In Division Series Playoff the second quarter of

In shares baseball almanac the second conclude quarter of 2009, we expensed the special FDIC assessment that allbanks are required to pay on September 30, 2009. This assessment amounted to areduction of net income after taxes of $233,949, or $0.05 per share-basic anddiluted. Total assets as of June 30, 2009 increased by $49.847 million, or 6.5%, whencompared to December 31, 2008. Deposits increased by $25.200 million, or 4.6%,over the same period in 2008.

These net proceedsresulted in an additional $770 thousand in other income for the quarter and yearto date baseball game tickets . Benefits were paid out to the officer`s beneficiary in the amount of$260 thousand adding to the increase in other expense . During thesecond quarter of 2008, the Bank received proceeds from bank owned lifeinsurance that insured the life of one of its officers . Non-interest expense increased mainly dueto a $521 thousand increase in FDIC assessment paid in 2009 . When looking at the comparison of the second quarter and year to date from 2008to 2009, two non-recurring items must be taken into consideration.

The reduction innon-interest income was due to termination of a sweep program that resulted in areduction of $442 thousand in non-interest income in 2009 and the receipt ofinsurance proceeds in 2008 on the life of a bank officer that resulted in anincrease in income of $770 thousand baseball tickets . The provision for loan losses for the sixmonths ended June 30, 2009 was $1.140 million compared to the provision of $657thousand in 2008 . Non-interest income decreased by $1.088 million, or 24.0%, andnon-interest expense increased by $902 thousand, or 8.3%, for the six monthsended June 30, 2009 when compared to June 30, 2008 . Net interest income for the six months ended June 30, 2009,after the provision for loan losses, increased 14.4% to $13.002 million from$11.363 million for the same period in 2008 . Net interest margin decreased to4.14% in 2009 from 4.40% in 2008. Non-interest expenseincreased mainly due to a $452 thousand increase in FDIC assessment paid in2009. Net income for the six months ended June 30, 2009 decreased 10.1% to $3.699million, or $0.76 per share-basic and $0.75 per share-diluted, from $4.115million, $0.85 per share-basic and $0.84 per share-diluted, for the six monthsended June 30, 2008.