The Hancock-Henderson Quill, Inc.

Bank of Stronghurst Annual Meeting

Approximately 75 stockholders and guests attended the noon luncheon buffet at the Bank of Stronghurst annual stockholders meeting Tuesday, January 23, 2007 at Country Fun Restaurant, near Biggsville.

Charles E. Vaughn, President and C.E.O. led stockholders and guests in the Pledge of Allegiance. The invocation was given by Director, Kenneth Nimrick.

George Hennenfent, Director, was chairman of the meeting. Judges were Mitchell Cortelyou, and Bob Dillon. Marlene Knutstrom was secretary of the meeting.

After enjoying a delicious meal provided by the bank, the meeting was opened at approximately 1:30 p.m. Financial reports were given by Executive Vice President and Cashier, Rodney Brake.

Blake reported another profitable year for the Bank of Stronghurst. Total assets at year end were $63,987,240.88, which were up slightly over 2005, as were capital to asset ratio (17.09%) keeping us in the upper 10.0% for banks our size.

He also reported this was the first full year of operation for the newest branch banks, which has allowed the bank's market area to increase and also allowed them to offer additional banking services to the surrounding communities.

Mr. Brake closed by stating that with the bank's strong capital position the Bank of Stronghurst should experience another year of profitability and growth.

Jerry Keimig, Senior Vice President, and Farm Loan Officer, gave the loan report. Jerry reported total bank loans at year end of 20.3 million which increased approximately 2.2 million over 2005.

Commercial loans totaled 6.4 million and real estate loans totals were 13.9 million. He reported the present loan to deposit ratio of 39% and loan to asset ratio of 32%, which were also increases over 2005.

In closing, Mr. Keimig, reported to the stockholders and guests, that the Bank of Stronghurst has available nearly 60 combined years of lending experience and will continue to be competitive and to work hard for our present customers and any potential new customers.

Judges reported there were 3,704 shares of stock represented in person and 1,271 shares represented in proxy, making a total of 4,974 shares represented. Chairman George Hennenfent declared a quorum present for transaction of business.

Elected Directors of Bank of Stronghurst for 2007, were:

Rodney Brake
Sidney L. Dowell
George Hennenfent
Charles E. Neff
Kenneth Nimrick
Charles E. Vaughn
W. William Waddill

Marlene Knutstrom conducted the drawing for door prizes and fresh floral arrangements. The winners were: Bonnie Hensley and Helen Brooks, winners of fresh floral centerpieces; Curt Eisenmayer and Bob Dillon, winners of 2006 (11 coin) proof sets; Don Anguish and Edward Brooks, winners of stadium blankets.

A motion to adjourn was made by Bonnie Hensley, and seconded by Duane Harden, and carried unanimously.

The Bank of Stronghurst Annual Stockholders meeting was adjourned at 1:57 p.m.

Following the annual stockholders meeting, Tuesday, January 23, 2007, the newly elected Board of Directors of the Bank of Stronghurst met at the bank for the organizational meeting.

Officers for 2007 were appointed as follows:

George Hennenfent, Chairman of the Board
Charles E. Vaughn, President and C.E.O.
Jerry Keimig, Senior Vice President and Farm Loan Officer
Rodney Brake, Executive Vice President and Cashier
Gary Kline, Vice President
Shawn McKoon, Vice President
Jane Malcolm, Assistant Vice President
Stacie Newberry, Assistant Vice President
Josh DeSotel, Loan Officer
Marlene Knutstrom, Executive Secretary

Directors of Bank of Stronghurst for 2007 are from left front: Ken Nimrick and Chuck Vaughn. From back left Rodney Brake, Chuck Neff, George Hennenfent, Sid Dowell, and Bill Waddell.