Savannah Bancorp Reports Decline in Third Quarter EPS and Declares Regular Quarterly Dividend


SAVANNAH, Ga., Oct. 16, 2007 (PRIME NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported net income for the third quarter 2007 of $2,381,000, a decrease of 8.1 percent from $2,590,000 in the third quarter 2006. Net income per diluted share was 40 cents compared to 44 cents per diluted share in the third quarter of 2006, a decrease of 9.1 percent. Prior period per share amounts have been restated to reflect the 5-for-4 stock split in December 2006. The decline in third quarter earnings results primarily from a higher provision for credit losses and a lower net interest margin due in part to higher deposit costs and higher nonaccrual loan balances.

The Company completed the previously announced acquisition of Minis & Co., Inc. ("Minis") on August 31, 2007. Minis is a registered investment advisory firm based in Savannah, Georgia with approximately $500 million in assets under management. Minis provides fee-only investment services and will operate as a separate subsidiary of the Company.

Return on average equity was 13.04 percent, return on average assets was 1.08 percent and the efficiency ratio was 54.65 percent in the third quarter 2007.

Total assets increased 12 percent to $889 million at September 30, 2007, up $95 million from $794 million a year earlier. Loans, excluding loans held for sale, were $778 million compared to $684 million one year earlier, an increase of 14 percent. Deposits totaled $746 million and $662 million at September 30, 2007 and 2006, respectively, an increase of 13 percent.

The allowance for credit losses was 1.26% at September 30, 2007 and 2006. Nonperforming assets were $7,908,000 or 1.02 percent of total loans and other real estate at September 30, 2007 compared to $3,637,000 or 0.53 percent at September 30, 2006. Third quarter net charge-offs were $321,000 for 2007 compared to net charge-offs of $340,000 in the same period in 2006. The provision for credit losses for the third quarter of 2007 was $635,000 compared to $360,000 for the third quarter of 2006. Net charge-offs were $686,000 for the first nine months of 2007 compared to net charge-offs of $337,000 in the first nine months of 2006. The provision for credit losses for the first nine months of 2007 was $1,530,000 compared to $1,135,000 for the first nine months of 2006.

John Helmken, President and CEO, said, "The current slowdown in the real estate markets has affected several of our individual borrowers who are dependent on the sale of residential real estate to liquidate their loans, particularly a few older loans in the Hilton Head/Bluffton market. While we are experiencing an increase in nonperforming assets and in net charge-offs in 2007, our conservative underwriting history is serving us well. Credit problems to date are relatively small and isolated and are primarily related to the slower real estate market. We began decreasing our exposure to construction loans 18 months ago and that has proved to be a prudent decision. "

Helmken added, "While our nonperforming loans and charge-offs are below peer and industry levels, they are unacceptable for us. We have addressed those issues head on and do not expect them to distract us as we close out 2007 and step cautiously but optimistically into 2008."

For the first nine months of 2007, net income was $7,283,000 versus $7,479,000 in the first nine months of 2006. Earnings per diluted share were $1.23 and $1.27 in the first nine months of 2007 and 2006, respectively. Return on average equity was 13.94 percent, return on average assets was 1.14 percent, net interest margin was 4.08 percent and the efficiency ratio was 54.60 percent in the first nine months of 2007.

Net interest income increased 2.3 percent in the third quarter 2007 over the third quarter 2006. Third quarter net interest margin declined to 3.95 percent in 2007 from 4.42 percent in 2006 primarily due to higher funding costs and changes in the deposit mix. Noninterest income increased $108,000, or 10 percent in the third quarter of 2007 versus the same period in 2006 due to higher trust and investment management fees of $215,000 partially offset by lower mortgage related income and lower service charges on deposit accounts. Noninterest expense increased $231,000 or 4.7 percent in the third quarter 2007 compared to the third quarter 2006. Higher personnel, occupancy, equipment and information technology costs were partially offset by lower other operating expenses.

Today, the Board of Directors approved a regular quarterly cash dividend of 12 cents per share payable on November 19, 2007 to shareholders of record on October 26, 2007.

The Savannah Bancorp, Inc. (SAVB), a bank holding company for The Savannah Bank, N.A., Bryan Bank & Trust (Richmond Hill, Georgia), Harbourside Community Bank (Hilton Head Island, SC) and Minis & Co., Inc., is headquartered in Savannah, Georgia. SAVB began operations in 1990. Its primary businesses include deposit, credit, trust, investment and mortgage origination services provided to local customers.

This press release may contain forward-looking statements as defined by federal securities law which involve significant risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in the economic scenario: significant changes in regulatory requirements; and significant changes in securities markets. The Savannah Bancorp, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Any such statements are made in reliance on the safe harbor protections provided under the Private Securities Act of 1995.



              The Savannah Bancorp, Inc. and Subsidiaries
                  Third Quarter Financial Highlights
                      September 30, 2007 and 2006
                  ($ in thousands, except share data)
                              (Unaudited)

                                                                  %
 Balance Sheet Data at September 30          2007       2006    Change
 ---------------------------------------------------------------------
 Total assets                              $889,196   $793,746     12
 Interest-earning assets                    844,287    756,095     12
 Loans                                      778,262    683,926     14
 Allowance for credit losses                  9,842      8,611     14
 Non-accruing loans                           5,028      1,371    267
 Loans past due 90 days - accruing            1,728        466    271
 Other real estate owned                      1,152      1,800    (36)
 Deposits                                   745,878    662,381     13
 Interest-bearing liabilities               717,357    618,228     16
 Shareholders' equity                        75,164     64,369     17
 Allowance for credit losses to total loans    1.26%      1.26%    --
 Nonperforming assets to total loans and
  OREO                                         1.02%      0.53%    93
 Loan to deposit ratio                       104.34%    103.25%   1.1
 Equity to assets                              8.45%      8.11%   4.2
 Tier 1 capital to risk-weighted assets       11.04%     11.30%  (0.6)
 Total capital to risk-weighted assets        12.29%     12.55%  (0.6)
 Book value per share (a)                  $  12.70   $  11.15     14
 Outstanding shares (a)                       5,917      5,771    2.5
 Market value per share (a)                $  24.69   $  26.64   (7.3)
 ---------------------------------------------------------------------

 Performance Ratios for the Third Quarter
 ---------------------------------------------------------------------
 Net income                                $  2,381   $  2,590   (8.1)
 Return on average assets                      1.08%      1.34%   (19)
 Return on average equity                     13.04%     16.46%   (21)
 Net interest margin                           3.95%      4.42%   (11)
 Efficiency ratio                             54.65%     53.90%   1.4

 Per share data: (a)
 Net income - basic                        $   0.41   $   0.45   (8.9)
 Net income - diluted                      $   0.40   $   0.44   (9.1)
 Dividends                                 $  0.120   $  0.112    7.1

 Average shares: (a)
 Basic                                        5,862      5,761    1.8
 Diluted                                      5,928      5,886    0.7
 ---------------------------------------------------------------------

 Performance Ratios for the First Nine Months
 ---------------------------------------------------------------------
 Net income                                $  7,283   $  7,479   (2.6)
 Return on average assets                      1.14%      1.32%   (14)
 Return on average equity                     13.94%     16.51%   (16)
 Net interest margin                           4.08%      4.50%  (9.3)
 Efficiency ratio                             54.60%     54.06%   1.0

 Per share data: (a)
 Net income - basic                        $   1.25   $   1.30   (3.8)
 Net income - diluted                      $   1.23   $   1.27   (3.1)
 Dividends                                 $  0.360   $  0.336    7.1

 Average shares: (a)
 Basic                                        5,823      5,760    1.1
 Diluted                                      5,905      5,889    0.3

 (a) Share and per share amounts have been restated to reflect the
 effect of a 5-for-4 stock split in December 2006


              The Savannah Bancorp, Inc. and Subsidiaries
                      Consolidated Balance Sheets
                      September 30, 2007 and 2006
                              (Unaudited)
                  ($ in thousands, except share data)

                                                     September 30,
 ---------------------------------------------------------------------
                                                  2007        2006
 ---------------------------------------------------------------------
 Assets
 Cash and due from banks                        $  16,211   $  17,036
 Interest-bearing deposits                          2,073       3,916
 Federal funds sold                                 6,747      17,098
 ---------------------------------------------------------------------
   Cash and cash equivalents                       25,031      38,050
 Securities available for sale, at fair value
  (amortized cost of $62,192 in 2007 and
  $51,684 in 2006)                                 62,171      51,276
 Loans held for sale                                   41         832
 Loans, net of allowance for credit losses
  of $9,842 in 2007 and $8,611 in 2006            768,420     675,315
 Premises and equipment, net                        6,525       6,135
 Other real estate owned                            1,152       1,800
 Bank-owned life insurance                          5,926       5,710
 Goodwill and other intangible assets               3,644          --
 Other assets                                      16,286      14,628
 ---------------------------------------------------------------------
     Total assets                               $ 889,196   $ 793,746
 =====================================================================

 Liabilities
 Deposits:
   Noninterest-bearing                          $  90,342   $ 105,084
   Interest-bearing demand                        107,879     100,972
   Savings                                         17,043      18,272
   Money market                                   188,947     144,771
   Time deposits                                  341,667     293,282
 ---------------------------------------------------------------------
     Total deposits                               745,878     662,381
 Short-term borrowings                             48,453      37,229
 FHLB advances - long-term                          3,058      13,392
 Subordinated debt                                 10,310      10,310
 Other liabilities                                  6,333       6,065
 ---------------------------------------------------------------------
     Total liabilities                            814,032     729,377
 ---------------------------------------------------------------------
 Shareholders' equity
 Common stock, par value $1 per share:
  authorized 20,000,000 shares; issued
  5,916,797 and 4,617,022 shares in 2007 and
  2006, respectively                                5,917       4,617
 Preferred stock, par value $1 per share:
  authorized 10,000,000 shares, none issued            --          --
 Additional paid-in capital                        38,260      36,659
 Retained earnings                                 30,870      23,815
 Treasury stock, 318 and 255 shares
  in 2007 and 2006, respectively                       (4)         (4)
 Accumulated other comprehensive income
  (loss), net                                         121        (718)
 ---------------------------------------------------------------------
     Total shareholders' equity                    75,164      64,369
 ---------------------------------------------------------------------
     Total liabilities and shareholders' equity $ 889,196   $ 793,746
 =====================================================================

               The Savannah Bancorp, Inc. and Subsidiaries
                   Consolidated Statements of Income
              For the Nine Months and Five Quarters Ending 
                    September 30, 2007 and 2006
               ($ in thousands, except per share data)

 -----------------------------------------------------------------
                                              (Unaudited)
 -----------------------------------------------------------------
                                       For the Nine Months Ended   
 -----------------------------------------------------------------
                                                      
                                         September 30,
                                    ---------------------     %
                                        2007      2006       Chg 
 -----------------------------------------------------------------
 Interest and dividend income
 Loans, including fees               $ 44,420    $ 37,478      19
 Loans held for sale                       84         506     (83)
 Investment securities                  2,140       1,641      30
 Deposits with banks                      245         166      48
 Federal funds sold                       426         441    (3.4)
 --------------------------------------------------------
  Total interest and dividend
   income                              47,315      40,232      18
 --------------------------------------------------------
 Interest expense
 Deposits                              19,534      13,588      44
 Short-term borrowings                  1,889       1,240      52
 FHLB advances                            367         610     (40)
 Subordinated debt                        629         602     4.5
 --------------------------------------------------------
  Total interest expense               22,419      16,040      40
 --------------------------------------------------------
 Net interest income                   24,896      24,192     2.9
 Provision for credit losses            1,530       1,135      35
 --------------------------------------------------------
 Net interest income after the
  provision for credit losses          23,366      23,057     1.3
 --------------------------------------------------------
 Noninterest income
 Service charges on deposits            1,034       1,137    (9.1)
 Mortgage related income, net             517         686     (25)
 Trust and investment
  management fees                         744         488      53
 Other operating income                   922         902     2.2
 --------------------------------------------------------
  Total noninterest income              3,217       3,213     0.1
 --------------------------------------------------------
 Noninterest expense
 Salaries and employee benefits         8,721       8,193     6.4
 Occupancy and equipment                2,336       2,152     8.6
 Information technology                 1,194       1,108     7.8
 Other operating expense                3,099       3,363    (7.9)
 --------------------------------------------------------
  Total noninterest expense            15,350      14,816     3.6
 --------------------------------------------------------
 Income before income taxes            11,233      11,454    (1.9)
 Income tax expense                     3,950       3,975    (0.6)
 --------------------------------------------------------
 Net income                          $  7,283    $  7,479    (2.6)
 ========================================================
 Net income per share: (a)

 Basic                               $   1.25    $   1.30    (3.8)
 ========================================================
 Diluted                             $   1.23    $   1.27    (3.1)
 ========================================================
 Average basic shares (000s) (a)        5,823       5,760     1.1
 Average diluted shares (000s) (a)      5,905       5,889     0.3
 Performance Ratios
 Return on average equity               13.94%      16.51%    (16)
 Return on average assets                1.14%       1.32%    (14)
 Net interest margin                     4.08%       4.50%   (9.3)
 Efficiency ratio                       54.60%      54.06%    1.0
 Average equity                        69,856      60,575      15
 Average assets                       855,336     756,582      13
 Average interest-earning assets      819,640     721,755      14

                   ---------------------------------------------------
                                      (Unaudited)
                   ---------------------------------------------------
                               2007                 2006         
                   -------------------------  ----------------  Q3-07/
                    Third   Second    First   Fourth    Third   Q3-06
                   Quarter  Quarter  Quarter  Quarter  Quarter  % Chg
 ----------------  ---------------------------------------------------
 Interest and
  dividend income
 Loans, including
  fees             $15,196  $14,872  $14,351  $14,063  $13,209    15
 Loans held for
  sale                  15       35       34       52       64   (77)
 Investment
  securities           794      726      620      599      572    39
 Deposits with
  banks                 44      119       83      127       65   (32)
 Federal funds
  sold                 130      125      172      116      166   (22)
 ----------------  -------------------------------------------
  Total interest
   and dividend
   income           16,179   15,877   15,260   14,957   14,076    15
 ----------------  -------------------------------------------
 Interest expense
 Deposits            6,963    6,479    6,092    5,754    5,251    33
 Short-term
  borrowings           647      618      625      561      326    99
 FHLB advances          48      155      164      168      166   (71)
 Subordinated debt     213      213      203      214      214  (0.5)
 ----------------  -------------------------------------------
  Total interest
   expense           7,871    7,465    7,084    6,697    5,957    32
 ----------------  -------------------------------------------
 Net interest
  income             8,308    8,412    8,176    8,260    8,119   2.3
 Provision for
  credit losses        635      395      500      450      360    76
 ----------------  -------------------------------------------
 Net interest
  income after the
  provision for
  credit losses      7,673    8,017    7,676    7,810    7,759   1.1
 ----------------  -------------------------------------------
 Noninterest
  income
 Service charges
  on deposits          339      348      347      389      384   (12)
 Mortgage related
  income, net          141      166      210      200      203   (31)
 Trust and
  investment
  management fees      379      189      176      170      164   131
 Other operating
  income               305      297      319      331      305    --
 ----------------  -------------------------------------------
  Total
   noninterest
   income            1,164    1,000    1,052    1,090    1,056  10.2
 ----------------  -------------------------------------------
 Noninterest
  expense
 Salaries and
  employee
  benefits           2,919    2,838    2,964    2,659    2,717   7.4
 Occupancy and
  equipment            796      782      758      768      755   5.4
 Information
  technology           388      381      425      417      372   4.3
 Other operating
  expense            1,073    1,025    1,000    1,293    1,101  (2.5)
 ----------------  -------------------------------------------
  Total
   noninterest
   expense           5,176    5,026    5,147    5,137    4,945   4.7
 ----------------  -------------------------------------------
 Income before
  income taxes       3,661    3,991    3,581    3,763    3,870   1.3
 Income tax
  expense            1,280    1,400    1,270    1,240    1,280   7.8
 ----------------  -------------------------------------------
 Net income        $ 2,381  $ 2,591  $ 2,311  $ 2,523  $ 2,590  (8.1)
 ================  =========================================== 
 Net income per
  share: (a)

 Basic             $   .41  $   .44  $   .40  $   .44  $   .45  (8.9)
 ================  =========================================== 
 Diluted           $   .40  $   .44  $   .39  $   .43  $   .44  (9.1)
 ================  ===========================================
 Average basic
  shares (000s)
  (a)                5,862    5,824    5,783    5,779    5,761   1.8
 Average diluted
  shares (000s)
  (a)                5,928    5,899    5,890    5,884    5,886   0.7
 Performance
  Ratios
 Return on
  average equity     13.04%   14.94%   13.90%   15.33%   16.46%  (21)
 Return on average
  assets              1.08%    1.23%    1.12%    1.24%    1.34%  (19)
 Net interest
  margin              3.95%    4.13%    4.17%    4.26%    4.42%  (11)
 Efficiency ratio    54.65%   53.40%   55.78%   54.94%   53.90%  1.4
 Average equity     72,436   69,583   67,434   65,297   62,435    16
 Average assets    875,532  855,989  834,033  809,491  767,649    14
 Average interest-
  earning assets   837,596  821,253  799,678  772,192  732,405    27

 (a) Share and per share amounts have been restated to reflect the 
     effect of a 5-for-4 stock split in December 2006.


                     The Savannah Bancorp, Inc. & Subsidiaries
                            Loan Concentration Schedule
                     September 30, 2007 and December 31, 2006

                                      % of              % of  % Dollar
 ($ in thousands)           9/30/07   Total   12/31/06  Total   Change
 ---------------------------------------------------------------------
 Non-residential real 
  estate
  Owner-occupied           $ 114,533    15   $  90,848    13      26
  Non owner-occupied         100,437    13      98,032    13       2
  Construction                29,052     4      22,128     3      31
  Commercial land and lot 
   development                36,202     5      35,610     5       2
 ------------------------------------------------------------
 Total non-residential real
  estate                     280,224    37     246,618    34      14
 ------------------------------------------------------------
 Residential real estate
  Owner-occupied - 1-4 
   family                     81,784    10      87,965    12      (7)
  Non owner-occupied - 1-4 
   family                    114,208    15 (a) 101,397    14      13
  Construction                61,320     8 (a)  77,417    11     (21)
  Residential land and lot 
   development               111,745    14      93,060    13      20
  Home equity lines           40,881     5      40,794     6      --
 ------------------------------------------------------------
 Total residential real 
  estate                     409,938    52     400,633    56       2
 ------------------------------------------------------------
 Total real estate loans     690,162    89     647,251    90       7
 Commercial                   70,167     9      57,740     8      22
 Consumer                     18,450     2      16,624     2      11
 Unearned fees, net             (517)   --        (693)   --     (25)
 ------------------------------------------------------------
 Total loans, net of 
  unearned fees            $ 778,262   100   $ 720,922   100       8
 ============================================================

(a) Includes a reclassification of $33 million of completed construction loans from the construction category to the non-owner occupied 1-4 family category to conform to the September 30, 2007 presentation as required by regulatory guidelines.

During the first nine months of 2007, residential real estate loans grew two percent and non-residential real estate loans increased 14 percent. During 2006, decisions were made to de-emphasize residential construction loan growth as evidenced by the decline in the construction loan portfolio during 2007.

Commercial and residential land and lot development portfolios generally represent loans to experienced real estate developers and financially strong, long-term real estate investors who have the financial strength to service the debt during the slower real estate markets. The residential lot loans include some high value lots in the Hilton Head/Bluffton, SC market where values have declined in certain developments. There does not appear to be any significant loss exposure to any one borrower or development in this market.



              The Savannah Bancorp, Inc. and Subsidiaries
          Average Balance Sheet and Rate/Volume Analysis - 
                     Third Quarter, 2007 and 2006


                                               Taxable-Equivalent
  Average Balance   Average Rate                   Interest (a)
 --------------------------------                ---------------
    QTD     QTD     QTD     QTD                    QTD     QTD   Vari-
  9/30/07 9/30/06 9/30/07 9/30/06                9/30/07 9/30/06 Ance
 ---------------------------------------------------------------------
  ($ in thousands)      (%)                         ($ in thousands)
                                  Assets

                                  Interest-bearing
 $  3,370 $  5,035  5.18    5.12   deposits         $ 44   $ 65   ($21)
                                  Investments -
   60,393   49,344  5.13    4.45   taxable           781    554    227
                                  Investments -
    2,320    2,110  6.16    7.71   non-taxable        36     41     (5)
                                  Federal funds
   10,183   11,584  5.06    5.69   sold              130    166    (36)
                                  Loans held for
      825    3,267  7.21    7.77   sale               15     64    (49)
  760,495  661,065  7.94    7.94  Loans (b)       15,212 13,225  1,987
 -----------------                                --------------------
                                  Total interest- 
  837,586  732,405  7.68    7.65   earning assets 16,218 14,115  2,103
                    ------------                  --------------------
                                  Noninterest-
   37,946   35,244                 earning assets
 -----------------
 $875,532 $767,649                Total assets
 =================
                                  Liabilities
                                   and equity
                                  Deposits
 $114,157 $ 95,279  2.04    1.42   NOW accounts    $ 586  $ 341  $ 245
                                   Savings
   17,722   18,309  0.99    1.00    accounts          44     46     (2)
                                   Money market
  175,681  140,731  4.44    4.08    accounts       1,964  1,446    518
                                   CDs, $100M
  135,026  110,104  5.38    4.86    or more        1,831  1,350    481
   76,391   76,269  4.97    4.16   CDs, broker       956    799    157
                                   Other time
  123,740  110,752  5.07    4.55    deposits       1,582  1,269    313
 -----------------                                --------------------
                                  Total interest-
                                   bearing 
  642,717  551,444  4.30    3.78   deposits        6,963  5,251  1,712 

                                  FHLB advances - 
    3,108   13,482  6.13    4.88   long-term          48    166   (118)
                                  Short-term
   50,760   26,123  5.06    4.95   borrowings        647    326    321
                                  Subordinated
   10,310   10,310  8.20    8.23   debt              213    214     (1)
 -----------------                                --------------------
                                  Total interest-
                                   bearing                             
  706,895  601,359  4.42    3.93   liabilities     7,871  5,957  1,914
                    ------------                  --------------------
                                  Noninterest-
   88,654   96,497                 bearing deposits
    7,547    7,358                Other liabilities
                                  Shareholders'
   72,436   62,435                 equity
 -----------------
                                  Liabilities and
 $875,532 $767,649                 equity
 =================
                                  Interest rate
                    3.26    3.72   spread
                    ============
                                  Net interest
                    3.95    4.42   margin
                    ============
                                  Net interest
                                   income         $8,347 $8,158  $ 189
                                                  ====================
                                  Net earning
 $130,691 $131,046                 assets
 =================
 $731,371 $647,941                Average deposits
 =================
                                  Average cost of
                    3.78    3.22   deposits
                    ============
                                  Average loan to 
      104%     102%                deposit ratio
 =================

 (a) The taxable equivalent adjustment results from tax exempt 
     income less non-deductible TEFRA interest expense and was $39 
     in the third quarter 2007 and 2006.

 (b) Average nonaccruing loans have been excluded from total average 
     loans and categorized in noninterest-earning assets.

              The Savannah Bancorp, Inc. and Subsidiaries
          Average Balance Sheet and Rate/Volume Analysis -
                  First Nine Months 2007 and 2006


                                                Taxable-Equivalent
  Average Balance   Average Rate                   Interest (a)
 --------------------------------                ---------------
   YTD      YTD     YTD     YTD                    YTD     YTD   Vari-
 9/30/07  9/30/06 9/30/07 9/30/06                9/30/07 9/30/06 Ance
 ---------------------------------------------------------------------
  ($ in thousands)      (%)                     ($ in thousands)
                                 Assets
                                 Interest-bearing
 $  6,246 $  4,652  5.24    4.77  deposits         $ 245   $ 166 $  79
                                 Investments -
   56,146   47,540  4.99    4.42  taxable          2,095   1,571   524
                                 Investments - 
    2,107    2,513  7.23    7.45  non-taxable        114     140   (26)
                                 Federal funds 
   10,928   11,710  5.21    5.02  sold               426     440   (14)
                                 Loans held for 
    1,510    9,742  7.44    6.94  sale                84     506  (422)
  742,703  645,598  8.01    7.77 Loans (b)        44,468  37,527 6,941
 -----------------                               ---------------------
                                 Total interest
  819,640  721,755  7.74    7.47  earning assets  47,432  40,350 7,082
                    ------------                 ---------------------
                                 Noninterest-
   35,696   34,827                earning assets
 -----------------
 $855,336 $756,582               Total assets
 =================

                                 Liabilities and equity
                                 Deposits
 $114,477 $ 91,856  2.05    1.20  NOW accounts   $ 1,752   $ 824  $928
                                  Savings
   18,301   19,356  1.00    0.99   accounts          137     144    (7)
                                  Money market 
  162,753  132,957  4.37    3.59   accounts        5,324   3,568 1,756
                                  CDs, $100M or
  125,933  102,138  5.35    4.53   more            5,038   3,464 1,574
   74,866   81,930  4.83    3.77  CDs, broker      2,706   2,311   395
                                  Other time 
  121,651  103,322  5.03    4.24   deposits        4,577   3,277 1,300
 -----------------                               ---------------------
                                 Total interest- 
                                  bearing        
  617,981  531,559  4.23    3.42  deposits        19,534  13,588 5,946
                                 FHLB advances - 
    9,454   16,584  5.19    4.92  long-term          367     610  (243)
                                 Short-term 
   49,416   33,863  5.11    4.89  borrowings       1,889   1,239   650
                                 Subordinated 
   10,310   10,310  8.16    7.81  debt               629     602    27
 -----------------                               ---------------------
                                 Total interest-
                                  bearing
  687,161  592,316  4.36    3.62  liabilities     22,419  16,039 6,380
                    ------------                 ---------------------
                                 Noninterest-
   91,527   96,201                bearing deposits
    6,792    7,490               Other liabilities
                                 Shareholders' 
   69,856   60,575                equity
 -----------------
                                 Liabilities and 
 $855,336 $756,582                equity
 =================
                                 Interest rate 
                    3.38    3.85  spread
                    ============
                                 Net interest 
                    4.08    4.50  margin
                    ============
                                 Net interest 
                                  income         $25,013 $24,311 $ 702
                                                 =====================
                                 Net earning 
 $132,479 $129,439                assets
 =================
                                 Average 
 $709,508 $627,760                deposits
 =================
                                 Average cost
                    3.68    2.89  of deposits
                    ============
                                 Average loan to
      105%     103%               deposit ratio
 =================



 (a) The taxable equivalent adjustment results from tax exempt income 
     less non-deductible TEFRA interest expense and was $117 $119 in 
     the first nine months 2007 and 2006, respectively.

 (b) Average nonaccruing loans have been excluded from total average 
     loans and categorized in noninterest-earning assets.


            

Coordonnées