Horizon Bancorp
HBNC
#6286
Rank
C$1.41 B
Marketcap
C$27.51
Share price
-0.16%
Change (1 day)
21.68%
Change (1 year)
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<TITLE>Horizon Bancorp Form 10-K405/year-end 12-31-1999</TITLE>
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<A name="toc"><DIV align="CENTER"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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<TR><TD></TD><TD colspan="8"><A HREF="#000"><B>ITEM 1. BUSINESS</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001"><B>ITEM 2. PROPERTIES</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002"><B>ITEM 3. LEGAL PROCEEDINGS</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#003"><B>ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#004"><B>ITEM 5. MARKET FOR REGISTRANT&#146;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#005"><B>ITEM 6. SELECTED FINANCIAL DATA</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006"><B>ITEM 7. MANAGEMENT&#146;S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007"><B>ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008"><B>ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#009"><B>ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#010"><B>ITEM 11. EXECUTIVE COMPENSATION</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#011"><B>ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#012"><B>ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#013"><B>ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K</B></A></TD></TR>
<TR><TD colspan="9"><A HREF="#014"><B>EXHIBIT INDEX</B></A></TD></TR>
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<P align="center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>

<P align="center"><FONT size="5"><B>FORM 10-K</B></FONT>

<P>[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
<P>For the fiscal year ended <U>December&nbsp;31, 1999</U>

<P align="center">OR

<P>[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

<P>For the transition period from

<P>Commission file number <U>0-10792</U>

<P align="center"><FONT size="5"><B>HORIZON BANCORP</B></FONT>
<HR size="1">

<DIV align="center">(Exact name of registrant as specified in its
charter)</DIV>

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<TD width="5%">&nbsp;</TD>
<TD width="45%">&nbsp;</TD>
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<TD align="center" valign="top"><FONT size="3">INDIANA</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="3">
35-1562417</FONT></TD>
</TR>
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<TD align="center" valign="top"><FONT size="3"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="3">
<HR size="1"></FONT></TD>
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<TD align="center" valign="top"><FONT size="3">State or other jurisdiction of<BR>
incorporation or organization</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="3">
(I.R.S. Employer<BR>
Identification No.)</FONT></TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top"><FONT size="3">515 Franklin St., Michigan City, Indiana</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="3">
46360</FONT></TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top"><FONT size="3"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="3">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top"><FONT size="3">(Address of principal executive offices)</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="3">
(Zip Code)</FONT></TD>
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<P align="center">Registrant&#146;s telephone number, including area code 219-879-0211

<P align="center">Securities registered pursuant to Section&nbsp;12(b) of the Act:

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<TD width="19%">&nbsp;</TD>
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<TR valign="bottom">
<TD nowrap align="center"><FONT size="3">Title of each class</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="3">Name of each exchange on which registered</FONT></TD>
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<TD nowrap align="center"><HR size="1"></TD>
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<TD colspan="3"><HR size="1"></TD>
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<TD align="center"><FONT size="3">None</FONT></TD>
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<P align="center">Securities registered pursuant to Section&nbsp;12(g) of the Act:

<P align="center">Common stock, no par value, 689,458 shares outstanding at February&nbsp;29, 2000
<HR size="1">
<DIV align="center">(Title of class)</DIV>

<P>Indicate by checkmark whether the registrant (1)&nbsp;has filed all reports required
to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12&nbsp;months (or for such shorter period that the registrant
was required to file such reports), and (2)&nbsp;has been subject to such filing
requirements for the past 90&nbsp;days.
Yes&nbsp;<U>&nbsp;&nbsp;X&nbsp;&nbsp;</U>&nbsp;&nbsp;No&nbsp;<U>&nbsp;&nbsp;&nbsp;</U>

<P>Indicate by checkmark if disclosure of delinquent filers pursuant to Item&nbsp;405
of Regulation&nbsp;S-K is not contained herein, and will not be contained, to the
best of registrant&#146;s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form&nbsp;10-K or any amendment to the
Form&nbsp;10-K&nbsp;&nbsp;<U>&nbsp;&nbsp;X&nbsp;&nbsp;</U>.

<P>The aggregate market value of the registrant&#146;s common stock held by
nonaffiliates of the registrant, based on the bid price of such stock on
February&nbsp;29, 2000 was $18,302,000.
<P align="center">&nbsp;
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<P align="center"><B>Documents Incorporated by Reference</B>

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<TD></TD>
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<TD nowrap align="center" colspan="3"><FONT size="2"><B>Part of Form 10-K into which</B></FONT></TD>
</TR>
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<TD nowrap align="center"><FONT size="2"><B>Document</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>portion of document is incorporated</B></FONT></TD>
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<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="3">Portions of the Registrant&#146;s</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="3">I, II, VI</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="3">1999 annual report to shareholders</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="3">Portions of the Registrant&#146;s</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="center"><FONT size="3">III</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="3">proxy statement to be filed for
its May&nbsp;4, 2000 annual meeting
of shareholders</FONT></TD>
</TR>
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<P>Except as provided in Part I, Part II and Part III, no part of the Registrant&#146;s
1999 annual report to shareholders or proxy statement shall be deemed
incorporated herein by this reference or to be filed with the Securities and
Exchange Commission for any purposes.
<P align="center">2
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<P align="center"><B>PART I</B>

<!-- link2 "<B>ITEM 1. BUSINESS</B>" -->
<P align="left"><B>ITEM 1. BUSINESS</B>

<P>(a)&nbsp;<B>General Development of Business</B>

<P>Horizon Bancorp, a registered bank holding company organized under the laws of
the State of Indiana on April&nbsp;26, 1983, (Registrant), became the parent
corporation and sole shareholder of The First Merchants National Bank of
Michigan City pursuant to a plan of reorganization effective October&nbsp;31, 1983.
Prior to October&nbsp;31, 1983, the Registrant conducted no business and had only
nominal assets necessary to complete the plan of reorganization.

<P>On October&nbsp;1, 1986 the Registrant issued 399,340 shares of its common stock in
exchange for all of the common stock of Citizens Michiana Financial Corporation
in connection with mergers of such companies and their subsidiaries.
Subsequent to the merger, the Registrant remains a one-bank holding company
with a wholly-owned subsidiary, Horizon Bank, N.A. (Bank) and Bank&#146;s
wholly-owned subsidiaries, Horizon Trust &#38; Investment Management, N.A. (Horizon
Trust) and Horizon Insurance Services, Inc. (Horizon Insurance) and non-bank
subsidiaries, HBC Insurance Group (Insurance Company) and The Loan Store, Inc.,
(Loan Store).

<P>(b)&nbsp;<B>Financial Information About Industry Segments</B>

<P>The Registrant, Bank and its subsidiaries are engaged in the commercial and
retail banking business, investment management services, commercial and
personal property and casualty insurance services, retail lending and
insurance credit life sales. Refer to Item&nbsp;1(e) and Item&nbsp;6 for information
pertaining to Registrant&#146;s banking business.

<P>(c)&nbsp;<B>Narrative Description of Business</B>

<P>The Registrant&#146;s business is that incident to its 100% ownership of Bank, Loan
Store and the Insurance Company. The main source of funds for the Registrant is
dividends from Bank. Bank was chartered as a national bank association in 1873
and has operated continuously since that time. Bank , whose deposits are
insured by the Federal Deposit Insurance Corporation to the extent provided by
law, is a full-service commercial bank offering a broad range of commercial and
retail banking services, corporate and individual trust and agency services,
commercial and personal property and casualty insurance services and other
services incident to banking. Bank maintains four facilities located within
LaPorte County, Indiana and four facilities located in Porter County, Indiana.
At December&nbsp;31, 1999, Bank had total assets of $525,996,000 and total deposits
of $363,668,000. Aside from the stock of Bank, Insurance Company and Loan
Store, the Registrant&#146;s only other significant assets are cash and cash
equivalents totaling approximately $462,000, investment securities totaling
approximately $286,000 and taxes receivable of approximately $434,000 at
December&nbsp;31, 1999.

<P>The business of the Registrant, Bank, Horizon Trust, Horizon Insurance,
Insurance Company and Loan Store is not seasonal to any material degree.

<P>No material part of the Registrant&#146;s business is dependent upon a single or
small group of customers, the loss of any one or more of whom would have a
materially adverse effect on the business of the Registrant. Revenues from
loans accounted for 69% in 1999, 70% in 1998, and 72% in 1997 of the total
consolidated revenue. Revenues from investment securities accounted for 14% in
1999, 13% in 1998 and 14% in 1997 of total consolidated revenue.

<P>The Registrant has no employees and there are approximately 197 full and
part-time persons employed by Bank , Horizon Trust, Horizon Insurance and Loan
Store as of December&nbsp;31, 1999.

<P>A high degree of competition exists in all major areas where the Registrant
engages in business. Bank&#146;s primary market consists of LaPorte County,
Indiana, Porter County, Indiana, and Berrien County, Michigan. Bank competes
with commercial banks located in the home county and contiguous counties in
Indiana and Michigan, as well as with savings and loan associations, consumer
finance companies, and credit unions located therein. To a more moderate
extent, Bank competes with Chicago money center banks, mortgage banking
companies, insurance companies, brokerage houses, other institutions engaged in
money market financial services, and certain government agencies.

<P>The Insurance Company offers credit life and accident and health insurance.
The Loan Store, Inc. sold the majority of its assets in August&nbsp;1999. The net
income generated from the Insurance Company and the Loan Store are not
significant to the overall operations of the Registrant.
<P align="center">3
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<P align="left"><B>I. DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS&#146; EQUITY; INTEREST RATES AND INTEREST DIFFERENTIAL</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Information required by this section of Securities Act Industry Guide 3 is
presented in Management &#145;s Discussion and Analysis Section of the
Corporation&#146;s 1999 Annual Report to Shareholders.</TD>
</TR>
</TABLE>
<P align="left"><B>II. INVESTMENT PORTFOLIO</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(A)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The following is a schedule of the book value of investment securities
available for sale and held to maturity at December&nbsp;31, 1999, 1998 and
1997:</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="61%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left"><FONT size="2">(in thousands)</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2"><B>AVAILABLE FOR SALE</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">U.S. Treasury and U.S. Government
agencies and corporations</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">30,428</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">12,568</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,965</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">State and Municipal</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4,230</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Mortgage-backed securities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">23,565</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">41,167</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">39,985</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Collateralized mortgage obligations</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">11,322</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Other securities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">315</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4,289</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4,020</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Unrealized gain/(loss)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,980</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">561</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">668</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Total investment securities
available for sale</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">67,880</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">58,585</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">48,638</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2"><B>HELD TO MATURITY</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">U.S. Treasury and U.S. Government
agencies and corporations</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,630</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,040</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Obligations of states and political
subdivisions</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">10,116</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">9,407</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Total investment securities held
to maturity</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">11,746</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">11,447</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Toal investment securities available
for sale and held to maturity</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">67,880</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">70,331</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">60,085</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">4
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<P align="left"><B>II. INVESTMENT PORTFOLIO </B>(Continued)

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(B)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The following is a schedule of maturities of each category of debt
securities and the related weighted average yield of such securities
as of December&nbsp;31, 1999:</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="90%" align="center">
<TR valign="bottom">
<TD width="33%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>After one year</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>After five years</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>One year or less</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>through five years</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>through ten years</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>After ten years</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left"><FONT size="2">(Thousands)</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Yield</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Yield</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Yield</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Yield</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2"><B>AVAILABLE FOR SALE</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">U.S. Treasury and
U.S. Government
agency securities (1)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">5,052</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.24</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">15,419</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.72</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">7,624</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.03</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,333</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.35</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Obligations of states
and political
subdivisions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">32</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">4.34</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,151</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.77</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,074</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.65</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">973</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.84</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Mortgage-backed
securities (2)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4,765</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.23</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8,247</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.81</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">10,553</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.79</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Collateralized mortgage
obligations</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8,051</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.98</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,271</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">7.11</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Other securities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">315</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">2.93</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">5,399</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.10</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">21,335</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.84</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">25,996</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.31</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">17,130</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.79</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>

<HR size="2" width="10%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(1)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Amortized cost is based on contractual maturity or call date where a
call option exists</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
<TD width="1%" align="left">(2)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Maturity based upon maturity date</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The weighted average interest rates are based on coupon rates for
securities purchased at par value and on effective interest rates considering
amortization or accretion if the securities were purchased at a premium or
discount. Yields are not presented on a tax-equivalent basis.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">(C)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Excluding those holdings of the investment portfolio in U.S.
Treasury securities and other agencies and corporations of the U.S.
Government, there were no investments in securities of any one issuer
which exceeded 10% of the consolidated stockholders&#146; equity of the
Registrant at December&nbsp;31, 1999.</TD>
</TR>
</TABLE>
<P align="left"><B>III. LOAN PORTFOLIO</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(A)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Types of Loans &#151; Total loans on the balance sheet are comprised
of the following classifications at December&nbsp;31 for the years
indicated.</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="35%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left"><FONT size="2">(Thousands)</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Commercial, financial,
agricultural and
commercial tax-exempt
loans</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">89,361</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">76,682</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">73,177</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">75,460</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">66,125</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Mortgage warehouse loans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">85,542</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Real estate mortgage loans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">154,717</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">152,390</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">120,345</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">133,739</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">119,739</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Installment loans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">64,737</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">61,274</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">64,593</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">62,277</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">55,798</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Total loans</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">394,357</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">290,346</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">258,115</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">271,476</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">241,662</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">5
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left"><B>III. LOAN PORTFOLIO </B>(Continued)

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(B)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Maturities and Sensitivities of Loans to Changes in
Interest Rates &#151; The following is a schedule of maturities and
sensitivities of loans to changes in interest rates, excluding real
estate mortgage, mortgage warehousing and installment loans, as of
December&nbsp;31, 1999:</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="48%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>One year or</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>One through</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>After five</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left"><FONT size="2">Maturing or repricing (thousands)</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>less</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>five years</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>years</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Commercial, financial,
agricultural and commercial
tax-exempt loans</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">33,151</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">45,351</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">10,859</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">89,361</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The following is a schedule of fixed-rate and variable-rate commercial,
financial, agricultural and commercial tax-exempt loans due after one year.
(Variable-rate loans are those loans with floating or adjustable interest
rates.)</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="66%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left"><FONT size="2">(Thousands)</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Fixed Rate</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Variable Rate</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Total commercial, financial,
agricultural, and commercial
tax-exempt loans due after
one year</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">29,741</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">26,469</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="left">(C)&nbsp;Risk Elements

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">1.</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Nonaccrual, Past Due and Restructured Loans &#151; The following schedule
summarizes nonaccrual, past due and restructured loans.</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="40%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" colspan="2"><FONT size="2">December 31 (thousands)</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">(a)&nbsp;Loans accounted
for on a nonaccrual
basis</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,173</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">64</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">319</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">316</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">668</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">(b)&nbsp;Accruing loans
which are contractually
past due 90&nbsp;days or more
as to interest and
principal payments</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">401</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">830</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">862</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">682</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">533</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">(c)&nbsp;Loans not included
in (a)&nbsp;or (b)&nbsp;which
are &#147;Troubled Debt
Restructuring&#146;s&#148; as
defined by SFAS No.&nbsp;15</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Totals</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,574</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">894</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,181</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">998</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,201</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The increase in nonaccrual loans in 1999 is primarily due to the addition
of 4 mortgage loans totaling $375 thousand, 8 consumer loans totaling $252
thousand and 7 commercial loans totaling $546 thousand.</TD>
</TR>
</TABLE>
<P align="center">6
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="left"><B>III. LOAN PORTFOLIO </B>(Continued)

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="92%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">(Thousands)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Gross interest income that would have been recorded on
nonaccrual loans out standing as of Decmber 31, 1999 in
the period if the loans had been current, in accordance
with their original terms and had been outstanding
throughout the period or since origination if held for
part of the period</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">62</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Interest income actually recorded on nonaccrual loans
outstanding as of December&nbsp;31, 1998 and included in net
income for the period</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Interest income not recognized during the period on
nonaccrual loans outstanding as of December&nbsp;31, 1999.</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">62</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Discussion of Nonaccrual Policy</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">From time to time, the Bank obtains information which may lead management
to believe that the collection of interest may be doubtful on a particular
loan. In recognition of such, it is management&#146;s policy to convert the
loan from an &#147;earning asset&#148; to a nonaccruing loan. Further, it is
management&#146;s policy to place a commercial loan on a nonaccrual status when
delinquent in excess of 90&nbsp;days, unless the Loan Committee approves
otherwise. All loans placed on nonaccrual status must be reviewed by the
officer responsible for the loan, the senior lending officer and the loan
review officer. The loan review officer monitors the loan portfolio for
any potential problem loans.</TD>
</TR>
</TABLE>
<P align="left">2. Potential Problem Loans

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">There are no loans where there are serious doubts as to the ability of the
borrower to comply with present loan repayment terms which are not
included in Section&nbsp;1 above at December&nbsp;31, 1999.</TD>
</TR>
</TABLE>
<P align="left">3. Foreign outstandings

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">None</TD>
</TR>
</TABLE>
<P align="left">4. Loan Concentrations

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">As of December&nbsp;31, 1999 there are no significant concentrations of
loans exceeding 10% of total loans other than those disclosed in
Item&nbsp;III above.</TD>
</TR>
</TABLE>
<P align="center">7
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P align="left"><B>III. LOAN PORTFOLIO </B>(Continued)

<P align="left">(D) Other Interest-Bearing Assets

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">There are no other interest-bearing assets as of December&nbsp;31, 1999 which
would be required to be disclosed under Item&nbsp;III C.1 or 2 if such assets
were loans.</TD>
</TR>
</TABLE>
<P align="left"><B>IV. SUMMARY OF LOAN LOSS EXPERIENCE</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(A)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The following is an analysis of the activity in the allowance for loan
losses account:</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="37%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" colspan="2"><FONT size="2">(Thousands)</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>LOANS</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Loans outstanding at the
end of the period (1)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">394,357</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">290,346</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">258,115</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">271,476</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">241,662</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Average loans outstanding
during the period (1)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">306,142</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">268,209</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">269,348</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">256,580</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">226,198</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">(1)&nbsp;Net of unearned
income and deferred
loan fees</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="45%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" colspan="2"><FONT size="2">ALLOWANCE FOR LOAN LOSSES</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Balance at beginning of the period</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,787</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,702</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,435</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,777</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,555</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Loans charged-off:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Commercial and agricultural loans</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(50</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(39</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(56</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(11</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(45</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Real estate mortgage loans</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(42</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(14</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(17</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Installment loans</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,135</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,275</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,384</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(532</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(231</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Total loans charged-off</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,227</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,316</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,441</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(557</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(293</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Recoveries of loans previously
charged-off:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Commercial and agricultural loans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">82</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">27</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">358</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Real estate mortgage loans</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Installment loans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">281</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">395</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">333</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">122</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">149</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Total loan recoveries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">363</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">401</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">383</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">149</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">515</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net loans (charged-off)/recovered</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(864</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(915</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,058</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(408</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">222</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Provision charged to operating expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,100</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,325</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">66</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Provision charged to discontinued
operations</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">250</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Balance at the end of the period</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,273</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,787</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,702</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,435</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,777</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Ratio of net (charge-offs)/recoveries to
coverage loans outstanding for the period</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(0.28</FONT></TD>
<TD nowrap><FONT size="2">)%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(0.34</FONT></TD>
<TD nowrap><FONT size="2">)%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(0.39</FONT></TD>
<TD nowrap><FONT size="2">)%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(0.16</FONT></TD>
<TD nowrap><FONT size="2">)%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.10</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The provision for loan losses in 1996 and 1995 were below normal because
of low delinquency experienced in all loan portfolios at that time.
Management expects charge-offs in all other portfolios to remain at the
current levels.</TD>
</TR>
</TABLE>
<P align="center">8
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P align="left"><B>IV. SUMMARY OF LOAN LOSS EXPERIENCE </B>(Continued)

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(B)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The following schedule is a breakdown of the allowance for loan
losses allocated by type of loan and the percentage of loans in
each category to total loans.</TD>
</TR>
</TABLE>
<P align="left"><B>Allocation of the Allowance for Loan Losses at December&nbsp;31.(thousands)</B>


<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="left">
<TR valign="bottom">
<TD width="40%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Allowance</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>% of Total</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Allowance</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>% of Total</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Allowance</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>% of Total</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Loans</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Loans</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Loans</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Commercial,
financial and
agricultural</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">819</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.2</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">725</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.2</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">765</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.3</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Real estate mortgage</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">149</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">61</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">82</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Mortgage warehousing</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">812</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.2</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Installment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,345</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.3</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,800</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.6</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,290</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.5</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Unallocated</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">148</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">201</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">565</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,273</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.8</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,787</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">1.1</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,702</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">1.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
<BR clear="all">
<P align="right">[Additional columns below]
<P>[Continued from above table, first column(s) repeated]


<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="left">
<TR valign="bottom">
<TD width="50%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1995</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Allowance</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>% of Total</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Allowance</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>% of Total</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Loans</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Loans</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Commercial,
financial and
agricultural</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">576</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.2</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">733</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.3</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Real estate mortgage</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">102</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">139</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Mortgage warehousing</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Installment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,075</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.4</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">655</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.3</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Unallocated</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">682</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,250</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,435</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">1.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,777</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">0.6</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
<BR clear="all">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The increase in the reserve allocation for installment
loans from 1995 to 1996 is primarily the result of the change in
methodology for the historical portion of the allowance
calculation. In 1996, the Bank began using the industry average
charge-off rate instead of the Bank&#146;s historical charge-off rate
which was used in previous years. This change in methodolgy
resulted in a $325 increase in the portion of the allowance
allocated to installment loans in 1996.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">In 1998, $277 thousand of the increase in the allowance
allocated to installment loans is related to loans originated at
the Loan Store. The majority of the assets of The Loan Store
were sold in August&nbsp;1999. The remaining increase in the
allocation associated with installment loans is related to the
methodology adopted in 1996 in which the higher of the Bank or
the industry average charge-off rate is utilized. The industry
average historical rate was higher than Banks historical
charge-off rate in 1998 resulting in an additional allocation to
the installment loan portfolio of $160 thousand.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">In 1999, Horizon began a mortgage warehousing program. This
program is described in the &#147;Management Discussion and Analysis&#148;
and Note 1 of the Registrant&#146;s Annual Report to Shareholders,
Exhibit&nbsp;13.</TD>
</TR>
</TABLE>
<P align="left"><B>V. DEPOSITS</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Information required by this section is incorporated by reference to the information appearing under the
caption &#147;Summary of Selected Financial Data&#148; of the Registrant&#146;s Annual Report to Shareholders, Exhibit&nbsp;13.</TD>
</TR>
</TABLE>
<P align="left"><B>VI. RETURN ON EQUITY AND ASSETS</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Information required by this section is incorporated by reference to the
information appearing under the caption &#147;Summary of Selected Financial Data&#148;
of the Registrant&#146;s Annual Report to Shareholders, Exhibit&nbsp;13.</TD>
</TR>
</TABLE>
<P align="left"><B>VII. SHORT-TERM BORROWINGS</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">There were no categories of short-term borrowings for which the
average balance outstanding during the period was 30&nbsp;percent or more
of shareholders&#146; equity at the end of the period.</TD>
</TR>
</TABLE>
<P align="center">9
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P><B>Regulation</B>

<P>The earnings and growth of the banking industry and the Registrant are affected
not only by the general economic conditions, but also by the credit policies of
monetary authorities, particularly the Federal Reserve System. An important
function of the Federal Reserve System is to regulate the national supply of
bank credit in order to contest recessionary trends and curb inflationary
pressures. Among the instruments of monetary policy used by the Federal
Reserve System to implement these objectives are open market operations in U.S.
Government securities, changes in the discount rate on member bank borrowings,
and changes in reserve requirements against member bank deposits. These means
are used in varying combinations to influence overall growth of bank loans,
investments and deposits and may also affect interest rates charged on loans or
paid on deposits. The monetary policies of the Federal Reserve System have had
a significant effect on the operating results of commercial banks in the past
and are expected to continue to do so in the future. Because of changing
conditions in the national and international economy and the money markets, and
as a result of actions by monetary and fiscal authorities, including the
Federal Reserve System, interest rates, credit availability and deposit levels
may change due to circumstances beyond the control of the Registrant or Bank.

<P>The Registrant, as a bank holding company, is subject to regulation under the
Bank Holding Company Act of 1956, as amended (Act), and is registered with the
Board of Governors of the Federal Reserve System (Board of Governors). Under
the Act, the Registrant is required to obtain prior approval of the Board of
Governors before acquiring direct ownership or control of more than 5% of the
voting shares of any bank. With certain exceptions, the Act precludes the
Registrant from acquiring direct or indirect ownership or control of more than
5% of the voting shares of any company which is not a bank and from engaging in
any business other than that of banking, managing and controlling banks, or
furnishing services to its subsidiary. The Registrant may engage in, and may
own shares of companies engaged in, certain activities found by the Board of
Governors to be so closely related to banking as to be a proper incident
thereto.

<P>The Registrant is required to file annual reports of its operations with the
Board of Governors and such additional information as they may require pursuant
to the Act, and the Registrant and Bank are subject to examination by the Board
of Governors. Further, the Registrant and Bank are prohibited from engaging in
certain tie-in arrangements with respect to any extension of credit or
provision of property or services.

<P>The Board of Governors also possesses the authority through cease and desist
powers to regulate parent holding company and nonbank subsidiaries where action
of a parent holding company or its nonbank subsidiaries constitutes a serious
threat to the safety, soundness or stability of a subsidiary bank. Federal
bank regulatory agencies also have the power to regulate debt obligations
issued by bank holding companies. Included in these powers is the authority to
impose interest ceilings and reserve requirements on such debt obligations.

<P>The acquisition of banking subsidiaries by bank holding companies is subject to
the jurisdiction of, and requires the prior approval of, the Federal Reserve
and, for institutions resident in Indiana, the Indiana Department of Financial
Institutions. Bank holding companies located in Indiana are permitted to
acquire banking subsidiaries throughout the state, subject to limitations based
upon the percentage of total state deposits of the holding company&#146;s subsidiary
banks. Further, Indiana law permits interstate bank holding company
acquisitions on a reciprocal basis, subject to certain limitations. Beginning
July&nbsp;1, 1992, Indiana law permits the Registrant to acquire banks, and be
acquired by bank holding companies, located in any state in the country which
permits reciprocal entry by Indiana bank holding companies.

<P>The Registrant, Bank, Horizon Trust, Horizon Insurance, Insurance Company and
Loan Store are &#147;affiliates&#148; within the meaning of the Federal Reserve Act. The
Federal Reserve Act and the Federal Deposit Insurance Act limit the amount of
the Bank&#146;s loans or extensions of credit to affiliates, its investments in the
stock or other securities thereof, and its taking of such stock or securities
as collateral for loans to any borrower.

<P>Bank, as a national bank, is regulated and regularly examined by the Office of
the Comptroller of the Currency (OCC). In addition to certain statutory
limitations on the payment of dividends, approval of the OCC is required for
any dividend to the Registrant by Bank if the total of all dividends, including
any proposed dividend, declared by Bank in any calendar year exceeds the total
of its net profits (as defined by the OCC) for that year combined with its
retained net profits for the preceding two years, less any required transfers
to surplus.

<P>The Federal Reserve Board implemented risk-based capital requirements for banks
and bank holding companies in December, 1988. The risk-based capital
requirements have little effect on the Registrant because existing capital is
in excess of the requirements. (See additional discussion in Management&#146;s
Discussion and Analysis in Registrant&#146;s Annual Report to Shareholders, Exhibit
13.)
<P align="center">10
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P align="left">(d) <B>Financial Information about Foreign and Domestic Operations and Export Sales</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">None</TD>
</TR>
</TABLE>
<P align="left">(e) <B>Available Information</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">N/A</TD>
</TR>
</TABLE>
<!-- link2 "<B>ITEM 2. PROPERTIES</B>" -->
<P align="left"><B>ITEM 2. PROPERTIES</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The main office of the Registrant and Bank is located at 515 Franklin
Square, Michigan City, Indiana. The building located adjacent to the main
office of the Registrant and Bank, at 502 Franklin Square, houses the credit
administration, operations and micro-computer departments of Bank. In
addition to these principal facilities, the Bank has eight sales offices
located at:</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">515 Franklin Square, Michigan City, Indiana</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">3631 South Franklin Street, Michigan City, Indiana</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">117 E. First St., Wanatah, Indiana</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">1410 Lincolnway, LaPorte, Indiana</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">754 Indian Boundary Road, Chesterton, Indiana</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">4208 N. Calumet, Valparaiso, Indiana</TD>
</TR>
<TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">6504 U.S. Highway 6, Portage, Indiana</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">265 U.S. Highway 30, Valparaiso, Indiana</TD>
</TR>
</TABLE>
<!-- link2 "<B>ITEM 3. LEGAL PROCEEDINGS</B>" -->
<P align="left"><B>ITEM 3. LEGAL PROCEEDINGS</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The information required under this Item is incorporated by reference to
the information appearing under the caption &#147;Note 18 &#151; Commitments, Off-Balance
Sheet Risk and Contingencies&#148; of the registrants Annual Report to Shareholders,
Exhibit&nbsp;13.</TD>
</TR>
</TABLE>
<!-- link2 "<B>ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B>" -->
<P align="left"><B>ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">No matters were submitted to a vote of the Registrant&#146;s stockholders during
the fourth quarter of the 1999 fiscal year.</TD>
</TR>
</TABLE>
<P align="center">11
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P align="center"><B>PART II</B>

<!-- link2 "<B>ITEM 5. MARKET FOR REGISTRANT&#146;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B>" -->
<P align="left"><B>ITEM 5. MARKET FOR REGISTRANT&#146;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The information required under this item is incorporated by reference to
the information appearing under the caption &#147;Market for Horizon&#146;s Common
Stock and Related Stockholder Matters&#148; of the Registrant&#146;s Annual Report to
Shareholders, Exhibit&nbsp;13.</TD>
</TR>
</TABLE>
<!-- link2 "<B>ITEM 6. SELECTED FINANCIAL DATA</B>" -->
<P align="left"><B>ITEM 6. SELECTED FINANCIAL DATA</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The information required under this item is incorporated by reference to
the information appearing under the caption &#147;Summary of Selected Financial
Data&#148; of the Registrant&#146;s Annual Report to Shareholders, Exhibit&nbsp;13.</TD>
</TR>
</TABLE>
<!-- link2 "<B>ITEM 7. MANAGEMENT&#146;S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>" -->
<P align="left"><B>ITEM 7. MANAGEMENT&#146;S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&#146;s discussion and analysis of financial condition and results of
operations appears in the 1999 Annual report to Shareholders, Exhibit&nbsp;13 and is
incorporated herein by reference.

<!-- link2 "<B>ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</B>" -->
<P align="left"><B>ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The consolidated financial statements and supplementary data required
under this item are incorporated herein by reference to the Annual Report to
Shareholders, Exhibit&nbsp;13. The Registrant is not required to furnish the
supplementary financial information specified by Item&nbsp;302 of Regulation&nbsp;S-K.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Consolidated Balance Sheets, December&nbsp;31, 1999 and 1998</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Consolidated Statements of Income for the years ended
December&nbsp;31,1999, 1998 and 1997</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Consolidated Statements of Changes in Stockholders&#146;
Equity for the years ended December&nbsp;31,1999,
1998 and 1997</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Consolidated Statements of Cash Flows for the years
ended December&nbsp;31, 1999, 1998 and 1997</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Notes to the Consolidated Financial Statements</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Report of Independent Public Accountants</TD>
</TR>
</TABLE>
<!-- link2 "<B>ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</B>" -->
<P align="left"><B>ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">None</TD>
</TR>
</TABLE>
<P align="center"><B>PART III</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Information relating to the following items will be included in the
Registrant&#146;s definitive proxy statement for the annual meeting of shareholders
to be held May&nbsp;4, 2000 (&#147;2000 Proxy Statement&#148;). The 2000 Proxy Statement will
be filed with the Commission within one hundred twenty days of the close of the
Registrant&#146;s last fiscal year and is in part incorporated into this Form&nbsp;10-K
Annual Report by reference.</TD>
</TR>
</TABLE>
<!-- link2 "<B>ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</B>" -->
<P align="left"><B>ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</B>

<!-- link2 "<B>ITEM 11. EXECUTIVE COMPENSATION</B>" -->
<P align="left"><B>ITEM 11. EXECUTIVE COMPENSATION</B>

<!-- link2 "<B>ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B>" -->
<P align="left"><B>ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B>

<!-- link2 "<B>ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>" -->
<P align="left"><B>ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>

<P align="center">12
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>PART IV</B>

<!-- link2"--><B>ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K</B>
<P align="left"><B>ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K</B>

<P align="left"><B>(a) 1. Financial Statements</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The following consolidated financial statements of the Registrant appear
in the 1999 annual report to shareholders on the pages referenced and are
specifically incorporated by reference under Item&nbsp;8 of this Form&nbsp;10-K:</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="89%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Annual Report</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Page Number</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Consolidated Balance Sheets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">30</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Consolidated Statements of Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">31</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Consolidated Statements of Changes in
Stockholders&#146; Equity</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">32</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Consolidated Statements of Cash Flows</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" nowrap><FONT size="2">33 - 34</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Notes to the Consolidated Financial Statements</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">35 - 57</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Report of Independent Public Accountants</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">58</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><B>(a) 2. Financial Statement Schedules</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Financial statement schedules are omitted for the reason that they
are not required or are not applicable, or the required information
is included in the financial statements.</TD>
</TR>
</TABLE>
<P align="left"><B>(a) 3. Exhibits</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Reference is made to the Exhibit&nbsp;Index which is found on
page 16 of this Form&nbsp;10-K.</TD>
</TR>
</TABLE>
<P align="left"><B>(b) Reports on Form&nbsp;8-K</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">None</TD>
</TR>
</TABLE>
<P align="left"><B>Exhibits</B>

<P align="left"><B>(c)&nbsp;Reference is made to the Exhibit&nbsp;Index which is found on page 16 of this Form&nbsp;10-K.</B>

<P align="left"><B>(d) Financial Statement Schedules</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Financial statement schedules are omitted for the reason that they are
not required or are not applicable, or the required information is
included in the financial statements.</TD>
</TR>
</TABLE>
<P align="center">13
<!-- PAGEBREAK -->
<P><HR noshade><P>




<P align="center"><B>SIGNATURES</B>

<P>Pursuant to the requirements of Section&nbsp;13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="70%" align="center">
<TR valign="bottom">
<TD width="8%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="70%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">HORIZON BANCORP</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">(Registrant)</FONT></TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Date</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
3/27/2000
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/ Robert C. Dabagia</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
<HR size="1">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Robert C. Dabagia</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Chairman &#38; Chief Executive Officer</FONT></TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Date</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
3/27/2000
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/ Diana E. Taylor</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
<HR size="1">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Diana E. Taylor</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Chief Financial Officer/Secretary/Treasurer</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">14
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P>Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="21%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="74%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Date</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Signature and Title</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Dale W. Alspaugh</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Dale W. Alspaugh, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ George R. Averitt</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
George R. Averitt, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Robert C. Dabagia</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Robert C. Dabagia, Director
Chairman &#38; Chief Executive Officer</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Craig M. Dwight</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Craig M. Dwight, Director
President</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Robert E. McBride</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Robert E. McBride, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Larry N. Middleton</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Larry N. Middleton, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Bruce E. Rampage</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Bruce E. Rampage, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Gene L. Rice</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Gene L. Rice, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Susan D. Sterger</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Susan D. Sterger, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Robert E. Swinehart</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Robert E. Swinehart, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3/27/2000</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
/s/ Spero W. Valavanis</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Spero W. Valavanis, Director</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">15
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- link1" --><B>EXHIBIT INDEX</B>
<P align="center"><B>EXHIBIT INDEX</B>

<P>The following exhibits are included in this Form&nbsp;10-K or are incorporated by
reference as noted in the following table:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" align="center">
<TR valign="bottom">
<TD width="8%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="51%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="31%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>EXHIBIT</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>SEQUENTIAL</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>NUMBER</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>DESCRIPTION</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>PAGE NUMBERS</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="3">3.1</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
ARTICLES OF INCORPORATION OF HORIZON<BR>
BANCORP
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
File number 0-10792</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">3.2</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
BY-LAWS OF HORIZON BANCORP
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
File number 0-10792</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.1</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS-1987 STOCK OPTION<BR>
STOCK AND APPRECIATION RIGHTS PLAN OF<BR>
HORIZON BANCORP
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
File number 0-10792</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.2</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS-NONQUALIFIED STOCK<BR>
OPTION AND STOCK APPRECIATION RIGHTS<BR>
AGREEMENT
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
File number 0-10792</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.3</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS-SUPPLEMENTAL<BR>
EMPLOYEE RETIREMENT PLAN
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
TO 12/31/96 FORM 10-K</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.4</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS-FIRST AMENDMENT<BR>
TO SUPPLEMENTAL EMPLOYEE RETIREMENT<BR>
PLAN
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
TO 12/31/96 FORM 10-K</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.5</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS-SECOND AMENDMENT TO
SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
TO 12/31/96 FORM 10-K</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.6</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS &#151; FIRST AMENDMENT
TO THE 1987 STOCK OPTION AND STOCK
APPRECIATION RIGHTS PLAN
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
TO 1997 PROXY STATEMENT</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.7</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS &#151; 1997 KEY
EMPLOYEES STOCK OPTION AND STOCK
APPRECIATION RIGHTS PLAN
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED BY REFERENCE<BR>
TO 1997 PROXY STATEMENT</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.8</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS &#151; DIRECTORS
DEFERRED COMPENSATION PLAN
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED HEREIN</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.9</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS &#151; EXECUTIVE
EMPLOYMENT CONTRACT &#151; LAWRENCE J.
MAZUR
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED HEREIN</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.10</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS &#151; CHANGE OF
CONTROL AGREEMENT
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED HEREIN</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">10.11</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
MATERIAL CONTRACTS &#151; EXECUTIVE
EMPLOYMENT CONTRACT &#151; JAMES D. NEFF
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED HEREIN</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">11</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
STATEMENT REGARDING COMPUTATION<BR>
OF PER SHARE EARNINGS-REFER TO<BR>
ANNUAL REPORT FOOTNOTE 1 (EXHIBIT 13)
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">ANNUAL REPORT ATTACHED<BR>
PAGE 38</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">13</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
REGISTRANT&#146;S ANNUAL REPORT TO
SHAREHOLDERS FOR THE YEAR ENDED
DECEMBER 31, 1999 (NOT DEEMED FILED
EXCEPT FOR PORTIONS THEREOF WHICH
ARE SPECIFICALLY INCORPORATED BY
REFERENCE INTO THIS FORM 10-K)
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">ANNUAL REPORT<BR>
ATTACHED</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">21</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
SUBSIDIARIES OF THE REGISTRANT
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED HEREIN</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="3">27</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">
FINANCIAL DATA SCHEDULE
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="3">INCORPORATED HEREIN</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">16



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