ITEM 6. SELECTED FINANCIAL DATA  (1) All per share amounts have been adjusted to give effect to the 5% stock dividends paid in December 2012, 2011, 2010,  2009 and 2008. (2) Presented on a taxable equivalent basis, using a 34% federal tax rate. Our selected consolidated financial data should be read in conjunction with, and is qualified in its entirety by, our  consolidated financial statements, including the related notes. 45  2012 2011 2010 2009 2008 Selected Financial Data: Total assets  $ 614,067 $ 598,240 $ 561,506 $ 584,167 $ 602,214  Loans, net 315,914 310,081 306,668 342,738 365,772  Investment securities  218,538 204,885 175,872 169,619 171,297  Cash and cash equivalents 14,920 17,501 9,735 12,379 13,788  Deposits 482,500 454,134 431,314 438,595 439,546  Borrowings 59,967 76,597 70,301 82,183 104,366  Stockholders’ equity  $ 63,333 $ 59,120 $ 53,817 $ 53,895 $ 51,406  Selected Operating Data: Interest income  $ 22,052 $ 22,586 $ 24,351 $ 27,266 $ 31,647  Interest expense 3,910 4,659 6,305 9,086 13,615  Net interest income 18,142 17,927 18,046 18,180 18,032  Provision for loan losses 1,900 2,000 5,900 3,300 2,400  Net interest income after provision for loan losses 16,242 15,927 12,146 14,880 15,632  Non-interest income 12,020 8,901 9,140 8,436 7,045  Investment securities gains (losses), net 423 114 172 (952) 497  Non-interest expense 20,504 19,954 20,030 18,946 17,511  Earnings before income taxes 8,181 4,988 1,428 3,418 5,663  Income tax expense (benefit)  1,814 504 (615) 146 1,110  Net earnings  $ 6,367 $ 4,484 $ 2,043 $ 3,272 $ 4,553  Earnings per share (1): Basic  $ 2.18 $ 1.54 $ 0.70 $ 1.13 $ 1.56  Diluted 2.16 1.54 0.70 1.13 1.55  Dividends per share (1) 0.72 0.69 0.65 0.63 0.60  Book value per common share outstanding (1)  $ 21.67 $ 20.23 $ 18.51 $ 18.70 $ 17.83  Other Data: Return on average assets 1.01% 0.78% 0.35% 0.54% 0.75% Return on average equity 10.34% 7.98% 3.73% 6.18% 8.98% Equity to total assets  10.31% 9.88% 9.58% 9.23% 8.54% Net interest rate spread (2) 3.36% 3.67% 3.65% 3.39% 3.25% Net interest margin (2)  3.47% 3.77% 3.78% 3.57% 3.51% Non-performing assets to total assets 1.88% 0.80% 1.63% 2.48% 1.28% Non-performing loans to total gross loans 2.84% 0.45% 1.55% 3.45% 1.56% Allowance for loan losses to total gross loans 1.43% 1.50% 1.60% 1.57% 1.05% Dividend payout ratio 33.33% 44.72% 92.31% 55.27% 38.10% Number of full service banking offices 22 21 21 21 20 (Dollars in thousands, except per share amounts) At or for the years ended December 31, 