----

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| Indiana                                                             |   | 35-1068133                                          |
|---------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification      No.) |

| 100 North Michigan Street                     |   |            |
|-----------------------------------------------|--------|-----------------|
| South Bend, Indiana                           |   | 46601           |
| (Address      of principal executive offices) |   | (Zip      Code) |

| Title of Class                              | Name of Each Exchange on Which      Registered |
|---------------------------------------------|------------------------------------------------|
| Common      Stock — without par value | The      NASDAQ Stock Market LLC               |

No
 

   No
 

   No 
 

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

  o   No

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TABLE OF CONTENTS

| Part      I                    |                                                                                                                    |     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------|----------|
|                           |                                                                                                                    |     |
| Item      1.                   | Business                                                                                                                |  3  |
| Item      1A.                  | Risk Factors                                                                                                            |  7  |
| Item      1B.                  | Unresolved Staff Comments                                                                                               |  10 |
| Item      2.                   | Properties                                                                                                              |  10 |
| Item      3.                   | Legal Proceedings                                                                                                       |  10 |
| Item      4.                   | Submission of Matters to a Vote of Security      Holders                                                                |  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                        |  12 |
| Item      7A.                  | Quantitative and Qualitative Disclosures About Market      Risk                                                         |  26 |
| Item      8.                   | Financial Statements and Supplementary      Data                                                                        |  27 |
|                           | Reports of Independent Registered Public Accounting      Firm                                                           |  27 |
|                           | Consolidated Statements of Financial      Condition                                                                     |  29 |
|                           | Consolidated Statements of      Income                                                                                  |  30 |
|                           | Consolidated Statements of Shareholders’      Equity                                                              |  31 |
|                           | Consolidated Statements of Cash Flow                                                                                    |  32 |
|                           | Notes to Consolidated Financial    Statements                                                                           |  33 |
| Item      9.                   | Changes in and Disagreements with Accountants on      Accounting and Financial Disclosure                               |  55 |
| Item      9A.                  | Controls and Procedures                                                                                                 |  55 |
| Item      9B.                  | Other Information                                                                                                       |  56 |
|                           |                                                                                                                    |     |
|                           |                                                                                                                    |     |
| Part      III                  |                                                                                                                    |     |
|  Item      10.            | Directors, Executive Officers and Corporate      Governance                                                             |  56 |
| Item      11.                  | Executive Compensation                                                                                                  |  56 |
| Item      12.                  | Security Ownership of Certain Beneﬁcial Owners and      Management and Related Stockholder Matters               |  56 |
| Item      13.                  | Certain Relationships and Related Transactions, and      Director Independence                                          |  56 |
| Item      14.                  | Principal Accounting Fees and    Services                                                                               |  56 |
|                           |                                                                                                                    |     |
|                           |                                                                                                                    |     |
| Part      IV                   |                                                                                                                    |     |
|  Item      15.            | Exhibits and Financial Statement      Schedules                                                                         |  57 |
| Signatures                     |  58                                                                                                                |
| Exhibit 23                     |                                                                                                                    |
| Exhibit 31.1    |                                                                                                                    |
| Exhibit 31.2                   |                                                                                                                    |
| Exhibit 32.1                   |                                                                                                                    |
| Exhibit 32.2                   |                                                                                                                    |
| Exhibit 99.1                   |                                                                                                                    |
| Exhibit 99.2                   |                                                                                                                    |

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Table of Contents

Item1.  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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| ·   | We      may incur substantial costs identifying and evaluating potential      acquisitions and merger partners, or in evaluating new markets, hiring      experienced local managers, and opening new offices;  |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      estimates and judgments used to evaluate credit, operations, management,      and market risks relating to target institutions may not be      accurate;  |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | There      may be substantial lag-time between completing an acquisition or opening a      new office and generating sufficient assets and deposits to support costs      of the expansion;  |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      may not be able to finance an acquisition, or the financing we obtain may      have an adverse effect on our operating results or dilution of our      existing shareholders;  |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      attention of our management in negotiating a transaction and integrating      the operations and personnel of the combining businesses may be diverted      from our existing business;  |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Acquisitions      typically involve the payment of a premium over book and market values      and; therefore, some dilution of our tangible book value and net income      per common share may occur in connection with any future      transaction;  |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      may enter new markets where we lack local experience;  |
|--------------------|---------------------------------------------------------------------|

| ·   | We      may incur goodwill in connection with an acquisition, or the goodwill we      incur may become impaired, which results in adverse short-term effects on      our operating results; or  |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      may lose key employees and clients. |
|--------------------|---------------------------------------------|

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Item 1B.  Unresolved StaffComments.

Item 2.  Properties.

Item 3.  Legal Proceedings.

Item 4.  Submission of Matters to a Vote ofSecurity Holders.

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Table of Contents

Item 5.  Market for Registrant’s Common Equity, RelatedStockholder Matters and Issuer Purchases of Equity Securities.

|                                                                                           |   | 2009      Sales Price |   |   | Cash      Dividends |   |   | 2008      Sales Price |   |   | Cash      Dividends |   |
|------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|--------|-----------------------|--------|--------|---------------------|--------|
| Common      Stock Prices  (quarter      ended)                                       |   | High                  |   |   | Low                 |   |   | Paid                  |   |   | High                |   |   | Low |   |   | Paid |   |
| March      31                                                                                  |   | $                     | 23.92  |   |                | $      | 14.16  |                  |   | $      | .14                 |   |   | $ | 21.81 |   |   | $ | 15.13 |   |   | $ | .14 |   |
| June      30                                                                                   |   |                  | 21.98  |   |                |   | 15.36  |                  |   |   | .14                 |   |   |   | 22.62 |   |   |   | 16.10 |   |   |   | .14 |   |
| September      30                                                                              |   |                  | 17.94  |   |                |   | 14.52  |                  |   |   | .15                 |   |   |   | 30.00 |   |   |   | 14.54 |   |   |   | .14 |   |
| December      31                                                                               |   |                  | 16.60  |   |                |   | 13.84  |                  |   |   | .16                 |   |   |   | 25.56 |   |   |   | 12.61 |   |   |   | .16 |   |
| As      of December 31, 2009, there were 967 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, 2009                                                                                                                                                                      |        4,000     | $14.79              |        4,000               | 1,390,572                             |
| November      01 - 30, 2009                                                                                                                                                                     | 21,533                |  14.29         | 21,533                          | 1,369,039                             |
| December      01 - 31, 2009                                                                                                                                                                     |        4,900     |  14.39         |        4,900               | 1,364,139                             |
| *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 635,861      shares.                                                                                                                    |

Item 6.  Selected Financial Data.

| (Dollars      in thousands, except per share amounts)                                                                                                                           |   | 2009   |      |   | 2008   |   |      | 2007      (2) |   |   | 2006      |   |   | 2005   |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|---------------|--------|--------|-----------|--------|--------|--------|-----------|
| Interest income                                                                                                                                                                 |   | $      | 200,412   |   |   | $      | 235,308   |          |   | $      | 253,587   |   |   | $      | 208,994   |   |   | $ | 168,532 |   |
| Interest      expense                                                                                                                                                           |   |   | 72,200    |   |   |   | 103,148   |          |   |   | 134,677   |   |   |   | 102,561   |   |   |   | 70,104 |   |
| Net      interest income                                                                                                                                                        |   |   | 128,212   |   |   |   | 132,160   |          |   |   | 118,910   |   |   |   | 106,433   |   |   |   | 98,428 |   |
| Provision      for (recovery of) loan and lease losses                                                                                                                          |   |   | 31,101    |   |   |   | 16,648    |          |   |   | 7,534     |   |   |   | (2,736    | ) |   |   | (5,855 | ) |
| Net      interest income after provision for (recovery of)                                                                                                                      |   |   |      |   |   |   |      |          |   |   |      |   |   |   |      |   |   |   |   |   |
| loan      and lease losses                                                                                                                                                      |   |   | 97,111    |   |   |   | 115,512   |          |   |   | 111,376   |   |   |   | 109,169   |   |   |   | 104,283 |   |
| Noninterest      income                                                                                                                                                         |   |   | 85,530    |   |   |   | 84,003    |          |   |   | 70,619    |   |   |   | 76,585    |   |   |   | 68,533 |   |
| Noninterest      expense                                                                                                                                                        |   |   | 151,123   |   |   |   | 153,114   |          |   |   | 140,312   |   |   |   | 126,211   |   |   |   | 123,439 |   |
| Income      before income taxes                                                                                                                                                 |   |   | 31,518    |   |   |   | 46,401    |          |   |   | 41,683    |   |   |   | 59,543    |   |   |   | 49,377 |   |
| Income      taxes                                                                                                                                                               |   |   | 6,028     |   |   |   | 13,015    |          |   |   | 11,144    |   |   |   | 20,246    |   |   |   | 15,626 |   |
| Net      income                                                                                                                                                                 |   |   | 25,490    |   |   |   | 33,386    |          |   |   | 30,539    |   |   |   | 39,297    |   |   |   | 33,751 |   |
| Net      income available to common shareholders                                                                                                                                |   | $      | 19,074    |   |   | $      | 33,386    |          |   | $      | 30,539    |   |   | $      | 39,297    |   |   | $ | 33,751 |   |
| Assets      at year-end                                                                                                                                                         |   | $      | 4,542,100 |   |   | $      | 4,464,174 |          |   | $      | 4,447,104 |   |   | $      | 3,807,315 |   |   | $ | 3,511,277 |   |
| Long-term      debt and mandatorily redeemable                                                                                                                                  |   |   |      |   |   |   |      |          |   |   |      |   |   |   |      |   |   |   |   |   |
| securities      at year-end                                                                                                                                                     |   |   | 19,761    |   |   |   | 29,832    |          |   |   | 34,702    |   |   |   | 43,761    |   |   |   | 23,237 |   |
| Shareholders’      equity at year-end (3)                                                                                                                                 |   |   | 570,320   |   |   |   | 453,664   |          |   |   | 430,504   |   |   |   | 368,904   |   |   |   | 345,576 |   |
| Basic      net income per common share (1)                                                                                                                                      |   |   | 0.79      |   |   |   | 1.38      |          |   |   | 1.30      |   |   |   | 1.74      |   |   |   | 1.48 |   |
| Diluted      net income per common share (1)                                                                                                                                    |   |   | 0.79      |   |   |   | 1.37      |          |   |   | 1.28      |   |   |   | 1.72      |   |   |   | 1.46 |   |
| Cash      dividends per common share (1)                                                                                                                                        |   |   | .590      |   |   |   | .580      |          |   |   | .560      |   |   |   | .534      |   |   |   | .445 |   |
| Dividend      payout ratio                                                                                                                                                      |   |   | 74.68     | %      |   |   | 42.34     | %             |   |   | 43.75     | %      |   |   | 31.05     | % |   |   | 30.48 | % |
| Return      on average assets                                                                                                                                                   |   |   | 0.57      | %      |   |   | 0.76      | %             |   |   | 0.74      | %      |   |   | 1.11      | % |   |   | 1.00 | % |
| Return      on average common equity                                                                                                                                            |   |   | 4.07      | %      |   |   | 7.52      | %             |   |   | 7.47      | %      |   |   | 10.98     | % |   |   | 10.12 | % |
| Average      common equity to average assets                                                                                                                                    |   |   | 10.40     | %      |   |   | 10.09     | %             |   |   | 9.85      | %      |   |   | 10.07     | % |   |   | 9.89 | % |
|                                                                                                                                                                            |   |
| (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. |   |

Item 7.  Management’s Discussion andAnalysis of Financial Condition and Results of Operations.

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| ·   | 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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|                                                 |                                                               |    | 2009                                                                              |                                                                         |   |                                                                                                               |    | 2008                                                                                                  |                                                                         |   |                                                         |    | 2007                                                              |                                                                         |   |
|------------------------------------------------------|--------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------|------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|--------|--------------------------------------------------------------|---------|-------------------------------------------------------------------|------------------------------------------------------------------------------|--------|
|                                                 |                                                               |    | 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                                              |  $     629,229                       |    |  $     17,594                                       |             2.80 | %      |  $   491,061                                                                                   |    |  $     22,170                                                           |             4.51 | %      |  $    510,949                       |    |  $     25,136                       |             4.92 | %      |
| Tax-exempt                                           |         205,796            |    |           9,801                 |             4.76 |   |                 222,751            |    |               10,692            |             4.80 |   |        225,849            |    |         10,800            |             4.78 |   |
| Mortgages      held for sale                         |           74,173 |    |           3,907                 |             5.27 |   |                   33,925 |    |                 2,069 |             6.10 |   |          28,913 |    |           1,892 |             6.54 |   |
| Net      loans and leases                            |      3,154,820                            |    |       171,669                                       |             5.44 |   |              3,263,276                            |    |             202,539                       |             6.21 |   |     2,992,540                            |    |       214,725                       |             7.18 |   |
| Other      investments                               |         135,494            |    |           1,228                 |             0.91 |   |                   57,601 |    |                 1,425 |             2.47 |   |          94,478 |    |           4,657 |             4.93 |   |
| Total      earning assets                            |      4,199,512                            |    |       204,199                                       |             4.86 |   |              4,068,614                            |    |             238,895                       |             5.87 |   |     3,852,729                            |    |       257,210                       |             6.68 |   |
| Cash      and due from banks                         |           59,626 |    |                                                                              |                                                                         |   |                   83,270 |    |                                                                                                  |                                                                         |   |          81,714 |    |                                                              |                                                                         |   |
| Reserve      for loan and                            |                                                               |    |                                                                              |                                                                         |   |                                                                                                               |    |                                                                                                  |                                                                         |   |                                                         |    |                                                              |                                                                         |   |
| lease      losses                                    |         (85,095            | )  |                                                                              |                                                                         |   |                 (71,358            | )  |                                                                                                  |                                                                         |   |         (61,555      | )  |                                                              |                                                                         |   |
| Other      assets                                    |         331,809            |    |                                                                              |                                                                         |   |                 319,997            |    |                                                                                                  |                                                                         |   |        278,421            |    |                                                              |                                                                         |   |
| Total      assets                                    |  $  4,505,852                                       |    |                                                                              |                                                                         |   |  $ 4,400,523                                                                                             |    |                                                                                                  |                                                                         |   |  $      4,151,309                                       |    |                                                              |                                                                         |   |
| LIABILITIES AND SHAREHOLDERS’      EQUITY |                                                               |    |                                                                              |                                                                         |   |                                                                                                               |    |                                                                                                  |                                                                         |   |                                                         |    |                                                              |
| Interest      bearing deposits                       |  $  3,146,135                                       |    |  $     63,521                                       |             2.02 | %      |  $ 2,996,830                                                                                             |    |  $     86,903                                                           |             2.90 | %      |  $      2,918,756                                       |    |  $   115,113                                  |             3.94 | %      |
| Short-term      borrowings                           |         185,647            |    |           1,115                 |             0.60 |   |                 386,850            |    |                 7,626 |             1.97 |   |        271,377            |    |         10,935            |             4.03 |   |
| Subordinated      notes                              |           89,692 |    |           6,589                 |             7.35 |   |                   90,960 |    |                 6,714 |             7.38 |   |          82,414 |    |           6,051 |             7.34 |   |
| Long-term      debt and                              |                                                               |    |                                                                              |                                                                         |   |                                                                                                               |    |                                                                                                  |                                                                         |   |                                                         |    |                                                              |                                                                         |   |
| mandatorily      redeemable                          |                                                               |    |                                                                              |                                                                         |   |                                                                                                               |    |                                                                                                  |                                                                         |   |                                                         |    |                                                              |                                                                         |   |
| securities                                           |           20,448 |    |              975 |             4.77 |   |                   34,472 |    |                 1,905 |             5.53 |   |          42,265 |    |           2,578 |             6.10 |   |
| Total      interest bearing liabilities              |      3,441,922                            |    |         72,200                            |             2.10 |   |              3,509,112                            |    |             103,148                       |             2.94 |   |     3,314,812                            |    |       134,677                       |             4.06 |   |
| Noninterest      bearing deposits                    |         427,513            |    |                                                                              |                                                                         |   |                 377,440            |    |                                                                                                  |                                                                         |   |        351,050            |    |                                                              |                                                                         |   |
| Other      liabilities                               |           69,953 |    |                                                                              |                                                                         |   |                   69,823 |    |                                                                                                  |                                                                         |   |          76,472 |    |                                                              |                                                                         |   |
| Shareholders'      equity                            |         566,464            |    |                                                                              |                                                                         |   |                 444,148            |    |                                                                                                  |                                                                         |   |        408,975            |    |                                                              |                                                                         |   |
| Total      liabilities and                           |                                                               |    |                                                                              |                                                                         |   |                                                                                                               |    |                                                                                                  |                                                                         |   |                                                         |    |                                                              |                                                                         |   |
| shareholders’      equity                      |  $  4,505,852                                       |    |                                                                              |                                                                         |   |  $ 4,400,523                                                                                             |    |                                                                                                  |                                                                         |   |  $      4,151,309                                       |    |                                                              |                                                                         |   |
| Net      interest income                             |                                                               |    |  $   131,999                                                  |                                                                         |   |                                                                                                               |    |  $   135,747                                                                      |                                                                         |   |                                                         |    |  $   122,533                                  |                                                                         |   |
| Net      interest margin on a tax                    |                                                               |    |                                                                              |                                                                         |   |                                                                                                               |    |                                                                                                  |                                                                         |   |                                                         |    |                                                              |                                                                         |   |
| equivalent      basis                                |                                                               |    |                                                                              |             3.14 | %      |                                                                                                               |    |                                                                                                  |             3.34 | %      |                                                         |    |                                                              |             3.18 | %      |

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|                                                      |   | Increase      (Decrease) due to |   |   |   |   |
|-----------------------------------------------------------|--------|---------------------------------|--------|--------|--------|--------|
| (Dollars      in thousands)                               |   | Volume                          |   |   | Rate   |   |   | Net |   |
| 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 | ) |
| 2008      compared to 2007                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Interest      earned on:                                  |   |                            |   |   |   |   |   |   |   |   |   |   |
| Investment      securities:                               |   |                            |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                   |   | $                               | (927   | )      |   | $      | (2,039 | ) |   | $ | (2,966 | ) |
| Tax-exempt                                                |   |                            | (153   | )      |   |   | 45 |   |   |   | (108 | ) |
| Mortgages      held for sale                              |   |                            | 290    |   |   |   | (113 | ) |   |   | 177 |   |
| Net      loans and leases                                 |   |                            | 24,816 |   |   |   | (37,002 | ) |   |   | (12,186 | ) |
| Other      investments                                    |   |                            | (1,417 | )      |   |   | (1,815 | ) |   |   | (3,232 | ) |
| Total      earning assets                                 |   | $                               | 22,609 |   |   | $      | (40,924 | ) |   | $ | (18,315 | ) |
| Interest      paid on:                                    |   |                            |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing deposits                            |   | $                               | 3,045  |   |   | $      | (31,255 | ) |   | $ | (28,210 | ) |
| Short-term      borrowings                                |   |                            | 16,581 |   |   |   | (19,890 | ) |   |   | (3,309 | ) |
| Subordinated      notes                                   |   |                            | 630    |   |   |   | 33 |   |   |   | 663 |   |
| Long-term      debt and mandatorily redeemable securities |   |                            | (447   | )      |   |   | (226 | ) |   |   | (673 | ) |
| Total      interest bearing liabilities                   |   | $                               | 19,809 |   |   | $      | (51,338 | ) |   | $ | (31,529 | ) |
| Net      interest income                                  |   | $                               | 2,800  |   |   | $      | 10,414 |   |   | $ | 13,214 |   |

| (Dollars      in thousands)                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Noninterest      income:                                       |   |   |   |   |   |   |   |   |   |
| Trust      fees                                                |   | $      | 15,036 |   |   | $      | 18,599 |   |   | $ | 15,567 |   |
| Service      charges on deposit accounts                       |   |   | 20,645 |   |   |   | 22,035 |   |   |   | 20,470 |   |
| Mortgage      banking income                                   |   |   | 8,251  |   |   |   | 2,994  |   |   |   | 2,868 |   |
| Insurance      commissions                                     |   |   | 4,930  |   |   |   | 5,363  |   |   |   | 4,666 |   |
| Equipment      rental income                                   |   |   | 25,757 |   |   |   | 24,224 |   |   |   | 21,312 |   |
| Other      income                                              |   |   | 9,224  |   |   |   | 9,293  |   |   |   | 8,864 |   |
| Gain      on sale of certain Investment Advisor assets         |   |   | -      |   |   |   | 11,492 |   |   |   | - |   |
| Investment      securities and other investment gains (losses) |   |   | 1,687  |   |   |   | (9,997 | )      |   |   | (3,128 | ) |
| Total      noninterest income                                  |   | $      | 85,530 |   |   | $      | 84,003 |   |   | $ | 70,619 |   |

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| (Dollars      in thousands)                             |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Noninterest      expense:                               |   |   |    |   |   |   |    |   |   |
| Salaries      and employee benefits                     |   | $      | 72,483  |   |   | $      | 76,965  |   |   | $ | 73,944 |   |
| Net      occupancy expense                              |   |   | 9,185   |   |   |   | 9,698   |   |   |   | 9,030 |   |
| Furniture      and equipment expense                    |   |   | 13,980  |   |   |   | 15,095  |   |   |   | 15,145 |   |
| Depreciation      — leased equipment              |   |   | 20,515  |   |   |   | 19,450  |   |   |   | 17,085 |   |
| Professional      fees                                  |   |   | 4,399   |   |   |   | 8,446   |   |   |   | 4,575 |   |
| Supplies      and communications                        |   |   | 5,916   |   |   |   | 6,782   |   |   |   | 5,987 |   |
| Business      development and marketing expense         |   |   | 3,488   |   |   |   | 3,749   |   |   |   | 4,788 |   |
| Loan      and lease collection and repossession expense |   |   | 4,283   |   |   |   | 1,162   |   |   |   | 1,123 |   |
| FDIC      and other insurance                           |   |   | 8,362   |   |   |   | 2,601   |   |   |   | 1,190 |   |
| Intangible      asset amortization                      |   |   | 1,352   |   |   |   | 1,393   |   |   |   | 874 |   |
| Other      expense                                      |   |   | 7,160   |   |   |   | 7,773   |   |   |   | 6,571 |   |
| Total      noninterest expense                          |   | $      | 151,123 |   |   | $      | 153,114 |   |   | $ | 140,312 |   |

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| (Dollars      in thousands)                                                                                    |   | 2009   |      |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |      |
|----------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Commercial      and agricultural loans                                                                         |   | $      | 546,222   |   |   | $      | 643,440   |   |   | $      | 593,806   |   |   | $      | 478,310   |   |   | $ | 453,197 |   |
| Auto,      light truck and environmental equipment                                                             |   |   | 349,741   |   |   |   | 353,838   |   |   |   | 305,238   |   |   |   | 317,604   |   |   |   | 310,786 |   |
| Medium      and heavy duty truck                                                                               |   |   | 204,545   |   |   |   | 243,375   |   |   |   | 300,469   |   |   |   | 341,744   |   |   |   | 302,137 |   |
| Aircraft      financing                                                                                        |   |   | 617,384   |   |   |   | 632,121   |   |   |   | 587,022   |   |   |   | 498,914   |   |   |   | 459,645 |   |
| Construction      equipment financing                                                                          |   |   | 313,300   |   |   |   | 375,983   |   |   |   | 377,785   |   |   |   | 305,976   |   |   |   | 224,230 |   |
| Loans      secured by real estate                                                                              |   |   | 952,223   |   |   |   | 918,749   |   |   |   | 881,646   |   |   |   | 632,283   |   |   |   | 601,077 |   |
| Consumer      loans                                                                                            |   |   | 109,735   |   |   |   | 130,706   |   |   |   | 145,475   |   |   |   | 127,706   |   |   |   | 112,359 |   |
| Total      loans and leases                                                                                    |   | $      | 3,093,150 |   |   | $      | 3,298,212 |   |   | $      | 3,191,441 |   |   | $      | 2,702,537 |   |   | $ | 2,463,431 |   |
|                                                                                                           |   |
| At      December 31, 2009, 11.6% 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             |   | $             | 320,731 |   |           | $      | 203,362   |              |   | $      | 22,129 |   |   | $ | 546,222 |   |
| Auto,      light truck and environmental equipment |   |          | 182,983 |   |           |   | 163,220   |              |   |   | 3,538  |   |   |   | 349,741 |   |
| Medium      and heavy duty truck                   |   |          | 88,320  |   |           |   | 114,946   |              |   |   | 1,279  |   |   |   | 204,545 |   |
| Aircraft      financing                            |   |          | 205,095 |   |           |   | 353,945   |              |   |   | 58,344 |   |   |   | 617,384 |   |
| Construction      equipment financing              |   |          | 129,965 |   |           |   | 182,006   |              |   |   | 1,329  |   |   |   | 313,300 |   |
| Total                                              |   | $             | 927,094 |   |           | $      | 1,017,479 |              |   | $      | 86,619 |   |   | $ | 2,031,192 |   |

| Rate      Sensitivity  (Dollars in      thousands) |   | Fixed      Rate |    |   | Variable      Rate |   |    | Total  |   |
|--------------------------------------------------------------|--------|-----------------|---------|--------|--------------------|--------|---------|--------|--------|
| 1 –      5 Years                                       |   | $               | 613,928 |   |               | $      | 403,551 |   |   | $ | 1,017,479 |   |
| Over      5 Years                                            |   |            | 7,031   |   |               |   | 79,588  |   |   |   | 86,619 |   |
| Total                                                        |   | $               | 620,959 |   |               | $      | 483,139 |   |   | $ | 1,104,098 |   |

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| (Dollars      in thousands)                                          |   | 2009   |      |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |      |
|----------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Amounts      of loans and leases outstanding               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
| at      end of period                                                |   | $      | 3,093,150 |   |   | $      | 3,298,212 |   |   | $      | 3,191,441 |   |   | $      | 2,702,537 |   |   | $ | 2,463,431 |   |
| Average      amount of net loans and leases outstanding              |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| during      period                                                   |   | $      | 3,154,820 |   |   | $      | 3,263,276 |   |   | $      | 2,992,540 |   |   | $      | 2,566,217 |   |   | $ | 2,348,690 |   |
| Balance      of reserve for loan and lease losses                    |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| at      beginning of period                                          |   | $      | 79,776    |   |   | $      | 66,602    |   |   | $      | 58,802    |   |   | $      | 58,697    |   |   | $ | 63,672 |   |
| Charge-offs:                                                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Commercial      and agricultural loans                               |   |   | 8,809     |   |   |   | 1,580     |   |   |   | 1,841     |   |   |   | 1,038     |   |   |   | 1,478 |   |
| Auto,      light truck and environmental equipment                   |   |   | 2,750     |   |   |   | 234       |   |   |   | 1,770     |   |   |   | 340       |   |   |   | 630 |   |
| Medium      and heavy duty truck                                     |   |   | 2,071     |   |   |   | 924       |   |   |   | 569       |   |   |   | -         |   |   |   | 15 |   |
| Aircraft      financing                                              |   |   | 7,812     |   |   |   | 462       |   |   |   | 378       |   |   |   | 1,126     |   |   |   | 2,424 |   |
| Construction      equipment financing                                |   |   | 1,476     |   |   |   | 1,695     |   |   |   | 799       |   |   |   | 118       |   |   |   | - |   |
| Loans      secured by real estate                                    |   |   | 2,753     |   |   |   | 879       |   |   |   | 356       |   |   |   | 129       |   |   |   | 167 |   |
| Consumer      loans                                                  |   |   | 2,544     |   |   |   | 2,619     |   |   |   | 1,654     |   |   |   | 1,203     |   |   |   | 858 |   |
| Total      charge-offs                                               |   |   | 28,215    |   |   |   | 8,393     |   |   |   | 7,367     |   |   |   | 3,954     |   |   |   | 5,572 |   |
| Recoveries:                                                          |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Commercial      and agricultural loans                               |   |   | 3,193     |   |   |   | 1,177     |   |   |   | 2,356     |   |   |   | 1,594     |   |   |   | 1,308 |   |
| Auto,      light truck and environmental equipment                   |   |   | 310       |   |   |   | 330       |   |   |   | 446       |   |   |   | 430       |   |   |   | 1,140 |   |
| Medium      and heavy duty truck                                     |   |   | 5         |   |   |   | 248       |   |   |   | 64        |   |   |   | 59        |   |   |   | 174 |   |
| Aircraft      financing                                              |   |   | 983       |   |   |   | 2,230     |   |   |   | 1,779     |   |   |   | 3,612     |   |   |   | 2,255 |   |
| Construction      equipment financing                                |   |   | 444       |   |   |   | 139       |   |   |   | 19        |   |   |   | 753       |   |   |   | 1,065 |   |
| Loans      secured by real estate                                    |   |   | 36        |   |   |   | 171       |   |   |   | 169       |   |   |   | 31        |   |   |   | 89 |   |
| Consumer      loans                                                  |   |   | 603       |   |   |   | 624       |   |   |   | 421       |   |   |   | 316       |   |   |   | 421 |   |
| Total      recoveries                                                |   |   | 5,574     |   |   |   | 4,919     |   |   |   | 5,254     |   |   |   | 6,795     |   |   |   | 6,452 |   |
| Net      charge-offs (recoveries)                                    |   |   | 22,641    |   |   |   | 3,474     |   |   |   | 2,113     |   |   |   | (2,841    | ) |   |   | (880 | ) |
| Provision      for (recovery of provision for) loan and lease losses |   |   | 31,101    |   |   |   | 16,648    |   |   |   | 7,534     |   |   |   | (2,736    | ) |   |   | (5,855 | ) |
| Reserves      acquired in acquisitions                               |   |   | -         |   |   |   | -         |   |   |   | 2,379     |   |   |   | -         |   |   |   | - |   |
| Balance      at end of period                                        |   | $      | 88,236    |   |   | $      | 79,776    |   |   | $      | 66,602    |   |   | $      | 58,802    |   |   | $ | 58,697 |   |
| Ratio      of net charge-offs (recoveries) to average net            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| loans      and leases outstanding                                    |   |   | 0.72      | %      |   |   | 0.11      | %      |   |   | 0.07      | %      |   |   | (0.11     | )% |   |   | (0.04 | )% |
| Ratio      of reserve for loan and lease losses to net loans         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| and      leases outstanding end of period                            |   |   | 2.85      | %      |   |   | 2.42      | %      |   |   | 2.09      | %      |   |   | 2.18      | % |   |   | 2.38 | % |
| Coverage      ratio of reserve for loan and lease losses to          |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| non-performing      loans and leases                                 |   |   | 104.84    | %      |   |   | 212.30    | %      |   |   | 592.49    | %      |   |   | 374.75    | % |   |   | 349.45 | % |

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Table of Contents

|                                                                               | 2009                                |   | 2008                          |   | 2007                            |   | 2006                            |   | 2005                      |   |
|------------------------------------------------------------------------------------|-------------------------------------|--------|-------------------------------|--------|---------------------------------|--------|---------------------------------|--------|---------------------------|--------|
| Commercial      and agricultural loans                                             |           0.95% |   |    0.06%       |   |          (0.09)% |   |         (0.12)%       |   |         0.04%   |   |
| Auto,      light truck and environmental equipment                                 | 0.73                                |   | (0.03)                        |   | 0.40                            |   | (0.03)                          |   | (0.17)                    |   |
| Medium      and heavy duty truck                                                   | 0.93                                |   | 0.25                          |   | 0.16                            |   | (0.02)                          |   | (0.06)                    |   |
| Aircraft      financing                                                            | 1.09                                |   | (0.30)                        |   | (0.26)                          |   | (0.54)                          |   | 0.04                      |   |
| Construction      equipment financing                                              | 0.30                                |   | 0.41                          |   | 0.22                            |   | (0.24)                          |   | (0.51)                    |   |
| Loans      secured by real estate                                                  | 0.30                                |   | 0.08                          |   | 0.02                            |   | 0.02                            |   | 0.01                      |   |
| Consumer      loans                                                                | 1.63                                |   | 1.44                          |   | 0.88                            |   | 0.74                            |   | 0.41                      |   |
| Total      net charge-offs (recoveries) to average portfolio loans and      leases |      0.72% |   |     0.11% |   |          0.07%   |   |          (0.11)% |   |         (0.04)% |   |

|                                                |   | 2009    |   |   | 2008            |   |   | 2007    |   |   | 2006            |   |   | 2005    |   |
|-----------------------------------------------------|--------|---------|--------|--------|-----------------|--------|--------|---------|--------|--------|-----------------|--------|--------|---------|--------|
|                                                |   |    |   |   | 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 |   |   | Loan      and |   |   | Reserve |   |   | Loans      and |   |
| (Dollars      in thousands)                         |   | Amount  |   |   | Leases          |   |   | Amount  |   |   | Leases          |   |   | Amount  |   |   | Leases |   |   | Amount |   |   | Leases |   |   | Amount |   |   | Leases |   |
| Commercial      and agricultural loans              |   | $       | 23,852 |   |            |   | 17.66  | %       |   | $      | 23,025          |   |   |    | 19.51  | % |   | $ | 17,393 |   |   |   | 18.61 | % |   | $ | 14,547 |   |   |   | 17.70 | % |   | $ | 15,472 |   |   |   | 18.40 | % |
| Auto,      light truck, and environmental equipment |   |    | 10,334 |   |            |   | 11.31  |    |   |   | 9,852           |   |   |    | 10.73  |   |   |   | 7,242 |   |   |   | 9.57 |   |   |   | 7,022 |   |   |   | 11.75 |   |   |   | 6,877 |   |   |   | 12.62 |   |
| Medium      and heavy duty truck                    |   |    | 6,095  |   |            |   | 6.61   |    |   |   | 8,915           |   |   |    | 7.38   |   |   |   | 8,775 |   |   |   | 9.41 |   |   |   | 6,337 |   |   |   | 12.65 |   |   |   | 6,131 |   |   |   | 12.26 |   |
| Aircraft      financing                             |   |    | 24,594 |   |            |   | 19.96  |    |   |   | 19,163          |   |   |    | 19.17  |   |   |   | 17,761 |   |   |   | 18.39 |   |   |   | 18,621 |   |   |   | 18.46 |   |   |   | 19,583 |   |   |   | 18.66 |   |
| Construction      equipment financing               |   |    | 8,839  |   |            |   | 10.13  |    |   |   | 10,672          |   |   |    | 11.40  |   |   |   | 6,171 |   |   |   | 11.84 |   |   |   | 5,030 |   |   |   | 11.32 |   |   |   | 4,235 |   |   |   | 9.10 |   |
| Loans      secured by real estate                   |   |    | 11,162 |   |            |   | 30.78  |    |   |   | 4,602           |   |   |    | 27.85  |   |   |   | 6,320 |   |   |   | 27.62 |   |   |   | 4,672 |   |   |   | 23.40 |   |   |   | 4,058 |   |   |   | 24.40 |   |
| Consumer      loans                                 |   |    | 3,360  |   |            |   | 3.55   |    |   |   | 3,547           |   |   |    | 3.96   |   |   |   | 2,940 |   |   |   | 4.56 |   |   |   | 2,573 |   |   |   | 4.72 |   |   |   | 2,341 |   |   |   | 4.56 |   |
| Total                                               |   | $       | 88,236 |   |            |   | 100.00 | %       |   | $      | 79,776          |   |   |    | 100.00 | % |   | $ | 66,602 |   |   |   | 100.00 | % |   | $ | 58,802 |   |   |   | 100.00 | % |   | $ | 58,697 |   |   |   | 100.00 | % |

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| Nonperforming      assets at December 31 (Dollars in      thousands) |   | 2009   |    |   | 2008   |   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Loans      past due over 90 days                                     |   | $      | 628     |   |   | $      | 1,022  |   |   | $      | 1,105  |   |   | $      | 116    |   |   | $ | 245 |   |
| Nonaccrual      loans and leases and restructured loans:             |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      and agricultural loans                               |   |   | 7,953   |   |   |   | 5,399  |   |   |   | 1,597  |   |   |   | 1,768  |   |   |   | 3,701 |   |
| Auto,      light truck and environmental equipment                   |   |   | 9,200   |   |   |   | 709    |   |   |   | 507    |   |   |   | 481    |   |   |   | 812 |   |
| Medium      and heavy duty truck                                     |   |   | 11,624  |   |   |   | 7,801  |   |   |   | 277    |   |   |   | 1,755  |   |   |   | 17 |   |
| Aircraft      financing                                              |   |   | 6,024   |   |   |   | 9,975  |   |   |   | 1,846  |   |   |   | 8,219  |   |   |   | 7,641 |   |
| Construction      equipment financing                                |   |   | 7,218   |   |   |   | 1,934  |   |   |   | 1,196  |   |   |   | 853    |   |   |   | 2,513 |   |
| Loans      secured by real estate                                    |   |   | 41,387  |   |   |   | 9,147  |   |   |   | 3,581  |   |   |   | 2,214  |   |   |   | 1,475 |   |
| Consumer      loans                                                  |   |   | 131     |   |   |   | 1,590  |   |   |   | 1,132  |   |   |   | 285    |   |   |   | 393 |   |
| Total      nonaccrual loans and leases and restructured loans        |   |   | 83,537  |   |   |   | 36,555 |   |   |   | 10,136 |   |   |   | 15,575 |   |   |   | 16,552 |   |
| Total      nonperforming loans and leases                            |   |   | 84,165  |   |   |   | 37,577 |   |   |   | 11,241 |   |   |   | 15,691 |   |   |   | 16,797 |   |
| Other      real estate                                               |   |   | 4,039   |   |   |   | 1,381  |   |   |   | 783    |   |   |   | 800    |   |   |   | 960 |   |
| Former      bank premises held for sale                              |   |   | 2,490   |   |   |   | 3,356  |   |   |   | 4,038  |   |   |   | -      |   |   |   | - |   |
| Repossessions:                                                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      and agricultural loans                               |   |   | 164     |   |   |   | 53     |   |   |   | 45     |   |   |   | 2      |   |   |   | - |   |
| Auto,      light truck and environmental equipment                   |   |   | 336     |   |   |   | 226    |   |   |   | 183    |   |   |   | 178    |   |   |   | 128 |   |
| Medium      and heavy duty truck                                     |   |   | -       |   |   |   | 1,248  |   |   |   | 54     |   |   |   | -      |   |   |   | - |   |
| Aircraft      financing                                              |   |   | 9,391   |   |   |   | 16     |   |   |   | 1,850  |   |   |   | 300    |   |   |   | 4,073 |   |
| Construction      equipment financing                                |   |   | 238     |   |   |   | 67     |   |   |   | 92     |   |   |   | 400    |   |   |   | - |   |
| Consumer      loans                                                  |   |   | 36      |   |   |   | 59     |   |   |   | 67     |   |   |   | 95     |   |   |   | 83 |   |
| Total      repossessions                                             |   |   | 10,165  |   |   |   | 1,669  |   |   |   | 2,291  |   |   |   | 975    |   |   |   | 4,284 |   |
| Operating      leases                                                |   |   | 154     |   |   |   | 185    |   |   |   | 126    |   |   |   | 201    |   |   |   | - |   |
| Total      nonperforming assets                                      |   | $      | 101,013 |   |   | $      | 44,168 |   |   | $      | 18,479 |   |   | $      | 17,667 |   |   | $ | 22,041 |   |
| Nonperforming      loans and leases to loans and leases,             |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net      of unearned discount                                        |   |   | 2.72    | %      |   |   | 1.14   | %      |   |   | 0.35   | %      |   |   | 0.58   | % |   |   | 0.68 | % |
| Nonperforming      assets to loans and leases and operating leases,  |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net      of unearned discount                                        |   |   | 3.15    | %      |   |   | 1.30   | %      |   |   | 0.56   | %      |   |   | 0.64   | % |   |   | 0.87 | % |

| (Dollars      in thousands)                            |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|--------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| U.S.      Treasury and Federal agencies securities     |   | $      | 390,189 |   |   | $      | 293,461 |   |   | $ | 284,214 |   |
| U.S.      States and political subdivisions securities |   |   | 188,706 |   |   |   | 198,640 |   |   |   | 258,260 |   |
| Mortgage-backed      securities - Federal agencies     |   |   | 286,415 |   |   |   | 207,954 |   |   |   | 199,382 |   |
| Corporate      debt securities                         |   |   | 26,166  |   |   |   | 10,494  |   |   |   | 6,631 |   |
| Foreign      government securities                     |   |   | 675     |   |   |   | 435     |   |   |   | 665 |   |
| Marketable      equity securities                      |   |   | 1,288   |   |   |   | 4,396   |   |   |   | 26,770 |   |
| Total      investment securities available-for-sale    |   | $      | 893,439 |   |   | $      | 715,380 |   |   | $ | 775,922 |   |

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| (Dollars      in thousands)                                  |   | Amount |    |   | Yield  |   |
|--------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| U.S.      Treasury and Federal agencies securities           |   |   |    |   |   |   |
| Under      1 year                                            |   | $      | 20,004  |   |   |   | 0.92 | % |
| 1 –      5 years                                       |   |   | 228,239 |   |   |   | 2.60 |   |
| 5 –      10 years                                      |   |   | 141,946 |   |   |   | 3.45 |   |
| Over      10 years                                           |   |   | -       |   |   |   | - |   |
| Total      U.S. Treasury and Federal agencies securities     |   |   | 390,189 |   |   |   | 2.83 |   |
| U.S.      States and political subdivisions securities       |   |   |    |   |   |   |   |   |
| Under      1 year                                            |   |   | 35,466  |   |   |   | 4.49 |   |
| 1 –      5 years                                       |   |   | 78,590  |   |   |   | 5.48 |   |
| 5 –      10 years                                      |   |   | 58,817  |   |   |   | 5.64 |   |
| Over      10 years                                           |   |   | 15,833  |   |   |   | 1.26 |   |
| Total      U.S. States and political subdivisions securities |   |   | 188,706 |   |   |   | 4.99 |   |
| Corporate      debt securities                               |   |   |    |   |   |   |   |   |
| Under      1 year                                            |   |   | 10,996  |   |   |   | 1.28 |   |
| 1 –      5 years                                       |   |   | 15,170  |   |   |   | 1.82 |   |
| 5 –      10 years                                      |   |   | -       |   |   |   | - |   |
| Over      10 years                                           |   |   | -       |   |   |   | - |   |
| Total      Corporate debt securities                         |   |   | 26,166  |   |   |   | 1.59 |   |
| Foreign      government securities                           |   |   |    |   |   |   |   |   |
| Under      1 year                                            |   |   | 100     |   |   |   | 4.05 |   |
| 1 –      5 years                                       |   |   | 575     |   |   |   | 3.77 |   |
| 5 –      10 years                                      |   |   | -       |   |   |   | - |   |
| Over      10 years                                           |   |   | -       |   |   |   | - |   |
| Total      Foreign government securities                     |   |   | 675     |   |   |   | 3.81 |   |
| Mortgage-backed      securities - Federal agencies           |   |   | 286,415 |   |   |   | 3.97 |   |
| Marketable      equity securities                            |   |   | 1,288   |   |   |   | 9.45 |   |
| Total      investment securities available-for-sale          |   | $      | 893,439 |   |   |   | 3.62 | % |

|                                     |   | 2009   |      |   | 2008   |   |   | 2007   |   |
|------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|
| (Dollars      in thousands)              |   | Amount |      |   | Rate   |   |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
| Noninterest      bearing demand deposits |   | $      | 427,513   |   |   |   | -      | %      |   | $ | 377,440 |   |   |   | - | % |   | $ | 351,050 |   |   |   | - | % |
| Interest      bearing demand deposits    |   |   | 1,209,800 |   |   |   | 0.62   |   |   |   | 1,137,491 |   |   |   | 1.82 |   |   |   | 988,308 |   |   |   | 3.10 |   |
| Savings      deposits                    |   |   | 325,801   |   |   |   | 0.29   |   |   |   | 285,538 |   |   |   | 0.63 |   |   |   | 250,927 |   |   |   | 1.21 |   |
| Other      time deposits                 |   |   | 1,610,534 |   |   |   | 3.42   |   |   |   | 1,573,801 |   |   |   | 4.09 |   |   |   | 1,679,521 |   |   |   | 4.85 |   |
| Total      deposits                      |   | $      | 3,573,648 |   |   |   |   |   |   | $ | 3,374,270 |   |   |   |   |   |   | $ | 3,269,806 |   |   |   |   |   |

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|                                                           |   | Federal      Funds |    |   |       |   |   |       |   |   |       |   |
|----------------------------------------------------------------|--------|--------------------|---------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                                           |   | Purchased      and |    |   |       |   |   |       |   |   |       |   |
|                                                           |   | Security           |    |   |       |   |   | Other      |   |   |       |   |
|                                                           |   | Repurchase         |    |   | Commercial |   |   | Short-Term |   |   | Total      |   |
| (Dollars      in thousands)                                    |   | Agreements         |    |   | Paper      |   |   | Borrowings |   |   | Borrowings |   |
| 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 | % |
| 2007                                                           |   |               |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
| Balance      at December 31, 2007                              |   | $                  | 303,429 |   |       | $      | 10,783 |       |   | $      | 23,620     |   |   | $ | 337,832 |   |
| Maximum      amount outstanding at any month-end               |   |               | 327,623 |   |       |   | 15,478 |       |   |   | 42,784     |   |   |   | 385,885 |   |
| Average      amount outstanding                                |   |               | 246,792 |   |       |   | 12,598 |       |   |   | 11,987     |   |   |   | 271,377 |   |
| Weighted      average interest rate during the year            |   |               | 3.92    | %      |       |   | 4.84   | %          |   |   | 5.49       | %      |   |   | 4.03 | % |
| Weighted      average interest rate for outstanding amounts at |   |               |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
| December      31, 2007                                         |   |               | 2.98    | %      |       |   | 4.04   | %          |   |   | 2.60       | %      |   |   | 2.99 | % |

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|                                  |   |   |   |      |                  |   |      |                   |   |   |                   |    |   |              |    |    | Indeterminate |   |   |   |   |
|---------------------------------------|--------|--------|--------|-----------|-----------------------|--------|-----------|------------------------|--------|--------|------------------------|---------|--------|-------------------|---------|---------|---------------|--------|--------|--------|--------|
| (Dollars      in thousands)           |   | Note   |   |      | 0 –      1 Year |   |      | 1 –      3 Years |   |   | 3 –      5 Years |    |   | Over      5 Years |    |    | maturity      |   |   | Total  |   |
| Deposits      without stated maturity |   |   | -      |      |                  | $      | 2,167,087 |                   |   | $      | -                      |    |   | $                 | -       |    |          | $      | -      |   |   | $ | - |   |   | $ | 2,167,087 |   |
| Certificates      of deposit          |   |   | -      |      |                  |   | 1,006,850 |                   |   |   | 362,101                |    |   |              | 102,175 |    |          |   | 14,251 |   |   |   | - |   |   |   | 1,485,377 |   |
| Long-term      debt                   |   |   | 11     |      |                  |   | 10,317    |                   |   |   | 265                    |    |   |              | 105     |    |          |   | 873    |   |   |   | 8,201 |   |   |   | 19,761 |   |
| Subordinated      notes               |   |   | 12     |      |                  |   | -         |                   |   |   | -                      |    |   |              | -       |    |          |   | 89,692 |   |   |   | - |   |   |   | 89,692 |   |
| Operating      leases                 |   |   | 18     |      |                  |   | 2,597     |                   |   |   | 3,504                  |    |   |              | 1,055   |    |          |   | 1,144  |   |   |   | - |   |   |   | 8,300 |   |
| Purchase      obligations             |   |   | -      |      |                  |   | 16,562    |                   |   |   | 2,817                  |    |   |              | 11      |    |          |   | -      |   |   |   | - |   |   |   | 19,390 |   |
| Total      contractual obligations    |   |   | $      | 3,203,413 |                  |   | $         | 368,687                |   |   | $                      | 103,346 |   |              | $       | 105,960 |          |   | $      | 8,201  |   |   | $ | 3,789,607 |   |

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| Three      Months Ended (Dollars in      thousands, except per share amounts) |   | March      31 |   |   | June      30 |   |   | September      30 |   |   | December      31 |   |
|-------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|--------|-------------------|--------|--------|------------------|--------|
| 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 |   |
| 2008                                                                          |   |          |   |   |         |   |   |              |   |   |             |   |   |   |   |   |
| Interest      income                                                          |   | $             | 62,124 |   |         | $      | 58,579 |              |   | $      | 58,065           |   |   | $ | 56,540 |   |
| Interest      expense                                                         |   |          | 29,827 |   |         |   | 25,455 |              |   |   | 24,668           |   |   |   | 23,198 |   |
| Net      interest income                                                      |   |          | 32,297 |   |         |   | 33,124 |              |   |   | 33,397           |   |   |   | 33,342 |   |
| Provision      for loan and lease losses                                      |   |          | 1,539  |   |         |   | 4,493  |              |   |   | 3,571            |   |   |   | 7,045 |   |
| Investment      securities and other investment gains (losses)                |   |          | 623    |   |         |   | (1,066 | )                 |   |   | (8,816           | )      |   |   | (738 | ) |
| Income      before income taxes                                               |   |          | 13,884 |   |         |   | 10,603 |              |   |   | 3,889            |   |   |   | 18,025 |   |
| Net      income                                                               |   |          | 9,354  |   |         |   | 7,245  |              |   |   | 4,472            |   |   |   | 12,315 |   |
| Net      income available to common shareholders                              |   |          | 9,354  |   |         |   | 7,245  |              |   |   | 4,472            |   |   |   | 12,315 |   |
| Diluted      net income per common share                                      |   |          | 0.38   |   |         |   | 0.30   |              |   |   | 0.18             |   |   |   | 0.50 |   |

Item 7A.  Quantitative and Qualitative Disclosuresabout Market Risk.

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Item 8.  Financial Statements andSupplementary Data.

Report 

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| CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION                                                          |   |   |          |   |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
|                                                                                                         |   |   |          |   |   |   |
| December      31      (Dollars in thousands)                                                                 |   | 2009   |          |   | 2008   |   |
|                                                                                                         |   |   |          |   |   |   |
| ASSETS                                                                                                       |   |   |          |   |   |   |
| Cash      and due from banks                                                                                 |   | $      | 72,872        |   |   | $      | 119,771 |   |
| Federal      funds sold and interest bearing deposits with other banks                                       |   |   | 141,166       |   |   |   | 6,951 |   |
| Investment      securities available-for-sale                                                                |   |   |          |   |   |   |   |   |
| (amortized      cost of $893,439 and $715,380 at December 31, 2009 and December 31, 2008,      respectively) |   |   | 901,638       |   |   |   | 724,754 |   |
| Other      investments                                                                                       |   |   | 21,012        |   |   |   | 18,612 |   |
| Trading      account securities                                                                              |   |   | 125           |   |   |   | 100 |   |
| Mortgages      held for sale                                                                                 |   |   | 26,649        |   |   |   | 46,686 |   |
| Loans      and leases, net of unearned discount:                                                             |   |   |          |   |   |   |   |   |
| Commercial      and agricultural loans                                                                       |   |   | 546,222       |   |   |   | 643,440 |   |
| Auto,      light truck and environmental equipment                                                           |   |   | 349,741       |   |   |   | 353,838 |   |
| Medium      and heavy duty truck                                                                             |   |   | 204,545       |   |   |   | 243,375 |   |
| Aircraft      financing                                                                                      |   |   | 617,384       |   |   |   | 632,121 |   |
| Construction      equipment financing                                                                        |   |   | 313,300       |   |   |   | 375,983 |   |
| Loans      secured by real estate                                                                            |   |   | 952,223       |   |   |   | 918,749 |   |
| Consumer      loans                                                                                          |   |   | 109,735       |   |   |   | 130,706 |   |
| Total      loans and leases                                                                                  |   |   | 3,093,150     |   |   |   | 3,298,212 |   |
| Reserve      for loan and lease losses                                                                       |   |   | (88,236       | )      |   |   | (79,776 | ) |
| Net      loans and leases                                                                                    |   |   | 3,004,914     |   |   |   | 3,218,436 |   |
| Equipment      owned under operating leases, net                                                             |   |   | 97,004        |   |   |   | 83,062 |   |
| Net      premises and equipment                                                                              |   |   | 37,907        |   |   |   | 40,491 |   |
| Goodwill      and intangible assets                                                                          |   |   | 90,222        |   |   |   | 91,691 |   |
| Accrued      income and other assets                                                                         |   |   | 148,591       |   |   |   | 113,620 |   |
| Total      assets                                                                                            |   | $      | 4,542,100     |   |   | $      | 4,464,174 |   |
| LIABILITIES                                                                                                  |   |   |          |   |   |   |   |   |
| Deposits:                                                                                                    |   |   |          |   |   |   |   |   |
| Noninterest      bearing                                                                                     |   | $      | 450,608       |   |   | $      | 416,960 |   |
| Interest      bearing                                                                                        |   |   | 3,201,856     |   |   |   | 3,097,582 |   |
| Total      deposits                                                                                          |   |   | 3,652,464     |   |   |   | 3,514,542 |   |
| Short-term      borrowings:                                                                                  |   |   |          |   |   |   |   |   |
| Federal      funds purchased and securities sold under agreements to      repurchase                         |   |   | 123,787       |   |   |   | 272,529 |   |
| Other      short-term borrowings                                                                             |   |   | 26,323        |   |   |   | 23,646 |   |
| Total      short-term borrowings                                                                             |   |   | 150,110       |   |   |   | 296,175 |   |
| Long-term      debt and mandatorily redeemable securities                                                    |   |   | 19,761        |   |   |   | 29,832 |   |
| Subordinated      notes                                                                                      |   |   | 89,692        |   |   |   | 89,692 |   |
| Accrued      expenses and other liabilities                                                                  |   |   | 59,753        |   |   |   | 80,269 |   |
| Total      liabilities                                                                                       |   |   | 3,971,780     |   |   |   | 4,010,510 |   |
| SHAREHOLDERS' EQUITY                                                                                         |   |   |          |   |   |   |   |   |
| Preferred      stock; no par value                                                                           |   |   |          |   |   |   |   |   |
| Authorized      10,000,000 shares; issued 111,000 shares in 2009 and none in      2008                       |   |   | 104,930       |   |   |   | - |   |
| Common      stock; no par value                                                                              |   |   |          |   |   |   |   |   |
| Authorized      40,000,000 shares; issued 25,643,506 shares in 2009      and 2008                  |   |   |  350,269 |   |   |   |  342,982 |   |
| Retained      earnings                                                                                       |   |   | 142,407       |   |   |   | 136,877 |   |
| Cost      of common stock in treasury (1,532,483 shares in 2009 and 1,532,576 shares      in 2008)           |   |   | (32,380       | )      |   |   | (32,019 | ) |
| Accumulated      other comprehensive income                                                                  |   |   | 5,094         |   |   |   | 5,824 |   |
| Total      shareholders' equity                                                                              |   |   | 570,320       |   |   |   | 453,664 |   |
| Total      liabilities and shareholders' equity                                                              |   | $      | 4,542,100     |   |   | $      | 4,464,174 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| The      accompanying notes are a part of the consolidated financial      statements.                        |   |   |          |   |   |   |   |   |

----

Table of Contents

| CONSOLIDATED      STATEMENTS OF INCOME                                                |   |   |    |   |   |   |    |   |   |
|---------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                  |   |   |    |   |   |   |    |   |   |
| Year      Ended December 31 (Dollars in      thousands, except per share data)        |   | 2009   |    |   | 2008   |   |    | 2007   |   |
| Interest      income:                                                                 |   |   |    |   |   |   |    |   |   |
| Loans      and leases                                                                 |   | $      | 174,885 |   |   | $      | 204,006 |   |   | $ | 216,186 |   |
| Investment      securities, taxable                                                   |   |   | 17,594  |   |   |   | 22,170  |   |   |   | 25,136 |   |
| Investment      securities, tax-exempt                                                |   |   | 6,705   |   |   |   | 7,707   |   |   |   | 7,608 |   |
| Other                                                                                 |   |   | 1,228   |   |   |   | 1,425   |   |   |   | 4,657 |   |
| Total      interest income                                                            |   |   | 200,412 |   |   |   | 235,308 |   |   |   | 253,587 |   |
| Interest      expense:                                                                |   |   |    |   |   |   |    |   |   |   |   |   |
| Deposits                                                                              |   |   | 63,521  |   |   |   | 86,903  |   |   |   | 115,113 |   |
| Short-term      borrowings                                                            |   |   | 1,115   |   |   |   | 7,626   |   |   |   | 10,935 |   |
| Subordinated      notes                                                               |   |   | 6,589   |   |   |   | 6,714   |   |   |   | 6,051 |   |
| Long-term      debt and mandatorily redeemable securities                             |   |   | 975     |   |   |   | 1,905   |   |   |   | 2,578 |   |
| Total      interest expense                                                           |   |   | 72,200  |   |   |   | 103,148 |   |   |   | 134,677 |   |
| Net      interest income                                                              |   |   | 128,212 |   |   |   | 132,160 |   |   |   | 118,910 |   |
| Provision      for loan and lease losses                                              |   |   | 31,101  |   |   |   | 16,648  |   |   |   | 7,534 |   |
| Net      interest income after provision for loan and lease losses                    |   |   | 97,111  |   |   |   | 115,512 |   |   |   | 111,376 |   |
| Noninterest      income:                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Trust      fees                                                                       |   |   | 15,036  |   |   |   | 18,599  |   |   |   | 15,567 |   |
| Service      charges on deposit accounts                                              |   |   | 20,645  |   |   |   | 22,035  |   |   |   | 20,470 |   |
| Mortgage      banking income                                                          |   |   | 8,251   |   |   |   | 2,994   |   |   |   | 2,868 |   |
| Insurance      commissions                                                            |   |   | 4,930   |   |   |   | 5,363   |   |   |   | 4,666 |   |
| Equipment      rental income                                                          |   |   | 25,757  |   |   |   | 24,224  |   |   |   | 21,312 |   |
| Other      income                                                                     |   |   | 9,224   |   |   |   | 9,293   |   |   |   | 8,864 |   |
| Gain      on sale of certain Investment Advisor assets                                |   |   | -       |   |   |   | 11,492  |   |   |   | - |   |
| Investment      securities and other investment gains (losses)                        |   |   | 1,687   |   |   |   | (9,997  | )      |   |   | (3,128 | ) |
| Total      noninterest income                                                         |   |   | 85,530  |   |   |   | 84,003  |   |   |   | 70,619 |   |
| Noninterest      expense:                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Salaries      and employee benefits                                                   |   |   | 72,483  |   |   |   | 76,965  |   |   |   | 73,944 |   |
| Net      occupancy expense                                                            |   |   | 9,185   |   |   |   | 9,698   |   |   |   | 9,030 |   |
| Furniture      and equipment expense                                                  |   |   | 13,980  |   |   |   | 15,095  |   |   |   | 15,145 |   |
| Depreciation      - leased equipment                                                  |   |   | 20,515  |   |   |   | 19,450  |   |   |   | 17,085 |   |
| Professional      fees                                                                |   |   | 4,399   |   |   |   | 8,446   |   |   |   | 4,575 |   |
| Supplies      and communications                                                      |   |   | 5,916   |   |   |   | 6,782   |   |   |   | 5,987 |   |
| Business      development and marketing expense                                       |   |   | 3,488   |   |   |   | 3,749   |   |   |   | 4,788 |   |
| Loan      and lease collection and repossession expense                               |   |   | 4,283   |   |   |   | 1,162   |   |   |   | 1,123 |   |
| FDIC      and other insurance                                                         |   |   | 8,362   |   |   |   | 2,601   |   |   |   | 1,190 |   |
| Other  expense                                                              |   |   | 8,512   |   |   |   | 9,166   |   |   |   | 7,445 |   |
| Total      noninterest expense                                                        |   |   | 151,123 |   |   |   | 153,114 |   |   |   | 140,312 |   |
| Income      before income taxes                                                       |   |   | 31,518  |   |   |   | 46,401  |   |   |   | 41,683 |   |
| Income      taxes                                                                     |   |   | 6,028   |   |   |   | 13,015  |   |   |   | 11,144 |   |
| Net      income                                                                       |   |   | 25,490  |   |   |   | 33,386  |   |   |   | 30,539 |   |
| Preferred      stock dividends and discount accretion                                 |   |   | (6,416  | )      |   |   | -       |   |   |   | - |   |
| Net      income available to common shareholders                                      |   | $      | 19,074  |   |   | $      | 33,386  |   |   | $ | 30,539 |   |
| Basic      net income per common share                                                |   | $      | 0.79    |   |   | $      | 1.38    |   |   | $ | 1.30 |   |
| Diluted      net income per common share                                              |   | $      | 0.79    |   |   | $      | 1.37    |   |   | $ | 1.28 |   |
|                                                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| 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, 2007                                                       | $       | 368,904 |      | $      | -       |   | $        | 289,163 |             | $      | 99,572  |                    | $ | (19,571 | ) |   | $ | (260 | ) |
|  Comprehensive      income, net of tax:                                                |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|  Net      income                                                                       |    | 30,539  |      |   | -       |   |     | -       |             |   | 30,539  |                    |   | - |   |   |   | - |   |
|  Change      in unrealized appreciation of                                             |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|  available-for-sale      securities, net of tax                                        |    | 2,782   |      |   | -       |   |     | -       |             |   | -       |                    |   | - |   |   |   | 2,782 |   |
|  Total      comprehensive income                                                       |    | 33,321  |      |   | -       |   |     | -       |             |   | -       |                    |   | - |   |   |   | - |   |
|  Issuance      of 40,349 common shares per                                             |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|  stock      based compensation awards, including                                       |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|   related      tax effects                                                        |    | 545     |      |   | -       |   |     | -       |             |   | 384     |                    |   | 161 |   |   |   | - |   |
|  Cost      of 569,310 shares of common                                                 |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|  stock      acquired for treasury                                                      |    | (12,821 | )         |   | -       |   |     | -       |             |   | -       |                    |   | (12,821 | ) |   |   | - |   |
|  Common      stock dividend ($.560 per share)                                          |    | (13,122 | )         |   | -       |   |     | -       |             |   | (13,122 | )                       |   | - |   |   |   | - |   |
|  Issuance      of 2,124,974 shares of common                                           |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|  stock      for FINA Bancorp purchase                                                  |    | 53,677  |      |   | -       |   |     | 53,677  |             |   | -       |                    |   | - |   |   |   | - |   |
|  Balance      at December 31, 2007                                                     | $       | 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                                        |    | 3,302   |      |   | -       |   |     | -       |             |   | -       |                    |   | - |   |   |   | 3,302 |   |
|  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 appreciation of                                             |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|  available-for-sale      securities, net of tax                                        |    | (730    | )         |   | -       |   |     | -       |             |   | -       |                    |   | - |   |   |   | (730 | ) |
|  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 (accrued and/or paid)                                   |    | (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 |   |
|                                                                                        |    |    |      |   |    |   |     |    |             |   |    |                    |   |   |   |   |   |   |   |
|  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)                                           |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|  Operating      activities:                                                                  |   |   |     |   |   |   |     |   |   |
|  Net      income                                                                             |   | $      | 25,490   |   |   | $      | 33,386   |   |   | $ | 30,539 |   |
|  Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |     |   |   |   |     |   |   |   |   |   |
|  Provision      for loan and lease losses                                                    |   |   | 31,101   |   |   |   | 16,648   |   |   |   | 7,534 |   |
|  Depreciation      of premises and equipment                                                 |   |   | 4,605    |   |   |   | 5,312    |   |   |   | 5,364 |   |
|  Depreciation      of equipment owned and leased to others                                   |   |   | 20,515   |   |   |   | 19,450   |   |   |   | 17,085 |   |
|  Amortization      of investment security premiums and accretion of discounts,      net      |   |   | 5,304    |   |   |   | 2,232    |   |   |   | (356 | ) |
|  Amortization      of mortgage servicing rights                                              |   |   | 3,331    |   |   |   | 2,838    |   |   |   | 2,403 |   |
|  Mortgage      servicing asset (recoveries)/impairment                                       |   |   | (2,072   | )      |   |   | 1,913    |   |   |   | 143 |   |
|  Deferred      income taxes                                                                  |   |   | 5,687    |   |   |   | (10,779  | )      |   |   | (4,558 | ) |
|  Realized      investment securities (gains) losses                                          |   |   | (1,687   | )      |   |   | 9,997    |   |   |   | 3,128 |   |
|  Originations/purchases      of loans held for sale, net of principal collected              |   |   | (577,949 | )      |   |   | (380,920 | )      |   |   | (327,679 | ) |
|  Proceeds      from the sales of loans held for sale                                         |   |   | 602,126  |   |   |   | 362,444  |   |   |   | 352,114 |   |
|  Net      gain on sale of loans held for sale                                                |   |   | (4,140   | )      |   |   | (2,289   | )      |   |   | (197 | ) |
|  Change      in trading account securities                                                   |   |   | (25      | )      |   |   | (100     | )      |   |   | - |   |
|  Change      in interest receivable                                                          |   |   | 1,723    |   |   |   | 1,383    |   |   |   | (1,296 | ) |
|  Change      in interest payable                                                             |   |   | (3,944   | )      |   |   | (6,710   | )      |   |   | (380 | ) |
|  Change      in other assets                                                                 |   |   | (37,069  | )      |   |   | (15,980  | )      |   |   | (8,587 | ) |
|  Change      in other liabilities                                                            |   |   | (21,937  | )      |   |   | 21,345   |   |   |   | 4,003 |   |
|  Other                                                                                       |   |   | 794      |   |   |   | 4,070    |   |   |   | 5,101 |   |
|  Net      change in operating activities                                                     |   |   | 51,853   |   |   |   | 64,240   |   |   |   | 84,361 |   |
|  Investing      activities:                                                                  |   |   |     |   |   |   |     |   |   |   |   |   |
|  Cash      paid for acquisition, net                                                         |   |   | -        |   |   |   | -        |   |   |   | (55,977 | ) |
|  Proceeds      from sales of investment securities                                           |   |   | 240,325  |   |   |   | 8,548    |   |   |   | 121,671 |   |
|  Proceeds      from maturities of investment securities                                      |   |   | 515,216  |   |   |   | 519,847  |   |   |   | 496,324 |   |
|  Purchases      of investment securities                                                     |   |   | (937,217 | )      |   |   | (480,082 | )      |   |   | (518,041 | ) |
|  Net      change in short-term and other investments                                         |   |   | (136,615 | )      |   |   | 15,191   |   |   |   | 195,337 |   |
|  Loans      sold or participated to others                                                   |   |   | 17,805   |   |   |   | -        |   |   |   | - |   |
|  Net      change in loans and leases                                                         |   |   | 164,616  |   |   |   | (110,246 | )      |   |   | (252,929 | ) |
|  Net      change  in equipment owned under operatingleases                         |   |   | (34,457  | )      |   |   | (20,552  | )      |   |   | (22,734 | ) |
|  Purchases      of premises and equipment                                                    |   |   | (2,256   | )      |   |   | (3,726   | )      |   |   | (14,467 | ) |
|  Net      change in investing activities                                                     |   |   | (172,583 | )      |   |   | (71,020  | )      |   |   | (50,816 | ) |
|  Financing      activities:                                                                  |   |   |     |   |   |   |     |   |   |   |   |   |
|  Net      change in demand deposits, NOW accounts and savings    accounts                    |   |   | 317,699  |   |   |   | (72,780  | )      |   |   | (14,260 | ) |
|  Net      change in certificates of deposit                                                  |   |   | (179,777 | )      |   |   | 117,659  |   |   |   | (86,502 | ) |
|  Net      change in short-term borrowings                                                    |   |   | (146,065 | )      |   |   | (41,656  | )      |   |   | 96,930 |   |
|  Proceeds      from issuance of long-term debt                                               |   |   | 1,014    |   |   |   | 10,826   |   |   |   | 1,159 |   |
|  Proceeds      from issuance of subordinated notes                                           |   |   | -        |   |   |   | -        |   |   |   | 58,764 |   |
|  Payments      on subordinated notes                                                         |   |   | -        |   |   |   | (10,310  | )      |   |   | (17,784 | ) |
|  Payments      on long-term debt                                                             |   |   | (11,382  | )      |   |   | (16,413  | )      |   |   | (11,225 | ) |
|  Net      proceeds from issuance of treasury stock                                           |   |   | 1,663    |   |   |   | 341      |   |   |   | 545 |   |
|  Acquisition      of treasury stock                                                          |   |   | (1,299   | )      |   |   | -        |   |   |   | (12,821 | ) |
|  Net      proceeds from issuance of preferred stock & common stock      warrants         |   |   | 111,000  |   |   |   | -        |   |   |   | - |   |
|  Cash      dividends paid on preferred stock                                                 |   |   | (4,502   | )      |   |   | -        |   |   |   | - |   |
|  Cash      dividends paid on common stock                                                    |   |   | (14,520  | )      |   |   | (14,253  | )      |   |   | (13,345 | ) |
|  Net      change in financing activities                                                     |   |   | 73,831   |   |   |   | (26,586  | )      |   |   | 1,461 |   |
|  Net      change in cash and cash equivalents                                                |   |   | (46,899  | )      |   |   | (33,366  | )      |   |   | 35,006 |   |
|  Cash      and cash equivalents, beginning of year                                           |   |   | 119,771  |   |   |   | 153,137  |   |   |   | 118,131 |   |
|  Cash      and cash equivalents, end of year                                                 |   | $      | 72,872   |   |   | $      | 119,771  |   |   | $ | 153,137 |   |
|  Supplemental      Information:                                                              |   |   |     |   |   |   |     |   |   |   |   |   |
|  Cash      paid for:                                                                         |   |   |     |   |   |   |     |   |   |   |   |   |
|  Interest                                                                                    |   | $      | 76,145   |   |   | $      | 109,858  |   |   | $ | 137,397 |   |
|  Income      taxes                                                                           |   |   | 8,903    |   |   |   | 19,187   |   |   |   | 13,314 |   |
| The      accompanying notes are a part of the consolidated financial      statements.             |   |   |     |   |   |   |     |   |   |   |   |   |

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Notes 

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|                                                   |   | Amortized |    |   | Gross                 |   |   | Gross                  |   |   |            |   |
|--------------------------------------------------------|--------|-----------|---------|--------|-----------------------|--------|--------|------------------------|--------|--------|-----------------|--------|
| (Dollars      in thousands)                            |   | Cost      |    |   | Unrealized      Gains |   |   | Unrealized      Losses |   |   | Fair      Value |   |
| 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 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 |   |
| December      31, 2008                                 |   |      |    |   |                  |   |   |                   |   |   |            |   |   |   |   |   |
| U.S.      Treasury and Federal agencies securities     |   | $         | 293,461 |   |                  | $      | 2,892  |                   |   | $      | (2              | )      |   | $ | 296,351 |   |
| U.S.      States and political subdivisions securities |   |      | 198,640 |   |                  |   | 3,995  |                   |   |   | (1,686          | )      |   |   | 200,949 |   |
| Mortgage-backed      securities - Federal agencies     |   |      | 207,954 |   |                  |   | 3,553  |                   |   |   | (1,499          | )      |   |   | 210,008 |   |
| Corporate      debt securities                         |   |      | 10,494  |   |                  |   | 51     |                   |   |   | (1              | )      |   |   | 10,544 |   |
| Foreign      government securities                     |   |      | 435     |   |                  |   | -      |                   |   |   | -               |   |   |   | 435 |   |
| Total      debt securities                             |   |      | 710,984 |   |                  |   | 10,491 |                   |   |   | (3,188          | )      |   |   | 718,287 |   |
| Marketable      equity securities                      |   |      | 4,396   |   |                  |   | 2,091  |                   |   |   | (20             | )      |   |   | 6,467 |   |
| Total      investment securities available-for-sale    |   | $         | 715,380 |   |                  | $      | 12,582 |                   |   | $      | (3,208          | )      |   | $ | 724,754 |   |

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|                                          |   | Amortized |    |   |            |   |
|-----------------------------------------------|--------|-----------|---------|--------|-----------------|--------|
| (Dollars      in thousands)                   |   | Cost      |    |   | Fair      Value |   |
| Due      in one year or less                  |   | $         | 66,566  |   |            | $      | 66,962 |   |
| Due      after one year through five years    |   |      | 322,574 |   |            |   | 326,082 |   |
| Due      after five years through ten years   |   |      | 200,763 |   |            |   | 201,095 |   |
| Due      after ten years                      |   |      | 15,833  |   |            |   | 13,846 |   |
| Mortgage-backed      securities               |   |      | 286,415 |   |            |   | 290,977 |   |
| Total      debt securities available for sale |   | $         | 892,151 |   |            | $      | 898,962 |   |

| (Dollars      in thousands)      |   | 2009   |   |   | 2008   |   |    | 2007   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Gross      realized gains        |   | $      | 2,108  |   |   | $      | 830     |   |   | $ | 1,057 |   |
| Gross      realized losses       |   |   | (707   | )      |   |   | (11,050 | )      |   |   | (4,119 | ) |
| Net      realized gains (losses) |   | $      | 1,401  |   |   | $      | (10,220 | )      |   | $ | (3,062 | ) |

|                                                          |   | 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, 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 | ) |
|                                                          |   |                     |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2008                                        |   |                     |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury and Federal agencies securities            |   | $                        | 19,998  |   |                     | $      | (2     | )      |   | $ | - |   |   | $ | - |   |   | $ | 19,998 |   |   | $ | (2 | ) |
| U.S.      States and political subdivisions securities        |   |                     | 29,594  |   |                     |   | (1,686 | )      |   |   | - |   |   |   | - |   |   |   | 29,594 |   |   |   | (1,686 | ) |
| Mortgage-backed      securities - Federal agencies            |   |                     | 14,840  |   |                     |   | (229   | )      |   |   | 34,721 |   |   |   | (1,270 | ) |   |   | 49,561 |   |   |   | (1,499 | ) |
| Corporate      debt securities                                |   |                     | 493     |   |                     |   | (1     | )      |   |   | - |   |   |   | - |   |   |   | 493 |   |   |   | (1 | ) |
| Total      debt securities                                    |   |                     | 64,925  |   |                     |   | (1,918 | )      |   |   | 34,721 |   |   |   | (1,270 | ) |   |   | 99,646 |   |   |   | (3,188 | ) |
| Marketable      equity securities                             |   |                     | 11      |   |                     |   | (18    | )      |   |   | 2 |   |   |   | (2 | ) |   |   | 13 |   |   |   | (20 | ) |
| Total      temporarily impaired available-for-sale securities |   | $                        | 64,936  |   |                     | $      | (1,936 | )      |   | $ | 34,723 |   |   | $ | (1,272 | ) |   | $ | 99,659 |   |   | $ | (3,208 | ) |

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| (Dollars      in thousands)                    |   | 2009   |    |   | 2008   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Direct      finance leases:                    |   |   |    |   |   |   |
| Rentals      receivable                        |   | $      | 207,666 |   |   | $      | 183,818 |   |
| Estimated      residual value of leased assets |   |   | 29,696  |   |   |   | 33,711 |   |
| Gross      investment in lease financing       |   |   | 237,362 |   |   |   | 217,529 |   |
| Unearned      income                           |   |   | (34,753 | )      |   |   | (31,630 | ) |
| Net      investment in lease financing         |   | $      | 202,609 |   |   | $      | 185,899 |   |

| (Dollars      in thousands)              |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Balance,      beginning of year          |   | $      | 79,776  |   |   | $      | 66,602 |   |   | $ | 58,802 |   |
| Provision      for loan and lease losses |   |   | 31,101  |   |   |   | 16,648 |   |   |   | 7,534 |   |
| Charge-offs                              |   |   | (28,215 | )      |   |   | (8,393 | )      |   |   | (7,367 | ) |
| Recoveries                               |   |   | 5,574   |   |   |   | 4,919  |   |   |   | 5,254 |   |
| Reserves      acquired in acquisitions   |   |   | -       |   |   |   | -      |   |   |   | 2,379 |   |
| Balance,      end of year                |   | $      | 88,236  |   |   | $      | 79,776 |   |   | $ | 66,602 |   |

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| (Dollars      in thousands)                    |   | 2009   |    |   | 2008   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Land                                           |   | $      | 11,052  |   |   | $      | 10,788 |   |
| Buildings      and improvements                |   |   | 47,771  |   |   |   | 47,832 |   |
| Furniture      and equipment                   |   |   | 36,261  |   |   |   | 35,861 |   |
| Total      premises and equipment              |   |   | 95,084  |   |   |   | 94,481 |   |
| Accumulated      depreciation and amortization |   |   | (57,177 | )      |   |   | (53,990 | ) |
| Net      premises and equipment                |   | $      | 37,907  |   |   | $      | 40,491 |   |

| (Dollars      in thousands)                                         |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Mortgage      servicing assets:                                     |   |   |   |   |   |   |
| Balance      at beginning of year                                   |   | $      | 6,708  |   |   | $      | 7,440 |   |
| Additions                                                           |   |   | 7,143  |   |   |   | 5,488 |   |
| Amortization                                                        |   |   | (3,331 | )      |   |   | (2,838 | ) |
| Sales                                                               |   |   | (1,771 | )      |   |   | (3,382 | ) |
| Carrying      value before valuation allowance at end of year       |   |   | 8,749  |   |   |   | 6,708 |   |
| Valuation      allowance:                                           |   |   |   |   |   |   |   |   |
| Balance      at beginning of year                                   |   |   | (2,073 | )      |   |   | (161 | ) |
| Impairment      recoveries (charges)                                |   |   | 2,072  |   |   |   | (1,912 | ) |
| Balance      at end of year                                         |   | $      | (1     | )      |   | $      | (2,073 | ) |
| Net      carrying value of mortgage servicing assets at end of year |   | $      | 8,748  |   |   | $      | 4,635 |   |
| Fair      value of mortgage servicing assets at end of year         |   | $      | 10,180 |   |   | $      | 4,715 |   |

|                                                 |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Expected      weighted-average life (in years)       |   |   | 2.95   |   |   |   | 3.02 |   |
| Weighted-average      constant prepayment rate (CPR) |   |   | 18.73  | %      |   |   | 40.40 | % |
| Weighted-average      discount rate                  |   |   | 8.96   | %      |   |   | 8.45 | % |

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| (Dollars      in thousands)         |   | 2009   |   |   | 2008   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
| Core      deposit intangibles:      |   |   |   |   |   |   |
| Gross      carrying amount          |   | $      | 10,421 |   |   | $      | 10,537 |   |
| Less:      accumulated amortization |   |   | (3,699 | )      |   |   | (2,378 | ) |
| Net      carrying amount            |   | $      | 6,722  |   |   | $      | 8,159 |   |
| Other      intangibles:             |   |   |   |   |   |   |   |   |
| Gross      carrying amount          |   | $      | 254    |   |   | $      | 254 |   |
| Less:      accumulated amortization |   |   | (82    | )      |   |   | (50 | ) |
| Net      carrying amount            |   | $      | 172    |   |   | $      | 204 |   |

| (Dollars      in thousands) |   |   |    |
|-----------------------------|--------|--------|---------|
| Under      3 months         |   | $      | 103,958 |   |
| 4 –      6 months     |   |   | 70,820  |   |
| 7 –      12 months    |   |   | 169,341 |   |
| Over      12 months         |   |   | 165,961 |   |
| Total                       |   | $      | 510,080 |   |

| (Dollars      in thousands) |   |   |      |
|-----------------------------|--------|--------|-----------|
| 2010                        |   | $      | 1,006,850 |   |
| 2011                        |   |   | 289,050   |   |
| 2012                        |   |   | 73,051    |   |
| 2013                        |   |   | 51,888    |   |
| 2014                        |   |   | 50,287    |   |
| Thereafter                  |   |   | 14,251    |   |
| Total                       |   | $      | 1,485,377 |   |

| (Dollars      in thousands)                                     |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Term      loan                                                  |   | $      | 10,000 |   |   | $      | 10,000 |   |
| Federal      Home Loan Bank borrowings (4.77%–6.54%)      |   |   | 955    |   |   |   | 10,981 |   |
| Mandatorily      redeemable securities                          |   |   | 8,201  |   |   |   | 7,905 |   |
| Other      long-term debt                                       |   |   | 605    |   |   |   | 946 |   |
| Total      long-term debt and mandatorily redeemable securities |   | $      | 19,761 |   |   | $      | 29,832 |   |

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|                                    |   | 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)                              |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|-------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Distributed      earnings allocated to common stock                                 |   | $      | 14,247     |   |   | $      | 13,980     |   |   | $ | 13,102 |   |
| Undistributed      earnings allocated to common stock                               |   |   | 4,735      |   |   |   | 19,035     |   |   |   | 17,094 |   |
| Net      earnings allocated to common stock                                         |   |   | 18,982     |   |   |   | 33,015     |   |   |   | 30,196 |   |
| Net      earnings allocated to participating securities                             |   |   | 92         |   |   |   | 371        |   |   |   | 343 |   |
| Net      income allocated to common stock and participating    securities           |   | $      | 19,074     |   |   | $      | 33,386     |   |   | $ | 30,539 |   |
|                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted      average shares outstanding for basic earnings per common    share     |   |   | 24,157,179 |   |   |   | 24,105,753 |   |   |   | 23,516,342 |   |
| Dilutive      effect of stock compensation                                          |   |   | 6,510      |   |   |   | 281,979    |   |   |   | 293,525 |   |
| Weighted      average shares outstanding for diluted earnings per common      share |   |   | 24,163,689 |   |   |   | 24,387,732 |   |   |   | 23,809,867 |   |
|                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic      earnings per common share                                                |   | $      | 0.79       |   |   | $      | 1.38       |   |   | $ | 1.30 |   |
| Diluted      earnings per common share                                              |   | $      | 0.79       |   |   | $      | 1.37       |   |   | $ | 1.28 |   |

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|                              |   |           |      |   | Non-Vested      Stock   |   |    | Stock      Options |   |
|-----------------------------------|--------|----------------|-----------|--------|-------------------------|--------|---------|--------------------|--------|
|                              |   |           |      |   | Awards      Outstanding |   |    | Outstanding        |   |
|                              |   |           |      |   |                    |   |    | Weighted-          |   |   |   |   |   | Weighted- |   |
|                              |   | Shares         |      |   | Number      of          |   |    | Average            |   |   |   |   |   | Average |   |
|                              |   | Available      |      |   | Shares                  |   |    | Grant-Date         |   |   | Number      of |   |   | Exercise |   |
|                              |   | for      Grant |      |   |                    |   |    | Fair      Value    |   |   | Shares |   |   | Price |   |
| Balance,      January 1, 2007     |   |           | 2,407,659 |   |                    |   | 410,148 |               |   |  $ | 13.90 |   |   |   | 489,475 |   |   |  $ | 26.04 |   |
| Shares      authorized --2007 EIP |   |           | 97,250    |   |                    |   | -       |               |   |   | - |   |   |   | - |   |   |   | - |   |
| Granted                           |   |           | (131,796  | )      |                    |   | 129,100 |               |   |   | 18.90 |   |   |   | 2,696 |   |   |   | 28.40 |   |
| Stock      options exercised      |   |           | -         |   |                    |   | -       |               |   |   | - |   |   |   | (20,654 | ) |   |   | 15.63 |   |
| Stock      awards vested          |   |           | -         |   |                    |   | (48,530 | )                  |   |   | 15.43 |   |   |   | - |   |   |   | - |   |
| Forfeited                         |   |           | 555       |   |                    |   | (20,516 | )                  |   |   | 12.33 |   |   |   | - |   |   |   | - |   |
| Canceled                          |   |           | -         |   |                    |   | -       |               |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance,      December 31, 2007   |   |           | 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 |   |

|                          | 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                   | 2.73                       | $13.38                   |   | 24,008 | $13.69 |
| $18.00      to $26.99         | 36,700                   | 1.58                       |        20.43        |   | 36,700 |        20.43 |
| $27.00      to $29.46         |        5,555        | 1.81                       |        28.95        |   |        5,555 |        28.95 |

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| Year      Ended December 31  (Dollars in      thousands) |   | 2009   |   |   | 2008   |   |    | 2007   |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Current:                                                           |   |   |   |   |   |   |    |   |   |
| Federal                                                            |   | $      | (983   | )      |   | $      | 21,112  |   |   | $ | 14,630 |   |
| State                                                              |   |   | 1,324  |   |   |   | 2,682   |   |   |   | 1,072 |   |
| Total      current                                                 |   |   | 341    |   |   |   | 23,794  |   |   |   | 15,702 |   |
| Deferred:                                                          |   |   |   |   |   |   |    |   |   |   |   |   |
| Federal                                                            |   |   | 6,172  |   |   |   | (9,446  | )      |   |   | (4,191 | ) |
| State                                                              |   |   | (485   | )      |   |   | (1,333  | )      |   |   | (367 | ) |
| Total      deferred                                                |   |   | 5,687  |   |   |   | (10,779 | )      |   |   | (4,558 | ) |
| Total      provision                                               |   | $      | 6,028  |   |   | $      | 13,015  |   |   | $ | 11,144 |   |

|                                                                                                                                                                    |   | 2009   |   |   | 2008            |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|-----------------|--------|--------|--------|--------|
|                                                                                                                                                                    |   |   |   |   | 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                                                                                                                                       |   | $      | 11,031 |   |            |   | 35.0   | %      |   | $ | 16,240 |   |   |   | 35.0 | % |   | $ | 14,589 |   |   |   | 35.0 | % |
| (Decrease)      increase in income taxes resulting from:                                                                                                                |   |   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt      interest income                                                                                                                                         |   |   | (2,539 | )      |            |   | (8.1   | )      |   |   | (2,412 | ) |   |   | (5.2 | ) |   |   | (2,380 | ) |   |   | (5.7 | ) |
| Settlements      with taxing authorities                                                                                                                                |   |   | (2,170 | )      |            |   | (6.9   | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| State      taxes, net of federal income tax benefit                                                                                                                     |   |   | 545    |   |            |   | 1.7    |   |   |   | 877 |   |   |   | 1.9 |   |   |   | 458 |   |   |   | 1.1 |   |
| Dividends      received deduction                                                                                                                                       |   |   | (76    | )      |            |   | (0.2   | )      |   |   | (171 | ) |   |   | (0.4 | ) |   |   | (343 | ) |   |   | (0.8 | ) |
| Other                                                                                                                                                                   |   |   | (763   | )      |            |   | (2.4   | )      |   |   | (1,519 | ) |   |   | (3.2 | ) |   |   | (1,180 | ) |   |   | (2.9 | ) |
| Total                                                                                                                                                                   |   | $      | 6,028  |   |            |   | 19.1   | %      |   | $ | 13,015 |   |   |   | 28.1 | % |   | $ | 11,144 |   |   |   | 26.7 | % |
| The      tax expense (benefit) applicable to securities gains for the years 2009,      2008, and 2007 was $639,000 , $(3,786,000), and $(1,185,000),      respectively. |   |

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| Deferred      tax assets and liabilities as of December 31, 2009 and 2008 consisted of      the following: |   |
|------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                       |   |
| (Dollars      in thousands)                                                                                |   | 2009 |   |   | 2008 |   |
| Deferred      tax assets:                                                                                  |   |   |   |   |   |   |
| Reserve      for loan and lease losses                                                                     |   | $ | 33,809 |   |   | $ | 30,583 |   |
| Accruals      for employee benefits                                                                        |   |   | 2,785 |   |   |   | 3,323 |   |
| Alternative      minimum tax                                                                               |   |   | 1,678 |   |   |   | - |   |
| Capital      loss carryover                                                                                |   |   | 459 |   |   |   | - |   |
| Securities      valuation reserve                                                                          |   |   | 82 |   |   |   | 6,368 |   |
| Other                                                                                                      |   |   | 1,770 |   |   |   | 521 |   |
| Total      deferred tax assets                                                                             |   |   | 40,583 |   |   |   | 40,795 |   |
| Deferred      tax liabilities:                                                                             |   |   |   |   |   |   |   |   |
| Differing      depreciable bases in premises and leased equipment                                          |   |   | 31,884 |   |   |   | 29,782 |   |
| Differing      bases in assets related to acquisitions                                                     |   |   | 3,242 |   |   |   | 2,783 |   |
| Net      unrealized gains on securities available-for-sale                                                 |   |   | 3,105 |   |   |   | 3,550 |   |
| Mortgage      servicing                                                                                    |   |   | 3,018 |   |   |   | 1,206 |   |
| Capitalized      loan costs                                                                                |   |   | 1,306 |   |   |   | 1,879 |   |
| Other                                                                                                      |   |   | 1,472 |   |   |   | 1,010 |   |
| Total      deferred tax liabilities                                                                        |   |   | 44,027 |   |   |   | 40,210 |   |
| Net      deferred tax (liability)/asset                                                                    |   | $ | (3,444 | ) |   | $ | 585 |   |

| (Dollars      in thousands)                                       |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance,      beginning of year                                   |   | $      | 7,601  |   |   | $      | 7,063  |   |   | $ | 5,795 |   |
| Additions      based on tax positions related to the current year |   |   | 409    |   |   |   | 1,271  |   |   |   | 1,268 |   |
| Additions      for tax positions of prior years                   |   |   | 771    |   |   |   | 693    |   |   |   | - |   |
| Reductions      for tax positions of prior years                  |   |   | (52    | )      |   |   | (136   | )      |   |   | - |   |
| Reductions      due to lapse in statute of limitations            |   |   | (837   | )      |   |   | (1,290 | )      |   |   | - |   |
| Settlements                                                       |   |   | (4,849 | )      |   |   | -      |   |   |   | - |   |
| Balance,      end of year                                         |   | $      | 3,043  |   |   | $      | 7,601  |   |   | $ | 7,063 |   |

----

Table of Contents

| Year      Ended December 31  (Dollars in      thousands) |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Gross      rental expense                                          |   | $      | 3,016  |   |   | $      | 3,116  |   |   | $ | 3,255 |   |
| Sublease      rental income                                        |   |   | (1,516 | )      |   |   | (1,523 | )      |   |   | (1,640 | ) |
| Net      rental expense                                            |   | $      | 1,500  |   |   | $      | 1,593  |   |   | $ | 1,615 |   |

| (Dollars      in thousands)       |             |    | Asset      derivatives   |                         | Liability      derivatives |                     |
|-----------------------------------|------------------|---------|--------------------------|------------------------------|----------------------------|--------------------------|
|                              | Notional      or |    | Statement      of        |                         |                       | Statement      of        |   |   |
|                              | contractual      |    | Financial      Condition | Fair                         |                       | Financial      Condition | Fair |   |
|                              | amount           |    | location                 | value                        |                       | location                 | value |   |
|                              |             |    |                     |                         |                       |                     |   |   |
| 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    |             |    |                     |                         | $                          | 14,004                   |   |   | $ | 13,988 |   |
|                              |             |    |                     |                         |                       |                     |   |   |   |   |   |
| Interest      rate swap contracts | $                | 421,283 |                     | Other      assets            | $                          | 22,663                   |   | Other      liabilities | $ | 23,003 |   |
| Loan      commitments             |             | 93,317  |                     | Mortgages      held for sale |                       | 1,582                    |   | N/A |   | - |   |
| Forward      contracts            |             | 97,555  |                     | N/A                          |                       | -                        |   | Mortgages      held for sale |   | 1,385 |   |
| Total      - December 31, 2008    |             |    |                     |                         | $                          | 24,245                   |   |   | $ | 24,388 |   |

----

Table of Contents

|                              |                         |   |             |   |   |   |   |   |   |   |
|-----------------------------------|------------------------------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|
|                              | Statement      of            |   | Gain      (loss) |   |
| (Dollars in thousands)       | Income      location         |   | 2009             |   |   | 2008   |   |   | 2007   |   |
|                              |                         |   |             |   |   |   |   |   |   |   |
| Interest      rate swap contracts | Other      expense           |   | $                | (431   | )      |   | $      | (271   | )      |   | $ | (69 | ) |
| Loan      commitments             | Mortgage      banking income |   |             | (1,505 | )      |   |   | 1,595  |   |   |   | 193 |   |
| Forward      contracts            | Mortgage      banking income |   |             | 1,796  |   |   |   | (1,131 | )      |   |   | (513 | ) |
| Total                             |                         |   | $                | (140   | )      |   | $      | 193    |   |   | $ | (389 | ) |

|                                           |   |   |    |   |     |   |   |                   |   |   |                   |   |   | To      Be Well        |   |
|------------------------------------------------|--------|--------|---------|--------|----------|--------|--------|------------------------|--------|--------|------------------------|--------|--------|------------------------|--------|
|                                           |   |   |    |   |     |   |   |                   |   |   |                   |   |   | Capitalized      Under |   |
|                                           |   |   |    |   |     |   |   | Minimum      Capital   |   |   | Prompt      Corrective |   |
|                                           |   | Actual |    |   | Adequacy |   |   | Action      Provisions |   |
| (Dollars      in thousands)                    |   | Amount |    |   | Ratio    |   |   | Amount                 |   |   | Ratio                  |   |   | Amount                 |   |   | Ratio |   |
| 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 | % |

----

Table of Contents

| (Dollars in thousands)                                             |   | Fair      value carrying amount |   |   | Aggregate      unpaid principal |   |   | Excess      of fair value carrying amount over (under) unpaid      principal |   |   |   |
|--------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|--------|
| 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 |   |                            | -      |   |                            |   | -      |                                                                              |   |   | -      |   |   |   |
| December      31, 2008                                        |   |                            |   |   |                            |   |   |                                                                              |   |   |   |   |   |   |
| Mortgages      held for sale reported at fair value:               |   |                            |   |   |                            |   |   |                                                                              |   |   |   |   |   |   |
|   Total      Loans                                       |   | $                               | 46,686 |   |                            | $      | 45,141 |                                                                              |   | $      | 1,545  |   | (1 | ) |
|   Nonaccrual      Loans                                  |   |                            | -      |   |                            |   | -      |                                                                              |   |   | -      |   |   |   |
|   Loans      90 days or more past due and still accruing |   |                            | -      |   |                            |   | -      |                                                                              |   |   | -      |   |   |   |

| ·   | 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 dealerquotes. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Marketable      equity (preferred) securities are primarily priced using available market      information through processes such as benchmark curves, benchmarking of      like securities, sector groupings and matrix  pricing. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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                             |   | $            | 20,052 |   |         | $      | 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 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 |   |
|                                                                           |   |         |   |   |         |   |    |         |   |   |   |   |   |   |   |   |
| Assets:                                                                        |   |         |   |   |         |   |    |         |   |   |   |   |   |   |   |   |
| Investment      securities available for sale:                                 |   |         |   |   |         |   |    |         |   |   |   |   |   |   |   |   |
| U.S.      Treasury and Federal agencies securities                             |   | $            | 81,621 |   |         | $      | 214,730 |         |   | $      | -      |   |   | $ | 296,351 |   |
| U.S.      States and political subdivisions securities                         |   |         | -      |   |         |   | 181,977 |         |   |   | 18,972 |   |   |   | 200,949 |   |
| Mortgage-backed      securities - Federal agencies                             |   |         | -      |   |         |   | 210,008 |         |   |   | -      |   |   |   | 210,008 |   |
| Corporate      debt securities                                                 |   |         | -      |   |         |   | 10,544  |         |   |   | -      |   |   |   | 10,544 |   |
| Foreign      government securities                                             |   |         | -      |   |         |   | -       |         |   |   | 435    |   |   |   | 435 |   |
| Total      debt securities                                                     |   |         | 81,621 |   |         |   | 617,259 |         |   |   | 19,407 |   |   |   | 718,287 |   |
| Marketable      equity securities                                              |   |         | 3,249  |   |         |   | 3,209   |         |   |   | 9      |   |   |   | 6,467 |   |
| Total      investment securities available for sale                            |   |         | 84,870 |   |         |   | 620,468 |         |   |   | 19,416 |   |   |   | 724,754 |   |
| Trading      account securities                                                |   |         | 100    |   |         |   | -       |         |   |   | -      |   |   |   | 100 |   |
| Mortgages      held for sale                                                   |   |         | -      |   |         |   | 46,686  |         |   |   | -      |   |   |   | 46,686 |   |
| Accrued      income and other liabilities (interest rate swap    agreements)   |   |         | -      |   |         |   | 22,663  |         |   |   | -      |   |   |   | 22,663 |   |
| Total      - December 31, 2008                                                 |   | $            | 84,970 |   |         | $      | 689,817 |         |   | $      | 19,416 |   |   | $ | 794,203 |   |
|                                                                           |   |         |   |   |         |   |    |         |   |   |   |   |   |   |   |   |
| Liabilities:                                                                   |   |         |   |   |         |   |    |         |   |   |   |   |   |   |   |   |
| Accrued      expenses and other liabilities (interest rate swap    agreements) |   | $            | -      |   |         | $      | 23,003  |         |   | $      | -      |   |   | $ | 23,003 |   |
| Total      - December 31, 2008                                                 |   | $            | -      |   |         | $      | 23,003  |         |   | $      | -      |   |   | $ | 23,003 |   |

----

Table of Contents

| (Dollars      in thousands)                       |   | U.S.      States and political subdivisions securities |    |   | Foreign      government securities |   |   | Marketable      equity securities |   |   | Other      investments |   |   | Investment      securities available-for-sale |   |
|---------------------------------------------------|--------|--------------------------------------------------------|---------|--------|------------------------------------|--------|--------|-----------------------------------|--------|--------|------------------------|--------|--------|-----------------------------------------------|--------|
| Beginning      balance January 1, 2009            |   | $                                                      | 18,972  |   |                               | $      | 435    |                              |   | $      | 9                      |   |   | $                                             | -      |   |   | $ | 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                                       |   |                                                   | -       |   |                               |   | -      |                              |   |   | -                      |   |   |                                          | -      |   |   |   | - |   |
| Expirations                                       |   |                                                   | (21,140 | )      |                               |   | (160   | )                                 |   |   | -                      |   |   |                                          | -      |   |   |   | (21,300 | ) |
| Transfers      in and/or out of Level 3           |   |                                                   | -       |   |                               |   | -      |                              |   |   | -                      |   |   |                                          | -      |   |   |   | - |   |
| Ending      balance December 31, 2009             |   | $                                                      | 18,310  |   |                               | $      | 675    |                              |   | $      | 9                      |   |   | $                                             | -      |   |   | $ | 18,994 |   |
|                                              |   |                                                   |    |   |                               |   |   |                              |   |   |                   |   |   |                                          |   |   |   |   |   |   |
| Beginning      balance January 1, 2008            |   | $                                                      | 37,342  |   |                               | $      | 665    |                              |   | $      | 2,562                  |   |   | $                                             | 1,643  |   |   | $ | 42,212 |   |
| Total      gains or losses (realized/unrealized): |   |                                                   |    |   |                               |   |   |                              |   |   |                   |   |   |                                          |   |   |   |   |   |   |
| Included      in earnings                         |   |                                                   | (42     | )      |                               |   | -      |                              |   |   | 789                    |   |   |                                          | -      |   |   |   | 747 |   |
| Included      in other comprehensive income       |   |                                                   | (589    | )      |                               |   | -      |                              |   |   | (773                   | )      |   |                                          | -      |   |   |   | (1,362 | ) |
| Purchases      and issuances                      |   |                                                   | 24,714  |   |                               |   | -      |                              |   |   | -                      |   |   |                                          | -      |   |   |   | 24,714 |   |
| Settlements                                       |   |                                                   | -       |   |                               |   | -      |                              |   |   | -                      |   |   |                                          | -      |   |   |   | - |   |
| Expirations                                       |   |                                                   | (47,199 | )      |                               |   | (230   | )                                 |   |   | (2,569                 | )      |   |                                          | -      |   |   |   | (49,998 | ) |
| Transfers      in and/or out of Level 3           |   |                                                   | 4,746   |   |                               |   | -      |                              |   |   | -                      |   |   |                                          | (1,643 | ) |   |   | 3,103 |   |
| Ending      balance December 31, 2008             |   | $                                                      | 18,972  |   |                               | $      | 435    |                              |   | $      | 9                      |   |   | $                                             | -      |   |   | $ | 19,416 |   |

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| (Dollars      in thousands)                                                         |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total   |   |
|-------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|---------|--------|
| December 31, 2009                                                              |   |         |   |   |         |   |   |         |   |   |    |   |
| Loans                                                                               |   | $            | -      |   |         | $      | -      |         |   | $      | 80,537  |   |   | $ | 80,537 |   |
| Accrued      income and other assets (venture capital partnership      investments) |   |         | -      |   |         |   | -      |         |   |   | 2,662   |   |   |   | 2,662 |   |
| Accrued      income and other assets (mortgage servicing rights)                    |   |         | -      |   |         |   | -      |         |   |   | 8,748   |   |   |   | 8,748 |   |
| Goodwill      and intangible assets (goodwill)                                      |   |         | -      |   |         |   | 83,329 |         |   |   | -       |   |   |   | 83,329 |   |
| Accrued      income and other assets (repossessions)                                |   |         | -      |   |         |   | -      |         |   |   | 10,165  |   |   |   | 10,165 |   |
| Accrued      income and other assets (other real estate)                            |   |         | -      |   |         |   | -      |         |   |   | 6,529   |   |   |   | 6,529 |   |
| Total                                                                               |   | $            | -      |   |         | $      | 83,329 |         |   | $      | 108,641 |   |   | $ | 191,970 |   |
| December      31, 2008                                                         |   |         |   |   |         |   |   |         |   |   |    |   |   |   |   |   |
| Loans                                                                               |   | $            | -      |   |         | $      | -      |         |   | $      | 30,941  |   |   | $ | 30,941 |   |
| Accrued      income and other assets (venture capital partnership      investments) |   |         | -      |   |         |   | -      |         |   |   | 2,253   |   |   |   | 2,253 |   |
| Accrued      income and other assets (mortgage servicing rights)                    |   |         | -      |   |         |   | -      |         |   |   | 4,715   |   |   |   | 4,715 |   |
| Total                                                                               |   | $            | -      |   |         | $      | -      |         |   | $      | 37,909  |   |   | $ | 37,909 |   |

|                                                                                                                 |   | 2009                |      |   | 2008            |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|-----------------|--------|
|                                                                                                                 |   | Carrying      or    |      |   |            |   |   | Carrying      or |   |   |   |   |
| (Dollars      in thousands)                                                                                          |   | Contract      Value |      |   | Fair      Value |   |   | Contract      Value |   |   | Fair      Value |   |
| Assets:                                                                                                              |   |                |      |   |            |   |   |   |   |   |   |   |
| Cash      and due from banks                                                                                         |   | $                   | 72,872    |   |            | $      | 72,872 |   |   | $ | 119,771 |   |   | $ | 119,771 |   |
| Federal      funds sold and interest bearing deposits with other banks                                               |   |                | 141,166   |   |            |   | 141,166 |   |   |   | 6,951 |   |   |   | 6,951 |   |
| Investment      securities, available-for-sale                                                                       |   |                | 901,638   |   |            |   | 901,638 |   |   |   | 724,754 |   |   |   | 724,754 |   |
| Other      investments and trading account securities                                                                |   |                | 21,137    |   |            |   | 21,137 |   |   |   | 18,712 |   |   |   | 18,712 |   |
| Mortgages      held for sale                                                                                         |   |                | 26,649    |   |            |   | 26,649 |   |   |   | 46,686 |   |   |   | 46,686 |   |
| Loans      and leases, net of reserve for loan and lease losses                                                      |   |                | 3,004,914 |   |            |   | 3,042,251 |   |   |   | 3,218,436 |   |   |   | 3,239,567 |   |
| Cash      surrender value of life insurance policies                                                                 |   |                | 51,342    |   |            |   | 51,342 |   |   |   | 38,837 |   |   |   | 38,837 |   |
| Mortgage      servicing rights                                                                                       |   |                | 8,748     |   |            |   | 10,180 |   |   |   | 4,635 |   |   |   | 4,715 |   |
| Interest      rate swaps                                                                                             |   |                | 13,516    |   |            |   | 13,516 |   |   |   | 22,663 |   |   |   | 22,663 |   |
| Liabilities:                                                                                                         |   |                |      |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                             |   | $                   | 3,652,464 |   |            | $      | 3,692,203 |   |   | $ | 3,514,542 |   |   | $ | 3,486,609 |   |
| Short-term      borrowings                                                                                           |   |                | 150,110   |   |            |   | 150,110 |   |   |   | 296,175 |   |   |   | 296,175 |   |
| Long-term      debt and mandatorily redeemable securities                                                            |   |                | 19,761    |   |            |   | 19,831 |   |   |   | 29,832 |   |   |   | 29,674 |   |
| Subordinated      notes                                                                                              |   |                | 89,692    |   |            |   | 81,118 |   |   |   | 89,692 |   |   |   | 73,972 |   |
| Interest      rate swaps                                                                                             |   |                | 13,988    |   |            |   | 13,988 |   |   |   | 23,003 |   |   |   | 23,003 |   |
| Off-balance-sheet      instruments *                                                                                 |   |                | -         |   |            |   | 150 |   |   |   | - |   |   |   | 297 |   |
| *      Represents estimated cash outflows required to currently settle the      obligations at current market rates. |   |

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| STATEMENTS      OF FINANCIAL CONDITION                                                      |   |   |    |   |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                        |   |   |    |   |   |   |
| December      31 (Dollars in      thousands)                                                |   | 2009   |    |   | 2008   |   |
| ASSETS                                                                                      |   |   |    |   |   |   |
| Cash                                                                                        |   | $      | 1       |   |   | $      | 2 |   |
| Short-term      investments with bank subsidiary                                            |   |   | 45,695  |   |   |   | 15,368 |   |
| Investment      securities, available-for-sale                                              |   |   |    |   |   |   |   |   |
| (amortized      cost of $6,175 and $4,742 at December 31, 2009 and 2008,      respectively) |   |   | 7,581   |   |   |   | 6,811 |   |
| Trading      account securities                                                             |   |   | 125     |   |   |   | 100 |   |
| Investments      in:                                                                        |   |   |    |   |   |   |   |   |
| Bank      subsidiaries                                                                      |   |   | 621,265 |   |   |   | 534,586 |   |
| Non-bank      subsidiaries                                                                  |   |   | 2,396   |   |   |   | 3,091 |   |
| Premises      and equipment, net                                                            |   |   | 2,240   |   |   |   | 2,264 |   |
| Other      assets                                                                           |   |   | 7,124   |   |   |   | 6,803 |   |
| Total      assets                                                                           |   | $      | 686,427 |   |   | $      | 569,025 |   |
| LIABILITIES AND SHAREHOLDERS’      EQUITY                                             |   |   |    |   |   |   |   |   |
| Commercial      paper borrowings                                                            |   | $      | 5,113   |   |   | $      | 5,344 |   |
| Other      liabilities                                                                      |   |   | 2,518   |   |   |   | 1,739 |   |
| Long-term      debt and mandatorily redeemable securities                                   |   |   | 108,476 |   |   |   | 108,278 |   |
| Total      liabilities                                                                      |   |   | 116,107 |   |   |   | 115,361 |   |
| Shareholders’      equity                                                             |   |   | 570,320 |   |   |   | 453,664 |   |
| Total      liabilities and shareholders’ equity                                       |   | $      | 686,427 |   |   | $      | 569,025 |   |

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| STATEMENTS      OF INCOME                                                                                                |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                     |   |
| Year      Ended December 31 (Dollars in      thousands)                                                                  |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Income:                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Dividends      from bank and non-bank subsidiaries                                                                       |   | $ | 23,104 |   |   | $ | 17,468 |   |   | $ | 58,051 |   |
| Rental      income from subsidiaries                                                                                     |   |   | 2,391 |   |   |   | 2,412 |   |   |   | 2,442 |   |
| Other                                                                                                                    |   |   | 507 |   |   |   | 994 |   |   |   | 2,077 |   |
| Investment      securities and other investment (losses) gains                                                           |   |   | (426 | ) |   |   | (1,053 | ) |   |   | 3 |   |
| Total      income                                                                                                        |   |   | 25,576 |   |   |   | 19,821 |   |   |   | 62,573 |   |
| Expenses:                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on long-term debt and mandatorily redeemable securities                                                    |   |   | 7,477 |   |   |   | 7,773 |   |   |   | 7,294 |   |
| Interest      on commercial paper and other short-term borrowings                                                        |   |   | 16 |   |   |   | 209 |   |   |   | 639 |   |
| Rent      expense                                                                                                        |   |   | 1,090 |   |   |   | 1,060 |   |   |   | 1,057 |   |
| Other                                                                                                                    |   |   | 1,339 |   |   |   | 1,850 |   |   |   | 1,572 |   |
| Total      expenses                                                                                                      |   |   | 9,922 |   |   |   | 10,892 |   |   |   | 10,562 |   |
| Income      before income tax benefit and equity in undistributed (distributed in      excess of) income of subsidiaries |   |   | 15,654 |   |   |   | 8,929 |   |   |   | 52,011 |   |
| Income      tax benefit                                                                                                  |   |   | 2,899 |   |   |   | 3,308 |   |   |   | 2,380 |   |
| Income      before equity in undistributed (distributed in excess of) income of      subsidiaries                        |   |   | 18,553 |   |   |   | 12,237 |   |   |   | 54,391 |   |
| Equity      in undistributed (distributed in excess of) income of      subsidiaries:                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      subsidiaries                                                                                                   |   |   | 6,996 |   |   |   | 21,235 |   |   |   | (23,028 | ) |
| Non-bank      subsidiaries                                                                                               |   |   | (59 | ) |   |   | (86 | ) |   |   | (824 | ) |
| Net      income                                                                                                          |   | $ | 25,490 |   |   | $ | 33,386 |   |   | $ | 30,539 |   |

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| STATEMENTS      OF CASH FLOW                                                                |   |   |     |   |   |   |    |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|---------|--------|--------|
|                                                                                        |   |   |     |   |   |   |    |   |   |
| Year      Ended December 31  (Dollars in      thousands)                          |   | 2009   |     |   | 2008   |   |    | 2007   |   |
| Operating      activities:                                                                  |   |   |     |   |   |   |    |   |   |
| Net      income                                                                             |   | $      | 25,490   |   |   | $      | 33,386  |   |   | $ | 30,539 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |     |   |   |   |    |   |   |   |   |   |
| Equity      (undistributed) distributed in excess of income of      subsidiaries            |   |   | (6,937   | )      |   |   | (21,149 | )      |   |   | 23,852 |   |
| Depreciation      of premises and equipment                                                 |   |   | 428      |   |   |   | 377     |   |   |   | 316 |   |
| Realized      and unrealized investment securities losses (gains)                           |   |   | 426      |   |   |   | 1,053   |   |   |   | (3 | ) |
| Change      in trading account securities                                                   |   |   | (25      | )      |   |   | (100    | )      |   |   | - |   |
| Other                                                                                       |   |   | 919      |   |   |   | 2,732   |   |   |   | (629 | ) |
| Net      change in operating activities                                                     |   |   | 20,301   |   |   |   | 16,299  |   |   |   | 54,075 |   |
| Investing      activities:                                                                  |   |   |     |   |   |   |    |   |   |   |   |   |
| Proceeds      from sales and maturities of investment securities                            |   |   | 46,294   |   |   |   | 2,879   |   |   |   | 18,752 |   |
| Purchases      of investment securities                                                     |   |   | (48,513  | )      |   |   | -       |   |   |   | (10,499 | ) |
| Net      change in premises and equipment                                                   |   |   | (404     | )      |   |   | (405    | )      |   |   | (410 | ) |
| Change      in short-term investments with bank subsidiary                                  |   |   | (30,327  | )      |   |   | (4,148  | )      |   |   | 3,222 |   |
| Change      in loans made to subsidiaries, net                                              |   |   | -        |   |   |   | -       |   |   |   | 3,030 |   |
| Capital      contributions to subsidiaries                                                  |   |   | (80,000  | )      |   |   | -       |   |   |   | - |   |
| Return      of capital from subsidiaries                                                    |   |   | 636      |   |   |   | 5,950   |   |   |   | 5,106 |   |
| Cash      paid for acquisition, net                                                         |   |   | -        |   |   |   | -       |   |   |   | (78,348 | ) |
| Net      change in investing activities                                                     |   |   | (112,314 | )      |   |   | 4,276   |   |   |   | (59,147 | ) |
| Financing      activities:                                                                  |   |   |     |   |   |   |    |   |   |   |   |   |
| Net      change in commercial paper                                                         |   |   | (231     | )      |   |   | (6,131  | )      |   |   | 3 |   |
| Proceeds      from issuance of subordinated notes                                           |   |   | -        |   |   |   | -       |   |   |   | 58,764 |   |
| Payments      on subordinated notes                                                         |   |   | -        |   |   |   | (10,310 | )      |   |   | (17,784 | ) |
| Proceeds      from issuance of long-term debt                                               |   |   | 153      |   |   |   | 10,000  |   |   |   | - |   |
| Payments      on long-term debt                                                             |   |   | (252     | )      |   |   | (252    | )      |   |   | (10,259 | ) |
| Net      proceeds from issuance of treasury stock                                           |   |   | 1,663    |   |   |   | 341     |   |   |   | 545 |   |
| Proceeds      from issuance of preferred stock and common stock warrants                    |   |   | 111,000  |   |   |   | -       |   |   |   | - |   |
| Acquisition      of treasury stock                                                          |   |   | (1,299   | )      |   |   | -       |   |   |   | (12,821 | ) |
| Cash      dividends paid on preferred stock                                                 |   |   | (4,502   | )      |   |   |    |   |   |   |   |   |
| Cash      dividends paid on common stock                                                    |   |   | (14,520  | )      |   |   | (14,253 | )      |   |   | (13,345 | ) |
| Net      change in financing activities                                                     |   |   | 92,012   |   |   |   | (20,605 | )      |   |   | 5,103 |   |
| Net      change in cash and cash equivalents                                                |   |   | (1       | )      |   |   | (30     | )      |   |   | 31 |   |
| Cash      and cash equivalents, beginning of year                                           |   |   | 2        |   |   |   | 32      |   |   |   | 1 |   |
| Cash      and cash equivalents, end of year                                                 |   | $      | 1        |   |   | $      | 2       |   |   | $ | 32 |   |

Item 9. 

Item 9A. 

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Item 9B. 

Item 10. 

Item 11. 

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                                                                                                               |   | 64,255                          |   |   |                      |        18.29 |   |                          |   |  2,119,922                            |   |   |   |
| 1997      employee stock purchase plan                                                                                                    |   | 27,639                          |   |   |                      |        19.34 |   |                          |   |          150,160            |   |   |   |
| 1982      executive incentive plan                                                                                                        |   | -                               |   |   |                      |        -     |   |                          |   |            96,230 |   | (1 | )(2) |
| 1982      restricted stock award plan                                                                                                     |   | -                               |   |   |                      |        -     |   |                          |   |          131,965            |   | (1 | ) |
| Total      plans approved by shareholders                                                                                                 |   | 99,402                          |   |   |                      | $18.51            |   |                          |   | 2,498,277                                  |   |   |   |
| Equity      compensation plans                                                                                                            |   |                            |   |   |                      |              |   |                          |   |                                       |   |   |   |
| not      approved by shareholders                                                                                                         |   | -                               |   |   |                      |        -     |   |                          |   | -                                          |   |   |   |
| Total      equity compensation plans                                                                                                      |   | 99,402                          |   |   |                      | $18.51            |   |                          |   | 2,498,277                                  |   |   |   |
| (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             |   |                            |   |

Item 13. 

Item 14.  

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Item 15.

| 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.                                                                                                                                                                        |
| 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)(4) | 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)(6) | 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 January 17,      2003, and filed as exhibit to Form 10-K, dated December 31, 2003, 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(g)(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(g)(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(h)    | 1st      Source Corporation 1998 Performance Compensation Plan, dated February 19,      1998, filed as exhibit to Form 10-K, dated December 31, 1998, and      incorporated herein by reference.                                                                                                                                    |
| 10(j)    | 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(k)    | Letter      Agreement dated January 23, 2009 by and between 1st Source Corporation and      the United States Department of the Treasury,  including the      Securites Purchase Agreement – Standard Terms, filed as exhibit to Form      8-K, dated January 23, 2009, and incorporated herein by      reference.  |
| 10(l)    | 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.                                                                                                                                                        |

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| 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                                                                                                                                                                                        | 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 (Rule13a-14(a)).                                                                                                                               |
| 32.1   | Certification      of Christopher J. Murphy III, Chief Executive Officer.                                                                                                                                      |
| 32.2   | Certification      of Larry E. Lentych, Chief Financial Officer.                                                                                                                                               |
| 99.1   | First      fiscal year certification of the Principal Executive Officer pursuant to      Section 111(b) of the Emergency Economic Stabilization Act of 2008 for the      fiscal year ended December 31, 2009.  |
| 99.2   | First      fiscal year certification of the Principal Financial Officer pursuant to      Section 111(b) of the Emergency Economic Stabilization Act of 2008 for the      fiscal year ended December 31,2009.        |

Signatures

| Signature                          | Title                                                                    | Date                   |
|------------------------------------|--------------------------------------------------------------------------|------------------------|
|                               |                                                                     |                   |
| /s/      CHRISTOPHER J. MURPHY III | Chairman      of the Board, President and Chief Executive Officer        | February      19, 2010 |
| Christopher      J. Murphy III     |                                                                     |                   |
|                               |                                                                     |                   |
| /s/      WELLINGTON D. JONES III   | Executive      Vice President and Director                               | February      19, 2010 |
| Wellington      D. Jones III       |                                                                     |                   |
|                               |                                                                     |                   |
| /s/      LARRY E. LENTYCH          | Treasurer,      Chief Financial Officer and Principle Accounting Officer | February      19, 2010 |
| Larry      E. Lentych              |                                                                     |                   |
|                               |                                                                     |                   |
| /s/      JOHN B. GRIFFITH          | Secretary      and General Counsel                                       | February      19, 2010 |
| John      B. Griffith              |                                                                     |                   |
|                               |                                                                     |                   |
| /s/      DANIEL B. FITZPATRICK     | Director                                                                 | February      19, 2010 |
| Daniel      B. Fitzpatrick         |                                                                     |                   |
|                               |                                                                     |                   |
| /s/      TERRY L. GERBER           | Director                                                                 | February      19, 2010 |
| Terry      L. Gerber               |                                                                     |                   |
|                               |                                                                     |                   |
| /s/      LAWRENCE E. HILER         | Director                                                                 | February      19, 2010 |
| Lawrence      E. Hiler             |                                                                     |                   |
|                               |                                                                     |                   |
| /s/      WILLIAM P. JOHNSON        | Director                                                                 | February      19, 2010 |
| William      P. Johnson            |                                                                     |                   |

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Table of Contents

|                     |     |                   |
|--------------------------|----------|------------------------|
| /s/      CRAIG A. KAPSON | Director | February      19, 2010 |
| Craig      A. Kapson     |     |                   |
|                       |     |                   |
|----------------------------|----------|------------------------|
| /s/      REX MARTIN        | Director | February      19, 2010 |
| Rex      Martin            |     |                   |
|                       |     |                   |
| /s/      DANE A. MILLER    | Director | February      19, 2010 |
| Dane      A. Miller        |     |                   |
|                       |     |                   |
| /s/      TIMOTHY K. OZARK  | Director | February      19, 2010 |
| Timothy      K. Ozark      |     |                   |
|                       |     |                   |
| /s/      JOHN T. PHAIR     | Director | February      19, 2010 |
| John      T. Phair         |     |                   |
|                       |     |                   |
| /s/      MARK D. SCHWABERO | Director | February      19, 2010 |
| Mark      D. Schwabero     |     |                   |
|                       |     |                   |

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