Merchants Bank & Trust

Consolidated Balance Sheet

	March 31, 2010	March 31, 2009
*Assets*
Cash and due from banks	$13,134,759	$9,263,407
Investment securities	29,867,202	13,118,344
Loans	179,477,999	183,770,532
Allowance for loan losses	(2,795,945)	(2,343,486)
Premises and equipment	2,943,384	3,097,913
Other assets	4,365,470	1,384,968
TOTAL ASSETS	$226,992,869	$208,291,678

*Liabilities*
Total Deposits	$200,051,434	$180,906,878
Repurchase agreements	2,521,444	1,904,725
FHLB Short-term Advances	0	0
FHLB Long-term Advances	4,318,000	4,350,000
Other liabilities	182,916	1,133,599
Total Liabilities	$207,073,794	$188,295,202

*Capital*
Common stock	$8,998,646	$8,537,980
Treasury stock	(82,703)	(94,599)
FAS 115 unrealized gain	196,494	182,962
Retained earnings	10,806,638	11,370,133
Total Capital	$19,919,075	$19,996,476

TOTAL LIABILITIES AND CAPITAL	$226,992,869	$208,291,678

Number of Shares Outstanding	95,848	93,481

BOOK VALUE PER SHARE	$207.82	$213.91

	2010 *	2009 *
Total Interest Income	$2,846,672	$2,918,459
Total Interest Expense	757,266	1,016,840
Net Interest Income	$2,089,406	$1,901,619
Provision for loan losses	(141)	134,709
Net Interest Income after Provision	$2,089,547	$1,766,910

Total Other Income	288,872	500,736
Total Other Expenses	1,785,158	1,719,056
Total Tax Expense	209,800	186,050
NET INCOME (LOSS) AFTER TAXES	$383,461	$362,540

EARNINGS PER SHARE	$4.05	$3.88

Weighted average shares outstanding	94,680	93,481

* For the three-month ended March 31.

(Unaudited)

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