Capabilities after Shuttle RetirementWASHINGTON--(Business Wire)--The Next Step in Space Coalition, a group of businesses, organizations, andpeople working to ensure the future of U.S. human spaceflight, has launched anongoing campaign to raise awareness of the role of commercial companies insupporting NASA`s efforts to send astronauts to space. Non-interest expense totaled $8.6 million in the second quarter of 2009 and$16.2 million in the first half of 2009. shares in the firstquarter of 2008 discussed below, non-interest income of $2.5 million for thefirst six months of 2009 is essentially unchanged from the same period lastyear. Excluding the $457thousand pre-tax non-recurring gain on the sale of Visa Inc.

Non-interest income totaled $1.3 million in the second quarter of 2009,essentially unchanged from the same period last year. Decreases in thetax-equivalent net interest margin were primarily due to the downward re-pricingof our loan portfolio in a declining rate environment and to a lesser extent,interest foregone on non-accrual loans (representing an eight-basis point and aseven-basis point impact on the net interest margin in the quarter and sixmonths ended June 30, 2009, respectively). The tax-equivalent net interest margin was 5.13% in the secondquarter of 2009 compared to 5.52% in the second quarter of 2008 and 5.15% in thefirst half of 2009 compared to 5.46% in the first half of 2008. The increases reflect growth in interest-earning assets and areduced cost of funds, partially offset by decreased loan yields in a lower-rateenvironment. Net interest income of $13.0 million in the quarter ended June 30, 2009increased $1.1 million, or 9.4%, from the same period last year, and theyear-to-date amount for 2009 increased $2.6 million, or 11.4% from the sameperiod last year. On June 26, 2009, the Treasury issued guidance on the process bankscan use to repurchase warrants under the CPP.

Bancorp currently does not intendto repurchase the warrants from the Treasury under these guidelines. Warrants that were issued to the Treasury as part of TARP to purchase154,242 shares of common stock at a per share exercise price of $27.23 remainoutstanding. A total of $28.2 millionwas paid to the Treasury, including accrued dividends of $179 thousand. The CPPwas established by the Treasury pursuant to the Troubled Asset Relief Program("TARP").