Consolidated Statements of Income Year Ended December 31,  2012  2011 2010 (dollars in thousands except share data) INTEREST INCOME Loans, taxable $ 34,983 $ 36,772 $ 40,163 Loans, non-taxable 16,432 11,324 8,271 Securities available-for-sale, taxable 22,286 22,782 18,958 Securities available-for-sale, non-taxable 340 211 391 Federal Home Loan Bank of Boston dividends 77 46 — Securities held-to-maturity 6,746 5,816 7,158 Federal funds sold, interest-bearing deposits in other banks and short-term investments 630 1,114 1,642 Total interest income 81,494 78,065 76,583 INTEREST EXPENSE Savings and NOW deposits 2,250 2,539 4,072 Money market accounts 2,373 2,706 3,942 Time deposits 6,250 9,356 7,914 Securities sold under agreements to repurchase 367 379 573 Other borrowed funds and subordinated debentures 8,300 7,786 8,316 Total interest expense 19,540 22,766 24,817 Net interest income 61,954 55,299 51,766 Provision for loan losses (Note 6) 4,150 4,550 5,575 Net interest income after provision for loan losses 57,804 50,749 46,191 OTHER OPERATING INCOME Service charges on deposit accounts 7,880 7,885 7,876 Lockbox fees 2,930 2,770 2,911 Brokerage commissions 364 441 230 Net gains on sales of securities 1,843 1,940 1,851 Other income 2,848 3,204 3,131 Total other operating income 15,865 16,240 15,999 OPERATING EXPENSES Salaries and employee benefits (Note 16) 32,943 29,630 28,398 Occupancy 4,695 4,411 4,037 Equipment 2,255 2,235 2,132 FDIC assessments 1,737 2,025 2,965 Other (Note 19) 11,608 10,441 9,840 Total operating expenses 53,238 48,742 47,372 Income before income taxes 20,431 18,247 14,818 Provision for income taxes (Note 15) 1,392 1,554 1,244 Net income  $ 19,039 $ 16,693 $ 13,574 SHARE DATA (Note 13) Weighted average number of shares outstanding, basic  Class A  3,557,693  3,543,233   3,521,179 Class B 1,990,474  1,997,411   2,012,327 Weighted average number of shares outstanding, diluted Class A 5,549,191  5,541,794   5,535,742 Class B  1,990,474  1,997,411   2,012,327 Basic earnings per share Class A  $ 4.18 $ 3.68 $ 3.00 Class B  $ 2.09 $ 1.84 $ 1.50 Diluted earnings per share Class A  $ 3.43 $ 3.01 $ 2.45 Class B  $ 2.09 $ 1.84 $ 1.50 See accompanying “Notes to Consolidated Financial Statements.” 19