/2H9d 1$&|&A%|Page #*('CONSOLIDATED STATEMENTS OF INCOME&'For the year ended December 31,   *'- ---------------------------------"------------"-------------"-------'Interest income:'Loans and leases kA pC4A 0)yA'Investment securities:'Taxable QA +QA @h\SA'Tax-exempt QA MA ({A 'Loans held for sale  z}A  CsA  oA 'Federal funds sold  3A  :?A  0:A* '- --------------------------------- "------------ "------------- "-------------- 'Total interest income  vSA  jA  * A* '- --------------------------------- "------------ "------------- "---------------'Interest expense:'Deposits 8pA @[lA  daA'Short-term borrowings >uA fA [A'Long-term debt q;A FE:A 3A*'- ---------------------------------"------------"-------------"--------------'Total interest expense 6كA >{A  pA*'- ---------------------------------"------------"-------------"--------------'Net interest income ͆A ˁA  CA,'Provision for loan and lease losses - 'Note 5 PA qGA Z:A*'- ---------------------------------"------------"-------------"-------------- 'Net interest income after'provision for possible'loan and lease losses A ЇTA }A*'- ---------------------------------"------------"-------------"--------------'Loan origination income H+A ~A w\xA 'Loan servicing fees  XbA  @=A  ~A!'Gain on sale of loans !TA !0ctA !>@A)"'Gain on sale of mortgage servicing ".=oA " mA "pA%#'Brokerage fees and commissions #ά>A #MEA #)e@A$'Trust fees $q>A $>A $=A*%'Service charges on deposit accounts %= 6A %2A %B53A&&'Insurance commissions, fees and''premiums 'u7A '13A '"l0A ('Other (CA (@A (7A*)'- ---------------------------------)"------------)"-------------)"-------------- *PA *'5A * xA*+'- ---------------------------------+"------------+"-------------+"--------------,'Other expense:-'Salaries -tVA -(c A -pφA*.'Pension and other employee benefits .@R!hA .@JdA .:M_A/'Amortization of mortgage0'servicing rights 0tiA 0ORA 0j=A1'Premises and equipment 1jA 1kygA 1 }`A2'Office expense 2cA 2M]A 2FyVA 3'Marketing and development 3cA 3ZA 3ODIA 4'Other 4psA 4 }gA 4dA*5'- ---------------------------------5"------------5"-------------5"-------------- 6B A 6࢛A 6A*7'- ---------------------------------7"------------7"-------------7"--------------!8'Income before income taxes 8PǁA 8 +~A 80|A9'Federal income taxes 9_fA 9PbA 9d*bA:'State income taxes :TGA :CA :AA*;'- ---------------------------------;"------------;"-------------;"--------------<'Net income < cuA < 'sA <0'_qA*='===================================="============="=============="============,>'Net income per share of common stock:?'Net income - Note 1 ?zG? ?? ??*@'===================================@"============@"=============@"============*A'Dividends per share of common stock AQ? A)\(? A ףp= ?*B'===================================B"============B"=============B"============.C'Weighted average shares of common stockD'outstanding D$fA D@eA D8qfA*E'===================================E"============E"=============E"============FF'The accompanying notes are an integral part of the consolidatedG'financial statements.!J'CONSOLIDATED BALANCE SHEETL'December 31, L L(M'- -------------------------------M"------------------M"----------------N'Assets:O'Cash and due from banks OpA O|AP'Federal funds sold P P8lA(Q'- -------------------------------Q"------------------Q"---------------- R'Cash and cash equivalents RpA RݣA%S'Interest-bearing deposits withT'financial institutions T@עeA TG^A%U'Investment securities - Note 3 U)oA U(YA#V'Mortgage loans held for saleW'- - Note 9 WرA WݑA(X'Loans and leases, net of unearnedY'income - Note 4 YZA Y9A#Z'Less: Allowance for loan and['lease losses - Note 5 [K'Y [Q(\'- -------------------------------\"------------------\"---------------- ].$A ] PA)_'Mortgage servicing rights - Note 6 _A _$A`'Accounts receivable `A `rA"a'Accrued interest receivable a@[YA a,PA&b'Premises and equipment - Note 7 b@hqA b =oAc'Other assets ccA c C|A)d'- --------------------------------d"----------------d"----------------- eGmA eA%f'==============================f"===================f"================h'Liabilities andi'Shareholders' Equity:j'Depositsk'Noninterest-bearing k OA k𵸨Al'Interest-bearing lA lrAm'Certificates of depositn'over $100,000 nh0A n8ɉA'o'- ------------------------------o"------------------o"----------------- pA pA%r'Short-term borrowings - Note 9 reŇA rz~As'Long-term debt - Note 10 sApA sHtAt'Other liabilities t#A t`A'u'- ------------------------------u"------------------u"-----------------v'Total liabilities vZA vWA'w'- ------------------------------w"------------------w"-----------------y'Shareholders' equity&z'Preferred stock, no par value -,{'authorized 50,000 shares; none issued { {#|'Common stock; no par value -+}'authorized 40,000,000 shares; issued4~'11,701,040 shares in 1996 and 1995; including0'332,268 and 371,208 shares in treasury in"'1996 and 1995, respectively p|A p|A!'Additional paid-in capital  :'Net unrealized gain (loss) on investment securities8' net of deferred income taxes of $20,463 in 1996'and $6,435 in 1995. `@ G'Retained earnings PgnA |"̑A$'- ---------------------------"-----------------------"--------------- ʖA 4{A#'Less treasury stock, at cost QS T$'- ---------------------------"-----------------------"---------------!'Total shareholders' equity 5YA A$'- ---------------------------"-----------------------"---------------"$1,303,886,111 $ AH'=================================================================F'The accompanying notes are an integral part of the consolidated'financial statements.+'CONSOLIDATED STATEMENT OF CASH FLOWS&'For the year ended December 31,   J'- -----------------------------------------------------------------C'Adjustment to reconcile net income to cash provided (used)by'operating'activities:'Net Income  cuA  'sA 0'_qA'Depreciation and'amortization pnlsA @RbA xOA'Provision for loan and'lease losses @PA qGA Z:A%'Amortization of premiums, less'accretion of discounts Z=8A ؋!A F$'Mortgage loan'originations ` i؄ L'Sale of mortgage 'loans PA .A `/A'Gain on sale of mortgage'servicing .=o  m p'Other, net u  V 0AL'- -------------------------------------------------------------------"'Net cash provided (used) by'operating activities Ê η3 ԆA('Lending and investing activities:('Proceeds from maturities/calls of!' investment securities:'Held-to-maturity >SA PA pA'Available-for-sale  \|A `"bA AA'Proceeds from sales of 'investment securities:'Available-for-sale >A FA >A'Purchase of investment 'securities:'Held-to-maturity ?k X IO'Available-for-sale W ` =k l`'Net (increase) decrease 'in interest-bearing 'deposits' with financial 'institutions I hPA uA'Net increase in loans,'excluding sales \ή .֢ |'Sale of loans jqA PטA"-'Additions to mortgage'servicing rights R Ҙ uu'Proceeds from sale of 'mortgage'servicing rights PA  |A !}A'Other, net =U @>T JJ'- -----------------------------------------------------------------'Net cash used by lending'and investing 'activities  /Ϣ T/n pZ'Financing activities:'Net increase (decrease)'in deposits H(A HA `hӌ!'Net increase (decrease) in'short-term borrowings ĖA ȩA no'Repayment of long-term  'debt @;\h ] /wS'Proceeds from long-term  'debt .`A 1TA eA'Purchase of treasury  'stock Ov= F W'Proceeds from sale of 'stock for employee'benefit plans 2A `k%AJ'- -----------------------------------------------------------------'Cash and cash 'equivalents at'end of year pA ݣA  >AH'=================================================================!'Cash paid during the year:'Interest (A `wFzA  pAH'================================================================='Income taxes SWA s8MA `fAH'=================================================================F'The accompanying notes are an integral part of the consolidated'financial statements.