Savannah Bancorp Reports First Quarter Earnings and Declares Regular Quarterly Dividend


SAVANNAH, Ga., April 22, 2008 (PRIME NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported net income for the first quarter 2008 of $1,704,000 compared to $2,311,000 in the first quarter 2007. Net income per diluted share was 29 cents compared to 39 cents per diluted share in the first quarter of 2007, a decrease of 26 percent. The decline in first quarter earnings results primarily from a higher provision for loan losses and a lower net interest margin in 2008 as compared to 2007.

First quarter 2008 earnings include revenues and expenses of 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 operates as a separate subsidiary of the Company.

Total assets increased 11 percent to $946 million at March 31, 2008, up $98 million from $848 million a year earlier. Loans, excluding loans held for sale, were $835 million compared to $730 million one year earlier, an increase of 14 percent. Deposits totaled $771 million and $712 million at March 31, 2008 and 2007, respectively, an increase of 8 percent.

The allowance for loan losses was $12,128,000, or 1.45 percent of loans at March 31, 2008 compared to $9,220,000 or 1.26 percent of total loans a year earlier. Nonperforming assets were $19,536,000 or 2.33 percent of total loans and other real estate at March 31, 2008 compared to $2,012,000 or 0.28 percent at March 31, 2007. First quarter net charge-offs were $1,806,000 compared to net charge-offs of $234,000 in the same period in 2007. The provision for loan losses for the first quarter of 2008 was $1,070,000 compared to $500,000 for the first quarter of 2007.

John Helmken, President and CEO, said, "Our earnings, capital and loan loss reserves remain strong. During the first quarter, we completed some loan workout situations without significant losses, however, we also booked a loan loss provision of $1.1 million and charged-off $1.8 million based on our current period analysis of the nonperforming and impaired loans. The loss provisions for the charged-off loans were recorded in the fourth quarter 2007. Nonperforming loans were approximately level for the first quarter 2008 versus the fourth quarter 2007, but were substantially higher than the first quarter 2007. While we continue to commit the resources and senior management oversight to our loan portfolio, the level of future charge-offs and loan loss provisions will be determined, to some degree, by the timing and extent of the recovery in our local real estate markets, especially the Hilton Head and Bluffton areas."

Helmken added, "The vast majority of our resources are focused on attracting prospects and retaining customers who are not impacted significantly by the slow real estate market. Many businesses and professionals -- our primary customer and prospect base -- are doing very well. We are and want to continue to be their bank. We continue to be pleased to be located on the southeast Atlantic coast with a major port and transportation hub as well as outstanding health care, military and education professionals and institutions."

Net interest income decreased 1.3 percent in the first quarter 2008 over the first quarter 2007. First quarter net interest margin declined to 3.70 percent in 2008 from 4.17 percent in 2007 primarily due to lower loan market rates, competitive deposit pricing and growth in higher cost deposits. The first quarter 2008 net interest margin was consistent with the 3.72 percent margin for the fourth quarter 2007, despite a 200 basis point decline in the federal funds target rate.

Noninterest income increased $711,000, or 68 percent in the first quarter of 2008 versus the same period in 2007 due to higher trust and investment management fees of $548,000 and a non-operating hedging related gain of $284,000 partially offset by $147,000 in lower mortgage related income.

Noninterest expense increased to $6,150,000, up $1,003,000 or 19 percent in the first quarter 2008 compared to the first quarter 2007. First quarter 2008 noninterest expense included $344,000 of expenses related to Minis. Noninterest expense also included $140,000 of higher FDIC insurance premiums and approximately $180,000 of costs related to other real estate and loan costs. The remainder of the increase was due to higher personnel, occupancy and equipment, and other expense.

Today, the Board of Directors approved a regular quarterly cash dividend of 12.5 cents per share payable on May 19, 2008 to shareholders of record on May 2, 2008.

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

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements identified by words or phrases such as "potential," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "assume," "outlook," "continue," "seek," "plans," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. These statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties. There can be no assurance that these transactions will occur or that the expected benefits associated therewith will be achieved. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond our ability to control or predict. These factors include, but are not limited to, those found in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.



              The Savannah Bancorp, Inc. and Subsidiaries
                  First Quarter Financial Highlights
                        March 31, 2008 and 2007
                  ($ in thousands, except share data)
                              (Unaudited)

 Balance Sheet Data at                                            %
  March 31                            2008          2007        Change
 ---------------------------------------------------------------------
 Total assets                      $ 945,637     $ 848,292        11
 Interest-earning assets             886,485       812,702       9.1
 Loans                               834,734       730,387        14
 Allowance for loan losses            12,128         9,220        32
 Non-accruing loans                   16,915           400        NM
 Loans past due 90 days -
  accruing                               596           990       (40)
 Other real estate owned               2,025           622       226
 Net charge-offs                       1,806           234        NM
 Deposits                            771,263       712,170       8.3
 Interest-bearing liabilities        771,824       674,522        14
 Shareholders' equity                 78,885        68,501        15
 Allowance for loan losses to
  total loans                           1.45%         1.26%       15
 Nonperforming assets to total
  loans and other real estate
  owned                                 2.33%         0.28%      732
 Loan to deposit ratio                108.23%       102.56%      5.5
 Equity to assets                       8.34%         8.08%      3.2
 Tier 1 capital to
  risk-weighted assets                 10.29%        11.24%     (8.5)
 Total capital to risk-weighted
  assets                               11.54%        12.49%     (7.6)
 Outstanding shares                    5,931         5,790       2.4
 Book value per share              $   13.30     $   11.83        12
 Tangible book value per share     $   12.93     $   11.83       9.3
 Market value per share            $   17.50     $   27.00       (35)

 Performance Data for the First
  Quarter
 ---------------------------------------------------------------------
 Net income                        $   1,704     $   2,311       (26)
 Return on average assets               0.73%         1.12%      (35)
 Return on average equity               8.76%        13.90%      (37)
 Net interest margin                    3.70%         4.17%      (11)
 Efficiency ratio                      62.54%        55.78%       12
 
 Per share data:
 Net income - basic                $    0.29     $    0.40       (28)
 Net income - diluted              $    0.29     $    0.39       (26)
 Dividends                         $   0.125     $   0.120       4.2

 Average shares (000s):
 Basic                                 5,928         5,782       2.5
 Diluted                               5,951         5,890       1.0


              The Savannah Bancorp, Inc. and Subsidiaries
                      Consolidated Balance Sheets
                        March 31, 2008 and 2007
                  ($ in thousands, except share data)
                              (Unaudited)

                                                   March 31,
 --------------------------------------------------------------------
                                            2008             2007
 --------------------------------------------------------------------
 Assets
 Cash and due from banks                  $  14,816        $  16,890
 Federal funds sold                           4,998           20,176
 Interest-bearing deposits                    2,344            2,786
 --------------------------------------------------------------------
   Cash and cash equivalents                 22,158           39,852
 Securities available for sale,
  at fair value (amortized
  cost of $60,529 in 2008 and
  $57,918 in 2007)                           62,367           57,785
 Loans held for sale                            793            1,835
 Loans, net of allowance for loan
  losses of $12,128 in 2008 and
  $9,220 in 2007                            822,606          721,167
 Premises and equipment, net                  8,237            6,274
 Other real estate owned                      2,025              622
 Bank-owned life insurance                    6,044            5,813
 Goodwill and other intangible
  assets, net                                 3,626               --
 Other assets                                17,781           14,944
 --------------------------------------------------------------------
       Total assets                       $ 945,637        $ 848,292
 ====================================================================

 Liabilities
 Deposits:
   Noninterest-bearing                    $  86,329        $  98,663
   Interest-bearing demand                  117,854          112,490
   Savings                                   16,060           18,917
   Money market                             208,531          170,039
   Time deposits                            342,489          312,061
 --------------------------------------------------------------------
       Total deposits                       771,263          712,170
 Short-term borrowings                       64,685           37,480
 FHLB advances - long-term                   11,895           13,225
 Subordinated debt                           10,310           10,310
 Other liabilities                            8,599            6,606
 --------------------------------------------------------------------
       Total liabilities                    866,752          779,791
 --------------------------------------------------------------------
 Shareholders' equity
 Common stock, par value $1 per
  share: authorized 20,000,000
  shares; issued 5,931,008 and
  5,790,376 shares in 2008 and
  2007, respectively                          5,931            5,790
 Preferred stock, par value $1 per
  share: authorized 10,000,000
  shares, none issued                            --               --
 Additional paid-in capital                  38,327           35,801
 Retained earnings                           31,474           27,299
 Treasury stock, 318 in 2008 and
  2007                                           (4)              (4)
 Accumulated other comprehensive
  income (loss), net                          3,157             (385)
 --------------------------------------------------------------------
       Total shareholders' equity            78,885           68,501
 --------------------------------------------------------------------
       Total liabilities and
        shareholders' equity              $ 945,637        $ 848,292
 ====================================================================


              The Savannah Bancorp, Inc. and Subsidiaries
                   Consolidated Statements of Income
                For the Three Months and Five Quarters
                    Ending March 31, 2008 and 2007
                ($ in thousands, except per share data)

 ---------------------------------------------------------------------
                           (Unaudited)
 ---------------------------------------------------------------------
                     For the Three Months Ended
 ---------------------------------------------------------------------
                             March 31,                          2008
                      -----------------------        %         First
                        2008           2007         Chg        Quarter
 ---------------------------------------------------------------------
 Interest and dividend
  income
 Loans, including
  fees                $ 14,211       $ 14,351      (1.0)      $ 14,211
 Loans held for
  sale                      12             34       (65)            12
 Investment
  securities               782            620        26            782
 Deposits with
  banks                     67             83       (19)            67
 Federal funds
  sold                      53            172       (69)            53
 --------------------------------------------                 --------
   Total interest
    and dividend
    income              15,125         15,260      (0.9)        15,125
 --------------------------------------------                 --------
 Interest expense
 Deposits                6,124          6,092       0.5          6,124
 Short-term
  borrowings               881            828       6.4            881
 FHLB advances              49            164       (70)            49
 --------------------------------------------                 --------
   Total interest
    expense              7,054          7,084      (0.4)         7,054
 --------------------------------------------                 --------
 Net interest
  income                 8,071          8,176      (1.3)         8,071
 Provision for
  loan losses            1,070            500       114          1,070
 --------------------------------------------                 --------
 Net interest
  income after
  the provision
  for loan losses        7,001          7,676      (8.8)         7,001
 --------------------------------------------                 --------
 Noninterest
  income
 Service charges
  on deposits              387            347        12            387
 Mortgage related
  income, net               63            210       (70)            63
 Trust and asset
  management fees          724            176       311            724
 Other operating
  income                   588            325        85            588
 Gain (loss) on
  sale of OREO               1             (6)       NM              1
 --------------------------------------------                 --------
   Total
    noninterest
    income               1,763          1,052        68          1,763
 --------------------------------------------                 --------
 Noninterest
  expense
 Salaries and
  employee
  benefits               3,473          2,964        17          3,473
 Occupancy and
  equipment                889            758        17            889
 Information
  technology               393            425      (7.5)           393
 Other operating
  expense                1,395          1,000        40          1,395
 --------------------------------------------                 --------
   Total
    noninterest
    expense              6,150          5,147        19          6,150
 --------------------------------------------                 --------
 Income before
  income taxes           2,614          3,581       (27)         2,614
 Income tax
  expense                  910          1,270       (28)           910
 --------------------------------------------                 --------
 Net income           $  1,704       $  2,311       (26)      $  1,704
 ============================================                 ========
 Net income per
  share:
   Basic              $   0.29       $   0.40       (28)      $   0.29
 ============================================                 ========
   Diluted            $   0.29       $   0.39       (26)      $   0.29
 ============================================                 ========
 Average basic
  shares (000s)          5,928          5,783       2.5          5,928
 Average diluted
  shares (000s)          5,951          5,890       1.0          5,951

 Performance
  Ratios
 Return on
  average equity          8.76%         13.90%      (37)          8.76%
 Return on
  average assets          0.73%          1.12%      (35)          0.73%
 Net interest
  margin                  3.70%          4.17%      (11)          3.70%
 Efficiency ratio        62.54%         55.78%       12          62.54%
 Average equity         78,210         67,434        16         78,210
 Average assets        934,756        834,033        12        934,756
 Average
  interest-
  earning assets       876,022        799,678       9.5        876,022


 ---------------------------------------------------------------------
                                   (Unaudited)
 ---------------------------------------------------------------------
                                      2007                      Q1-08/
                     Fourth      Third     Second      First    Q1-07
                     Quarter    Quarter    Quarter    Quarter     %
 ---------------------------------------------------------------------
 Interest and
  dividend income
 Loans, including
  fees              $ 15,016   $ 15,196   $ 14,872   $ 14,351   (1.0)
 Loans held for
  sale                    14         15         35         34    (65)
 Investment
  securities             767        794        726        620     26
 Deposits with
  banks                  100         44        119         83    (19)
 Federal funds
  sold                    45        130        125        172    (69)
 ------------------------------------------------------------
   Total interest
    and dividend
    income            15,942     16,179     15,877     15,260   (0.9)
 ------------------------------------------------------------
 Interest expense
 Deposits              6,881      6,963      6,479      6,092    0.5
 Short-term
  borrowings             935        860        831        828    6.4
 FHLB advances            46         48        155        164    (70)
 ------------------------------------------------------------
   Total interest
    expense            7,862      7,871      7,465      7,084   (0.4)
 ------------------------------------------------------------
 Net interest
  income               8,080      8,308      8,412      8,176   (1.3)
 Provision for
  loan losses          3,145        635        395        500    114
 ------------------------------------------------------------
 Net interest
  income after
  the provision
  for loan losses      4,935      7,673      8,017      7,676   (8.8)
 ------------------------------------------------------------
 Noninterest
  income
 Service charges
  on deposits            349        339        348        347     12
 Mortgage related
  income, net             98        141        166        210    (70)
 Trust and asset
  management fees        769        379        189        176    311
 Other operating
  income                 315        305        297        325     85
 Gain (loss) on
  sale of OREO          (38)         --         --        (6)     NM
 ------------------------------------------------------------
   Total
    noninterest
    income             1,493      1,164      1,000      1,052     68
 ------------------------------------------------------------
 Noninterest
  expense
 Salaries and
  employee
  benefits             3,125      2,919      2,838      2,964     17
 Occupancy and
  equipment              958        796        782        758     17
 Information
  technology             422        388        381        425   (7.5)
 Other operating
  expense              1,285      1,073      1,025      1,000     40
 ------------------------------------------------------------
   Total
    noninterest
    expense            5,790      5,176      5,026      5,147     19
 ------------------------------------------------------------
 Income before
  income taxes           638      3,661      3,991      3,581    (27)
 Income tax
  expense                285      1,280      1,400      1,270    (28)
 ------------------------------------------------------------
 Net income         $    353   $  2,381   $  2,591   $  2,311    (26)
 ============================================================
 Net income per
  share:
   Basic            $   0.06   $   0.41   $   0.44   $   0.40    (28)
 ============================================================
   Diluted          $   0.06   $   0.40   $   0.44   $   0.39    (26)
 ============================================================
 Average basic
  shares (000s)        5,923      5,862      5,824      5,782    2.5
 Average diluted
  shares (000s)        5,968      5,928      5,899      5,890    1.0

 Performance
  Ratios
 Return on
  average equity        1.83%     13.04%     14.94%     13.90%   (37)
 Return on
  average assets        0.15%      1.08%      1.23%      1.12%   (35)
 Net interest
  margin                3.72%      3.95%      4.13%      4.17%   (11)
 Efficiency ratio      60.48%     54.65%     53.40%     55.78%    12
 Average equity       74,447     72,436     69,583     67,434     16
 Average assets      910,785    875,532    855,989    834,033     12
 Average
  interest-
  earning assets     865,430    837,586    821,253    799,678    9.5


 Capital Resources

 The banking regulatory agencies have adopted capital requirements
 that specify the minimum level for which no prompt corrective action
 is required. In addition, the FDIC assesses FDIC insurance premiums
 based on certain "well-capitalized" risk-based and equity capital
 ratios. As of March 31, 2008, the Company and the Subsidiary Banks
 exceeded the minimum requirements necessary to be classified as
 "well-capitalized."

 Total tangible equity capital for the Company was $76.7 million, or
 8.11 percent of total assets at March 31, 2008.  The table below
 includes the regulatory capital ratios for the Company and each
 Subsidiary Bank along with the minimum capital ratio and the ratio
 required to maintain a well-capitalized regulatory status.

($ in thousands)
                                                                Well-
                                            Harbour-           Capital-
            Company   Savannah     Bryan     side     Minimum   ized
 ---------------------------------------------------------------------

 Qualifying
  Capital
 Tier 1
  capital   $82,102    $51,499    $18,811    $8,123      --       --
 Total
  capital    92,106     58,096     21,181     9,104      --       --

 Leverage
  Ratios
 Tier 1
  capital
  to
  average
  assets       8.78%      8.29%      8.83%     8.77%   4.00%    5.00%

 Risk-based
  Ratios
 Tier 1
  capital
  to
  risk-
  weighted
  assets      10.29%      9.78%      9.93%    10.45%   4.00%    6.00%

 Total
  capital
  to risk-
  weighted
  assets      11.54%     11.04%     11.18%    11.71%   8.00%   10.00%

 Tier 1 and total capital at the Company level includes $10 million of
 subordinated debt issued to the Company's nonconsolidated
 subsidiaries. Total capital also includes the allowance for loan
 losses up to 1.25 percent of risk-weighted assets.

 The capital ratios are significantly above the well-capitalized
 threshold. The Company currently has access to approximately $13
 million of trust preferred borrowings and to the capital markets, if
 needed, to maintain  the well-capitalized status of the Subsidiary
 Banks. However, due to the recent events in the capital markets, the
 cost of trust  preferred borrowings has increased from three-month
 LIBOR plus 150 basis points to the same index plus 300 to 350 basis
 points.


              The Savannah Bancorp, Inc. and Subsidiaries
           Allowance for Loan Losses and Nonperforming Loans
                               (Unaudited)

                 2008                         2007
               -------------------------------------------------------
                First      Fourth       Third      Second       First
               Quarter     Quarter     Quarter     Quarter     Quarter
               -------------------------------------------------------

 ($ in
  thousands)

 Allowance
  for loan
  losses
 Balance at
  beginning
  of period    $12,864     $ 9,842     $ 9,517     $ 9,220     $ 8,954
 Provision
  for loan
  losses         1,070       3,145         635         395         500
 Net charge
  -offs         (1,806)       (123)       (310)        (98)       (234)
               -------------------------------------------------------
 Balance at
  end of
  period       $12,128     $12,864     $ 9,842     $ 9,517     $ 9,220
               =======================================================

 As a % of
  loans           1.45%       1.59%       1.26%       1.27%       1.26%
 As a % of
  nonper-
  forming
  loans          69.26%      73.83%     145.68%     490.82%     663.31%
 As a % of
  nonper-
  forming
  assets         62.08%      65.85%     124.46%     366.74%     458.25%

 Net
  charge-
  offs as a
  % of
  average
  loans(a)        0.90%       0.07%       0.17%       0.05%       0.13%

 Risk
  element
  assets
 Nonaccruing
  loans        $16,915     $14,663     $ 5,028     $ 1,895     $   400

 Loans past
  due 90
  days -
  accruing         596       2,761       1,728          44         990

 Restruc-
  tured
  loans             --          --          --          --          --
               -------------------------------------------------------
 Total non-
  performing
  loans         17,511      17,424       6,756       1,939       1,390
 Other real
  estate
  owned          2,025       2,112       1,152         656         622
               -------------------------------------------------------
   Total
    nonper-
    forming
    assets     $19,536     $19,536     $ 7,908     $ 2,595     $ 2,012
               =======================================================

 Nonper-
  forming
  loans as a
  % of loans      2.10%       2.24%       0.87%       0.26%       0.19%
 Nonper-
  forming
  assets as
  a % of
  loans and
  other real
  estate
  owned           2.33%       2.51%       1.01%       0.34%       0.28%
 Nonper-
  forming
  assets as
  a % of
  capital(b)     21.47%      21.92%       9.30%       3.26%       2.59%

 (a) Annualized
 (b) Capital includes the allowance for loan losses


               The Savannah Bancorp, Inc. & Subsidiaries
                      Loan Concentration Schedule
                 March 31, 2008 and December 31, 2007

                                                                  %
                                    % of                 % of   Dollar
 ($ in thousands)        3/31/08    Total    12/31/07    Total  Change
 ---------------------------------------------------------------------
 Non-residential real
  estate
  Owner-occupied       $ 132,397      16    $ 118,714      15       12
  Non owner-occupied     131,164      16      118,904      15       10
  Construction            28,087       3       33,923       4      (17)
  Commercial land
   and lot development    41,767       5       38,127       5      9.5
 ------------------------------------------------------------
 Total non-residential
  real estate            333,415      40      309,668      39      7.7
 ------------------------------------------------------------
 Residential real estate
  Owner-occupied
   - 1-4 family           81,878      10       83,828      10     (2.3)
  Non owner-
   occupied -1-4
   family                116,979      14      114,992      14      1.7
  Construction            59,517       7       57,541       7      3.4
  Residential
   land and lot
   development           108,163      13      109,718      14     (1.4)
  Home equity lines       43,620       5       43,322       5      0.7
 ------------------------------------------------------------
 Total residential
  real estate            410,157      49      409,401      50      0.2
 ------------------------------------------------------------
 Total real
  estate loans           743,572      89      719,069      89      3.4
 Commercial               73,487       9       71,370       9      3.0
 Consumer                 17,982       2       18,692       2     (3.8)
 Unearned fees, net         (307)     --         (480)     --      (36)
 ------------------------------------------------------------
 Total loans, net
  of unearned fees     $ 834,734     100    $ 808,651     100      3.2
 =====================================================================


            The Savannah Bancorp, Inc. and Subsidiaries
           Average Balance Sheet and Rate/Volume Analysis -
                    First Quarter, 2008 and 2007


   Average Balance     Average Rate
 ------------------------------------
    QTD       QTD       QTD    QTD
 3/31/08    3/31/07  3/31/08  3/31/07
 --------------------------------------------------------------------
  ($ in thousands)         (%)
                                              Assets

 $  6,910   $  6,195    3.89    5.43    Interest-bearing deposits
   58,423     51,186    5.23    4.79    Investments - taxable
    1,916      1,940    5.44    7.94    Investments - non-taxable
    6,598     13,230    3.22    5.27    Federal funds sold
      734      1,652    6.56    8.35    Loans held for sale
  801,441    725,475    7.11    8.03    Loans (c)
 -------------------
  876,022    799,678    6.93    7.76    Total interest-earning assets
                       -------------
   58,734     34,355                    Noninterest-earning assets
 -------------------
 $934,756   $834,033                    Total assets
 ===================

                                        Liabilities and equity
                                        Deposits
 $115,485   $109,131    1.56    2.01       NOW accounts
   15,990     18,391    0.88    0.99       Savings accounts
  135,539    132,016    2.75    4.09       Money market accounts
                                           Money market accounts-
   51,667     17,882    3.89    5.56        institutional
  146,914    117,174    5.10    5.29       CDs, $100M or more

   69,871     80,100    4.41    4.76       CDs, broker
  129,993    119,332    4.85    4.97       Other time deposits
 -------------------
  665,459    594,026    3.69    4.16    Total interest-bearing deposits
    5,733     13,272    3.43    5.01    FHLB advances - long-term
   83,349     49,352    3.33    5.14    Short-term borrowings
   10,310     10,310    7.39    7.99    Subordinated debt
 -------------------
                                        Total interest-bearing
  764,851    666,960    3.70    4.31     Liabilities
                       -------------
   83,522     93,132                    Noninterest-bearing deposits
    8,173      6,507                    Other liabilities
   78,210     67,434                    Shareholders' equity
 -------------------
 $934,756   $834,033                    Liabilities and equity
 ===================
                        3.23    3.45    Interest rate spread
                       =============
                        3.70    4.17    Net interest margin
                       =============
                                        Net interest income

 $111,171   $132,718                    Net earning assets
 ===================
 $748,981   $687,158                    Average deposits
 ===================
                        3.28    3.60    Average cost of deposits
                       =============
     107%       106%                    Average loan to deposit ratio
 ===================


                       Taxable-Equivalent              (a) Variance
                           Interest (b)                Attributable to
                       ------------------              ---------------
                         QTD       QTD      Vari-
                       3/31/08   3/31/07     ance       Rate    Volume
 ---------------------------------------------------------------------
                         ($ in thousands)              ($ in thousands)
 Assets

 Interest-bearing
  deposits             $    67   $    83   $  (16)   $   (24)  $     8
 Investments -
  taxable                  762       605      157         56       101
 Investments -
  non-taxable               26        38      (12)       (12)       --
 Federal funds sold         53       172     (119)       (68)      (51)
 Loans held for sale        12        34      (22)        (7)      (15)
 Loans (c)              14,213    14,367     (154)    (1,664)    1,510
                       --------------------------
 Total interest-
  earning assets        15,133    15,299     (166)    (1,655)    1,489
                       -----------------------------------------------
 Noninterest-earning
  assets

 Total assets

 Liabilities and
  equity
 Deposits
   NOW accounts            449       542      (93)      (122)       29
   Savings accounts         35        45      (10)        (5)       (5)
   Money market
    accounts               930     1,331     (401)      (441)       40
   Money market
    accounts
    institutional          501       245      256        (74)      330
   CDs, $100M or more    1,867     1,527      340        (56)      396
   CDs, broker             769       940     (171)       (70)     (101)
   Other time
    deposits             1,573     1,462      111        (36)      147
                       --------------------------
 Total interest-
  bearing
  deposits               6,124     6,092       32       (696)      728
 FHLB advances -
  long-term                 49       164     (115)       (52)      (63)
 Short-term
  borrowings               691       625       66       (223)      289
 Subordinated
  debt                     190       203      (13)       (15)        2
                       --------------------------
 Total interest-
  bearing
  Liabilities            7,054     7,084      (30)    (1,014)      984
                       -----------------------------------------------
 Noninterest-bearing
  deposits
 Other liabilities
 Shareholders'
  equity

 Liabilities and
  equity

 Interest rate
  spread

 Net interest
  margin

 Net interest income   $ 8,079   $ 8,215   $ (136)   $  (641)  $   505
                       ===============================================

 (a) This table shows the changes in interest income and interest
     expense for the comparative periods based on either changes in
     average volume or changes in average rates for interest-earning
     assets and interest-bearing liabilities. Changes which are not
     solely due to rate changes or solely due to volume changes are
     attributed to volume.
 (b) The taxable equivalent adjustment results from tax exempt income
     less non-deductible TEFRA interest expense and was $8 and $39 in
     the first quarter 2008 and 2007.
 (c) Average nonaccruing loans have been excluded from total average
     loans and categorized in noninterest-earning assets.


            

Coordonnées