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| New      Jersey                                                         |   | 22-3665653                               |
|-------------------------------------------------------------------------|--------|------------------------------------------|
| (State      or Other Jurisdiction ofIncorporation      or Organization) |   | IRS      Employer Identification Number) |

|   | 2650      Route 130, P.O. Box 634, Cranbury, NJ  08512  |   |
|--------|-------------------------------------------------------------------|--------|
|   | (Address      of Principal Executive Offices, including Zip Code) |   |

|   | (609)      655-4500                                             |   |
|--------|-----------------------------------------------------------------|--------|
|   | (Registrant’s      telephone number, including area code) |   |

|   | Common      Stock, No Par ValueStock      Purchase Rights Relating to Common Stock, No Par Value |   |
|--------|--------------------------------------------------------------------------------------------------|--------|

|   |  None |   |
|--------|------------|--------|

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| Large      accelerated filer                             | o      | Accelerated      filer         | o |
|----------------------------------------------------------|--------|--------------------------------|---|
|  Non-accelerated      filer                         | o      | Smaller      reporting company | x |
| (Do      not check if a smaller reporting company)  |   |                           |

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|           | FORM10-K                                                                                                                                |   |   |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|           |
|           | TABLE OF      CONTENTS                                                                                                                  |   |   |
|           |
|           | PART I                                                                                                                                  |   |   |
|           |
| Item 1.   | Business                                                                                                                           |   | 1      |
| Item 1A.       | Risk Factors                                                                                                                            |   | 11     |
| Item 1B.       | Unresolved Staff Comments                                                                                                               |   | 17     |
| Item 2.   | Properties                                                                                                                         |   | 18     |
| Item 3.   | Legal Proceedings                                                                                                                  |   | 19     |
| Item 4.   | (Removed and Reserved).                                                                                                            |   | 19     |
|           |
|           | PART II                                                                                                                                 |   |   |
|           |
| Item 5.   | Market for Registrant’s Common Equity, Related Shareholder      Matters and Issuer Purchases of Equity      Securities  |   | 19     |
| Item 6.   | Selected Financial Data                                                                                                            |   | 20     |
| Item 7.   | Management’s Discussion and Analysis of Financial Condition      and Results of Operation                                    |   | 20     |
| Item 7A.       | Quantitative and Qualitative Disclosures About Market      Risk                                                                    |   | 41     |
| Item 8.   | Financial Statements and Supplementary Data                                                                                        |   | 41     |
| Item 9.   | Changes in and Disagreements With Accountants on Accounting      and Financial Disclosure                                          |   | 41     |
| Item 9A.       | Controls and Procedures                                                                                                            |   | 41     |
| Item 9B.       | Other Information                                                                                                                       |   | 42     |
|           |
|           | PART III                                                                                                                                |   |   |
|           |
| Item 10.  | Directors, Executive Officers and Corporate      Governance                                                                        |   | 42     |
| Item 11.  | Executive Compensation                                                                                                             |   | 42     |
| Item 12.  | Security Ownership of Certain Beneficial Owners and      Management and Related Shareholder Matters                                |   | 42     |
| Item 13.  | Certain Relationships and Related Transactions, and Director      Independence                                                     |   | 44     |
| Item 14.  | Principal Accounting Fees and Services                                                                                             |   | 44     |
|           |
|           | PART IV                                                                                                                                 |   |   |
|           |
| Item 15.  | Exhibits, Financial Statement Schedules                                                                                            |   | 44     |
|           |
| SIGNATURES     |                                                                                                                                    | 49     |

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|   | · | personal      service; |
|--------|--------|------------------------|

|   | · | expansion      of its branch network; |
|--------|--------|---------------------------------------|

|   | · | innovative      product offerings; and |
|--------|--------|----------------------------------------|

|   | · | technological      advances and e-commerce. |
|--------|--------|---------------------------------------------|

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|   | · | allows      bank holding companies meeting management, capital and Community      Reinvestment Act standards to engage in a substantially broader range of      non-banking activities than is permissible for a bank holding company,      including insurance underwriting and making merchant banking investments      in commercial and financial companies, if a bank holding company elects to      become a financial holding company, it files a certification, effective in      30 days, and thereafter may engage in certain financial activities without      further approvals; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | allows      banks to establish subsidiaries to engage in certain activities which a      financial holding company could engage in, if the bank meets certain      management, capital and Community Reinvestment Act    standards; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | allows      insurers and other financial services companies to acquire banks and      removes various restrictions that currently apply to bank holding company      ownership of securities firms and mutual fund advisory companies; and      establishes the overall regulatory structure applicable to financial      holding companies that also engage in insurance and securities      operations. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      prohibition on personal loans made or arranged by the issuer to its      directors and executive officers (except for loans made by a bank subject      to Regulation O of the Federal ReserveBoard); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | independence      requirements for audit committeemembers; |
|--------|--------|------------------------------------------------------------|

|   | · | disclosure      of whether at least one member of the audit committee is a “financial      expert” (as such term is defined by the Securities and Exchange Commission      (“SEC”) and if not, why not; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | independence      requirements for outside auditors; |
|--------|--------|------------------------------------------------------|

|   | · | a      prohibition by a company’s registered public accounting firm from      performing statutorily mandated audit services for the company if the      company’s chief executive officer, chief financial officer, comptroller,      chief accounting officer or any person serving in equivalent positions had      been employed by such firm and participated in the audit of such company      during the one-year period preceding the audit initiation      date; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | certification      of financial statements and annual and quarterly reports by the principal      executive officer and the principal financial  officer; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      forfeiture of bonuses or other incentive-based compensation and profits      from the sale of an issuer’s securities by directors and senior officers      in the twelve month period following initial publication of any financial      statements that later require restatement due to corporate      misconduct; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | disclosure      of off-balance sheet transactions; |
|--------|--------|----------------------------------------------------|

|   | · | two-business      day filing requirements for insiders filing Forms  4; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | disclosure      of a code of ethics for financial officers and filing a Form 8-K for a      change or waiver of such code; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | “real      time” filing of periodic reports; |
|--------|--------|----------------------------------------------------------|

|   | · | posting      of certain SEC filings and other information on the company      website; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | the      reporting of securities violations “up the ladder” by both in-house and      outside attorneys; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | restrictions      on the use of non-GAAP financialmeasures; |
|--------|--------|-------------------------------------------------------------|

|   | · | the      formation of a public accounting oversight board;  and |
|--------|--------|-----------------------------------------------------------------|

|   | · | various      increased criminal penalties for violations of securities      laws. |
|--------|--------|-----------------------------------------------------------------------------------|

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|   | · | quarterly      fluctuations in our operating and financial  results; |
|--------|--------|----------------------------------------------------------------------|

|   | · | operating      results that vary from the expectations of management, securities analysts      and investors; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | changes      in expectations as to our future financial performance, including      financial estimates by securities analysts and  investors; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | events      negatively impacting the financial services industry which result in a      general decline in the market valuation of our common    stock; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | announcements      of material developments affecting our operations or our dividend      policy; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | future      sales of our equity securities; |
|--------|--------|---------------------------------------------|

|   | · | new      laws or regulations or new interpretations of existing laws or regulations      applicable to our business; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in accounting standards, policies, guidance, interpretations or      principles; and |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | general      domestic economic and marketconditions. |
|--------|--------|------------------------------------------------------|

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rti

| Location                               | Leased      orOwned                      | Original      Year Leasedor      Acquired | Year      of LeaseExpiration |
|----------------------------------------|------------------------------------------|-------------------------------------------|------------------------------|
| Main      Office                       |                                     |                                      |                         |
|                                   | 2650      Route 130                      | Leased                                    | 1989                         | 2010 |
|                                   | Cranbury,      New Jersey                |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Village      Office                    |                                     |                                      |                         |
|                                   | 74      North Main Street                | Owned                                     | 2005                         | --- |
|                                   | Cranbury,      New Jersey                |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Montgomery      Office                 |                                     |                                      |                         |
|                                   | 947      State Road                      | Leased                                    | 1995                         | 2013 |
|                                   | Princeton,      New Jersey               |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Plainsboro      Office                 |                                     |                                      |                         |
|                                   | Plainsboro      Village Center           | Leased                                    | 1998                         | 2021 |
|                                   | 11      Shalks Crossing Road             |                                      |                         |   |
|                                   | Plainsboro,      New Jersey              |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Hamilton      Office                   |                                     |                                      |                         |
|                                   | 3659      Nottingham Way                 | Leased                                    | 1999                         | 2014 |
|                                   | Hamilton,      New Jersey                |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Princeton      Office                  |                                     |                                      |                         |
|                                   | The      Windrows at Princeton Forrestal | Leased                                    | 2001                         | 2011 |
|                                   | 200      Windrow Drive                   |                                      |                         |   |
|                                   | Princeton,      New Jersey               |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Perth      Amboy Office                |                                     |                                      |                         |
|                                   | 145      Fayette Street                  | Leased                                    | 2003                         | 2018 |
|                                   | Perth      Amboy, New Jersey             |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Jamesburg      Office                  |                                     |                                      |                         |
|                                   | 1      Harrison Street                   | Owned                                     | 2002                         | --- |
|                                   | Jamesburg,      New Jersey               |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| West      Windsor Office               |                                     |                                      |                         |
|                                   | 44      Washington Road                  | Leased                                    | 2004                         | 2019 |
|                                   | Princeton      Jct, New Jersey           |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Fort      Lee Office                   |                                     |                                      |                         |
|                                   | 180      Main Street                     | Leased                                    | 2006                         | 2014 |
|                                   | Fort      Lee, New Jersey                |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Hightstown      Office                 |                                     |                                      |                         |
|                                   | 140      Mercer Street                   | Leased                                    | 2007                         | 2014 |
|                                   | Hightstown,      New Jersey              |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
| Mortgage      Warehouse Funding Office |                                     |                                      |                         |
|                                   | 285      Davidson Avenue                 | Leased                                    | 2009                         | 2015 |
|                                   | Somerset,      New Jersey                |                                      |                         |   |
|                                   |                                     |                                      |                         |   |
|  Lawrenceville      Property      |                                     |                                      |                         |
|                                   | 146      Lawrenceville-Pennington Road,  | Owned                                     | 2009                         | --- |
|                                   | Lawrenceville,      New Jersey           |                                      |                         |   |

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mov

gis

|                |   | 2009(1) |   |   | 2008(1) |   |
|---------------------|--------|---------|--------|--------|---------|--------|
|                |   | High    |   |   | Low     |   |   | High |   |   | Low |   |
| First      Quarter  |   | $       | 10.25  |   |    | $      | 3.85 |   |   | $ | 13.43 |   |   | $ | 9.97 |   |
| Second      Quarter |   |    | 9.51   |   |    |   | 5.71 |   |   |   | 12.08 |   |   |   | 9.71 |   |
| Third      Quarter  |   |    | 8.67   |   |    |   | 7.00 |   |   |   | 10.79 |   |   |   | 7.38 |   |
| Fourth      Quarter |   |    | 7.76   |   |    |   | 5.25 |   |   |   | 11.57 |   |   |   | 6.13 |   |

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| Period                |                   | TotalNumber      of SharesPurchased |   | AveragePrice      PaidPer      Share |   | Total      Number ofShares      PurchasedAs      Part of PubliclyAnnounced      Plan      orProgram |    | MaximumNumber      ofShares      That MayYet      be PurchasedUnder      the Plan      orProgram |   |
|-----------------------|------------------------|------------------------------------------|--------|--------------------------------------|--------|-----------------------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------------------------|--------|
| Beginning             | Ending                 |                                     |   |                                 |   |                                                                                                |    |                                                                                             |   |   |   |   |   |
| October      1, 2009  | October      31, 2009  |                                     |   | 1,093                                |   |                                                                                                | $  | 7.31                                                                                             |   |   |   | 1,093 |   |   |   | 163,233 |   |
| November      1, 2009 | November      30, 2009 |                                     |   | -                                    |   |                                                                                                |    | -                                                                                                |   |   |   | - |   |   |   | - |   |
| December      1, 2009 | December      31, 2009 |                                     |   | -                                    |   |                                                                                                |    | -                                                                                                |   |   |   | - |   |   |   | - |   |
|                  | Total                  |                                     |   | 1,093                                |   |                                                                                                | $       | 7.31                                                                                             |   |   |   | 1,093 |   |   |   | 163,233 |   |

|   | (1) | The      Company’s common stock repurchase program covers a maximum of 195,076      shares of common stock of the Company, representing 5% of the outstanding      common stock of the Company on July 21, 2005, as adjusted for subsequent      stock dividends. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (yields      on a tax-equivalent basis)                                                                                             |   | 2009    |        |   | 2008     |   |       | 2007    |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------|--------|----------|--------|------------|---------|--------|
|                                                                                                                                |   | Average |        |   |     |   |       | Average |   |   | Average |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                                                                                                                |   | Balance |        |   | Interest |   |       | Rate    |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                             |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      Funds Sold/Short-Term         Investments                                 |   | $       | 39,676,869  |   |     | $      | 116,070    |    |   |   | 0.29 | % |   | $ | 4,667,073 |   |   | $ | 112,427 |   |   |   | 2.41 | % |   | $ | 1,653,896 |   |   | $ | 101,171 |   |   |   | 6.12 | % |
| Investment      Securities:                                                                                                         |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Taxable                                                                                                     |   |    | 136,588,291 |   |     |   | 5,143,123  |    |   |   | 3.77 | % |   |   | 84,611,384 |   |   |   | 4,158,923 |   |   |   | 4.92 | % |   |   | 80,876,181 |   |   |   | 4,278,288 |   |   |   | 5.29 | % |
|     Tax-exempt      (4)                                                                                         |   |    | 12,483,060  |   |     |   | 720,245    |    |   |   | 5.77 | % |   |   | 14,471,144 |   |   |   | 829,249 |   |   |   | 5.73 | % |   |   | 22,968,401 |   |   |   | 1,296,032 |   |   |   | 5.64 | % |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total                                                                                                       |   |    | 149,071,351 |   |     |   | 5,863,368  |    |   |   | 3.93 | % |   |   | 99,082,528 |   |   |   | 4,988,172 |   |   |   | 5.03 | % |   |   | 103,844,582 |   |   |   | 5,574,320 |   |   |   | 5.37 | % |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan      Portfolio:                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Construction                                                                                                |   |    | 89,202,415  |   |     |   | 5,451,941  |    |   |   | 6.11 | % |   |   | 115,517,676 |   |   |   | 8,090,444 |   |   |   | 7.00 | % |   |   | 129,285,776 |   |   |   | 11,486,481 |   |   |   | 8.88 | % |
|     Residential      Real Estate                                                                                |   |    | 10,834,490  |   |     |   | 675,464    |    |   |   | 6.23 | % |   |   | 10,376,822 |   |   |   | 652,728 |   |   |   | 6.29 | % |   |   | 8,878,427 |   |   |   | 657,928 |   |   |   | 7.41 | % |
|      Home      Equity                                                                                      |   |    | 14,722,638  |   |     |   | 869,531    |    |   |   | 5.91 | % |   |   | 15,490,320 |   |   |   | 986,117 |   |   |   | 6.37 | % |   |   | 14,118,025 |   |   |   | 1,063,025 |   |   |   | 7.53 | % |
|     Commercial      and commercial       real      estate                    |   |    | 140,449,945 |   |     |   | 9,751,822  |    |   |   | 6.94 | % |   |   | 127,377,980 |   |   |   | 9,302,815 |   |   |   | 7.30 | % |   |   | 117,463,693 |   |   |   | 9,140,693 |   |   |   | 7.78 | % |
|      Mortgage      warehouse lines                                                                         |   |    | 114,749,562 |   |     |   | 5,305,911  |    |   |   | 4.62 | % |   |   | 57,477,364 |   |   |   | 2,755,003 |   |   |   | 4.79 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|      Installment                                                                                           |   |    | 770,169     |   |     |   | 60,572     |    |   |   | 7.86 | % |   |   | 1,204,297 |   |   |   | 96,375 |   |   |   | 8.00 | % |   |   | 1,542,082 |   |   |   | 129,483 |   |   |   | 8.40 | % |
|           All Other Loans                                                                                       |   |    | 32,843,891  |   |     |   | 2,275,030  |    |   |   | 6.93 | % |   |   | 26,660,793 |   |   |   | 2,405,176 |   |   |   | 9.02 | % |   |   | 21,083,348 |   |   |   | 2,635,877 |   |   |   | 12.50 | % |
|     Total      (1)                                                                                              |   |    | 403,573,110 |   |     |   | 24,390,271 |    |   |   | 6.04 | % |   |   | 354,105,252 |   |   |   | 24,288,658 |   |   |   | 6.86 | % |   |   | 292,371,351 |   |   |   | 25,113,487 |   |   |   | 8.59 | % |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Interest-Earning Assets                                                                                                  |   |    | 592,321,330 |   |     |   | 30,369,709 |    |   |   | 5.13 | % |   |   | 457,854,853 |   |   |   | 29,389,257 |   |   |   | 6.42 | % |   |   | 397,869,829 |   |   |   | 30,788,978 |   |   |   | 7.74 | % |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                                                                                                      |   |    | (4,155,438  | )      |     |   |       |    |   |   |   |   |   |   | (3,612,156 | ) |   |   |   |   |   |   |   |   |   |   | (3,270,810 | ) |   |   |   |   |   |   |   |   |
| Cash      and Due From Banks                                                                                                        |   |    | 18,414,336  |   |     |   |       |    |   |   |   |   |   |   | 12,446,849 |   |   |   |   |   |   |   |   |   |   |   | 10,254,911 |   |   |   |   |   |   |   |   |   |
| Other      Assets                                                                                                                   |   |    | 21,030,355  |   |     |   |       |    |   |   |   |   |   |   | 22,180,579 |   |   |   |   |   |   |   |   |   |   |   | 17,648,099 |   |   |   |   |   |   |   |   |   |
| Total      Assets                                                                                                                   |   | $       | 627,610,583 |   |     |   |       |    |   |   |   |   |   | $ | 488,870,125 |   |   |   |   |   |   |   |   |   |   | $ | 422,502,029 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Shareholders' Equity:                                                                                          |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities:                                                                                                  |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Money      Market and NOW Accounts                                                                          |   | $       | 105,526,965 |   |     | $      | 1,987,269  |    |   |   | 1.88 | % |   | $ | 89,274,785 |   |   | $ | 2,164,369 |   |   |   | 2.42 | % |   | $ | 83,597,940 |   |   | $ | 1,737,487 |   |   |   | 2.08 | % |
|     Savings      Accounts                                                                                       |   |    | 154,261,417 |   |     |   | 2,907,443  |    |   |   | 1.88 | % |   |   | 79,864,816 |   |   |   | 1,990,479 |   |   |   | 2.49 | % |   |   | 64,408,442 |   |   |   | 2,017,580 |   |   |   | 3.13 | % |
|     Certificates      of Deposit under $100,000                                                                 |   |    | 84,121,374  |   |     |   | 2,454,236  |    |   |   | 2.92 | % |   |   | 76,921,495 |   |   |   | 3,096,986 |   |   |   | 4.03 | % |   |   | 67,236,813 |   |   |   | 3,170,322 |   |   |   | 4.72 | % |
|     Certificates      of Deposit of         $100,000      and Over |   |    | 93,913,185  |   |     |   | 2,480,084  |    |   |   | 2.64 | % |   |   | 70,297,311 |   |   |   | 2,855,024 |   |   |   | 4.06 | % |   |   | 54,252,087 |   |   |   | 2,711,467 |   |   |   | 5.00 | % |
|     Other      Borrowed Funds                                                                                   |   |    | 29,526,575  |   |     |   | 1,353,489  |    |   |   | 4.58 | % |   |   | 37,111,612 |   |   |   | 1,556,238 |   |   |   | 4.19 | % |   |   | 29,580,685 |   |   |   | 1,514,907 |   |   |   | 5.12 | % |
|     Trust      Preferred Securities                                                                             |   |    | 18,557,000  |   |     |   | 1,072,827  |    |   |   | 5.78 | % |   |   | 18,557,000 |   |   |   | 1,069,351 |   |   |   | 5.76 | % |   |   | 19,534,247 |   |   |   | 1,438,876 |   |   |   | 7.37 | % |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Interest-Bearing Liabilities                                                                                             |   |    | 485,906,516 |   |     |   | 12,255,348 |    |   |   | 2.52 | % |   |   | 372,027,019 |   |   |   | 12,732,447 |   |   |   | 3.42 | % |   |   | 318,610,214 |   |   |   | 12,590,639 |   |   |   | 3.95 | % |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Interest Spread (2)                                                                                                        |   |    |        |   |     |   |       |    |   |   | 2.61 | % |   |   |   |   |   |   |   |   |   |   | 3.00 | % |   |   |   |   |   |   |   |   |   |   | 3.79 | % |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      Bearing   Demand      Deposits                                                                     |   |    | 78,588,727  |   |     |   |       |    |   |   |   |   |   |   | 69,907,048 |   |   |   |   |   |   |   |   |   |   |   | 60,892,433 |   |   |   |   |   |   |   |   |   |
| Other      Liabilities                                                                                                              |   |    | 6,480,126   |   |     |   |       |    |   |   |   |   |   |   | 4,608,108 |   |   |   |   |   |   |   |   |   |   |   | 4,989,809 |   |   |   |   |   |   |   |   |   |
| Total      Liabilities                                                                                                              |   |    | 570,975,369 |   |     |   |       |    |   |   |   |   |   |   | 446,542,175 |   |   |   |   |   |   |   |   |   |   |   | 384,492,456 |   |   |   |   |   |   |   |   |   |
| Shareholders'      Equity                                                                                                           |   |    | 56,635,214  |   |     |   |       |    |   |   |   |   |   |   | 42,327,950 |   |   |   |   |   |   |   |   |   |   |   | 38,009,573 |   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Shareholders' Equity                                                                                     |   | $       | 627,610,583 |   |     |   |       |    |   |   |   |   |   | $ | 488,870,125 |   |   |   |   |   |   |   |   |   |   | $ | 422,502,029 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |    |        |   |     |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                Net      Interest Margin (3)              |   |    |        |   |     | $      | 18,114,361 |    |   |   | 3.06 | % |   |   |   |   |   | $ | 16,656,810 |   |   |   | 3.64 | % |   |   |   |   |   | $ | 18,198,339 |   |   |   | 4.57 | % |

----

Table of Contents

| (1) | Loan      origination fees are considered an adjustment to interest      income.  For the purpose of calculating loan yields, average      loan balances include nonaccrual loans with no related interest income.      Please refer to Item 7. Management’s Discussion and Analysis of Financial      Condition and Results of Operation under the heading “Non-Performing      Assets” for a discussion of the Bank’s policy with regard to non-accrual      loans. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      interest rate spread is the difference between the average yield on      interest earning assets and the average rate paid on interest bearing      liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      net interest margin is equal to net interest income divided by average      interest earning assets. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (4) | Tax      equivalent basis. |
|-----|----------------------------|

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Table of Contents

|   Rate/Volume      Table                                                                |   | Amount      of Increase (Decrease)                |       |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                                                              |   | Year      Ended December 31,2009      versus 2008 |       |   | Year      Ended December 31,2008      versus 2007 |   |
|                                                                                              |   | Due      to Change in:                            |       |   | Due      to Change in: |   |
| (Tax-equivalent      basis)                                                                       |   | Volume                                            |       |   | Rate |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
|                                                                                              |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Income:                                                                             |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Loans:                                                                    |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Construction                                      |   | $                                                 | (1,693,382 | ) |   | $ | (945,121 | ) |   | $ | (2,638,503 | ) |   | $ | (1,094,267 | ) |   | $ | (2,302,233 | ) |   | $ | (3,396,500 | ) |
|         Residential      Real Estate                      |   |                                              | 28,874     |   |   |   | (6,138 | ) |   |   | 22,736 |   |   |   | 94,238 |   |   |   | (99,438 | ) |   |   | (5,200 | ) |
|         Home      Equity                                  |   |                                              | (47,116    | ) |   |   | (69,469 | ) |   |   | (116,586 | ) |   |   | 95,054 |   |   |   | (172,050 | ) |   |   | (76,996 | ) |
|         Commercial      and Commercial Real Estate        |   |                                              | 870,410    |   |   |   | (421,403 | )  |   |   | 449,007 |   |   |   | 748,916 |   |   |   | (586,243 | )  |   |   | 162,673 |   |
|         Mortgage      Warehouse Lines                     |   |                                              | 2,695,979  |   |   |   | (145,072 | ) |   |   | 2,550,908 |   |   |   | 2,755,003 |   |   |   | 0 |   |   |   | 2,755,003 |   |
|         Installment                                       |   |                                              | (34,424    | ) |   |   | (1,379 | ) |   |   | (35,803 | ) |   |   | (26,940 | ) |   |   | (6,168 | ) |   |   | (33,108 | ) |
|         All      Other Loans                              |   |                                              | 492,389    |   |   |   | (622,537 | ) |   |   | (130,147 | ) |   |   | 600,091 |   |   |   | (830,792 | ) |   |   | (230,701 | ) |
| Total      Loans                                                                                  |   |                                              | 2,312,730  |   |   |   | (2,221,118 | ) |   |   | 101,612 |   |   |   | 3,172,095 |   |   |   | (3,996,924 | ) |   |   | (824,829 | ) |
|     Investment      Securities :                                              |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Taxable                                           |   |                                              | 2,257,248  |   |   |   | (1,273,048 | ) |   |   | 984,200 |   |   |   | 188,735 |   |   |   | (308,100 | ) |   |   | (119,365 | ) |
|         Tax-exempt                                        |   |                                              | (114,354   | ) |   |   | 5,350 |   |   |   | (109,004 | ) |   |   | (483,349 | ) |   |   | 16,566 |   |   |   | (466,783 | ) |
| Total      Investment Securities                                                                  |   |                                              | 2,142,894  |   |   |   | (1,267,697 | ) |   |   | 875,196 |   |   |   | (294,614 | ) |   |   | (291,534 | ) |   |   | (586,148 | ) |
|     Federal      Funds Sold / Short-Term Investments                          |   |                                              | 180,375    |   |   |   | (176,732 | ) |   |   | 3.643 |   |   |   | 128,512 |   |   |   | (117,256 | ) |   |   | 11,256 |   |
| Total      Interest Income                                                                        |   |                                              | 4,635,999  |   |   |   | (3,655,548 | ) |   |   | 980,451 |   |   |   | 3,005,993 |   |   |   | (4,405,714 | ) |   |   | (1,399,721 | ) |
|                                                                                              |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense :                                                                           |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Money      Market and NOW Accounts                |   |  $                                           | 349,145    |   |   |  $ | (526,243 | ) |   | $ | (177,098 | ) |   |  $ | 130,364 |   |   | $ | 296,518 |   |   | $ | 426,880 |   |
|         Savings      Accounts                             |   |                                              | 1,628,306  |   |   |   | (711,343 | ) |   |   | 916,963 |   |   |   | 434,450 |   |   |   | (461,551 | ) |   |   | (27,101 | ) |
|         Certificates      of Deposit under $100,000       |   |                                              | 250,617    |   |   |   | (893,368 | ) |   |   | (642,751 | ) |   |   | 423,858 |   |   |   | (497,194 | ) |   |   | (73,336 | ) |
|         Certificates      of Deposit of $100,000 and Over |   |                                              | 791,043    |   |   |   | (1,165,984 | ) |   |   | (374,941 | )  |   |   | 727,894 |   |   |   | (584,337 | ) |   |   | 143,557 |   |
|         Other      Borrowed Funds                         |   |                                              | (332,648   | ) |   |   | 129,899 |   |   |   | (202,749 | ) |   |   | 351,007 |   |   |   | (309,676 | ) |   |   | 41,331 |   |
|         Trust      Preferred Securities                   |   |                                              | 0          |   |   |   | 3,476 |   |   |   | 3,476 |   |   |   | (84,797 | ) |   |   | (284,728 | ) |   |   | (369,525 | ) |
| Total      Interest Expense                                                                       |   |                                              | 2,686,463  |   |   |   | (3,163,563 | ) |   |   | (477,100 | )  |   |   | 1,982,776 |   |   |   | (1,840,968 | ) |   |   | 141,808 |   |
|                                                                                              |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Interest Income                                                                          |   | $                                                 | 1,949,536  |   |   | $ | (491,985 | ) |   |  $ | 1,457,551 |   |   | $ | 1,023,217 |   |   | $ | (2,564,746 | ) |   | $ | (1,541,529 | ) |
|                                                                                              |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

----

Table of Contents

|                                              |   |
|---------------------------------------------------|--------|
| Non-interest      Expenses                        |   |   |   |   |   |   |
|                                              |   | 2009 |   |   | 2008 |   |
| Salaries      and employee benefits               |   | $ | 9,352,360 |   |   | $ | 8,426,729 |   |
| Occupancy      expense                            |   |   | 1,783,031 |   |   |   | 1,802,723 |   |
| Data      processing services                     |   |   | 1,085,257 |   |   |   | 896,724 |   |
| Equipment      expense                            |   |   | 631,677 |   |   |   | 626,467 |   |
| Marketing                                         |   |   | 130,393 |   |   |   | 246,879 |   |
| Regulatory,      professional and consulting fees |   |   | 1,006,830 |   |   |   | 861,006 |   |
| Office      expense                               |   |   | 572,477 |   |   |   | 649,461 |   |
| FDIC      deposit insurance                       |   |   | 1,193,309 |   |   |   | 196,072 |   |
| Directors’      fees                        |   |   | 105,700 |   |   |   | 108,000 |   |
| Other      real estate owned expenses             |   |   | 123,795 |   |   |   | 120,688 |   |
| Other      expenses                               |   |   | 1,130,972 |   |   |   | 1,094,192 |   |
| Total                                             |   | $ | 17,115,801 |   |   | $ | 15,028,941 |   |
|                                              |   |   |   |   |   |   |   |   |

----

----

Table of Contents

|                                                                                                 |   |      |        |   | Gross      |   |      | Gross      |   |   |       |   |
|------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                                                 |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair       |   |
| 2009                                                                                                 |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value      |   |
|                                                                                                 |   |      |        |   |       |   |      |       |   |   |       |   |
| Available      for sale-                                                                             |   |      |        |   |       |   |      |       |   |   |
| U.      S. Treasury securities and                                                                   |   |      |        |   |       |   |      |       |   |   |       |   |
| obligations      of U.S. Government                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |
| sponsored      corporations and agencies                                                             |   | $         | 138,351,028 |   |       | $      | 291,906   |       |   | $      | (673,252   | )      |   | $ | 137,969,682 |   |
|         Residential      collateralized mortgage obligations |   |      | 34,749,123  |   |       |   | 172,698   |       |   |   | (252,023   | )      |   |   | 34,669,798 |   |
| Residential      mortgage backed securities                                                          |   |      | 24,182,584  |   |       |   | 1,449,071 |       |   |   | 0          |   |   |   | 25,631,655 |   |
| Obligations      of State and                                                                        |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Political      subdivisions                                                                          |   |      | 2,633,210   |   |       |   | 45,644    |       |   |   | (91,212    | )      |   |   | 2,587,642 |   |
|         Trust      preferred debt securities                 |   |      | 2,457,262   |   |       |   | 0         |       |   |   | (687,089   | )      |   |   | 1,770,173 |   |
|         Restricted      Stock                                |   |      | 1,464,900   |   |       |   | 0         |       |   |   | 0          |   |   |   | 1,464,900 |   |
|         Mutual      Fund                                     |   |      | 25,000      |   |       |   | 0         |       |   |   | 0          |   |   |   | 25,000 |   |
|                                                                                                 |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                 |   | $         | 203,863,107 |   |       | $      | 1,959,319 |       |   | $      | (1,703,576 | )      |   | $ | 204,118,850 |   |
|                                                                                                 |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Held      to maturity-                                                                               |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|         Residential      collateralized mortgage obligations |   | $         | 4,881,475   |   |       | $      | 150,055   |       |   | $      | 0          |   |   | $ | 5,031,530 |   |
| Residential      mortgage backed securities                                                          |   |      | 6,111,131   |   |       |   | 97,782    |       |   |   | (29,521    | )      |   |   | 6,179,392 |   |
| Obligations      of State and                                                                        |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Political      subdivisions                                                                          |   |      | 8,600,596   |   |       |   | 270,947   |       |   |   | 0          |   |   |   | 8,871,543 |   |
| Trust      preferred debt securities                                                                 |   |      | 133,054     |   |       |   | 0         |       |   |   | 0          |   |   |   | 133,054 |   |
| Corporate      debt securities                                                                       |   |      | 3,882,724   |   |       |   | 117,287   |       |   |   | 0          |   |   |   | 4,000,011 |   |
|                                                                                                 |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                 |   | $         | 23,608,980  |   |       | $      | 636,071   |       |   | $      | (29,521    | )      |   | $ | 24,215,530 |   |

|                                                                                                                                                                           |   |      |            |   | Gross      |   |         | Gross      |   |   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------------|--------|------------|--------|--------------|------------|--------|--------|------------|--------|
|                                                                                                                                                                           |   | Amortized |            |   | Unrealized |   |         | Unrealized |   |   | Fair       |   |
| 2008                                                                                                                                                                           |   | Cost      |            |   | Gains      |   |         | Losses     |   |   | Value      |   |
|                                                                                                                                                                           |   |      |            |   |       |   |         |       |   |   |       |   |
| Available      for sale-                                                                                                                                                       |   |      |            |   |       |   |         |       |   |   |       |   |
| U.      S. Treasury securities and                                                                                                                                             |   |      |            |   |       |   |         |       |   |   |       |   |
| obligations      of U.S. Government                                                                                                                                            |   |      |            |   |       |   |         |       |   |   |       |   |
| sponsored      corporations and agencies                                                                                                                                       |   | $         | 22,802,334      |   |       | $      | 415,626      |       |   | $      | 0          |   |   | $ | 23,217,960 |   |
|         Residential      collateralized mortgage obligations                                                                           |   |      | 7,014,272       |   |       |   | 16,792       |       |   |   | (253,432   | )      |   |   | 6,777,632 |   |
| Residential      mortgage backed securities                                                                                                                                    |   |      | 54,727,033      |   |       |   | 1,930,299    |       |   |   | (594       | )      |   |   | 56,656,738 |   |
| Obligations      of State and                                                                                                                                                  |   |      |            |   |       |   |         |       |   |   |       |   |   |   |   |   |
| Political      subdivisions                                                                                                                                                    |   |      | 2,868,049       |   |       |   | 6,872        |       |   |   | (16,234    | )      |   |   | 2,858,687 |   |
|         Trust      preferred debt securities                                                                                           |   |      | 2,454,969       |   |       |   | 0            |       |   |   | (1,173,163 | )      |   |   | 1,281,806 |   |
|         Restricted      stock                                                                                                          |   |      | 2,659,200       |   |       |   | 0            |       |   |   | 0          |   |   |   | 2,659,200 |   |
| Mutual      fund                                                                                                                                                               |   |      | 25,000          |   |       |   | 0            |       |   |   | 0          |   |   |   | 25,000 |   |
|                                                                                                                                                                           |   |      |            |   |       |   |         |       |   |   |       |   |   |   |   |   |
|                                                                                                                                                                           |   | $         | 92,550,857      |   |       | $      | 2,369,589    |       |   | $      | (1,443,423 | )      |   | $ | 93,477,023 |   |
|                                                                                                                                                                           |   |      |            |   |       |   |         |       |   |   |       |   |   |   |   |   |
| Held      to maturity-                                                                                                                                                         |   |      |            |   |       |   |         |       |   |   |       |   |   |   |   |   |
| U.S.      Treasury securities and obligations of     U.S.      Government sponsored corporations      and      agencies |   | $         | 10,000,000      |   |       | $      | 193,800      |       |   | $      | 0          |   |   | $ | 10,193,800 |   |
| Residential      collateralized mortgage obligations                                                                                                                           |   |      | 8,727,315       |   |       |   | 49,897       |       |   |   | (9,675     | )      |   |   | 8,767,537 |   |
| Residential      mortgage backed securities                                                                                                                                    |   |      |  3,794,931 |   |       |   |  33,007 |       |   |   | (212       | )      |   |   |  3,827,726 |   |
| Obligations      of State and                                                                                                                                                  |   |      |            |   |       |   |         |       |   |   |       |   |   |   |   |   |
| Political      subdivisions                                                                                                                                                    |   |      | 10,516,726      |   |       |   | 75,515       |       |   |   | (93,502    | )      |   |   | 10,498,739 |   |
| Trust      preferred debt securities                                                                                                                                           |   |      | 982,160         |   |       |   | 0            |       |   |   | (635,172   | )      |   |   | 346,988 |   |
| Corporate      debt securities                                                                                                                                                 |   |      | 2,529,445       |   |       |   | 0            |       |   |   | (23,856    | )      |   |   | 2,505,589 |   |
|                                                                                                                                                                           |   | $         | 36,550,577      |   |       | $      | 352,219      |       |   | $      | (762,417   | )      |   | $ | 36,140,379 |   |

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Table of Contents

|                                                                                                 |   |      |       |   | Gross      |   |    | Gross      |   |   |     |    |
|------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|------------|--------|---------|------------|--------|--------|----------|---------|
|                                                                                                 |   | Amortized |       |   | Unrealized |   |    | Unrealized |   |   | Fair     |    |
| 2007                                                                                                 |   | Cost      |       |   | Gains      |   |    | Losses     |   |   | Value    |    |
|                                                                                                 |   |      |       |   |       |   |    |       |   |   |     |    |
| Available      for sale-                                                                             |   |      |       |   |       |   |    |       |   |   |
| U.      S. Treasury securities and                                                                   |   |      |       |   |       |   |    |       |   |   |     |    |
| obligations      of U.S. Government                                                                  |   |      |       |   |       |   |    |       |   |   |     |    |
| sponsored      corporations and agencies                                                             |   | $         | 21,455,563 |   |       | $      | 315,075 |       |   | $      | (14,043  | )       |   | $ | 21,756,595 |   |
|         Residential      collateralized mortgage obligations |   |      | 8,106,154  |   |       |   | 2,170   |       |   |   | (407,560 | )       |   |   | 7,700,764 |   |
| Residential      mortgage backed securities                                                          |   |      | 37,769,517 |   |       |   | 457,725 |       |   |   | (57,365  | )       |   |   | 38,169,877 |   |
| Obligations      of State and                                                                        |   |      |       |   |       |   |    |       |   |   |     |    |   |   |   |   |
| Political      subdivisions                                                                          |   |      | 3,446,517  |   |       |   | 14,778  |       |   |   | (7,713   | )       |   |   | 3,453,582 |   |
|         Trust      preferred debt securities                 |   |      | 2,451,122  |   |       |   | 0       |       |   |   | (272,504 | )       |   |   | 2,178,618 |   |
|         Restricted      stock                                |   |      | 1,907,701  |   |       |   | 0       |       |   |   | 0        |    |   |   | 1,907,701 |   |
| Mutual      fund                                                                                     |   |      | 25,000     |   |       |   | 0       |       |   |   | 0        |    |   |   | 25,000 |   |
|                                                                                                 |   |      |       |   |       |   |    |       |   |   |     |    |   |   |   |   |
|                                                                                                 |   | $         | 75,161,574 |   |       | $      | 789,748 |       |   | $      | (759,185 | )       |   | $ | 75,192,137 |   |
|                                                                                                 |   |      |       |   |       |   |    |       |   |   |     |    |   |   |   |   |
| Held      to maturity-                                                                               |   |      |       |   |       |   |    |       |   |   |     |    |   |   |   |   |
| Residential      mortgage backed securities                                                          |   | $         | 4,502,574  |   |       | $      | 2,132   |       |   | $      | (121,197 | )       |   | $ | 4,383,509 |   |
| Obligations      of State and                                                                        |   |      |       |   |       |   |    |       |   |   |     |    |   |   |   |   |
| Political      subdivisions                                                                          |   |      | 18,013,721 |   |       |   | 142,232 |       |   |   | (4,718   | )       |   |   | 18,151,235 |   |
| Trust      preferred debt securities                                                                 |   |      | 996,051    |   |       |   | 0       |       |   |   | (119,526 | )       |   |   | 876,525 |   |
|                                                                                                 |   | $         | 23,512,346 |   |       | $      | 144,364 |       |   | $      | (245,441 | )  |   | $ | 23,411,269 |   |

|                                                          |   | AmortizedCost |        |   | FairValue |   |        | WeightedAverageYield* |   |
|---------------------------------------------------------------|--------|---------------|-------------|--------|-----------|--------|-------------|-----------------------|--------|
| Available      for sale-                                      |   |          |        |   |      |   |        |                  |   |
|    Due      in one year or less                |   | $             | 8,402,324   |   |      | $      | 8,446,700   |                  |   |   | 2.15 | % |
|    Due      after one year through five years  |   |          | 91,063,870  |   |      |   | 91,249,993  |                  |   |   | 1.74 | % |
|    Due      after five years through ten years |   |          | 30,143,402  |   |      |   | 30,412,489  |                  |   |   | 3.36 | % |
|    Due      after ten years                    |   |          | 74,253,511  |   |      |   | 74,009,668  |                  |   |   | 3.74 | % |
|                                                          |   |          |        |   |      |   |        |                  |   |   |   |   |
| Total                                                         |   | $             | 203,863,107 |   |      | $      | 204,118,850 |                  |   |   | 2.73 | % |
|                                                          |   |          |        |   |      |   |        |                  |   |   |   |   |
| Held      to maturity-                                        |   |          |        |   |      |   |        |                  |   |   |   |   |
|    Due      in one year or less                |   | $             | 3,874,956   |   |      | $      | 3,952,332   |                  |   |   | 4.68 | % |
|    Due      after one year through five years  |   |          | 3,107,832   |   |      |   | 3,227,191   |                  |   |   | 5.21 | % |
|    Due      after five years through ten years |   |          | 5,300,104   |   |      |   | 5,472,483   |                  |   |   | 5.58 | % |
|    Due      after ten years                    |   |          | 11,326,088  |   |      |   | 11,563,524  |                  |   |   | 4.85 | % |
|                                                          |   |          |        |   |      |   |        |                  |   |   |   |   |
| Total                                                         |   | $             | 23,608,980  |   |      | $      | 24,215,530  |                  |   |   | 4.91 | % |

----

Table of Contents

| Pooled      Trust Preferred Security Detail |
|---------------------------------------------|
|    Security                  |    Class |   BookValue |   FairValue |  UnrealizedGain (Loss) | Percent      ofUnderlyingCollateralPerforming | Percent      ofUnderlyingCollateralIn      Deferral | Percent      ofUnderlying      CollateralIn      Default | Moody’s/S      & P /FITCHRatings |
| PreTSL      XXV                             | B-1 | $133,054 | $133,054 | - | 69.0% | 18.4% | 12.6% | Ca/NR/CC |

----

Table of Contents

|                                                |   | December      31, |
|-----------------------------------------------------|--------|-------------------|
|                                                |   | 2009              | 2008 |   | 2007 |   | 2006 |   | 2005 |
|                                                |   | Amount            |   |   | % | Amount |   |   | % |   | Amount |   |   | % |   | Amount |   |   | % |   | Amount |   |   | % |
| Construction      loans                             |   | $                 | 79,805,278 |   |   |   | 21 | % |   | $ | 94,163,997 |   |   |   | 25 | % |   | $ | 132,735,920 |   |   |   | 45 | % |   | $ | 125,268,871 |   |   |   | 47 | % |   | $ | 109,862,614 |   |   |   | 46 | % |
| Residential      real estate   loans |   |              | 10,253,895 |   |   |   | 3 | % |   |   | 11,078,402 |   |   |   | 3 | % |   |   | 10,088,515 |   |   |   | 3 | % |   |   | 7,670,370 |   |   |   | 3 | % |   |   | 8,602,975 |   |   |   | 4 | % |
| Commercial      business                            |   |              | 57,925,392 |   |   |   | 15 | % |   |   | 57,528,879 |   |   |   | 15 | % |   |   | 57,232,295 |   |   |   | 19 | % |   |   | 48,112,857 |   |   |   | 18 | % |   |   | 47,869,396 |   |   |   | 19 | % |
| Commercial      real estate                         |   |              | 96,306,097 |   |   |   | 25 | % |   |   | 90,904,418 |   |   |   | 24 | % |   |   | 77,896,347 |   |   |   | 27 | % |   |   | 66,784,183 |   |   |   | 26 | % |   |   | 56,578,800 |   |   |   | 24 | % |
| Mortgage      warehouse lines                       |   |              | 119,382,078 |   |   |   | 32 | % |   |   | 106,000,231 |   |   |   | 28 | % |   |   | - |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |
| Loans      to individuals                           |   |              | 15,554,027 |   |   |   | 4 | % |   |   | 16,797,194 |   |   |   | 5 | % |   |   | 16,324,817 |   |   |   | 6 | % |   |   | 16,728,025 |   |   |   | 6 | % |   |   | 16,441,994 |   |   |   | 7 | % |
| Lease      financing                                |   |              | 0 |   |   |   | 0 | % |   |   | 0 |   |   |   | 0 | % |   |   | 0 |   |   |   | 0 | % |   |   | 0 |   |   |   | 0 | % |   |   | 21,073 |   |   |   | 0 | % |
| Deferred      loan fees                             |   |              | 489,809 |   |   |   | 0 | % |   |   | 647,673 |   |   |   | 0 | % |   |   | 302,818 |   |   |   | 0 | % |   |   | 404,074 |   |   |   | 0 | % |   |   | 466,678 |   |   |   | 0 | % |
| All      other loans                                |   |              | 229,159 |   |   |   | 0 | % |   |   | 227,622 |   |   |   | 0 | % |   |   | 180,006 |   |   |   | 0 | % |   |   | 173,933 |   |   |   | 0 | % |   |   | 170,819 |   |   |   | 0 | % |
|                                                |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                               |   | $                 | 379,945,735 |   |   |   | 100 | % |   | $ | 377,348,416 |   |   |   | 100 | % |   | $ | 294,760,718 |   |   |   | 100 | % |   | $ | 265,142,313 |   |   |   | 100 | % |   | $ | 240,014,349 |   |   |   | 100 | % |
|                                                |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|                                         |   | Maturity      Range |        |   |                                    |   |
|----------------------------------------------|--------|---------------------|-------------|--------|-----------------------------------------|--------|
|  Type                                   |   | WithinOneYear       |        |   | After      One ButWithinFive      Years |   |   | AfterFiveYears |   |   | Total |   |
| Commercial      & commercial real estate |   | $                   | 35,661,773  |   |                                    | $      | 36,961,743 |   |   | $ | 81,607,973 |   |   | $ | 154,231,489 |   |
| Construction                                 |   |                | 72,979,941  |   |                                    |   | 5,899,341 |   |   |   | 925,996 |   |   |   | 79,805,278 |   |
| Total                                        |   | $                   | 108,641,714 |   |                                    | $      | 42,861,084 |   |   | $ | 82,553,969 |   |   | $ | 234,036,767 |   |
|                                         |   |                |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Fixed      rate loans                        |   | $                   | 4,761,909   |   |                                    | $      | 18,580,941 |   |   | $ | 13,783,655 |   |   | $ | 37,126,505 |   |
| Floating      rate loans                     |   |                | 103,879,805 |   |                                    |   | 24,280,143 |   |   |   | 68,750,314 |   |   |   | 196,910,262 |   |
|  Total                                  |   | $                   | 108,641,714 |   |                                    | $      | 42,861,084 |   |   | $ | 82,553,969 |   |   | $ | 234,036,767 |   |

----

Table of Contents

|                                                                                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Non-Performing      Assets and Loans                                                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
|                                                                                                                   |   | 2009   |      |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |      |
| Non-Performing      loans:                                                                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
|    Loans      90 days or more past due and       still      accruing |   | $      | 145,898   |   |   | $      | 0         |   |   | $      | 0         |   |   | $      | 0         |   |   | $ | 209 |   |
|    Non-accrual      loans                                                                               |   |   | 4,161,628 |   |   |   | 3,351,777 |   |   |   | 2,036,858 |   |   |   | 4,193,209 |   |   |   | 833,150 |   |
|    Total      non-performing loans                                                                      |   |   | 4,307,526 |   |   |   | 3,351,777 |   |   |   | 2,036,858 |   |   |   | 4,193,209 |   |   |   | 833,359 |   |
| Other      real estate owned:                                                                                          |   |   | 1,362,621 |   |   |   | 4,296,536 |   |   |   | 2,960,727 |   |   |   | 0         |   |   |   | 0 |   |
|    Total      non-performing assets                                                                     |   | $      | 5,670,147 |   |   | $      | 7,648,313 |   |   | $      | 4,997,585 |   |   | $      | 4,193,209 |   |   | $ | 833,359 |   |
|                                                                                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Non-performing      loans to total loans                                                                               |   |   | 1.13      | %      |   |   | 0.89      | %      |   |   | 0.67      | %      |   |   | 1.50      | % |   |   | 0.32 | % |
| Non-performing      assets to total assets                                                                             |   |   | 0.84      | %      |   |   | 1.40      | %      |   |   | 1.16      | %      |   |   | 1.07      | % |   |   | 0.22 | % |
|                                                                                                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |

|   | · | General      economic conditions. |
|--------|--------|-----------------------------------|

|   | · | Trends      in charge-offs. |
|--------|--------|-----------------------------|

|   | · | Trends      and levels of delinquent loans. |
|--------|--------|---------------------------------------------|

----

Table of Contents

|   | · | Trends      and levels of non-performing loans, including loans over 90 days      delinquent. |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | Trends      in volume and terms of loans. |
|--------|--------|-------------------------------------------|

|   | · | Levels      of allowance for specific classifiedloans. |
|--------|--------|--------------------------------------------------------|

|   | · | Credit      concentrations. |
|--------|--------|-----------------------------|

----

Table of Contents

| Allowance      for Loan Losses                                                                                                                                                                              |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|---------|--------|--------|-------------|--------|--------|--------|-------------|
|                                                                                                                                                                                                        |   | 2009   |        |   | 2008   |   |        | 2007    |   |   | 2006        |   |   | 2005   |        |
| Balance,      beginning of year                                                                                                                                                                             |   | $      | 3,684,764   |   |   | $      | 3,348,080   |    |   | $      | 3,228,360   |   |   | $      | 2,361,375   |   |   | $ | 2,005,169 |   |
|                                                                                                                                                                                                        |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
| Provision      charged to operating expenses                                                                                                                                                                |   |   | 2,553,000   |   |   |   | 640,000     |    |   |   | 130,000     |   |   |   | 893,500     |   |   |   | 405,000 |   |
|                                                                                                                                                                                                        |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
| Loans      charged off:                                                                                                                                                                                     |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
|    Construction      loans                                                                                                                                                                   |   |   | (1,226,754  | )      |   |   | (53,946     | )  |   |   | -      |   |   |   | -           |   |   |   | - |   |
|    Residential      real estate loans                                                                                                                                                        |   |   | -           |   |   |   | (31,865     | )       |   |   | -      |   |   |   | -           |   |   |   | - |   |
|    Commercial      and commercial real       estate      loans                                                                                            |   |   | (511,791    | )      |   |   | (220,565    | )       |   |   | (88,891     | )      |   |   | (11,154     | ) |   |   | (39,150 | ) |
|    Loans      to individuals                                                                                                                                                                 |   |   | (1,973      | )      |   |   | -           |    |   |   | (1,614      | )      |   |   | (18,314     | ) |   |   | (13,653 | ) |
|    Lease      financing                                                                                                                                                                      |   |   | -           |   |   |   | -           |    |   |   | (478        |   |   |   | -           |   |   |   | - |   |
|    All      other loans                                                                                                                                                                      |   |   | -           |   |   |   | -           |    |   |   | -           |   |   |   | -           |   |   |   | - |   |
|                                                                                                                                                                                                        |   |   | (1,740,518  | )      |   |   | (306,376    | )       |   |   | (90,983     | )      |   |   | (29,468     | ) |   |   | (52,803 | ) |
| Recoveries:                                                                                                                                                                                                 |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
|    Construction      loans                                                                                                                                                                   |   |   | -           |   |   |   | -           |    |   |   | 75,000      |   |   |   | -           |   |   |   | - |   |
|    Residential      real estate loans                                                                                                                                                        |   |   | -           |   |   |   | -           |    |   |   | -           |   |   |   | -           |   |   |   | - |   |
|    Commercial      and commercial real       estate      loans                                                                                            |   |   | 2,575       |   |   |   | 3,060       |    |   |   | -           |   |   |   | 153         |   |   |   | 1,498 |   |
|    Loans      to individuals                                                                                                                                                                 |   |   | 5,566       |   |   |   | -           |    |   |   | 5,703       |   |   |   | 2,800       |   |   |   | 2,511 |   |
|    Lease      financing                                                                                                                                                                      |   |   | -           |   |   |   | -           |    |   |   | -           |   |   |   | -           |   |   |   | - |   |
|    All      other loans                                                                                                                                                                      |   |   | -           |   |   |   | -           |    |   |   | -           |   |   |   | -           |   |   |   | - |   |
|                                                                                                                                                                                                        |   |   | 8,141       |   |   |   | 3,060       |    |   |   | 80,703      |   |   |   | 2,953       |   |   |   | 4,009 |   |
| Net      (charge offs) / recoveries                                                                                                                                                                         |   |   | (1,732,377  | )      |   |   | (303,316    | )       |   |   | (10,280     | )      |   |   | (26,515     | ) |   |   | (48,794 | ) |
|                                                                                                                                                                                                        |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
| Balance,      end of year                                                                                                                                                                                   |   | $      | 4,505,387   |   |   | $      | 3,684,764   |    |   | $      | 3,348,080   |   |   | $      | 3,228,360   |   |   | $ | 2,361,375 |   |
|                                                                                                                                                                                                        |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
| Loans      (excluding held for sale loans):                                                                                                                                                                 |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
|    At      year end                                                                                                                                                                          |   | $      | 379,945,735 |   |   | $      | 377,348,416 |    |   | $      | 294,760,718 |   |   | $      | 265,142,313 |   |   | $ | 240,014,349 |   |
|    Average      during the year                                                                                                                                                              |   |   | 384,314,052 |   |   |   | 340,666,744 |    |   |   | 281,176,955 |   |   |   | 259,397,578 |   |   |   | 220,475,472 |   |
|    Net      (charge offs) recoveries to      average                   loans      outstanding |   |   | (0.45       | %)     |   |   | (0.09       | %)      |   |   | 0.00        | %      |   |   | (0.01       | %) |   |   | (0.02 | %) |
| Allowance      for loan losses to:                                                                                                                                                                          |   |   |        |   |   |   |        |    |   |   |        |   |   |   |        |   |   |   |   |   |
|    Total      loans at year end                                                                                                                                                              |   |   | 1.19        | %      |   |   | 0.98        | %       |   |   | 1.14        | %      |   |   | 1.22        | % |   |   | 0.98 | % |
|    Non-performing      loans                                                                                                                                                                 |   |   | 104.59      | %      |   |   | 109.93      | %       |   |   | 164.37      | %      |   |   | 76.99       | % |   |   | 283.36 | % |

----

Table of Contents

| Allocation of the Allowance for      Loan Losses                       |
|------------------------------------------------------------------------|
|                                                                   |
|                                                                   |   | December      31, 2009 |   | December      31, 2008 |   | December      31, 2007 |   | December      31, 2006 |   | December      31, 2005 |
|                                                                   |   | Amount |   |   | % ofloans      ineachcategoryto      totalloans |   | Amount |   |   | % ofloans      ineach      categoryto      totalloans |   | Amount |   |   | % ofloans      ineachcategoryto      totalloans |   | Amount |   |   | % ofloans      ineachcategoryto      totalloans |   | Amount |   |   | % ofloans      ineachcategoryto      totalloans |
| Balance      at end of period applicable to:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic:                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial      and commercialreal      estate loans |   | $ | 1,486,659 |   |   |   |   | 40 | % |   | $ | 1,477,550 |   |   |   | 39 | % |   | $ | 1,671,059 |   |   |   | 46 | % |   | $ | 1,131,266 |   |   |   | 44 | % |   | $ | 1,393,210 |   |   |   | 43 | % |
|    Construction      loans                              |   |   | 1,739,332 |   |   |   |   | 21 | % |   |   | 1,478,520 |   |   |   | 25 | % |   |   | 1,308,651 |   |   |   | 45 | % |   |   | 1,696,175 |   |   |   | 47 | % |   |   | 578,537 |   |   |   | 46 | % |
|     Mortgage      warehouse lines                  |   |   | 537,219 |   |   |   |   | 32 | % |   |   | 477,001 |   |   |   | 28 | % |   |   | - |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |
|    Residential      real estate loans              |   |   | 72,718 |   |   |   |   | 3 | % |   |   | 71,087 |   |   |   | 3 | % |   |   | 104,326 |   |   |   | 3 | % |   |   | 61,634 |   |   |   | 3 | % |   |   | 141,683 |   |   |   | 4 | % |
|    Loans      to individuals                            |   |   | 145,542 |   |   |   |   | 4 | % |   |   | 149,386 |   |   |   | 5 | % |   |   | 154,437 |   |   |   | 6 | % |   |   | 139,055 |   |   |   | 6 | % |   |   | 236,138 |   |   |   | 7 | % |
|    Lease      financing                                 |   |   | - |   |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |   |   | 4,723 |   |   |   | 0 | % |
|    Unallocated                                          |   |   | 523,917 |   |   |   |   |   |   |   |   | 31,220 |   |   |   |   |   |   | 109,607 |   |   |   |   |   |   | 200,230 |   |   |   |   |   |   | 7,084 |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   | $ | 4,505,387 |   |   |   |   | 100 | % |   | $ | 3,684,764 |   |   |   | 100 | % |   | $ | 3,348,080 |   |   |   | 100 | % |   | $ | 3,228,360 |   |   |   | 100 | % |   | $ | 2,361,375 |   |   |   | 100 | % |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|                                                                                     |   |
|------------------------------------------------------------------------------------------|--------|
|                                                                                     |   |
| Average      Deposit Balances                                                            |   |
|                                                                                     |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                     |   | AverageBalance |   |   | Percentageof      Total |   |   | AverageBalance |   |   | Percentage of      Total |   |   | AverageBalance |   |   | Percentageof      Total |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      bearing demand     deposits                   |   | $ | 78,588,727 |   |   |   | 15 | % |   | $ | 69,907,048 |   |   |   | 18 | % |   | $ | 60,892,433 |   |   |   | 18 | % |
| Interest      bearing demand deposits                                                    |   |   | 105,526,965 |   |   |   | 21 | % |   |   | 89,274,785 |   |   |   | 23 | % |   |   | 83,597,940 |   |   |   | 25 | % |
| Savings      deposits                                                                    |   |   | 154,261,417 |   |   |   | 30 | % |   |   | 79,864,816 |   |   |   | 21 | % |   |   | 64,408,442 |   |   |   | 19 | % |
| Certificates      of deposit of $100,000      or      more |   |   | 93,913,185 |   |   |   | 18 | % |   |   | 70,297,311 |   |   |   | 18 | % |   |   | 54,252,087 |   |   |   | 16 | % |
| Other      certificates of deposit                                                       |   |   | 84,121,374 |   |   |   | 16 | % |   |   | 76,921,495 |   |   |   | 20 | % |   |   | 67,236,813 |   |   |   | 20 | % |
|       Total                                                |   | $ | 516,411,668 |   |   |   | 100 | % |   | $ | 386,265,455 |   |   |   | 100 | % |   | $ | 330,387,715 |   |   |   | 100 | % |
|                                                                                     |   |

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|                                       |   | One      Yearor      Less |        |   | One      toThree      Years |   |   | Three      toFive      Years |   |   | Over      FiveYears |   |   | Total |   |
|--------------------------------------------|--------|---------------------------|-------------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|---------------------|--------|--------|-------|--------|
| Standby      letters of credit             |   | $                         | 3,387,018   |   |                        | $      | 0      |                         |   | $      | 0                   |   |   | $     | 0      |   |   | $ | 3,387,018 |   |
| Commitments      to extend credit          |   | $                         | 216,651,774 |   |                        | $      | 0      |                         |   | $      | 0                   |   |   | $     | 0      |   |   | $ | 216,651,774 |   |
| Commitments      to sell residential loans |   | $                         | 21,514,785  |   |                        | $      | 0      |                         |   | $      | 0                   |   |   | $     | 0      |   |   | $ | 21,514,785 |   |

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| Interest      Rate Sensitivity Analysis at December 31, 2009       |   |                             |    |   |                |   |    |                  |   |   |         |   |   |                     |    |   |                           |   |    |
|--------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------|--------|---------|-----------------------|--------|--------|--------------|--------|--------|--------------------------|---------|--------|--------------------------------|--------|---------|
|                                                               |   |                             |    |   |                |   |    |                  |   |   |         |   |   | TotalWithinOne      Year |    |   | One      YeartoFive      Years |   |    |   |   |   |   |   |   |   |   |
| ( $      in thousands )                                            |   | Interest      Sensitivity Period |    |   | OverFive      Years |   |    | Non-interestSensitive |   |   |         |   |
|                                                               |   | 30      Day                      |    |   | 90      Day         |   |    | 180      Day          |   |   | 365      Day |   |   | Total                    |    |
| Assets      :                                                      |   |                             |    |   |                |   |    |                  |   |   |         |   |   |                     |    |   |                           |   |    |   |   |   |   |   |   |   |   |
|    Cash      and due from banks                     |   | $                                | 13,962  |   |                | $      | -       |                  |   | $      | -            |   |   | $                        | -       |   |                           | $      | 13,962  |   |   | $ | - |   |   | $ | - |   |   | $ | 11,881 |   |   | $ | 25,843 |   |
|    Federal      funds sold                          |   |                             | 11      |   |                |   | -       |                  |   |   | -            |   |   |                     | -       |   |                           |   | 11      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11 |   |
|    Investment      securities                       |   |                             | 4,560   |   |                |   | 6,937   |                  |   |   | 10,653       |   |   |                     | 24,734  |   |                           |   | 46,884  |   |   |   | 41,223 |   |   |   | 139,621 |   |   |   | - |   |   |   | 227,728 |   |
|    Loans      held for sale                         |   |                             | 21,515  |   |                |   | -       |                  |   |   | -            |   |   |                     | -       |   |                           |   | 21,515  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,515 |   |
|    Loans,      net of allowance for loan losses     |   |                             | 263,571 |   |                |   | 6,656   |                  |   |   | 9,882        |   |   |                     | 12,457  |   |                           |   | 292,566 |   |   |   | 19,391 |   |   |   | 67,988 |   |   |   | (4,505 | ) |   |   | 375,440 |   |
|    Other      assets                                |   |                             | -       |   |                |   | -       |                  |   |   | -            |   |   |                     | -       |   |                           |   | -       |   |   |   | - |   |   |   | - |   |   |   | 27,461 |   |   |   | 27,461 |   |
|                                                               |   | $                                | 303,619 |   |                | $      | 13,593  |                  |   | $      | 20,535       |   |   | $                        | 37,191  |   |                           | $      | 374,938 |   |   | $ | 60,614 |   |   | $ | 207,609 |   |   | $ | 34,837 |   |   | $ | 677,996 |   |
| Sources      of Funds :                                            |   |                             |    |   |                |   |    |                  |   |   |         |   |   |                     |    |   |                           |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Demand      deposits - noninterest bearing  |   | $                                | -       |   |                | $      | -       |                  |   | $      | -            |   |   | $                        | -       |   |                           | $      | -       |   |   | $ | - |   |   | $ | - |   |   | $ | 82,473 |   |   | $ | 82,473 |   |
|    Demand      deposits - interest bearing          |   |                             | 55,252  |   |                |   | -       |                  |   |   | -            |   |   |                     | -       |   |                           |   | 55,252  |   |   |   | 59,376 |   |   |   | 10,901 |   |   |   | - |   |   |   | 125,529 |   |
|    Savings      deposits                            |   |                             | 135,920 |   |                |   | -       |                  |   |   | -            |   |   |                     | 31      |   |                           |   | 135,961 |   |   |   | 23,913 |   |   |   | 33,496 |   |   |   | - |   |   |   | 193,370 |   |
|    Time      deposits                               |   |                             | 21,986  |   |                |   | 40,953  |                  |   |   | 38,671       |   |   |                     | 40,532  |   |                           |   | 142,132 |   |   |   | 28,651 |   |   |   | - |   |   |   | - |   |   |   | 170,783 |   |
|    Borrowings                                       |   |                             | -       |   |                |   | -       |                  |   |   | -            |   |   |                     | 12,500  |   |                           |   | 12,500  |   |   |   | - |   |   |   | 10,000 |   |   |   | - |   |   |   | 22,500 |   |
|    Redeemable      subordinated debentures          |   |                             | -       |   |                |   | -       |                  |   |   | -            |   |   |                     | -       |   |                           |   | -       |   |   |   | 18,557 |   |   |   | - |   |   |   | - |   |   |   | 18,557 |   |
|    Non-interest-bearing      sources                |   |                             | -       |   |                |   | -       |                  |   |   | -            |   |   |                     | -       |   |                           |   | -       |   |   |   | - |   |   |   | - |   |   |   | 64,784 |   |   |   | 64,784 |   |
|                                                               |   | $                                | 213,158 |   |                | $      | 40,953  |                  |   | $      | 38,671       |   |   | $                        | 53,063  |   |                           | $      | 345,845 |   |   | $ | 130,497 |   |   | $ | 54,397 |   |   | $ | 147,257 |   |   | $ | 677,996 |   |
|                                                               |   |                             |    |   |                |   |    |                  |   |   |         |   |   |                     |    |   |                           |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      (Liability) Sensitivity Gap :                           |   |                             |    |   |                |   |    |                  |   |   |         |   |   |                     |    |   |                           |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Period      Gap                                  |   | $                                | 90,461  |   |                | $      | (27,360 | )                     |   | $      | (18,136      | )      |   | $                        | (15,872 | )      |                           | $      | 29,093  |   |   | $ | (69,883 | ) |   | $ | 153,212 |   |   | $ | (112,420 | ) |   |   | - |   |
|    Cumulative      Gap                              |   | $                                | 90,461  |   |                | $      | 63,101  |                  |   | $      | 44,965       |   |   | $                        | 29,093  |   |                           | $      | 29,093  |   |   | $ | (40,790 | ) |   | $ | 112,420 |   |   |   | - |   |   |   | - |   |
|    Cumulative      Gap to Total Assets              |   |                             | 13.4    | %      |                |   | 9.3     | %                     |   |   | 6.6          | %      |   |                     | 4.3     | %      |                           |   | 4.3     | % |   |   | (6.0 | )% |   |   | - |   |   |   | - |   |   |   | - |   |

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ant

ate

nge

ntr

|   | · | pertain      to the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of the assets of the      Company; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that the receipts and expenditures of the      Company are being made only in accordance with authorizations of its      management and directors; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the Company’s assets that      could have a material effect on its financial  statements. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Other 

rect

xecu

ecur

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| Plan      category                                                                          |   | Number      of securities tobe      issued upon exerciseof      outstanding options,warrants      and rights(a) |    | Weighted-average      exerciseprice      of outstanding options,warrants      and rights(b) |   | Number      of securitiesremaining      available forfuture      issuance under equitycompensation      plans(excluding      securitiesreflected      in column (a))(c) |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Equity      compensation plans approved by   security      holders (1) |   |                                                                                                            | 139,282 |                                                                                        |   | $                                                                                                                                                                       | 11.58 |   |   |   | 272,888 |   |
| Equity      compensation plans not approved by   security      holders (2)   |   |                                                                                                            | 15,428  |                                                                                        |   | $                                                                                                                                                                       | 6.14 |   |   |   | - |   |
| Total                                                                                       |   |                                                                                                            | 154,710 |                                                                                        |   | $                                                                                                                                                                       | 11.04 |   |   |   | 272,888 |   |

|   | (1) | Includes      the Company’s 2000 Employee Stock Option and Restricted Stock Plan, 2005      Equity Incentive Plan and 2006 Directors Stock  Plan. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Directors      Stock Option and Restricted StockPlan. |
|--------|-----|-------------------------------------------------------|

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latio

rin

xhib

| Exhibit No. |                            | Description |
|-------------|---------------------------------|-------------|
|        |                            |        |   |
| 3           | (i)(A)                          |        | Certificate      of Incorporation of the Company (conformed copy) (incorporated by      reference to Exhibit 3(i)(A) to the Company’s Form 10-K filed with the SEC      on March 27, 2009) |
|        |                            |        |   |
| 3           | (i)(B)                          |        | Certificate      of Amendment to the Certificate of Incorporation increasing the number of      shares designated as Series A Junior Participating Preferred Stock      (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed      with the SEC on December 23, 2008) |
|        |                            |        |   |
| 3           | (i)(C)                          |        | Certificate      of Amendment to the Certificate of Incorporation establishing the terms of      the Fixed Rate Cumulative Perpetual Preferred Stock, Series B      (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K filed      with the SEC on December 23, 2008) |
|        |                            |        |   |
| 3           | (ii)(A)     |        | Bylaws      of the Company (conformed copy) (incorporated by reference to Exhibit      3(ii)(A) to the Company’s Form 8-K filed with the SEC on October 22,      2007) |

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| Exhibit No. |    | Description |
|-------------|---------|-------------|
|        |    |        |   |
| 3           | (ii)(B) |        | Amendment      No. 2 to By-laws of the Company (incorporated by reference to Exhibit      3(ii)(B) to the Company’s Form 8-K filed with the SEC on October 22,      2007) |
|        |    |        |   |
| 4.1         |    |        | Specimen      Share of Common Stock (incorporated by reference to Exhibit 4.1 to the      Company’s Form 10-KSB (SEC File No. 000-32891) filed with the SEC on March      22, 2002) |
|        |    |        |   |
| 4.2         |    |        | Amended      and Restated Declaration of Trust of 1st Constitution Capital Trust I      dated as of April 10, 2002 among the Registrant, as sponsor, Wilmington      Trust Company, as Delaware and institutional trustee, and the      Administrators named therein (incorporated by reference to Exhibit 4.2 to      the Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on      May 8, 2002) |
|        |    |        |   |
| 4.3         |    |        | Indenture      dated as of April 10, 2002 between the Registrant, as issuer, and      Wilmington Trust Company, as trustee, relating to the Floating Rate Junior      Subordinated Debt Securities due 2032 (incorporated by reference to      Exhibit 4.3 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed      with the SEC on May 8, 2002) |
|        |    |        |   |
| 4.4         |    |        | Guarantee      Agreement dated as of April 10, 2002 between the Registrant and the      Wilmington Trust Company, as guarantee trustee (incorporated by reference      to Exhibit 4.4 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed      with the SEC on May 8, 2002) |
|        |    |        |   |
| 4.5         |    |        | Rights      Agreement, dated as of March 18, 2004, between 1st Constitution Bancorp      and Registrar and Transfer Company, as Rights Agent, (incorporated by      reference to Exhibit 4.5 to the Company’s Form 8-A12G (SEC File No.      000-32891) filed with the SEC on March 18, 2004) |
|        |    |        |   |
| 4.6         |    |        | Warrant,      dated December 23, 2008, to purchase shares of 1st Constitution Bancorp      common stock (incorporated by reference to Exhibit 3.3 to the Company’s      Form 8-K filed with the SEC on December 23, 2008) |
|        |    |        |   |
| 10.1        |    | #           | 1st      Constitution Bancorp Supplemental Executive Retirement Plan, dated as of      October 1, 2002 (Incorporated by reference to Exhibit 10.1 to the      Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on      November 13, 2002) |
|        |    |        |   |
| 10.2        |    | #           | Amended      and Restated 1st Constitution Bancorp Directors’ Insurance Plan, effective      as of June 16, 2005 (incorporated by reference to Exhibit No. 10 to the      Company’s Form 8-K filed with the SEC on March 24,2006) |
|        |    |        |   |
| 10.3        |    | #           | 1st      Constitution Bancorp Form of Executive Life Insurance Agreement      (Incorporated by reference to Exhibit 10.4 to the Company’s Form 10-QSB      (SEC File No. 000-32891) filed with the SEC on November 13,      2002) |
|        |    |        |   |
| 10.4        |    | #           | 2000      Employee Stock Option and Restricted Stock Plan (incorporated by reference      to Exhibit No. 6.3 to the Company’s Form 10-SB (SEC File No. 000-32891)      filed with the SEC on June 15, 2001) |
|        |    |        |   |
| 10.5        |    | #           | Directors      Stock Option and Restricted Stock Plan (incorporated by reference to      Exhibit No. 6.4 to the Company’s Form 10-SB (SEC File No. 000-32891) filed      with the SEC on June 15, 2001) |
|        |    |        |   |
| 10.6        |    | #           | Employment      Agreement between the Company and Robert F. Mangano dated April 22, 1999      (incorporated by reference to Exhibit No. 6.5 to the Company’s Form 10-SB      (SEC File No. 000-32891) filed with the SEC on June 15,    2001) |

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| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |   |
| 10.7        |   | #           | Amendment      No. 1 to 1st Constitution Bancorp Supplemental Executive Retirement Plan,      effective January 1, 2004 (incorporated by reference to Exhibit 10.12 to      the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on      August 11, 2004) |
|        |   |        |   |
| 10.8        |   | #           | Change      of Control Agreement, effective as of April 1, 2004, by and between the      Company and Joseph M. Reardon (incorporated by reference to Exhibit 10.13      to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on      August 11, 2004) |
|        |   |        |   |
| 10.9        |   | #           | Form      of Stock Option Agreement under the 1st Constitution      Bancorp  Employee Stock Option and Restricted Stock Plan      (incorporated by reference to Exhibit 10.14 to the Company’s Form 8-K (SEC      File No. 000-32891) filed with the SEC on December 22,    2004) |
|        |   |        |   |
| 10.10       |   | #           | Form      of Restricted Stock Agreement under the 1st Constitution      Bancorp  Employee Stock Option and Restricted Stock Plan      (incorporated by reference to Exhibit 10.15 to the Company’s Form 8-K (SEC      File No. 000-32891) filed with the SEC on December 22,    2004) |
|        |   |        |   |
| 10.11       |   | #           | Employment      Agreement between the Company and Robert F. Mangano dated February 22,      2005 (incorporated by reference to Exhibit No. 10.16 to the Company’s Form      8-K (SEC File No. 000-32891) filed with the SEC on February 24,      2005) |
|        |   |        |   |
| 10.12       |   | #           | The      1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by      reference to Appendix A of the Company's proxy statement filed with the      SEC on April 15, 2005) |
|        |   |        |   |
| 10.13       |   | #           | Form      of Restricted Stock Agreement under the 1st Constitution Bancorp 2005      Equity Incentive Plan (incorporated by reference to Exhibit 10.18 to the      Company’s Form 10-Q filed with the SEC on August 8,  2005) |
|        |   |        |   |
| 10.14       |   | #           | Form      of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp      2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.19 to      the Company’s Form 10-Q filed with the SEC on August 8,    2005) |
|        |   |        |   |
| 10.15       |   | #           | Form      of Incentive Stock Option Agreement under the 1st Constitution Bancorp      2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.20 to      the Company’s Form 10-Q filed with the SEC on August 8,    2005) |
|        |   |        |   |
| 10.16       |   | #           | 1st      Constitution Bancorp 2006 Directors Stock Plan (incorporated by reference      to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on May 19,      2006) |
|        |   |        |   |
| 10.17       |   | #           | Form      of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp      2006 Directors Stock Plan (incorporated by reference to Exhibit 10.2 to      the Company’s Form 8-K filed with the SEC on May 19,  2006) |
|        |   |        |   |
| 10.18       |   | #           | Form      of Restricted Stock Agreement under the 1st Constitution Bancorp 2006      Directors Stock Plan (incorporated by reference to Exhibit 10.3 to the      Company’s Form 8-K filed with the SEC on May 19, 2006) |
|        |   |        |   |
| 10.19       |   |        | Amended      and Restated Declaration of Trust of 1st Constitution Capital Trust II,      dated as of June 15, 2006, among 1st Constitution Bancorp, as sponsor, the      Delaware and institutional trustee named therein, and the administrators      named therein (incorporated by reference to Exhibit 10.1 to the Company’s      Form 8-K filed with the SEC on June 16,2006) |

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| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |   |
| 10.20       |   |        | Indenture,      dated as of June 15, 2006, between 1st Constitution Bancorp, as issuer,      and the trustee named therein, relating to the Floating Rate Junior      Subordinated Debt Securities due 2036 (incorporated by reference to      Exhibit 10.2 to the Company’s Form 8-K filed with the SEC on June 16,      2006) |
|        |   |        |   |
| 10.21       |   |        | Guarantee      Agreement, dated as of June 15, 2006, between 1st Constitution Bancorp and      the guarantee trustee named therein (incorporated by reference to Exhibit      10.3 to the Company’s Form 8-K filed with the SEC on June 16,      2006) |
|        |   |        |   |
| 10.22       |   | #           | Amendment      No. 2 to 1st Constitution Bancorp Supplemental Executive Retirement      Plan, effective as of December 31, 2004 (incorporated by reference to      Exhibit 10.24 to the Company’s Form 10-K filed with the SEC on April 15,      2008) |
|        |   |        |   |
| 10.23       |   | #           | 1st      Constitution Bancorp 2005 Supplemental Executive Retirement Plan,      effective as of January 1, 2005 (incorporated by reference to Exhibit 10.1      to the Company’s Form 8-K filed with the SEC on December 28,      2006) |
|        |   |        |   |
| 10.24       |   |        | Letter      Agreement, dated December 23, 2008, including Securities Purchase      Agreement – Standard Terms incorporated by reference therein, between 1st      Constitution Bancorp and the U.S. Department of the Treasury (incorporated      by reference to Exhibit 10 to the Company’s Form S-3 filed with the SEC on      January 29, 2009) |
|        |   |        |   |
| 10.25       |   | #           | Form      of Waiver, executed by each of Messrs. Robert Mangano and Joseph M.      Reardon (incorporated by reference to Exhibit 10.2 to the Company’s Form      8-K filed with the SEC on December 23, 2008) |
|        |   |        |   |
| 10.26       |   | #           | Form      of Senior Executive Officer Agreement, executed by each of Messrs. Robert      Mangano and Joseph M. Reardon (incorporated by reference to Exhibit 10.3      to the Company’s Form 8-K filed with the SEC on December 23,      2008) |
|        |   |        |   |
| 10.27       |   | #*          | Letter      Agreement with Robert F. Mangano dated November 5, 2009 and executed by      Mr. Mangano on November 7, 2009 |
|        |   |        |   |
| 10.28       |   | #*          | Letter      Agreement with Joseph M. Reardon dated November 5, 2009 and executed by      Mr. Reardon on November 7, 2009 |
|        |   |        |   |
| 14          |   |        | Code      of Business Conduct and Ethics (incorporated by reference to Exhibit 14 to      the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on      March 25, 2004) |
|        |   |        |   |
| 21          |   | *           | Subsidiaries      of the Company |
|        |   |        |   |
| 23          |   | *           | Consent      of Independent Registered Public Accounting Firm |
|        |   |        |   |
| 31.1        |   | *           | Certification      of the principal executive officer of the Company, pursuant to Securities      Exchange Act Rule 13a-14(a) |
|        |   |        |   |
| 31.2        |   | *           | Certification      of the principal financial officer of the Company, pursuant to Securities      Exchange Act Rule 13a-14(a) |
|        |   |        |   |
| 32          |   | *           | Certifications      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      The Sarbanes-Oxley Act of 2002, signed by the principal executive officer      and the principal financial officer of the  Company |

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| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |   |
| 99.1        |   | *           | Certification      of principal executive officer of the Company, pursuant to Section 111(b)      (4) of the Emergency Economic Stability Act of 2008,      as amended by the American Recovery and Reinvestment Act of      2009 |
|        |   |        |   |
| 99.2        |   | *           | Certification      of principal financial officer of the Company, pursuant to Section 111(b)      (4) of the Emergency Economic Stability Act of 2008,      as amended by the American Recovery and Reinvestment Act of      2009 |

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|                                                                                                                  | Page      |
|-----------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                  |      |
| Report of Independent Registered Public Accounting      Firm                                                          | F-2       |
|                                                                                                                  |      |
| Consolidated Balance Sheets – December 31, 2009 and      2008                                                   | F-3       |
|                                                                                                                  |      |
| Consolidated Statements of Income – For the Years Ended      December 31, 2009 and 2008                         | F-4       |
|                                                                                                                  |      |
| Consolidated Statements of Changes in Shareholders’ Equity -      For the YearsEnded December 31, 2009 and 2008 |  F-5 |
|                                                                                                                  |      |
| Consolidated Statements of Cash Flows - For the Years Ended      December 31, 2009 and 2008                           | F-6       |
|                                                                                                                  |      |
| Notes to Consolidated Financial Statements                                                                            | F-7       |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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1st CONSTITUTION BANCORP

|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------|---------|--------|---------|
|                                                                                                                                                                                                                                                                |   | 2009    |        |    | 2008   |    |
| ASSETS                                                                                                                                                                                                                                                              |   |    |        |    |   |    |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |
| CASH      AND DUE FROM BANKS                                                                                                                                                                                                                                   |   | $  | 25,842,901  |    |   | $  | 14,321,777 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| FEDERAL      FUNDS SOLD / SHORT TERM INVESTMENTS                                                                                                                                                                                                               |   |    | 11,384      |    |   |    | 11,342 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| Total      cash and cash equivalents                                                                                                                                                                                                                           |   |    | 25,854,285  |    |   |    | 14,333,119 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| INVESTMENT      SECURITIES                                                                                                                                                                                                                                     |   |    |        |    |   |    |   |   |
| Available      for sale, at fair value                                                                                                                                                                                                                         |   |    | 204,118,850 |    |   |    | 93,477,023 |   |
| Held      to maturity (fair value of $24,215,530 and $36,140,379at      December 31, 2009 and 2008, respectively)                                                                                                                                              |   |    | 23,608,980  |    |   |    | 36,550,577 |   |
| Total      securities                                                                                                                                                                                                                                          |   |    | 227,727,830 |    |   |    | 130,027,600 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| LOANS      HELD FOR SALE                                                                                                                                                                                                                                       |   |    | 21,514,785  |    |   |    | 5,702,082 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| LOANS                                                                                                                                                                                                                                                          |   |    | 379,945,735 |    |   |    | 377,348,416 |   |
| Less-      Allowance for loan losses                                                                                                                                                                                                                           |   |    | (4,505,387  | )  |   |    | (3,684,764 | )  |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| Net      loans                                                                                                                                                                                                                                                 |   |    | 375,440,348 |    |   |    | 373,663,652 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| PREMISES      AND EQUIPMENT, net                                                                                                                                                                                                                               |   |    | 4,899,091   |    |   |    | 2,302,489 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| ACCRUED      INTEREST RECEIVABLE                                                                                                                                                                                                                               |   |    | 2,274,087   |    |   |    | 2,192,601 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| BANK-OWNED      LIFE INSURANCE                                                                                                                                                                                                                                 |   |    | 10,319,055  |    |   |    | 9,929,204 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| OTHER      REAL ESTATE OWNED                                                                                                                                                                                                                                   |   |    | 1,362,621   |    |   |    | 4,296,536 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| OTHER      ASSETS                                                                                                                                                                                                                                              |   |    | 8,604,378   |    |   |    | 3,839,246 |   |
| Total      assets                                                                                                                                                                                                                                              |   | $  | 677,996,480 |    |   | $  | 546,286,529 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| LIABILITIES AND SHAREHOLDERS’      EQUITY                                                                                                                                                                                                                     |   |    |        |    |   |    |   |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| LIABILITIES:                                                                                                                                                                                                                                                   |   |    |        |    |   |    |   |   |
| Deposits                                                                                                                                                                                                                                                       |   |    |        |    |   |    |   |   |
| Non-interest      bearing                                                                                                                                                                                                                                      |   | $       | 82,473,328  |    |   | $       | 71,772,486 |   |
|              Interest bearing                                                                                                                                                                                               |   |    | 489,682,026 |    |   |    | 342,912,245 |   |
| Total      deposits                                                                                                                                                                                                                                            |   |    | 572,155,354 |    |   |    | 414,684,731 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| BORROWINGS                                                                                                                                                                                                                                                     |   |    | 22,500,000  |    |   |    | 51,500,000 |   |
| REDEEMABLE      SUBORDINATED DEBENTURES                                                                                                                                                                                                                        |   |    | 18,557,000  |    |   |    | 18,557,000 |   |
| ACCRUED      INTEREST PAYABLE                                                                                                                                                                                                                                  |   |    | 1,757,151   |    |   |    | 1,984,102 |   |
| ACCRUED      EXPENSES AND OTHER LIABILITIES                                                                                                                                                                                                                    |   |    | 5,625,922   |    |   |    | 3,941,044 |   |
| Total      liabilities                                                                                                                                                                                                                                         |   |    | 620,595,427 |    |   |    | 490,666,877 |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                                                                                                                             |   |    |        |    |   |    |   |   |
|                                                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| SHAREHOLDERS’      EQUITY                                                                                                                                                                                                                                |   |    |        |    |   |    |   |   |
| Preferred      Stock, no par value; 5,000,000 shares authorized, of which 12,000      shares ofSeries      B, $1,000 liquidation preference, 5% cumulative increasing to 9%      cumulative on February      15, 2014, were issued  and outstanding  |   |    | 11,473,262  |    |   |    | 11,387,828 |   |
| Common      stock, no par value; 30,000,000 shares authorized; 4,526,827 and      4,414,412 sharesissued       and 4,515,924 and 4,408,815  shares outstanding as of December      31, 2009 and 2008, respectively                         |   |    | 36,774,621  |    |   |    | 35,180,433 |   |
| Retained      earnings                                                                                                                                                                                                                                         |   |    | 10,307,331  |    |   |    | 9,653,923 |   |
| Treasury      Stock, at cost, 10,903 shares and 5,597 shares at      December 31, 2009 and 2008, respectively                                                                                                                                             |   |    | (73,492     | )  |   |    | (53,331 | )  |
|  Accumulated      other comprehensive loss                                                                                                                                                                                                                |   |    | (1,080,669  | )  |   |    | (549,201 | )  |
| Total      shareholders’ equity                                                                                                                                                                                                                          |   |    | 57,401,053  |    |   |    | 55,619,652 |   |
| Total      liabilities and shareholders’ equity                                                                                                                                                                                                          |   | $  | 677,996,480 |    |   | $  | 546,286,529 |   |

----

Table of Contents

1st CONSTITUTION BANCORP

|                                                                                                                                                                 |   | 2009   |       |          | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|---------------|--------|--------|
| INTEREST      INCOME:                                                                                                                                                |   |   |       |          |   |   |
| Loans,      including fees                                                                                                                                           |   | $      | 24,390,271 |          |   | $      | 24,288,658 |   |
| Securities:                                                                                                                                                          |   |   |       |          |   |   |   |   |
| Taxable                                                                                                                                                              |   |   | 5,143,123  |          |   |   | 4,158,923 |   |
| Tax-exempt                                                                                                                                                           |   |   | 486,652    |          |   |   | 560,303 |   |
| Federal      funds sold and                                                                                                                                          |   |   |       |          |   |   |   |   |
| short-term      investments                                                                                                                                          |   |   | 116,070    |          |   |   | 112,427 |   |
|  Total      interest income                                                                                                                                     |   |   | 30,136,116 |          |   |   | 29,120,311 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| INTEREST      EXPENSE:                                                                                                                                               |   |   |       |          |   |   |   |   |
| Deposits                                                                                                                                                             |   |   | 9,829,032  |          |   |   | 10,106,856 |   |
|     Borrowings                                                                                                                                   |   |   | 1,353,489  |          |   |   | 1,556,240 |   |
| Redeemable      subordinated debentures                                                                                                                              |   |   | 1,072,827  |          |   |   | 1,069,351 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| Total      interest expense                                                                                                                                          |   |   | 12,255,348 |          |   |   | 12,732,447 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| Net      interest income                                                                                                                                             |   |   | 17,880,768 |          |   |   | 16,387,864 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| PROVISION      FOR LOAN LOSSES                                                                                                                                       |   |   | 2,553,000  |          |   |   | 640,000 |   |
| Net      interest income after provision                                                                                                                             |   |   |       |          |   |   |   |   |
| for      loan losses                                                                                                                                                 |   |   | 15,327,768 |          |   |   | 15,747,864 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| NON-INTEREST      INCOME:                                                                                                                                            |   |   |       |          |   |   |   |   |
| Service      charges on deposit accounts                                                                                                                             |   |   | 885,702    |          |   |   | 883,882 |   |
| Gain      on sales of loans                                                                                                                                          |   |   | 1,325,274  |          |   |   | 1,040,916 |   |
| Gain      on sales of securities available for sale                                                                                                                  |   |   | 1,138,655  |          |   |   | 0 |   |
| Income      on Bank-owned life insurance                                                                                                                             |   |   | 389,851    |          |   |   | 378,852 |   |
| Other-than      temporary security impairment:                                                                                                                       |   |   |       |          |   |   |   |   |
|                Total                                                                      |   |   | (864,727   | )             |   |   | 0 |   |
|                 Less:  Portion      recognized in other comprehensive loss |   |   | 500,944    |          |   |   | 0 |   |
|                 Portion      recognized in earnings                                  |   |   | (363,783   | )   |   |   | 0 |   |
| Other      income                                                                                                                                                    |   |   | 1,129,377  |          |   |   | 976,226 |   |
| Total      other income                                                                                                                                              |   |   | 4,505,076  |          |   |   | 3,279,876 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| NON-INTEREST      EXPENSES:                                                                                                                                          |   |   |       |          |   |   |   |   |
| Salaries      and employee benefits                                                                                                                                  |   |   | 9,352,360  |          |   |   | 8,426,729 |   |
| Occupancy      expense                                                                                                                                               |   |   | 1,783,031  |          |   |   | 1,802,723 |   |
| Data      processing expenses                                                                                                                                        |   |   | 1,085,257  |          |   |   | 896,724 |   |
| FDIC      insurance expense                                                                                                                                          |   |   | 1,193,309  |          |   |   | 196,072 |   |
| Other      operating expenses                                                                                                                                        |   |   | 3,701,844  |          |   |   | 3,706,693 |   |
| Total      other expenses                                                                                                                                            |   |   | 17,115,801 |          |   |   | 15,028,941 |   |
| Income      before income taxes                                                                                                                                      |   |   | 2,717,043  |          |   |   | 3,998,799 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| INCOME      TAXES                                                                                                                                                    |   |   | 156,282    |          |   |   | 1,239,341 |   |
| Net      income                                                                                                                                                      |   |   | 2,560,761  |          |   |   | 2,759,458 |   |
| Dividends      and accretion on preferred stock                                                                                                                      |   |   | 719,601    |          |   |   | 0 |   |
| Net      income available to common shareholders                                                                                                                     |   | $      | 1,841,160  |          |   | $      | 2,759,458 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| NET      INCOME PER COMMON SHARE                                                                                                                                     |   |   |       |          |   |   |   |   |
| Basic                                                                                                                                                                |   | $      | 0.41       |          |   | $      | 0.63 |   |
| Diluted                                                                                                                                                              |   | $      | 0.41       |          |   | $      | 0.62 |   |
|                                                                                                                                                                 |   |   |       |          |   |   |   |   |
| WEIGHTED      AVERAGE SHARES                                                                                                                                         |   |   |       |          |   |   |   |   |
| OUTSTANDING                                                                                                                                                          |   |   |       |          |   |   |   |   |
| Basic                                                                                                                                                                |   |   | 4,470,420  |          |   |   | 4,402,368 |   |
| Diluted                                                                                                                                                              |   |   | 4,485,628  |          |   |   | 4,425,753 |   |

----

Table of Contents

1st CONSTITUTION BANCORP

|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   | Accumulated   |    |   |          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|--------|--------|------------|----------|--------|--------|------------|--------|--------|---------------|---------|--------|---------------|--------|
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   | Other         |    |   | Total         |   |
|                                                                                                                                                                        |   | Preferred |       |   | Common |   |       | Retained |   |   | Treasury   |   |   | Comprehensive |    |   | Shareholders' |   |
|                                                                                                                                                                        |   | Stock     |       |   | Stock  |   |       | Earnings |   |   | Stock      |   |   | Loss          |    |   | Equity        |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |
| BALANCE,      January 1, 2008                                                                                                                                               |   | $         | -          |   |   | $      | 32,514,936 |     |   | $      | 9,009,955  |   |   | $             | (18,388 | )      |          | $      | (533,186 | ) |   | $ | 40,973,317 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Cumulative      effect of adoption of new accounting           standard      for split dollar life insurance benefit |   |      |       |   |   |   |       |     |   |   | (329,706   | )      |   |          |    |   |          |   |   |   |   |   | (329,706 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Proceeds      from issuance of preferred stock           and      warrants, net                                      |   |      | 11,387,828 |   |   |   | 562,172    |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   | 11,950,000 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Exercise      of stock options, net and issuance of vested                                                                                                                  |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|       shares      under employee benefit programs                                                                                             |   |      |       |   |   |   | 195,325    |     |   |   |       |   |   |          | 35,584  |   |          |   |   |   |   |   | 230,909 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Share-based      compensation                                                                                                                                               |   |      |       |   |   |   | 122,216    |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   | 122,216 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Treasury      Stock purchased (6,416 shares)                                                                                                                                |   |      |       |   |   |   |       |     |   |   |       |   |   |          | (70,527 | )      |          |   |   |   |   |   | (70,527 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| 5%      stock dividend declared December 2008                                                                                                                               |   |      |       |   |   |   | 1,785,784  |     |   |   | (1,785,784 | )      |   |          |    |   |          |   |   |   |   |   | - |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Comprehensive      Income:                                                                                                                                                  |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Net      Income  - 2008                                                                                                                   |   |      |       |   |   |   |       |     |   |   | 2,759,458  |   |   |          |    |   |          |   |   |   |   |   | 2,759,458 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Pension      liability                                                                                                                              |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|       net      of tax of $23,267                                                                                                              |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   | 33,637 |   |   |   | 33,637 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Unrealized      loss on interest rate swap contract                                                                                                 |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|       net      of tax benefit of $423,906                                                                                                     |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   | (635,496 | ) |   |   | (635,496 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Unrealized      gain on securities available for sale                                                                                               |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|      net      of tax of $309,759                                                                                                                   |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   | 585,844 |   |   |   | 585,844 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Comprehensive      Income                                                                                                                                                   |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   | 2,743,443 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| BALANCE,      December 31, 2008                                                                                                                                             |   |      | 11,387,828 |   |   |   | 35,180,433 |     |   |   | 9,653,923  |   |   |          | (53,331 | )      |          |   | (549,201 | ) |   |   | 55,619,652 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Exercise      of stock options, net and issuance of vested                                                                                                                  |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|       shares      under employee benefit programs                                                                                             |   |      |       |   |   |   | 295,320    |     |   |   |       |   |   |          | 58,305  |   |          |   |   |   |   |   | 353,625 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Share-based      compensation                                                                                                                                               |   |      |       |   |   |   | 111,116    |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   | 111,116 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Treasury      Stock purchased (12,353 shares)                                                                                                                               |   |      |       |   |   |   |       |     |   |   |       |   |   |          | (78,466 | )      |          |   |   |   |   |   | (78,466 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| 5%      stock dividend declared December 2009                                                                                                                               |   |      |       |   |   |   | 1,187,752  |     |   |   | (1,187,752 | )      |   |          |    |   |          |   |   |   |   |   | - |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Dividends      on preferred stock                                                                                                                                           |   |      |       |   |   |   |       |     |   |   | (611,667   | )      |   |          |    |   |          |   |   |   |   |   | (611,667 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Preferred      stock issuance costs                                                                                                                                         |   |      | (22,500    | )      |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   | (22,500 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Accretion      of discount on preferred stock                                                                                                                               |   |      | 107,934    |   |   |   |       |     |   |   | (107,934   | )      |   |          |    |   |          |   |   |   |   |   | - |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Comprehensive      Income:                                                                                                                                                  |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Net      Income  - 2009                                                                                                                   |   |      |       |   |   |   |       |     |   |   | 2,560,761  |   |   |          |    |   |          |   |   |   |   |   | 2,560,761 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Pension      liability                                                                                                                              |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|       net      of tax of $45,694                                                                                                              |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   | 68,517 |   |   |   | 68,517 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Unrealized      gain on interest rate swap contract                                                                                                 |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|       net      of tax benefit of $109,976                                                                                                     |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   | 165,374 |   |   |   | 165,374 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|     Unrealized      loss on securities available for sale                                                                                               |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|      net      of tax of $235,686                                                                                                                   |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   | (434,736 | ) |   |   | (434,736 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
|      Impairment      loss on securities net of tax of       $170,321                                            |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   | (330,623 | ) |   |   | (330,623 | ) |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| Comprehensive      Income                                                                                                                                                   |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   | 2,029,293 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |
| BALANCE,      December 31, 2009                                                                                                                                             |   | $         | 11,473,262 |   |   | $      | 36,774,621 |     |   | $      | 10,307,331 |   |   | $             | (73,492 | )      |          | $      | (1,080,669 | ) |   | $ | 57,401,053 |   |
|                                                                                                                                                                        |   |      |       |   |   |   |       |     |   |   |       |   |   |          |    |   |          |   |   |   |   |   |   |   |

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1st CONSTITUTION BANCORP

|                                                                                    |   | 2009   |         |    | 2008   |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------------|---------|--------|--------|
| OPERATING      ACTIVITIES:                                                              |   |   |         |    |   |   |
| Net      income                                                                         |   | $      | 2,560,761    |    |   | $      | 2,759,458 |   |
| Adjustments      to reconcile net income                                                |   |   |         |    |   |   |   |   |
|      to      net cash provided by operating activities-        |   |   |         |    |   |   |   |   |
| Provision      for loan losses                                                          |   |   | 2,553,000    |    |   |   | 640,000 |   |
| Depreciation      and amortization                                                      |   |   | 628,407      |    |   |   | 698,807 |   |
| Net      amortization of premiums on securities                                         |   |   | 51,773       |    |   |   | 87,594 |   |
| Other      than temporary securities impairment loss                                    |   |   | 363,783      |    |   |   | - |   |
| Gains      on sales of securities available for sale                                    |   |   | (1,138,655   | )       |   |   | - |   |
| Gains      on sale of equipment                                                         |   |   | -            |    |   |   | (17,301) |   |
| Gains      on sales of other real estate owned                                          |   |   | (82,690      | )       |   |   | (14,961) |   |
| Gains      on sales of loans held for sale                                              |   |   | (1,325,274   | )       |   |   | (1,040,916) |   |
| Originations      of loans held for sale                                                |   |   | (159,468,307 | )       |   |   | (81,465,974) |   |
| Proceeds      from sales of loans held for sale                                         |   |   | 144,980,878  |    |   |   | 87,126,813) |   |
| Income      on Bank-owned life insurance                                                |   |   | (389,851     | )       |   |   | (378,852) |   |
| Share-based      compensation expense                                                   |   |   | 255,275      |    |   |   | 334,316 |   |
| Deferred      tax benefit                                                               |   |   | (1,296,270   | )  |   |   | (364,651) |   |
| (Increase)      decrease in accrued interest receivable                                 |   |   | (81,486      | )       |   |   | 303,131 |   |
| (Increase)      in other assets                                                         |   |   | (3,255,237   | )       |   |   | (23,130) |   |
| Decrease      in accrued interest payable                                               |   |   | (226,951     | )       |   |   | (8,085) |   |
| Increase      (decrease) in accrued expenses and other liabilities                      |   |   | 1,855,280    |    |   |   | (299,927) |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| Net      cash (used in) provided by operating activities                                |   |   | (14,015,564  | )       |   |   | 8,336,322 |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| INVESTING      ACTIVITIES:                                                              |   |   |         |    |   |   |   |   |
|                                                                                    |   |   |         |    |   |   |   |   |
|      Purchases      of securities -                            |   |   |         |    |   |   |   |   |
| Available      for sale                                                                 |   |   | (215,232,453 | )       |   |   | (43,765,333) |   |
| Held      to maturity                                                                   |   |   | (4,908,323   | )       |   |   | (21,443,565) |   |
|      Proceeds      from maturities and repayments              |   |   |         |    |   |   |   |   |
| of      securities -                                                                    |   |   |         |    |   |   |   |   |
| Available      for sale                                                                 |   |   | 87,005,097   |    |   |   | 26,324,998 |   |
| Held      to maturity                                                                   |   |   | 16,884,855   |    |   |   | 8,368,792 |   |
|      Proceeds      from sales of securities available for sale |   |   | 18,102,327   |    |   |   | - |   |
|      Net      Increase in loans                                |   |   | (8,765,060   | )       |   |   | (84,280,195) |   |
|      Proceeds      from sale of equipment                      |   |   | -            |    |   |   | 32,049 |   |
|      Capital      expenditures                                 |   |   | (581,620     | )       |   |   | (219,129) |   |
|      Additional      investment in other real estate owned     |   |   | (396,139     | )       |   |   | (2,104,284 |   |
|      Proceeds      from sales of other real estate owned       |   |   | 5,241,431    |    |   |   | 2,172,617 |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| Net      cash used in investing activities                                              |   |   | (102,649,885 | )       |   |   | (114,914,050) |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| FINANCING      ACTIVITIES:                                                              |   |   |         |    |   |   |   |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| Exercise      of stock options and issuance of treasury stock                           |   |   | 353,625      |    |   |   | 230,909 |   |
| Purchase      of treasury stock                                                         |   |   | (78,466      | )       |   |   | (70,527) |   |
| Dividends      paid on preferred stock                                                  |   |   | (536,667     | )       |   |   | - |   |
| Preferred      stock issuance costs paid                                                |   |   | (22,500      | )       |   |   | - |   |
| Net      increase in demand, savings and time deposits                                  |   |   | 157,470,623  |    |   |   | 85,352,363 |   |
| Net      (decrease) increase in borrowings                                              |   |   | (29,000,000  | )       |   |   | 15,900,000 |   |
| Proceeds      from issuance of preferred stock                                          |   |   | -            |    |   |   | 11,950,000 |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| Net      cash provided by financing activities                                          |   |   | 128,186,615  |    |   |   | 113,362,745 |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| Increase      in cash and cash equivalents                                              |   |   | 11,521,166   |    |   |   | 6,785,017 |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                                                          |   |   |         |    |   |   |   |   |
| AT      BEGINNING OF YEAR                                                               |   |   | 14,333,119   |    |   |   | 7,548,102 |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                                                          |   |   |         |    |   |   |   |   |
| AT      END OF YEAR                                                                     |   | $      | 25,854,285   |    |   | $      | 14,333,119 |   |
|                                                                                    |   |   |         |    |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES                                                           |   |   |         |    |   |   |   |   |
| OF      CASH FLOW INFORMATION:                                                          |   |   |         |    |   |   |   |   |
| Cash      paid during the year for -                                                    |   |   |         |    |   |   |   |   |
| Interest                                                                                |   | $      | 12,482,299   |    |   | $      | 12,740,532 |   |
| Income      taxes                                                                       |   |   | 775,916      |    |   |   | 2,380,200 |   |
| Non-cash      investing activities                                                      |   |   |         |    |   |   |   |   |
| Real      estate acquired in full satisfaction of loans in    foreclosure               |   |   | 4,435,364    |    |   |   | 1,389,181 |   |
| Foreclosed      real estate transferred to bank premises for bank use                   |   |   | 2,606,677    |    |   |   | - |   |

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|                                                                                             |   | Year      Ended December 31, 2009 |      |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                                             |   | Income                            |      |   | Weighted-averageshares |   |   | Per      shareAmount |   |
| Basic      EPS                                                                                   |   |                              |      |   |   |   |   |   |   |
| Net      income                                                                                  |   | $                                 | 2,560,761 |   |   |   |   |   |   |   |   |   |
| Preferred      stock dividends and accretion                                                     |   |                              | (719,601  | ) |   |   |   |   |   |   |   |   |
| Income      available to common shareholders                                                     |   |                              | 1,841,160 |   |   |   | 4,470,420 |   |   | $ | 0.41 |   |
|                                                                                             |   |                              |      |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive securities                                                               |   |                              |      |   |   |   |   |   |   |   |   |   |
| Stock      options and unvested stock awards                                                     |   |                              | -         |   |   |   | 15,208 |   |   |   | - |   |
|                                                                                             |   |                              |      |   |   |   |   |   |   |   |   |   |
| Diluted      EPS                                                                                 |   |                              |      |   |   |   |   |   |   |   |   |   |
| Net      income available to common shareholders     plus      assumed conversion |   | $                                 | 1,841,060 |   |   |   | 4,485,628 |   |   | $ | 0.41 |   |
|                                                                                             |   |                              |      |   |   |   |   |   |   |   |   |   |

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|                                                                          |   | Year      Ended December 31, 2008 |      |
|-------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                          |   | Income                            |      |   | Weighted-averageshares |   |   | Per      shareAmount |   |
| Basic      EPS                                                                |   |                              |      |   |   |   |   |   |   |
| Net      income available to common stockholders                              |   | $                                 | 2,759,458 |   |   |   |   |   |   |   |
| Preferred      stock dividends and accretion                                  |   |                              | -         |   |   |   |   |   |   |   |
| Income      available to common shareholders                                  |   |                              | 2,759,458 |   |   |   | 4,402,368 |   |   | $ | 0.63 |   |
|                                                                          |   |                              |      |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive securities                                            |   |                              |      |   |   |   |   |   |   |   |   |   |
| Stock      options and unvested stock awards                                  |   |                              | -         |   |   |   | 23,385 |   |   |   | (0.01 | ) |
|                                                                          |   |                              |      |   |   |   |   |   |   |   |   |   |
| Diluted      EPS                                                              |   |                              |      |   |   |   |   |   |   |   |   |   |
| Net      income available to common stockholders plus assumed      conversion |   | $                                 | 2,759,458 |   |   |   | 4,425,753 |   |   | $ | 0.62 |   |

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|                                                                                                                        |   |      |        |   | Gross      |   |      | Gross      |   |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                                                                        |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair       |   |
| 2009                                                                                                                        |   |      | Cost        |   |       | Gains  |      |       | Losses |   |       | Value  |   |
|                                                                                                                        |   |      |        |   |       |   |      |       |   |   |       |   |
| Available      for sale-                                                                                                    |   |      |        |   |       |   |      |       |   |   |       |   |
| U.      S. Treasury securities and                                                                                          |   |      |        |   |       |   |      |       |   |   |       |   |
| obligations      of U.S. Government                                                                                         |   |      |        |   |       |   |      |       |   |   |       |   |
| sponsored      corporations and agencies                                                                                    |   | $         | 138,351,028 |   |       | $      | 291,906   |       |   | $      | (673,252   | )      |   | $ | 137,969,682 |   |
|     Residential      collateralized mortgage        Obligations |   |      | 34,749,123  |   |       |   | 172,698   |       |   |   | (252,023   | )      |   |   | 34,669,798 |   |
| Residential      mortgage backed securities                                                                                 |   |      | 24,182,584  |   |       |   | 1,449,071 |       |   |   | -          |   |   |   | 25,631,655 |   |
| Obligations      of State and                                                                                               |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Political      subdivisions                                                                                                 |   |      | 2,633,210   |   |       |   | 45,644    |       |   |   | (91,212    | )      |   |   | 2,587,642 |   |
|     Trust      preferred debt securities                                                                |   |      | 2,457,262   |   |       |   | -         |       |   |   | (687,089)  |   |   |   | 1,770,173 |   |
|     Restricted      stock                                                                               |   |      | 1,464,900   |   |       |   | 0-        |       |   |   | -          |   |   |   | 1,464,900 |   |
|     Mutual      fund                                                                                    |   |      | 25,000      |   |       |   | 0-        |       |   |   | -          |   |   |   | 25,000 |   |
|                                                                                                                        |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                        |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                        |   | $         | 203,863,107 |   |       | $      | 1,959,319 |       |   | $      | (1,703,576 | )      |   | $ | 204,118,850 |   |
|                                                                                                                        |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Held      to maturity-                                                                                                      |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|     Residential      collateralized mortgage       Obligations       |   | $         | 4,881,475   |   |       | $      | 150,055   |       |   | $      | -          |   |   | $ | 5,031,530 |   |
| Residential      mortgage backed securities                                                                                 |   |      | 6,111,131   |   |       |   | 97,782    |       |   |   | (29,521    | )      |   |   | 6,179,392 |   |
| Obligations      of state and                                                                                               |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| political      subdivisions                                                                                                 |   |      | 8,600,596   |   |       |   | 270,947   |       |   |   | -          |   |   |   | 8,871,543 |   |
| Trust      preferred debt securities                                                                                        |   |      | 133,054     |   |       |   | -         |       |   |   | -          |   |   |   | 133,054 |   |
| Corporate      debt securities                                                                                              |   |      | 3,882,724   |   |       |   | 117,287   |       |   |   | -          |   |   |   | 4,000,011 |   |
|                                                                                                                        |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                        |   | $         | 23,608,980  |   |       | $      | 636,071   |       |   | $      | (29,521    | )      |   | $ | 24,215,530 |   |

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|                                                                                                                        |   |      |       |   | Gross      |   |      | Gross      |   |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                                                                        |   | Amortized |       |   | Unrealized |   |      | Unrealized |   |   | Fair       |   |
| 2008                                                                                                                        |   |      | Cost       |   |       | Gains  |      |       | Losses |   |       | Value  |   |
| Available      for sale-                                                                                                    |   |      |       |   |       |   |      |       |   |   |       |   |
| U.      S. Treasury securities and                                                                                          |   |      |       |   |       |   |      |       |   |   |       |   |
| obligations      of U.S. Government                                                                                         |   |      |       |   |       |   |      |       |   |   |       |   |
| sponsored      corporations and agencies                                                                                    |   | $         | 22,802,334 |   |       | $      | 415,626   |       |   | $      | -          |   |   | $ | 23,217,960 |   |
|     Residential      collateralized mortgage       obligations       |   |      | 7,014,272  |   |       |   | 16,792    |       |   |   | (253,432   | )      |   |   | 6,777,632 |   |
| Residential      mortgage backed securities                                                                                 |   |      | 54,727,033 |   |       |   | 1,930,299 |       |   |   | (594       | )      |   |   | 56,656,738 |   |
| Obligations      of state and                                                                                               |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| political      subdivisions                                                                                                 |   |      | 2,868,049  |   |       |   | 6,872     |       |   |   | (16,234    | )      |   |   | 2,858,687 |   |
|     Trust      preferred debt securities                                                                |   |      | 2,454,969  |   |       |   | -         |       |   |   | (1,173,163 | )      |   |   | 1,281,806 |   |
|     Restricted      stock                                                                               |   |      | 2,659,200  |   |       |   | -         |       |   |   | -          |   |   |   | 2,659,200 |   |
| Mutual      fund                                                                                                            |   |      | 25,000     |   |       |   | -         |       |   |   | -          |   |   |   | 25,000 |   |
|                                                                                                                        |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                        |   | $         | 92,550,857 |   |       | $      | 2,369,589 |       |   | $      | (1,443,423 | )      |   | $ | 93,477,023 |   |
|                                                                                                                        |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Held      to maturity-                                                                                                      |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| U.      S. Treasury securities and                                                                                          |   |      |       |   |       |   |      |       |   |   |       |   |
| obligations      of U.S. Government                                                                                         |   |      |       |   |       |   |      |       |   |   |       |   |
| sponsored      corporations and agencies                                                                                    |   | $         | 10,000,000 |   |       | $      | 193,800   |       |   | $      | -          |   |   | $ | 10,193,800 |   |
|     Residential      collateralized mortgage        obligations |   |      | 8,727,315  |   |       |   | 49,897    |       |   |   | (9,675     | )      |   |   | 8,767,537 |   |
| Residential      mortgage backed securities                                                                                 |   |      | 3,794,931  |   |       |   | 33,007    |       |   |   | (212       | )      |   |   | 3,827,726 |   |
| Obligations      of state and                                                                                               |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| political      subdivisions                                                                                                 |   |      | 10,516,726 |   |       |   | 75,515    |       |   |   | (93,502    | )      |   |   | 10,498,739 |   |
| Trust      preferred debt securities                                                                                        |   |      | 982,160    |   |       |   | -         |       |   |   | (635,172   | )      |   |   | 346,988 |   |
| Corporate      debt securities                                                                                              |   |      | 2,529,445  |   |       |   | -         |       |   |   | (23,856    | )      |   |   | 2,505,589 |   |
|                                                                                                                        |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                        |   | $         | 36,550,577 |   |       | $      | 352,219   |       |   | $      | (762,417   | )      |   | $ | 36,140,379 |   |

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|                                                          |   | AmortizedCost |        |   | FairValue |   |
|---------------------------------------------------------------|--------|---------------|-------------|--------|-----------|--------|
| Available      for sale-                                      |   |          |        |   |      |   |
|    Due      in one year or less                |   | $             | 8,402,324   |   |      | $      | 8,446,700 |   |
|    Due      after one year through five years  |   |          | 91,063,870  |   |      |   | 91,249,993 |   |
|    Due      after five years through ten years |   |          | 30,143,402  |   |      |   | 30,412,489 |   |
|    Due      after ten years                    |   |          | 74,253,511  |   |      |   | 74,009,668 |   |
|                                                          |   |          |        |   |      |   |   |   |
| Total                                                         |   | $             | 203,863,107 |   |      | $      | 204,118,850 |   |
|                                                          |   |          |        |   |      |   |   |   |
| Held      to maturity-                                        |   |          |        |   |      |   |   |   |
|    Due      in one year or less                |   | $             | 3,874,956   |   |      | $      | 3,952,332 |   |
|    Due      after one year through five years  |   |          | 3,107,832   |   |      |   | 3,227,191 |   |
|    Due      after five years through ten years |   |          | 5,300,104   |   |      |   | 5,472,483 |   |
|    Due      after ten years                    |   |          | 11,326,088  |   |      |   | 11,563,524 |   |
|                                                          |   |          |        |   |      |   |   |   |
| Total                                                         |   | $             | 23,608,980  |   |      | $      | 24,215,530 |   |

| 2009                                                                                       |   |                     |   |   | Less      than 12 months |   |       | 12      months or longer |   |   | Total           |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|------------|--------------------------|--------|--------|-----------------|--------|
|                                                                                       |   | Number      ofSecurities |   |   | Fair      Value          |   |       | Unrealized      Losses   |   |   | Fair      Value |   |   | Unrealized      Losses |   |   | Fair      Value |   |   | Unrealized      Losses |   |
| U.S.      Government sponsored     corporations      and agencies |   |                     | 33     |   |                     | $      | 73,177,106 |                     |   | $      | (673,252        | )      |   | $ | - |   |   | $ | - |   |   | $ | 73,177,106 |   |   | $ | (673,252 | ) |
|                                                                                       |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      collateralized mortgage     obligations          |   |                     | 5      |   |                     |   | 9,399,574  |                     |   |   | (158,696        | )      |   |   | 428,264 |   |   |   | (93,327 | ) |   |   | 9,827,838 |   |   |   | (252,023 | ) |
|                                                                                       |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      mortgage backed securities                                                |   |                     | 1      |   |                     |   | 2,885,660  |                     |   |   | (29,521         | )      |   |   | - |   |   |   | - |   |   |   | 2,885,660 |   |   |   | (29,521 | ) |
|                                                                                       |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations      of state and political     subdivisions          |   |                     | 1      |   |                     |   | 924,549    |                     |   |   | (91,212         | )      |   |   | - |   |   |   | - |   |   |   | 924,549 |   |   |   | (91,212 | ) |
|                                                                                       |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust      preferred debt securities                                                       |   |                     | 4      |   |                     |   | -          |                     |   |   | -               |   |   |   | 1,770,172 |   |   |   | (687,089 | ) |   |   | 1,770,172 |   |   |   | (687,089 | ) |
|                                                                                       |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total      temporarily impaired securities                                     |   |                     | 44     |   |                     | $      | 86,386,889 |                     |   | $      | (952,681        | )      |   | $ | 2,198,436 |   |   | $ | (780,416 | ) |   | $ | 88,585,325 |   |   | $ | (1,733,097 | ) |

----

Table of Contents

| 2008                                                                                    |   |                     |   |   | Less      than 12 months |   |       | 12      months or longer |   |   | Total           |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|------------|--------------------------|--------|--------|-----------------|--------|
|                                                                                    |   | Number      ofSecurities |   |   | Fair      Value          |   |       | Unrealized      Losses   |   |   | Fair      Value |   |   | Unrealized      Losses |   |   | Fair      Value |   |   | Unrealized      Losses |   |
| Residential      collateralized mortgage      obligations |   |                     | 18     |   |                     | $      | 3,283,040  |                     |   | $      | (15,797         | )      |   | $ | 5,245,569 |   |   | $ | (247,310 | ) |   | $ | 8,528,609 |   |   | $ | (263,107 | ) |
|                                                                                    |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      mortgage backed securities                                             |   |                     | 3      |   |                     |   | 283,264    |                     |   |   | (806            | )      |   |   | - |   |   |   | - |   |   |   | 283,264 |   |   |   | (806 | ) |
|                                                                                    |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations      of state and political    subdivisions             |   |                     | 16     |   |                     |   | 5,551,850  |                     |   |   | (109,736        | )      |   |   | - |   |   |   | - |   |   |   | 5,551,850 |   |   |   | (109,736 | ) |
|                                                                                    |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust      preferred debt securities                                                    |   |                     | 5      |   |                     |   | -          |                     |   |   |            |   |   |   | 1,628,794 |   |   |   | (1,808,335 | ) |   |   | 1,628,794 |   |   |   | (1,808,335 | ) |
|                                                                                    |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate      debt securities                                                          |   |                     | 3      |   |                     |   | 2,001,805  |                     |   |   | (23,856         | )      |   |   | - |   |   |   | - |   |   |   | 2,001,805 |   |   |   | (23,856 | ) |
|                                                                                    |   |                     |   |   |                     |   |       |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total      temporarily impaired securities                                  |   |                     | 45     |   |                     | $      | 11,119,959 |                     |   | $      | (150,195        | )      |   | $ | 6,874,363 |   |   | $ | (2,055,645 | ) |   | $ | 17,994,322 |   |   | $ | (2,205,840 | ) |

----

Table of Contents

| Pooled      Trust Preferred Security Detail |
|---------------------------------------------|
|    Security                  |    Class |   BookValue |   FairValue |  UnrealizedGain      (Loss) | Percent      ofUnderlyingCollateralPerforming | Percent      ofUnderlyingCollateralIn      Deferral | Percent      ofUnderlying      CollateralIn      Default | Moody’s/S      & P /FITCHRatings |
| PreTSL      XXV                             | B-1 | $133,054 | $133,054 | - | 69.0% | 18.4% | 12.6% | Ca/NR/CC |

----

Table of Contents

|                                |   | 2009   |        |   | 2008   |   |
|-------------------------------------|--------|--------|-------------|--------|--------|--------|
|            |   |   |        |   |   |   |
| Commercial      business            |   | $      | 57,925,392  |   |   | $      | 57,528,879 |   |
| Commercial      real estate         |   |   | 96,306,097  |   |   |   | 90,904,418 |   |
| Mortgage      warehouse lines       |   |   | 119,382,078 |   |   |   | 106,000,231 |   |
| Construction      loans             |   |   | 79,805,278  |   |   |   | 94,163,997 |   |
| Residential      real estate loans  |   |   | 10,253,895  |   |   |   | 11,078,402 |   |
| Loans      to individuals           |   |   | 15,554,027  |   |   |   | 16,797,194 |   |
| Deferred      loan fees   |   |   | 489,809     |   |   |   | 647,673 |   |
| All      other loans           |   |   | 229,159     |   |   |   | 227,622 |   |
|                                |   | $      | 379,945,735 |   |   | $      | 377,348,416 |   |

|                                 |   | 2009   |       |   | 2008   |   |
|--------------------------------------|--------|--------|------------|--------|--------|--------|
| Balance,      beginning of year      |   | $      | 3,684,764  |   |   | $      | 3,348,080 |   |
| Provision      charged to operations |   |   | 2,553,000  |   |   |   | 640,000 |   |
| Loans      charged off               |   |   | (1,740,518 | )      |   |   | (306,376) | ) |
| Recoveries      of loans charged off |   |   | 8,141      |   |   |   | 3,060 |   |
| Balance,      end of year            |   | $      | 4,505,387  |   |   | $      | 3,684,764 |   |

----

Table of Contents

|                            |   | 2009   |      |   | 2008   |   |
|---------------------------------|--------|--------|-----------|--------|--------|--------|
| Balance,      beginning of year |   | $      | 4,795,649 |   |   | $      | 4,288,296 |   |
| Loans      granted              |   |   | 68,252    |   |   |   | 1,996,042 |   |
| Repayments      of loans        |   |   | (492,862) |   |   |   | (1,488,689) |   |
|                            |   |   |      |   |   |   |   |   |
| Balance,      end of year       |   | $      | 4,371,039 |   |   | $      | 4,795,649 |   |

|                               | EstimatedUseful      Lives |   |   | 2009    |       |   | 2008   |   |
|------------------------------------|----------------------------|--------|--------|---------|------------|--------|--------|--------|
| Land                               |                       |   |   |  $ | 241,784    |   |   | $      | 241,784 |   |
| Construction      in progress      |                       |   |   |    | 2,929,011  |   |   |   | 45,734 |   |
| Building                           | 40      Years              |   |   |    | 735,579    |   |   |   | 735,579 |   |
| Leasehold      improvements        | 10      Years              |   |   |    | 2,287,324  |   |   |   | 2,225,660 |   |
| Furniture      and equipment       | 3 –      15 Years    |   |   |    | 2,907,147  |   |   |   | 2,663,791 |   |
|                               |                       |   |   |    | 9,100,845  |   |   |   | 5,912,548 |   |
| Less      Accumulated depreciation |                       |   |   |    | (4,201,754 | )      |   |   | (3,610,059 | ) |
|                               |                       |   |   | $       | 4,899,091  |   |   | $      | 2,302,489 |   |

|                          |   | 2009   |    |   | 2008   |   |
|-------------------------------|--------|--------|---------|--------|--------|--------|
| Goodwill                      |   | $      | 472,726 |   |   | $      | 472,726 |   |
| Core      deposits intangible |   |   | 173,647 |   |   |   | 210,358 |   |
| Total                         |   | $      | 646,373 |   |   | $      | 683,084 |   |

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Table of Contents

| 2010   |   | $      | 36,712  |   |
|--------|--------|--------|---------|--------|
| 2011   |   |   | 36,712  |   |
| 2012   |   |   | 36,712  |   |
| 2013   |   |   | 36,712  |   |
| 2014   |   |   | 26,799  |   |
|   |   | $      | 173,647 |   |

|                      |   | 2009   |        |   | 2008   |   |
|---------------------------|--------|--------|-------------|--------|--------|--------|
| Demand                    |   |   |        |   |   |   |
| Non-interest      bearing |   | $      | 82,473,328  |   |   | $      | 71,772,486 |   |
| Interest      bearing     |   |   | 125,529,223 |   |   |   | 82,842,413 |   |
| Savings                   |   |   | 193,369,640 |   |   |   | 83,410,405 |   |
| Time                      |   |   | 170,783,163 |   |   |   | 176,659,427 |   |
|                      |   | $      | 572,155,354 |   |   | $      | 414,684,731 |   |

| Year   |   | Amount |        |
|--------|--------|--------|-------------|
| 2010   |   | $      | 142,131,744 |   |
| 2011   |   |   | 24,566,792  |   |
| 2012   |   |   | 2,747,887   |   |
| 2013   |   |   | 546,130     |   |
| 2014   |   |   | 780,390     |   |
| 2015   |   |   | 10,220      |   |
|   |   | $      | 170,783,163 |   |

| Maturity      Range                        |   | Amount |       |
|--------------------------------------------|--------|--------|------------|
| Three      months or less                  |   | $      | 35,957,940 |   |
| Over      three months through six months  |   |   | 18,101,625 |   |
| Over      six months through twelve months |   |   | 21,651,532 |   |
| Over      twelve months                    |   |   | 11,788,850 |   |
|                                       |   | $      | 87,499,947 |   |

----

Table of Contents

|   |   | 2009   |       |
|--------|--------|--------|------------|
| 2010   |   | $      | 12,500,000 |   |
| 2017   |   |   | 10,000,000 |   |
|   |   | $      | 22,500,000 |   |

----

Table of Contents

|                                           |   | 2009   |       |    | 2008   |   |
|------------------------------------------------|--------|--------|------------|---------|--------|--------|
| Federal-                                  |   |   |       |    |   |   |
|             Current   |   | $      | 1,338,992  |    |   | $      | 1,322,618 |   |
|             Deferred  |   |   | (1,015,655 | )  |   |   | (282,481 | )  |
|                                           |   |   | 323,337    |    |   |   | 1,040,137 |   |
| State-                                    |   |   |       |    |   |   |   |   |
|             Current   |   |   | 113,560    |    |   |   | 281,374 |   |
|             Deferred  |   |   | (280,615   | )  |   |   | (82,170 | )  |
|                                           |   |   | (167,055   | )  |   |   | 199,204 |   |
|                                           |   | $      | 156,282    |    |   | $      | 1,239,341 |   |

|                                                                             |   | 2009   |     |    | 2008   |   |
|----------------------------------------------------------------------------------|--------|--------|----------|---------|--------|--------|
|                                                                             |   |
| Federal      income tax                                                     |   | $      | 923,795  |    |   | $      | 1,359,592 |   |
| Add      (deduct) effect of:                                                |   |   |     |    |   |   |   |   |
|         State income taxes net of federal income tax      effect  |   |   | (110,257 | )  |   |   | 131,475 |   |
|         Tax-exempt interest income                                |   |   | (165,462 | )  |   |   | (190,503 | )  |
|         Bank-owned life insurance                                 |   |   | (132,549 | )  |   |   | (128,809 | )  |
|         Other items, net                                          |   |   | (359,245 | )  |   |   | 67,586 |   |
| Provision      for income taxes                                             |   | $      | 156,282  |    |   | $      | 1,239,341 |   |

|                                                                                               |   | 2009    |      |    | 2008   |    |
|----------------------------------------------------------------------------------------------------|--------|---------|-----------|---------|--------|---------|
| Deferred      tax assets (liabilities):                                                       |   |    |      |    |   |    |
|             Allowance for loan losses                                     |   | $       | 1,799,452 |    |   | $       | 1,471,694 |   |
|             Employee benefits                                             |   |    | 25,782    |    |   |    | 95,861 |   |
|             Unrealized gain on securities available for      sale         |   |    | (86,953   | )  |   |    | (322,639 | )  |
|             SERP Liability                                                |   |    | 1,171,736 |    |   |    | 912,131 |   |
|             Unrealized loss on interest rate swap                              |   |    | 353,772   |    |   |    | 463,748 |   |
|         State      net operating loss carryover            |   |    | 45,319    |    |   |    | - |   |
|         Other      than temporary impairment loss          |   |    | 294,007   |    |   |    | - |   |
|         Depreciation                                       |   |    | 310,523   |    |   |    | (86,971 | ) |
|         Nonaccrual      interest                           |   |    | 249,315   |    |   |    | - |   |
|         FAS      158 pension liability                     |   |    | 258,425   |    |   |    | 304,119 |   |
|             Other                                                         |   |    | 1,048     |    |   |    | (7,443 | )  |
|                Subtotal |   |    | 4,422,426 |    |   |    | 2,830,500 |   |
|         Valuation      allowance                           |   |    | (45,319   | )       |   |    | - |   |
| Net      deferred tax assets                                                                       |   | $  | 4,377,107 |    |   | $  | 2,830,500 |   |

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Table of Contents

|                                                           |   | December      31,2009 |       |   | December      31,2008 |   |
|----------------------------------------------------------------|--------|-----------------------|------------|--------|-----------------------|--------|
| Unrealized      holding gains on securities available for sale |   | $                     | 255,744    |   |                  | $      | 926,166 |   |
| Related      income tax effect                                 |   |                  | (86,953    | )      |                  |   | (322,639 | ) |
|                                                           |   |                  | 168,791    |   |                  |   | 603,527 |   |
|                                                           |   |                  |       |   |                  |   |   |   |
| Unrealized      impairment loss on held to maturity security   |   |                  | (500,944   | )      |                  |   | - |   |
| Related      income tax effect                                 |   |                  | 170,321    |   |                  |   | - |   |
|                                                           |   |                  | (330,623   | )      |                  |   | - |   |
|                                                           |   |                  |       |   |                  |   |   |   |
| Unrealized      holding loss interest rate swap contract       |   |                  | (883,806   | )      |                  |   | (1,159,156 | ) |
| Related      income tax effect                                 |   |                  | 353,772    |   |                  |   | 463,748 |   |
|                                                           |   |                  | (530,034   | )      |                  |   | (695,408 | ) |
|                                                           |   |                  |       |   |                  |   |   |   |
| Pension      Liability                                         |   |                  | (647,228   | )      |                  |   | (761,439 | ) |
| Related      income tax effect                                 |   |                  | 258,425    |   |                  |   | 304,119 |   |
|                                                           |   |                  | (388,803   | )      |                  |   | (457,320 | ) |
|                                                           |   |                  |       |   |                  |   |   |   |
| Accumulated      other comprehensive loss                      |   | $                     | (1,080,669 | )      |                  | $      | (549,201 | ) |

|                            |   |  Net      UnrealizedGains      (Losses)On      Available forSale      Securities |     |   | Net      UnrealizedImpairment      LossOn      Held toMaturity      Security |   |     | Net      Change inFair      Value ofInterest      RateSwap      Contract |   |   | Net      ChangeRelated      toDefined      BenefitPension      Plans |   |   |  AccumulatedOtherComprehensiveIncome      (Loss) |     |
|---------------------------------|--------|---------------------------------------------------------------------------------------|----------|--------|------------------------------------------------------------------------------|--------|----------|--------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|--------|-------------------------------------------------------|----------|
| Balance,      December 31, 2007 |   | $                                                                                     | 17,683   |   |                                                                         | $      | -        |                                                                     |   | $      | (59,912                                                              | )      |   | $                                                     | (490,957 | ) |   | $ | (533,186 | ) |
|                            |   |                                                                                  |     |   |                                                                         |   |     |                                                                     |   |   |                                                                 |   |   |                                                  |     |   |   |   |   |   |
| Net      Change                 |   |                                                                                  | 585,844  |   |                                                                         |   | -        |                                                                     |   |   | (635,496                                                             | )      |   |                                                  | 33,637   |   |   |   | (16,015 | ) |
|                            |   |                                                                                  |     |   |                                                                         |   |     |                                                                     |   |   |                                                                 |   |   |                                                  |     |   |   |   |   |   |
| Balance,      December 31, 2008 |   |                                                                                  | 603,527  |   |                                                                         |   | -        |                                                                     |   |   | (695,408                                                             | )      |   |                                                  | (457,320 | ) |   |   | (549,201 | ) |
|                            |   |                                                                                  |     |   |                                                                         |   |     |                                                                     |   |   |                                                                 |   |   |                                                  |     |   |   |   |   |   |
| Net      Change                 |   |                                                                                  | (434,736 | )      |                                                                         |   | (330,623 | )                                                                        |   |   | 165,374                                                              |   |   |                                                  | 68,517   |   |   |   | (531,468 | ) |
|                            |   |                                                                                  |     |   |                                                                         |   |     |                                                                     |   |   |                                                                 |   |   |                                                  |     |   |   |   |   |   |
| Balance,      December 31, 2009 |   | $                                                                                     | 168,791  |   |                                                                         | $      | (330,623 | )                                                                        |   | $      | (530,034                                                             | )      |   | $                                                     | (388,803 | ) |   | $ | (1,080,669 | ) |

----

Table of Contents

|                                                                                                                      |   | 2009   |       |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Change      in Benefit Obligation                                                                                         |   |   |       |   |   |   |
| Liability      for pension, beginning                                                                                     |   | $      | 3,045,192  |   |   | $      | 2,551,295 |   |
| Service      cost                                                                                                         |   |   | 286,843    |   |   |   | 230,546 |   |
| Interest      cost                                                                                                        |   |   | 188,057    |   |   |   | 159,320 |   |
| Actuarial      loss                                                                                                       |   |   | 89,092     |   |   |   | 104,032 |   |
| Liability      for pension, ending                                                                                        |   | $      | 3,609,184  |   |   | $      | 3,045,192 |   |
|                                                                                                                      |   |   |       |   |   |
|                                                                                                                      |   |   |       |   |   |
| Amount      Recognized in Consolidated Balance Sheets                                                                     |   |   |       |   |   |
| Liability      for pension                                                                                                |   | $      | (3,609,184 | )      |   | $      | (3,045,192 | ) |
| Net      actuarial loss included in accumulated other comprehensive      income                                           |   |   | 330,510    |   |   |   | 355,265 |   |
| Prior      service cost included in accumulated other comprehensive      income                                           |   |   | 306,742    |   |   |   | 406,174 |   |
| Net      recognized pension expense                                                                                       |   | $      | (2,971,932 | )      |   | $      | (2,283,753 | ) |
|                                                                                                                      |   |   |       |   |   |   |   |   |
| Information      for pension plans with an accumulated         benefit obligation in excess of plan assets |   |   |       |   |
| Projected      benefit obligation                                                                                         |   | $      | 3,609,184  |   |   | $      | 3,045,192 |   |
| Accumulated      benefit obligation                                                                                       |   |   | 3,393,837  |   |   |   | 2,754,427 |   |
|                                                                                                                      |   |   |       |   |   |   |   |   |
|  Components      of Net Periodic Benefit Cost                                                                        |   | 2009   |       |   | 2008   |   |
| Service      cost                                                                                                         |   | $      | 286,843    |   |   | $      | 230,546 |   |
| Interest      cost                                                                                                        |   |   | 188,057    |   |   |   | 159,320 |   |
| Amortization      of prior service cost                                                                                   |   |   | 99,432     |   |   |   | 99,432 |   |
| Recognized      net actuarial gain                                                                                        |   |   | 113,847    |   |   |   | 61,502 |   |
| Net      periodic benefit expense                                                                                         |   | $      | 688,179    |   |   | $      | 550,800 |   |

----

Table of Contents

| Weighted-Average      Assumptions, December 31 |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Discount      Rate                             |   |   | 6.00%  |   |   |   | 6.00% |   |
| Salary      Scale                              |   |   | 4.00%  |   |   |   | 4.00% |   |

| Projected      Annual Benefit Payments |   |
|----------------------------------------|--------|
| 2010                                   |   | $ | 699,831 |   |
| 2011                                   |   | $ | 268,840 |   |
| 2012                                   |   | $ | 268,840 |   |
| 2013                                   |   | $ | 328,503 |   |
| 2014                                   |   | $ | 328,503 |   |
| 2015-2019                              |   | $ | 1,839,588 |   |

|  Stock Options              |   | Shares |    |   | WeightedAverageExercise      Price |   |   | WeightedAverageRemainingContractualTerm      (years) |   | AggregateIntrinsicValue |   |
|---------------------------------------|--------|--------|---------|--------|------------------------------------|--------|--------|------------------------------------------------------|--------|-------------------------|--------|
| Outstanding      at January 1, 2008   |   |   | 172,914 |   |                               | $      | 9.45   |                                                 |   |                    |   |   |   |
| Granted                               |   |   | -       |   |                               |   | -      |                                                 |   |                    |   |   |   |
| Exercised                             |   |   | (671    | )      |                               |   | 3.09   |                                                 |   |                    |   |   |   |
| Forfeited                             |   |   | -       |   |                               |   | -      |                                                 |   |                    |   |   |   |
| Expired                               |   |   | -       |   |                               |   | -      |                                                 |   |                    |   |   |   |
| Outstanding      at December 31, 2008 |   |   | 172,243 |   |                               |   | 9.45   |                                                 |   |                    | 4.3    |   |   | $ | 342,658 |   |
| Granted                               |   |   | 38,346  |   |                               |   | 8.64   |                                                 |   |                    |   |   |   |   |   |   |
| Exercised                             |   |   | (55,879 | )      |                               |   | 4.48   |                                                 |   |                    |   |   |   |   |   |   |
| Forfeited                             |   |   | -       |   |                               |   | -      |                                                 |   |                    |   |   |   |   |   |   |
| Expired                               |   |   | -       |   |                               |   | -      |                                                 |   |                    |   |   |   |   |   |   |
| Outstanding      at December 31, 2009 |   |   | 154,710 |   |                               | $      | 11.04  |                                                 |   |                    | 6.1    |   |   | $ | 11,274 |   |
|                                  |   |   |    |   |                               |   |   |                                                 |   |                    |   |   |   |   |   |   |
| Exercisable      at December 31, 2009 |   |   | 112,790 |   |                               | $      | 10.82  |                                                 |   |                    | 5.1    |   |   | $ | 11,274 |   |

----

Table of Contents

|                  |   |   | Outstanding      Options |    |   | Exercisable      Options  |   |
|-----------------------|--------|--------|--------------------------|---------|--------|---------------------------|--------|
| Exercise Price Range  |   |   | Number                   |    |   | Average      Life inYears |   |   | Average      ExercisePrice |   |   | Number |   |   | Average      Life inYears |   |   | Average      ExercisePrice |   |
| $3.17      to $6.58   |   |   |                     | 22,147  |   |                      |   | 1.8 |   |   | $ | 5.61 |   |   |   | 22,147 |   |   |   | 1.8 |   |   | $ | 5.61 |   |
| $7.86      to $12.44  |   |   |                     | 72,491  |   |                      |   | 7.5 |   |   | $ | 9.71 |   |   |   | 36,015 |   |   |   | 5.8 |   |   | $ | 10.17 |   |
| $13.32      to $15.94 |   |   |                     | 60,072  |   |                      |   | 6.1 |   |   | $ | 14.70 |   |   |   | 54,628 |   |   |   | 6.0 |   |   | $ | 14.68 |   |
|                  |   |   |                     | 154,710 |   |                      |   | 6.1 |   |   | $ | 11.04 |   |   |   | 112,790 |   |   |   | 5.1 |   |   | $ | 10.82 |   |

|                               |   | January      2009 |   |   | August      2009 |   |
|------------------------------------|--------|-------------------|--------|--------|------------------|--------|
| Number      of options granted     |   |              | 18,080 |   |             |   | 20,266 |   |
| Fair      value of options granted |   | $                 | 3.26   |   |             | $      | 2.89 |   |
| Risk-free      rate of return      |   |              | 1.60%  |   |             |   | 2.57% |   |
| Expected      option life in years |   |              | 7      |   |             |   | 7 |   |
| Expected      volatility           |   |              | 27.58% |   |             |   | 27.58% |   |
| Expected      dividends (1)        |   |              | -      |   |             |   | - |   |

|   Nonvested      Shares   |   | Number      ofShares |    |   | Average      Grant-DateFair      Value |   |
|-------------------------------------|--------|----------------------|---------|--------|----------------------------------------|--------|
| Nonvested      at January 1, 2008   |   |                 | 52,913  |   |                                   | $      | 13.92 |   |
|    Granted           |   |                 | -       |   |                                   |   | - |   |
|    Vested            |   |                 | (20,919 | )      |                                   |   | 13.65 |   |
|    Forfeited         |   |                 | -       |   |                                   |   | - |   |
| Nonvested      at December 31, 2008 |   |                 | 31,994  |   |                                   |   | 14.10 |   |
|    Granted           |   |                 | 59,598  |   |                                   |   | 8.51 |   |
|    Exercised         |   |                 | -       |   |                                   |   | - |   |
|    Vested            |   |                 | (15,822 | )      |                                   |   | 13.59 |   |
|    Forfeited         |   |                 | -       |   |                                   |   | - |   |
| Nonvested      at December 31, 2009 |   |                 | 75,769  |   |                                   | $      | 9.53 |   |

----

Table of Contents

| 2010       |   | $      | 862,842   |   |
|------------|--------|--------|-----------|--------|
| 2011       |   |   | 886,711   |   |
| 2012       |   |   | 914,336   |   |
| 2013       |   |   | 937,037   |   |
| 2014       |   |   | 698,628   |   |
| Thereafter |   |   | 1,914,507 |   |
|       |   | $      | 6,214,061 |   |

----

Table of Contents

|                                                                                            |   | 2009   |      |   | 2008   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                            |   |   |      |   |   |   |
| Equipment      expense                                                                     |   | $      | 631,677   |   |   | $      | 626,467 |   |
| Advertising                                                                                |   |   | 130,393   |   |   |   | 246,879 |   |
| Regulatory,      professional and other     consulting      fees  |   |   | 1,006,830 |   |   |   | 861,006 |   |
| Office      expense                                                                        |   |   | 572,477   |   |   |   | 649,461 |   |
| Directors’      fees                                                                      |   |   | 105,700   |   |   |   | 108,000 |   |
| Other      real estate owned expenses, net                                                      |   |   | 123,795   |   |   |   | 120,688 |   |
| All      other expenses                                                                    |   |   | 1,130,972 |   |   |   | 1,094,192 |   |
|                                                                                            |   | $      | 3,701,844 |   |   | $      | 3,706,693 |   |

----

Table of Contents

|                                                             |   |   |       |   |                   |   |   |                   |   |   |       |   |   | To      Be Well Capitalized |   |
|------------------------------------------------------------------|--------|--------|------------|--------|------------------------|--------|--------|------------------------|--------|--------|------------|--------|--------|-----------------------------|--------|
|                                                             |   |   |       |   |                   |   |   |                   |   |   |       |   |   | Under      Prompt           |   |
|                                                             |   |   |       |   |                   |   |   | For      Capital       |   |   | Corrective |   |
|                                                             |   | Actual |       |   | Adequacy      Purposes |   |   | Action      Provisions |   |
|                                                             |   | Amount |       |   | Ratio                  |   |   | Amount                 |   |   | Ratio      |   |   | Amount                      |   |   | Ratio |   |
| As of December 31, 2009      -                                   |   |   |       |   |                   |   |   |                   |   |   |       |   |   |                        |   |   |   |   |
| Company                                                     |   |   |       |   |                   |   |   |                   |   |   |       |   |   |                        |   |   |   |   |
|         Total Capital (to Risk Weighted Assets)   |   | $      | 79,091,277 |   |                   |   | 17.23  | %                 |   | $      | 36,713,599 |   |   |                        | >8  | %  |   |   | N/A |   |   |   |  N/A |   |
|         Tier I Capital (to Risk Weighted Assets)  |   |   | 74,585,890 |   |                   |   | 16.25  | %                 |   |   | 18,356,800 |   |   |                        | >4  | %  |   |   | N/A |   |   |   | N/A |   |
|         Tier I Capital (to Average Assets)        |   |   | 74,585,890 |   |                   |   | 10.99  | %                 |   |   | 27,143,523 |   |   |                        | >4  | %  |   |   | N/A |   |   |   | N/A |   |
| Bank                                                        |   |   |       |   |                   |   |   |                   |   |   |       |   |   |                        |   |   |   |   |   |   |   |   |   |   |
|         Total Capital (to Risk Weighted Assets)   |   | $      | 77,370,821 |   |                   |   | 16.90  | %                 |   | $      | 36,633,760 |   |   |                        | >8  | %  |   | $ | 45,792,200 |   |   |   | >10 | % |
|         Tier I Capital (to Risk Weighted Assets)  |   |   | 72,865,434 |   |                   |   | 15.91  | %                 |   |   | 18,316,040 |   |   |                        | >4  | %  |   |   | 27,475,320 |   |   |   | >6 | % |
|         Tier I Capital (to Average Assets)        |   |   | 72,865,434 |   |                   |   | 10.78  | %                 |   |   | 27,043,305 |   |   |                        | >4  | %  |   |   | 33,804,131 |   |   |   | >5 | % |
|                                                             |   |
| As      of December 31, 2008                                     |   |   |       |   |                   |   |   |                   |   |   |       |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Company                                                     |   |   |       |   |                   |   |   |                   |   |   |       |   |   |                        |   |   |   |   |   |   |   |   |   |   |
|         Total Capital (to Risk Weighted Assets)   |   | $      | 76,475,124 |   |                   |   | 17.90  | %                 |   | $      | 34,184,717 |   |   |                        | >8  | %  |   |   | N/A |   |   |   | N/A |   |
|         Tier I Capital (to Risk Weighted Assets)  |   |   | 72,790,360 |   |                   |   | 17.03  | %                 |   |   | 17,092,359 |   |   |                        | >4  | %  |   |   | N/A |   |   |   | N/A |   |
|         Tier I Capital (to Average Assets)        |   |   | 72,790,360 |   |                   |   | 14.05  | %                 |   |   | 20,715,932 |   |   |                        | >4  | %  |   |   | N/A |   |   |   | N/A |   |
| Bank                                                        |   |   |       |   |                   |   |   |                   |   |   |       |   |   |                        |   |   |   |   |   |   |   |   |   |   |
|         Total Capital (to Risk Weighted Assets)   |   | $      | 75,316,536 |   |                   |   | 17.67  | %                 |   | $      | 34,096,080 |   |   |                        | >8  | %  |   | $ | 42,620,100 |   |   |   | >10 | %  |
|         Tier I Capital (to Risk Weighted Assets)  |   |   | 71,631,772 |   |                   |   | 16.81  | %                 |   |   | 17,048,040 |   |   |                        | >4  | %  |   |   | 25,572,060 |   |   |   | >6 | %  |
|         Tier I Capital (to Average Assets)        |   |   | 71,631,772 |   |                   |   | 13.88  | %                 |   |   | 20,636,440 |   |   |                        | >4  | %  |   |   | 25,795,550 |   |   |   | >5 | %  |

----

Table of Contents

| Level 1: | Unadjusted      quoted prices in active markets that are accessible at the measurement      date for identical, unrestricted assets or  liabilities. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| Level 2: | Quoted      prices in markets that are not active, or inputs that are observable      either directly or indirectly, for substantially the full term of the      asset or liability. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Prices      or valuation techniques that require inputs that are both significant to      the fair value measurement and unobservable (i.e., supported with little      or no market activity). |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                           |   | Level      1 Inputs |   |   | Level      2 Inputs |   |        | Level      3 Inputs |   |   | Total      Fair Value |   |
|------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|-------------|---------------------|--------|--------|-----------------------|--------|
| December      31, 2009:                        |   |                |   |   |                |   |        |                |   |   |                  |   |
|   Securities      available for sale |   |                | -      |   |                | $      | 204,118,850 |                |   |   | -                     |   |   | $ | 204,118,850 |   |
|   Derivative      liabilities        |   |                | -      |   |                |   | (883,806    | )                   |   |   | -                     |   |   |   | (883,806 | ) |
|                                           |   |                |   |   |                |   |        |                |   |   |                  |   |   |   |   |   |
| December      31, 2008:                        |   |                |   |   |                |   |        |                |   |   |                  |   |   |   |   |   |
|   Securities      available for sale |   |                | -      |   |                | $      | 93,477,023  |                |   |   | -                     |   |   | $ | 93,477,023 |   |
|   Derivative      liabilities        |   |                | -      |   |                |   | (1,159,156  | )                   |   |   | -                     |   |   |   | (1,159,156 | ) |

|                           |   | Level      1 Inputs |   |   | Level      2 Inputs |   |    | Level      3 Inputs |   |   | Total      Fair Value |   |
|--------------------------------|--------|---------------------|--------|--------|---------------------|--------|---------|---------------------|--------|--------|-----------------------|--------|
| December      31, 2009:        |   |                |   |   |                |   |    |                |   |   |                  |   |
| Impaired      loans            |   |                | -      |   |                |   | -       |                |   | $      | 1,116,129             |   |   | $ | 1,116,129 |   |
| Other      real estate owned   |   |                | -      |   |                |   | -       |                |   |   | 1,362,621             |   |   |   | 1,362,621 |   |
| Security      held to maturity |   |                | -      |   |                |   | 133,054 |                |   |   | -                     |   |   |   | 133,054 |   |
|                           |   |                |   |   |                |   |    |                |   |   |                  |   |   |   |   |   |
| December      31, 2008:        |   |                |   |   |                |   |    |                |   |   |                  |   |   |   |   |   |
| Impaired      loans            |   |                | -      |   |                |   | -       |                |   | $      | 1,427,673             |   |   | $ | 1,427,673 |   |
| Other      real estate owned   |   |                | -      |   |                |   | -       |                |   |   | 4,296,536             |   |   |   | 4,296,536 |   |

----

Table of Contents

|                                          |   | December      31, 2009 |         |    | December      31, 2008 |   |
|-----------------------------------------------|--------|------------------------|--------------|---------|------------------------|--------|
|                                          |   | Carrying               |         |    | Estimated              |   |   | Carrying |   |   | Estimated |   |
|                                          |   | Value                  |         |    | Fair      Value        |   |   | Value |   |   | Fair      Value |   |
|                                          |   |                   |         |    |                   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                |   | $                      | 25,854,285   |    |                   | $      | 25,854,285 |   |   | $ | 14,333,119 |   |   | $ | 14,333,119 |   |
| Securities      available for sale       |   |                   | 204,118,850  |    |                   |   | 204,118,850 |   |   |   | 93,477,023 |   |   |   | 93,477,023 |   |
| Securities      held to maturity         |   |                   | 23,608,980   |    |                   |   | 24,215,530 |   |   |   | 36,550,557 |   |   |   | 36,140,379 |   |
| Loans      held for sale                 |   |                   | 21,514,785   |    |                   |   | 21,514,785 |   |   |   | 5,702,082 |   |   |   | 5,702,082 |   |
| Gross      loans                         |   |                   | 379,945,735  |    |                   |   | 379,617,000 |   |   |   | 377,348,416 |   |   |   | 382,020,000 |   |
| Accrued      interest receivable              |   |                   | 2,274,087    |    |                   |   | 2,274,087 |   |   |   | 2,192,601 |   |   |   | 2,192,601 |   |
| Deposits                                 |   |                   | (572,155,354 | )  |                   |   | (573,596,000 | )  |   |   | (414,684,731 | )  |   |   | (416,809,000 | )  |
| Other      borrowings                    |   |                   | (22,500,000  | )  |                   |   | (25,321,000 | )  |   |   | (51,500,000 | )  |   |   | (54,486,000 | )  |
| Redeemable      subordinated debentures  |   |                   | (18,557,000  | )  |                   |   | (18,557,000 | )  |   |   | (18,557,000 | )  |   |   | (18,583,000 | )  |
| Interest      rate swap contract         |   |                   | (883,806     | )  |                   |   | (883,806 | )  |   |   | (1,159,156 | ) |   |   | (1,159,156 | ) |
| Accrued      interest payable                 |   |                   | (1,757,151   | )       |                   |   | (1,757,151 | ) |   |   | (1,984,102 | ) |   |   | (1,984,102 | ) |

----

Table of Contents

|                                                                                            |   | December      31, 2009 |       |   | December      31, 2008 |    |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|-----------------------------|---------|
| Assets:                                                                                         |   |                        |       |   |                        |    |
|   Cash                                                                                |   | $                           | 690,968    |   |                        | $       | 658,093 |   |
|   Investment      securities available for sale                                       |   |                        | 557,000    |   |                        |    | 557,000 |   |
|   Investment      in subsidiaries                                                     |   |                        | 73,681,106 |   |                        |    | 71,898,891 |   |
|   Other      assets                                                                   |   |                        | 1,028,979  |   |                        |    | 1,062,668 |   |
|        Total      Assets                                     |   | $                           | 75,958,053 |   |                        | $       | 74,176,652 |   |
|                                                                                            |   |                        |       |   |                        |    |   |   |
| Liabilities      And Shareholders’ Equity                                                 |   |                        |       |   |                        |    |   |   |
|   Subordinated      debentures                                                        |   |  $                     | 18,557,000 |   |                        |  $ | 18,557,000 |   |
|   Shareholders’      equity                                                     |   |                        | 57,401,053 |   |                        |    | 55,619,652 |   |
|        Total      Liabilities and Shareholders’ Equity |   | $                           | 75,958,053 |   |                        | $       | 74,176,652 |   |

|                                                                                        |   | Year      ended December 31, |       |
|---------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                        |   | 2009                         |       |   | 2008 |   |
| Income:                                                                                     |   |                         |       |   |   |   |
|   Interest                                                                        |   | $                            | 15,796     |   |   | $ | 36,347 |   |
|         Total      Income                           |   |                         | 15,796     |   |   |   | 36,347 |   |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Expense:                                                                                    |   |                         |       |   |   |   |   |   |
|   Interest                                                                        |   |                         | 1,087,748  |   |   |   | 1,096,756 |   |
|        Total      Expense                                |   |                         | 1,087,748  |   |   |   | 1,096,756 |   |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Loss      before income taxes and equity in undistributed income of  Subsidiaries |   |                         | (1,071,952 | ) |   |   | (1,060,409 | ) |
| Federal      income tax benefit                                                             |   |                         | (364,661   | ) |   |   | (352,152 | ) |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Loss      before equity in undistributed income of subsidiaries                             |   |                         | (706,781   | ) |   |   | (708,257 | ) |
| Equity      in undistributed income of subsidiaries                                         |   |                         | 3,268,052  |   |   |   | 3,467,715 |   |
|        Net      Income                                   |   | $                            | 2,560,761  |   |   | $ | 2,759,458 |   |

----

Table of Contents

|                                                            |   | Year      ended December 31, |       |
|-----------------------------------------------------------------|--------|------------------------------|------------|
|                                                            |   | 2009                         |       |   | 2008 |   |
| Operating      Activities:                                      |   |                         |       |   |   |   |
| Net      Income                                                 |   | $                            | 2,560,761  |   |   | $ | 2,759,457 |   |
| Adjustments:                                                    |   |                         |       |   |   |   |   |   |
|   Decrease      in other assets                       |   |                         | 33,689     |   |   |   | 43,760 |   |
|   Equity      in undistributed income of subsidiaries |   |                         | (3,268,052 | ) |   |   | (3,467,714 | ) |
| Net      cash used in operating activities                      |   |                         | (673,602   | ) |   |   | (664,497 | ) |
|                                                            |   |                         |       |   |   |   |   |   |
| Investing      Activities:                                      |   |                         |       |   |   |   |   |   |
|   Investment      in subsidiaries                     |   |                         | -          |   |   |   | (12,000,000 | ) |
|   Repayment      of investment in subsidiaries        |   |                         | 967,985    |   |   |   | 273,382 |   |
| Net      cash provided by (used in) investing activities        |   |                         | 967,985    |   |   |   | (11,726,618 | ) |
|                                                            |   |                         |       |   |   |   |   |   |
| Financing      Activities:                                      |   |                         |       |   |   |   |   |   |
|   Issuance      of common stock, net                  |   |                         | 353,625    |   |   |   | 230,909 |   |
|   Purchase      of treasury stock                     |   |                         | (78,466    | ) |   |   | (70,527 | ) |
|   Issuance      of preferred stock and warrants, net  |   |                         | -          |   |   |   | 11,950,000 |   |
|   Dividend      paid on preferred stock               |   |                         | (536,667   | ) |   |   | - |   |
| Net      cash (used in) provided by financing activities        |   |                         | (261,508   | ) |   |   | 12,110,382 |   |
|                                                            |   |                         |       |   |   |   |   |   |
| Net      increase (decrease) in cash                            |   |                         | 32,875     |   |   |   | (280,733 | ) |
| Cash      at beginning of year                                  |   |                         | 658,093    |   |   |   | 938,826 |   |
| Cash      at end of year                                        |   | $                            | 690,968    |   |   | $ | 658,093 |   |

----

Table of Contents

|                                                                       |   | 2009         |      |
|----------------------------------------------------------------------------|--------|--------------|-----------|
|                                                                       |   | Dec.      31 |      |   | Sept.      30 |   |   | June      30 |   |   | March      31 |   |
| Summary      of Operations                                                 |   |         |      |   |   |   |   |   |   |   |   |   |
| Interest      income                                                       |   | $            | 7,663,197 |   |   | $ | 7,467,175 |   |   | $ | 7,591,339 |   |   | $ | 7,414,405 |   |
| Interest      expense                                                      |   |         | 2,851,147 |   |   |   | 3,117,646 |   |   |   | 3,072,139 |   |   |   | 3,214,416 |   |
|    Net      interest income                                 |   |         | 4,812,050 |   |   |   | 4,349,529 |   |   |   | 4,519,200 |   |   |   | 4,199,989 |   |
| Provision      for loan losses                                             |   |         | 1,260,000 |   |   |   | 505,000 |   |   |   | 325,000 |   |   |   | 463,000 |   |
|    Net      interest income after provision                 |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          for      loan losses |   |         | 3,552,050 |   |   |   | 3,844,529 |   |   |   | 4,194,200 |   |   |   | 3,736,989 |   |
| Non-interest      income                                                   |   |         | 1,482,026 |   |   |   | 1,233,197 |   |   |   | 942,801 |   |   |   | 847,052 |   |
| Non-interest      expense                                                  |   |         | 3,953,516 |   |   |   | 4,350,106 |   |   |   | 4,791,566 |   |   |   | 4,020,613 |   |
|    Income      before income taxes                          |   |         | 1,080,560 |   |   |   | 727,620 |   |   |   | 345,435 |   |   |   | 563,428 |   |
| Income      taxes (benefit)                                                |   |         | 152,333   |   |   |   | 106,386 |   |   |   | (189,175 | )  |   |   | 86,738 |   |
|    Net  income                                    |   | $            | 928,227   |   |   | $ | 621,234 |   |   | $ | 534,610 |   |   | $ | 476,690 |   |
|                                                                       |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share :                                                |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                    |   | $            | 0.16      |   |   | $ | 0.10 |   |   | $ | 0.08 |   |   | $ | 0.07 |   |
|    Diluted                                                  |   | $            | 0.16      |   |   | $ | 0.10 |   |   | $ | 0.08 |   |   | $ | 0.07 |   |
|                                                                       |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                       |   | 2008         |      |
|----------------------------------------------------------------------------|--------|--------------|-----------|
|                                                                       |   | Dec.      31 |      |   | Sept.      30 |   |   | June      30 |   |   | March      31 |   |
| Summary      of Operations                                                 |   |         |      |   |   |   |   |   |   |   |   |   |
| Interest      income                                                       |   | $            | 7,371,872 |   |   | $ | 7,389,253 |   |   | $ | 7,192,130 |   |   | $ | 7,167,056 |   |
| Interest      expense                                                      |   |         | 3,185,601 |   |   |   | 3,201,563 |   |   |   | 3,181,357 |   |   |   | 3,163,926 |   |
|    Net      interest income                                 |   |         | 4,186,271 |   |   |   | 4,187,690 |   |   |   | 4,010,773 |   |   |   | 4,003,130 |   |
| Provision      for loan losses                                             |   |         | 105,000   |   |   |   | 175,000 |   |   |   | 195,000 |   |   |   | 165,000 |   |
|    Net      interest income after provision                 |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          For      loan losses |   |         | 4,081,271 |   |   |   | 4,012,690 |   |   |   | 3,815,773 |   |   |   | 3,838,130 |   |
| Non-interest      income                                                   |   |         | 731,821   |   |   |   | 956,774 |   |   |   | 804,904 |   |   |   | 786,377 |   |
| Non-interest      expense                                                  |   |         | 4,088,623 |   |   |   | 3,908,826 |   |   |   | 3,617,142 |   |   |   | 3,414,350 |   |
|    Income      before income taxes                          |   |         | 724,469   |   |   |   | 1,060,638 |   |   |   | 1,003,535 |   |   |   | 1,210,157 |   |
| Income      taxes                                                          |   |         | 267,448   |   |   |   | 278,244 |   |   |   | 285,689 |   |   |   | 407,960 |   |
|    Net  income                                    |   | $            | 457,021   |   |   | $ | 782,394 |   |   | $ | 717,846 |   |   | $ | 802,197 |   |
|                                                                       |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share :                                                |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                    |   | $            | 0.10      |   |   | $ | 0.18 |   |   | $ | 0.16 |   |   | $ | 0.18 |   |
|    Diluted                                                  |   | $            | 0.10      |   |   | $ | 0.17 |   |   | $ | 0.16 |   |   | $ | 0.18 |   |
|                                                                       |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

|  Maturity     |  Hedged Liability          | NotionalAmounts | Swap      FixedInterest Rates | Swap      VariableInterest Rates             |
|--------------------|---------------------------------|-----------------|-------------------------------|----------------------------------------------|
|               |                            |            |                          |                                         |
| June      15, 2011 | Trust      Preferred Securities | $18,000,000     | 5.87%                         | 3      month LIBOR plus165      basis points |

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Table of Contents

SIGNATURES

|                                 | 1st      CONSTITUTION BANCORP |                                       |
|--------------------------------------|-------------------------------|--------------------------------------------|
|                                 |                          |                                       |   |
|                                 |                          |                                       |   |
| Date:  March      26, 2010 | By:                           | /s/ ROBERT      F. MANGANO            |   |
|                                 |                          | Robert      F. Mangano                     |   |
|                                 |                          | President      and Chief Executive Officer |   |
|                                 |                          | (Principal      Executive Officer)         |   |

| Signature                                                 |   | Capacity                                                           |   | Date                |
|-----------------------------------------------------------|--------|--------------------------------------------------------------------|--------|---------------------|
|  /s/      ROBERT F. MANGANO                          |   | President,      Chief Executive Officer and Director               |   | March      26, 2010 |
| Robert      F. Mangano /s/      CHARLES S. CROW, III |   | (Principal      Executive Officer) Chairman      of the Board |   | March      26, 2010 |
| Charles      S. Crow, III /s/      DAVID C. REED     |   | Director                                                           |   | March      26, 2010 |
| David      C. Reed /s/      WILLIAM M. RUE           |   | Director                                                           |   | March      26, 2010 |
| William      M. Rue /s/      FRANK E. WALSH, III     |   | Director                                                           |   | March      26, 2010 |
| Frank      E. Walsh, III /s/      JOSEPH M. REARDON  |   | Senior      Vice President and Treasurer                           |   | March      26, 2010 |
| Joseph      M. Reardon                               |   | (Principal      Accounting and Financial Officer)                  |   |                |

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Table of Contents

| Exhibit No. |          | Description |
|-------------|---------------|-------------|
|        |          |        |   |
| 3           | (i)(A)        |        | Certificate      of Incorporation of the Company (conformed copy) (incorporated by      reference to Exhibit 3(i)(A) to the Company’s Form 10-K filed with the SEC      on March 27, 2009) |
|        |          |        |   |
| 3           | (i)(B)        |        | Certificate      of Amendment to the Certificate of Incorporation increasing the number of      shares designated as Series A Junior Participating Preferred Stock      (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed      with the SEC on December 23, 2008) |
|        |          |        |   |
| 3           | (i)(C)        |        | Certificate      of Amendment to the Certificate of Incorporation establishing the terms of      the Fixed Rate Cumulative Perpetual Preferred Stock, Series B      (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K filed      with the SEC on December 23, 2008) |
|        |          |        |   |
| 3           | (ii)(A)  |        | Bylaws      of the Company (conformed copy) (incorporated by reference to Exhibit      3(ii)(A) to the Company’s Form 8-K filed with the SEC on October 22,      2007) |
|        |          |        |   |
| 3           | (ii)(B)       |        | Amendment      No. 2 to By-laws of the Company (incorporated by reference to Exhibit      3(ii)(B) to the Company’s Form 8-K filed with the SEC on October 22,      2007) |
|        |          |        |   |
| 4.1         |          |        | Specimen      Share of Common Stock (incorporated by reference to Exhibit 4.1 to the      Company’s Form 10-KSB (SEC File No. 000-32891) filed with the SEC on March      22, 2002) |
|        |          |        |   |
| 4.2         |          |        | Amended      and Restated Declaration of Trust of 1st Constitution Capital Trust I      dated as of April 10, 2002 among the Registrant, as sponsor, Wilmington      Trust Company, as Delaware and institutional trustee, and the      Administrators named therein (incorporated by reference to Exhibit 4.2 to      the Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on      May 8, 2002) |
|        |          |        |   |
| 4.3         |          |        | Indenture      dated as of April 10, 2002 between the Registrant, as issuer, and      Wilmington Trust Company, as trustee, relating to the Floating Rate Junior      Subordinated Debt Securities due 2032 (incorporated by reference to      Exhibit 4.3 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed      with the SEC on May 8, 2002) |
|        |          |        |   |
| 4.4         |          |        | Guarantee      Agreement dated as of April 10, 2002 between the Registrant and the      Wilmington Trust Company, as guarantee trustee (incorporated by reference      to Exhibit 4.4 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed      with the SEC on May 8, 2002) |
|        |          |        |   |
| 4.5         |          |        | Rights      Agreement, dated as of March 18, 2004, between 1st Constitution Bancorp      and Registrar and Transfer Company, as Rights Agent, (incorporated by      reference to Exhibit 4.5 to the Company’s Form 8-A12G (SEC File No.      000-32891) filed with the SEC on March 18, 2004) |
|        |          |        |   |
| 4.6         |          |        | Warrant,      dated December 23, 2008, to purchase shares of 1st Constitution Bancorp      common stock (incorporated by reference to Exhibit 3.3 to the Company’s      Form 8-K filed with the SEC on December 23, 2008) |
|        |          |        |   |
| 10.1        |          | #           | 1st      Constitution Bancorp Supplemental Executive Retirement Plan, dated as of      October 1, 2002 (Incorporated by reference to Exhibit 10.1 to the      Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on      November 13, 2002) |

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| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |   |
| 10.2        |   | #           | Amended      and Restated 1st Constitution Bancorp Directors’ Insurance Plan, effective      as of June 16, 2005 (incorporated by reference to Exhibit No. 10 to the      Company’s Form 8-K filed with the SEC on March 24,2006) |
|        |   |        |   |
| 10.3        |   | #           | 1st      Constitution Bancorp Form of Executive Life Insurance Agreement      (Incorporated by reference to Exhibit 10.4 to the Company’s Form 10-QSB      (SEC File No. 000-32891) filed with the SEC on November 13,      2002) |
|        |   |        |   |
| 10.4        |   | #           | 2000      Employee Stock Option and Restricted Stock Plan (incorporated by reference      to Exhibit No. 6.3 to the Company’s Form 10-SB (SEC File No. 000-32891)      filed with the SEC on June 15, 2001) |
|        |   |        |   |
| 10.5        |   | #           | Directors      Stock Option and Restricted Stock Plan (incorporated by reference to      Exhibit No. 6.4 to the Company’s Form 10-SB (SEC File No. 000-32891) filed      with the SEC on June 15, 2001) |
|        |   |        |   |
| 10.6        |   | #           | Employment      Agreement between the Company and Robert F. Mangano dated April 22, 1999      (incorporated by reference to Exhibit No. 6.5 to the Company’s Form 10-SB      (SEC File No. 000-32891) filed with the SEC on June 15,    2001) |
|        |   |        |   |
| 10.7        |   | #           | Amendment      No. 1 to 1st Constitution Bancorp Supplemental Executive Retirement Plan,      effective January 1, 2004 (incorporated by reference to Exhibit 10.12 to      the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on      August 11, 2004) |
|        |   |        |   |
| 10.8        |   | #           | Change      of Control Agreement, effective as of April 1, 2004, by and between the      Company and Joseph M. Reardon (incorporated by reference to Exhibit 10.13      to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on      August 11, 2004) |
|        |   |        |   |
| 10.9        |   | #           | Form      of Stock Option Agreement under the 1st Constitution      Bancorp  Employee Stock Option and Restricted Stock Plan      (incorporated by reference to Exhibit 10.14 to the Company’s Form 8-K (SEC      File No. 000-32891) filed with the SEC on December 22,    2004) |
|        |   |        |   |
| 10.10       |   | #           | Form      of Restricted Stock Agreement under the 1st Constitution      Bancorp  Employee Stock Option and Restricted Stock Plan      (incorporated by reference to Exhibit 10.15 to the Company’s Form 8-K (SEC      File No. 000-32891) filed with the SEC on December 22,    2004) |
|        |   |        |   |
| 10.11       |   | #           | Employment      Agreement between the Company and Robert F. Mangano dated February 22,      2005 (incorporated by reference to Exhibit No. 10.16 to the Company’s Form      8-K (SEC File No. 000-32891) filed with the SEC on February 24,      2005) |
|        |   |        |   |
| 10.12       |   | #           | The      1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by      reference to Appendix A of the Company's proxy statement filed with the      SEC on April 15, 2005) |
|        |   |        |   |
| 10.13       |   | #           | Form      of Restricted Stock Agreement under the 1st Constitution Bancorp 2005      Equity Incentive Plan (incorporated by reference to Exhibit 10.18 to the      Company’s Form 10-Q filed with the SEC on August 8,  2005) |
|        |   |        |   |
| 10.14       |   | #           | Form      of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp      2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.19 to      the Company’s Form 10-Q filed with the SEC on August 8,    2005) |

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| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |   |
| 10.15       |   | #           | Form      of Incentive Stock Option Agreement under the 1st Constitution Bancorp      2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.20 to      the Company’s Form 10-Q filed with the SEC on August 8,    2005) |
|        |   |        |   |
| 10.16       |   | #           | 1st      Constitution Bancorp 2006 Directors Stock Plan (incorporated by reference      to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on May 19,      2006) |
|        |   |        |   |
| 10.17       |   | #           | Form      of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp      2006 Directors Stock Plan (incorporated by reference to Exhibit 10.2 to      the Company’s Form 8-K filed with the SEC on May 19,  2006) |
|        |   |        |   |
| 10.18       |   | #           | Form      of Restricted Stock Agreement under the 1st Constitution Bancorp 2006      Directors Stock Plan (incorporated by reference to Exhibit 10.3 to the      Company’s Form 8-K filed with the SEC on May 19, 2006) |
|        |   |        |   |
| 10.19       |   |        | Amended      and Restated Declaration of Trust of 1st Constitution Capital Trust II,      dated as of June 15, 2006, among 1st Constitution Bancorp, as sponsor, the      Delaware and institutional trustee named therein, and the administrators      named therein (incorporated by reference to Exhibit 10.1 to the Company’s      Form 8-K filed with the SEC on June 16, 2006) |
|        |   |        |   |
| 10.20       |   |        | Indenture,      dated as of June 15, 2006, between 1st Constitution Bancorp, as issuer,      and the trustee named therein, relating to the Floating Rate Junior      Subordinated Debt Securities due 2036 (incorporated by reference to      Exhibit 10.2 to the Company’s Form 8-K filed with the SEC on June 16,      2006) |
|        |   |        |   |
| 10.21       |   |        | Guarantee      Agreement, dated as of June 15, 2006, between 1st Constitution Bancorp and      the guarantee trustee named therein (incorporated by reference to Exhibit      10.3 to the Company’s Form 8-K filed with the SEC on June 16,      2006) |
|        |   |        |   |
| 10.22       |   | #           | Amendment      No. 2 to 1st Constitution Bancorp Supplemental Executive Retirement      Plan, effective as of December 31, 2004 (incorporated by reference to      Exhibit 10.24 to the Company’s Form 10-K filed with the SEC on April 15,      2008) |
|        |   |        |   |
| 10.23       |   | #           | 1st      Constitution Bancorp 2005 Supplemental Executive Retirement Plan,      effective as of January 1, 2005 (incorporated by reference to Exhibit 10.1      to the Company’s Form 8-K filed with the SEC on December 28,      2006) |
|        |   |        |   |
| 10.24       |   |        | Letter      Agreement, dated December 23, 2008, including Securities Purchase      Agreement – Standard Terms incorporated by reference therein, between 1st      Constitution Bancorp and the U.S. Department of the Treasury (incorporated      by reference to Exhibit 10 to the Company’s Form S-3 filed with the SEC on      January 29, 2009) |
|        |   |        |   |
| 10.25       |   | #           | Form      of Waiver, executed by each of Messrs. Robert Mangano and Joseph M.      Reardon (incorporated by reference to Exhibit 10.2 to the Company’s Form      8-K filed with the SEC on December 23, 2008) |
|        |   |        |   |
| 10.26       |   | #           | Form      of Senior Executive Officer Agreement, executed by each of Messrs. Robert      Mangano and Joseph M. Reardon (incorporated by reference to Exhibit 10.3      to the Company’s Form 8-K filed with the SEC on December 23,      2008) |
|        |   |        |   |
| 10.27       |   | #*          | Letter      Agreement with Robert F. Mangano dated November 5, 2009 and executed by      Mr. Mangano on November 7, 2009 |
|        |   |        |   |
| 10.28       |   | #*          | Letter      Agreement with Joseph M. Reardon dated November 5, 2009 and executed by      Mr. Reardon on November 7, 2009 |

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| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |   |
| 14          |   |        | Code      of Business Conduct and Ethics (incorporated by reference to Exhibit 14 to      the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on      March 25, 2004) |
|        |   |        |   |
| 21          |   | *           | Subsidiaries      of the Company |
|        |   |        |   |
| 23          |   | *           | Consent      of Independent Registered Public Accounting Firm |
|        |   |        |   |
| 31.1        |   | *           | Certification      of the principal executive officer of the Company, pursuant to Securities      Exchange Act Rule 13a-14(a) |
|        |   |        |   |
| 31.2        |   | *           | Certification      of the principal financial officer of the Company, pursuant to Securities      Exchange Act Rule 13a-14(a) |
|        |   |        |   |
| 32          |   | *           | Certifications      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      The Sarbanes-Oxley Act of 2002, signed by the principal executive officer      and the principal financial officer of the Company |
|        |   |        |   |
| 99.1        |   | *           | Certification      of principal executive officer of the Company, pursuant to Section 111(b)      (4) of the Emergency Economic Stability Act of 2008,      as amended by the American Recovery and Reinvestment Act of      2009 |
|        |   |        |   |
| 99.2        |   | *           | Certification      of principal financial officer of the Company, pursuant to Section 111(b)      (4) of the Emergency Economic Stability Act of 2008,      as amended by the American Recovery and Reinvestment Act of      2009 |

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