Income Analysis 2010

8/8/2019 Income Analysis 2010

1/31

FDIC Certificate # 9092 SALIN BANK AND TRUST COMPANY

2006 2007 2008 2009 Jun-10

12/31/2006 12/31/2007 ### 12/31/2009 6/30/2010

Summary

Assets $894.2 $834.3 $776.1 $790.2 $789.9

Net Income $17.6 $10.7 -$24.1 $1.8 $2.0

ROA 1.98% 1.24% -3.01% 0.23% 0.52%

ROE 18.8% 10.3% -34.3% 2.6% 5.6%Capital Ratio 10.52% 12.03% 8.78% 8.95% 9.25%

Asset Growth 2.65% -6.70% -6.97% 1.82% 4.39%

Balance Sheet Composition

Real Estate 46.4% 45.9% 47.2% 46.7% 47.6%

Commercial 20.7% 20.9% 21.9% 21.5% 19.0%

Consumer 3.8% 2.2% 1.9% 2.1% 2.0%

Other 3.5% 3.8% 4.8% 4.4% 4.1%

Securities 18.6% 19.4% 17.0% 16.1% 19.9%

Fixed 7.0% 7.8% 7.3% 9.4% 7.4%

Checking 6.9% 8.3% 7.6% 8.3% 6.6%MMDAs 5.1% 8.4% 10.1% 16.3% 17.1%

Savings 35.9% 32.6% 31.7% 33.7% 32.6%

Time 23.0% 27.6% 19.5% 17.3% 18.1%

Borrowings 29.2% 23.2% 31.0% 24.5% 25.6%

Capital

Capital Ratio 10.5% 12.0% 8.8% 9.0% 9.3%

9.0% 9.1% 8.8% 8.7% 9.0%

Risk-based Capital 13.8% 15.8% 11.2% 11.5% 12.3%

12.9% 12.7% 12.6% 13.2% 13.9%

Asset QualityNon-accrual 0.83% 2.22% 4.58% 4.35% 5.67%

0.71% 1.28% 2.63% 4.27% 4.50%

Management Quality

Evaluation of policy and procedures (No Data)

Earnings

2006 2007 2008 2009 Jun-10

ROE

ROA 1.98% 1.24% -3.01% 0.23% 0.52%

1.26% 1.10% 0.53% 0.11% 0.56%

Multiplier 9.5 8.3 11.4 11.2 10.811.1 11.0 11.4 11.5 11.1

ROE 18.8% 10.3% -34.3% 2.6% 5.6%

14.0% 12.1% 6.1% 1.3% 6.2%

Capital Ratio 10.5% 12.0% 8.8% 9.0% 9.3%

9.0% 9.1% 8.8% 8.7% 9.0%

ROA

Net Interest Margin 4.30% 4.09% 4.11% 3.80% 4.06%

3.94% 3.77% 3.55% 3.45% 3.55%


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Fee Income 1.1% 1.2% 1.3% 1.4% 1.3%

0.8% 0.8% 0.8% 0.7% 0.7%

Operating Expense 3.3% 3.6% 4.1% 4.1% 3.8%

2.8% 2.9% 2.9% 3.0% 2.9%

Efficiency Ratio 61% 67% 76% 79% 71%

60% 62% 67% 71% 68%

SpreadEarning Asset Yield 7.3% 7.3% 6.1% 5.2% 5.2%

7.1% 7.3% 6.3% 5.5% 5.2%

Costing Liability Ra 3.1% 3.3% 2.0% 1.2% 0.9%

3.0% 3.4% 2.6% 1.8% 1.4%

Spread 4.2% 4.0% 4.2% 3.9% 4.2%

4.1% 3.9% 3.7% 3.7% 3.8%

Securities Yield 5.1% 5.5% 5.4% 5.6% 6.1%

4.7% 5.1% 5.0% 4.4% 3.9%

Loan Yield 7.8% 7.8% 6.3% 5.1% 5.2%

7.8% 7.9% 6.8% 6.1% 5.9%

Deposit Cost 3.1% 3.4% 2.2% 1.3% 0.9%

3.3% 3.8% 2.9% 2.0% 1.5%Fed Funds Rate 4.97% 5.02% 1.92% 0.16% 0.16%

Liquidity

Loans to Assets 74% 73% 76% 75% 73%

71% 72% 71% 68% 67%

Borrowing Capacity 29.9% 30.4% 25.8% 28.6% 29.2%

Sensitivity

(correlation coefficient)

Earning Asset Yield 99.7%

98.1%Costing Liability Ra 99.1%

94.2%

Spread 18%

83%


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47.6% 19.0% 2.0% 4.1% 19.9% 7.4%

6.6% 17.1% 32.6% 18.1% 25.6%


4/31


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FDIC Certificate # 9092 FRB District/ID_RSSD 7 / 123646 SALIN BAN

OCC Charter # 0 County: MARION Summary

Public Report

### 12/31/2007

Earnings and Profitability BANK PG 3 PCT BANK PG 3 PCT

Percent of Average Assets:

Interest Income (TE) 7.04 6.63 71 6.97 6.82 58

- Interest Expense 2.74 2.7 52 2.88 3.07 36Net Interest Income (TE) 4.3 3.94 70 4.09 3.77 69

+ Noninterest Income 1.08 0.83 74 1.24 0.82 81

- Noninterest Expense 3.29 2.84 73 3.55 2.85 82

- Provision: Loan & Lease Losses 0.01 0.15 13 0.4 0.21 81

Pretax Operating Income (TE) 2.08 1.82 66 1.38 1.56 38

+ Realized Gains/Losses Sec 0 0 74 0.01 0 85

Pretax Net Operating Income (TE) 2.08 1.81 66 1.39 1.55 38

Net Operating Income 1.98 1.26 89 1.24 1.1 62

Adjusted Net Operating Income 1.61 1.33 72 1.31 1.19 62

Net Inc Attrib to Min Ints N/A 0 N/A N/A 0 N/A

Net Income Adjusted Sub S 1.35 1.17 67 0.9 1.01 37

Net Income 1.98 1.26 89 1.24 1.1 62

Margin Analysis:

Avg Earning Assets to Avg Assets 96.29 94.04 84 95.29 93.94 68

Avg Int-Bearing Funds to Avg Assets 84.96 79.62 79 83.77 80.05 70

Int Inc (TE) to Avg Earn Assets 7.31 7.06 64 7.32 7.28 51

Int Expense to Avg Earn Assets 2.84 2.88 46 3.02 3.27 33

Net Int Inc-TE to Avg Earn Assets 4.47 4.21 64 4.29 4.03 66

Loan & Lease Analysis:

Net Loss to Average Total LN&LS 0.49 0.11 93 0.43 0.18 85

Earnings Coverage of Net Losses (X) 5.14 57.97 8 4.98 31.11 17

LN&SL Allowance to LN&LS Not HFS 1.1 1.21 37 1.3 1.21 67LN&LS Allowance to Net Losses (X) 2.14 26.6 6 2.84 15.59 15

LN&LS Allowance to Total LN&LS 1.1 1.2 38 1.3 1.21 67

Total LN&LS-90+ Days Past Due 0 0.08 35 0 0.11 31

-Nonaccrual 0.75 0.44 74 2.03 0.81 85

-Total 0.75 0.58 68 2.03 1.04 82

Liquidity

Net Non Core Fund Dependence 26.77 24.43 57 20.86 25.65 36

Net Loans & Leases to Assets 74.46 70.71 59 72.8 71.61 48

Capitalization

Tier One Leverage Capital 10.52 9.02 83 12.03 9.06 91Cash Dividends to Net Income 90.13 39.93 87 49.58 47.84 52

Retained Earnings to Avg Total Equit 1.79 7.37 15 5.39 4.97 50

Rest+Nonac+RE Acq to Eqcap+ALLL 5.47 4.15 66 12.3 8.06 74

Growth Rates

Total Assets 2.65 10.13 20 -6.7 8.22 3

Tier One Capital 2.74 11.64 14 6.66 7.95 48

Net Loans & Leases -7.95 12.34 2 -8.77 10.3 3

Short Term Investments 112.94 59.71 77 3.83 10.12 59


6/31

Short Term Non Core Funding 10.96 36.94 25 -3.47 17.27 24

Average Total Assets 885,923 861,809

Total Equity Capital 98,738 105,523

Net Income 17,585 10,690

Number of banks in Peer Group 1,146 1,171


OCC Charter # 0 County: MARION Noninteres

Public Report

### 12/31/2007

Percent of Average Assets BANK PG 3 PCT BANK PG 3 PCT

Personnel Expense 1.79 1.57 70 1.79 1.57 70

Occupancy Expense 0.54 0.4 81 0.59 0.4 88

Other Oper Exp (Incl Intangibles) 0.96 0.86 68 1.16 0.87 84Total Overhead Expense 3.29 2.84 73 3.55 2.85 82

Overhead Less Nonint Inc 2.21 1.96 69 2.31 1.98 72

Other Income & Expense Ratios:

Efficiency Ratio 61.15 59.04 58 66.53 61.55 67

Avg Personnel Exp Per Empl($000) 58.84 56.46 62 61.28 58.88 62

Assets Per Employee ($Million) 3.31 3.97 37 3.31 4.14 33

Yield on or Cost of:

Total Loan & Leases (TE) 7.77 7.78 53 7.79 7.93 43

Loans in Domestic Offices 7.75 7.76 53 7.74 7.92 40

Real Estate 7.65 7.61 54 7.26 7.79 26

Secured by 1-4 Fam Resi Prop N/A 0 N/A N/A 0 N/AAll Other Loans Sec Real EstateN/A 0 N/A N/A 0 N/A

Commercial & Industrial 8.16 8.36 48 7.96 8.41 32

Individual 4.47 8.39 2 6.01 8.71 4

Credit Card N/A 10.03 N/A N/A 10.44 N/A

Agricultural 7.99 8.31 38 7.84 8.5 21

Loans in Foreign Offices N/A 7.37 N/A N/A 7.88 N/A

Total Investment Securities (TE) 5.13 4.69 80 5.53 5.06 84

Total Investment Securities (Book) 4.66 4.32 78 4.94 4.69 72

US Treas & Agency (Excl MBS) 4.39 4.2 64 4.81 4.7 55

Mortgage Backed Securities 4.27 4.59 28 5.12 4.91 66

All Other Securities 5.64 4.3 91 4.8 4.38 73

Interest-Bearing Bank Balances 14.42 4.33 96 4.95 4.63 49Federal Funds Sold & Resales 5.59 4.96 93 4.68 5.07 8

Total Interest Bearing Deposits 3.1 3.27 38 3.35 3.76 28

Transaction accounts 1.22 1.44 48 1.45 1.58 52

Other Savings Deposits 1.88 2.25 38 2.1 2.57 34

Time Deps Over $100M 3.81 4.36 10 4.15 4.87 6

All Other Time Deposits 4.74 4.12 91 5.22 4.77 86

Foreign Office Deposits N/A 3.94 N/A N/A 4.19 N/A

Federal Funds Purchased & Repos 4.37 4.45 42 4.29 4.49 40


7/31

Other Borrowed Money 3.98 4.7 15 5.22 4.86 74

Subord Notes & Debentures N/A 6.9 N/A N/A 6.99 N/A

All Interest-Bearing Funds 3.22 3.4 37 3.44 3.85 26

Non-interest Income & Expenses

Fiduciary Activities 1,591 1,687

Deposit Service Charges 5,089 6,064Trading, Vent Cap, Securtz Inc 0 0

Inv Banking, Advisory Inc 267 308

Insurance Comm & Fees 19 16

Net Servicing Fees 550 526

Loan & Lse Net Gains/Loss 464 324

Other Net Gains/Losses 5 11

Other Non-interest Income 1,604 1,765

Non-interest Income 9,589 10,701

Personnel Expense 15,887 15,442

Occupancy Expense 4,779 5,097

Goodwill Impairment 0 0

Other Intangible Amortiz 885 880Other Oper Exp(incl Intangibles) 7,627 9,150

Non-Interest Expense 29,178 30,569

Domestic Banking Offices(#) 32 29

Foreign Branches (#) 0 0

Assets Per Domestic Office 27,943 28,768


OCC Charter # 0 County: MARION Balance Sh

Public Report

### 12/31/2007

Assets:

Real Estate Loans 414,803 382,554

Commercial Loans 185,426 174,667

Individual Loans 34,275 18,324

Agricultural Loans 36,427 37,995

Other LN&LS in Domestic Offices 2,241 1,872

LN&LS in Foreign Offices N/A N/A

Loans Held for Sale 356 369

Loans not Held for Sale 672,816 615,043

LN&LS Allowance 7,393 8,016

Net Loans & Leases 665,779 607,396U.S. Treasury & Agency Securities 119,616 101,784

Municipal Securities 41,741 40,376

Foreign Debt Securities 0 0

All Other Securities 4,415 18,915

Interest-Bearing Bank Balances 241 410

Federal Funds Sold & Resales 0 0

Trading Account Assets 0 0

Total Investments 166,013 161,485

Total Earning Assets 831,792 768,881


8/31

Nonint Cash & Due From Banks 26,484 29,451

Premises, Fix Assts, Cap Leases 16,663 16,078

Other Real Estate Owned 525 1,225

Dir & Indir Inv RE Ventures 384 0

Inv in Unconsolidated Subs 0 0

Acceptances & Oth Assets 18,351 18,644

Total Assets 894,199 834,279Average Assets During Quarter 900,873 840,398

Liabilities:

Demand Deposits 38,478 42,023

All Now & ATS Accounts 16,250 18,191

Money Market Deposit Accounts 40,211 60,896

Other savings Deposits 285,585 237,417

Time Dep Under $100M 182,882 201,108

Core Deposits 563,406 559,635

Time Dep on $100 or More 154,383 91,929

Deposits in Foreign Offices 0 0

Total Deposits 717,789 651,564Federal Funds Purch & Resale 59,873 69,737

Fed Home Loan Bor Mat < 1 Year 7,933 0

Fed Home Loan Bor Mat > 1 Year 1,643 1,643

Oth Borrowing Mat < 1 Year 0 0

Oth Borrowing Mat > 1 Year 0 0

Acceptances & Other Liabilities 8,223 5,812

Total Liabilities (Incl Mortg) 795,461 728,756

Subordinated Notes & Debentures 0 0

Total Bank Capital & Min Int 98,738 105,523

Total Liabilities & Capital 894,199 834,279

Memoranda:Officers, Shareholder Loans (#) 2 2

Officers, Shareholder Loans ($) 5,090 4,155

Held-to-Maturity Securities 7,644 5,829

Available-for-Sale Securities 158,128 155,246

All Brokered Deposits 59,256 42,566


OCC Charter # 0 County: MARION Balance Sh

Public Report

### 12/31/2007Percent of Average Assets BANK PG 3 PCT BANK PG 3 PCT

Loans Held For Sale 0.02 0.18 50 0.07 0.16 58

Loans Not Held For Sale 79.18 70.87 74 75.61 71.5 59

Less: LN&LS Allowance 1.1 0.86 84 0.92 0.85 60

Net Loans & Leases 78.11 70.42 72 74.77 71.05 57

Interest-Bearing Bank Balances 0.02 0.31 32 0.04 0.32 39

Federal Funds Sold & Resales 0 1.73 13 0.06 1.89 14

Trading Account Assets 0 0.03 97 0 0.11 95


9/31

Held-to-Maturity Securities 0.98 1.36 71 0.78 1.24 71

Available-for-Sale Securities 14.46 15.91 47 17.68 15.21 64

Total Earning Assets 93.58 92.04 73 93.33 92.04 68

Nonint Cash & Due From Banks 2.29 2.7 35 2.51 2.44 57

Premises, Fix Assts & Cap Leases 1.99 1.83 59 1.91 1.91 52

Other Real Estate Owned 0.03 0.06 53 0.14 0.1 71Dir & Indir Inv RE Ventures 0.02 0 94 0.01 0 94

Inv in Unconsolidated Subs 0 0 87 0 0 88

Acceptances & Other Assets 2.09 3.12 27 2.11 3.22 26

Total Non-Earning Assets 6.42 7.96 26 6.67 7.96 31

Total Assets 100 100 99 100 100 99

Standby Letters of Credit 1.33 0.68 79 1.53 0.65 84

Liabilities

Demand Deposits 4.1 8.4 16 4.56 7.2 29

All NOW & ATS Accounts 1.9 4.88 22 2.1 4.22 28

Money Market Deposit Accounts 1.64 16.05 3 6.08 16.37 18Other Savings Deposits 33.38 11.55 94 30.43 11.29 92

Time Dep Less Than $100M 21.03 20 53 21.74 21.96 47

Core Deposits 62.05 64.56 38 64.91 64.64 49

Time Deposits of $100M or More 16.51 16.5 53 14.62 16.19 44

Deposits in Foreign Offices 0 0.21 98 0 0.2 98

Total Deposits 78.56 81.96 28 79.53 81.69 33

Federal Funds Purch & Repos 7.96 1.94 92 7.26 1.94 91

Total Fed Home Loan Borrowings 1.76 4.51 32 0.88 4.41 25

Total Other Borrowings 0 0.06 63 0 0.06 63

Memo: Sht Ter N Core Funding 18.9 17.88 58 17.94 19.03 47

Acceptances & Other Liabilities 0.78 0.73 62 0.76 0.78 52

Total Liabilities (Incl Mortg) 89.05 90.65 20 88.43 90.33 17

Subordinated Notes & Debentures 0 0 93 0 0 94

Total Bank Capital & Min Int 10.95 9.27 80 11.57 9.6 82

Total Liabilities & Capital 100 100 96 100 100 97

Memo: All Brokered Deposits 6.26 3.15 77 6.05 3.33 74

Insured Brokered Deposits 5.52 2.79 76 5.01 2.97 74

Loans HFS as a % Loans 0.03 0.24 49 0.1 0.22 57


OCC Charter # 0 County: MARION Analysis of

Public Report

### 12/31/2007

Analysis Ratios BANK PG 3 PCT BANK PG 3 PCT

Loss Provision to Average Assets 0.01 0.15 13 0.4 0.21 81


10/31

Recoveries to Prior Credit Loss 18.48 35.7 33 18.18 42.68 31

Net Loss to Average Total LN&LS 0.49 0.11 93 0.43 0.18 85

Gross Loss to Average Total LN&LS 0.51 0.16 91 0.53 0.24 85

Recoveries to Average Total LN&LS 0.02 0.05 37 0.1 0.04 83

LN&LS Allowance to LN&LS Not HFS 1.1 1.21 37 1.3 1.21 67

LN&LS Allowance to Total LN&LS 1.1 1.2 38 1.3 1.21 67LN&LS Allowance to Net Losses (X) 2.14 26.6 6 2.84 15.59 15

LN&LS Allowance to Nonaccrual LN& 1.47 6.42 24 0.64 3.55 15

Earnings Coverage of Net Losses (X) 5.14 57.97 8 4.98 31.11 17

Net Losses by Type of LN&LS

Real Estate Loans 0.22 0.03 93 0.07 0.09 61

Loans to Finance Comml Real Estate N/A 0.01 N/A N/A 3.48 N/A

Construction & Land Development 0 0.01 81 0 0.12 63

1-4 Family Construction N/A 0 N/A 0 0.1 74

Other Construction & Land N/A 0 N/A 0 0.07 76

Secured by Farmland 0 0 94 0 0 93Single & Multifamily Mortgage 0.8 0.04 98 0.27 0.08 86

Home Equity Loans 0.03 0.01 85 0.64 0.04 95

1-4 Family Non-Revolving 1.62 0.04 99 -0.02 0.08 5

Multifamily Loans 0 0.02 96 0 0 94

Non-Farm Non-Residential Mtg 0 0.02 72 0 0.04 66

Owner Occupied Nonfarm Nonresid N/A 0 N/A 0 0.02 78

Other Nonfarm Nonresidential N/A 0 N/A 0 0.03 79

RE Loans in Foreign Offices N/A 0 N/A N/A 0 N/A

Agricultural Loans 0 0.01 87 0 0.01 86

Commercial and Industrial Loans 1.3 0.25 91 1.41 0.32 90

Lease Financing 0 0.05 86 N/A 0.1 N/ALoans to Individuals 0.23 0.49 39 0.67 0.57 65

Credit Card Plans N/A 1.43 N/A N/A 1.67 N/A

All Other Loans & Leases 0 0.2 71 0 0.23 68

Loans to Foreign Governments N/A 0 N/A N/A 0 N/A

Change: Credit Allowance ($000)

Beginning Balance 10,720 7,393

Gross Credit Losses 3,603 3,482

Memo: Loans HFS Write-down 0 0

Recoveries 156 655Net Credit Losses 3,447 2,827

Provision: Loan & Lease Losses 120 3,450

Other Adjustments 0 0

LN&LS Allowance 7,393 8,016

Average Total Loans & Leases 702,309 652,227


11/31


OCC Charter # 0 County: MARION Analysis of

Public Report

### 12/31/2007

Loan & Leases as a % of Total CapitaBANK PG 3 PCT BANK PG 3 PCT

Construction & Development 121.31 117.41 59 124.01 123.57 58

1-4 Family Construction N/A 0 N/A 18.3 38.22 37Other Const & Land Development N/A 0 N/A 105.72 84.34 65

1-4 Family Residential 98.31 164.16 28 87.98 162.09 25

Home Equity Loans 44.78 23.99 77 43.42 23.37 78

Other Real Estate Loans 188.62 257.5 26 140.59 259.63 13

Farmland 4.1 13.33 49 2.84 15.42 42

Multifamily 10.48 15.01 45 7.53 15.89 34

Non-Farm Non-Residential 174.05 216.63 35 130.22 215.62 20

Owner Occupied Non-Farm Non- N/A 0 N/A 39.1 99.92 16

Other Non-Farm Non-Residential N/A 0 N/A 91.12 110.54 43

Total Real Estate 408.23 567.24 19 352.57 574 11

Financial Institution Loans 0 0.56 95 0 1.14 95Agricultural Loans 35.85 8.12 87 35.02 8.96 86

Commercial & Industrial Loans 171.98 99.75 85 146.92 101.94 75

Loans to Individuals 33.73 31.16 64 16.89 28.7 43

Credit Card Loans 0 0.64 63 0 0.59 65

Municipal Loans 10.51 2.97 86 14.06 3.02 89

Foreign Office Loans & Leases 0 0.59 99 0 0.6 99

All Other Loans 2.21 2.15 68 1.73 2.3 61

Lease Financing Receivables 0 0.53 76 0 0.49 77

Supplemental:

Loans to Foreign Governments 0 0.01 99 0 0 99

Loans to Finance Commercial Real E 0 0.87 74 0 0.98 72

Commercial Real Estate Loans as a % of Total Capital:

Non-owner OCC Commercial Real EsN/A 0 N/A 222.66 273.01 39

Total Commercial Real Estate 305.83 371.53 35 261.76 377.29 28

Commercial Real Estate Loans as a % of Total LN&LS:

Construction & Development 18.31 15.83 63 21.86 16.48 70

Non-owner OCC Commercial Real EsN/A 0 N/A 39.26 36.33 58

Total Commercial Real Estate 46.16 50.39 42 46.15 50.56 42

-30-89 DAYS P/D 0 0.81 33 0.5 0.91 50

Other Non-Farm Non-Res-90+ Days 0 0.02 88 0 0.04 86

-Nonaccrual 7.02 2.15 86 6.22 2.02 84

-Total 7.02 2.32 85 6.22 2.22 83

-30-89 DAYS P/D 2.3 0.65 85 0 0.81 44

Non-Current LN&LS ($000)

90 Days and Over Past Due 0 16


12/31

Total Nonaccrual LN&LS 25,959 18,324

Total Non-Current LN&LS 25,959 18,340

LN&LS 30-89 Days Past Due 2,415 3,631

Restructured LN&LS 90+ Days P/D 0 0

Restructured LN&LS Nonaccrual 0 0

Restructured LN&LS 30-89 Days P/D 0 0

Current 1-4 Family Restru LN&LS 0 0

Current Other Restructured LN&LS 5,954 0

Loans Secured 1-4 RE in Foreclosure 531 590

Other Real Estate Owned 7,692 8,027

### 12/31/2007

Capital Ratios BANK PG 3 PCT BANK PG 3 PCT

Percent of Bank Equity:

Net Loans & Leases (x) 6.74 8 30 5.76 8 20

Subord Notes & Debentures 0 0.02 94 0 0.85 95

Long Term Debt 0 0 94 0 1 95Com RE & Related Ventures 304.86 369.55 39 262.57 366.29 31

Percent of Average Bank Equity:

Net Income 18.11 13.73 78 10.69 11.64 44

Dividends 16.32 5.73 90 5.3 6.02 49

Retained Earnings 1.79 7.37 15 5.39 4.97 50

Other Capital Ratios:

Dividends to Net Operating Income 90.13 40 87 49.58 49 50

Bank Eq Cap + Min Int to Assets 11.04 9.39 80 12.65 9.64 88

Growth Rates:

Total Equity Capital 1.61 12 10 6.87 10 40

Equity Growth Less Asst Growth -1.04 2.33 32 13.57 1.77 89

Intang Assets % Bank EquityMortgage Servicing Rights 0.96 0 90 0.66 0 88

Goodwill 0 3.15 57 0 3.65 56

Purch Credit Card Relations 0 0.05 97 0 0.02 97

All Other Intangibles 5.97 1 95 4.78 1 93

Total Intangibles 6.93 4.39 72 5.44 4.88 68

Risk-Based Capital

Tier One RBC to Risk-Wgt Assets 12.75 12 71 14.62 12 84

Total RBC to Risk-Weight Assets 13.75 13 70 15.79 13 84

Tier One Leverage Capital 10.52 9 83 12.03 9 91

Other Capital Ratio:

Def Tax Asset to T1 Cap 0 2 27 0 2 33

Off-Balance Sheet

Category Two - 20% 0 0

Category Three - 50% 355 192

Category Four - 100% 23,017 29,558

Total Off-Balance Sheet 23,372 29,750

Memo: Category One - 0% 0 0

Adjustments to Risk-Wgt Assets


13/31

Risk-Weighted Asset Before Ded 738,681 686,860

- Excess Allowable LN&LS Loss Al 0 0

- Allocated Transfer Risk Reserve 0 0

+ Mkt Risk Asset & Fin Sub Adj 0 0

Total Risk-Weighted Assets 738,681 686,861

Non Curr LNS+OREO to LNS+OREO 0.83 0.71 64 2.22 1.28 78


14/31

K AND TRUST COMPA INDIANAPOLIS, IN Summary Ratios

atios--Page 1 10/8/10 10:16

12/31/2008 12/31/2009 6/30/2010

BANK PG 3 PCT BANK PG 3 PCT BANK PG 3 PCT

5.89 5.9 48 4.93 5.13 35 4.9 4.83 53

1.78 2.36 16 1.13 1.68 16 0.84 1.29 174.11 3.55 80 3.8 3.45 69 4.06 3.55 81

1.26 0.77 83 1.44 0.74 88 1.25 0.69 86

4.08 2.91 89 4.12 2.97 89 3.75 2.88 87

1.4 0.62 85 0.7 1.12 45 0.76 0.69 67

-0.11 0.87 17 0.43 0.16 45 0.8 0.72 46

-2.9 -0.04 1 -0.08 0.04 8 -0.12 0.05 4

-3.01 0.74 6 0.35 0.18 41 0.67 0.78 38

-3.01 0.53 5 0.23 0.11 40 0.52 0.56 41

-2.81 0.78 4 0.22 0.42 31 1.1 0.67 67

N/A 0 N/A 0 0 98 0 0 98

-3.01 0.47 5 0.23 0.06 41 0.45 0.5 38

-3.01 0.53 5 0.23 0.11 40 0.52 0.56 41

96 93.86 78 95.01 93.59 67 94.95 93.12 70

83.79 80.74 66 89.2 81.67 93 88.36 81.76 86

6.13 6.3 37 5.19 5.5 28 5.16 5.21 45

1.86 2.52 14 1.19 1.8 15 0.88 1.39 16

4.28 3.79 76 4 3.7 65 4.28 3.82 75

1.57 0.53 89 0.91 1.12 56 0.24 0.84 28

1.08 9.99 16 1.42 4.74 36 7.89 7.94 69

1.62 1.43 72 1.6 1.87 47 2.02 1.9 641.01 5.96 8 1.74 3.28 41 8.49 5.35 80

1.62 1.42 72 1.6 1.85 48 2.02 1.88 65

0.01 0.15 35 0 0.15 33 0 0.14 30

3.98 1.84 83 3.06 2.96 61 4.43 3.01 74

3.99 2.07 81 3.06 3.18 59 4.43 3.23 72

29.45 30.37 47 23.82 25.39 45 21.25 23.13 45

75.7 71.43 58 74.54 68.14 69 72.66 66.69 68

8.78 8.75 58 8.95 8.67 59 9.25 8.98 60-41.48 45.37 4 0 30.69 45 0 21.28 50

-37.65 0.24 4 2.56 -3 56 5.54 2.38 63

34.9 18.71 80 32.62 34.07 62 45.29 34.26 71

-6.97 8.75 5 1.82 4.63 38 4.39 3.28 56

-33.07 5.18 3 3.88 4.61 42 5.21 3.9 52

-3.27 9.14 11 0.25 -0.1 52 -2.38 -1.39 44

-87.45 35.08 6 156.75 232.34 65 2120.09 121.96 96


15/31

-1.14 21.85 30 -11.86 -2.99 40 -1.06 -9 61

800,129 772,717 784,639

69,732 71,230 75,587

-24,109 1,781 2,029

1,191 1,198 1,204

K AND TRUST COMPA INDIANAPOLIS, IN Non Int Inc, Exp, Yields

Income, Expenses and Yields--Page 3 10/8/10 10:16

12/31/2008 12/31/2009 6/30/2010


1.9 1.53 80 1.99 1.45 87 1.76 1.45 78

0.66 0.4 91 0.69 0.39 95 0.63 0.38 91

1.52 0.93 90 1.44 1.09 82 1.36 1.03 834.08 2.91 89 4.12 2.97 89 3.75 2.88 87

2.82 2.06 87 2.68 2.18 78 2.5 2.14 74

76.07 66.05 78 78.53 71.43 72 70.63 67.78 60

61.51 60.94 57 71.75 62.11 78 66.88 62.7 67

3.14 4.39 21 3.69 4.6 34 3.82 4.59 38

6.33 6.77 20 5.13 6.06 5 5.21 5.93 9

6.33 6.75 21 5.09 6.04 4 5.19 5.91 9

6.27 6.69 20 4.84 5.99 3 4.86 5.85 4

7.36 6.72 75 5.21 6.09 17 5.18 5.88 206.01 6.72 13 4.65 5.94 3 4.69 5.84 5

6.43 6.84 35 5.51 6.03 31 5.45 6.02 29

6.33 8.16 13 5.42 7.76 8 8.29 7.68 68

N/A 9.51 N/A N/A 9.18 N/A N/A 9.71 N/A

6.16 7.01 20 5.61 6.27 29 6.22 6.21 54

N/A 6.44 N/A N/A 6.56 N/A N/A 6.28 N/A

5.41 5.02 77 5.58 4.44 90 6.07 3.92 97

5.41 4.67 91 5.06 4.13 90 5.2 3.57 96

7.43 4.57 98 N/A 3.57 N/A 1.05 2.83 7

5.14 4.99 62 5.46 4.58 88 5.84 4.04 95

5.55 4.27 90 4.22 4.1 60 4.33 3.97 71

4.57 2.22 91 3.03 0.63 92 0.22 0.41 403.77 2.1 96 0.09 0.24 12 133.33 0.2 99

2.17 2.87 17 1.33 1.98 15 0.93 1.48 14

0.6 1.09 27 0.16 0.66 10 0.11 0.56 7

0.89 1.56 13 0.5 0.92 18 0.42 0.74 21

3.56 3.95 19 2.65 2.79 39 1.38 2.1 8

4.07 3.97 59 2.83 2.89 45 2.3 2.2 60

N/A 2.1 N/A N/A 0.81 N/A N/A 0.58 N/A

1.77 2.32 25 0.39 0.91 26 0.37 0.81 30


16/31

2.21 3.67 8 2.52 3.13 27 3.17 2.99 41

N/A 5.33 N/A N/A 4.68 N/A N/A 4.79 N/A

2.13 2.94 12 1.27 2.07 11 0.95 1.59 12

1,481 1,336 520

6,123 6,455 2,4850 0 0

250 0 41

13 10 3

495 470 231

422 1,282 442

24 111 101

1,280 1,468 1,086

10,088 11,132 4,909

15,192 15,355 6,922

5,277 5,341 2,471

0 0 0

874 864 42811,323 10,247 4,906

32,666 31,807 14,727

26 25 25

0 0 0

29,850 31,609 31,595

K AND TRUST COMPA INDIANAPOLIS, IN Balance Sheet $

eet $--Page 4 10/8/10 10:16

12/31/2008 12/31/2009 6/30/2010

366,336 368,760 376,194

169,785 169,592 150,009

14,381 16,274 15,690

43,226 41,806 43,910

3,493 2,138 0

N/A N/A N/A

316 341 221

596,905 598,229 585,582

9,658 9,552 11,854

587,563 589,018 573,94979,804 65,556 68,781

38,891 49,549 49,298

0 0 0

13,509 11,249 11,919

88 821 27,174

0 0 0

0 0 0

132,292 127,175 157,172

719,855 716,193 731,121


17/31

20,977 27,620 14,914

17,609 20,499 19,995

3,635 8,027 7,692

0 0 0

0 0 0

14,048 17,909 16,166

776,124 790,248 789,888769,754 783,715 784,087

35,357 49,651 31,241

18,640 9,904 16,126

71,567 117,153 121,961

224,086 242,431 232,701

137,822 124,064 129,493

487,472 543,203 531,522

71,170 88,220 90,559

0 0 0

558,642 631,422 622,08197,879 64,359 68,608

0 0 0

44,121 19,901 19,898

0 0 0

0 0 0

5,750 3,336 3,714

706,392 719,018 714,301

0 0 0

69,732 71,230 75,587

776,124 790,248 789,888

2 1 1

2,934 936 916

4,853 3,966 3,395

127,351 122,388 126,603

348 20,610 18,748

K AND TRUST COMPA INDIANAPOLIS, IN Balance Sheet %

eet Percentage Composition--Page 6 10/8/10 10:16

12/31/2008 12/31/2009 6/30/2010BANK PG 3 PCT BANK PG 3 PCT BANK PG 3 PCT

0.03 0.12 56 0.04 0.18 53 0.05 0.15 57

75.15 72.22 55 77.37 70.54 70 75 67.99 70

0.98 0.92 63 1.24 1.13 66 1.37 1.25 65

74.2 71.59 54 76.17 69.85 69 73.68 67.18 69

0.03 0.59 25 0.06 2.35 15 2.31 3.93 44

0 1.46 12 0.26 1.19 33 0 0.93 35

0 0.09 95 0 0.04 97 0 0.02 97


18/31

0.65 1.16 70 0.57 1.09 69 0.46 0.97 70

18.05 14.83 66 15.62 15.23 57 15.59 16.16 53

92.94 91.87 64 92.68 91.87 60 92.04 91.59 54

2.71 2.37 68 2.24 2.03 64 2.22 1.82 72

2.15 1.92 61 2.49 1.88 71 2.58 1.85 74

0.3 0.24 68 0.73 0.52 69 1 0.73 690 0 91 0 0 91 0 0 94

0 0 88 0 0 86 0 0 87

1.9 3.25 21 1.86 3.26 19 2.16 3.48 22

7.06 8.13 35 7.32 8.13 39 7.96 8.41 45

100 100 99 100 100 99 100 100 99

2.23 0.59 94 2.46 0.47 97 2.98 0.41 98

4.79 6.46 39 4.67 6.33 39 4.74 6.62 39

2.31 3.97 35 1.97 4.48 26 1.81 4.88 22

8.17 15.59 29 12.68 15.58 46 15.37 16.51 5328.21 11.53 90 29.93 11.92 91 29.94 12.78 88

19.43 22.56 36 18.17 22.28 34 15.93 20.61 32

62.9 63.75 43 67.42 64.22 63 67.79 65.29 58

10.48 15.79 23 9.95 16.98 14 11.74 17.17 25

0 0.21 98 0 0.11 98 0 0.08 99

73.38 80.38 15 77.37 81.88 23 79.53 83.18 25

10.36 1.95 96 10.07 1.53 96 8.19 1.33 95

4.36 5.71 43 2.9 4.93 37 2.53 4.02 41

0 0.11 59 0 0.14 59 0 0.06 66

19.37 20.36 49 18.11 20.53 44 17.69 18.21 51

0.66 0.74 46 0.66 0.69 52 0.44 0.62 35

88.76 90.45 18 91 90.62 52 90.69 90.43 50

0 0 93 0 0 94 0 0 94

11.24 9.49 82 9 9.32 49 9.31 9.51 50

100 100 97 100 100 96 100 100 96

1.6 4.2 49 0.96 4.97 39 2.9 3.94 57

1.6 3.84 52 0.09 3.98 32 3.03 3.59 60

0.05 0.17 56 0.05 0.26 53 0.07 0.23 55

K AND TRUST COMPA INDIANAPOLIS, IN Allowance & Loan Mix-a

Credit Allowance and Loan Mix--Page 7 10/8/10 10:16

12/31/2008 12/31/2009 6/30/2010


1.4 0.62 85 0.7 1.12 45 0.76 0.69 67


19/31

21.94 30.09 49 4.59 17.37 23 23.19 9.5 85

1.57 0.53 89 0.91 1.12 56 0.24 0.84 28

1.7 0.58 89 0.99 1.19 56 0.47 0.94 42

0.13 0.05 88 0.08 0.06 70 0.24 0.07 89

1.62 1.43 72 1.6 1.87 47 2.02 1.9 64

1.62 1.42 72 1.6 1.85 48 2.02 1.88 651.01 5.96 8 1.74 3.28 41 8.49 5.35 80

0.41 1.69 15 0.52 1.14 31 0.46 1.17 25

1.08 9.99 16 1.42 4.74 36 7.89 7.94 69

0.11 0.39 38 1.28 0.96 71 0.07 0.76 22

N/A 0 N/A N/A 0.27 N/A N/A 0.16 N/A

0 0.86 40 2.96 2.44 66 1.57 1.93 64

0 0.81 58 6.34 2.33 82 3.29 1.37 80

0 0.71 54 2.38 2.11 67 0.21 1.76 55

0 0 92 0 0.02 86 0 0.02 880.38 0.26 73 0.46 0.65 58 -0.46 0.58 0

0.28 0.15 78 0.48 0.43 68 0.55 0.35 77

0.57 0.25 81 0.64 0.69 65 -2.97 0.57 0

0 0.05 88 0 0.27 78 0 0.21 83

0 0.12 51 1.02 0.35 85 -0.03 0.35 3

0 0.08 66 0.38 0.27 74 0 0.24 56

0 0.1 69 1.4 0.34 87 -0.07 0.33 2

N/A 0 N/A N/A 41.84 N/A N/A -1.69 N/A

0 0.01 85 0 0.05 78 0 0.03 84

5.66 0.7 97 0.34 1.44 30 0.78 0.98 60

N/A 0.14 N/A N/A 0.41 N/A N/A 0.07 N/A1.46 0.86 79 1.23 1.23 60 0.33 0.86 41

N/A 2.42 N/A N/A 3.12 N/A N/A 2.73 N/A

0 0.27 66 -0.05 0.44 5 0 0.2 70

N/A 0 N/A N/A 0 N/A N/A 0 N/A

8,016 9,658 9,552

10,294 5,960 1,389

0 0 0

764 473 6919,530 5,487 698

11,172 5,381 3,000

0 0 0

9,658 9,552 11,854

605,486 600,336 585,474


20/31

K AND TRUST COMPA INDIANAPOLIS, IN Concentrations of Credit

Concentrations of Credit--Page 7B 10/8/10 10:16

12/31/2008 12/31/2009 6/30/2010


154.4 111.46 71 85.53 84.9 58 84.82 70.1 65

0.79 29.45 6 39.06 17.88 83 34.41 13.46 87153.61 78.36 82 46.48 63.5 45 50.41 53.39 56

138.58 174.56 39 168.83 180.48 47 164.26 173.06 49

87.22 26.28 94 113.93 27.47 96 112.71 26.15 97

191.42 279.53 22 215.95 291.17 27 217.88 286.37 28

6.56 17.8 49 6.92 19.7 48 7.99 19.89 50

15.28 17.73 52 34.79 20.53 79 43.39 20.38 85

169.59 230.39 29 174.24 237.86 31 166.51 233.1 30

38.37 112.74 11 100.2 118.68 41 106.92 115.79 46

131.22 112.49 63 74.04 115.67 31 59.59 114.5 24

484.4 591.04 28 470.32 569.34 30 466.96 541.4 35

0 0.77 95 0 0.68 95 0 0 9457.16 9.98 90 53.32 11.06 88 54.5 10.96 89

204.64 104.14 90 210.31 97.31 91 180.51 91.36 89

19.02 27.2 46 20.76 26.03 51 19.48 23.99 51

0 0.48 67 0 0.5 69 0 0.45 69

19.87 3.25 93 5.99 3.65 73 5.69 3.45 73

0 0.42 99 0 0.24 99 0 0.25 99

4.62 2.3 79 2.73 2.05 75 0 2.05 16

0 0.44 79 0 0.34 80 0 0.31 80

0 0.04 99 0 0 99 0 0.01 99

0 1.05 71 0 0.99 70 0 0.94 70

300.9 260.06 62 194.37 233.5 43 187.8 217.05 45

339.27 380.09 43 294.56 356 38 294.72 335.84 43

19.55 14.47 70 11.2 11.33 54 11.66 9.82 64

38.1 33.71 61 25.46 31.41 37 25.83 30.58 40

42.96 49.54 36 38.59 48.38 28 40.53 47.99 33

0 0.91 33 0 0.62 41 N/A 0 N/A

0 0.05 84 0 0.02 85 N/A 0 N/A

3 0.91 83 2.16 0.36 90 N/A 0 N/A

3 1.08 81 2.16 0.46 88 N/A 0 N/A

0 0.69 45 0 0.46 50 N/A 0 N/A

60 13 19


21/31

23,797 12,463 5,027

23,857 12,476 5,046

5,857 378 566

0 0 0

0 0 0

0 0 0

0 N/A N/A

275 280 250

2,389 N/A N/A

3,635 1,225 909

12/31/2008 12/31/2009 6/30/2010


8.43 8 55 8.27 8 61 7.59 7 59

0 0.02 94 0 0.01 94 0 0 94

0 0 94 0 0 94 0 0 94356.59 380.73 47 297.21 360.01 41 278.05 333.7 41

-26.61 5.52 6 2.56 0.43 41 5.54 5.33 43

11.04 4.46 86 0 2.8 32 0 2.11 48

-37.65 0.24 4 2.56 -3.01 57 5.54 2.36 63

N/A 58 N/A 0 49 17 0 27 38

8.98 9.25 52 9.01 9.23 49 9.57 9.66 52

-33.92 5 4 2.15 5 34 14.13 6 79

-26.95 -4.33 7 0.33 -0.64 50 9.75 2 77

0.71 0 89 1.13 0 90 1.12 0 90

0 3.38 58 0 2.31 63 0 2.21 63

0 0.02 97 0 0.02 97 0 0.03 97

6 1 95 4.67 0 94 3.83 0 94

6.7 4.58 72 5.8 3.5 73 4.96 3.34 71

9.96 11 35 10.23 12 27 11.02 13 31

11.2 13 35 11.48 13 26 12.28 14 29

8.78 9 58 8.95 9 59 9.25 9 60

0 3 36 0 2 40 0 2 44

0 0 0

0 3,837 3,904

30,992 57,580 49,887

30,992 61,417 53,791

0 0 0


22/31

676,158 683,540 659,346

1,289 1,009 3,609

0 0 0

0 0 0

674,870 682,532 655,738

4.58 2.63 79 4.35 4.27 60 5.67 4.5 69


23/31


24/31


25/31

Percent Change1 Quarter 1 Year

-3.72 -8.42

1.01 -3.53

-10.91 -34.74

0.24 18.06

-6.16 -59.1

N/A N/A

N/A -6.81

-2.72 -8.29

-24.76 -31.04

-2.35 -7.95-0.85 55.57

0.82 614.25

N/A N/A

0.07 341.94

1.26 74.64

N/A N/A


26/31

79.42 -0.66

-0.12 -9.63

52.62 64.58

-8.28 -1.23

-0.72 2.652.19 2.9

5.33 6.45

-1.6 -6.97

46.89 N/A

2.84 -8.06

-0.57 -4.74

3.94 1.29

-10.3 18.14

N/A N/A

0.51 4.5

-3.23 -44.53

-0.48 -78.32

N/A N/A

N/A N/A

17.66 8.44

-0.86 2.78

N/A N/A

0.42 1.61

-0.72 2.65

-6.76 731.7

-4.68 -28.42

-0.2 116.46

22.09 -1.97


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Documents

Income Analysis 2010