Merchants Bank & Trust

Consolidated Balance Sheet

	December 31, 2009	December 31, 2008
*Assets*
Cash and due from banks	$19,128,625	$4,617,945
Investment securities	26,497,595	14,423,501
Loans	180,652,367	190,961,512
Allowance for loan losses	(3,037,358)	(2,459,795)
Premises and equipment	2,983,729	3,161,394
Other assets	4,408,157	1,353,722
TOTAL ASSETS	$230,633,115	$212,058,280

*Liabilities*
Total Deposits	$204,167,367	$169,049,535
Repurchase agreements	2,792,745	2,113,885
FHLB Short-term Advances	0	16,2000,000
FHLB Long-term Advances	4,318,000	4,350,000
Other liabilities	7,374	691,791
Total Liabilities	$211,285,486	$192,405,211

*Capital*
Common stock	$8,533,024	$8,537,980
Treasury stock	(205,231)	(94,599)
FAS 115 unrealized gain	122,048	202,094
Retained earnings	10,897,788	11,007,593
Total Capital	$19,347,629	$19,653,069

TOTAL LIABILITIES AND CAPITAL	$230,633,115	$212,058,280

Number of Shares Outstanding	96,263	93,485

BOOK VALUE PER SHARE	$200.99	$210.23

	2009 *	2008 *
Total Interest Income	$11,606,053	$12,941,506
Total Interest Expense	3,833,592	5,463,976
Net Interest Income	$7,772,461	$7,477,530
Provision for loan losses	2,492,906	986,334
Net Interest Income after Provision	$5,279,555	$6,491,196

Total Other Income	1,730,765	1,368,993
Total Other Expenses	7,191,821	6,840,504
Total Tax Expense	(71,696)	307,815
NET INCOME (LOSS) AFTER TAXES	$(109,805)	$711,870

EARNINGS PER SHARE	$(1.18)	$7.63

Weighted average shares outstanding	93,056	93,337

* For the year ended December 31.

(Unaudited)

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