----

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| Missouri                                         | 43-1265338                           |
|--------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.) |
| organization)                                    |                                 |

| 13001 Hollenberg Drive                   |       |
|------------------------------------------|------------|
| Bridgeton, Missouri                      | 63044      |
| (Address of principal executive offices) | (Zip Code) |

| (314) 506-5500                                                   |
|------------------------------------------------------------------|
|  (Registrant’s telephone number, including area code) |

----

| (Check one)   | Large Accelerated Filer  ̈ | Accelerated Filer x              |
|-------------------------|--------------------------------|----------------------------------|
|                    |                           |                             |
|                    | Non-Accelerated Filer  ̈   | Smaller Reporting Company  ̈ |

----

| PART I – Financial Information                          |                                                              |
|---------------------------------------------------------------|-------------------------------------------------------------------|
|                                                          |                                                              |   |
| Item 1.                                                       | FINANCIAL STATEMENTS                                              | 3 |
|                                                          |                                                              |   |
|                                                          | Consolidated Balance Sheets                                       |   |
|                                                          | March 31, 2011 (unaudited) and December 31, 2010                  | 3 |
|                                                          |                                                              |   |
|                                                          | Consolidated Statements of Income                                 |   |
|                                                          | Three months ended March 31, 2011 and 2010 (unaudited)            | 4 |
|                                                          |                                                              |   |
|                                                          | Consolidated Statements of Cash Flows                             |   |
|                                                          | Three months ended March 31, 2011 and 2010 (unaudited)            | 5 |
|                                                          |                                                              |   |
|                                                          | Notes to Consolidated Financial Statements (unaudited)            | 6 |
|                                                          |                                                              |   |
| Item 2.                                                       | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION |   |
|                                                          | AND RESULTS OF OPERATIONS                                         | 15 |
|                                                          |                                                              |   |
| Item 3.                                                       | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK        | 23 |
|                                                          |                                                              |   |
| Item 4.                                                       | CONTROLS AND PROCEDURES                                           | 23 |
|                                                          |                                                              |   |
| PART II – Other Information – Items 1. – 6. | 24                                                                |
|                                                          |                                                              |   |
| SIGNATURES                                                    |                                                              | 25 |

----

| PART I. | FINANCIAL INFORMATION |
|---------|-----------------------|

| ITEM 1. | FINANCIAL STATEMENTS |
|---------|----------------------|

|                                                                                                          |   | March 31,2011(Unaudited) |      |   | December 31,2010 |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-----------|--------|-----------------------|--------|
| Assets                                                                                                        |   |                          |      |   |                  |   |
| Cash and due from banks                                                                                       |   | $                             | 11,541    |   |                  | $      | 12,277 |   |
| Interest-bearing deposits in other financial institutions                                                     |   |                          | 26,490    |   |                  |   | 67,299 |   |
| Federal funds sold and other short-term investments                                                           |   |                          | 100,626   |   |                  |   | 59,353 |   |
| Cash and cash equivalents                                                                                     |   |                          | 138,657   |   |                  |   | 138,929 |   |
| Securities available-for-sale, at fair value                                                                  |   |                          | 268,365   |   |                  |   | 264,569 |   |
| Loans                                                                                                         |   |                          | 709,622   |   |                  |   | 708,633 |   |
| Less: Allowance for loan losses                                                                               |   |                          | 12,377    |   |                  |   | 11,891 |   |
| Loans, net                                                                                                    |   |                          | 697,245   |   |                  |   | 696,742 |   |
| Premises and equipment, net                                                                                   |   |                          | 9,598     |   |                  |   | 9,617 |   |
| Investments in bank-owned life insurance                                                                      |   |                          | 14,324    |   |                  |   | 14,191 |   |
| Payments in excess of funding                                                                                 |   |                          | 41,540    |   |                  |   | 33,609 |   |
| Goodwill                                                                                                      |   |                          | 7,471     |   |                  |   | 7,471 |   |
| Other intangible assets, net                                                                                  |   |                          | 241       |   |                  |   | 268 |   |
| Other assets                                                                                                  |   |                          | 22,579    |   |                  |   | 22,639 |   |
| Total assets                                                                                                  |   | $                             | 1,200,020 |   |                  | $      | 1,188,035 |   |
|                                                                                                          |   |                          |      |   |                  |   |   |   |
| Liabilities and Shareholders’ Equity                                                                    |   |                          |      |   |                  |   |   |   |
| Liabilities:                                                                                                  |   |                          |      |   |                  |   |   |   |
| Deposits                                                                                                      |   |                          |      |   |                  |   |   |   |
| Noninterest-bearing                                                                                           |   | $                             | 126,379   |   |                  | $      | 113,097 |   |
| Interest-bearing                                                                                              |   |                          | 399,269   |   |                  |   | 405,493 |   |
| Total deposits                                                                                                |   |                          | 525,648   |   |                  |   | 518,590 |   |
| Accounts and drafts payable                                                                                   |   |                          | 514,155   |   |                  |   | 516,107 |   |
| Other liabilities                                                                                             |   |                          | 12,869    |   |                  |   | 11,244 |   |
| Total liabilities                                                                                             |   |                          | 1,052,672 |   |                  |   | 1,045,941 |   |
|                                                                                                          |   |                          |      |   |                  |   |   |   |
| Shareholders’ Equity:                                                                                   |   |                          |      |   |                  |   |   |   |
| Preferred stock, par value $.50 per share; 2,000,000                                                          |   |                          |      |   |                  |   |   |   |
| shares authorized and no shares issued                                                                        |   | —                       |      |   | —               |   |
| Common stock, par value $.50 per share; 20,000,000                                                            |   |                          |      |   |                  |   |   |   |
| shares authorized and 9,949,324 shares issued at                                                              |   |                          |      |   |                  |   |   |   |
| March 31, 2011 and December 31, 2010                                                                          |   |                          | 4,975     |   |                  |   | 4,975 |   |
| Additional paid-in capital                                                                                    |   |                          | 46,496    |   |                  |   | 46,653 |   |
| Retained earnings                                                                                             |   |                          | 111,477   |   |                  |   | 107,263 |   |
| Common shares in treasury, at cost (541,054 shares at March 31, 2011 and 561,533 shares at December 31, 2010) |   |                          | (13,155   | )      |                  |   | (13,549 | ) |
| Accumulated other comprehensive loss                                                                          |   |                          | (2,445    | )      |                  |   | (3,248 | ) |
| Total shareholders’ equity                                                                              |   |                          | 147,348   |   |                  |   | 142,094 |   |
| Total liabilities and shareholders’ equity                                                              |   | $                             | 1,200,020 |   |                  | $      | 1,188,035 |   |

----

|                                                            |   | Three Months EndedMarch 31, |   |
|-----------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                            |   | 2011                                       |   |   | 2010 |   |
| Fee Revenue and Other Income:                                   |   |                                       |   |   |   |   |
| Information services payment and processing revenue             |   | $                                          | 14,347 |   |   | $ | 12,745 |   |
| Bank service fees                                               |   |                                       | 352    |   |   |   | 341 |   |
| Other                                                           |   |                                       | 133    |   |   |   | 139 |   |
| Total fee revenue and other income                              |   |                                       | 14,832 |   |   |   | 13,225 |   |
|                                                            |   |                                       |   |   |   |   |   |   |
| Interest Income:                                                |   |                                       |   |   |   |   |   |   |
| Interest and fees on loans                                      |   |                                       | 10,253 |   |   |   | 9,427 |   |
| Interest and dividends on securities:                           |   |                                       |   |   |   |   |   |   |
| Taxable                                                         |   |                                       | 5      |   |   |   | 14 |   |
| Exempt from federal income taxes                                |   |                                       | 2,477  |   |   |   | 2,098 |   |
| Interest on federal funds sold and other short-term investments |   |                                       | 169    |   |   |   | 89 |   |
| Total interest income                                           |   |                                       | 12,904 |   |   |   | 11,628 |   |
|                                                            |   |                                       |   |   |   |   |   |   |
| Interest Expense:                                               |   |                                       |   |   |   |   |   |   |
| Interest on deposits                                            |   |                                       | 1,206  |   |   |   | 1,176 |   |
| Total interest expense                                          |   |                                       | 1,206  |   |   |   | 1,176 |   |
| Net interest income                                             |   |                                       | 11,698 |   |   |   | 10,452 |   |
| Provision for loan losses                                       |   |                                       | 450    |   |   |   | 900 |   |
| Net interest income after provision for loan losses             |   |                                       | 11,248 |   |   |   | 9,552 |   |
| Total net revenue                                               |   |                                       | 26,080 |   |   |   | 22,777 |   |
|                                                            |   |                                       |   |   |   |   |   |   |
| Operating Expense:                                              |   |                                       |   |   |   |   |   |   |
| Salaries and employee benefits                                  |   |                                       | 13,706 |   |   |   | 12,490 |   |
| Occupancy                                                       |   |                                       | 648    |   |   |   | 572 |   |
| Equipment                                                       |   |                                       | 847    |   |   |   | 898 |   |
| Amortization of intangible assets                               |   |                                       | 27     |   |   |   | 27 |   |
| Other operating                                                 |   |                                       | 2,906  |   |   |   | 2,210 |   |
| Total operating expense                                         |   |                                       | 18,134 |   |   |   | 16,197 |   |
| Income before income tax expense                                |   |                                       | 7,946  |   |   |   | 6,580 |   |
| Income tax expense                                              |   |                                       | 2,227  |   |   |   | 1,831 |   |
| Net Income                                                      |   | $                                          | 5,719  |   |   | $ | 4,749 |   |
|                                                            |   |                                       |   |   |   |   |   |   |
| Basic Earnings Per Share                                        |   | $                                          | .61    |   |   | $ | .51 |   |
| Diluted Earnings Per Share                                      |   |                                       | .60    |   |   |   | .50 |   |

----

|                                                                              |   | Three Months EndedMarch 31, |    |
|-----------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                              |   | 2011                        |    |   | 2010 |   |
| Cash Flows From Operating Activities:                                             |   |                        |    |   |   |   |
| Net income                                                                        |   | $                           | 5,719   |   |   | $ | 4,749 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                        |    |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                        | 1,091   |   |   |   | 1,031 |   |
| Provision for loan losses                                                         |   |                        | 450     |   |   |   | 900 |   |
| Stock-based compensation expense                                                  |   |                        | 350     |   |   |   | 392 |   |
| Increase (decrease) in income tax liability                                       |   |                        | 1,868   |   |   |   | (649 | ) |
| Increase in pension liability                                                     |   |                        | 60      |   |   |   | 198 |   |
| Other operating activities, net                                                   |   |                        | (808    | ) |   |   | (387 | ) |
| Net cash provided by operating activities                                         |   |                        | 8,730   |   |   |   | 6,234 |   |
|                                                                              |   |                        |    |   |   |   |   |   |
| Cash Flows From Investing Activities:                                             |   |                        |    |   |   |   |   |   |
| Proceeds from sales of securities available-for-sale                              |   |                        | 501     |   |   | – |   |
| Proceeds from maturities of securities available-for-sale                         |   |                        | 5,385   |   |   | – |   |
| Purchase of securities available-for-sale                                         |   |                        | (9,027  | ) |   | – |   |
| Net increase in loans                                                             |   |                        | (953    | ) |   |   | (23,052 | ) |
| Increase in payments in excess of funding                                         |   |                        | (7,931  | ) |   |   | (5,512 | ) |
| Purchases of premises and equipment, net                                          |   |                        | (465    | ) |   |   | (207 | ) |
| Net cash used in investing activities                                             |   |                        | (12,490 | ) |   |   | (28,771 | ) |
|                                                                              |   |                        |    |   |   |   |   |   |
| Cash Flows From Financing Activities:                                             |   |                        |    |   |   |   |   |   |
| Net increase in noninterest-bearing demand deposits                               |   |                        | 13,282  |   |   |   | 3,168 |   |
| Net decrease in interest-bearing demand and savings deposits                      |   |                        | (8,170  | ) |   |   | (22,573 | ) |
| Net increase in time deposits                                                     |   |                        | 1,946   |   |   |   | 25,468 |   |
| Net (decrease) increase in accounts and drafts payable                            |   |                        | (1,952  | ) |   |   | 49,528 |   |
| Cash dividends paid                                                               |   |                        | (1,505  | ) |   |   | (1,315 | ) |
| Distribution of  stock awards, net                                      |   |                        | (113    | ) |   |   | (251 | ) |
| Other financing activities, net                                                   |   | ─                     |    |   |   | 12 |   |
| Net cash provided by financing activities                                         |   |                        | 3,488   |   |   |   | 54,037 |   |
| Net (decrease) increase in cash and cash equivalents                              |   |                        | (272    | ) |   |   | 31,500 |   |
| Cash and cash equivalents at beginning of period                                  |   |                        | 138,929 |   |   |   | 79,294 |   |
| Cash and cash equivalents at end of period                                        |   | $                           | 138,657 |   |   | $ | 110,794 |   |
|                                                                              |   |                        |    |   |   |   |   |   |
| Supplemental information:                                                         |   |                        |    |   |   |   |   |   |
| Cash paid for interest                                                            |   | $                           | 1,186   |   |   | $ | 1,125 |   |
| Cash paid for income taxes                                                        |   |                        | 365     |   |   |   | 2,501 |   |

----

|                              |   | March 31, 2011  |   |   | December 31, 2010 |   |
|-----------------------------------|--------|---------------------------|--------|--------|-----------------------------|--------|
| (In thousands)               |   | Gross CarryingAmount |   |   | AccumulatedAmortization     |   |   | Gross CarryingAmount |   |   | AccumulatedAmortization |   |
| Assets eligible for amortization: |   |                      |   |   |                        |   |   |   |   |   |   |   |
| Customer List                     |   |                      | 750    |   |                        |   | (509 | ) |   |   | 750 |   |   |   | (482 | ) |
| Unamortized intangible assets:    |   |                      |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                          |   |                      | 7,698  |   |                        |   | (227 | ) |   |   | 7,698 |   |   |   | (227 | ) |
| Total intangible assets           |   | $                         | 8,448  |   |                        | $      | (736 | ) |   | $ | 8,448 |   |   | $ | (709 | ) |

|                                                                               |   | Three Months EndedMarch 31, |      |
|------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
| (In thousands, except share and per share data) |   | 2011                                       |      |   | 2010 |   |
| Basic                                                                              |   |                                       |      |   |   |   |
| Net income                                                                         |   | $                                          | 5,719     |   |   | $ | 4,749 |   |
| Weighted-average common shares outstanding                                         |   |                                       | 9,356,641 |   |   |   | 9,328,697 |   |
|                                                                               |   |                                       |      |   |   |   |   |   |
| Basic earnings per share                                                           |   | $                                          | .61       |   |   | $ | .51 |   |
| Diluted                                                                            |   |                                       |      |   |   |   |   |   |
| Net income                                                                         |   | $                                          | 5,719     |   |   | $ | 4,749 |   |
| Weighted-average common shares outstanding                                         |   |                                       | 9,356,641 |   |   |   | 9,328,697 |   |
| Effect of dilutive restricted stock, stock options and stock appreciation rights   |   |                                       | 126,832   |   |   |   | 94,039 |   |
| Weighted-average common shares outstanding assuming dilution                       |   |                                       | 9,483,473 |   |   |   | 9,422,736 |   |
|                                                                               |   |                                       |      |   |   |   |   |   |
| Diluted earnings per share                                                         |   | $                                          | .60       |   |   | $ | .50 |   |

----

|                                                             |   | Three Months EndedMarch 31, |   |
|------------------------------------------------------------------|--------|--------------------------------------------|--------|
| (In thousands)                                              |   | 2011                                       |   |   | 2010 |   |
| Net income                                                       |   | $                                          | 5,719  |   |   | $ | 4,749 |   |
|                                                             |   |                                       |   |   |   |   |   |   |
| Other comprehensive income:                                      |   |                                       |   |   |   |   |   |   |
| Net unrealized gain on securities available-for-sale, net of tax |   |                                       | 803    |   |   |   | 1,321 |   |
|                                                             |   |                                       |   |   |   |   |   |   |
| Total comprehensive income                                       |   | $                                          | 6,522  |   |   | $ | 6,070 |   |

----

| (In thousands)           |   | InformationServices |    |   | BankingServices |   |    | Corporate,Eliminationsand Other |   |   | Total   |   |
|-------------------------------|--------|---------------------|---------|--------|-----------------|--------|---------|--------------------------------------|--------|--------|---------|--------|
| Quarter Ended March 31, 2011  |   |                |    |   |            |   |    |                                 |   |   |    |   |
| Total Revenues:               |   |                |    |   |            |   |    |                                 |   |   |    |   |
| Revenue from customers        |   | $                   | 19,846  |   |            | $      | 6,234   |                                 |   | $      | ― |   |   | $ | 26,080 |   |
| Intersegment income (expense) |   |                | 2,626   |   |            |   | 457     |                                 |   |   | (3,083  | )      |   |   | ― |   |
| Net income                    |   |                | 3,552   |   |            |   | 2,167   |                                 |   |   | ― |   |   |   | 5,719 |   |
| Goodwill                      |   |                | 7,335   |   |            |   | 136     |                                 |   |   | ― |   |   |   | 7,471 |   |
| Other intangible assets, net  |   |                | 241     |   |            |   | ― |                                 |   |   | ― |   |   |   | 241 |   |
| Total assets                  |   |                | 615,586 |   |            |   | 591,457 |                                 |   |   | (7,023  | )      |   |   | 1,200,020 |   |
| Quarter Ended March 31, 2010  |   |                |    |   |            |   |    |                                 |   |   |    |   |   |   |   |   |
| Total Revenues:               |   |                |    |   |            |   |    |                                 |   |   |    |   |   |   |   |   |
| Revenue from customers        |   | $                   | 17,228  |   |            | $      | 5,549   |                                 |   | $      | ― |   |   | $ | 22,777 |   |
| Intersegment income (expense) |   |                | 2,275   |   |            |   | 380     |                                 |   |   | (2,655  | )      |   |   | ― |   |
| Net income                    |   |                | 2,904   |   |            |   | 1,845   |                                 |   |   | ― |   |   |   | 4,749 |   |
| Goodwill                      |   |                | 7,335   |   |            |   | 136     |                                 |   |   | ― |   |   |   | 7,471 |   |
| Other intangible assets, net  |   |                | 348     |   |            |   | ― |                                 |   |   | ― |   |   |   | 348 |   |
| Total assets                  |   |                | 579,766 |   |            |   | 498,105 |                                 |   |   | (4,710  | )      |   |   | 1,073,161 |   |

| (In thousands)                       |   | March 31,2011 |    |   | December 31,2010 |   |
|-------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
| Commercial and industrial                 |   | $                  | 149,026 |   |                  | $      | 135,061 |   |
| Real estate:                              |   |               |    |   |                  |   |   |   |
| Mortgage – Commercial               |   |               | 136,206 |   |                  |   | 151,201 |   |
| Mortgage – Church & related     |   |               | 361,388 |   |                  |   | 365,378 |   |
| Construction – Commercial           |   |               | 16,427  |   |                  |   | 18,434 |   |
| Construction – Church & related |   |               | 44,598  |   |                  |   | 36,318 |   |
| Industrial revenue bonds                  |   |               | 931     |   |                  |   | 1,014 |   |
| Other                                     |   |               | 1,046   |   |                  |   | 1,227 |   |
| Total loans                               |   | $                  | 709,622 |   |                  | $      | 708,633 |   |

| (In thousands)                       |   | 30-59Days |   |   | 60-89Days |   |   | 90 DaysandOver |   |   | TotalPastDue |   |   | Current |   |   | TotalLoans |   |
|-------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|---------------------|--------|--------|--------------|--------|--------|---------|--------|--------|------------|--------|
| March 31, 2011                            |   |      |   |   |      |   |   |                |   |   |         |   |   |    |   |   |       |   |
| Commercial and industrial                 |   | $         | 67     |   |      | $      | 3⁄4 |                |   | $      | 26           |   |   | $       | 93     |   |       | $      | 148,933 |   |   | $ | 149,026 |   |
| Real estate:                              |   |      |   |   |      |   | 3⁄4 |                |   |   |         |   |   |    |   |   |       |   |   |   |   |   |   |   |
| Mortgage – Commercial               |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 475          |   |   |    | 475    |   |       |   | 135,731 |   |   |   | 136,206 |   |
| Mortgage – Church & related     |   |      | 490    |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 490    |   |       |   | 360,898 |   |   |   | 361,388 |   |
| Construction – Commercial           |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 16,427 |   |   |   | 16,427 |   |
| Construction – Church & related |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 44,598 |   |   |   | 44,598 |   |
| Industrial revenue bonds                  |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 931 |   |   |   | 931 |   |
| Other                                     |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 1,046 |   |   |   | 1,046 |   |
| Total                                     |   | $         | 557    |   |      | $      | 3⁄4 |                |   | $      | 501          |   |   | $       | 1,058  |   |       | $      | 708,564 |   |   | $ | 709,622 |   |
| December 31, 2010                         |   |      |   |   |      |   |   |                |   |   |         |   |   |    |   |   |       |   |   |   |   |   |   |   |
| Commercial and industrial                 |   | $         | 105    |   |      | $      | 3⁄4 |                |   | $      | 3⁄4       |   |   | $       | 105    |   |       | $      | 134,956 |   |   | $ | 135,061 |   |
| Real estate:                              |   |      |   |   |      |   | 3⁄4 |                |   |   |         |   |   |    |   |   |       |   |   |   |   |   |   |   |
| Mortgage – Commercial               |   |      | 145    |   |      |   | 3⁄4 |                |   |   | 490          |   |   |    | 635    |   |       |   | 150,566 |   |   |   | 151,201 |   |
| Mortgage – Church & related     |   |      | 1,954  |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 1,954  |   |       |   | 363,424 |   |   |   | 365,378 |   |
| Construction – Commercial           |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 18,434 |   |   |   | 18,434 |   |
| Construction – Church & related |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 36,318 |   |   |   | 36,318 |   |
| Industrial revenue bonds                  |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 1,014 |   |   |   | 1,014 |   |
| Other                                     |   |      | 3⁄4 |   |      |   | 3⁄4 |                |   |   | 3⁄4       |   |   |    | 3⁄4 |   |       |   | 1,227 |   |   |   | 1,227 |   |
| Total                                     |   | $         | 2,204  |   |      | $      | 3⁄4 |                |   | $      | 490          |   |   | $       | 2,694  |   |       | $      | 705,939 |   |   | $ | 708,633 |   |

----

| (In thousands)           |   | RecordedInvestment |   |   | UnpaidPrincipalBalance |   |   | RelatedAllowance forLoan Losses |   |
|-------------------------------|--------|--------------------|--------|--------|------------------------|--------|--------|-------------------------------------------|--------|
| March 31, 2011                |   |               |   |   |                   |   |   |                                      |   |
| Commercial and industrial:    |   |               |   |   |                   |   |   |                                      |   |
| Nonaccrual                    |   | $                  | 36     |   |                   | $      | 36     |                                      |   | $ | 4 |   |
| Real estate – mortgage: |   |               |   |   |                   |   |   |                                      |   |   |   |   |
| Nonaccrual                    |   |               | 503    |   |                   |   | 503    |                                      |   |   | 116 |   |
| Total impaired loans          |   | $                  | 539    |   |                   | $      | 539    |                                      |   | $ | 120 |   |
| December 31, 2010             |   |               |   |   |                   |   |   |                                      |   |   |   |   |
| Commercial and industrial:    |   |               |   |   |                   |   |   |                                      |   |   |   |   |
| Nonaccrual                    |   | $                  | 46     |   |                   | $      | 46     |                                      |   | $ | 4 |   |
| Real estate – mortgage: |   |               |   |   |                   |   |   |                                      |   |   |   |   |
| Nonaccrual                    |   |               | 519    |   |                   |   | 519    |                                      |   |   | 116 |   |
| Total impaired loans          |   | $                  | 565    |   |                   | $      | 565    |                                      |   | $ | 120 |   |

| (In thousands)                   |   | CommercialandIndustrial |    |   | RealEstateMortgage |   |    | Real EstateConstruction |   |   | Other  |   |   | Total  |   |
|---------------------------------------|--------|-------------------------|---------|--------|--------------------|--------|---------|------------------------------|--------|--------|--------|--------|--------|--------|--------|
| March 31, 2011                        |   |                    |    |   |               |   |    |                         |   |   |   |   |   |   |   |
| Loans subject to normal monitoring1   |   | $                       | 145,053 |   |               | $      | 472,062 |                         |   | $      | 61,025 |   |   | $      | 1,977  |   |   | $ | 680,117 |   |
| Loans subject to special monitoring2: |   |                    |    |   |               |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Performing                            |   |                    | 3,937   |   |               |   | 25,029  |                         |   |   | 3⁄4 |   |   |   | 3⁄4 |   |   |   | 28,966 |   |
| Nonperforming                         |   |                    | 36      |   |               |   | 503     |                         |   |   | 3⁄4 |   |   |   | 3⁄4 |   |   |   | 539 |   |
| Total                                 |   | $                       | 149,026 |   |               | $      | 497,594 |                         |   | $      | 61,025 |   |   | $      | 1,977  |   |   | $ | 709,622 |   |
| December 31, 2010                     |   |                    |    |   |               |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans subject to normal monitoring1   |   | $                       | 130,148 |   |               | $      | 495,573 |                         |   | $      | 54,752 |   |   | $      | 2,241  |   |   | $ | 682,714 |   |
| Loans subject to special monitoring2: |   |                    |    |   |               |   |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Performing                            |   |                    | 4,867   |   |               |   | 20,487  |                         |   |   | 3⁄4 |   |   |   | 3⁄4 |   |   |   | 25,354 |   |
| Nonperforming                         |   |                    | 46      |   |               |   | 519     |                         |   |   | 3⁄4 |   |   |   | 3⁄4 |   |   |   | 565 |   |
| Total                                 |   | $                       | 135,061 |   |               | $      | 516,579 |                         |   | $      | 54,752 |   |   | $      | 2,241  |   |   | $ | 708,633 |   |

| (In thousands)        |   | December 31,2010 |   |   |  Charge-Offs |   |   | Recoveries |   |   | Provision |   |   | March 31,2011 |   |
|----------------------------|--------|-----------------------|--------|--------|-------------------|--------|--------|------------|--------|--------|-----------|--------|--------|--------------------|--------|
| Commercial and industrial  |   | $                     | 2,728  |   |              |   | 3⁄4 |       |   | $      | 35        |   |   | $                  | 213    |   |   | $ | 2,976 |   |
| Real estate - mortgage     |   |                  | 8,491  |   |              |   | 3⁄4 |       |   |   | 1         |   |   |               | 172    |   |   |   | 8,664 |   |
| Real estate - construction |   |                  | 656    |   |              |   | 3⁄4 |       |   |   | 3⁄4    |   |   |               | 67     |   |   |   | 723 |   |
| Other                      |   |                  | 16     |   |              |   | 3⁄4 |       |   |   | 3⁄4    |   |   |               | (2     | ) |   |   | 14 |   |
| Total                      |   | $                     | 11,891 |   |              |   | 3⁄4 |       |   | $      | 36        |   |   | $                  | 450    |   |   | $ | 12,377 |   |

----

|                        |   | Amount of Commitment Expiration per Period |    |
|-----------------------------|--------|---------------------------------------------------------------------|---------|
| (In thousands)         |   | Total                                                               |    |   | Less than1 year |   |   | 1-3Years |   |   | 3-5Years |   |   | Over 5Years |   |
| Operating lease commitments |   | $                                                                   | 2,591   |   |   | $ | 599 |   |   | $ | 1,015 |   |   | $ | 606 |   |   | $ | 371 |   |
| Time deposits               |   |                                                                | 159,064 |   |   |   | 138,010 |   |   |   | 18,509 |   |   |   | 2,545 |   |   |   | ― |   |
| Total                       |   | $                                                                   | 161,655 |   |   | $ | 138,609 |   |   | $ | 19,524 |   |   | $ | 3,151 |   |   | $ | 371 |   |

----

|                         |   | Three Months EndedMarch 31, 2011 |    |
|------------------------------|--------|------------------------------------------------------|---------|
|                         |   | Shares                                               |    |   | Fair Value |   |
| Balance at December 31, 2010 |   |                                                 | 50,271  |   |   | $ | 28.51 |   |
| Granted                      |   |                                                 | 20,617  |   |   |   | 36.24 |   |
| Vested                       |   |                                                 | (21,980 | ) |   |   | 27.42 |   |
| Forfeited                    |   |                                                 | ― |   |   |   | ― |   |
| Balance at March 31, 2011    |   |                                                 | 48,908  |   |   | $ | 32.26 |   |

|                             |   |   |   |   | Weighted-Average |   |   | AverageRemaining |   |   | AggregateIntrinsic  |   |
|----------------------------------|--------|--------|--------|--------|------------------|--------|--------|------------------|--------|--------|---------------------|--------|
|                             |   |   |   |   | Exercise         |   |   | Contractual      |   |   | Value               |   |
|                             |   | Shares |   |   | Price            |   |   | Term Years  |   |   | (In thousands) |   |
| Outstanding at December 31, 2010 |   |   | 36,628 |   |             | $      | 18.36  |             |   |   | 1.56                |   |   | $ | 717 |   |
| Exercised                        |   |   | 5,756  |   |             |   | 13.04  |             |   |   |                |   |   |   |   |   |
| Outstanding at March 31, 2011    |   |   | 30,872 |   |             | $      | 19.24  |             |   |   | 1.54                |   |   |   | 619 |   |
| Exercisable at March 31, 2011    |   |   | 27,532 |   |             | $      | 19.06  |             |   |   | 1.51                |   |   |   | 557 |   |

|                            |   | Shares |   |   | Weighted-AverageGrant DateFair Value |   |
|---------------------------------|--------|--------|--------|--------|------------------------------------------------|--------|
| Non-vested at December 31, 2010 |   |   | 12,440 |   |                                           | $      | 2.94 |   |
| Vested                          |   |   | 9,100  |   |                                           |   | 2.93 |   |
| Non-vested at March 31, 2011    |   |   | 3,340  |   |                                           | $      | 2.95 |   |

|                             |   |   |    |   | Weighted-Average |   |   | AverageRemaining |   |   | AggregateIntrinsic  |   |
|----------------------------------|--------|--------|---------|--------|------------------|--------|--------|------------------|--------|--------|---------------------|--------|
|                             |   |   |    |   | Exercise         |   |   | Contractual      |   |   | Value               |   |
|                             |   | Shares |    |   | Price            |   |   | Term Years  |   |   | (In thousands) |   |
| Outstanding at December 31, 2010 |   |   | 241,755 |   |             | $      | 27.34  |             |   |   | 7.83                |   |   | $ | 2,562 |   |
| Granted                          |   |   | 75,016  |   |             |   | 36.24  |             |   |   |                |   |   |   |   |   |
| Exercised                        |   |   | (6,754  | )      |             |   | 26.01  |             |   |   |                |   |   |   |   |   |
| Outstanding at March 31, 2011    |   |   | 310,017 |   |             | $      | 29.53  |             |   |   | 8.15                |   |   | $ | 3,027 |   |
| Exercisable at March 31, 2011    |   |   | 178,800 |   |             | $      | 27.51  |             |   |   | 7.37                |   |   | $ | 2,107 |   |

----

|                                                |   | Shares |    |   | Weighted-AverageGrant DateFair Value |   |
|-----------------------------------------------------|--------|--------|---------|--------|------------------------------------------------|--------|
| Non-vested at December 31, 2010 |   |   | 141,201 |   |                                           | $      | 27.18 |   |
| Granted                                             |   |   | 75,016  |   |                                           |   | 36.24 |   |
| Vested                                              |   |   | (85,000 | )      |                                           |   | 27.31 |   |
| Non-vested at March 31, 2011                        |   |   | 131,217 |   |                                           | $      | 32.28 |   |

|                    |   | Three Months EndedMarch 31, |   |
|-------------------------|--------|--------------------------------------------|--------|
|                    |   | 2011                                       |   |   | 2010 |   |
| Risk-free interest rate |   |                                       | 2.70   | % |   |   | 3.33 | % |
| Expected life           |   | 7 yrs.                                     |   |   | 7 yrs. |   |
| Expected volatility     |   |                                       | 27.86  | % |   |   | 30.00 | % |
| Expected dividend yield |   |                                       | 1.77   | % |   |   | 1.86 | % |

| (In thousands)                                  |   | Estimated2011 |   |   | Actual2010 |   |
|------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
| Service cost – benefits earned during the year |   | $             | 2,079  |   |       | $      | 1,771 |   |
| Interest cost on projected benefit obligation        |   |          | 2,457  |   |       |   | 2,290 |   |
| Expected return on plan assets                       |   |          | (3,314 | )      |       |   | (2,440 | ) |
| Net amortization and deferral                        |   |          | 642    |   |       |   | 616 |   |
| Net periodic pension cost                            |   | $             | 1,864  |   |       | $      | 2,237 |   |

| (In thousands)                                  |   | Estimated2011 |   |   | Actual2010 |   |
|------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
| Service cost – benefits earned during the year |   | $             | 90     |   |       | $      | 78 |   |
| Interest cost on projected benefit obligation        |   |          | 295    |   |       |   | 315 |   |
| Net amortization                                     |   |          | 249    |   |       |   | 258 |   |
| Net periodic pension cost                            |   | $             | 634    |   |       | $      | 651 |   |

----

|                             |   | March 31, 2011 |    |
|----------------------------------|--------|--------------------------|---------|
| (In thousands)              |   | AmortizedCost            |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
| State and political subdivisions |   | $                        | 258,491 |   |   | $ | 10,704 |   |   | $ | 830 |   |   | $ | 268,365 |   |

|                             |   | December 31, 2010 |    |
|----------------------------------|--------|-----------------------------|---------|
| (In thousands)              |   | AmortizedCost               |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
| State and political subdivisions |   | $                           | 255,929 |   |   | $ | 9,829 |   |   | $ | 1,189 |   |   | $ | 264,569 |   |

|                             |  March 31, 2011     |   |
|----------------------------------|------------------------------------|--------|
|                             | Less than 12 months |   | 12 months or more |   | Total |   |
|                             | Estimated                          |   | Unrealized |   | Estimated |   | Unrealized |   | Estimated |   | Unrealized |   |
| (In thousands)              | fair value                    |   | losses |   | fair value |   | losses |   | Fair value |   | losses |   |
| State and political subdivisions |                               | $      | 42,626 |   |   | $ | 830 |   |   | $ | ― |   |   | $ | ― |   |   | $ | 42,626 |   |   | $ | 830 |   |

|                                        |   | December 31, 2010        |   |
|---------------------------------------------|--------|------------------------------------|--------|
|                                        |   | Less than 12 months |   |   | 12 months or more |   |   | Total |   |
|                                        |   | Estimated                          |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
| (In thousands)                         |   | fair value                    |   |   | losses |   |   | fair value |   |   | losses |   |   | Fair value |   |   | losses |   |
| State and political  subdivisions |   | $                                  | 53,741 |   |   | $ | 1,189 |   |   | $ | ― |   |   | $ | ― |   |   | $ | 53,741 |   |   | $ | 1,189 |   |

----

|                                           |   | March 31, 2011 |    |
|------------------------------------------------|--------|--------------------------|---------|
| (In thousands)                            |   | Amortized Cost      |    |   | Fair Value |   |
| Due in 1 year or less |   | $                        | 15,184  |   |   | $ | 15,467 |   |
| Due after 1 year through 5 years               |   |                     | 35,278  |   |   |   | 37,541 |   |
| Due after 5 years through 10 years             |   |                     | 102,260 |   |   |   | 109,468 |   |
| Due after 10 years                             |   |                     | 105,769 |   |   |   | 105,889 |   |
| Total                                          |   | $                        | 258,491 |   |   | $ | 268,365 |   |

|                        |   | March 31, 2011 |      |   | December 31, 2010 |   |
|-----------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
|   (In thousands)  |   | CarryingAmount           |      |   | Fair Value             |   |   | CarryingAmount |   |   | Fair Value |   |
| Balance sheet assets:       |   |                     |      |   |                        |   |   |   |   |   |   |   |
| Cash and cash equivalents   |   | $                        | 138,657   |   |                        | $      | 138,657 |   |   | $ | 138,929 |   |   | $ | 138,929 |   |
| Investment securities       |   |                     | 268,365   |   |                        |   | 268,365 |   |   |   | 264,569 |   |   |   | 264,569 |   |
| Loans, net                  |   |                     | 697,245   |   |                        |   | 701,207 |   |   |   | 696,742 |   |   |   | 710,294 |   |
| Accrued interest receivable |   |                     | 5,938     |   |                        |   | 5,938 |   |   |   | 5,857 |   |   |   | 5,857 |   |
| Total                       |   | $                        | 1,110,205 |   |                        | $      | 1,114,167 |   |   | $ | 1,106,097 |   |   | $ | 1,119,649 |   |
|                        |   |                     |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Balance sheet liabilities:  |   |                     |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                    |   | $                        | 525,648   |   |                        | $      | 525,648 |   |   | $ | 518,590 |   |   | $ | 518,590 |   |
| Accounts and drafts payable |   |                     | 514,155   |   |                        |   | 514,155 |   |   |   | 516,107 |   |   |   | 516,107 |   |
| Short-term borrowings       |   |                     | ―   |   |                        |   | ― |   |   |   | 9 |   |   |   | 9 |   |
| Accrued interest payable    |   |                     | 12,869    |   |                        |   | 12,869 |   |   |   | 208 |   |   |   | 208 |   |
| Total                       |   | $                        | 1,052,672 |   |                        | $      | 1,052,672 |   |   | $ | 1,034,914 |   |   | $ | 1,034,914 |   |

----

| ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------|

----

----

|                                                          |   | First Quarter of |   |
|---------------------------------------------------------------|--------|----------------------------|--------|
| (In thousands except per share data) |   | 2011                       |   |   | 2010 |   |   | % Change |   |
| Net income                                                    |   | $                          | 5,719  |   |   | $ | 4,749 |   |   |   | 20.4 | % |
| Diluted earnings per share                                    |   | $                          | .60    |   |   | $ | .50 |   |   |   | 20.0 | % |
| Return on average assets                                      |   |                       | 1.86   | % |   |   | 1.80 | % |   |   |   |   |
| Return on average equity                                      |   |                       | 16.23  | % |   |   | 14.71 | % |   |   |   |   |

|                                     |   | First Quarter of |      |
|------------------------------------------|--------|------------------|-----------|
| (In thousands)                           |   | 2011             |      |   | 2010 |   |   | % Change |   |
| Freight Core Invoice Transaction Volume* |   |             | 6,670     |   |   |   | 6,017 |   |   |   | 10.9 | % |
| Freight Invoice Dollar Volume            |   | $                | 4,568,930 |   |   | $ | 3,768,941 |   |   |   | 21.2 | % |
| Utility Transaction Volume               |   |             | 3,358     |   |   |   | 3,055 |   |   |   | 9.9 | % |
| Utility Transaction Dollar Volume        |   | $                | 2,689,235 |   |   | $ | 2,608,099 |   |   |   | 3.1 | % |
| Payment and Processing Fees              |   | $                | 14,347    |   |   | $ | 12,745 |   |   |   | 12.6 | % |

|                                 |   | First Quarter of |      |
|--------------------------------------|--------|------------------|-----------|
| (In thousands)                       |   | 2011             |      |   | 2010 |   |   | % Change |   |
| Average earnings assets              |   | $                | 1,149,715 |   |   | $ | 984,700 |   |   |   | 16.8 | % |
| Average interest-bearing liabilities |   |             | 409,071   |   |   |   | 323,253 |   |   |   | 26.5 | % |
| Net interest income*                 |   |             | 13,033    |   |   |   | 11,595 |   |   |   | 12.4 | % |
| Net interest margin*                 |   |             | 4.60      | % |   |   | 4.78 | % |   |   |   |   |
| Yield on earning assets*             |   |             | 5.02      | % |   |   | 5.26 | % |   |   |   |   |
| Rate on interest bearing liabilities |   |             | 1.20      | % |   |   | 1.48 | % |   |   |   |   |

----

|                                                      |   | First Quarter of 2011 |      |   | First Quarter of 2010   |   |
|-----------------------------------------------------------|--------|-----------------------|-----------|--------|-------------------------|--------|
| (In thousands)                                            |   | Average Balance       |      |   | Interest Income/Expense |   |   | Yield/Rate |   |   | AverageBalance |   |   | InterestIncome/Expense |   |   | Yield/Rate |   |
| Assets1                                                   |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earning assets                                            |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans2, 3:                                                |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                   |   | $                     | 704,737   |   |                    | $      | 10,249 |   |   |   | 5.90 | % |   | $ | 645,818 |   |   | $ | 9,402 |   |   |   | 5.90 | % |
| Tax-exempt4                                               |   |                  | 966       |   |                    |   | 6 |   |   |   | 2.52 |   |   |   | 2,630 |   |   |   | 38 |   |   |   | 5.86 |   |
| Investment securities5:                                   |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                   |   |                  | 928       |   |                    |   | 5 |   |   |   | 2.19 |   |   |   | 792 |   |   |   | 14 |   |   |   | 7.17 |   |
| Tax-exempt4                                               |   |                  | 256,462   |   |                    |   | 3,810 |   |   |   | 6.02 |   |   |   | 212,492 |   |   |   | 3,228 |   |   |   | 6.16 |   |
| Interest-bearing deposits in other financial institutions |   |                  | 62,287    |   |                    |   | 66 |   |   |   | .43 |   |   |   | 21,406 |   |   |   | 13 |   |   |   | .25 |   |
| Federal funds sold and other short-term investments       |   |                  | 124,335   |   |                    |   | 103 |   |   |   | .34 |   |   |   | 101,562 |   |   |   | 76 |   |   |   | .30 |   |
| Total earning assets                                      |   |                  | 1,149,715 |   |                    |   | 14,239 |   |   |   | 5.02 |   |   |   | 984,700 |   |   |   | 12,771 |   |   |   | 5.26 |   |
| Non-earning assets                                        |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                   |   |                  | 11,464    |   |                    |   |   |   |   |   |   |   |   |   | 9,414 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                               |   |                  | 9,679     |   |                    |   |   |   |   |   |   |   |   |   | 10,324 |   |   |   |   |   |   |   |   |   |
| Bank-owned life insurance                                 |   |                  | 14,267    |   |                    |   |   |   |   |   |   |   |   |   | 13,710 |   |   |   |   |   |   |   |   |   |
| Goodwill and other intangibles                            |   |                  | 7,728     |   |                    |   |   |   |   |   |   |   |   |   | 7,835 |   |   |   |   |   |   |   |   |   |
| Other assets                                              |   |                  | 62,954    |   |                    |   |   |   |   |   |   |   |   |   | 54,801 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                 |   |                  | (12,074   | )      |                    |   |   |   |   |   |   |   |   |   | (8,386 | ) |   |   |   |   |   |   |   |   |
| Total assets                                              |   | $                     | 1,243,733 |   |                    |   |   |   |   |   |   |   |   | $ | 1,072,398 |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders’ Equity1               |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities                              |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                          |   | $                     | 218,525   |   |                    | $      | 556 |   |   |   | 1.03 | % |   | $ | 169,486 |   |   | $ | 510 |   |   |   | 1.22 | % |
| Savings deposits                                          |   |                  | 24,831    |   |                    |   | 64 |   |   |   | 1.05 |   |   |   | 24,967 |   |   |   | 72 |   |   |   | 1.17 |   |
| Time deposits >=$100                                   |   |                  | 53,609    |   |                    |   | 184 |   |   |   | 1.39 |   |   |   | 49,953 |   |   |   | 204 |   |   |   | 1.66 |   |
| Other time deposits                                       |   |                  | 112,104   |   |                    |   | 402 |   |   |   | 1.45 |   |   |   | 78,807 |   |   |   | 390 |   |   |   | 2.01 |   |
| Total interest-bearing deposits                           |   |                  | 409,069   |   |                    |   | 1,206 |   |   |   | 1.20 |   |   |   | 323,213 |   |   |   | 1,176 |   |   |   | 1.48 |   |
| Short-term borrowings                                     |   |                  | 2         |   |                    |   | — |   |   |   | — |   |   |   | 40 |   |   |   | — |   |   |   | — |   |
| Total interest bearing liabilities                        |   |                  | 409,071   |   |                    |   | 1,206 |   |   |   | 1.20 |   |   |   | 323,253 |   |   |   | 1,176 |   |   |   | 1.48 |   |
| Non-interest bearing liabilities                          |   |                  |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                           |   |                  | 130,406   |   |                    |   |   |   |   |   |   |   |   |   | 110,722 |   |   |   |   |   |   |   |   |   |
| Accounts and drafts payable                               |   |                  | 549,794   |   |                    |   |   |   |   |   |   |   |   |   | 491,821 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                         |   |                  | 11,534    |   |                    |   |   |   |   |   |   |   |   |   | 15,661 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                         |   |                  | 1,100,805 |   |                    |   |   |   |   |   |   |   |   |   | 941,457 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                |   |                  | 142,928   |   |                    |   |   |   |   |   |   |   |   |   | 130,941 |   |   |   |   |   |   |   |   |   |
| Total liabilities and share- holders’ equity        |   | $                     | 1,243,733 |   |                    |   |   |   |   |   |   |   |   | $ | 1,072,398 |   |   |   |   |   |   |   |   |   |
| Net interest income                                       |   |                  |      |   |                    | $      | 13,033 |   |   |   |   |   |   |   |   |   |   | $ | 11,595 |   |   |   |   |   |
| Net interest margin                                       |   |                  |      |   |                    |   |   |   |   |   | 4.60 | % |   |   |   |   |   |   |   |   |   |   | 4.78 | % |
| Interest spread                                           |   |                  |      |   |                    |   |   |   |   |   | 3.83 |   |   |   |   |   |   |   |   |   |   |   | 3.78 |   |

----

| 1. | Balances shown are daily averages. |
|----|------------------------------------|

| 2. | For purposes of these computations, nonaccrual loans are included in the average loan amounts outstanding.  Interest on nonaccrual loans is recorded when received as discussed further in Note 1 to the Company’s 2010 consolidated financial statements, filed with the Company’s 2010 Annual Report on Form 10-K. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Interest income on loans includes net loan fees of $238,000 and $74,000 for the First Quarter of 2011 and 2010, respectively. |
|----|-------------------------------------------------------------------------------------------------------------------------------|

| 4. | Interest income is presented on a tax-equivalent basis assuming a tax rate of 35%.  The tax-equivalent adjustment was approximately $1,335,000 and $1,143,000 for the First Quarter of 2011 and 2010, respectively. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | For purposes of these computations, yields on investment securities are computed as interest income divided by the average amortized cost of the investments. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | First Quarter of 2011 OverFirst Quarter of 2010 |   |
|-----------------------------------------------------------|--------|-------------------------------------------------|--------|
| (In thousands)                                            |   | Volume                                          |   |   | Rate |   |   | Total |   |
| Increase (decrease) in interest income:                   |   |                                            |   |   |   |   |   |   |   |
| Loans1, 2:                                                |   |                                            |   |   |   |   |   |   |   |
| Taxable                                                   |   | $                                               | 857    |   |   | $ | (10 | ) |   | $ | 847 |   |
| Tax-exempt3                                               |   |                                            | (17    | ) |   |   | (15 | ) |   |   | (32 | ) |
| Investment securities:                                    |   |                                            |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                   |   |                                            | 2      |   |   |   | (11 | ) |   |   | (9 | ) |
| Tax-exempt3                                               |   |                                            | 655    |   |   |   | (73 | ) |   |   | 582 |   |
| Interest-bearing deposits in other financial institutions |   |                                            | 38     |   |   |   | 15 |   |   |   | 53 |   |
| Federal funds sold and other short-term investments       |   |                                            | 18     |   |   |   | 9 |   |   |   | 27 |   |
| Total interest income                                     |   |                                            | 1,553  |   |   |   | (85 | ) |   |   | 1,468 |   |
| Interest expense on:                                      |   |                                            |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                          |   |                                            | 133    |   |   |   | (87 | ) |   |   | 46 |   |
| Savings deposits                                          |   |                                            | 0      |   |   |   | (8 | ) |   |   | (8 | ) |
| Time deposits >=$100                                   |   |                                            | 14     |   |   |   | (34 | ) |   |   | (20 | ) |
| Other time deposits                                       |   |                                            | 137    |   |   |   | (125 | ) |   |   | 12 |   |
| Total interest expense                                    |   |                                            | 284    |   |   |   | (254 | ) |   |   | 30 |   |
| Net interest income                                       |   |                                            | 1,269  |   |   |   | 169 |   |   |   | 1,438 |   |

| 1. | Average balances include nonaccrual loans. |
|----|--------------------------------------------|

| 2. | Interest income includes net loan fees. |
|----|-----------------------------------------|

| 3. | Interest income is presented on a tax-equivalent basis assuming a tax rate of 35%. |
|----|------------------------------------------------------------------------------------|

----

|                                                     |   | First Quarter of |    |
|----------------------------------------------------------|--------|----------------------------|---------|
| (In thousands)                                      |   | 2011                       |    |   | 2010 |   |
| Allowance at beginning of period                         |   | $                          | 11,891  |   |   | $ | 8,284 |   |
| Provision charged to expense                             |   |                       | 450     |   |   |   | 900 |   |
|                                                     |   |                       |    |   |   |   |   |   |
| Loans charged off                                        |   |                       | — |   |   |   | (200 | ) |
| Recoveries on loans previously charged off               |   |                       | 36      |   |   |   | 15 |   |
| Net recoveries (loans charged off)                       |   |                       | 36      |   |   |   | (185 | ) |
| Allowance at end of period                               |   | $                          | 12,377  |   |   | $ | 8,999 |   |
| Loans outstanding:                                       |   |                       |    |   |   |   |   |   |
| Average                                                  |   | $                          | 705,703 |   |   | $ | 648,448 |   |
| March 31                                                 |   |                       | 709,622 |   |   |   | 664,824 |   |
| Ratio of allowance for loan losses to loans outstanding: |   |                       |    |   |   |   |   |   |
| Average                                                  |   |                       | 1.75    | % |   |   | 1.39 | % |
| March 31                                                 |   |                       | 1.74    |   |   |   | 1.35 |   |
| Nonperforming loans:                                     |   |                       |    |   |   |   |   |   |
| Nonaccrual loans                                         |   | $                          | 539     |   |   | $ | 1,392 |   |
| Loans past due 90 days or more                           |   |                       | — |   |   |   | — |   |
| Renegotiated loans                                       |   |                       | — |   |   |   | — |   |
| Total nonperforming loans                                |   | $                          | 539     |   |   | $ | 1,392 |   |
| Foreclosed assets                                        |   |                       | 1,910   |   |   |   | 1,910 |   |
| Nonperforming loans as a % of average loans              |   |                       | .08     | % |   |   | .21 | % |

----

----

----

|                                     |   | March 31, 2011 |    | December 31, 2010 |   |
|------------------------------------------|--------|--------------------------|---------|-----------------------------|--------|
| (In thousands)                      |   | Amount                   |    |                        | Ratio  |   | Amount |   |   | Ratio |   |
| Total capital (to risk-weighted assets)  |   |                     |    |                        |   |   |   |   |   |   |   |   |
| Cass Information Systems, Inc.           |   | $                        | 153,320 |                        |   |   | 17.08 | % |   | $ | 148,659 |   |   |   | 16.82 | % |
| Cass Commercial Bank                     |   |                     | 60,946  |                        |   |   | 11.21 | % |   |   | 58,838 |   |   |   | 10.72 | % |
| Tier I capital (to risk-weighted assets) |   |                     |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cass Information Systems, Inc.           |   | $                        | 142,082 |                        |   |   | 15.82 | % |   | $ | 137,603 |   |   |   | 15.57 | % |
| Cass Commercial Bank                     |   |                     | 54,122  |                        |   |   | 9.95 | % |   |   | 51,955 |   |   |   | 9.46 | % |
| Tier I capital (to average assets)       |   |                     |    |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cass Information Systems, Inc.           |   | $                        | 142,082 |                        |   |   | 11.50 | % |   | $ | 137,603 |   |   |   | 11.18 | % |
| Cass Commercial Bank                     |   |                     | 54,122  |                        |   |   | 8.93 | % |   |   | 51,955 |   |   |   | 8.92 | % |

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| ITEM 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

----

| PART II. | OTHER INFORMATION |
|----------|-------------------|

| ITEM 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 1A. | RISK FACTORS |
|----------|--------------|

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4. | [REMOVED AND RESERVED] |
|---------|------------------------|

| ITEM 5. | OTHER INFORMATION |
|---------|-------------------|

|   | (a) | None |
|--------|-----|------|

|   | (b) | There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors implemented in the First Quarter of 2011. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 6. | EXHIBITS |
|---------|----------|

----

|                         | CASS INFORMATION SYSTEMS, INC. |
|------------------------------|--------------------------------|
|                         |                           |   |
| DATE:  May 5, 2011 | By                             | /s/ Eric H. Brunngraber |
|                         |                           | Eric H. Brunngraber |
|                         |                           | President and Chief Executive Officer |
|                         |                           | (Principal Executive Officer) |
|                         |                           |   |
| DATE:  May 5, 2011 | By                             | /s/ P. Stephen Appelbaum |
|                         |                           | P. Stephen Appelbaum |
|                         |                           | Chief Financial Officer |
|                         |                           | (Principal Financial and Accounting Officer) |

----