Other Income

For the first quarter of 2010, other income totaled $1.1 million compared to the same amount for the December 2009 quarter and compared to $983 thousand for the first quarter of 2009. Fee income earned on the sale of mortgage loans at origination increased $84 thousand to $177 thousand in the first quarter of 2010 from $93 thousand in the same 2009 period. The increase for 2010 resulted from greater longer-term, fixed-rate mortgage originations, which are sold, as well as a greater targeted sale price for such originations.

Operating Expenses

The Corporation’s total operating expenses were $10.5 million for the March 2010 quarter compared to $10.6 million in the December 2009 quarter and compared to $9.5 million for the March 2009 quarter. The increase for 2010, when compared to the year ago quarter, was principally due to expenses associated with a new Trust office opened in June 2009 and a new branch office opened in September 2009, increased expenses related to problem loans and REO, and an increase in FDIC insurance due to an industry-wide increase in the FDIC assessment rates.


At March 31, 2010, nonperforming assets increased slightly to $12.9 million or 0.87 percent of total assets as compared to $12.1 million or 0.80 percent of total assets at December 31, 2009. Mr. Kissel noted, “We continue to be proactive in our loan portfolio management in an effort to identify and stay ahead of potential problems. We are well capitalized and we are ready to lend to well-qualified individuals and businesses. However, we remain committed to our conservative underwriting standards that have served us well in the past and which we believe will continue to serve us well in the future.”

The allowance for loan losses was $13.7 million or 1.41 percent of total loans at March 31, 2010 as compared to $13.2 million or 1.34 percent of total loans at December 31, 2009.