trading account securities                                             |   |    | 125    |   |    |   | -       |    |   |   | -      |   |   |   | 125 |   |
| Mortgages held for sale                                                |   |    | -      |   |    |   | 26,649  |    |   |   | -      |   |   |   | 26,649 |   |
| Accrued income and other liabilities (interest rate swap agreements)   |   |    | -      |   |    |   | 13,516  |    |   |   | -      |   |   |   | 13,516 |   |
| Total - December 31, 2009                                              |   | $       | 22,844 |   |    | $      | 900,090 |    |   | $      | 18,994 |   |   | $ | 941,928 |   |
|                                                                   |   |    |   |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Liabilities:                                                           |   |    |   |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Accrued expenses and other liabilities (interest rate swap agreements) |   | $       | -      |   |    | $      | 13,988  |    |   | $      | -      |   |   | $ | 13,988 |   |
| Total - December 31, 2009                                              |   | $       | -      |   |    | $      | 13,988  |    |   | $      | -      |   |   | $ | 13,988 |   |

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Table of Contents

|                                         |   |                   |    |   |           |   |   |       |   |   | Foreign    |   |   | Investment     |   |
|----------------------------------------------|--------|------------------------|---------|--------|----------------|--------|--------|------------|--------|--------|------------|--------|--------|----------------|--------|
|                                         |   | U.S. States and        |    |   |           |   |   | Marketable |   |   | government |   |   | securities     |   |
|                                         |   | political subdivisions |    |   | Corporate debt |   |   | equity     |   |   | and other  |   |   | available-for- |   |
| (Dollars in thousands)                       |   | securities             |    |   | securities     |   |   | securities |   |   | securities |   |   | sale           |   |
| Beginning balance January 1, 2010            |   | $                      | 18,310  |   |           | $      | -      |       |   | $      | 9          |   |   | $              | 675    |   |   | $ | 18,994 |   |
| Total gains or losses (realized/unrealized): |   |                   |    |   |           |   |   |       |   |   |       |   |   |           |   |   |   |   |   |   |
| Included in earnings                         |   |                   | -       |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | - |   |
| Included in other comprehensive income       |   |                   | 38      |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | 38 |   |
| Purchases                                    |   |                   | 1,034   |   |           |   | 9,992  |       |   |   | -          |   |   |           | 100    |   |   |   | 11,126 |   |
| Issuances                                    |   |                   | -       |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | - |   |
| Settlements                                  |   |                   | -       |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | - |   |
| Maturities                                   |   |                   | (13,941 | )      |           |   | -      |       |   |   | -          |   |   |           | (100   | ) |   |   | (14,041 | ) |
| Transfers into Level 3                       |   |                   | 10,865  |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | 10,865 |   |
| Transfers out of Level 3                     |   |                   | -       |   |           |   | -      |       |   |   | (9         | )      |   |           | -      |   |   |   | (9 | ) |
| Ending balance December 31, 2010             |   | $                      | 16,306  |   |           | $      | 9,992  |       |   | $      | -          |   |   | $              | 675    |   |   | $ | 26,973 |   |
|                                         |   |                   |    |   |           |   |   |       |   |   |       |   |   |           |   |   |   |   |   |   |
| Beginning balance January 1, 2009            |   | $                      | 18,972  |   |           | $      | -      |       |   | $      | 9          |   |   | $              | 435    |   |   | $ | 19,416 |   |
| Total gains or losses (realized/unrealized): |   |                   |    |   |           |   |   |       |   |   |       |   |   |           |   |   |   |   |   |   |
| Included in earnings                         |   |                   | -       |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | - |   |
| Included in other comprehensive income       |   |                   | 362     |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | 362 |   |
| Purchases and issuances                      |   |                   | 20,116  |   |           |   | -      |       |   |   | -          |   |   |           | 400    |   |   |   | 20,516 |   |
| Settlements                                  |   |                   | -       |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | - |   |
| Maturities                                   |   |                   | (21,140 | )      |           |   | -      |       |   |   | -          |   |   |           | (160   | ) |   |   | (21,300 | ) |
| Transfers in and/or out of Level 3           |   |                   | -       |   |           |   | -      |       |   |   | -          |   |   |           | -      |   |   |   | - |   |
| Ending balance December 31, 2009             |   | $                      | 18,310  |   |           | $      | -      |       |   | $      | 9          |   |   | $              | 675    |   |   | $ | 18,994 |   |

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Table of Contents

| (Dollars in thousands)                                      |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total   |   |
|-------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| December 31, 2010                                           |   |    |   |   |    |   |   |    |   |   |    |   |
| Loans                                                       |   | $       | -      |   |    | $      | -      |    |   | $      | 78,076  |   |   | $ | 78,076 |   |
| Accrued income and other assets (partnership investments)   |   |    | -      |   |    |   | -      |    |   |   | 1,964   |   |   |   | 1,964 |   |
| Accrued income and other assets (mortgage servicing rights) |   |    | -      |   |    |   | -      |    |   |   | 7,556   |   |   |   | 7,556 |   |
| Accrued income and other assets (repossessions)             |   |    | -      |   |    |   | -      |    |   |   | 5,670   |   |   |   | 5,670 |   |
| Accrued income and other assets (other real estate)         |   |    | -      |   |    |   | -      |    |   |   | 7,592   |   |   |   | 7,592 |   |
| Total                                                       |   | $       | -      |   |    | $      | -      |    |   | $      | 100,858 |   |   | $ | 100,858 |   |
|                                                        |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| December 31, 2009                                           |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Loans                                                       |   | $       | -      |   |    | $      | -      |    |   | $      | 80,537  |   |   | $ | 80,537 |   |
| Accrued income and other assets (partnership investments)   |   |    | -      |   |    |   | -      |    |   |   | 2,662   |   |   |   | 2,662 |   |
| Accrued income and other assets (mortgage servicing rights) |   |    | -      |   |    |   | -      |    |   |   | 8,748   |   |   |   | 8,748 |   |
| Accrued income and other assets (repossessions)             |   |    | -      |   |    |   | -      |    |   |   | 10,165  |   |   |   | 10,165 |   |
| Accrued income and other assets (other real estate)         |   |    | -      |   |    |   | -      |    |   |   | 6,529   |   |   |   | 6,529 |   |
| Total                                                       |   | $       | -      |   |    | $      | -      |    |   | $      | 108,641 |   |   | $ | 108,641 |   |

|                                                                                                       |   | 2010           |      |   | 2009       |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|------------|--------|
|                                                                                                       |   | Carrying or    |      |   |       |   |   | Carrying or |   |   |   |   |
| (Dollars in thousands)                                                                                     |   | Contract Value |      |   | Fair Value |   |   | Contract Value |   |   | Fair Value |   |
| Assets:                                                                                                    |   |           |      |   |       |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                    |   | $              | 62,313    |   |       | $      | 62,313 |   |   | $ | 72,872 |   |   | $ | 72,872 |   |
| Federal funds sold and interest bearing deposits with other banks                                          |   |           | 36,394    |   |       |   | 36,394 |   |   |   | 141,166 |   |   |   | 141,166 |   |
| Investment securities, available-for-sale                                                                  |   |           | 969,018   |   |       |   | 969,018 |   |   |   | 901,638 |   |   |   | 901,638 |   |
| Other investments and trading account securities                                                           |   |           | 19,646    |   |       |   | 19,646 |   |   |   | 21,137 |   |   |   | 21,137 |   |
| Mortgages held for sale                                                                                    |   |           | 32,599    |   |       |   | 32,599 |   |   |   | 26,649 |   |   |   | 26,649 |   |
| Loans and leases, net of reserve for loan and lease losses                                                 |   |           | 2,983,749 |   |       |   | 3,040,895 |   |   |   | 3,004,914 |   |   |   | 3,042,251 |   |
| Cash surrender value of life insurance policies                                                            |   |           | 54,182    |   |       |   | 54,182 |   |   |   | 51,342 |   |   |   | 51,342 |   |
| Mortgage servicing rights                                                                                  |   |           | 7,556     |   |       |   | 8,785 |   |   |   | 8,748 |   |   |   | 10,180 |   |
| Interest rate swaps                                                                                        |   |           | 14,959    |   |       |   | 14,959 |   |   |   | 13,516 |   |   |   | 13,516 |   |
| Liabilities:                                                                                               |   |           |      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                   |   | $              | 3,622,745 |   |       | $      | 3,654,067 |   |   | $ | 3,652,464 |   |   | $ | 3,692,203 |   |
| Short-term borrowings                                                                                      |   |           | 155,989   |   |       |   | 155,989 |   |   |   | 150,110 |   |   |   | 150,110 |   |
| Long-term debt and mandatorily redeemable securities                                                       |   |           | 24,816    |   |       |   | 25,072 |   |   |   | 19,761 |   |   |   | 19,831 |   |
| Subordinated notes                                                                                         |   |           | 89,692    |   |       |   | 79,811 |   |   |   | 89,692 |   |   |   | 81,118 |   |
| Interest rate swaps                                                                                        |   |           | 15,384    |   |       |   | 15,384 |   |   |   | 13,988 |   |   |   | 13,988 |   |
| Off-balance-sheet instruments *                                                                            |   |           | -         |   |       |   | 134 |   |   |   | - |   |   |   | 150 |   |
| * Represents estimated cash outflows required to currently settle the obligations at current market rates. |   |

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Table of Contents

| STATEMENTS OF FINANCIAL CONDITION                                                 |   |   |    |   |   |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                              |   |   |    |   |   |   |
| December 31 (Dollars in thousands)                                                |   | 2010   |    |   | 2009   |   |
| ASSETS                                                                            |   |   |    |   |   |   |
| Cash                                                                              |   | $      | 1       |   |   | $      | 1 |   |
| Short-term investments with bank subsidiary                                       |   |   | 11,298  |   |   |   | 45,695 |   |
| Investment securities, available-for-sale                                         |   |   |    |   |   |   |   |   |
| (amortized cost of $2,394 and $6,175 at December 31, 2010 and 2009, respectively) |   |   | 4,431   |   |   |   | 7,581 |   |
| Trading account securities                                                        |   |   | 138     |   |   |   | 125 |   |
| Investments in:                                                                   |   |   |    |   |   |   |   |   |
| Bank subsidiaries                                                                 |   |   | 566,302 |   |   |   | 621,265 |   |
| Non-bank subsidiaries                                                             |   |   | 2,491   |   |   |   | 2,396 |   |
| Premises and equipment, net                                                       |   |   | 281     |   |   |   | 2,240 |   |
| Other assets                                                                      |   |   | 8,134   |   |   |   | 7,124 |   |
| Total assets                                                                      |   | $      | 593,076 |   |   | $      | 686,427 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                        |   |   |    |   |   |   |   |   |
| Commercial paper borrowings                                                       |   | $      | 4,241   |   |   | $      | 5,113 |   |
| Other liabilities                                                                 |   |   | 3,871   |   |   |   | 2,518 |   |
| Long-term debt and mandatorily redeemable securities                              |   |   | 98,581  |   |   |   | 108,476 |   |
| Total liabilities                                                                 |   |   | 106,693 |   |   |   | 116,107 |   |
| Shareholders’ equity                                                        |   |   | 486,383 |   |   |   | 570,320 |   |
| Total liabilities and shareholders’ equity                                  |   | $      | 593,076 |   |   | $      | 686,427 |   |

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Table of Contents

| STATEMENTS OF INCOME                                                                                           |   |   |    |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                                                                           |   |   |    |   |   |   |   |   |   |
| Year Ended December 31 (Dollars in thousands)                                                                  |   | 2010   |    |   | 2009   |   |   | 2008   |   |
| Income:                                                                                                        |   |   |    |   |   |   |   |   |   |
| Dividends from bank subsidiary                                                                                 |   | $      | 106,485 |   |   | $      | 23,104 |   |   | $ | 17,468 |   |
| Rental income from subsidiaries                                                                                |   |   | 2,439   |   |   |   | 2,391  |   |   |   | 2,412 |   |
| Other                                                                                                          |   |   | 584     |   |   |   | 507    |   |   |   | 994 |   |
| Investment securities and other investment gains (losses)                                                      |   |   | 592     |   |   |   | (426   | )      |   |   | (1,053 | ) |
| Total income                                                                                                   |   |   | 110,100 |   |   |   | 25,576 |   |   |   | 19,821 |   |
| Expenses:                                                                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest on long-term debt and mandatorily redeemable securities                                               |   |   | 7,497   |   |   |   | 7,477  |   |   |   | 7,773 |   |
| Interest on commercial paper and other short-term borrowings                                                   |   |   | 30      |   |   |   | 16     |   |   |   | 209 |   |
| Rent expense                                                                                                   |   |   | 1,109   |   |   |   | 1,090  |   |   |   | 1,060 |   |
| Other                                                                                                          |   |   | 3,693   |   |   |   | 1,339  |   |   |   | 1,850 |   |
| Total expenses                                                                                                 |   |   | 12,329  |   |   |   | 9,922  |   |   |   | 10,892 |   |
| Income before income tax benefit and equity in undistributed (distributed in excess of) income of subsidiaries |   |   | 97,771  |   |   |   | 15,654 |   |   |   | 8,929 |   |
| Income tax benefit                                                                                             |   |   | 3,365   |   |   |   | 2,899  |   |   |   | 3,308 |   |
| Income before equity in undistributed (distributed in excess of) income of subsidiaries                        |   |   | 101,136 |   |   |   | 18,553 |   |   |   | 12,237 |   |
| Equity in (distributed in excess of) undistributed income of subsidiaries:                                     |   |   |    |   |   |   |   |   |   |   |   |   |
| Bank subsidiaries                                                                                              |   |   | (59,987 | )      |   |   | 6,996  |   |   |   | 21,235 |   |
| Non-bank subsidiaries                                                                                          |   |   | 95      |   |   |   | (59    | )      |   |   | (86 | ) |
| Net income                                                                                                     |   | $      | 41,244  |   |   | $      | 25,490 |   |   | $ | 33,386 |   |

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Table of Contents

| STATEMENTS OF CASH FLOW                                                           |   |   |     |   |   |   |     |   |   |
|-----------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                              |   |   |     |   |   |   |     |   |   |
| Year Ended December 31  (Dollars in thousands)                          |   | 2010   |     |   | 2009   |   |     | 2008   |   |
| Operating activities:                                                             |   |   |     |   |   |   |     |   |   |
| Net income                                                                        |   | $      | 41,244   |   |   | $      | 25,490   |   |   | $ | 33,386 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |     |   |   |   |     |   |   |   |   |   |
| Equity distributed (undistributed) in excess of income of subsidiaries            |   |   | 59,892   |   |   |   | (6,937   | )      |   |   | (21,149 | ) |
| Depreciation of premises and equipment                                            |   |   | 541      |   |   |   | 428      |   |   |   | 377 |   |
| Realized and unrealized investment securities (gains) losses                      |   |   | (592     | )      |   |   | 426      |   |   |   | 1,053 |   |
| Change in trading account securities                                              |   |   | (13      | )      |   |   | (25      | )      |   |   | (100 | ) |
| Other                                                                             |   |   | 1,159    |   |   |   | 919      |   |   |   | 2,732 |   |
| Net change in operating activities                                                |   |   | 102,231  |   |   |   | 20,301   |   |   |   | 16,299 |   |
| Investing activities:                                                             |   |   |     |   |   |   |     |   |   |   |   |   |
| Proceeds from sales and maturities of investment securities                       |   |   | 3,613    |   |   |   | 46,294   |   |   |   | 2,879 |   |
| Purchases of investment securities                                                |   |   | -        |   |   |   | (48,513  | )      |   |   | - |   |
| Net change in premises and equipment                                              |   |   | 1,418    |   |   |   | (404     | )      |   |   | (405 | ) |
| Change in short-term investments with bank subsidiary                             |   |   | 34,397   |   |   |   | (30,327  | )      |   |   | (4,148 | ) |
| Capital contributions to subsidiaries                                             |   |   | -        |   |   |   | (80,000  | )      |   |   | - |   |
| Return of capital from subsidiaries                                               |   |   | -        |   |   |   | 636      |   |   |   | 5,950 |   |
| Net change in investing activities                                                |   |   | 39,428   |   |   |   | (112,314 | )      |   |   | 4,276 |   |
| Financing activities:                                                             |   |   |     |   |   |   |     |   |   |   |   |   |
| Net change in commercial paper                                                    |   |   | (872     | )      |   |   | (231     | )      |   |   | (6,131 | ) |
| Payments on subordinated notes                                                    |   |   | -        |   |   |   | -        |   |   |   | (10,310 | ) |
| Proceeds from issuance of long-term debt                                          |   |   | 345      |   |   |   | 153      |   |   |   | 10,000 |   |
| Payments on long-term debt                                                        |   |   | (10,268  | )      |   |   | (252     | )      |   |   | (252 | ) |
| Net proceeds from issuance of treasury stock                                      |   |   | 2,873    |   |   |   | 1,663    |   |   |   | 341 |   |
| Proceeds from issuance of preferred stock and common stock warrants               |   |   | -        |   |   |   | 111,000  |   |   |   | - |   |
| Redemption of preferred stock                                                     |   |   | (111,000 | )      |   |   | -        |   |   |   | - |   |
| Acquisition of treasury stock                                                     |   |   | (2,142   | )      |   |   | (1,299   | )      |   |   | - |   |
| Cash dividends paid on preferred stock                                            |   |   | (5,519   | )      |   |   | (4,502   | )      |   |   | - |   |
| Cash dividends paid on common stock                                               |   |   | (15,076  | )      |   |   | (14,520  | )      |   |   | (14,253 | ) |
| Net change in financing activities                                                |   |   | (141,659 | )      |   |   | 92,012   |   |   |   | (20,605 | ) |
| Net change in cash and cash equivalents                                           |   |   | -        |   |   |   | (1       | )      |   |   | (30 | ) |
| Cash and cash equivalents, beginning of year                                      |   |   | 1        |   |   |   | 2        |   |   |   | 32 |   |
| Cash and cash equivalents, end of year                                            |   | $      | 1        |   |   | $      | 1        |   |   | $ | 2 |   |

Item 9. 

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Table of Contents

Item 9A.

Item 9B.

Item 10. 

Item 11. 

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Table of Contents

Item 12. 

|                                                                                                                                                                                                  |                       |                 | Number of Securities     |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|----------------------|--------------------------|-----------|
|                                                                                                                                                                                                  |                       |                 | Remaining Available      |      |
|                                                                                                                                                                                                  |                       |                 | for Future Issuance      |      |
|                                                                                                                                                                                                  | Number of Securities to be | Weighted-average     | Under Equity             |      |
|                                                                                                                                                                                                  | Issued upon Exercise of    | Exercise Price of    | Compensation Plans       |      |
|                                                                                                                                                                                                  | Outstanding Options,       | Outstanding Options, | [excluding securities    |      |
|                                                                                                                                                                                                  | Warrants and Rights        | Warrants and Rights  | reflected in column (a)] |      |
| Equity compensation plans approved by shareholders                                                                                                                                                    |                       |                 |                     |      |
| 1992 stock option plan                                                                                                                                                                                | 7,508                      | $17.31               | -                        |      |
| 2001 stock option plan                                                                                                                                                                                | 55,000                     | 17.16                | 2,129,177                |      |
| 2011 stock option plan                                                                                                                                                                                | -                          | -                    | -                        | (3)       |
| 1997 employee stock purchase plan                                                                                                                                                                     | 28,745                     | 17.73                | 146,908                  |      |
| 1982 executive incentive plan                                                                                                                                                                         | -                          | -                    | 58,231                   | (1)(2)(4) |
| 1982 restricted stock award plan                                                                                                                                                                      | -                          | -                    | 132,240                  | (1)(5)    |
| 1998 performance compensation plan                                                                                                                                                                    | -                          | -                    | -                        | (6)       |
| Total plans approved by shareholders                                                                                                                                                                  | 91,253                     | $17.35               | 2,466,556                |      |
| Equity compensation plans                                                                                                                                                                             |                       |                 |                     |      |
| not approved by shareholders                                                                                                                                                                          | -                          | -                    | -                        |      |
| Total equity compensation plans                                                                                                                                                                       | 91,253                     | $17.35               | 2,466,556                |      |
| (1) Amount is to be awarded by grants administered by the Executive Compensation Committee of the 1st Source Board of Directors.                                                                      |                       |
| (2) Amount includes market value stock only. Book value shares used for annual awards may only be sold to 1st Source                                                                                  |                       |                 |
| (3) 1st Source Board of Directors approved the 2011 Stock Option Plan on January 20, 2011, including the future registration of 2,000,000 shares to be available for future issuance under this plan. |
| (4) Amount does not include additional 100,000 shares approved for future issuance by the 1st Source Board of Directors on February 3, 2011 but not yet registered.                                   |                       |
| (5) Amount does not include 100,000 shares approved for future issuance by the 1st Source Board of Directors on January 20, 2011 but not yet registered.                                              |                       |
| (6) Amount does not include 100,000 shares approved for future issuance by the 1st Source Board of Directors on January 20, 2011 but not yet registered.                                              |                       |

Item 13. 

Item 14. 

Item 15.

| (a)  | Financial Statements and Schedules:                                                                                                                                                           |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                               |   |
|      | The following Financial Statements and Supplementary Data are filed as part of this annual report:                                                                                            |
|      |                                                                                                                                                                                               |   |
|      |                                                                                                                                                                                               |  Reports of Independent Registered Public Accounting Firm |
|      |                                                                                                                                                                                               |   |
|      |                                                                                                                                                                                               |  Consolidated statements of financial condition — December 31, 2010 and 2009 |
|      |                                                                                                                                                                                               |   |
|      |                                                                                                                                                                                               |  Consolidated statements of income — Years ended December 31, 2010, 2009, and 2008 |
|      |                                                                                                                                                                                               |   |
|      |                                                                                                                                                                                               |  Consolidated statements of shareholders' equity — Years ended December 31, 2010, 2009, and 2008 |
|      |                                                                                                                                                                                               |   |
|      |                                                                                                                                                                                               |  Consolidated statements of cash flows — Years ended December 31, 2010, 2009, and 2008 |
|      |                                                                                                                                                                                               |   |
|      |                                                                                                                                                                                               |  Notes to consolidated financial statements — December 31, 2010, 2009, and 2008 |
|      |                                                                                                                                                                                               |   |
|      |                                                                                                                                                                                               |   |
|      | Financial statement schedules required by Article 9 of Regulation S-X are not required under the related instructions, or are inapplicable and, therefore, have been omitted.  |
|      |                                                                                                                                                                                               |   |
| (b)  | Exhibits (numbered in accordance with Item 601 of Regulation S-K):                                                                                                                       |

| 3(a)   | Articles of Incorporation of Registrant, as amended April 30, 1996, and filed as exhibit to Form 10-K, dated December 31, 1996, and incorporated herein by reference.         |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                          |
| 3(b)   | By-Laws of Registrant, as amended July 30, 2009, filed as exhibit to Form 8-K, dated July 30, 2009, and incorporated herein by reference.                                     |
|   |                                                                                                                                                                          |
| 3(c)   | Certificate of Designations for Series A Preferred Stock, dated January 23, 2009, filed as exhibit to Form 8-K, dated January 23, 2009, and incorporated herein by reference. |
|   |                                                                                                                                                                          |
| 4(a)   | Form of Common Stock Certificates of Registrant filed as exhibit to Registration Statement 2-40481 and incorporated herein by reference.                                 |

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| 4(b)     | 1st Source agrees to furnish to the Commission, upon request, a copy of each instrument defining the rights of holders of Senior and Subordinated debt of 1st Source.                                                                                                                                      |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                       |
| 4(c)     | Form of Certificate for Series A Preferred Stock, dated January 23, 2009, filed as exhibit to Form 8-K, dated January 23, 2009, and incorporated herein by reference.                                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                       |
| 4(d)     | Warrant for Purchase of Shares of Common Stock, dated January 23, 2009, filed as exhibit to Form 8-K, dated January 23, 2009, and incorporated herein by reference.                                                                                                                                        |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(a)(1) | Employment Agreement of Christopher J. Murphy III, dated January 1, 2008, filed as exhibit to Form 8-K, dated March 17, 2008, and incorporated herein by reference.                                                                                                                                   |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(a)(2) | Employment Agreement of Wellington D. Jones III, dated January 1, 2008, filed as exhibit to Form 8-K, dated March 17, 2008, and incorporated herein by reference.                                                                                                                                     |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(a)(3) | Employment Agreement of Larry E. Lentych, dated January 1, 2008, filed as exhibit to Form 8-K, dated March 17, 2008, and incorporated herein by reference.                                                                                                                                                 |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(a)(4) | Employment Agreement of John B. Griffith, dated January 1, 2008, filed as exhibit to Form 8-K, dated March 17, 2008, and incorporated herein by reference.                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(b)    | 1st Source Corporation Employee Stock Purchase Plan dated April 17, 1997, filed as exhibit to Form 10-K, dated December 31, 1997, and incorporated herein by reference.                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(c)    | 1st Source Corporation 1982 Executive Incentive Plan, amended February 3, 2011, filed as exhibit to Form 10-K, dated December 31, 2010, and incorporated herein by reference.                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(d)    | 1st Source Corporation 1982 Restricted Stock Award Plan, amended January 17, 2003, and filed as exhibit to Form 10-K, dated December 31, 2003, and incorporated herein by reference.                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(e)    | 1st Source Corporation 2001 Stock Option Plan, amended July 27, 2006, and filed as an exhibit to 1st Source Corporation Proxy Statement dated March 7, 2001, and incorporated herein by reference.                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(f)(1) | 1st Source Corporation 1992 Stock Option Plan, amended July 27, 2006, and dated April 23, 1992, as amended December 11, 1997, filed as exhibit to Form 10-K, dated December 31, 1997, and incorporated herein by reference.                                                                                |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(f)(2) | An amendment to 1st Source Corporation 1992 Stock Option Plan, dated July 18, 2000, and filed as exhibit to Form 10-K, dated December 31, 2000, and incorporated herein by reference.                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(g)    | 1st Source Corporation 1998 Performance Compensation Plan, amended January 20, 2011, filed as exhibit to Form 10-K, dated December 31, 2010, and incorporated herein by reference.                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(h)    | Contract with Fiserv Solutions, Inc. dated November 23, 2005, filed as exhibit to Form 10-K, dated, December 31, 2005, and incorporated herein by reference.                                                                                                                                               |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(i)    | Letter Agreement dated January 23, 2009 by and between 1st Source Corporation and the United States Department of the Treasury,  including the Securities Purchase Agreement – Standard Terms, filed as exhibit to Form 8-K, dated January 23, 2009, and incorporated herein by reference. |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(j)    | Form of CPP Compensation Limitation Agreement, dated January 23, 2009, filed as exhibit to Form 8-K, dated January 23, 2009, and incorporated herein by reference.                                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                       |
| 10(k)    | Letter Agreement dated December 29, 2010 by and between 1st Source Corporation and the United States Department of the Treasury, filed as exhibit to Form 8-K, dated December 29, 2010, and incorporated herein by reference.                                                                              |
|     |                                                                                                                                                                                                                                                                                                       |
| 10 (l)   | 1st Source Corporation 2011 Stock Option Plan, dated January 20, 2011, filed as exhibit to Form 10-K, dated December 31, 2010, and incorporated herein by reference..                                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                       |
| 21       | Subsidiaries of Registrant (unless otherwise indicated, each subsidiary does business under its own name):                                                                                                                                                                                                 |
|     | Name                                                                                                                                                                                                                                                                                                       | Jurisdiction |
|     | 1st Source Bank                                                                                                                                                                                                                                                                                            | Indiana |
|     | SFG Aircraft, Inc. * (formerly known as SFG Equipment Leasing, Inc.)                                                                                                                                                                                                                                       | Indiana |
|     | 1st Source Insurance, Inc. *                                                                                                                                                                                                                                                                               | Indiana |
|     | 1st Source Specialty Finance, Inc. *                                                                                                                                                                                                                                                                       | Indiana |
|     | FBT Capital Corporation (Inactive)                                                                                                                                                                                                                                                                         | Indiana |
|     | 1st Source Leasing, Inc.                                                                                                                                                                                                                                                                                   | Indiana |
|     | 1st Source Capital Corporation *                                                                                                                                                                                                                                                                           | Indiana |
|     | Trustcorp Mortgage Company (Inactive)                                                                                                                                                                                                                                                                      | Indiana |
|     | 1st Source Capital Trust IV                                                                                                                                                                                                                                                                                | Delaware |
|     | 1st Source Master Trust                                                                                                                                                                                                                                                                                    | Delaware |
|     | Michigan Transportation Finance Corporation *                                                                                                                                                                                                                                                              | Michigan |
|     | 1st Source Intermediate Holding, LLC                                                                                                                                                                                                                                                                       | Delaware |
|     | 1st Source Funding, LLC (Inactive)                                                                                                                                                                                                                                                                         | Delaware |
|     | 1st Source Corporation Investment Advisors, Inc. *                                                                                                                                                                                                                                                    | Indiana |
|     | SFG Commercial Aircraft Leasing, Inc. *                                                                                                                                                                                                                                                                    | Indiana |
|     | SFG Equipment Leasing Corporation I*                                                                                                                                                                                                                                                                       | Indiana |
|     | Washington and Michigan Insurance, Inc.*                                                                                                                                                                                                                                                                   | Arizona |
|     | *Wholly-owned subsidiaries of 1st Source Bank                                                                                                                                                                                                                                                              |   |
|     |                                                                                                                                                                                                                                                                                                       |
| 23       | Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.                                                                                                                                                                                                                           |
|     |                                                                                                                                                                                                                                                                                                       |
| 31.1     | Certification of Christopher J. Murphy III, Chief Executive Officer (Rule 13a-14(a)).                                                                                                                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                       |
| 31.2     | Certification of Larry E. Lentych, Chief Financial Officer (Rule 13a-14(a)).                                                                                                                                                                                                                               |

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Table of Contents

| 32.1   | Certification of Christopher J. Murphy III, Chief Executive Officer.                                                                                                                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                  |
| 32.2   | Certification of Larry E. Lentych, Chief Financial Officer.                                                                                                                                           |
|   |                                                                                                                                                                                                  |
| 99.1   | Certification for Years following First Fiscal Year of the Principal Executive Officer and Principal Financial Officer pursuant to Section 111(b) of the Emergency Economic Stabilization Act of 2008 |

| (c)  | Financial Statement Schedules — None. |
|-----------|--------------------------------------------------|

Signatures

| Signature                     | Title                                 | Date              |
|-------------------------------|---------------------------------------|-------------------|
|                          |                                  |              |
| /s/ CHRISTOPHER J. MURPHY III | Chairman of the Board,                | February 17, 2011 |
| Christopher J. Murphy III     | President and Chief Executive Officer |              |
|                          |                                  |              |
| /s/ WELLINGTON D. JONES III   | Executive Vice President              | February 17, 2011 |
| Wellington D. Jones III       | and Director                          |              |
|                          |                                  |              |
| /s/ LARRY E. LENTYCH          | Treasurer, Chief Financial Officer    | February 17, 2011 |
| Larry E. Lentych              | and Principal Accounting Officer      |              |
|                          |                                  |              |
| /s/ JOHN B. GRIFFITH          | Secretary                             | February 17, 2011 |
| John B. Griffith              | and General Counsel                   |              |
|                          |                                  |              |
| /s/ DANIEL B. FITZPATRICK     | Director                              | February 17, 2011 |
| Daniel B. Fitzpatrick         |                                  |              |
|                          |                                  |              |
| /s/ TERRY L. GERBER           | Director                              | February 17, 2011 |
| Terry L. Gerber               |                                  |              |
|                          |                                  |              |
| /s/ LAWRENCE E. HILER         | Director                              | February 17, 2011 |
| Lawrence E. Hiler             |                                  |              |
|                          |                                  |              |
| /s/ WILLIAM P. JOHNSON        | Director                              | February 17, 2011 |
| William P. Johnson            |                                  |              |
|                          |                                  |              |
| /s/ CRAIG A. KAPSON           | Director                              | February 17, 2011 |
| Craig A. Kapson               |                                  |              |
|                          |                                  |              |
| /s/ REX MARTIN                | Director                              | February 17, 2011 |
| Rex Martin                    |                                  |              |
|                          |                                  |              |
| /s/ DANE A. MILLER            | Director                              | February 17, 2011 |
| Dane A. Miller                |                                  |              |
|                          |                                  |              |
| /s/ TIMOTHY K. OZARK          | Director                              | February 17, 2011 |
| Timothy K. Ozark              |                                  |              |
|                          |                                  |              |
| /s/ JOHN T. PHAIR             | Director                              | February 17, 2011 |
| John T. Phair                 |                                  |              |
|                          |                                  |              |
| /s/ MARK D. SCHWABERO         | Director                              | February 17, 2011 |
| Mark D. Schwabero             |                                  |              |
|                          |                                  |              |

----