CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
OPERATING ACTIVITIES:
Net income	$ 13,044	$ 7,886
Adjustments to reconcile net income to net cash provided by operating activities:
(Credit) provision for loan losses	(500)	10,200
Depreciation and amortization of bank premises and equipment	1,203	1,182
Amortization of net premium on securities	2,015	2,083
Deferred income tax expense	7,960	3,713
Net gains on sales of securities	(1,046)	(3,514)
Net gains on sales of loans held for sale		(322)
Income from bank owned life insurance	(265)	(353)
Change in fair value of derivative contracts	153	97
Stock-based compensation expense - net	807	989
Directors' stock plan expense	108	78
Net payments and proceeds from sales of loans held for sale	3,580	992
Decrease in other assets	1,779	2,251
Decrease in prepaid FDIC assessment	1,276	1,570
Decrease in other accrued expenses and other liabilities	(1,016)	(160)
Net cash provided by operating activities	29,098	26,692
INVESTING ACTIVITIES:
Proceeds from sales of securities available for sale	108,537	89,284
Proceeds from prepayments and maturities of securities available for sale	79,138	122,003
Purchases of securities held to maturity		(22,000)
Purchases of securities available for sale	(124,620)	(212,817)
Decrease in Federal Home Loan Bank and other restricted stock	1,979	88
Increase in loans - net	(43,742)	(22,351)
Benefit payments received on bank owned life insurance	1,239
Purchases of bank premises and equipment - net	(466)	(1,201)
Net cash provided by (used in) investing activities	22,065	(46,994)
FINANCING ACTIVITIES:
Increase (decrease) in demand and savings deposits	32,271	(16,061)
Increase in time deposits	2,705	52,206
Decrease in other temporary borrowings	(23,000)	(5,000)
Cash dividends paid on common stock	(2,538)	(2,483)
Cash dividends paid on preferred stock	(1,381)	(1,382)
Proceeds from reissuance of treasury stock	1,069	1,184
Proceeds from shares issued pursuant to compensation awards	229
Proceeds from shares issued under dividend reinvestment plan	320	240
Net cash provided by financing activities	9,675	28,704
NET INCREASE IN CASH AND CASH EQUIVALENTS	60,838	8,402
CASH AND CASH EQUIVALENTS - JANUARY 1	23,121	28,624
CASH AND CASH EQUIVALENTS - SEPTEMBER 30	83,959	37,026
SUPPLEMENTAL DATA:
Interest paid	7,149	9,199
Income taxes paid	714	802
Loans transferred to held for sale	$ 3,580

STATE BANCORP INC 10-Q