Table 2 - Selected Financial Data (b) Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and tax-equivalent net interest income. NM - not meaningful page 24 Year ended December 31 (Dollars in thousands, except per share amounts) 2011 2010 2009 2008 2007 Income statement Tax-equivalent interest income (a) $ 32,425 35,237 38,467 39,722 38,670 Total interest expense 11,481 14,573 18,019 20,491 21,942 Tax equivalent net interest income (a) 20,944 20,664 20,448 19,231 16,728 Provision for loan losses 2,450 3,580 5,250 870 23 Total noninterest income 5,177 6,718 2,433 3,900 5,543 Total noninterest expense 16,357 15,893 13,934 12,240 11,967 Net earnings before income taxes and  tax-equivalent adjustment 7,314 7,909 3,697 10,021 10,281 Tax-equivalent adjustment 1,719 1,765 1,633 1,361 1,123 Income tax expense (benefit) 57 798 (340) 2,023 2,240 Net earnings $ 5,538 5,346 2,404 6,637 6,918 Per share data: Basic and diluted net earnings  $ 1.52 1.47 0.66 1.81 1.86 Cash dividends declared 0.80 0.78 0.76 0.74 0.70 Weighted average shares outstanding Basic  3,642,735 3,642,851 3,644,691 3,674,384 3,716,427 Diluted Shares outstanding 3,642,738 3,642,718 3,643,117 3,646,947 3,681,809 Book value  $ 17.96 15.47 15.42 15.66 14.40 Common stock price High $ 20.37 22.00 30.00 25.00 30.00 Low 18.52 16.86 18.07 19.00 21.30 Period-end $ 20.06 19.69 20.10 21.95 To earnings ratio  12.10 x 13.74 29.39 11.10 11.80 To book value 103 % 130 128 128 152 Performance ratios: Return on average equity  9.10 % 9.00 4.23 12.18 13.50 Return on average assets  0.72 0.68 0.31 0.92 1.06 Dividend payout ratio 52.63 % 53.06 115.15 40.88 37.63 Average equity to average assets 7.89 7.61 7.21 7.59 7.88 Asset Quality: Allowance for loan losses as a % of: Loans 1.87 % 2.05 1.73 1.19 1.27 Nonperforming loans 67 65 69 99 918 Nonperforming assets as a % of: Loans and foreclosed properties 4.83 % 5.22 4.34 1.29 0.17 Total assets 2.35 2.61 2.15 0.64 0.08 Nonperforming loans as % of loans 2.80 % 3.16 2.49 1.20 0.14 Net charge-offs (recoveries) as a % of average loans 0.86 0.64 0.84 0.17 (0.01) Capital Adequacy: Tier 1 risk-based capital ratio 15.40 % 14.57 13.73 14.23 15.09 Total risk-based capital ratio 16.66 15.82 14.98 15.22 16.12 Tier 1 Leverage ratio 8.82 % 8.47 8.13 8.75 9.02 Other financial data: Net interest margin (a) 2.95 % 2.86 2.78 2.86 2.76 Effective income tax expense (benefit) rate 1.02 12.99 (16.47) 23.36 24.46 Efficiency ratio (b) 62.62 % 58.04 60.90 52.92 53.73 Selected period end balances: Securities $ 299,582 315,220 334,762 302,656 318,373 Loans, net of unearned income 370,263 374,215 376,103 369,162 322,411 Allowance for loan losses 6,919 7,676 6,495 4,398 4,105 Total assets 776,218 763,829 773,382 745,970 688,659 Total deposits 619,552 607,127 579,409 550,843 492,585 Long-term debt 85,313 93,331 118,349 123,368 115,386 Total stockholders’ equity 65,416 56,368 56,183 57,128 53,018 (a) Tax-equivalent. See "Table 1 - Explanation of Non-GAAP Financial Measures".