Merchants Bank & Trust

Consolidated Balance Sheet

	December 31, 2011	December 31, 2010
*Assets*
Cash and Due from Banks	$16,174,586	$12,035,695
Investment Securities	29,910,494	21,417,253
Loans	161,618,329	178,714,374
Allowance for Loan Losses	(2,470,389)	(2,397,948)
Premises and Equipment	2,753,830	2,785,344
Other Assets	2,310,226	2,970,096
TOTAL ASSETS	$210,297,076	$215,524,814

*Liabilities*
Total Deposits	$181,180,857	$185,422,590
Repurchase Agreements	1,728,958	4,290,230
FHLBank Long-term Advances	4,000,000	4,000,000
Other Liabilities	1,198,605	1,207,097
Total Liabilities	$188,108,420	$194,919,917
*Capital*
Common stock	$9,476,088	$9,443,402
Treasury stock	-	(105,104)
Unrealized Gain on AFS Securities	521,953	37,215
Retained Earnings	12,190,615	11,229,394
Total Capital	$22,188,656	$20,604,897
TOTAL LIABILITIES AND CAPITAL	$210,297,076	$215,524,814

Number of Shares Outstanding	98,848	98,669

BOOK VALUE PER SHARE	$224.47	$208.83

	2011 *	2010 *
Total Interest Income	$9,689,349	$11,099,176
Total Interest Expense	1,492,981	2,571,853
Net Interest Income	$8,196,368	$8,527,323
Provision for Loan Losses	884,542	568,444
Net Interest Income after Provision	$7,311,826	$7,958,879

Total Other Income	1,672,688	1,334,671
Total Other Expense	6,882,447	7,404,464
Total Tax Expense	686,350	637,450
NET INCOME AFTER TAXES	$1,415,717	$1,251,636

EARNINGS PER SHARE	$14.45	$12.93

Weighted average shares outstanding	97,992	96,811

* For the year ended December 31.

(Unaudited)

111 N. State Street, West Harrison, IN 47060 (812) 637-3232