| x      | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE        |
|--------|------------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                             |
|   | For      the fiscal year ended December 31, 2009                 |
|   | OR                                                               |
|  ̈ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE    |
|   | SECURITIES      EXCHANGE ACT OF 1934                             |
|   | For      the transition period from ___________ to  ____________ |

| Ohio                                      |   | 34-1395608               |
|-------------------------------------------|--------|--------------------------|
| (State      or other jurisdiction of      |   | (I.R.S.      Employer    |
|  incorporation      or organization) |   | Identification      No.) |

| 401 Clinton Street, Defiance,      Ohio       |   | 43512           |
|-----------------------------------------------|--------|-----------------|
| (Address      of principal executive offices) |   | (Zip      Code) |

| Registrant’s      telephone number, including area code: | (419)      783-8950 |
|----------------------------------------------------------------|---------------------|

| Title of each class                   |   | Name of each exchange on which      registered |
|---------------------------------------|--------|------------------------------------------------|
|                                  |   |                                           |
| Common      Shares, Without Par Value |   | The      NASDAQ Stock Market,LLC               |

----

| PART I                                                       |                                                                                                                         |   |
|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                         |                                                                                                                         |   |
| Item      1.                                                 | Business                                                                                                                     | 3      |
|                                                         |                                                                                                                         |   |
| Item      1A.                                                | Risk      Factors                                                                                                            | 25     |
| Item      1B.                                                | Unresolved      Staff Comments                                                                                               | 32     |
| Item      2.                                                 | Properties                                                                                                                   | 32     |
| Item      3.                                                 | Legal      Proceedings                                                                                                       | 34     |
| Item      4.                                                 | Reserved                                                                                                                     | 34     |
| Supplemental      Item: Executive Officers of the Registrant | 35                                                                                                                           |
|                                                         |                                                                                                                         |   |
| PART II                                                      |                                                                                                                         |   |
|                                                         |                                                                                                                         |   |
| Item      5.                                                 | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 36     |
| Item      6.                                                 | Selected      Financial Data                                                                                                 | 39     |
| Item      7.                                                 | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                        | 40     |
| Item      7A.                                                | Qualitative      and Quantitative Disclosures about Market Risk                                                              | 60     |
| Item      8.                                                 | Financial      Statements and Supplementary Data                                                                             | 60     |
| Item      9.                                                 | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure                               | 60     |
| Item      9A.                                                | Controls      and Procedures                                                                                                 | 60     |
| Item      9B.                                                | Other      Information                                                                                                       | 61     |
|                                                         |                                                                                                                         |   |
| PART III                                                     |                                                                                                                         |   |
|                                                         |                                                                                                                         |   |
| Item      10.                                                | Directors,      Executive Officers and Corporate Governance                                                                  | 61     |
| Item      11.                                                | Executive      Compensation                                                                                                  | 62     |
| Item      12.                                                | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                     | 62     |
| Item      13.                                                | Certain      Relationships and Related Transactions, and Director      Independence                                          | 63     |
| Item      14.                                                | Principal      Accountant Fees and Services                                                                                  | 63     |
|                                                         |                                                                                                                         |   |
| PART IV                                                      |                                                                                                                         |   |
|                                                         |                                                                                                                         |   |
| Item      15.                                                | Exhibits      and Financial Statement Schedules                                                                              | 64     |
|                                                         |                                                                                                                         |   |
| Signatures      and Certifications                           | 68                                                                                                                           |

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|   | · | limit      the extent to which a bank or its subsidiaries may engage in “covered      transactions” with any one affiliate to an amount equal to 10% of the      bank’s capital stock and surplus (i.e., tangible  capital); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | limit      the extent to which a bank or its subsidiaries may engage in “covered      transactions” with all affiliates to 20% of the bank’s capital stock and      surplus; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | require      that all covered transactions be on terms substantially the same, or at      least as favorable to the bank or subsidiary, as those provided to      non-affiliates. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| I. | DISTRIBUTION OF ASSETS,      LIABILITIES AND SHAREHOLDERS' EQUITY;INTEREST RATES ANDINTERESTDIFFERENTIAL |
|----|----------------------------------------------------------------------------------------------------------|

|   | The      following are the condensed average balance sheets for the years ending      December 31 and the interest earned or paid on such amounts and the      average interest rate thereon: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                          |   | 2009    |    | 2008     |   | 2007    |   |
|-------------------------------------------------------------------------------|--------|---------|---------|----------|--------|---------|--------|
| ($in      thousands)                                                          |   | Average |    |     |   | Average |   | Average |   |   |   | Average |   | Average |   |   |   | Average |   |
|                                                                          |   | Balance |    | Interest |   | Rate    |   | Balance |   | Interest |   | Rate |   | Balance |   | Interest |   | Rate |   |
| Assets:                                                                       |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                                                                    |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                       |   | $       | 89,092  |     | $      | 4,083   |   |   | 4.58 | %    | $ | 84,301 |   | $ | 4,293 |   |   | 5.09 | %    | $ | 84,389 |   | $ | 4,284 |   |   | 5.08 | % |
| Non-taxable      (1)                                                          |   |    | 27,114  |     |   | 1,611   |   |   | 5.94 | % |   | 17,193 |   |   | 1,040 |   |   | 6.05 | % |   | 16,405 |   |   | 978 |   |   | 5.96 | % |
| Federal      funds sold                                                       |   |    | 77      |     |   | 0       |   |   | 0.17 | % |   | 4,985 |   |   | 134 |   |   | 2.68 | % |   | 5,072 |   |   | 225 |   |   | 4.44 | % |
| Loans,      net (2)(3)                                                        |   |    | 453,787 |     |   | 27,492  |   |   | 6.06 | % |   | 401,770 |   |   | 27,601 |   |   | 6.87 | % |   | 381,449 |   |   | 27,893 |   |   | 7.31 | % |
| Total      earning assets                                                     |   |    | 570,070 |     |   | 33,186  |   |   | 5.82 | % |   | 508,250 |   |   | 33,067 |   |   | 6.51 | % |   | 487,315 |   |   | 33,380 |   |   | 6.85 | % |
| Cash      and due from banks                                                  |   |    | 27,573  |     |   |    |   |   |   |   |   | 9,570 |   |   |   |   |   |   |   |   | 11,605 |   |   |   |   |   |   |   |
| Allowance      for loan losses                                                |   |    | (5,650  | )        |   |    |   |   |   |   |   | (4,182 | ) |   |   |   |   |   |   |   | (3,843 | ) |   |   |   |   |   |   |
| Premises      and equipment                                                   |   |    | 23,993  |     |   |    |   |   |   |   |   | 21,145 |   |   |   |   |   |   |   |   | 19,788 |   |   |   |   |   |   |   |
| Other      assets                                                             |   |    | 51,485  |     |   |    |   |   |   |   |   | 40,708 |   |   |   |   |   |   |   |   | 41,707 |   |   |   |   |   |   |   |
|                                                                          |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                             |   | $       | 667,470 |     |   |    |   |   |   |   | $ | 575,491 |   |   |   |   |   |   |   | $ | 556,572 |   |   |   |   |   |   |   |
|                                                                          |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                                   |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                      |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      and interest-bearing demand deposits                             |   | $       | 209,394 |     | $      | 780     |   |   | 0.37 | % | $ | 158,765 |   | $ | 1,748 |   |   | 1.10 | % | $ | 138,314 |   | $ | 2,714 |   |   | 1.96 | % |
| Time      deposits                                                            |   |    | 226,275 |     | $      | 5,747   |   |   | 2.54 | % |   | 213,891 |   |   | 8,319 |   |   | 3.89 | % |   | 231,605 |   |   | 10,882 |   |   | 4.70 | % |
| Short-term      borrowings                                                    |   |    | 46,930  |     |   | 1,869   |   |   | 3.98 | % |   | 44,891 |   |   | 1,874 |   |   | 4.18 | % |   | 36,588 |   |   | 1,653 |   |   | 4.52 | % |
| Advances      from FHLB                                                       |   |    | 38,571  |     |   | 1,625   |   |   | 4.21 | % |   | 33,377 |   |   | 1,508 |   |   | 4.52 | % |   | 19,329 |   |   | 1,037 |   |   | 5.36 | % |
| Junior      subordinated debentures                                           |   |    | 20,620  |     |   | 1,573   |   |   | 7.63 | % |   | 20,620 |   |   | 1,692 |   |   | 8.20 | % |   | 20,620 |   |   | 1,809 |   |   | 8.77 | % |
| Other      borrowed funds                                                     |   |    | -       |     |   | -       |   |   | N/A |   |   | - |   |   | - |   |   | N/A |   |   | 1,641 |   |   | 127 |   |   | 7.74 | % |
| Total      interest-bearing liabilities                                       |   |    | 541,790 |     |   | 11,594  |   |   | 2.14 | % |   | 471,544 |   |   | 15,141 |   |   | 3.21 | % |   | 448,097 |   |   | 18,222 |   |   | 4.07 | % |
|                                                                          |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                                          |   |    | 53,857  |     |   |    |   |   |   |   |   | 35,386 |   |   |   |   |   |   |   |   | 42,848 |   |   |   |   |   |   |   |
| Other      liabilities                                                        |   |    | 8,246   |     |   |    |   |   |   |   |   | 8,597 |   |   |   |   |   |   |   |   | 7,682 |   |   |   |   |   |   |   |
| Total      liabilities                                                        |   |    | 603,894 |     |   |    |   |   |   |   |   | 515,527 |   |   |   |   |   |   |   |   | 498,627 |   |   |   |   |   |   |   |
| Shareholders'      equity                                                     |   |    | 63,576  |     |   |    |   |   |   |   |   | 59,964 |   |   |   |   |   |   |   |   | 57,945 |   |   |   |   |   |   |   |
|                                                                          |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders' equity                               |   | $       | 667,470 |     |   |    |   |   |   |   | $ | 575,491 |   |   |   |   |   |   |   | $ | 556,572 |   |   |   |   |   |   |   |
|                                                                          |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income (tax equivalent basis)                               |   |    |    |     | $      | 21,592  |   |   |   |   |   |   |   | $ | 17,926 |   |   |   |   |   |   |   | $ | 15,158 |   |   |   |   |
|                                                                          |   |    |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income as a percent of average interest-earning      assets |   |    |    |     |   |    |   |   | 3.79 | % |   |   |   |   |   |   |   | 3.53 | % |   |   |   |   |   |   |   | 3.11 | % |

| (1) | Security      interest is computed on a tax equivalent basis using a 34% statutory tax      rate.  The tax equivalent adjustment was $548,000, $354,000 and      $333,000 in  2009, 2008 and 2007,  respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Nonaccruing      loans and loans held for sale are included in the average      balances. |
|-----|-------------------------------------------------------------------------------------------|

| (3) | Loan      interest is computed on a tax equivalent basis using a 34% statutory tax      rate.  The tax equivalent adjustment was $47,000, $44,000 and      $38,000 in 2009, 2008 and 2007respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| I. | DISTRIBUTION OF ASSETS,      LIABILITIES AND SHAREHOLDERS' EQUITY;INTEREST RATES ANDINTERESTDIFFERENTIAL      (Continued) |
|----|---------------------------------------------------------------------------------------------------------------------------|

|   | Volume      Variance - change in volume multiplied by the previous year's      rate. |
|--------|--------------------------------------------------------------------------------------|

|   | Rate      Variance - change in rate multiplied by the previous year's      volume. |
|--------|------------------------------------------------------------------------------------|

|   | Rate/Volume      Variance - change in volume multiplied by the change in      rate.  This variance was allocated to volume variance and rate      variance in proportion to the relationship of the absolute dollar amount      of the change in each. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest      on non-taxable securities has been adjusted to a fully tax equivalent      basis using a statutory tax rate of 34% in 2009, 2008 and      2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | Total                       |   |   |                          |   |   |   |   |
|-----------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------------------|--------|--------|--------|--------|
|                                                      |   | Variance                    |   |   | Variance      Attributable To |   |
|                                                      |   | 2009/2008                   |   |   | Volume                        |   |   | Rate   |   |
|                                                      |   | (dollars      in thousands) |   |
| Interest      income                                      |   |                        |   |   |                          |   |   |   |   |   |
| Securities                                                |   |                        |   |   |                          |   |   |   |   |   |
| Taxable                                                   |   | $                           | (210   | )      |                          | $      | 235    |   |   | $ | (445 | ) |
| Non-taxable                                               |   |                        | 571    |   |                          |   | 590    |   |   |   | (19 | ) |
| Federal      funds sold                                   |   |                        | (134   | )      |                          |   | (134   | )      |   |   | - |   |
| Loans,      net of unearned income and deferred loan fees |   |                        | (108   | )      |                          |   | 3,353  |   |   |   | (3,461 | ) |
|                                                      |   |                        | 119    |   |                          |   | 4,044  |   |   |   | (3,925 | ) |
|                                                      |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Interest      expense                                     |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Deposits                                                  |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Savings      and interest-bearing demand deposits         |   |                        | (968   | )      |                          |   | 437    |   |   |   | (1,405 | ) |
| Time      deposits                                        |   |                        | (2,572 | )      |                          |   | 458    |   |   |   | (3,030 | ) |
| Short-term      borrowings                                |   |                        | (5     | )      |                          |   | 83     |   |   |   | (88 | ) |
| Advances      from FHLB                                   |   |                        | 117    |   |                          |   | 224    |   |   |   | (107 | ) |
| Trust      preferred securities                           |   |                        | (119   | )      |                          |   | -      |   |   |   | (119 | ) |
| Other      borrowed funds                                 |   |                        | -      |   |                          |   | -      |   |   |   | - |   |
|                                                      |   | $                           | (3,547 | )      |                          | $      | 1,202  |   |   | $ | (4,749 | ) |
|                                                      |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Net      interest income                                  |   | $                           | 3,666  |   |                          | $      | 2,842  |   |   | $ | 824 |   |

----

| I. | DISTRIBUTION OF ASSETS,      LIABILITIES AND SHAREHOLDERS' EQUITY;INTEREST RATES ANDINTERESTDIFFERENTIAL      (Continued) |
|----|---------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | Total                       |   |   |                          |   |   |   |   |
|-----------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------------------|--------|--------|--------|--------|
|                                                      |   | Variance                    |   |   | Variance      Attributable To |   |
|                                                      |   | 2008/2007                   |   |   | Volume                        |   |   | Rate   |   |
|                                                      |   | (dollars      in thousands) |   |
| Interest      income                                      |   |                        |   |   |                          |   |   |   |   |   |
| Securities                                                |   |                        |   |   |                          |   |   |   |   |   |
| Taxable                                                   |   | $                           | 11     |   |                          | $      | (4     | )      |   | $ | 15 |   |
| Non-taxable                                               |   |                        | 62     |   |                          |   | 48     |   |   |   | 14 |   |
| Federal      funds sold                                   |   |                        | (94    | )      |                          |   | (4     | )      |   |   | (90 | ) |
| Loans,      net of unearned income and deferred loan fees |   |                        | (292   | )      |                          |   | 1,444  |   |   |   | (1,736 | ) |
|                                                      |   |                        | (313   | )      |                          |   | 1,484  |   |   |   | (1,797 | ) |
|                                                      |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Interest      expense                                     |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Deposits                                                  |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Savings      and interest-bearing demand deposits         |   |                        | (966   | )      |                          |   | 357    |   |   |   | (1,323 | ) |
| Time      deposits                                        |   |                        | (2,563 | )      |                          |   | (788   | )      |   |   | (1,775 | ) |
| Short-term      borrowings                                |   |                        | 221    |   |                          |   | 354    |   |   |   | (133 | ) |
| Advances      from FHLB                                   |   |                        | 471    |   |                          |   | 656    |   |   |   | (185 | ) |
| Trust      preferred securities                           |   |                        | (117   | )      |                          |   | -      |   |   |   | (117 | ) |
| Other      borrowed funds                                 |   |                        | (127   | )      |                          |   | (127   | )      |   |   | - |   |
|                                                      |   | $                           | (3,081 | )      |                          | $      | 452    |   |   | $ | (3,533 | ) |
|                                                      |   |                        |   |   |                          |   |   |   |   |   |   |   |
| Net      interest income                                  |   | $                           | 2,768  |   |                          | $      | 1,032  |   |   | $ | 1,736 |   |

----

| II. | INVESTMENT      PORTFOLIO |
|-----|---------------------------|

|  | A. | The      book value of securities available for sale as of December 31 in each      of the following years are summarized as  follows: |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------|

| Book      Value of Securities             |   |                        |    |   |   |   |    |   |   |
|-------------------------------------------|--------|-----------------------------|---------|--------|--------|--------|---------|--------|--------|
|                                      |   |                        |    |   |   |   |    |   |   |
|                                      |   | 2009                        |    |   | 2008   |   |    | 2007   |   |
|                                      |   | (dollars      in thousands) |    |
| U.S.      Treaury and government agencies |   | $                           | 12,944  |   |   | $      | 15,184  |   |   | $ | 40,189 |   |
| State      and political subdivisions     |   |                        | 31,537  |   |   |   | 22,801  |   |   |   | 16,019 |   |
| Mortgage-backed      securities           |   |                        | 52,246  |   |   |   | 64,546  |   |   |   | 36,380 |   |
| Money      Market Mutual Fund             |   |                        | 8,333   |   |   |   | -       |   |   |   | - |   |
| Other      securities                     |   |                        | -       |   |   |   | 52      |   |   |   | 50 |   |
| Marketable      equity securities         |   |                        | 23      |   |   |   | 23      |   |   |   | 23 |   |
|                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Total                                     |   | $                           | 105,083 |   |   | $      | 102,606 |   |   | $ | 92,661 |   |

|  | B. | The      maturity distribution and weighted average interest rates of securities      available for sale at December 31, 2009 are set forth in the table      below.  The weighted average interest rates are based on coupon      rates for securities purchased at par value and on effective interest      rates considering amortization or accretion if the securities were      purchased at a premium or discount: |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | Maturing                    |   |
|----------------------------------------------------|--------|-----------------------------|--------|
|                                               |   |                        |   |   | After      One Year |   |   | After      Five Years |   |   |   |   |
|                                               |   | Within                      |   |   | but      within |   |   | but      within |   |   | After |   |
|                                               |   | One      Year               |   |   | Five      Years |   |   | Ten      Years |   |   | Ten      Years |   |
|                                               |   | (dollars      in thousands) |   |
| U.S.      Treaury and government agencies          |   | $                           | -      |   |   | $ | 107 |   |   | $ | 4,489 |   |   | $ | 8,348 |   |
| State      and political subdivisions              |   |                        | 1,045  |   |   |   | 3,781 |   |   |   | 5,518 |   |   |   | 21,193 |   |
| Mortgage-backed      securities                    |   |                        | 527    |   |   |   | 2,417 |   |   |   | - |   |   |   | 49,302 |   |
|                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities with maturity                |   | $                           | 1,572  |   |   | $ | 6,305 |   |   | $ | 10,007 |   |   | $ | 78,843 |   |
|                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average yield by maturity (1)        |   |                        | 3.63   | % |   |   | 4.03 | % |   |   | 3.06 | % |   |   | 4.75 | % |
|                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money      Market Mutual Fund with no maturity     |   | $                           | 8,333  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Marketable      equity securities with no maturity |   |                        | 23     |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities with no stated maturity      |   | $                           | 8,356  |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average yield no maturity (1)        |   | <      0.01              | %      |   |   | - |   |   |   | - |   |   |   | - |   |

|  | (1) | Yields      are not presented on a tax-equivalent basis.  Money market funds      represent the payments received on mortgage-backed securities or funds      received from the maturity or calls of U.S Treasury, government agency and      municipal securities. These funds are then reinvested back into these      securities |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | C. | Excluding      those holdings of the investment portfolio in U.S. Treasury securities and      other agencies of the U.S. Government, there were no other securities of      any one issuer which exceeded 10% of the shareholders' equity of the      Company at December 31, 2009. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| III. | LOAN      PORTFOLIO |
|------|---------------------|

|   | A. | Types      of Loans - Total loans on the balance sheet are comprised of the following      classifications at December 31 for the years    indicated: |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (dollars      in thousands)                     |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                            |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Commercial      business and agricultural       |   | $      | 126,128 |   |   | $      | 127,287 |   |   | $      | 126,418 |   |   | $      | 116,324 |   |   | $ | 123,559 |   |
| Commercial      real estate                     |   |   | 179,909 |   |   |   | 161,566 |   |   |   | 126,784 |   |   |   | 109,503 |   |   |   | 64,108 |   |
| Real      estate mortgage                       |   |   | 92,972  |   |   |   | 107,905 |   |   |   | 84,621  |   |   |   | 94,389  |   |   |   | 89,086 |   |
| Consumer      loans to individuals              |   |   | 53,655  |   |   |   | 53,339  |   |   |   | 51,358  |   |   |   | 49,314  |   |   |   | 48,877 |   |
| Leases                                          |   |   | 221     |   |   |   | 266     |   |   |   | 330     |   |   |   | 857     |   |   |   | 1,661 |   |
|                                            |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      loans                                |   | $      | 452,885 |   |   | $      | 450,363 |   |   | $      | 389,511 |   |   | $      | 370,387 |   |   | $ | 327,291 |   |
|                                            |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Real      estate mortgage loans held for resale |   | $      | 16,858  |   |   | $      | 3,824   |   |   | $      | 1,650   |   |   | $      | 390     |   |   | $ | 224 |   |

|   | B. | Maturities      and Sensitivities of Loans to Changes in Interest Rates - The following      table shows the amounts of commercial and agricultural loans outstanding      as of December 31, 2009 which, based on remaining scheduled      repayments of principal, are due in the periods      indicated.  Also, the amounts have been classified according to      sensitivity to changes in interest rates for commercial and agricultural      loans due after one year.  (Variable-rate loans are those loans      with floating or adjustable interestrates.) |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Maturing                                                                           |   | Commercial Business |    |   | Commercial       |   |    |   |   |
|------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|------------------|--------|---------|--------|--------|
| (dollars      in thousands)                                                        |   | and      Agricultural    |    |   | Real      Estate |   |    | Total  |   |
| Within      one year                                                               |   | $                        | 21,280  |   |             | $      | 13,673  |   |   | $ | 34,953 |   |
| After      one year but within five years                                          |   |                     | 40,771  |   |             |   | 47,890  |   |   |   | 88,661 |   |
| After      five years                                                              |   |                     | 64,077  |   |             |   | 118,346 |   |   |   | 182,423 |   |
|                                                                               |   |                     |    |   |             |   |    |   |   |   |   |   |
| Total      commercial business, commercial real estate and agricultural      loans |   | $                        | 126,128 |   |             | $      | 179,909 |   |   | $ | 306,037 |   |

----

| III. | LOANPORTFOLIO      (Continued) |
|------|--------------------------------|

|                                          |   | Interest      Sensitivity   |   |   |     |   |
|-----------------------------------------------|--------|-----------------------------|--------|--------|----------|--------|
|                                          |   | Fixed                       |   |   | Variable |   |   |   |   |
|                                          |   | Rate                        |   |   | Rate     |   |   | Total |   |
|                                     |   | (dollars      in thousands) |   |
| Commercial Business and      Agricultural     |   |                        |   |   |     |   |   |   |   |
|                                          |   |                        |   |   |     |   |   |   |   |
| Due      after one year but within five years |   | $                           | 17,416 |   |     | $      | 23,355 |   |   | $ | 40,771 |   |
| Due      after five years                     |   |                        | 4,548  |   |     |   | 59,529 |   |   |   | 64,077 |   |
|                                          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Total                                         |   | $                           | 21,964 |   |     | $      | 82,884 |   |   | $ | 104,848 |   |
|                                          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Commercial Real Estate                        |   |                        |   |   |     |   |   |   |   |   |   |   |
|                                          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Due      after one year but within five years |   |                        | 14,082 |   |     |   | 33,808 |   |   |   | 47,890 |   |
| Due      after five years                     |   |                        | 19,527 |   |     |   | 98,819 |   |   |   | 118,346 |   |
|                                          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Total                                         |   | $                           | 33,609 |   |     | $      | 132,627 |   |   | $ | 166,236 |   |
|                                          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Commercial      Business, Commercial          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Real Estate andAgricultural                   |   |                        |   |   |     |   |   |   |   |   |   |   |
|                                          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Due      after one year but within five years |   |                        | 31,498 |   |     |   | 57,163 |   |   |   | 88,661 |   |
| Due      after five years                     |   |                        | 24,075 |   |     |   | 158,348 |   |   |   | 182,423 |   |
|                                          |   |                        |   |   |     |   |   |   |   |   |   |   |
| Total                                         |   | $                           | 55,573 |   |     | $      | 215,511 |   |   | $ | 271,084 |   |

----

|   | C. | Risk      Elements |
|--------|----|--------------------|

|  | 1. | Non-accrual,      Past Due, Restructured and Impaired Loans – The following schedule      summarizes non-accrual, past due, restructured and impaired loans at      December 31 in each of the followingyears. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                 |   | 2009                        |   |   | 2008   |   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                 |   | (dollars      in thousands) |   |
| (a)      Loans accounted for on a non-accrual basis                                                                                                  |   | $                           | 18,543 |   |   | $      | 5,178  |   |   | $      | 5,990  |   |   | $      | 3,828  |   |   | $ | 6,270 |   |
| (b)      Accruing loans which are contractually past due 90 days or more as to      interest or principal payments                                   |   |                        | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 5 |   |
| (c)      Loans not included in (a) which are "Troubled Debt Restructurings" as      defined by Statement of Financial Accounting Standards No.    15 |   |                        | 1,364  |   |   |   | 151    |   |   |   | 159    |   |   |   | 166    |   |   |   | 825 |   |
| Total      non-performing loans                                                                                                                      |   | $                           | 19,907 |   |   | $      | 5,329  |   |   | $      | 6,149  |   |   | $      | 3,994  |   |   | $ | 7,100 |   |
|                                                                                                                                                 |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (d)      Other loans defined as impaired                                                                                                             |   | $                           | 3,597  |   |   | $      | 1,868  |   |   | $      | 593    |   |   | $      | 82     |   |   | $ | 3,283 |   |

|                                                                                                    |   | 2009             |   |
|---------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                    |   | ($ In thousands) |   |
| Cash      basis interest income recognized on impaired loans outstanding at December      31, 2009      |   | $                | 597    |   |
|                                                                                                    |   |             |   |   |
| Interest      income actually recorded on impaired loans and included in net income for      the period |   |             | 565    |   |
|                                                                                                    |   |             |   |   |
| 2009      unrecorded interest income on non-accrual loans                                               |   |             | 402    |   |

----

| III. | LOANPORTFOLIO      (Continued) |
|------|--------------------------------|

|  | 1. | Discussion      of the Non-accrual Policy |
|--|----|-------------------------------------------|

|  | 2. | Potential      Problem Loans |
|--|----|------------------------------|

----

| III. | LOANPORTFOLIO      (Continued) |
|------|--------------------------------|

|   | 3. | Foreign      Outstandings |
|--------|----|---------------------------|

|   | 4. | Loan      Concentrations |
|--------|----|--------------------------|

|   | D. | Other Interest-Bearing      Assets |
|--------|----|------------------------------------|

|   | There      were no other interest-bearing assets as of December 31, 2009 which      would be required to be disclosed under Item III.C.1 or Item III.C.2. if      such assets were loans. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | A. | The      following schedule presents an analysis of the allowance for loan losses,      average loan data and related ratios for the years ended      December 31: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Summary      of Loan Loss Experience                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                                                |   | 2009                        |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|                                                                                                |   | (dollars      in thousands) |    |
| Loans                                                                                               |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Loans      outstanding at end of period                                                             |   | $                           | 452,558 |   |   | $      | 450,112 |   |   | $      | 389,269 |   |   | $      | 370,102 |   |   | $ | 327,048 |   |
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Average      loans outstanding during period                                                        |   | $                           | 453,787 |   |   | $      | 401,770 |   |   | $      | 381,453 |   |   | $      | 354,726 |   |   | $ | 268,158 |   |
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Allowance      for loan losses                                                                      |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Balance      at beginning of period                                                                 |   | $                           | 5,020   |   |   | $      | 3,990   |   |   | $      | 3,717   |   |   | $      | 4,700   |   |   | $ | 4,899 |   |
| Balance,      of ALLL acquired in Exchange acquisition                                              |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   | 910 |   |
| Balance,      of ALLL acquired in Montpelier acquisition                                            |   |                        |    |   |   |   | 1,104   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Loans      charged-off:                                                                             |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial      business and agricultural loans                                                     |   |                        | (1,248  | )      |   |   | (277    | )      |   |   | (86     | )      |   |   | (1,047  | ) |   |   | (2,249 | ) |
| Commercial      real estate                                                                         |   |                        | (918    | )      |   |   | (212    | )      |   |   | (18     | )      |   |   | (230    | ) |   |   | (511 | ) |
| Real      estate mortgage                                                                           |   |                        | (1,218  | )      |   |   | (172    | )      |   |   | (81     | )      |   |   | (100    | ) |   |   | (133 | ) |
| Leases                                                                                              |   |                        | -       |   |   |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | (208 | ) |
| Consumer      loans to individuals                                                                  |   |                        | (491    | )      |   |   | (261    | )      |   |   | (247    | )      |   |   | (440    | ) |   |   | (308 | ) |
|                                                                                                |   |                        | (3,875  | )      |   |   | (922    | )      |   |   | (432    | )      |   |   | (1,817  | ) |   |   | (3,409 | ) |
| Recoveries      of loans previously charged-off                                                     |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial      business and agricultural loans                                                     |   |                        | 50      |   |   |   | 67      |   |   |   | 72      |   |   |   | 405     |   |   |   | 1,548 |   |
| Commercial      real estate                                                                         |   |                        | 14      |   |   |   | 24      |   |   |   | 13      |   |   |   | 14      |   |   |   | 18 |   |
| Real      estate mortgage                                                                           |   |                        | 54      |   |   |   | 4       |   |   |   | 4       |   |   |   | 75      |   |   |   | 2 |   |
| Leases                                                                                              |   |                        | -       |   |   |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | 4 |   |
| Consumer      loans to individuals                                                                  |   |                        | 29      |   |   |   | 63      |   |   |   | 95      |   |   |   | 162     |   |   |   | 145 |   |
|                                                                                                |   |                        | 147     |   |   |   | 158     |   |   |   | 184     |   |   |   | 656     |   |   |   | 1,717 |   |
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      loans charged-off                                                                          |   |                        | (3,728  | )      |   |   | (764    | )      |   |   | (248    | )      |   |   | (1,160  | ) |   |   | (1,692 | ) |
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Provision      for loan losses                                                                      |   |                        | 5,738   |   |   |   | 690     |   |   |   | 521     |   |   |   | 178     |   |   |   | 583 |   |
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Balance      at end of period                                                                       |   | $                           | 7,030   |   |   | $      | 5,020   |   |   | $      | 3,990   |   |   | $      | 3,717   |   |   | $ | 4,700 |   |
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Ratio      of net charge-offs during the period to average loans outstanding during      the period |   |                        | 0.84    | %      |   |   | 0.19    | %      |   |   | 0.07    | %      |   |   | 0.33    | % |   |   | 0.63 | % |

|   | The      allowance for loan losses balance and the provision for loan losses are      determined by management based upon periodic reviews of the loan      portfolio.  In addition, management considered the level of      charge-offs on loans as well as the fluctuations of charge-offs and      recoveries on loans in the factors which caused these      changes.  Estimating the risk of loss and the amount of loss is      necessarily subjective.  Accordingly, the allowance is      maintained by management at a level considered adequate to cover losses      that are currently anticipated based on past loss experience, economic      conditions, information about specific borrower situations including their      financial position and collateral values and other factors and estimates      which are subject to change overtime. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | B. | The      following schedule provides a breakdown of the allowance for loan losses      allocated by type of loan and relatedratios. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|

|                               |   | Allocation      of the Allowance for Loan Losses |   |
|------------------------------------|--------|--------------------------------------------------|--------|
|                               |   |                                             |   |   | Percentage |   |   |   |   |   | Percentage |   |   |   |   |   | Percentage |   |   |   |   |   | Percentage |   |   |   |   |   | Percentage |   |
|                               |   |                                             |   |   | of      Loans In |   |   |   |   |   | of      Loans In |   |   |   |   |   | of      Loans In |   |   |   |   |   | of      Loans In |   |   |   |   |   | of      Loans In |   |
|                               |   |                                             |   |   | Each |   |   |   |   |   | Each |   |   |   |   |   | Each |   |   |   |   |   | Each |   |   |   |   |   | Each |   |
|                               |   |                                             |   |   | Category      to |   |   |   |   |   | Category      to |   |   |   |   |   | Category      to |   |   |   |   |   | Category      to |   |   |   |   |   | Category      to |   |
|                               |   | Allowance                                        |   |   | Total |   |   | Allowance |   |   | Total |   |   | Allowance |   |   | Total |   |   | Allowance |   |   | Total |   |   | Allowance |   |   | Total |   |
|                               |   | Amount                                           |   |   | Loans |   |   | Amount |   |   | Loans |   |   | Amount |   |   | Loans |   |   | Amount |   |   | Loans |   |   | Amount |   |   | Loans |   |
|                               |   | December      31, 2009                           |   |   | December      31, 2008 |   |   | December      31, 2007 |   |   | December      31, 2006 |   |   | December      31, 2005 |   |
|                               |   | (dollars      in thousands)                      |   |
| Commercial      and agricultural   |   | $                                                | 2,685  |   |   |   | 38.2 | % |   | $ | 2,304 |   |   |   | 45.9 | % |   | $ | 2,398 |   |   |   | 60.1 | % |   | $ | 2,748 |   |   |   | 73.9 | % |   | $ | 2,453 |   |   |   | 52.2 | % |
| Commercial      real estate        |   |                                             | 2,804  |   |   |   | 39.9 | % |   |   | 1,255 |   |   |   | 25.0 | % |   |   | 547 |   |   |   | 13.7 | % |   |   | 197 |   |   |   | 5.3 | % |   |   | 240 |   |   |   | 5.1 | % |
| Residential      first mortgage    |   |                                             | 717    |   |   |   | 10.2 | % |   |   | 884 |   |   |   | 17.6 | % |   |   | 590 |   |   |   | 14.8 | % |   |   | 317 |   |   |   | 8.5 | % |   |   | 1,278 |   |   |   | 27.2 | % |
| Consumer      loans to individuals |   |                                             | 824    |   |   |   | 11.7 | % |   |   | 577 |   |   |   | 11.5 | % |   |   | 455 |   |   |   | 11.4 | % |   |   | 455 |   |   |   | 12.3 | % |   |   | 729 |   |   |   | 15.5 | % |
|                               |   | $                                                | 7,030  |   |   |   | 100.0 | % |   | $ | 5,020 |   |   |   | 100.0 | % |   | $ | 3,990 |   |   |   | 100.0 | % |   | $ | 3,717 |   |   |   | 100.0 | % |   | $ | 4,700 |   |   |   | 100.0 | % |

----

|   | The      average amount of deposits and average rates paid are summarized as      follows for the years endedDecember 31: |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | 2009                        |    |   | 2008    |   |    | 2007    |   |
|---------------------------------------------------|--------|-----------------------------|---------|--------|---------|--------|---------|---------|--------|
|                                              |   | Average                     |    |   | Average |   |    | Average |   |   | Average |   |   | Average |   |   | Average |   |
|                                              |   | Amount                      |    |   | Rate    |   |    | Amount  |   |   | Rate |   |   | Amount |   |   | Rate |   |
|                                              |   | (dollars      in thousands) |    |
| Savings      and interest-bearing demand deposits |   | $                           | 209,394 |   |    |   | 0.37    | %       |   | $ | 158,765 |   |   |   | 1.10 | % |   | $ | 138,314 |   |   |   | 1.96 | % |
| Time      deposits                                |   |                        | 226,275 |   |    |   | 2.54    | %       |   |   | 213,891 |   |   |   | 3.89 | % |   |   | 231,604 |   |   |   | 4.70 | % |
| Demand      deposits (non-interest-bearing)       |   |                        | 53,857  |   |    |   | — |    |   |   | 35,386 |   |   |   | — |   |   |   | 42,849 |   |   |   | — |   |
|                                              |   | $                           | 489,526 |   |    |   |    |    |   | $ | 408,042 |   |   |   |   |   |   | $ | 412,767 |   |   |   |   |   |

|                                           |   | Amount                 |   |
|------------------------------------------------|--------|------------------------|--------|
|                                           |   | (dollars in thousands) |   |
|                                           |   |                   |   |
| Three      months or less                      |   | $                      | 10,293 |   |
| Over      three months and through six months  |   |                   | 20,053 |   |
| Over      six months and through twelve months |   |                   | 20,635 |   |
| Over      twelve months                        |   |                   | 23,963 |   |
|                                           |   |                   |   |   |
| Total                                          |   | $                      | 74,944 |   |

----

|   | The      ratio of net income to average shareholders' equity and average total      assets and certain other ratios are as follows for periods ended December      31: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | 2009                        |    |   | 2008   |   |    | 2007   |   |
|-----------------------------------------------------------|--------|-----------------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                      |   | (dollars      in thousands) |    |
| Average      total assets                                 |   | $                           | 667,470 |   |   | $      | 575,491 |   |   | $ | 556,572 |   |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Average      shareholders’ equity                   |   | $                           | 63,576  |   |   | $      | 59,964  |   |   | $ | 57,945 |   |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Net      income                                           |   | $                           | 382     |   |   | $      | 5,217   |   |   | $ | 3,257 |   |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Cash      dividends declared                              |   | $                           | 1,752   |   |   | $      | 1,677   |   |   | $ | 1,303 |   |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Return      on average total assets                       |   |                        | 0.06    | %      |   |   | 0.91    | %      |   |   | 0.59 | % |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Return      on average shareholders' equity               |   |                        | 0.60    | %      |   |   | 8.70    | %      |   |   | 5.62 | % |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Dividend      payout ratio  (1)                 |   |                        | 458.64  |   |   |   | 32.14   |   |   |   | 40.01 |   |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| Average      shareholders' equity to average total assets |   |                        | 9.52    | %      |   |   | 10.42   | %      |   |   | 10.41 | % |
|                                                      |   |                        |    |   |   |   |    |   |   |   |   |   |
| (1)      Cash dividends declared divided by net income.   |   |                        |    |   |   |   |    |   |   |   |   |   |

|   | The      following information is reported for short-term borrowings for 2009, 2008      and 2007: |
|--------|----------------------------------------------------------------------------------------------------|

|                                                |   | 2009                        |   |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                |   | (dollars      in thousands) |   |
| Amount      outstanding at end of year              |   | $                           | 52,043 |   |   | $      | 43,426 |   |   | $ | 43,006 |   |
|                                                |   |                        |   |   |   |   |   |   |   |   |   |   |
| Weighted      average interest rate at end of year  |   |                        | 3.28   | %      |   |   | 3.91   | %      |   |   | 4.38 | % |
|                                                |   |                        |   |   |   |   |   |   |   |   |   |   |
| Maximum      amount outstanding at any month end    |   | $                           | 52,704 |   |   | $      | 49,554 |   |   | $ | 46,966 |   |
|                                                |   |                        |   |   |   |   |   |   |   |   |   |   |
| Average      amount outstanding during the year     |   | $                           | 45,553 |   |   | $      | 44,891 |   |   | $ | 36,588 |   |
|                                                |   |                        |   |   |   |   |   |   |   |   |   |   |
| Weighted      average interest rate during the year |   |                        | 3.81   | %      |   |   | 4.10   | %      |   |   | 4.51 | % |

----

----

----

|   | · | substantial      costs related to the spin-off and the merger, including fees for financial      advisors, attorneys and auditors, printing costs and costs associated with      the agreements related to the transactions;and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | potential      disruption to the respective businesses of the Company and RDSI and the      distraction of their respective workforce and management      teams. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|   | 1. | State      Bank’s main office is owned and located at 401 Clinton Street, Defiance,      Ohio.  State Bank leases portions of this facility to the      Company and the RFS division of State Bank. (Banking and      Other) |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2. | State      Bank owns a drive-thru branch office located at 510 Third Street,      Defiance, Ohio. (Banking) |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | 3. | State      Bank leases a parcel of land for a full service branch office (Owned)      located at 1600 North Clinton Street, Defiance, Ohio, pursuant to a 9-year      lease.  (Banking) |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | State      Bank owns a full service branch office located at 220 North Main Street,      Paulding, Ohio. (Banking) |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

|   | 5. | State      Bank owns a full service branch office located at 312 Main Street,      Delta, Ohio. (Banking) |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | 6. | State      Bank owns a full service branch office located at 133 E. Morenci      Street, Lyons, Ohio. (Banking) |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | 7. | State      Bank owns a full service branch office located at 515 Parkview,      Wauseon, Ohio. (Banking) |
|--------|----|---------------------------------------------------------------------------------------------------------------|

|   | 8. | State      Bank leases a full service branch office located in the Chief Market      Square supermarket at 705 Deatrick Street, Defiance, Ohio, pursuant to a      15-year lease.  (Banking) |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | State      Bank owns a full service branch office located at 218 North First Street,      Oakwood, Ohio. (Banking) |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

|   | 10. | State      Bank owns a full service branch office located at 930 West Market Street,      Lima, Ohio. (Banking) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | 11. | State      Bank owns a full service branch office located at 12832 Coldwater Road,      Fort Wayne,Indiana.  (Banking) |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | 12. | State      Bank owns a full service branch office located at 235 Main Street, Luckey,      Ohio.  (Banking) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | 13. | State      Bank owns a full service branch office located at 311 Main Street,      Walbridge, Ohio. (Banking) |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | 14. | State      Bank owns a full service branch office located at 610 East South Boundary,      Perrysburg, Ohio. (Banking) |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | 15. | State      Bank owns a full service branch office located at 6401 Monroe Street,      Sylvania, Ohio. (Banking) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | 16. | State      Bank owns a loan production office located at 109 South High Street, #8,      Dublin, Ohio.  (Banking) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | 17. | State      Bank owns a full service branch office located at 1201 East Main Street,      Montpelier, Ohio. (Banking) |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | 18. | State      Bank owns a full service branch office located at 119 South State Street,      Pioneer, Ohio. (Banking) |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | 19. | State      Bank owns a full service branch office located at 112 East Jackson Street,      West Unity, Ohio. (Banking) |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

----

|   | 20. | State      Bank owns a full service branch office located at 1419 West High Street,      Bryan, Ohio. (Banking) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | 21. | State      Bank leases a loan production office in Steuben County,      Indiana.  (Banking) |
|--------|-----|-------------------------------------------------------------------------------------------------------|

----

| Name                           |   | Age    |   | Position(s) Held with the Company andits Subsidiaries and Principal Occupation(s)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Kenneth A. Joyce     |   | 61     |   | Executive Vice Chairman of the      Company since January 2010; President and Chief Executive Officer of the      Company from 2002 to 2010; Chairman, Chief Executive Officer and a      Director of RDSI since 1997; Director of State Bank since 2002; Director      of RFCBC since 2004; Member of Investment Committee of Reliance Financial      Services (now a division of State Bank) since March 2007; Director of      Promedica-Defiance Regional Medical Center and Promedica Physicians Group;      Chairman of Promedica-Defiance Regional Medical Center Finance Committee;      Director of United Way (non-profit).                                                                                                                                                                                     |
|                           |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Duane L. Sinn        |   | 39     |   | Executive      Vice President and Chief Financial Officer of the Company since December      2005; Senior Vice President and Financial Analysis Manager of State Bank      from 2004 to December 2005; Senior Vice President and Controller of the      Company from 2000 to 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                           |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Mark A. Klein        |   | 55     |   | President,      and Chief Executive Officer of the Company since January 2010; Director of      the Company since February 2010,  President and Chief Executive      Officer of State Bank since January 2006; Director of State Bank since      2006; Member of RFS Investment Committee since March 2007. Senior Vice      President Private Banking of Sky Bank, Toledo, Ohio from 2004 to January      2006; Vice President and Team Leader of Sky Bank, Toledo, Ohio from 2000      to 2004; Executive Vice President and Senior Lender of $450 million Sky      Bank affiliate from 1994 to 1999; 12 year Member of Defiance City School      Board of Education; Member of Defiance Area Foundation Board (non-profit);      Member of Promedica-Defiance Regional Medical Center Foundation      Board. |
|                           |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Anthony V. Cosentino |   | 48     |   | Executive      Vice President of the Company and State Bank since March      2010.  Vice President for Financial Planning and Analysis at      AmTrust Financial Corporation from June 2006 to December      2009.  Chief Financial Officer of Fifth Third Bank of      Northeastern Ohio, a subsidiary of Fifth Third Bancorp, from August 1994      to May2006.                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|                |   | Per Share    |   |   | Per Share |   |
|---------------------|--------|-------------------|--------|--------|----------------|--------|
|                |   | Sales Prices |   |   | Dividends      |   |
| 2009                |   | High              |   |   | Low            |   |   | Declared |   |
|                |   |              |   |   |           |   |   |   |   |
| First      Quarter  |   | $                 | 8.61   |   |           | $      | 7.34 |   |   | $ | .09 |   |
| Second      Quarter |   |              | 8.75   |   |           |   | 7.52 |   |   |   | .09 |   |
| Third      Quarter  |   |              | 8.10   |   |           |   | 7.00 |   |   |   | .09 |   |
| Fourth      Quarter |   |              | 8.94   |   |           |   | 6.38 |   |   |   | .09 |   |
|                |   |              |   |   |           |   |   |   |   |   |   |   |
| 2008                |   | High              |   |   | Low            |   |   | Declared |   |
|                |   |              |   |   |           |   |   |   |   |   |   |   |
| First      Quarter  |   | $                 | 12.60  |   |           | $      | 9.79 |   |   | $ | .08 |   |
| Second      Quarter |   |              | 10.96  |   |           |   | 9.52 |   |   |   | .08 |   |
| Third      Quarter  |   |              | 10.24  |   |           |   | 7.72 |   |   |   | .09 |   |
| Fourth      Quarter |   |              | 9.50   |   |           |   | 7.54 |   |   |   | .09 |   |

----

| Period                                                        |   | Total Number ofShares Purchased(1) |   |   | Average PricePaid per Share |   |   | Total Number ofShares Purchasedas Part of PubliclyAnnounced Plansor Programs |   |   | MaximumNumber (orApproximateDollar Value) ofShares that MayYet Be PurchasedUnder the Plans orPrograms (2) |   |
|---------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|--------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| October 1 through      October 31, 2009   |   |                                              | 1,461  |   |                                       | $      | 7.50   |                                                                                                                 |   |   | -                                                                                                                                                                |   |   |   | 84,346 |   |
| November 1 through      November 30, 2009 |   |                                              | -      |   |                                       | $      | -      |                                                                                                                 |   |   | -                                                                                                                                                                |   |   |   | 84,346 |   |
| December 1 through      December 31, 2009 |   |                                              | 6,486  |   |                                       | $      | 6.88   |                                                                                                                 |   |   | -                                                                                                                                                                |   |   |   | 84,346 |   |

|  | (1) | All      of the repurchased shares, other than the shares repurchased as part of      the publicly announced plan, were purchased in the open market by Reliance      Financial Services, an indirect subsidiary of the Company, in its capacity      as the administrator of the Company’s Employee Stock Ownership and Savings      Plan. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | On      July 22, 2008, the Company announced that its Board of Directors had      authorized an extension to the stock repurchase program for an additional      twelve months.  The original stock repurchase program was      announced in April, 2007 for fifteen months authorizing the purchase of      250,000 common shares.  On July 15, 2009, the Company announced      an extension of the repurchase plan for an additional fifteen      months.  As of year-end, the Company had repurchased a total of      165,654 shares at an average cost of $10.68 per  share. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Rurban      Financial Corp. |
|-----------------------------|

|                        |   | Period Ending |   |
|-----------------------------|--------|--------------------|--------|
| Index                       |   | 12/31/04           |   |   | 12/31/05 |   |   | 12/31/06 |   |   | 12/31/07 |   |   | 12/31/08 |   |   | 12/31/09 |   |
| Rurban      Financial Corp. |   |               | 100.00 |   |   |   | 86.02 |   |   |   | 80.04 |   |   |   | 94.81 |   |   |   | 59.79 |   |   |   | 56.33 |   |
| NASDAQ      Composite       |   |               | 100.00 |   |   |   | 101.37 |   |   |   | 111.03 |   |   |   | 121.92 |   |   |   | 72.49 |   |   |   | 104.31 |   |
| NASDAQ      Bank            |   |               | 100.00 |   |   |   | 95.67 |   |   |   | 106.20 |   |   |   | 82.76 |   |   |   | 62.96 |   |   |   | 51.31 |   |

| Source      : SNL Financial LC, Charlottesville, VA | (434)      977-1600 |
|-----------------------------------------------------|---------------------|
| ©      2010                                    | www.snl.com         |

----

|                                    |   | Year Ended December 31 |    |
|-----------------------------------------|--------|---------------------------------------|---------|
|                                    |   | 2009                                  |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS                                |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                    |   | $                                     | 32,591  |   |   | $ | 32,669 |   |   | $ | 33,010 |   |   | $ | 30,971 |   |   | $ | 21,422 |   |
| Interest      expense                   |   |                                  | 11,592  |   |   |   | 15,141 |   |   |   | 18,222 |   |   |   | 15,936 |   |   |   | 9,368 |   |
| Net      interest income                |   |                                  | 20,999  |   |   |   | 17,528 |   |   |   | 14,788 |   |   |   | 15,035 |   |   |   | 12,054 |   |
| Provision      for loan losses          |   |                                  | 5,738   |   |   |   | 690 |   |   |   | 521 |   |   |   | 178 |   |   |   | 583 |   |
| Noninterest      income                 |   |                                  | 29,595  |   |   |   | 28,061 |   |   |   | 26,861 |   |   |   | 23,755 |   |   |   | 18,338 |   |
| Noninterest      expense                |   |                                  | 45,134  |   |   |   | 37,557 |   |   |   | 36,637 |   |   |   | 34,904 |   |   |   | 29,054 |   |
| Provision      (credit)                 |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for      income taxes                   |   |                                  | (660    | ) |   |   | 2,125 |   |   |   | 1,234 |   |   |   | 948 |   |   |   | 81 |   |
| Net      income (loss)                  |   |                                  | 382     |   |   |   | 5,217 |   |   |   | 3,257 |   |   |   | 2,760 |   |   |   | 673 |   |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PER      SHARE DATA                     |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings                     |   | $                                     | 0.07    |   |   | $ | 1.06 |   |   | $ | 0.65 |   |   | $ | 0.55 |   |   | $ | 0.15 |   |
| Diluted      earnings                   |   |                                  | 0.07    |   |   |   | 1.06 |   |   |   | 0.65 |   |   |   | 0.55 |   |   |   | 0.15 |   |
| Cash      dividends declared            |   |                                  | 0.36    |   |   |   | 0.34 |   |   |   | 0.26 |   |   |   | 0.21 |   |   |   | 0.20 |   |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AVERAGE      BALANCES                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      shareholders’ equity |   | $                                     | 63,576  |   |   | $ | 59,964 |   |   | $ | 57,945 |   |   | $ | 54,501 |   |   | $ | 51,083 |   |
| Average      total assets               |   |                                  | 667,470 |   |   |   | 575,491 |   |   |   | 556,572 |   |   |   | 554,095 |   |   |   | 433,366 |   |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| RATIOS                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| shareholders'      equity               |   |                                  | 0.60    | % |   |   | 8.70 | % |   |   | 5.62 | % |   |   | 5.06 | % |   |   | 1.32 | % |
| Return      on average total assets     |   |                                  | 0.06    |   |   |   | 0.91 |   |   |   | 0.59 |   |   |   | 0.50 |   |   |   | 0.16 |   |
| Cash      dividend payout               |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ratio      (cash dividends              |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| divided      by net income)             |   |                                  | 458.18  |   |   |   | 32.14 |   |   |   | 40.01 |   |   |   | 38.25 |   |   |   | 133.33 |   |
| Average      shareholders'              |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equity      to average total            |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets                                  |   |                                  | 9.52    |   |   |   | 10.42 |   |   |   | 10.41 |   |   |   | 9.84 |   |   |   | 11.79 |   |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PERIOD      END TOTALS                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                       |   | $                                     | 673,049 |   |   | $ | 657,619 |   |   | $ | 561,214 |   |   | $ | 556,007 |   |   | $ | 530,542 |   |
| Total      investments and              |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| fed      funds sold                     |   |                                  | 105,083 |   |   |   | 112,606 |   |   |   | 94,661 |   |   |   | 111,562 |   |   |   | 139,353 |   |
| Total      loans and leases             |   |                                  | 452,558 |   |   |   | 450,112 |   |   |   | 389,269 |   |   |   | 370,102 |   |   |   | 327,048 |   |
| Loans      held for sale                |   |                                  | 16,858  |   |   |   | 3,824 |   |   |   | 1,650 |   |   |   | 390 |   |   |   | 224 |   |
| Total      deposits                     |   |                                  | 491,242 |   |   |   | 484,221 |   |   |   | 406,031 |   |   |   | 414,555 |   |   |   | 384,838 |   |
| Notes      Payable                      |   |                                  | 2,147   |   |   |   | 1,000 |   |   |   | 922 |   |   |   | 2,589 |   |   |   | 939 |   |
| Advances      from FHLB                 |   |                                  | 35,267  |   |   |   | 36,647 |   |   |   | 24,000 |   |   |   | 21,000 |   |   |   | 45,500 |   |
| Trust      Preferred Securities         |   |                                  | 20,620  |   |   |   | 20,620 |   |   |   | 20,620 |   |   |   | 20,620 |   |   |   | 20,620 |   |
| Shareholders'      equity               |   |                                  | 61,708  |   |   |   | 61,662 |   |   |   | 59,325 |   |   |   | 56,955 |   |   |   | 54,451 |   |
| Shareholders'      equity               |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| per      share                          |   | $                                     | 12.69   |   |   | $ | 12.63 |   |   | $ | 11.92 |   |   | $ | 11.33 |   |   | $ | 10.83 |   |

----

----

----

| Cash      and cash equivalents |   | $      | 9,226,000   |   |
|--------------------------------|--------|--------|-------------|--------|
| Investments                    |   |   | 48,774,000  |   |
| Loans                          |   |   | 43,655,000  |   |
| Core      deposits             |   |   | 1,411,000   |   |
| Goodwill                       |   |   | 7,474,000   |   |
| Premises      and equipment    |   |   | 1,678,000   |   |
| Other      assets              |   |   | 1,223,000   |   |
| Total      assets acquired     |   | $      | 113,441,000 |   |
|                           |   |   |        |   |
| Deposits                       |   | $      | 86,794,000  |   |
| Other      liabilities         |   |   | 1,417,000   |   |
| Total      liabilities assumed |   |   | 88,211,000  |   |
| Net      assets acquired       |   | $      | 25,230,000  |   |

----

|                                                       |   | Year Ended December 31, |   |
|------------------------------------------------------------|--------|----------------------------------------|--------|
| ($ 000's) (except per share data) |   | 2008                                   |   |   | 2007 |   |   | 2006 |   |
| Net      interest income                                   |   | $                                      | 21,174 |   |   | $ | 18,753 |   |   | $ | 19,121 |   |
| Net      income                                            |   | $                                      | 6,313  |   |   | $ | 4,325 |   |   | $ | 3,902 |   |
| Per      share - combined:                                 |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Basic      net income                                      |   | $                                      | 1.25   |   |   | $ | 0.86 |   |   | $ | 0.78 |   |
| Diluted      net income                                    |   | $                                      | 1.25   |   |   | $ | 0.86 |   |   | $ | 0.78 |   |

----

----

----

----

|                            |   | Year EndedDecember 31,                                           |    |   | Year EndedDecember 31, |   |
|---------------------------------|--------|----------------------------------------------------------------------------|---------|--------|----------------------------------|--------|
|                            |   | 2009                                                                       |    |   | 2008                             |   |   | % Change |   |   | 2008 |   |   | 2007 |   |   | % Change |   |
|                            |   | (dollars in thousands except per share data) |    |
|                            |   |                                                                       |    |
| Total      Assets               |   | $                                                                          | 673,049 |   |                             | $      | 657,619 |   |   |   | 2 | % |   | $ | 657,619 |   |   | $ | 561,214 |   |   |   | 17 | % |
| Total      Securities           |   |                                                                       | 105,083 |   |                             |   | 102,606 |   |   |   | 2 | % |   |   | 102,606 |   |   |   | 92,661 |   |   |   | 11 | % |
| Loans      Held for Sale        |   |                                                                       | 16,858  |   |                             |   | 3,824 |   |   |   | 341 | % |   |   | 3,824 |   |   |   | 1,650 |   |   |   | 132 | % |
| Loans      (Net)                |   |                                                                       | 445,527 |   |                             |   | 445,091 |   |   |   | 0 | % |   |   | 445,091 |   |   |   | 385,278 |   |   |   | 16 | % |
| Allowance      for Loan Losses  |   |                                                                       | 7,030   |   |                             |   | 5,020 |   |   |   | 40 | % |   |   | 5,020 |   |   |   | 3,990 |   |   |   | 26 | % |
| Total      Deposits             |   | $                                                                          | 491,242 |   |                             | $      | 484,221 |   |   |   | 1 | % |   | $ | 484,221 |   |   | $ | 406,031 |   |   |   | 19 | % |
|                            |   |                                                                       |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Revenues             |   | $                                                                          | 50,594  |   |                             | $      | 45,589 |   |   |   | 11 | % |   | $ | 45,589 |   |   | $ | 41,648 |   |   |   | 9 | % |
| Net      Interest Income        |   |                                                                       | 20,999  |   |                             |   | 17,528 |   |   |   | 20 | % |   |   | 17,528 |   |   |   | 14,787 |   |   |   | 19 | % |
| Loan      Loss Provision        |   |                                                                       | 5,738   |   |                             |   | 690 |   |   |   | 732 | % |   |   | 690 |   |   |   | 521 |   |   |   | 32 | % |
| Non-interest      Income        |   |                                                                       | 29,595  |   |                             |   | 28,061 |   |   |   | 5 | % |   |   | 28,061 |   |   |   | 26,861 |   |   |   | 4 | % |
| Non-interest      Expense       |   |                                                                       | 45,133  |   |                             |   | 37,557 |   |   |   | 20 | % |   |   | 37,557 |   |   |   | 36,637 |   |   |   | 3 | % |
| Net      Income                 |   |                                                                       | 382     |   |                             |   | 5,217 |   |   |   | -93 | % |   |   | 5,217 |   |   |   | 3,257 |   |   |   | 60 | % |
| Basic      Earnings per Share   |   | $                                                                          | 0.07    |   |                             | $      | 1.06 |   |   |   | -93 | % |   | $ | 1.06 |   |   | $ | 0.65 |   |   |   | 63 | % |
| Diluted      Earnings per Share |   | $                                                                          | 0.07    |   |                             | $      | 1.06 |   |   |   | -93 | % |   | $ | 1.06 |   |   | $ | 0.65 |   |   |   | 63 | % |

|                     |   | Year Ended                  |   |   | Year Ended   |   |
|--------------------------|--------|----------------------------------|--------|--------|-------------------|--------|
|                     |   | December 31,                |   |   | December 31, |   |
|                     |   | 2009                             |   |   | 2008              |   |   | % Change |   |   | 2008 |   |   | 2007 |   |   | % Change |   |
|                     |   | (dollars in thousands) |   |
|                     |   |                             |   |
| Net      Interest Income |   | $                                | 20,999 |   |              | $      | 17,528 |   |   |   | 20 | % |   | $ | 17,528 |   |   | $ | 14,787 |   |   |   | 19 | % |

----

|                                      |   | Year Ended                  |   |   | Year Ended   |   |
|-------------------------------------------|--------|----------------------------------|--------|--------|-------------------|--------|
|                                      |   | December 31,                |   |   | December 31, |   |
|                                      |   | 2009                             |   |   | 2008              |   |   | % Change |   |   | 2008 |   |   | 2007 |   |   | % Change |   |
|                                      |   | (dollars in thousands) |   |
|                                      |   |                             |   |
| Total      Non-interest Income            |   | $                                | 29,595 |   |              | $      | 28,061 |   |   |   | 5 | % |   | $ | 28,061 |   |   | $ | 26,861 |   |   |   | 4 | % |
|                                      |   |                             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Data      Service Fees                    |   | $                                | 18,860 |   |              | $      | 20,165 |   |   |   | -6 | % |   | $ | 20,165 |   |   | $ | 19,382 |   |   |   | 4 | % |
| Trust      Fees                           |   | $                                | 2,509  |   |              | $      | 3,082 |   |   |   | -19 | % |   | $ | 3,082 |   |   | $ | 3,385 |   |   |   | -9 | % |
| Deposit      Service Fees                 |   | $                                | 2,608  |   |              | $      | 2,416 |   |   |   | 8 | % |   | $ | 2,416 |   |   | $ | 2,244 |   |   |   | 8 | % |
| Gains      on Sale of Loans               |   | $                                | 3,355  |   |              | $      | 741 |   |   |   | 353 | % |   | $ | 741 |   |   | $ | 574 |   |   |   | 29 | % |
| Investment      Securities Recoveries     |   | $                                | -      |   |              | $      | 197 |   |   |   | N/A |   |   | $ | 197 |   |   | $ | - |   |   |   | N/A |   |
| Net      Proceeds from VISA IPO           |   | $                                | -      |   |              | $      | 132 |   |   |   | N/A |   |   | $ | 132 |   |   | $ | - |   |   |   | N/A |   |
| Gains      (losses) on Sale of Securities |   | $                                | 960    |   |              | $      | - |   |   |   | N/A |   |   | $ | - |   |   | $ | 2 |   |   |   | N/A |   |
| Other                                     |   | $                                | 1,304  |   |              | $      | 1,328 |   |   |   | -2 | % |   | $ | 1,328 |   |   | $ | 1,274 |   |   |   | 4 | % |

----

----

|                   |   | Year Ended                  |   |   | Year Ended   |   |
|------------------------|--------|----------------------------------|--------|--------|-------------------|--------|
|                   |   | December 31,                |   |   | December 31, |   |
|                   |   | 2009                             |   |   | 2008              |   |   | % Change |   |   | 2008 |   |   | 2007 |   |   | % Change |   |
|                   |   | (dollars in thousands) |   |
|                   |   |                             |   |
| Data      Service Fees |   | $                                | 18,860 |   |              | $      | 20,165 |   |   |   | -6 | % |   | $ | 20,165 |   |   | $ | 19,382 |   |   |   | 4 | % |

|                                  |   | Year Ended                  |   |   | Year Ended   |   |
|---------------------------------------|--------|----------------------------------|--------|--------|-------------------|--------|
|                                  |   | December 31,                |   |   | December 31, |   |
|                                  |   | 2009                             |   |   | 2008              |   |   | % Change |   |   | 2008 |   |   | 2007 |   |   | % Change |   |
|                                  |   | (dollars in thousands) |   |
|                                  |   |                             |   |
| Total      Non-interest Expense       |   | $                                | 45,133 |   |              | $      | 37,557 |   |   |   | 20 | % |   | $ | 37,557 |   |   | $ | 36,637 |   |   |   | 3 | % |
|                                  |   |                             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      & Employee Benefits |   | $                                | 21,035 |   |              | $      | 17,318 |   |   |   | 21 | % |   | $ | 17,318 |   |   | $ | 17,007 |   |   |   | 2 | % |
| Professional      Fees                |   | $                                | 2,891  |   |              | $      | 1,859 |   |   |   | 56 | % |   | $ | 1,859 |   |   | $ | 2,227 |   |   |   | -17 | % |
| All      Other                        |   | $                                | 21,207 |   |              | $      | 18,380 |   |   |   | 15 | % |   | $ | 18,380 |   |   | $ | 17,403 |   |   |   | 6 | % |

----

|                     |   |                   |    |   | %      of |   |   |       |   |   | %      of |   |   |        %        |   |   |       |   |   | %      of |   |   |        %        |   |
|--------------------------|--------|------------------------|---------|--------|-----------|--------|--------|------------|--------|--------|-----------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|-----------|--------|--------|---------------------------------------------------------------------------------------|--------|
|                     |   | 12/31/2009             |    |   | Total     |   |   | 12/31/2008 |   |   | Total     |   |   | Inc/(Dec)                                                                             |   |   | 12/31/2007 |   |   | Total     |   |   | Inc/(Dec)                                                                             |   |
|                     |   | (dollars in thousands) |    |
|                     |   |                   |    |   |      |   |   |       |   |   |      |   |   |                                                                                  |   |   |       |   |   |      |   |   |                                                                                  |   |   |   |   |   |   |   |   |   |
| Commercial               |   | $                      | 84,643  |   |      |   | 19     | %          |   | $      | 83,645    |   |   |                                                                                  | 19     | %      |       |   | 1      | %         |   | $      | 83,049                                                                                |   |   |   | 21 | % |   |   | 1 | % |
| Commercial      R.E.     |   |                   | 179,909 |   |      |   | 39     | %          |   |   | 161,566   |   |   |                                                                                  | 35     | %      |       |   | 11     | %         |   |   | 126,785                                                                               |   |   |   | 33 | % |   |   | 27 | % |
| Agricultural             |   |                   | 41,485  |   |      |   | 9      | %          |   |   | 43,641    |   |   |                                                                                  | 10     | %      |       |   | -5     | %         |   |   | 43,369                                                                                |   |   |   | 11 | % |   |   | 1 | % |
| Residential              |   |                   | 92,972  |   |      |   | 21     | %          |   |   | 107,905   |   |   |                                                                                  | 24     | %      |       |   | -14    | %         |   |   | 84,621                                                                                |   |   |   | 22 | % |   |   | 28 | % |
| Consumer                 |   |                   | 53,655  |   |      |   | 12     | %          |   |   | 53,339    |   |   |                                                                                  | 12     | %      |       |   | 1      | %         |   |   | 51,357                                                                                |   |   |   | 13 | % |   |   | 4 | % |
| Leases                   |   |                   | 221     |   |      |   | 0      | %          |   |   | 266       |   |   |                                                                                  | 0      | %      |       |   | -17    | %         |   |   | 330                                                                                   |   |   |   | 0 | % |   |   | -19 | % |
| Loans                    |   | $                      | 452,885 |   |      |   |   |       |   | $      | 450,362   |   |   |                                                                                  |   |   |       |   | 1      | %         |   | $      | 389,511                                                                               |   |   |   |   |   |   |   | 16 | % |
|                     |   |                   |    |   |      |   |   |       |   |   |      |   |   |                                                                                  |   |   |       |   |   |      |   |   |                                                                                  |   |   |   |   |   |   |   |   |   |
| Loans      held for sale |   |                   | 16,858  |   |      |   |   |       |   |   | 3,824     |   |   |                                                                                  |   |   |       |   |   |      |   |   | 1,650                                                                                 |   |   |   |   |   |   |   |   |   |
| Total                    |   | $                      | 469,743 |   |      |   |   |       |   | $      | 454,186   |   |   |                                                                                  |   |   |       |   |   |      |   | $      | 391,161                                                                               |   |   |   |   |   |   |   |   |   |

----

|                                    |   | Period Ended December 31,  |   |
|-----------------------------------------|--------|----------------------------|--------|
|                                    |   | (dollars      in millions) |   |
|                                    |   |                       |   |   |   |   |   | Change      in |   |   |   |   |   | Change      in |   |
|                                    |   |                       |   |   |   |   |   | Dollars      / |   |   |   |   |   | Dollars      / |   |
|                                    |   | 12/31/2009                 |   |   | 12/31/2008 |   |   | Percentages |   |   | 12/31/2007 |   |   | Percentages |   |
|                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing      loans               |   | $                          | 18.5   |   |   | $ | 5.2 |   |   | $ | 13.3 |   |   | $ | 6.0 |   |   | $ | (0.8 | ) |
| Non-performing      assets              |   | $                          | 20.3   |   |   | $ | 6.6 |   |   | $ | 13.7 |   |   | $ | 6.2 |   |   | $ | 0.4 |   |
| Non-performing      assets/total assets |   |                       | 3.02   | % |   |   | 1.00 | % |   |   | 2.02 | % |   |   | 1.10 | % |   |   | -0.10 | % |
| Net      charge-offs                    |   | $                          | 3.8    |   |   | $ | 0.8 |   |   | $ | 3.0 |   |   | $ | 0.2 |   |   | $ | 0.6 |   |
| Net      charge-offs/total loans        |   |                       | 0.84   | % |   |   | 0.19 | % |   |   | 0.65 | % |   |   | 0.07 | % |   |   | 0.12 | % |
| Loan      loss provision                |   | $                          | 5.7    |   |   | $ | 0.7 |   |   | $ | 5.0 |   |   | $ | 0.5 |   |   | $ | 0.2 |   |
| Allowance      for loan losses          |   | $                          | 7.0    |   |   | $ | 5.0 |   |   | $ | 2.0 |   |   | $ | 4.0 |   |   | $ | 1.0 |   |
| Allowance/loans                         |   |                       | 1.55   | % |   |   | 1.12 | % |   |   | 0.43 | % |   |   | 1.03 | % |   |   | 0.09 | % |
| Allowance/non-performing      loans     |   |                       | 38     | % |   |   | 97 | % |   |   | -59 | % |   |   | 67 | % |   |   | 30 | % |
| Allowance/non-performing      assets    |   |                       | 35     | % |   |   | 76 | % |   |   | -42 | % |   |   | 65 | % |   |   | 11 | % |

----

----

----

|                               |   | Payment due by period |        |
|------------------------------------|--------|-----------------------|-------------|
|                               |   |                  |        |   | Less      than 1 |   |   |   |   |   |   |   |   | More than 5 |   |
| Contractual Obligations            |   | Total                 |        |   | year |   |   | 1      - 3 years |   |   | 3      - 5 years |   |   | years |   |
|                               |   |                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term      Debt Obligations    |   | $                     | 36,646,854  |   |   | $ | 9,082,228 |   |   | $ | 25,925,752 |   |   | $ | 1,638,874 |   |   | $ | - |   |
| Other      Debt Obligations        |   |                  | 21,620,000  |   |   |   | 1,000,000 |   |   |   | - |   |   |   | - |   |   |   | 20,620,000 |   |
| Operating      Lease Obligations   |   |                  | 2,143,078   |   |   |   | 447,183 |   |   |   | 652,283 |   |   |   | 423,200 |   |   |   | 620,412 |   |
| Other      Long-Term Liabilities   |   |                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reflected      on the Registrant's |   |                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      Sheet under GAAP      |   |                  | 242,516,203 |   |   |   | 158,844,618 |   |   |   | 69,090,559 |   |   |   | 12,155,618 |   |   |   | 2,425,408 |   |
| Total                              |   | $                     | 302,926,135 |   |   | $ | 169,374,029 |   |   | $ | 95,668,594 |   |   | $ | 14,217,692 |   |   | $ | 23,665,820 |   |

----

----

----

|                                        |   | 2010   |    |   | 2011   |   |    | 2012   |   |   | 2013    |   |   | 2014   |   |   | Thereafter |   |   | Total  |   |
|---------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
| Rate      Sensitive Assets                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |       |   |   |   |   |
| Variable      Rate Loans                    |   | $      | 42,100  |   |   | $      | 16,581  |   |   | $      | 9,237   |   |   | $      | 5,774  |   |       | $      | 4,477  |   |   | $ | 8,046 |   |   | $ | 86,215 |   |
| Average      interest rate                  |   |   | 4.51    | %      |   |   | 4.13    | %      |   |   | 4.06    | %      |   |   | 4.05   | %      |       |   | 4.15   | %      |   |   | 3.80 | % |   |   | 4.28 | % |
| Adjustable      Rate Loans                  |   | $      | 41,768  |   |   | $      | 34,173  |   |   | $      | 25,010  |   |   | $      | 20,662 |   |       | $      | 19,345 |   |   | $ | 72,132 |   |   | $ | 213,090 |   |
| Average      interest rate                  |   |   | 5.83    | %      |   |   | 5.91    | %      |   |   | 5.97    | %      |   |   | 5.99   | %      |       |   | 5.67   | %      |   |   | 5.92 | % |   |   | 5.89 | % |
| Fixed      Rate Loans                       |   | $      | 65,063  |   |   | $      | 36,623  |   |   | $      | 22,371  |   |   | $      | 12,122 |   |       | $      | 9,950  |   |   | $ | 23,983 |   |   | $ | 170,111 |   |
| Average      interest rate                  |   |   | 5.85    | %      |   |   | 6.35    | %      |   |   | 5.98    | %      |   |   | 6.01   | %      |       |   | 5.92   | %      |   |   | 3.52 | % |   |   | 5.66 | % |
| Total      Loans                            |   | $      | 148,931 |   |   | $      | 87,377  |   |   | $      | 56,618  |   |   | $      | 38,558 |   |       | $      | 33,772 |   |   | $ | 104,161 |   |   | $ | 469,416 |   |
| Average      interest rate                  |   |   | 5.46    | %      |   |   | 5.76    | %      |   |   | 5.66    | %      |   |   | 5.71   | %      |       |   | 5.54   | %      |   |   | 5.20 | % |   |   | 5.51 | % |
| Fixed      rate investment securities       |   | $      | 29,984  |   |   | $      | 16,468  |   |   | $      | 8,766   |   |   | $      | 3,928  |   |       | $      | 2,194  |   |   | $ | 30,383 |   |   | $ | 91,723 |   |
| Average      interest rate                  |   |   | 5.31    | %      |   |   | 5.58    | %      |   |   | 5.65    | %      |   |   | 5.25   | %      |       |   | 4.34   | %      |   |   | 4.38 | % |   |   | 5.06 | % |
| Variable      rate investment securities    |   | $      | 9,197   |   |   | $      | 160     |   |   | $      | 168     |   |   | $      | 136    |   |       | $      | 132    |   |   | $ | 7,315 |   |   | $ | 17,108 |   |
| Average      interest rate                  |   |   | 0.52    | %      |   |   | 3.97    | %      |   |   | 3.98    | %      |   |   | 3.84   | %      |       |   | 3.79   | %      |   |   | 4.78 | % |   |   | 2.46 | % |
| Fed      Funds Sold & Other             |   | $      | -       |   |   | $      | -       |   |   | $      | -       |   |   | $      | -      |   |       | $      | -      |   |   | $ | - |   |   | $ | - |   |
| Average      interest rate                  |   |   | 0.00    | %      |   |   | 0.00    | %      |   |   | 0.00    | %      |   |   | 0.00   | %      |       |   | 0.00   | %      |   |   | 0.00 | % |   |   | 0.00 | % |
| Total      Rate Sensitive Assets            |   | $      | 188,112 |   |   | $      | 104,005 |   |   | $      | 65,552  |   |   | $      | 42,622 |   |       | $      | 36,098 |   |   | $ | 141,859 |   |   | $ | 578,247 |   |
| Average      interest rate                  |   |   | 5.20    | %      |   |   | 5.73    | %      |   |   | 5.66    | %      |   |   | 5.66   | %      |       |   | 5.46   | %      |   |   | 5.00 | % |   |   | 5.35 | % |
|                                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Rate      Sensitive Liabilities             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Demand      - Non Interest Bearing          |   | $      | 11,463  |   |   | $      | 11,463  |   |   | $      | 11,463  |   |   | $      | 11,463 |   |       | $      | 11,378 |   |   | $ | - |   |   | $ | 57,230 |   |
| Demand      - Interest Bearing              |   | $      | 17,532  |   |   | $      | 17,532  |   |   | $      | 17,532  |   |   | $      | 17,532 |   |       | $      | 17,384 |   |   | $ | - |   |   | $ | 87,512 |   |
| Average      interest rate                  |   |   | 0.16    | %      |   |   | 0.16    | %      |   |   | 0.16    | %      |   |   | 0.16   | %      |       |   | 0.16   | %      |   |   | 0.00 | % |   |   | 0.16 | % |
| Money      Market Accounts                  |   | $      | 17,364  |   |   | $      | 17,364  |   |   | $      | 17,364  |   |   | $      | 17,364 |   |       | $      | 17,166 |   |   | $ | - |   |   | $ | 86,622 |   |
| Average      interest rate                  |   |   | 0.45    | %      |   |   | 0.45    | %      |   |   | 0.45    | %      |   |   | 0.45   | %      |       |   | 0.45   | %      |   |   | 0.00 | % |   |   | 0.45 | % |
| Savings                                     |   | $      | 8,673   |   |   | $      | 8,496   |   |   | $      | 8,496   |   |   | $      | 8,496  |   |       | $      | 9,160  |   |   | $ | - |   |   | $ | 43,321 |   |
| Average      interest rate                  |   |   | 0.26    | %      |   |   | 0.26    | %      |   |   | 0.26    | %      |   |   | 0.26   | %      |       |   | 0.26   | %      |   |   | 0.00 | % |   |   | 0.26 | % |
| Certificates      of Deposit                |   | $      | 136,074 |   |   | $      | 41,363  |   |   | $      | 28,922  |   |   | $      | 3,699  |   |       | $      | 4,284  |   |   | $ | 2,215 |   |   | $ | 216,557 |   |
| Average      interest rate                  |   |   | 2.00    | %      |   |   | 2.41    | %      |   |   | 3.04    | %      |   |   | 3.68   | %      |       |   | 2.09   | %      |   |   | 3.40 | % |   |   | 2.26 | % |
| Fixed      rate FHLB Advances               |   | $      | 11,000  |   |   | $      | 11,709  |   |   | $      | 1,549   |   |   | $      | 5,008  |   |       | $      | 6,000  |   |   | $ | - |   |   | $ | 35,266 |   |
| Average      interest rate                  |   |   | 5.38    | %      |   |   | 4.24    | %      |   |   | 3.26    | %      |   |   | 3.25   | %      |       |   | 2.92   | %      |   |   | 0.00 | % |   |   | 4.18 | % |
| Variable      rate FHLB Advances            |   | $      | -       |   |   | $      | -       |   |   | $      | -       |   |   | $      | -      |   |       | $      | -      |   |   | $ | - |   |   | $ | - |   |
| Average      interest rate                  |   |   | 0.00    | %      |   |   | 0.00    | %      |   |   | 0.00    | %      |   |   | 0.00   | %      |       |   | 0.00   | %      |   |   | 0.00 | % |   |   | 0.00 | % |
| Fixed      rate Notes Payable               |   | $      | 996     |   |   | $      | 996     |   |   | $      | 155     |   |   | $      | -      |   |       | $      | -      |   |   | $ | 10,310 |   |   | $ | 12,457 |   |
| Average      interest rate                  |   |   | 6.50    | %      |   |   | 6.50    | %      |   |   | 6.50    | %      |   |   | 0.00   | %      |       |   | 0.00   | %      |   |   | 10.60 | % |   |   | 9.89 | % |
| Variable      rate Notes Payable            |   | $      | -       |   |   | $      | -       |   |   | $      | -       |   |   | $      | -      |   |       | $      | -      |   |   | $ | 10,310 |   |   | $ | 10,310 |   |
| Average      interest rate                  |   |   | 0.00    | %      |   |   | 0.00    | %      |   |   | 0.00    | %      |   |   | 0.00   | %      |       |   | 0.00   | %      |   |   | 4.12 | % |   |   | 4.12 | % |
| Fed      Funds Purchased, Repos & Other |   | $      | 17,043  |   |   | $      | 15,000  |   |   | $      | 20,000  |   |   | $      | -      |   |       | $      | -      |   |   | $ | - |   |   | $ | 52,043 |   |
| Average      interest rate                  |   |   | 0.40    | %      |   |   | 4.77    | %      |   |   | 4.74    | %      |   |   | 0.00   | %      |       |   | 0.00   | %      |   |   | 0.00 | % |   |   | 3.33 | % |
| Total      Rate Sensitive Liabilities       |   | $      | 220,145 |   |   | $      | 123,923 |   |   | $      | 105,481 |   |   | $      | 63,562 |   |       | $      | 65,372 |   |   | $ | 22,835 |   |   | $ | 601,318 |   |
| Average      interest rate                  |   |   | 1.62    | %      |   |   | 1.94    | %      |   |   | 1.91    | %      |   |   | 0.67   | %      |       |   | 0.60   | %      |   |   | 6.98 | % |   |   | 1.73 | % |

----

|                                   |   | First  |    |   | Years  |   |    |       |   |   |    |   |
|----------------------------------------|--------|--------|---------|--------|--------|--------|---------|------------|--------|--------|---------|--------|
| Comparison      of 2009 to 2008        |   | Year   |    |   | 2 - 5  |   |    | Thereafter |   |   | Total   |   |
| Total      Rate Sensitive Assets:      |   |   |    |   |   |   |    |       |   |   |    |   |   |
| At      December 31, 2009              |   | $      | 188,112 |   |   | $      | 248,276 |       |   | $      | 141,859 |   |   | $ | 578,247 |   |
| At      December 31, 2008              |   |   | 182,795 |   |   |   | 227,333 |       |   |   | 160,659 |   |   |   | 570,787 |   |
| Increase      (decrease)               |   | $      | 5,317   |   |   | $      | 20,943  |       |   | $      | (18,800 | )      |   | $ | 7,460 |   |
|                                   |   |   |    |   |   |   |    |       |   |   |    |   |   |   |   |   |
| Total      Rate Sensitive Liabilities: |   |   |    |   |   |   |    |       |   |   |    |   |   |   |   |   |
| At      December 31, 2009              |   | $      | 220,145 |   |   | $      | 358,338 |       |   | $      | 22,835  |   |   | $ | 601,318 |   |
| At      December 31, 2008              |   |   | 220,481 |   |   |   | 338,260 |       |   |   | 27,173  |   |   |   | 585,914 |   |
| Increase      (decrease)               |   | $      | (336    | )      |   | $      | 20,078  |       |   | $      | (4,338  | )      |   | $ | 15,404 |   |

----

|   | · | information      required to be disclosed by the Company in this Annual Report on Form 10-K      and the other reports that the Company files or submits under the Exchange      Act would be accumulated and communicated to the Company’s management,      including its principal executive officer and principal financial officer,      as appropriate to allow timely decisions regarding required      disclosure; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | information      required to be disclosed by the Company in this Annual Report on Form 10-K      and the other reports that the Company files or submits under the Exchange      Act would be recorded, processed, summarized and reported within the time      periods specified in the SEC’s rules and forms;  and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      Company’s disclosure controls and procedures were effective as of the end      of the fiscal year covered by this Annual Report on Form    10-K. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                      |         |                             |    |   |                          |   |   | Number of securities              |   |
|---------------------------------------------------------------------------|--------------|----------------------------------|---------|--------|-------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                      |         | Number of securities   |    |   |                          |   |   | remaining available for           |   |
|                                                                      |         | to be issued upon |    |   | Weighted-average              |   |   | future issuance under equity |   |
|                                                                      |         | exercise of                 |    |   | exercise price of   |   |   | compensation plans                     |   |
|                                                                      |         | outstanding options,        |    |   | outstanding options,     |   |   | (excluding securities                  |   |
| Plan category                                                        |         | warrants and rights    |    |   | warrants and rights |   |   | reflected in column (a)      |   |
|                                                                      |    |                             |    |   |                          |   |   |                                        |   |   |   |   |
| Equity      compensation plans approved by security      holders     |         |                             | 311,213 | (1)    |                          | $      | 12.58  |                                        |   |   | 238,500 | (2) |
|                                                                      |         |                             |    |   |                          |   |   |                                        |   |   |   |   |
| Equity      compensation plans not approved by      security holders |         |                             | N/A     |   |                          |   | N/A    |                                        |   |   | N/A |   |

----

| (1) | Does      not include "tandem" SARs awards under the 1997 Plan in connection with      the grant of the same number of nonqualified stock options. A total of      28,000 "tandem" SARs, with a weighted-average price of $13.68, were outstanding as of December      31, 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents      common shares of the Company remaining available for future issuance under      the 2008 Plan (subject to certain adjustments). The 1997 Plan expired in      accordance with its terms on March 12, 2007, and no additional stock      options, stock appreciation rights or other awards my be granted under the      1997 Plan. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)      (1) | Financial      Statements. |
|--------------|----------------------------|

| (a) (2) | Financial Statement      Schedules. |
|--------------|-------------------------------------|

| Exhibit No. |   | Description                                                                                                                                                                                                   |   | Location                                                                                                                                                                                    |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 2.1              |   | Agreement      and Plan of Merger, dated as of May 22, 2008, by and among Rurban      Financial Corp., Rurban Merger Corp, and NBM Bancorp,      Incorporated                                                 |   | Incorporated      herein by reference to Exhibit 2.1 to the Company’s Current Report on Form      8-K filed May 23, 2008 (File No. 0-13507).                                          |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 2.2              |   | Agreement      and Plan of Merger, dated as of April 25, 2009, by and among Rurbanc Data      Services, Inc., NC Merger Corp. and New Core Holdings,Inc.                                                      |   | Incorporated      herein by reference to Exhibit 2.1 to the Company’s Current Report on Form      8-K filed April 29, 2009 (File No. 0-13507).                                        |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 2.3              |   | First      Amendment to Agreement and Plan of Merger, dated as of December 29, 2009,      by and among Rurbanc Data Services, Inc., NC Merger Corp. and New Core      Holdings, Inc.                          |   | Filed      herewith.                                                                                                                                                                        |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.1              |   | Amended      Articles of Registrant, as amended                                                                                                                                                               |   | Incorporated      herein by reference to Exhibit 3(a)(i) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1989 (File No.      0-13507).   |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.2              |   | Certificate      of Amendment to the Amended Articles of Rurban Financial    Corp.                                                                                                                            |   | Incorporated      herein by reference to Exhibit 3(b) to the Company’s Annual Report on Form      10-K for the fiscal year ended December 31, 1993 (File No.      0-13507). |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.3              |   | Certificate      of Amendment to the Amended Articles of Rurban Financial    Corp.                                                                                                                            |   | Incorporated      herein by reference to Exhibit 3(c) to the Company’s Annual Report on Form      10-K for the fiscal year ended December 31, 1997 (File No.      0-13507). |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.4              |   | Amended      and Restated Articles of Rurban Financial Corp. [Note: filed for purposes of      SEC reporting compliance only – this document has not been filed with the      Ohio Secretary of State.] |   | Filed      herewith.                                                                                                                                                                        |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                      |   | Location                                                                                                                                                                                           |
|------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 3.5              |   | Amended      and Restated Regulations of Rurban Financial Corp.                                                                                                                                                                  |   | Incorporated      herein by reference to Exhibit 3.5 to the Company’s Annual Report on Form      10-K for the fiscal year ended December 31, 2005 (File No.      0-13507).                   |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 3.6              |   | Certificate      Regarding Adoption of Amendment to Section 2.01 of the Amended and      Restated Regulations of Rurban Financial Corp. by the Shareholders on      April 16, 2009                                               |   | Incorporated      herein by reference to Exhibit 3.1 to the Company’s Current Report on Form      8-K filed April 22, 2009 (File No. 0-13507).                                               |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.1              |   | Indenture,      dated as of September 15, 2005, by and between Rurban Financial Corp. and      Wilmington Trust Company, as Debenture Trustee, relating to Floating Rate      Junior Subordinated Deferrable Interest Debentures |   | Incorporated      herein by reference to Exhibit 4.1 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended September 30, 2005 (File No.      0-13507).          |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.2              |   | Amended      and Restated Declaration of Trust of Rurban Statutory Trust II, dated as      of September 15, 2005                                                                                                                 |   | Incorporated      herein by reference to Exhibit 4.2 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended September 30, 2005 (File No.      0-13507).          |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.3              |   | Guarantee      Agreement, dated as of September 15, 2005, by and between Rurban Financial      Corp. and Wilmington Trust Company, as Guarantee Trustee                                                                          |   | Incorporated      herein by reference to Exhibit 4.3 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended September 30, 2005 (File No.      0-13507).          |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.4              |   | Agreement      to furnish instruments and agreements defining rights of holders of      long-term debt                                                                                                                           |   | Filed      herewith.                                                                                                                                                                               |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.1*       |   | Rurban      Financial Corp. Plan to Allow Directors to Elect to Defer      Compensation                                                                                                                                          |   | Incorporated      herein by reference to Exhibit 10(v) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1996 (File      No.  0-13507). |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.2*            |   | Rurban      Financial Corp. 1997 Stock Option Plan                                                                                                                                                                               |   | Incorporated      herein by reference to Exhibit 10(v) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1996 (File No.      0-13507).                 |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.3*            |   | Form      of Non-Qualified Stock Option Agreement with Five-Year Vesting under      Rurban Financial Corp. 1997 Stock Option Plan                                                                                                |   | Incorporated      herein by reference to Exhibit 10(w) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1997 (File No.      0-13507).       |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.4*            |   | Form      of Non-Qualified Stock Option Agreement with Vesting After One Year of      Employment under Rurban Financial Corp. 1997 Stock Option    Plan                                                                          |   | Incorporated      herein by reference to Exhibit 10(a) to the Company’s Current Report on      Form 8-K filed March 21, 2005 (File No. 0-13507).                                             |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.5*            |   | Form      of Incentive Stock Option Agreement with Five-Year Vesting under Rurban      Financial Corp. 1997 Stock Option Plan                                                                                                    |   | Incorporated      herein by reference to Exhibit 10(x) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1997 (File No.      0-13507).       |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                                  |   | Location                                                                                                                                                                              |
|------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.6*            |   | Form      of Incentive Stock Option Agreement with Vesting After One Year of      Employment under Rurban Financial Corp. 1997 Stock Option    Plan                                                                                          |   | Incorporated      herein by reference to Exhibit 10(c) to the Company’s Current Report on      Form 8-K filed March 21, 2005 (File No. 0-13507).                                |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.7*       |   | Form      of Stock Appreciation Rights under Rurban Financial Corp. 1997 Stock      Option Plan                                                                                                                                         |   | Incorporated      herein by reference to Exhibit 10(b) to the Company’s Current Report on      Form 8-K filed March 21, 2005 (File No. 0-13507).                                |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.8*            |   | Rurban      Financial Corp. 2008 Stock Incentive Plan                                                                                                                                                                                        |   | Incorporated      herein by reference to Exhibit 10 to the Company’s Current Report on Form      8-K filed April 22, 2008 (File No. 0-13507).                                   |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.9*       |   | Form      of Restricted Stock Award Agreement (For Employees) under Rurban Financial      Corp. 2008 Stock Option Plan                                                                                                                       |   | In      Incorporated herein by reference to Exhibit 10.2 to the Company’s Current      Report on Form 8-K filed April 22, 2008 (File No.  0-13507).                             |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.10*           |   | Employees’      Stock Ownership and Savings Plan of Rurban Financial Corp.                                                                                                                                                             |   | Incorporated      herein by reference to Exhibit 10(y) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1999 (File No.      0-13507).    |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.11*           |   | Rurban      Financial Corp. Employee Stock Purchase Plan                                                                                                                                                                                     |   | Incorporated      herein by reference to Exhibit 10(z) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 2002 (File No.      0-13507).    |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.12*           |   | Employment      Agreement, executed March 6, 2006 and effective as of March 1, 2006, by      and between Rurban Financial Corp. and Kenneth A. Joyce                                                                                         |   | Incorporated      herein by reference to Exhibit 10.10 to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 2005 (File No.      0-13507).    |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.13*           |   | First      Amendment to Employment Agreement, executed May 19, 2006 and effective as      of March 1, 2006, by and between Rurban Financial Corp. and Kenneth A.      Joyce                                                                  |   | Incorporated      herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended June 30, 2006 (File No.      0-13507). |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.14*      |   | Second      Amendment to Employment Agreement, effective as of December 31, 2008, by      and between Rurban Financial Corp. and Kenneth A. Joyce                                                                                            |   | Incorporated      herein by reference to Exhibit 10.14 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).  |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.15*      |   | Amended      and Restated Supplemental Executive Retirement Plan Agreement, effective      as of December 31, 2008, by and between Rurban Financial Corp. and Kenneth      A. Joyce                                                          |   | Filed      herewith.                                                                                                                                                                  |
|             |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                  |
| 10.16*           |   | Schedule      dated December 31, 2008 identifying other substantially identical Amended      and Restated Supplemental Executive Retirement Plan Agreements with      executive officers of Rurban Financial Corp. and its      subsidiaries |   | Incorporated      herein by reference to Exhibit 10.16 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).  |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                   |   | Location                                                                                                                                                                                  |
|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 10.17*           |   | First      Amendment to Amended and Restated Supplemental Executive Retirement Plan      Agreement, dated as April 20, 2009, by and between Rurban Financial Corp.      and Mark A. Klein                                     |   | Incorporated      herein by reference to Exhibit 10.3 to the Company’s Current Report on      Form 8-K filed April 22, 2009 (File No. 0-13507).                                     |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 10.18*           |   | Amended      and Restated Change in Control Agreement, effective as of December 31,      2008, by and between Rurban Financial Corp. and Duane L.    Sinn                                                                     |   | Incorporated      herein by reference to Exhibit 10.17 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 10.19*           |   | Schedule      dated  December 31, 2008 identifying other substantially      identical Amended and Restated Change in Control Agreements with executive      officers of Rurban Financial Corp. and its subsidiaries |   | Incorporated      herein by reference to Exhibit 10.18 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 10.20            |   | Form      of Incentive Stock Option Agreement with Five-Year Vesting under Rurban      Financial Corp. 2008 Stock Incentive Plan                                                                                              |   | Filed      herewith.                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 10.21            |   | Form      of Non-Qualified Stock Option Agreement with Five-Year Vesting under      Rurban Financial Corp. 2008 Stock Incentive Plan                                                                                          |   | Filed      herewith.                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 10.22*           |   | Non-Qualified      Deferred Compensation Plan effective as of January 1, 2007                                                                                                                                                 |   | Incorprated      herein by reference to Exhibit 10.20 to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 2006 (File No.      0-13507)          |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 10.23            |   | Separation      and Distribution Agreement, dated as of December 11, 2009,  by      and between Rurban Financial Corp. and Rurbanc Data Services,      Inc.                                                         |   | Filed      herewith.                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 11               |   | Statement      re: Computation of Per Share Earnings                                                                                                                                                                          |   | Included      in Note 1 of the Notes to  Consolidated Financial      Statements of Registrant in the financial statements portion of this      Annual Report on Form 10-K. |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 21               |   | Subsidiaries      of Registrant                                                                                                                                                                                               |   | Filed      herewith.                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 23               |   | Consent      of BKD, LLP                                                                                                                                                                                                      |   | Filed      herewith.                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 24               |   | Power      of Attorney of Directors and Executive Officers                                                                                                                                                                    |   | Included      on signature page of this Annual Report on Form 10-K                                                                                                                        |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 31.1             |   | Rule      13a-14(a)/15d-14(a) Certification – Principal Executive      Officer                                                                                                                                          |   | Filed      herewith.                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 31.2             |   | Rule      13a-14(a)/15d-14(a) Certification – Principal Financial      Officer                                                                                                                                          |   | Filed      herewith.                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                          |   |                                                                                                                                                                                      |
| 32.1             |   | Section      1350 Certification – Principal Executive Officer and Principal Financial      Officer                                                                                                                      |   | Filed      herewith.                                                                                                                                                                      |

----

|                                                               |   | RURBAN      FINANCIAL CORP. |
|--------------------------------------------------------------------|--------|-----------------------------|
|                                                               |   |                        |
|                                                               |   | By:                         | /s/ Duane L. Sinn |
| Date:            March 17,      2010 |   |                        | Duane      L. Sinn, Executive Vice President and |
|                                                               |   |                        | Chief      Financial Officer |

| Name                  |   | Date           |   | Capacity                                                  |
|-----------------------|--------|----------------|--------|-----------------------------------------------------------|
|                  |   |           |   |                                                      |
| /s/ Kenneth A, Joyce  |   | March 17, 2010 |   | Executive      Vice Chairman, and Director                |
| Kenneth      A. Joyce |   |           |   |                                                      |
|                  |   |           |   |                                                      |
| /s/ Duane L. Sinn     |   | March 17, 2010 |   | Executive      Vice President and Chief Financial Officer |
| Duane      L. Sinn    |   |           |   |                                                      |
|                  |   |           |   |                                                      |
| /s/ Thomas A. Buis    |   | March 17, 2010 |   | Director                                                  |
| Thomas      A. Buis   |   |           |   |                                                      |
|                  |   |           |   |                                                      |
| /s/ Thomas M. Callan  |   | March 17, 2010 |   | Director                                                  |
| Thomas      M. Callan |   |           |   |                                                      |

----

| /s/ John R. Compo                          |   | March 17, 2010 |   | Director |
|--------------------------------------------|--------|----------------|--------|----------|
| John      R. Compo                         |   |           |   |     |
|                                       |   |           |   |     |
| /s/ Robert A. Fawcett, Jr.                 |   | March 17, 2010 |   | Director |
| Robert      A. Fawcett, Jr.                |   |           |   |     |
|                                       |   |           |   |     |
| /s/ Richard L. Hardgrove                   |   | March 17, 2010 |   | Director |
| Richard      L. Hardgrove                  |   |           |   |     |
|                                       |   |           |   |     |
| /s/ Rita A. Kissner                        |   | March 17, 2010 |   | Director |
| Rita      A. Kissner                       |   |           |   |     |
|                                       |   |           |   |     |
| /s/ Thomas L. Sauer                        |   | March 17, 2010 |   | Director |
| Thomas      L. Sauer                       |   |           |   |     |
|                                       |   |           |   |     |
| /s/ Steven D. VanDemark                    |   | March 17, 2010 |   | Director |
| Steven      D. VanDemark                   |   |           |   |     |
|                                       |   |           |   |     |
| /s/ J. Michael Walz, D.D.S.                |   | March 17, 2010 |   | Director |
| J.      Michael Walz, D.D.S                |   |           |   |     |
|                                       |   |           |   |     |
| /s/ Mark A. Klein                          |   | March 17, 2010 |   | Director |
| Mark      A. Klein                         |   |           |   |     |
|                                       |   |           |   |     |
| /s/Gaylyn J. Finn                          |   | March 17, 2010 |   | Director |
| Gaylyn      J. Finn                        |   |           |   |     |
|                                       |   |           |   |     |
| Date:   March 17,      2010 |   |           |   |     |

----

| Management’s      Report on Internal Control Over Financial Reporting | F-      0        |
|-----------------------------------------------------------------------------|------------------|
|                                                                        |             |
| Report      of Independent Registered Public Accounting Firm                | F-1              |
|                                                                        |             |
| Consolidated      Financial Statements                                      |             |
| Balance      Sheets                                                         | F-2      to F-3  |
| Statements      of Income                                                   | F-4      to F-5  |
| Statements      of Stockholders’ Equity                               | F-6              |
| Statements      of Cash Flows                                               | F-7      to F-8  |
| Notes      to Financial Statements                                          | F-9      to F-57 |

----

| a) | Pertain      to the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of the assets of the      Corporation and its consolidatedsubsidiaries; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in conformity with U.S. generally      accepted accounting principles, and that receipts and expenditures of the      Corporation and its consolidated subsidiaries are being made only in      accordance with authorizations of management and directors of the      Corporation; and |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the assets of the      Corporation and its consolidated subsidiaries that could have a material      effect on the financial statements. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                              |                              |
|------------------------------|------------------------------|
| Kenneth      A. Joyce        | Duane      L. Sinn           |
| Executive      Vice Chairman | Chief      Financial Officer |

----

----

|                                                           |   | 2009   |        |   | 2008   |   |
|----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                           |   |   |        |   |   |   |   |   |
| Cash      and due from banks                                   |   | $      | 24,824,785  |   |   | $      | 18,059,532 |   |
| Federal      funds sold                                        |   |   | -           |   |   |   | 10,000,000 |   |
| Cash      and cash equivalents                                 |   |   | 24,824,785  |   |   |   | 28,059,532 |   |
| Available-for-sale      securities                             |   |   | 105,083,112 |   |   |   | 102,606,475 |   |
| Loans      held for sale                                       |   |   | 16,857,648  |   |   |   | 3,824,499 |   |
| Loans,      net of unearned income                             |   |   | 452,557,581 |   |   |   | 450,111,653 |   |
| Allowance      for loan losses                                 |   |   | (7,030,178  | )      |   |   | (5,020,197 | ) |
| Premises      and equipment, net                               |   |   | 16,993,640  |   |   |   | 17,621,262 |   |
| Federal      Reserve and Federal Home Loan Bank Stock, at cost |   |   | 3,748,250   |   |   |   | 4,244,100 |   |
| Foreclosed      assets held for sale, net                      |   |   | 1,767,953   |   |   |   | 1,384,335 |   |
| Interest      receivable                                       |   |   | 2,324,868   |   |   |   | 2,964,663 |   |
| Goodwill                                                       |   |   | 21,414,790  |   |   |   | 21,414,790 |   |
| Core      deposits and other intangibles                       |   |   | 4,977,513   |   |   |   | 5,835,936 |   |
| Purchased      software                                        |   |   | 5,338,319   |   |   |   | 5,867,395 |   |
| Cash      value of life insurance                              |   |   | 12,792,045  |   |   |   | 12,625,015 |   |
| Other      assets                                              |   |   | 11,398,776  |   |   |   | 6,079,451 |   |
|                                                           |   |   |        |   |   |   |   |   |
| Total      assets                                              |   | $      | 673,049,102 |   |   | $      | 657,618,909 |   |

----

|                                                     |   | 2009   |        |   | 2008   |   |
|----------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                     |   |   |        |   |   |   |
| Liabilities                                              |   |   |        |   |   |   |
| Deposits                                                 |   |   |        |   |   |   |
| Non      interest bearing demand                         |   | $      | 57,229,795  |   |   | $      | 52,242,626 |   |
| Interest      bearing NOW                                |   |   | 87,511,973  |   |   |   | 73,123,095 |   |
| Savings                                                  |   |   | 43,321,364  |   |   |   | 34,563,566 |   |
| Money      Market                                        |   |   | 86,621,953  |   |   |   | 82,025,074 |   |
| Time      Deposits                                       |   |   | 216,557,067 |   |   |   | 242,266,223 |   |
| Total      deposits                                      |   |   | 491,242,152 |   |   |   | 484,220,584 |   |
| Short-term      borrowings                               |   |   | 52,042,820  |   |   |   | 43,425,978 |   |
| Notes      payable                                       |   |   | 2,146,776   |   |   |   | 1,000,000 |   |
| Federal      Home Loan Bank advances                     |   |   | 35,266,510  |   |   |   | 36,646,854 |   |
| Trust      preferred securities                          |   |   | 20,620,000  |   |   |   | 20,620,000 |   |
| Interest      payable                                    |   |   | 1,507,521   |   |   |   | 1,965,842 |   |
| Deferred      income taxes                               |   |   | 2,715,716   |   |   |   | 2,987,770 |   |
| Other      liabilities                                   |   |   | 5,799,952   |   |   |   | 5,089,877 |   |
| Total      liabilities                                   |   |   | 611,341,447 |   |   |   | 595,956,905 |   |
|                                                     |   |   |        |   |   |   |   |   |
| Commitments      and Contingent Liabilities              |   |   |        |   |   |   |   |   |
|                                                     |   |   |        |   |   |   |   |   |
| Stockholders'      Equity                                |   |   |        |   |   |   |   |   |
| Common      stock, $2.50 stated value; authorized        |   |   |        |   |   |   |   |   |
| 10,000,000      shares; 5,027,433 shares issued          |   |   | 12,568,583  |   |   |   | 12,568,583 |   |
| Additional      paid-in capital                          |   |   | 15,186,042  |   |   |   | 15,042,781 |   |
| Retained      earnings                                   |   |   | 34,415,316  |   |   |   | 35,785,317 |   |
| Accumulated      other comprehensive income (loss)       |   |   | 1,307,025   |   |   |   | (121,657 | ) |
| Treasury      stock, at cost                             |   |   |        |   |   |   |   |   |
| Common;      2009 - 165,654 shares, 2008 -145,981 shares |   |   | (1,769,311  | )      |   |   | (1,613,020 | ) |
| Total      stockholders' equity                          |   |   | 61,707,655  |   |   |   | 61,662,004 |   |
| Total      liabilities and stockholders' equity          |   | $      | 673,049,102 |   |   | $      | 657,618,909 |   |

----

|                                                                   |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                   |   |   |       |   |   |   |       |   |   |
| Interest      Income                                                   |   |   |       |   |   |   |       |   |   |
| Loans                                                                  |   |   |       |   |   |   |       |   |   |
| Taxable                                                                |   | $      | 27,272,465 |   |   | $      | 27,473,302 |   |   | $ | 27,782,068 |   |
| Tax-exempt                                                             |   |   | 91,294     |   |   |   | 84,878     |   |   |   | 73,451 |   |
| Securities                                                             |   |   |       |   |   |   |       |   |   |   |   |   |
| Taxable                                                                |   |   | 4,082,639  |   |   |   | 4,289,728  |   |   |   | 4,283,508 |   |
| Tax-exempt                                                             |   |   | 1,063,190  |   |   |   | 686,458    |   |   |   | 645,451 |   |
| Other                                                                  |   |   | 81,562     |   |   |   | 134,079    |   |   |   | 225,151 |   |
| Total      interest income                                             |   |   | 32,591,150 |   |   |   | 32,668,445 |   |   |   | 33,009,629 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      Expense                                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Deposits                                                               |   |   | 6,525,942  |   |   |   | 10,066,325 |   |   |   | 13,595,896 |   |
| Notes      payable                                                     |   |   | 132,116    |   |   |   | 34,576     |   |   |   | 126,812 |   |
| Repurchase      Agreements                                             |   |   | 1,733,668  |   |   |   | 1,821,330  |   |   |   | 1,615,016 |   |
| Federal      funds purchased                                           |   |   | 2,827      |   |   |   | 18,432     |   |   |   | 39,047 |   |
| Federal      Home Loan Bank advances                                   |   |   | 1,624,700  |   |   |   | 1,508,115  |   |   |   | 1,037,026 |   |
| Trust      preferred securities                                        |   |   | 1,573,293  |   |   |   | 1,691,792  |   |   |   | 1,808,520 |   |
| Total      interest expense                                            |   |   | 11,592,546 |   |   |   | 15,140,570 |   |   |   | 18,222,317 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Interest Income                                               |   |   | 20,998,604 |   |   |   | 17,527,875 |   |   |   | 14,787,312 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Provision      for Loan Losses                                         |   |   | 5,738,098  |   |   |   | 689,567    |   |   |   | 521,306 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Interest Income After Provision for Loan Losses               |   |   | 15,260,506 |   |   |   | 16,838,308 |   |   |   | 14,266,006 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Non-interest      Income                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Data      service fees                                                 |   |   | 18,859,701 |   |   |   | 20,165,451 |   |   |   | 19,382,115 |   |
| Trust      fees                                                        |   |   | 2,508,723  |   |   |   | 3,081,898  |   |   |   | 3,385,320 |   |
| Customer      service fees                                             |   |   | 2,607,985  |   |   |   | 2,416,093  |   |   |   | 2,243,745 |   |
| Net      gains on loan sales                                           |   |   | 3,354,654  |   |   |   | 740,985    |   |   |   | 574,000 |   |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      realized gains on sales of available-for-sale      securities |   |   | 960,320    |   |   |   | -          |   |   |   | 1,998 |   |
| Net      proceeds from VISA IPO                                        |   |   | -          |   |   |   | 132,106    |   |   |   | - |   |
| Investment      securities recoveries                                  |   |   | -          |   |   |   | 197,487    |   |   |   | - |   |
| Loan      servicing fees                                               |   |   | 443,309    |   |   |   | 235,095    |   |   |   | 227,017 |   |
| Gain      (losses) on sale of assets                                   |   |   | (134,732   | )      |   |   | 247,517    |   |   |   | 29,477 |   |
| Other                                                                  |   |   | 995,126    |   |   |   | 844,105    |   |   |   | 1,017,727 |   |
| Total      non-interest income                                         |   | $      | 29,595,086 |   |   | $      | 28,060,737 |   |   | $ | 26,861,399 |   |

----

|                                |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                |   |   |       |   |   |   |       |   |   |
| Non-interest      Expense           |   |   |       |   |   |   |       |   |   |
| Salaries      and employee benefits |   | $      | 21,034,671 |   |   | $      | 17,318,103 |   |   | $ | 17,007,314 |   |
| Net      occupancy expense          |   |   | 2,227,452  |   |   |   | 2,015,946  |   |   |   | 1,994,299 |   |
| Equipment      expense              |   |   | 7,463,352  |   |   |   | 6,308,564  |   |   |   | 6,586,623 |   |
| Data      processing fees           |   |   | 609,876    |   |   |   | 427,251    |   |   |   | 469,808 |   |
| Professional      fees              |   |   | 2,891,607  |   |   |   | 1,859,447  |   |   |   | 2,226,577 |   |
| Marketing      expense              |   |   | 857,727    |   |   |   | 831,727    |   |   |   | 820,528 |   |
| Printing      and office supplies   |   |   | 601,626    |   |   |   | 554,267    |   |   |   | 661,760 |   |
| Telephone      and communications   |   |   | 1,622,077  |   |   |   | 1,686,834  |   |   |   | 1,781,277 |   |
| Postage      and delivery expense   |   |   | 2,079,463  |   |   |   | 2,165,098  |   |   |   | 1,545,340 |   |
| Insurance      expense              |   |   | 1,222,636  |   |   |   | 154,670    |   |   |   | 140,651 |   |
| Employee      expense               |   |   | 1,151,438  |   |   |   | 1,084,028  |   |   |   | 1,083,056 |   |
| State,      local and other taxes   |   |   | 724,546    |   |   |   | 985,503    |   |   |   | 584,031 |   |
| Other                               |   |   | 2,647,018  |   |   |   | 2,165,175  |   |   |   | 1,735,346 |   |
| Total      non-interest expense     |   |   | 45,133,489 |   |   |   | 37,556,613 |   |   |   | 36,636,610 |   |
|                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Income      Before Income Tax       |   |   | (277,897   | )      |   |   | 7,342,432  |   |   |   | 4,490,795 |   |
|                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Provision      for Income Taxes     |   |   | (660,388   | )      |   |   | 2,125,193  |   |   |   | 1,234,160 |   |
|                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Income                     |   | $      | 382,491    |   |   | $      | 5,217,239  |   |   | $ | 3,256,635 |   |
|                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic      Earnings Per Share       |   | $      | 0.07       |   |   | $      | 1.06       |   |   | $ | 0.65 |   |
|                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Diluted      Earnings Per Share     |   | $      | 0.07       |   |   | $      | 1.06       |   |   | $ | 0.65 |   |

----

|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   | Accumulated        |   |   |     |      |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|----------------------|--------|------------|----------|--------|--------|--------------------|--------|--------|----------|-----------|--------|--------|--------|
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   | Other              |   |   |     |      |   |   |   |
|                                                                                                                           |   | Common |       |   | Additional           |   |       | Retained |   |   | Comprehensive      |   |   | Treasury |      |   |   |   |
|                                                                                                                           |   | Stock  |       |   | Paid-In Capital |   |       | Earnings |   |   | Income (Loss) |   |   | Stock    |      |   | Total  |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |
| Balance,      January 1, 2007                                                                                                  |   | $      | 12,568,583 |   |                 | $      | 14,859,165 |     |   | $      | 30,407,298         |   |   | $        | (879,893  | )      |   | $      | - |   |   | $ | 56,955,153 |   |
| Comprehensive      Income                                                                                                      |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                                                                |   |   |       |   |                 |   |       |     |   |   | 3,256,635          |   |   |     |      |   |   |   |   |   |   |   | 3,256,635 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Change      in unrealized gain (loss) on securities available for sale, net of      reclassification adjustment and tax effect |   |   |       |   |                 |   |       |     |   |   |               |   |   |     | 962,128   |   |   |   |   |   |   |   | 962,128 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                                                                |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   | 4,218,763 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Dividends      on common stock, $0.26 per share                                                                                |   |   |       |   |                 |   |       |     |   |   | (1,302,827         | )      |   |     |      |   |   |   |   |   |   |   | (1,302,827 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Expense      of stock option plan                                                                                              |   |   |       |   |                 |   | 64,406     |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   | 64,406 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Shares      repurchased under stock repurchase plan                                                                            |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   | (610,260 | ) |   |   | (610,260 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2007                                                                                                |   |   | 12,568,583 |   |                 |   | 14,923,571 |     |   |   | 32,361,106         |   |   |     | 82,235    |   |   |   | (610,260 | ) |   |   | 59,325,235 |   |
| Comprehensive      Income                                                                                                      |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                                                                |   |   |       |   |                 |   |       |     |   |   | 5,217,239          |   |   |     |      |   |   |   |   |   |   |   | 5,217,239 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Change      in unrealized gain (loss) on securities available for sale, net of      reclassification adjustment and tax effect |   |   |       |   |                 |   |       |     |   |   |               |   |   |     | (203,892  | )      |   |   |   |   |   |   | (203,892 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                                                                |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   | 5,013,347 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Dividends      on common stock, $0.34 per share                                                                                |   |   |       |   |                 |   |       |     |   |   | (1,676,723         | )      |   |     |      |   |   |   |   |   |   |   | (1,676,723 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Expense      of stock option plan                                                                                              |   |   |       |   |                 |   | 119,210    |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   | 119,210 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Cumulative      effect adjustment for split dollar BOLI                                                                        |   |   |       |   |                 |   |       |     |   |   | (116,305           | )      |   |     |      |   |   |   |   |   |   |   | (116,305 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Shares      repurchased under stock repurchase plan                                                                            |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   | (1,002,760 | ) |   |   | (1,002,760 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2008                                                                                                |   |   | 12,568,583 |   |                 |   | 15,042,781 |     |   |   | 35,785,317         |   |   |     | (121,657  | )      |   |   | (1,613,020 | ) |   |   | 61,662,004 |   |
| Comprehensive      Income                                                                                                      |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                                                                |   |   |       |   |                 |   |       |     |   |   | 382,491            |   |   |     |      |   |   |   |   |   |   |   | 382,491 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Change      in unrealized gain (loss) on securities available for sale, net of      reclassification adjustment and tax effect |   |   |       |   |                 |   |       |     |   |   |               |   |   |     | 1,428,682 |   |   |   |   |   |   |   | 1,428,682 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                                                                |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   | 1,811,173 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Dividends      on common stock, $0.36 per share                                                                                |   |   |       |   |                 |   |       |     |   |   | (1,752,492         | )      |   |     |      |   |   |   |   |   |   |   | (1,752,492 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Expense      of stock option plan                                                                                              |   |   |       |   |                 |   | 143,261    |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   | 143,261 |   |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Shares      repurchased under stock repurchase plan                                                                            |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   | (156,291 | ) |   |   | (156,291 | ) |
|                                                                                                                           |   |   |       |   |                 |   |       |     |   |   |               |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2009                                                                                                |   | $      | 12,568,583 |   |                 | $      | 15,186,042 |     |   | $      | 34,415,316         |   |   | $        | 1,307,025 |   |   | $      | (1,769,311 | ) |   | $ | 61,707,655 |   |

----

RurbanFinancial Corp.

|                                                                                |   | 2009   |         |   | 2008   |   |        | 2007   |   |
|-------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|-------------|--------|--------|
|                                                                                |   |   |         |   |   |   |        |   |   |
| Operating      Activities                                                           |   |   |         |   |   |   |        |   |   |
| Net      Income                                                                     |   | $      | 382,491      |   |   | $      | 5,217,239   |   |   | $ | 3,256,635 |   |
| Items      not requiring (providing) cash                                           |   |   |         |   |   |   |        |   |   |   |   |   |
| Depreciation      and amortization                                                  |   |   | 4,473,367    |   |   |   | 3,684,358   |   |   |   | 3,969,922 |   |
| Provision      for loan losses                                                      |   |   | 5,738,098    |   |   |   | 689,567     |   |   |   | 521,306 |   |
| Expense      of share-based compensation plan                                       |   |   | 143,261      |   |   |   | 119,210     |   |   |   | 64,406 |   |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Amortization      of premiums and discounts on securities                           |   |   | 608,534      |   |   |   | 133,614     |   |   |   | 48,799 |   |
| Amortization      of intangible assets                                              |   |   | 858,423      |   |   |   | 710,324     |   |   |   | 723,754 |   |
| Deferred      income taxes                                                          |   |   | (1,008,042   | )      |   |   | 1,482,203   |   |   |   | (795,035 | ) |
| FHLB      Stock Dividends                                                           |   |   | -            |   |   |   | (127,200    | )      |   |   | (47,250 | ) |
| Proceeds      from sale of loans held for sale                                      |   |   | 309,811,437  |   |   |   | 38,708,669  |   |   |   | 18,032,822 |   |
| Originations      of loans held for sale                                            |   |   | (319,489,932 | )      |   |   | (40,142,425 | )      |   |   | (18,718,482 | ) |
| Gain      from sale of loans                                                        |   |   | (3,354,654   | )      |   |   | (740,985    | )      |   |   | (574,000 | ) |
| (Gain)      loss on sale of foreclosed assets                                       |   |   | 102,713      |   |   |   | (4,517      | )      |   |   | - |   |
| (Gain)      loss on sales of fixed assets                                           |   |   | 32,019       |   |   |   | (243,000    | )      |   |   | (29,396 | ) |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Net      realized gains on available-for-sale securities                            |   |   | (960,320     | )      |   |   | -           |   |   |   | (1,998 | ) |
| Changes      in                                                                     |   |   |         |   |   |   |        |   |   |   |   |   |
| Interest      receivable                                                            |   |   | 639,795      |   |   |   | 935,431     |   |   |   | 120,806 |   |
| Other      assets                                                                   |   |   | (5,412,295   | )      |   |   | 641,023     |   |   |   | (254,227 | ) |
| Interest      payable and other liabilities                                         |   |   | 251,756      |   |   |   | (1,400,738  | )      |   |   | (408,466 | ) |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                            |   |   | (7,183,349   | )      |   |   | 9,662,773   |   |   |   | 5,909,596 |   |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Investing      Activities                                                           |   |   |         |   |   |   |        |   |   |   |   |   |
| Net      change in interest-bearing accounts                                        |   |   | -            |   |   |   | -           |   |   |   | 150,000 |   |
| Purchases      of available-for-sale securities                                     |   |   | (67,881,565  | )      |   |   | (46,231,266 | )      |   |   | (29,501,721 | ) |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Proceeds      from maturities of available-for-sale securities                      |   |   | 40,839,927   |   |   |   | 48,098,994  |   |   |   | 37,247,138 |   |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Proceeds      from sales of available-for-sale securities                           |   |   | 27,081,457   |   |   |   | 36,519,016  |   |   |   | 3,466,240 |   |
| Net      change in loans                                                            |   |   | (7,721,644   | )      |   |   | (19,140,093 | )      |   |   | (19,653,367 | ) |
| Purchase      of premises, equipment and software                                   |   |   | (3,406,256   | )      |   |   | (8,045,766  | )      |   |   | (3,701,669 | ) |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Proceeds      from sales of premises, equipment and software                        |   |   | 57,567       |   |   |   | 2,327,708   |   |   |   | 401,241 |   |
| Purchase      of bank owned life insurance                                          |   |   | -            |   |   |   | -           |   |   |   | (1,000,000 | ) |
| Proceeds      from sale of foreclosed assets                                        |   |   | 987,208      |   |   |   | 604,873     |   |   |   | - |   |
| Cash      paid to shareholders of Diverse Computer Marketers, Inc.      Acquisition |   |   | -            |   |   |   | -           |   |   |   | (266,560 | ) |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Net      cash paid to acquire The National Bank of Montpelier                       |   |   | -            |   |   |   | (14,779,983 | )      |   |   | - |   |
| Purchase      of FHLB stock                                                         |   |   | (204,150     | )      |   |   | -           |   |   |   | - |   |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Proceeds      for the sale of FHLB stock                                            |   |   | 700,000      |   |   |   | -           |   |   |   | - |   |
| Proceeds      from sale of Federal Reserve stock                                    |   |   | -            |   |   |   | -           |   |   |   | 19,500 |   |
|                                                                                |   |   |         |   |   |   |        |   |   |   |   |   |
| Net      cash used in investing activities                                          |   | $      | (9,547,456   | )      |   | $      | (646,517    | )      |   | $ | (12,839,198 | ) |

----

|                                                                                            |   | 2009   |        |   | 2008   |   |        | 2007   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                                                                            |   |   |        |   |   |   |        |   |   |
| Financing      Activities                                                                       |   |   |        |   |   |   |        |   |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |
| Net      increase in demand deposits, money market, interest checking and savings      accounts |   | $      | 32,730,724  |   |   | $      | 18,765,273  |   |   | $ | 5,717,453 |   |
| Net      decrease in certificates of deposit                                                    |   |   | (25,709,156 | )      |   |   | (27,370,079 | )      |   |   | (14,241,716 | ) |
| Net      increase in securities sold under agreements to repurchase                             |   |   | 3,616,842   |   |   |   | 419,540     |   |   |   | 10,735,538 |   |
| Net      increase in federal funds purchased                                                    |   |   | 5,000,000   |   |   |   | -           |   |   |   | - |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Proceeds      from Federal Home Loan Bank advances                                              |   |   | 7,500,000   |   |   |   | 24,000,000  |   |   |   | 14,000,000 |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Repayment      of Federal Home Loan Bank advances                                               |   |   | (8,880,344  | )      |   |   | (11,353,145 | )      |   |   | (11,000,000 | ) |
| Proceeds      from notes payable                                                                |   |   | 2,700,000   |   |   |   | 1,000,000   |   |   |   | - |   |
| Net      change in short term line of credit                                                    |   |   | (1,000,000  | )      |   |   | -           |   |   |   | - |   |
| Repayment      of notes payable                                                                 |   |   | (553,224    | )      |   |   | (922,457    | )      |   |   | (1,666,750 | ) |
| Purchase      of treasury stock                                                                 |   |   | (156,291    | )      |   |   | (1,002,760  | )      |   |   | (610,260 | ) |
| Dividends      paid                                                                             |   |   | (1,752,493  | )      |   |   | (1,676,723  | )      |   |   | (1,302,827 | ) |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Net      cash provided by financing activities                                                  |   |   | 13,496,058  |   |   |   | 1,859,649   |   |   |   | 1,631,438 |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Increase      (Decrease) in Cash and Cash Equivalents                                           |   |   | (3,234,747  | )      |   |   | 10,875,905  |   |   |   | (5,298,164 | ) |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents, Beginning of Year                                               |   |   | 28,059,532  |   |   |   | 17,183,627  |   |   |   | 22,481,791 |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents, End of Year                                                     |   | $      | 24,824,785  |   |   | $      | 28,059,532  |   |   | $ | 17,183,627 |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Supplemental      Cash Flows Information                                                        |   |   |        |   |   |   |        |   |   |   |   |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Interest      paid                                                                              |   | $      | 12,050,867  |   |   | $      | 15,707,642  |   |   | $ | 17,913,818 |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Income      taxes paid (refunded)                                                               |   | $      | (71,000     | )      |   | $      | 1,212,000   |   |   | $ | 2,430,000 |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Transfer      of loans to foreclosed assets                                                     |   | $      | 1,547,599   |   |   | $      | 2,292,731   |   |   | $ | 320,600 |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Net      assets acquired in business combination                                                |   | $      | -           |   |   | $      | 113,441,000 |   |   | $ | - |   |
|                                                                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Net      liabilities assumed in business combination                                            |   | $      | -           |   |   | $      | 88,211,000  |   |   | $ | - |   |

----

| Note      1: | Nature      of Operations and Summary of Significant Accounting    Policies |
|--------------|-----------------------------------------------------------------------------|

----

----

----

----

----

| Note      2: | Restriction      on Cash and Due From Banks |
|--------------|---------------------------------------------|

----

| Note      3: | Securities |
|--------------|------------|

|                                  |   |      |        |   | Gross      |   |      | Gross      |   |   |        |   |
|---------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|-------------|--------|
|                                  |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Approximate |   |
|                                  |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Fair Value  |   |
| Available-for-Sale      Securities:   |   |      |        |   |       |   |      |       |   |   |        |   |
| December      31, 2009:               |   |      |        |   |       |   |      |       |   |   |        |   |
| U.S.      Treasury and                |   |      |        |   |       |   |      |       |   |   |        |   |
| Government      agencies              |   | $         | 13,215,086  |   |       | $      | 5,359     |       |   | $      | (276,796    | )      |   | $ | 12,943,649 |   |
| Mortgage-backed      securities       |   |      | 50,877,903  |   |       |   | 1,792,894 |       |   |   | (424,519    | )      |   |   | 52,246,278 |   |
| State      and political subdivisions |   |      | 30,653,604  |   |       |   | 984,833   |       |   |   | (101,431    | )      |   |   | 31,537,006 |   |
| Money      Market Mutual Fund         |   |      | 8,333,179   |   |       |   | -         |       |   |   | -           |   |   |   | 8,333,179 |   |
| Equity      securities                |   |      | 23,000      |   |       |   | -         |       |   |   | -           |   |   |   | 23,000 |   |
|                                  |   |      |        |   |       |   |      |       |   |   |        |   |   |   |   |   |
|                                  |   | $         | 103,102,772 |   |       | $      | 2,783,086 |       |   | $      | (802,746    | )      |   | $ | 105,083,112 |   |
|                                  |   |      |        |   |       |   |      |       |   |   |        |   |   |   |   |   |
| December      31, 2008:               |   |      |        |   |       |   |      |       |   |   |        |   |   |   |   |   |
| U.S.      Treasury and                |   |      |        |   |       |   |      |       |   |   |        |   |   |   |   |   |
| Government      agencies              |   | $         | 15,146,301  |   |       | $      | 65,978    |       |   | $      | (28,396     | )      |   | $ | 15,183,883 |   |
| Mortgage-backed      securities       |   |      | 64,329,865  |   |       |   | 1,014,453 |       |   |   | (797,893    | )      |   |   | 64,546,425 |   |
| State      and political subdivisions |   |      | 23,241,636  |   |       |   | 22,010    |       |   |   | (462,215    | )      |   |   | 22,801,431 |   |
| Equity      securities                |   |      | 23,000      |   |       |   | -         |       |   |   | -           |   |   |   | 23,000 |   |
| Other      securities                 |   |      | 50,000      |   |       |   | 1,736     |       |   |   | -           |   |   |   | 51,736 |   |
|                                  |   |      |        |   |       |   |      |       |   |   |        |   |   |   |   |   |
|                                  |   | $         | 102,790,802 |   |       | $      | 1,104,177 |       |   | $      | (1,288,504  | )      |   | $ | 102,606,475 |   |

----

|                                                    |   | Available      for Sale |        |
|---------------------------------------------------------|--------|-------------------------|-------------|
|                                                    |   | Amortized               |        |   | Fair |   |
|                                                    |   | Cost                    |        |   | Value |   |
|                                                    |   |                    |        |   |   |   |
| Within      one year                                    |   | $                       | 1,027,913   |   |   | $ | 1,044,796 |   |
| Due      after one year through five years              |   |                    | 3,736,916   |   |   |   | 3,887,231 |   |
| Due      after five years through ten years             |   |                    | 9,837,771   |   |   |   | 10,006,344 |   |
| Due      after ten years                                |   |                    | 29,266,090  |   |   |   | 29,542,284 |   |
|                                                    |   |                    | 43,868,690  |   |   |   | 44,480,655 |   |
|                                                    |   |                    |        |   |   |   |   |   |
| Mortgage-backed      securities & Equity Securities |   |                    | 59,234,082  |   |   |   | 60,602,457 |   |
|                                                    |   |                    |        |   |   |   |   |   |
| Totals                                                  |   | $                       | 103,102,772 |   |   | $ | 105,083,112 |   |

----

|                                       |   | Less than 12 Months |       |   | 12 Months or Longer |   |     | Total      |   |
|--------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|----------|------------|--------|
|                                       |   |                |       |   | Unrealized          |   |     |       |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                       |   | Fair Value          |       |   | Losses              |   |     | Fair Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| Available-for-Sale  Securities:  |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury and Government agencies |   | $                   | 12,837,085 |   |                | $      | (276,796 | )          |   | $ | - |   |   | $ | - |   |   | $ | 12,837,085 |   |   | $ | (276,796 | ) |
| Mortgage-backed securities            |   |                | 1,263,285  |   |                |   | (15,539  | )          |   |   | 2,255,050 |   |   |   | (408,980 | ) |   |   | 3,518,335 |   |   |   | (424,519 | ) |
| State      and political subdivisions |   |                | 2,792,842  |   |                |   | (56,693  | )          |   |   | 991,950 |   |   |   | (44,737 | ) |   |   | 3,784,792 |   |   |   | (101,431 | ) |
|                                       |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | $                   | 16,893,212 |   |                | $      | (349,028 | )          |   | $ | 3,247,000 |   |   | $ | (453,717 | ) |   | $ | 20,140,212 |   |   | $ | (802,746 | ) |

|                                       |   | Less than 12 Months |       |   | 12 Months or Longer |   |       | Total      |   |
|--------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|------------|------------|--------|
|                                       |   |                |       |   | Unrealized          |   |       |       |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                             |   | Fair Value          |       |   | Losses              |   |       | Fair Value |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
| Available-for-Sale      Securities:        |   |                |       |   |                |   |       |       |   |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury and Government agencies |   | $                   | 974,720    |   |                | $      | (28,396    | )          |   | $ | - |   |   | $ | - |   |   | $ | 974,720 |   |   | $ | (28,396 | ) |
| Mortgage-backed      securities            |   |                | 9,619,369  |   |                |   | (571,239   | )          |   |   | 1,590,836 |   |   |   | (226,654 | ) |   |   | 11,210,205 |   |   |   | (797,893 | ) |
| State      and political subdivisions      |   |                | 12,756,053 |   |                |   | (441,439   | )          |   |   | 1,194,919 |   |   |   | (20,776 | ) |   |   | 13,950,972 |   |   |   | (462,215 | ) |
|                                       |   |                |       |   |                |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | $                   | 23,350,142 |   |                | $      | (1,041,074 | )          |   | $ | 2,785,755 |   |   | $ | (247,430 | ) |   | $ | 26,135,897 |   |   | $ | (1,288,504 | ) |

----

| Note      4: | Loans      and Allowance for Loan Losses |
|--------------|------------------------------------------|

|                                                |   | 2009   |        |   | 2008   |   |
|-----------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Commercial                                          |   | $      | 84,642,860  |   |   | $      | 83,645,408 |   |
| Commercial      real estate                         |   |   | 179,909,135 |   |   |   | 161,566,005 |   |
| Agricultural                                        |   |   | 41,485,301  |   |   |   | 43,641,132 |   |
| Residential      real estate                        |   |   | 92,971,599  |   |   |   | 107,905,198 |   |
| Consumer                                            |   |   | 53,655,238  |   |   |   | 53,338,523 |   |
| Leasing                                             |   |   | 221,190     |   |   |   | 266,348 |   |
| Total      loans                                    |   |   | 452,885,323 |   |   |   | 450,362,614 |   |
| Less                                                |   |   |        |   |   |   |   |   |
| Net      deferred loan fees, premiums and discounts |   |   | (327,742    | )      |   |   | (250,961 | ) |
| Loans,      net of unearned income                  |   |   | 452,557,581 |   |   |   | 450,111,653 |   |
| Allowance      for loan losses                      |   | $      | (7,030,178  | )      |   | $      | (5,020,197 | ) |

|                                      |   | 2009   |       |   | 2008   |   |      | 2007   |   |
|-------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
| Balance,      beginning of year           |   | $      | 5,020,197  |   |   | $      | 3,990,455 |   |   | $ | 3,717,377 |   |
| Balance,      National Bank of Montpelier |   |   | -          |   |   |   | 1,104,591 |   |   |   | - |   |
| Provision      charged to expense         |   |   | 5,738,098  |   |   |   | 689,567   |   |   |   | 521,306 |   |
| Recoveries                                |   |   | 147,265    |   |   |   | 157,790   |   |   |   | 183,987 |   |
| Losses      charged off                   |   |   | (3,875,382 | )      |   |   | (922,206  | )      |   |   | (432,215 | ) |
| Balance,      end of year                 |   | $      | 7,030,178  |   |   | $      | 5,020,197 |   |   | $ | 3,990,455 |   |

----

|                                                                                    |   | At      December 31, |
|-----------------------------------------------------------------------------------------|--------|----------------------|
|                                                                                    |   | 2009                 |   |   | 2008 |   |   | 2007 |
| Year-end impaired loans with      no allowance for loan      losses allocated |   | $                    | 1,099,912 |   |   | $ | 1,706,246 |   |   | $ | 1,786,931 |   |
|                                                                                    |   |                 |   |   |   |   |   |   |   |   |   |   |
| Year-end loans with allowance      for loan losses      allocated                  |   | $                    | 14,912,035 |   |   | $ | 865,710 |   |   | $ | 1,897,903 |   |
|                                                                                    |   |                 |   |   |   |   |   |   |   |   |   |   |
| Total      impaired loans                                                               |   | $                    | 16,011,947 |   |   | $ | 2,571,956 |   |   | $ | 3,684,834 |   |
|                                                                                    |   |                 |   |   |   |   |   |   |   |   |   |   |
| Amount      of allowance allocated                                                      |   | $                    | 3,041,967 |   |   | $ | 322,190 |   |   | $ | 332,805 |   |
|                                                                                    |   |                 |   |   |   |   |   |   |   |   |   |   |
| Average of impaired loans      during the year                                     |   | $                    | 16,111,693 |   |   | $ | 2,158,106 |   |   | $ | 2,805,689 |   |
|                                                                                    |   |                 |   |   |   |   |   |   |   |   |   |   |
| Interest income recognized      during impairment                                  |   | $                    | 564,931 |   |   | $ | 11,970 |   |   | $ | 63,425 |   |
|                                                                                    |   |                 |   |   |   |   |   |   |   |   |   |   |
| Cash-basis interest      income recognized                                         |   | $                    | 596,565 |   |   | $ | 14,807 |   |   | $ | 74,940 |   |

----

| Note      5: | Premises      and Equipment |
|--------------|-----------------------------|

|                               |   | 2009   |        |   | 2008   |   |
|------------------------------------|--------|--------|-------------|--------|--------|--------|
|                               |   |   |        |   |   |   |
| Land                               |   | $      | 2,027,383   |   |   | $      | 2,071,883 |   |
| Buildings      and improvements    |   |   | 14,871,520  |   |   |   | 14,781,372 |   |
| Equipment                          |   |   | 11,663,865  |   |   |   | 10,205,378 |   |
| Construction      in progress      |   |   | 508,500     |   |   |   | 1,064,890 |   |
|                               |   |   | 29,071,268  |   |   |   | 28,123,523 |   |
|                               |   |   |        |   |   |   |   |   |
| Less      accumulated depreciation |   |   | (12,077,628 | )      |   |   | (10,502,261 | ) |
|                               |   |   |        |   |   |   |   |   |
| Net      premises and equipment    |   | $      | 16,993,640  |   |   | $      | 17,621,262 |   |

| Note      6: | Goodwill |
|--------------|----------|

|                                                     |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Balance      as of January 1                             |   | $      | 21,414,790 |   |   | $      | 13,940,618 |   |   | $ | 13,674,058 |   |
| Goodwill      acquired during the year - Data Processing |   |   | -          |   |   |   | -          |   |   |   | 266,559 |   |
| Goodwill      acquired during the year - Banking         |   |   | -          |   |   |   | 7,474,172  |   |   |   | - |   |
| Balance      as of December 31                           |   | $      | 21,414,790 |   |   | $      | 21,414,790 |   |   | $ | 13,940,618 |   |

----

| Note      7: | Other      Intangible Assets |
|--------------|------------------------------|

|                                      |   | 2009                |       |   | 2008         |   |
|-------------------------------------------|--------|---------------------|------------|--------|--------------|--------|
|                                      |   | Gross Carrying |       |   | Accumulated  |   |   | Gross Carrying |   |   | Accumulated |   |
|                                      |   | Amount              |       |   | Amortization |   |   | Amount |   |   | Amortization |   |
| Core      deposits intangible             |   | $                   | 5,450,647  |   |         | $      | (2,427,111 | ) |   | $ | 5,450,647 |   |   | $ | (1,794,702 | ) |
| Customer      relationship intangible     |   |                | 200,627    |   |         |   | (104,761 | ) |   |   | 200,627 |   |   |   | (96,458 | ) |
| Banking      intangibles                  |   |                | 5,651,274  |   |         |   | (2,531,872 | ) |   |   | 5,651,274 |   |   |   | (1,891,160 | ) |
|                                      |   |                |       |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Customer      relationship intangible     |   |                | 2,389,000  |   |         |   | (530,889 | ) |   |   | 2,389,000 |   |   |   | (371,623 | ) |
| Trademark      intangible                 |   |                | 180,000    |   |         |   | (180,000 | ) |   |   | 180,000 |   |   |   | (140,000 | ) |
| Non-compete      intangible               |   |                | 83,000     |   |         |   | (83,000 | ) |   |   | 83,000 |   |   |   | (64,555 | ) |
| Data      processing intangibles          |   |                | 2,652,000  |   |         |   | (793,889 | ) |   |   | 2,652,000 |   |   |   | (576,178 | ) |
|                                      |   |                |       |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Purchased      software - banking         |   |                | 556,031    |   |         |   | (320,092 | ) |   |   | 469,515 |   |   |   | (199,364 | ) |
| Purchased      software - data processing |   |                | 12,699,410 |   |         |   | (7,646,988 | ) |   |   | 11,172,252 |   |   |   | (5,662,679 | ) |
| Purchased      software - other           |   |                | 187,214    |   |         |   | (137,256 | ) |   |   | 351,660 |   |   |   | (263,989 | ) |
| Purchased      software                   |   |                | 13,442,655 |   |         |   | (8,104,336 | ) |   |   | 11,993,427 |   |   |   | (6,126,032 | ) |
| Total                                     |   | $                   | 21,745,929 |   |         | $      | (11,430,097 | ) |   | $ | 20,296,701 |   |   | $ | (8,593,370 | ) |

|                                      |   | 2010   |      |   | 2011   |   |      | 2012   |   |   | 2013      |   |   | 2014   |    |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|---------|
|                                      |   |   |      |   |   |   |      |   |   |   |      |   |   |   |    |
| Core      deposit intangible              |   | $      | 626,595   |   |   | $      | 621,634   |   |   | $      | 617,490   |   |   | $      | 566,994 |   |   | $ | 365,465 |   |
| Customer      relationship intangible     |   |   | 8,815     |   |   |   | 8,033     |   |   |   | 7,934     |   |   |   | 7,202   |   |   |   | 6,461 |   |
| Banking      intangibles                  |   |   | 635,410   |   |   |   | 629,667   |   |   |   | 625,424   |   |   |   | 574,195 |   |   |   | 371,926 |   |
|                                      |   |   |      |   |   |   |      |   |   |   |      |   |   |   |    |   |   |   |   |   |
| Customer      relationship intangible     |   |   | 159,267   |   |   |   | 159,267   |   |   |   | 159,267   |   |   |   | 159,267 |   |   |   | 159,267 |   |
| Data      Procesing intangibles           |   |   | 159,267   |   |   |   | 159,267   |   |   |   | 159,267   |   |   |   | 159,267 |   |   |   | 159,267 |   |
|                                      |   |   |      |   |   |   |      |   |   |   |      |   |   |   |    |   |   |   |   |   |
| Purchased      software - Banking         |   |   | 111,638   |   |   |   | 60,669    |   |   |   | 27,177    |   |   |   | 20,594  |   |   |   | 15,861 |   |
| Purchased      software - Data Processing |   |   | 3,870,052 |   |   |   | 347,424   |   |   |   | 231,197   |   |   |   | 149,428 |   |   |   | 96,743 |   |
| Purchased      software - Other           |   |   | 38,134    |   |   |   | 10,867    |   |   |   | 957       |   |   |   | -       |   |   |   | - |   |
| Purchased      Software                   |   |   | 4,019,824 |   |   |   | 418,960   |   |   |   | 259,331   |   |   |   | 170,022 |   |   |   | 112,604 |   |
| Total                                     |   | $      | 4,814,500 |   |   | $      | 1,207,894 |   |   | $      | 1,044,021 |   |   | $      | 903,484 |   |   | $ | 643,797 |   |

----

----

|                                                        |   | 2009   |      |   | 2008   |   |     | 2007   |   |
|-------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|
|                                                        |   |   |      |   |   |   |     |   |   |   |   |   |
| Carrying      amount, beginning of year                     |   | $      | 607,078   |   |   | $      | 397,996  |   |   | $ | 209,053 |   |
| Mortgage      servicing rights capitalized during the year  |   |   | 1,638,564 |   |   |   | 327,423  |   |   |   | 201,995 |   |
| Servicing      rights acquired in acquisition               |   |   | -         |   |   |   | 50,000   |   |   |   | - |   |
| Mortgage      servicing rights amortization during the year |   |   | (305,489  | )      |   |   | (68,341  | )      |   |   | (13,052 | ) |
| Net      change in valuation allowance                      |   |   | 15,000    |   |   |   | (100,000 | )      |   |   | - |   |
| Carrying      amount, end of year                           |   | $      | 1,955,153 |   |   | $      | 607,078  |   |   | $ | 397,996 |   |
|                                                        |   |   |      |   |   |   |     |   |   |   |   |   |
| Valuation      allowance:                                   |   |   |      |   |   |   |     |   |   |   |   |   |
| Beginning      of year                                      |   | $      | 100,000   |   |   | $      | -        |   |   | $ | - |   |
| Additions                                                   |   |   | 25,000    |   |   |   | 100,000  |   |   |   | - |   |
| Reduction                                                   |   |   | (40,000   | )      |   |   | -        |   |   |   | - |   |
|                                                        |   |   |      |   |   |   |     |   |   |   |   |   |
| End      of year                                            |   | $      | 85,000    |   |   | $      | 100,000  |   |   | $ | - |   |
|                                                        |   |   |      |   |   |   |     |   |   |   |   |   |
| Fair      Value, beginning of period                        |   | $      | 607,078   |   |   | $      | 397,996  |   |   | $ | 209,053 |   |
| Fair      Value, end of period                              |   | $      | 1,955,153 |   |   | $      | 607,078  |   |   | $ | 397,996 |   |

----

| Note      9: | Interest-Bearing      Time Deposits |
|--------------|-------------------------------------|

| 2010       |   | $      | 136,078,650 |   |
|------------|--------|--------|-------------|--------|
| 2011       |   |   | 41,581,487  |   |
| 2012       |   |   | 28,906,245  |   |
| 2013       |   |   | 3,675,211   |   |
| 2014       |   |   | 4,296,269   |   |
| Thereafter |   |   | 2,019,205   |   |
|       |   |   |        |   |
|       |   | $      | 216,557,067 |   |

----

| Note      10: | Short-Term      Borrowings |
|---------------|----------------------------|

|                                                      |   | 2009   |       |   | 2008   |   |
|-----------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Federal      funds purchased                              |   | $      | 5,000,000  |   |   | $      | - |   |
| Securities      sold under repurchase agreements - retail |   |   | 12,042,820 |   |   |   | 8,425,978 |   |
| Securities      sold under repurchase agreements - broker |   |   | 35,000,000 |   |   |   | 35,000,000 |   |
|                                                      |   |   |       |   |   |   |   |   |
| Total      short-term borrowings                          |   | $      | 52,042,820 |   |   | $      | 43,425,978 |   |

----

| Note      11: | Notes      Payable |
|---------------|--------------------|

|                                                                                                                                                                                                                                                          |   | 2009   |      |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Note payable in the amount of      $2,700,000, secured by all equipment and recievables of      RDSI, monthly payments of $82,871 together with interest at a fixed      rate of 6.50%, maturing April 21, 2012, that is due upon      demand. |   | $      | 2,146,776 |   |   | $      | - |   |
|                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |   |
| Revolving Demand Note payable in      the amount of $3,000,000, secured by all inventory,      equipment and receivables of RDSI, monthly payments of interest at      prime plus .5% (paid off in April 2009)                                 |   | $      | -         |   |   | $      | 1,000,000 |   |
|                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |   |
|                                                                                                                                                                                                                                                          |   | $      | 2,146,776 |   |   | $      | 1,000,000 |   |

|   |   | Debt   |      |
|--------|--------|--------|-----------|
|   |   |   |      |
| 2010   |   |   | 880,844   |   |
| 2011   |   |   | 939,836   |   |
| 2012   |   |   | 326,096   |   |
|   |   |   |      |   |
|   |   | $      | 2,146,776 |   |

----

| Note      12: | Federal      Home Loan Bank Advances |
|---------------|--------------------------------------|

|   |   | Debt   |       |
|--------|--------|--------|------------|
|   |   |   |       |
| 2010   |   | $      | 13,667,728 |   |
| 2011   |   |   | 12,459,908 |   |
| 2012   |   |   | 1,278,328  |   |
| 2013   |   |   | 1,860,546  |   |
| 2014   |   |   | 6,000,000  |   |
| Total  |   | $      | 35,266,510 |   |

----

| Note      13: | Trust      Preferred Securities |
|---------------|---------------------------------|

----

| Note      14: | Income      Taxes |
|---------------|-------------------|

|                              |   | For The Year Ended December 31, |       |
|-----------------------------------|--------|----------------------------------------------------------|------------|
|                              |   | 2009                                                     |       |   | 2008 |   |   | 2007 |   |
| Taxes      currently payable      |   | $                                                        | 347,655    |   |   | $ | 642,990 |   |   | $ | 2,029,195 |   |
| Deferred      provision (benefit) |   |                                                     | (1,008,043 | ) |   |   | 1,482,203 |   |   |   | (795,035 | ) |
|                              |   |                                                     |       |   |   |   |   |   |   |   |   |   |
| Income      tax expense           |   | $                                                        | (660,388   | ) |   | $ | 2,125,193 |   |   | $ | 1,234,160 |   |

|                                      |   | For The Year Ended December 31, |     |
|-------------------------------------------|--------|----------------------------------------------------------|----------|
|                                      |   | 2009                                                     |     |   | 2008 |   |   | 2007 |   |
| Computed      at the statutory rate (34%) |   | $                                                        | (94,485  | ) |   | $ | 2,496,427 |   |   | $ | 1,526,870 |   |
| Decrease      resulting from              |   |                                                     |     |   |   |   |   |   |   |   |   |   |
| Tax      exempt interest                  |   |                                                     | (370,944 | ) |   |   | (232,872 | ) |   |   | (211,646 | ) |
| Other                                     |   |                                                     | (194,959 | ) |   |   | (138,362 | ) |   |   | (81,064 | ) |
|                                      |   |                                                     |     |   |   |   |   |   |   |   |   |   |
| Actual      tax expense                   |   | $                                                        | (660,388 | ) |   | $ | 2,125,193 |   |   | $ | 1,234,160 |   |

----

|                                                    |   | At December 31, |       |
|---------------------------------------------------------|--------|---------------------------|------------|
|                                                    |   | 2009                      |       |   | 2008 |   |
| Deferred      tax assets                                |   |                      |       |   |   |   |
| Allowance      for loan losses                          |   | $                         | 2,332,349  |   |   | $ | 1,601,308 |   |
| Accrued      compensation and benefits                  |   |                      | 393,858    |   |   |   | 348,131 |   |
| Net      deferred loan fees                             |   |                      | 111,432    |   |   |   | 94,532 |   |
| Unrealized      losses on available-for-sale securities |   |                      | -          |   |   |   | 62,672 |   |
| Mark      to market adjustments                         |   |                      | 591,970    |   |   |   | - |   |
| Purchase      accounting adjustments                    |   |                      | 142,535    |   |   |   | 223,620 |   |
| NOL      carry over                                     |   |                      | 413,828    |   |   |   | 592,072 |   |
| AMT      credit carry over                              |   |                      | 185,295    |   |   |   | - |   |
| Other                                                   |   |                      | 178,958    |   |   |   | 82,275 |   |
|                                                    |   |                      | 4,350,225  |   |   |   | 3,004,610 |   |
| Deferred      tax liabilities                           |   |                      |       |   |   |   |   |   |
| Depreciation                                            |   |                      | (2,498,634 | ) |   |   | (2,222,534 | ) |
| Mortgage      servicing rights                          |   |                      | (664,752   | ) |   |   | (274,407 | ) |
| Unrealized      gains on available-for-sale securities  |   |                      | (673,316   | ) |   |   | - |   |
| Mark      to market adjustments                         |   |                      | -          |   |   |   | (62,672 | ) |
| Purchase      accounting adjustments                    |   |                      | (2,529,268 | ) |   |   | (2,655,547 | ) |
| Prepaids                                                |   |                      | (234,409   | ) |   |   | (311,658 | ) |
| FHLB      stock dividends                               |   |                      | (465,562   | ) |   |   | (465,562 | ) |
|                                                    |   |                      | (7,065,941 | ) |   |   | (5,992,380 | ) |
|                                                    |   |                      |       |   |   |   |   |   |
| Net      deferred tax liability                         |   | $                         | (2,715,716 | ) |   | $ | (2,987,770 | ) |

| Note      15: | Other      Comprehensive Income (Loss) |
|---------------|----------------------------------------|

|                                               |   | 2009   |      |   | 2008   |   |     | 2007   |   |
|----------------------------------------------------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|
|                                               |   |   |      |   |   |   |     |   |   |
| Unrealized      gains (losses) on securities       |   |   |      |   |   |   |     |   |   |
| available      for sale                            |   | $      | 3,124,990 |   |   | $      | (308,925 | )      |   | $ | 1,459,768 |   |
| Reclassification      for realized amount included |   |   |      |   |   |   |     |   |   |   |   |   |
| in      income                                     |   |   | (960,320  | )      |   |   | -        |   |   |   | (1,998 | ) |
| Other      comprehensive income (loss),            |   |   |      |   |   |   |     |   |   |   |   |   |
| before      tax effect                             |   |   | 2,164,670 |   |   |   | (308,925 | )      |   |   | 1,457,770 |   |
| Tax      expense (benefit)                         |   |   | 735,988   |   |   |   | (105,033 | )      |   |   | 495,642 |   |
|                                               |   |   |      |   |   |   |     |   |   |   |   |   |
| Other      comprehensive income (loss)             |   | $      | 1,428,682 |   |   | $      | (203,892 | )      |   | $ | 962,128 |   |

----

| Note      16: | Regulatory      Matters |
|---------------|-------------------------|

----

|                           |   | Actual |   |   | For Capital AdequacyPurposes |   |   | To Be Well-CapitalizedUnder Prompt CorrectiveAction Provisions |   |
|--------------------------------|--------|--------|--------|--------|----------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|
|                           |   | Amount |   |   | Ratio                                  |   |   | Amount                                                                                  |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As      of December 31, 2009   |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Total      Capital             |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |
| (to      Risk-Weighted Assets) |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Consolidated                   |   | $      | 59.8   |   |                                   |   | 12.6   | %                                                                                       |   | $ | 37.8 |   |   |   | 8.0 | % |   | $ | - |   |   |   | N/A |   |
| State      Bank                |   |   | 50.9   |   |                                   |   | 11.1   | %                                                                                       |   |   | 36.7 |   |   |   | 8.0 | % |   |   | 45.8 |   |   |   | 10.0 | % |
|                           |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 Capital            |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (to      Risk-Weighted Assets) |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                   |   |   | 53.9   |   |                                   |   | 11.4   | %                                                                                       |   |   | 18.9 |   |   |   | 4.0 | % |   |   | - |   |   |   | N/A |   |
| State      Bank                |   |   | 45.2   |   |                                   |   | 9.9    | %                                                                                       |   |   | 18.3 |   |   |   | 4.0 | % |   |   | 27.5 |   |   |   | 6.0 | % |
|                           |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 Capital            |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (to      Average Assets)       |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                   |   |   | 53.9   |   |                                   |   | 8.2    | %                                                                                       |   |   | 26.1 |   |   |   | 4.0 | % |   |   | - |   |   |   | N/A |   |
| State      Bank                |   |   | 45.2   |   |                                   |   | 7.1    | %                                                                                       |   |   | 25.6 |   |   |   | 4.0 | % |   |   | 32.0 |   |   |   | 5.0 | % |
|                           |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As      of December 31, 2008   |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Capital             |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (to      Risk-Weighted Assets) |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                   |   | $      | 59.5   |   |                                   |   | 13.0   | %                                                                                       |   | $ | 36.5 |   |   |   | 8.0 | % |   | $ | - |   |   |   | N/A |   |
| State      Bank                |   |   | 50.0   |   |                                   |   | 11.3   | %                                                                                       |   |   | 35.4 |   |   |   | 8.0 | % |   |   | 44.3 |   |   |   | 10.0 | % |
|                           |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 Capital            |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (to      Risk-Weighted Assets) |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                   |   |   | 54.5   |   |                                   |   | 11.9   | %                                                                                       |   |   | 18.3 |   |   |   | 4.0 | % |   |   | - |   |   |   | N/A |   |
| State      Bank                |   |   | 45.0   |   |                                   |   | 10.2   | %                                                                                       |   |   | 17.7 |   |   |   | 4.0 | % |   |   | 26.6 |   |   |   | 6.0 | % |
|                           |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 Capital            |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (to      Average Assets)       |   |   |   |   |                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                   |   |   | 54.5   |   |                                   |   | 9.5    | %                                                                                       |   |   | 23.1 |   |   |   | 4.0 | % |   |   | - |   |   |   | N/A |   |
| State      Bank                |   |   | 45.0   |   |                                   |   | 7.7    | %                                                                                       |   |   | 23.5 |   |   |   | 4.0 | % |   |   | 29.3 |   |   |   | 5.0 | % |

----

| Note      17: | Related      Party Transactions |
|---------------|---------------------------------|

|                      |   | 2009   |       |   | 2008   |   |
|---------------------------|--------|--------|------------|--------|--------|--------|
|                      |   |   |       |   |   |   |   |   |
| Balance,      January 1   |   | $      | 5,465,000  |   |   | $      | 6,001,000 |   |
| New      Loans            |   |   | 525,000    |   |   |   | 3,243,000 |   |
| Repayments                |   |   | (3,370,000 | )      |   |   | (3,815,000 | ) |
| Other      changes        |   |   | -          |   |   |   | 36,000 |   |
|                      |   |   |       |   |   |   |   |   |
| Balance,      December 31 |   | $      | 2,620,000  |   |   | $      | 5,465,000 |   |

| Note      18: | Employee      Benefits |
|---------------|------------------------|

----

----

| Note      19: | Share      Based Compensation Plan |
|---------------|------------------------------------|

----

|                             |   | 2009   |   |   | 2007   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
|                             |   |   |   |   |   |   |
| Expected      volatility         |   |   | 25.8   | %      |   |   | 27.0 | % |
| Weighted-average      volatility |   |   | 25.77  | %      |   |   | 27.01 | % |
| Expected      dividends          |   |   | 5.0    | %      |   |   | 2.0 | % |
| Expected      term (in years)    |   |   | 10     |   |   |   | 10 |   |
| Risk-free      rate              |   |   | 1.60   | %      |   |   | 4.72 | % |

----

|                                |   | 2009   |    |
|-------------------------------------|--------|--------|---------|
|                                |   |   |    |   |   |   | Weighted- |   |   |   |
|                                |   |   |    |   | Weighted- |   | Average |   |   |   |
|                                |   |   |    |   | Average |   | Remaining |   | Aggregate |   |
|                                |   |   |    |   | Exercise |   | Contractual |   | Intrinsic |   |
|                                |   | Shares |    |   | Price |   | Term |   | Value |   |
|                                |   |   |    |   |   |   |   |   |   |   |
| Outstanding,      beginning of year |   |   | 315,763 |   |   | $ | 12.60 |   |   |   |   |   |
| Granted                             |   |   | 1,500   |   |   |   | 7.55 |   |   |   |   |   |
| Forfeited                           |   |   | 6,050   |   |   |   | 12.59 |   |   |   |   |   |
| Outstanding,      end of year       |   |   | 311,213 |   |   | $ | 12.58 |   |  5.07 |   | $ | - |   |
|                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Exercisable,      end of year       |   |   | 240,624 |   |   | $ | 12.92 |   | 4.48 |   | $ |  - |   |

----

| Note      20: | Earnings      Per Share |
|---------------|-------------------------|

|                                      |   | Year Ended December 31, 2009 |    |
|-------------------------------------------|--------|--------------------------------------------------|---------|
|                                      |   |                                             |    |   | Weighted- |   |   |   |   |
|                                      |   |                                             |    |   | Average |   |   | Per Share |   |
|                                      |   | Income                                           |    |   | Shares |   |   | Amount |   |
|                                      |   |                                             |    |   |   |   |   |   |   |
| Basic      earnings per share             |   |                                             |    |   |   |   |   |   |   |
| Net      income available to common       |   |                                             |    |   |   |   |   |   |   |
| shareholders                              |   | $                                                | 382,491 |   |   |   | 4,867,030 |   |   | $ | 0.07 |   |
| Effect      of dilutive securities        |   |                                             |    |   |   |   |   |   |   |   |   |   |
| Stock      options & restricted stock |   |                                             | -       |   |   |   | 3,373 |   |   |   |   |   |
| Diluted      earnings per share           |   |                                             |    |   |   |   |   |   |   |   |   |   |
|                                      |   |                                             |    |   |   |   |   |   |   |   |   |   |
| Net      income available to common       |   |                                             |    |   |   |   |   |   |   |   |   |   |
| shareholders      and assumed             |   |                                             |    |   |   |   |   |   |   |   |   |   |
| conversions                               |   | $                                                | 382,491 |   |   |   | 4,870,403 |   |   | $ | 0.07 |   |

|                                      |   | Year Ended December 31, 2008 |      |
|-------------------------------------------|--------|--------------------------------------------------|-----------|
|                                      |   |                                             |      |   | Weighted- |   |   |   |   |
|                                      |   |                                             |      |   | Average |   |   | Per Share |   |
|                                      |   | Income                                           |      |   | Shares |   |   | Amount |   |
|                                      |   |                                             |      |   |   |   |   |   |   |
| Basic      earnings per share             |   |                                             |      |   |   |   |   |   |   |
| Net      income available to common       |   |                                             |      |   |   |   |   |   |   |
| shareholders                              |   | $                                                | 5,217,239 |   |   |   | 4,925,694 |   |   | $ | 1.06 |   |
| Effect      of dilutive securities        |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Stock      options & restricted stock |   |                                             | -         |   |   |   | - |   |   |   |   |   |
| Diluted      earnings per share           |   |                                             |      |   |   |   |   |   |   |   |   |   |
|                                      |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Net      income available to common       |   |                                             |      |   |   |   |   |   |   |   |   |   |
| shareholders      and assumed             |   |                                             |      |   |   |   |   |   |   |   |   |   |
| conversions                               |   | $                                                | 5,217,239 |   |   |   | 4,925,694 |   |   | $ | 1.06 |   |

----

|                                |   | Year Ended December 31, 2007 |      |
|-------------------------------------|--------|--------------------------------------------------|-----------|
|                                |   |                                             |      |   | Weighted- |   |   |   |   |
|                                |   |                                             |      |   | Average |   |   | Per Share |   |
|                                |   | Income                                           |      |   | Shares |   |   | Amount |   |
|                                |   |                                             |      |   |   |   |   |   |   |
| Basic      earnings per share       |   |                                             |      |   |   |   |   |   |   |
| Net      income available to common |   |                                             |      |   |   |   |   |   |   |
| shareholders                        |   | $                                                | 3,256,635 |   |   |   | 5,010,987 |   |   | $ | 0.65 |   |
| Effect      of dilutive securities  |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Stock      options                  |   |                                             | -         |   |   |   | 4,324 |   |   |   |   |   |
| Diluted      earnings per share     |   |                                             |      |   |   |   |   |   |   |   |   |   |
|                                |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Net      income available to common |   |                                             |      |   |   |   |   |   |   |   |   |   |
| shareholders      and assumed       |   |                                             |      |   |   |   |   |   |   |   |   |   |
| conversions                         |   | $                                                | 3,256,635 |   |   |   | 5,015,311 |   |   | $ | 0.65 |   |

----

| Note      21: | Leases |
|---------------|--------|

| 2010                              |   | $      | 402,055   |   |
|-----------------------------------|--------|--------|-----------|--------|
| 2011                              |   |   | 379,775   |   |
| 2012                              |   |   | 268,892   |   |
| 2013                              |   |   | 252,128   |   |
| 2014                              |   |   | 200,000   |   |
| Thereafter                        |   |   | 420,412   |   |
|                              |   |   |      |   |
| Total      minimum lease payments |   | $      | 1,923,262 |   |

----

| Note      22: | Disclosures      about Fair Value of FinancialInstruments |
|---------------|-----------------------------------------------------------|

----

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
|                                          |   | Fair Values at |   |   |   |   |   |   |   |   |   |   |
| Description                                   |   | 12/31/2009 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Available-for-Sale      Securities:           |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury and Government             |   |   |   |   |   |   |   |   |   |   |   |   |
| Agencies                                      |   | $ | 12,943,649 |   |   |   | - |   |   | $ | 12,943,649 |   |   |   | - |   |
| Mortgage-backed      securities               |   |   | 52,246,278 |   |   |   | - |   |   |   | 52,246,278 |   |   |   | - |   |
| State      and political subdivisions         |   |   | 31,537,006 |   |   |   | - |   |   |   | 31,537,006 |   |   |   | - |   |
| Money      Market Mutual Fund                 |   |   | 8,333,179 |   |   |   | 8,333,179 |   |   |   | - |   |   |   | - |   |
| Equity      securities                        |   |   | 23,000 |   |   |   | - |   |   |   | 23,000 |   |   |   | - |   |

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
|                                          |   | Fair Values at |   |   |   |   |   |   |   |   |   |   |
| Description                                   |   | 12/31/2008 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Available-for-Sale      Securities:           |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury and Government             |   |   |   |   |   |   |   |   |   |   |   |   |
| Agencies                                      |   | $ | 15,183,883 |   |   |   | - |   |   | $ | 15,183,883 |   |   |   | - |   |
| Mortgage-backed      securities               |   |   | 64,546,425 |   |   |   | - |   |   |   | 64,546,425 |   |   |   | - |   |
| State      and political subdivisions         |   |   | 22,801,431 |   |   |   | - |   |   |   | 22,801,431 |   |   |   | - |   |
| Equity      securities                        |   |   | 23,000 |   |   |   | - |   |   |   | 23,000 |   |   |   | - |   |
| Other      securities                         |   |   | 51,736 |   |   |   | - |   |   |   | 51,736 |   |   |   | - |   |

----

----

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
|                                          |   | Fair Values at |   |   |   |   |   |   |   |   |   |   |
| Description                                   |   | 12/31/2009 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Impaired      loans                           |   | $ | 9,113,369 |   |   |   | - |   |   |   | - |   |   | $ | 9,113,369 |   |
| Mortgage      Servicing Rights                |   | $ | 1,955,153 |   |   |   | - |   |   |   | - |   |   | $ | 1,955,153 |   |
| Foreclosed      Assets                        |   | $ | 356,455 |   |   |   | - |   |   |   | - |   |   | $ | 356,455 |   |

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
|                                          |   | Fair Values at |   |   |   |   |   |   |   |   |   |   |
| Description                                   |   | 12/31/2008 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Impaired      loans                           |   | $ | 457,000 |   |   |   | - |   |   |   | - |   |   | $ | 457,000 |   |
| Mortgage      Servicing Rights                |   | $ | 607,078 |   |   |   | - |   |   |   | - |   |   | $ | 607,078 |   |

----

|                                         |   | December 31, 2009 |        |   | December 31, 2008 |   |
|----------------------------------------------|--------|-----------------------------|-------------|--------|-----------------------------|--------|
|                                         |   | Carrying                    |        |   | Fair                        |   |   | Carrying |   |   | Fair |   |
|                                         |   | Amount                      |        |   | Value                       |   |   | Amount |   |   | Value |   |
|                                         |   |                        |        |   |                        |   |   |   |   |   |   |   |
| Financial      assets                        |   |                        |        |   |                        |   |   |   |   |   |   |   |
| Cash      and cash equivalents               |   | $                           | 24,824,785  |   |                        | $      | 24,825,000 |   |   | $ | 28,059,532 |   |   | $ | 28,060,000 |   |
| Available-for-sale      securities           |   | $                           | 105,083,112 |   |                        | $      | 105,083,000 |   |   | $ | 102,606,475 |   |   | $ | 102,606,000 |   |
| Loans      held for sale                     |   | $                           | 16,857,648  |   |                        | $      | 17,070,000 |   |   | $ | 3,824,499 |   |   | $ | 3,824,000 |   |
| Loans,      net of allowance for loan losses |   | $                           | 445,527,403 |   |                        | $      | 446,266,000 |   |   | $ | 445,091,456 |   |   | $ | 451,805,000 |   |
| Federal      Reserve and FHLB Bank stock     |   | $                           | 3,748,250   |   |                        | $      | 3,748,000 |   |   | $ | 4,244,100 |   |   | $ | 4,244,000 |   |
| Interest      receivable                     |   | $                           | 2,324,868   |   |                        | $      | 2,325,000 |   |   | $ | 2,964,663 |   |   | $ | 2,965,000 |   |
|                                         |   |                        |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities                   |   |                        |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                     |   | $                           | 491,242,152 |   |                        | $      | 494,536,000 |   |   | $ | 484,220,584 |   |   | $ | 486,787,000 |   |
| Short-term      borrowings                   |   | $                           | 52,042,820  |   |                        | $      | 53,670,000 |   |   | $ | 43,425,978 |   |   | $ | 45,976,000 |   |
| Notes      payable                           |   | $                           | 2,146,776   |   |                        | $      | 2,128,000 |   |   | $ | 1,000,000 |   |   | $ | 1,000,000 |   |
| Federal      Home Loan Bank advances         |   | $                           | 35,266,510  |   |                        | $      | 36,476,000 |   |   | $ | 36,646,854 |   |   | $ | 38,196,000 |   |
| Trust      preferred securities              |   | $                           | 20,620,000  |   |                        | $      | 20,571,000 |   |   | $ | 20,620,000 |   |   | $ | 19,996,000 |   |

| Note      23: | Commitments      and Credit Risk |
|---------------|----------------------------------|

----

|                                             |   | 2009   |       |   | 2008   |   |
|--------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Loan      commitments and unused lines of credit |   | $      | 82,832,000 |   |   | $      | 67,785,000 |   |
| Standby      letters of credit                   |   |   | 279,000    |   |   |   | 5,436,000 |   |
| Total                                            |   | $      | 83,111,000 |   |   | $      | 73,221,000 |   |

----

| Note      24: | Future      Change in Accounting Principles |
|---------------|---------------------------------------------|

----

|                                                    |   | 2009   |       |   | 2008   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                    |   |   |       |   |   |   |
| Assets                                                  |   |   |       |   |   |   |
| Cash      and cash equivalents                          |   | $      | 378,064    |   |   | $      | 2,319,901 |   |
| Investment      in common stock of banking subsidiaries |   |   | 66,920,562 |   |   |   | 65,847,026 |   |
| Investment      in nonbanking subsidiaries              |   |   | 13,985,876 |   |   |   | 15,004,464 |   |
| Other      assets                                       |   |   | 2,916,216  |   |   |   | 1,913,586 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Total      assets                                       |   | $      | 84,200,718 |   |   | $      | 85,084,977 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Liabilities                                             |   |   |       |   |   |   |   |   |
| Trust      preferred securities                         |   | $      | 20,000,000 |   |   | $      | 20,000,000 |   |
| Borrowings      from nonbanking subsidiaries            |   |   | 620,000    |   |   |   | 620,000 |   |
| Other      liabilities                                  |   |   | 1,873,063  |   |   |   | 2,802,973 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Total      liabilities                                  |   |   | 22,493,063 |   |   |   | 23,422,973 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Stockholders'      Equity                               |   |   | 61,707,655 |   |   |   | 61,662,004 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Total      liabilities and stockholders' equity         |   | $      | 84,200,718 |   |   | $      | 85,084,977 |   |

----

|                                                              |   | 2009   |       |   | 2008   |   |        | 2007   |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
| Income                                                            |   |   |       |   |   |   |        |   |   |
| Interest      income                                              |   | $      | 752        |   |   | $      | 1,677       |   |   | $ | 4,324 |   |
| Dividends      from subsidiaries:                                 |   |   |       |   |   |   |        |   |   |   |   |   |
| Banking      Subsidiaries                                         |   |   | 2,400,000  |   |   |   | 22,100,000  |   |   |   | 1,200,000 |   |
| Nonbanking      subsidiaries                                      |   |   | 1,922,076  |   |   |   | 3,850,620   |   |   |   | 354,078 |   |
| Total                                                             |   |   | 4,322,076  |   |   |   | 25,950,620  |   |   |   | 1,554,078 |   |
| Other      income                                                 |   |   | 1,550,032  |   |   |   | 1,603,529   |   |   |   | 1,353,760 |   |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Total      income                                                 |   |   | 5,872,860  |   |   |   | 27,555,826  |   |   |   | 2,912,162 |   |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Expenses                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
| Interest      expense                                             |   |   | 1,573,293  |   |   |   | 1,691,792   |   |   |   | 1,808,520 |   |
| Other      expense                                                |   |   | 3,864,674  |   |   |   | 3,171,949   |   |   |   | 2,831,749 |   |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Total      expenses                                               |   |   | 5,437,967  |   |   |   | 4,863,741   |   |   |   | 4,640,269 |   |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Income      (loss) before income tax and equity                   |   |   |       |   |   |   |        |   |   |   |   |   |
| in      undistributed (excess distributed) income of subsidiaries |   |   | 434,893    |   |   |   | 22,692,085  |   |   |   | (1,728,107 | ) |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Income      tax benefit                                           |   |   | (1,321,333 | )      |   |   | (1,111,193  | )      |   |   | (1,115,943 | ) |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Income      (loss) before equity in undistributed (excess         |   |   |       |   |   |   |        |   |   |   |   |   |
| distributed)      income of subsidiaries                          |   |   | 1,756,226  |   |   |   | 23,803,278  |   |   |   | (612,164 | ) |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Equity      in undistributed (excess distributed)                 |   |   |       |   |   |   |        |   |   |   |   |   |
| income      of subsidiaries                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Banking      subsidiaries                                         |   |   | (355,146   | )      |   |   | (17,586,214 | )      |   |   | 1,710,405 |   |
| Nonbanking      subsidiaries                                      |   |   | (1,018,589 | )      |   |   | (999,825    | )      |   |   | 2,158,394 |   |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Total                                                             |   |   | (1,373,735 | )      |   |   | (18,586,039 | )      |   |   | 3,868,799 |   |
|                                                              |   |   |       |   |   |   |        |   |   |   |   |   |
| Net      income                                                   |   | $      | 382,491    |   |   | $      | 5,217,239   |   |   | $ | 3,256,635 |   |

----

|                                                |   | 2009   |       |   | 2008   |   |        | 2007   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
|                                                |   |   |       |   |   |   |        |   |   |
| Operating      Activities                           |   |   |       |   |   |   |        |   |   |
| Net      income                                     |   | $      | 382,491    |   |   | $      | 5,217,239   |   |   | $ | 3,256,635 |   |
| Items      not requiring (providing cash)           |   |   |       |   |   |   |        |   |   |   |   |   |
| Equity      in (undistributed) excess               |   |   |       |   |   |   |        |   |   |   |   |   |
| distributed      net income of                      |   |   |       |   |   |   |        |   |   |   |   |   |
| subsidiaries                                        |   |   | 1,373,735  |   |   |   | 18,586,039  |   |   |   | (3,868,799 | ) |
| Expense      of Stock Option Plan                   |   |   | 143,261    |   |   |   | 119,210     |   |   |   | 64,406 |   |
| Other      Assets                                   |   |   | (1,002,630 | )      |   |   | 7,874       |   |   |   | 731,085 |   |
| Other      liabilities                              |   |   | (929,910   | )      |   |   | (20,320     | )      |   |   | (283,757 | ) |
| Net      cash provided by (used in)                 |   |   |       |   |   |   |        |   |   |   |   |   |
| operating      activities                           |   |   | (33,053    | )      |   |   | 23,910,042  |   |   |   | (100,430 | ) |
|                                                |   |   |       |   |   |   |        |   |   |   |   |   |
| Investing      Activities                           |   |   |       |   |   |   |        |   |   |   |   |   |
| Cash      paid to shareholders of National          |   |   |       |   |   |   |        |   |   |   |   |   |
| Bank      of Montpelier acquisition                 |   |   | -          |   |   |   | (24,000,000 | )      |   |   | - |   |
| Net      cash used in                               |   |   |       |   |   |   |        |   |   |   |   |   |
| investing      activities                           |   |   | -          |   |   |   | (24,000,000 | )      |   |   | - |   |
|                                                |   |   |       |   |   |   |        |   |   |   |   |   |
| Financing      Activities                           |   |   |       |   |   |   |        |   |   |   |   |   |
| Cash      dividends paid                            |   |   | (1,752,493 | )      |   |   | (1,676,723  | )      |   |   | (1,302,827 | ) |
| Purchase      of treasury stock                     |   |   | (156,291   | )      |   |   | (1,002,760  | )      |   |   | (610,260 | ) |
| Net      cash used in                               |   |   |       |   |   |   |        |   |   |   |   |   |
| financing      activities                           |   |   | (1,908,784 | )      |   |   | (2,679,483  | )      |   |   | (1,913,087 | ) |
|                                                |   |   |       |   |   |   |        |   |   |   |   |   |
| Net      Change in Cash and Cash Equivalents        |   |   | (1,941,837 | )      |   |   | (2,769,441  | )      |   |   | (2,013,517 | ) |
|                                                |   |   |       |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents at Beginning of Year |   |   | 2,319,901  |   |   |   | 5,089,342   |   |   |   | 7,102,859 |   |
|                                                |   |   |       |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents at End of Year       |   | $      | 378,064    |   |   | $      | 2,319,901   |   |   | $ | 5,089,342 |   |

----

|                                       |   |    |        |   | Data       |   |       |   |   |   | Total      |   |   | Intersegment |        |   | Consolidated |   |
|--------------------------------------------|--------|---------|-------------|--------|------------|--------|------------|--------|--------|--------|------------|--------|--------|--------------|-------------|--------|--------------|--------|
| 2009                                       |   | Banking |        |   | Processing |   |       | Other  |   |   | Segments   |   |   | Elimination  |        |   | Totals       |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
| Income      Statement information:         |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
| Net      interest income (expense)         |   | $       | 22,753,280  |   |       | $      | (182,136   | )      |   | $      | (1,572,540 | )      |   | $            | 20,998,604  |   |         | $      | - |   |   | $ | 20,998,604 |   |
| Other      revenue - external customers    |   |    | 10,677,391  |   |       |   | 18,836,667 |   |   |   | 81,028     |   |   |         | 29,595,086  |   |         |   | - |   |   |   | 29,595,086 |   |
| Other      revenue - other segments        |   |    | 92,493      |   |       |   | 1,599,589  |   |   |   | 1,497,767  |   |   |         | 3,189,849   |   |         |   | (3,189,849 | ) |   |   | - |   |
| Net      interest income and other revenue |   |    | 33,523,164  |   |       |   | 20,254,120 |   |   |   | 6,255      |   |   |         | 53,783,539  |   |         |   | (3,189,849 | ) |   |   | 50,593,690 |   |
| Non-interest      expense                  |   |    | 25,529,882  |   |       |   | 18,928,782 |   |   |   | 3,864,674  |   |   |         | 48,323,338  |   |         |   | (3,189,849 | ) |   |   | 45,133,489 |   |
| Significant      noncash items:            |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Depreciation      and amortization         |   |    | 1,039,284   |   |       |   | 3,334,636  |   |   |   | 99,447     |   |   |         | 4,473,367   |   |         |   | - |   |   |   | 4,473,367 |   |
| Provision      for loan losses             |   |    | 5,738,098   |   |       |   | -          |   |   |   | -          |   |   |         | 5,738,098   |   |         |   | - |   |   |   | 5,738,098 |   |
| Income      tax expense                    |   |    | 210,330     |   |       |   | 450,615    |   |   |   | (1,321,333 | )      |   |         | (660,388    | )      |         |   | - |   |   |   | (660,388 | ) |
| Segment      profit                        |   | $       | 2,044,854   |   |       | $      | 874,723    |   |   | $      | (2,537,086 | )      |   | $            | 382,491     |   |         | $      | - |   |   | $ | 382,491 |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Balance      sheet information:            |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Total      assets                          |   | $       | 652,166,943 |   |       | $      | 22,774,098 |   |   | $      | 83,110,060 |   |   | $            | 758,051,101 |   |         | $      | (85,001,999 | ) |   | $ | 673,049,102 |   |
| Goodwill      and intangibles              |   |    | 19,472,484  |   |       |   | 6,919,819  |   |   |   | -          |   |   |         | 26,392,303  |   |         |   | - |   |   |   | 26,392,303 |   |
| Premises      and equipment expenditures   |   | $       | 548,824     |   |       | $      | 2,805,922  |   |   | $      | 51,510     |   |   | $            | 3,406,256   |   |         | $      | - |   |   | $ | 3,406,256 |   |

----

|                                       |   |    |        |   | Data       |   |       |   |   |   | Total      |   |   | Intersegment |        |   | Consolidated |   |
|--------------------------------------------|--------|---------|-------------|--------|------------|--------|------------|--------|--------|--------|------------|--------|--------|--------------|-------------|--------|--------------|--------|
| 2008                                       |   | Banking |        |   | Processing |   |       | Other  |   |   | Segments   |   |   | Elimination  |        |   | Totals       |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
| Income      Statement information:         |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
| Net      interest income (expense)         |   | $       | 19,327,854  |   |       | $      | (109,864   | )      |   | $      | (1,690,115 | )      |   | $            | 17,527,875  |   |         | $      | - |   |   | $ | 17,527,875 |   |
| Other      revenue - external customers    |   |    | 7,694,299   |   |       |   | 20,162,913 |   |   |   | 203,525    |   |   |         | 28,060,737  |   |         |   | - |   |   |   | 28,060,737 |   |
| Other      revenue - other segments        |   |    | 54,019      |   |       |   | 1,513,093  |   |   |   | 1,432,097  |   |   |         | 2,999,209   |   |         |   | (2,999,209 | ) |   |   | - |   |
| Net      interest income and other revenue |   |    | 27,076,172  |   |       |   | 21,566,142 |   |   |   | (54,493    | )      |   |         | 48,587,821  |   |         |   | (2,999,209 | ) |   |   | 45,588,612 |   |
| Non-interest      expense                  |   |    | 20,088,447  |   |       |   | 17,295,426 |   |   |   | 3,171,950  |   |   |         | 40,555,823  |   |         |   | (2,999,209 | ) |   |   | 37,556,614 |   |
| Significant      noncash items:            |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Depreciation      and amortization         |   |    | 1,012,382   |   |       |   | 2,535,876  |   |   |   | 136,100    |   |   |         | 3,684,358   |   |         |   | - |   |   |   | 3,684,358 |   |
| Provision      for loan losses             |   |    | 689,567     |   |       |   | -          |   |   |   | -          |   |   |         | 689,567     |   |         |   | - |   |   |   | 689,567 |   |
| Income      tax expense                    |   |    | 1,784,371   |   |       |   | 1,452,014  |   |   |   | (1,111,193 | )      |   |         | 2,125,192   |   |         |   | - |   |   |   | 2,125,192 |   |
| Segment      profit                        |   | $       | 4,513,787   |   |       | $      | 2,818,702  |   |   | $      | (2,115,250 | )      |   | $            | 5,217,239   |   |         | $      | - |   |   | $ | 5,217,239 |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Balance      sheet information:            |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Total      assets                          |   | $       | 637,108,955 |   |       | $      | 19,955,458 |   |   | $      | 85,084,977 |   |   | $            | 742,149,390 |   |         | $      | (84,530,481 | ) |   | $ | 657,618,909 |   |
| Goodwill      and intangibles              |   |    | 20,113,196  |   |       |   | 7,137,530  |   |   |   | -          |   |   |         | 27,250,726  |   |         |   | - |   |   |   | 27,250,726 |   |
| Premises      and equipment expenditures   |   | $       | 2,437,582   |   |       | $      | 5,501,574  |   |   | $      | 106,610    |   |   | $            | 8,045,766   |   |         | $      | - |   |   | $ | 8,045,766 |   |

|                                       |   |    |        |   | Data       |   |       |   |   |   | Total      |   |   | Intersegment |        |   | Consolidated |   |
|--------------------------------------------|--------|---------|-------------|--------|------------|--------|------------|--------|--------|--------|------------|--------|--------|--------------|-------------|--------|--------------|--------|
| 2007                                       |   | Banking |        |   | Processing |   |       | Other  |   |   | Segments   |   |   | Elimination  |        |   | Totals       |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
| Income      Statement information:         |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |
| Net      interest income (expense)         |   | $       | 16,859,523  |   |       | $      | (268,014   | )      |   | $      | (1,804,197 | )      |   | $            | 14,787,312  |   |         | $      | - |   |   | $ | 14,787,312 |   |
| Other      revenue - external customers    |   |    | 7,434,979   |   |       |   | 19,347,947 |   |   |   | 78,473     |   |   |         | 26,861,399  |   |         |   | - |   |   |   | 26,861,399 |   |
| Other      revenue - other segments        |   |    | 551,681     |   |       |   | 1,539,854  |   |   |   | 1,314,861  |   |   |         | 3,406,396   |   |         |   | (3,406,396 | ) |   |   | - |   |
| Net      interest income and other revenue |   |    | 24,846,183  |   |       |   | 20,619,787 |   |   |   | (410,863   | )      |   |         | 45,055,107  |   |         |   | (3,406,396 | ) |   |   | 41,648,711 |   |
| Non-interest      expense                  |   |    | 20,338,289  |   |       |   | 16,872,968 |   |   |   | 2,831,749  |   |   |         | 40,043,006  |   |         |   | (3,406,396 | ) |   |   | 36,636,610 |   |
| Significant      noncash items:            |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Depreciation      and amortization         |   |    | 999,594     |   |       |   | 2,837,758  |   |   |   | 132,570    |   |   |         | 3,969,922   |   |         |   | - |   |   |   | 3,969,922 |   |
| Provision      for loan losses             |   |    | 521,306     |   |       |   | -          |   |   |   | -          |   |   |         | 521,306     |   |         |   | - |   |   |   | 521,306 |   |
| Income      tax expense                    |   |    | 1,076,183   |   |       |   | 1,273,919  |   |   |   | (1,115,942 | )      |   |         | 1,234,160   |   |         |   | - |   |   |   | 1,234,160 |   |
| Segment      profit                        |   | $       | 2,910,405   |   |       | $      | 2,472,900  |   |   | $      | (2,126,670 | )      |   | $            | 3,256,635   |   |         | $      | - |   |   | $ | 3,256,635 |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Balance      sheet information:            |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
|                                       |   |    |        |   |       |   |       |   |   |   |       |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Total      assets                          |   | $       | 541,717,871 |   |       | $      | 20,419,865 |   |   | $      | 81,439,870 |   |   | $            | 643,577,606 |   |         | $      | (82,363,608 | ) |   | $ | 561,213,998 |   |
| Goodwill      and intangibles              |   |    | 11,691,382  |   |       |   | 7,384,464  |   |   |   | -          |   |   |         | 19,075,846  |   |         |   | - |   |   |   | 19,075,846 |   |
| Premises      and equipment expenditures   |   | $       | 1,457,804   |   |       | $      | 2,147,634  |   |   | $      | 96,231     |   |   | $            | 3,701,669   |   |         | $      | - |   |   | $ | 3,701,669 |   |

----

| Note 27:  | Quarterly      Financial Information (Unaudited) |
|---------------------|--------------------------------------------------|

| December      31, 2009         |   | March  |       |   | June   |   |       | September |   |   | December   |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|------------|-----------|--------|--------|------------|--------|
| Interest      income           |   | $      | 8,147,603  |   |   | $      | 8,289,666  |      |   | $      | 8,186,375  |   |   | $ | 7,967,506 |   |
| Interest      expense          |   |   | 3,131,740  |   |   |   | 2,928,277  |      |   |   | 2,849,660  |   |   |   | 2,682,869 |   |
| Net      interest income       |   |   | 5,015,863  |   |   |   | 5,361,389  |      |   |   | 5,336,715  |   |   |   | 5,284,637 |   |
| Provision      for loan losses |   |   | 495,142    |   |   |   | 798,850    |      |   |   | 898,050    |   |   |   | 3,546,056 |   |
| Non-interest      income       |   |   | 7,447,505  |   |   |   | 7,897,791  |      |   |   | 7,075,711  |   |   |   | 7,174,079 |   |
| Non-interest      expense      |   |   | 10,475,024 |   |   |   | 11,108,057 |      |   |   | 11,454,115 |   |   |   | 12,096,293 |   |
| Income      tax expense        |   |   | 389,649    |   |   |   | 348,687    |      |   |   | (99,421    | )      |   |   | (1,299,303 | ) |
| Net      income                |   |   | 1,103,553  |   |   |   | 1,003,586  |      |   |   | 159,682    |   |   |   | (1,884,330 | ) |
|                           |   |   |       |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Earnings      per share        |   |   |       |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Basis                          |   |   | 0.23       |   |   |   | 0.20       |      |   |   | 0.03       |   |   |   | (0.39 | ) |
| Diluted                        |   |   | 0.23       |   |   |   | 0.20       |      |   |   | 0.03       |   |   |   | (0.39 | ) |
|                           |   |   |       |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Dividends      per share       |   |   | 0.09       |   |   |   | 0.09       |      |   |   | 0.09       |   |   |   | 0.09 |   |

| December      31, 2008         |   | March  |      |   | June   |   |      | September |   |   | December  |   |
|--------------------------------|--------|--------|-----------|--------|--------|--------|-----------|-----------|--------|--------|-----------|--------|
| Interest      income           |   | $      | 8,125,216 |   |   | $      | 8,315,525 |      |   | $      | 8,021,596 |   |   | $ | 8,206,108 |   |
| Interest      expense          |   |   | 4,308,000 |   |   |   | 3,883,367 |      |   |   | 3,573,107 |   |   |   | 3,376,096 |   |
| Net      interest income       |   |   | 3,817,216 |   |   |   | 4,432,158 |      |   |   | 4,448,489 |   |   |   | 4,830,012 |   |
| Provision      for loan losses |   |   | 192,218   |   |   |   | 212,997   |      |   |   | 146,173   |   |   |   | 138,179 |   |
| Non-interest      income       |   |   | 7,515,513 |   |   |   | 6,801,158 |      |   |   | 6,988,712 |   |   |   | 6,755,354 |   |
| Non-interest      expense      |   |   | 9,601,360 |   |   |   | 9,110,346 |      |   |   | 9,278,898 |   |   |   | 9,566,009 |   |
| Income      tax expense        |   |   | 429,795   |   |   |   | 554,149   |      |   |   | 588,090   |   |   |   | 553,159 |   |
| Net      income                |   |   | 1,109,356 |   |   |   | 1,355,824 |      |   |   | 1,424,040 |   |   |   | 1,328,019 |   |
|                           |   |   |      |   |   |   |      |      |   |   |      |   |   |   |   |   |
| Earnings      per share        |   |   |      |   |   |   |      |      |   |   |      |   |   |   |   |   |
| Basis                          |   |   | 0.22      |   |   |   | 0.28      |      |   |   | 0.29      |   |   |   | 0.27 |   |
| Diluted                        |   |   | 0.22      |   |   |   | 0.28      |      |   |   | 0.29      |   |   |   | 0.27 |   |
|                           |   |   |      |   |   |   |      |      |   |   |      |   |   |   |   |   |
| Dividends      per share       |   |   | 0.08      |   |   |   | 0.08      |      |   |   | 0.09      |   |   |   | 0.09 |   |

----

| Note      28:  | Business      Acquisitions |
|---------------------|----------------------------|

----

| Cash      and cash equivalents |   | $     | 9,226,000   |   |
|--------------------------------|--------|---------------------------|-------------|--------|
| Investments                    |   |                      | 48,774,000  |   |
| Loans                          |   |                      | 43,655,000  |   |
| Core      deposits intangible  |   |                      | 1,411,000   |   |
| Goodwill                       |   |                      | 7,474,000   |   |
| Premises      and equipment    |   |                      | 1,678,000   |   |
| Other      assets              |   |                      | 1,223,000   |   |
| Total      assets acquired     |   | $                         | 113,441,000 |   |
|                           |   |                      |        |   |
| Deposits                       |   | $                         | 86,794,000  |   |
| Other      liabilities         |   |                      | 1,417,000   |   |
| Total      liabilities assumed |   |                      | 88,211,000  |   |
| Net      assets acquired       |   | $                         | 25,230,000  |   |

|                                   |   | Year Ended      December 31, |   |
|----------------------------------------|--------|-----------------------------------|--------|
| ($      000's) (except per share data) |   | 2008                              |   |   | 2007 |   |
| Net      interest income               |   | $                  | 21,174 |   |   | $    | 18,753 |   |
| Net      income                        |   | $                                 | 6,313  |   |   | $ | 4,325 |   |
| Per      share - combined:             |   |                              |   |   |   |   |   |   |
| Basic      net income                  |   | $                                 | 1.25   |   |   | $ | 0.86 |   |
| Diluted      net  income     |   | $                                 | 1.25   |   |   | $ | 0.86 |   |

----

----

----

| Exhibit No. |   | Description                                                                                                                                                                                                   |   | Location                                                                                                                                                                                    |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 2.1              |   | Agreement      and Plan of Merger, dated as of May 22, 2008, by and among Rurban      Financial Corp., Rurban Merger Corp, and NBM Bancorp,      Incorporated                                                 |   | Incorporated      herein by reference to Exhibit 2.1 to the Company’s Current Report on Form      8-K filed May 23, 2008 (File No. 0-13507).                                          |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 2.2              |   | Agreement      and Plan of Merger, dated as of April 25, 2009, by and among Rurbanc Data      Services, Inc., NC Merger Corp. and New Core Holdings,Inc.                                                      |   | Incorporated      herein by reference to Exhibit 2.1 to the Company’s Current Report on Form      8-K filed April 29, 2009 (File No. 0-13507).                                        |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 2.3              |   | First      Amendment to Agreement and Plan of Merger, dated as of December 29, 2009,      by and among Rurbanc Data Services, Inc., NC Merger Corp. and New Core      Holdings, Inc.                          |   | Filed      herewith.                                                                                                                                                                        |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.1              |   | Amended      Articles of Registrant, as amended                                                                                                                                                               |   | Incorporated      herein by reference to Exhibit 3(a)(i) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1989 (File No.      0-13507).   |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.2              |   | Certificate      of Amendment to the Amended Articles of Rurban Financial    Corp.                                                                                                                            |   | Incorporated      herein by reference to Exhibit 3(b) to the Company’s Annual Report on Form      10-K for the fiscal year ended December 31, 1993 (File No.      0-13507). |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.3              |   | Certificate      of Amendment to the Amended Articles of Rurban Financial    Corp.                                                                                                                            |   | Incorporated      herein by reference to Exhibit 3(c) to the Company’s Annual Report on Form      10-K for the fiscal year ended December 31, 1997 (File No.      0-13507). |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.4              |   | Amended      and Restated Articles of Rurban Financial Corp. [Note: filed for purposes of      SEC reporting compliance only – this document has not been filed with the      Ohio Secretary of State.] |   | Filed      herewith.                                                                                                                                                                        |
|             |   |                                                                                                                                                                                                          |   |                                                                                                                                                                                        |
| 3.5              |   | Amended      and Restated Regulations of Rurban Financial Corp.                                                                                                                                               |   | Incorporated      herein by reference to Exhibit 3.5 to the Company’s Annual Report on Form      10-K for the fiscal year ended December 31, 2005 (File No.      0-13507).            |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                      |   | Location                                                                                                                                                                                           |
|------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 3.6              |   | Certificate      Regarding Adoption of Amendment to Section 2.01 of the Amended and      Restated Regulations of Rurban Financial Corp. by the Shareholders on      April 16, 2009                                               |   | Incorporated      herein by reference to Exhibit 3.1 to the Company’s Current Report on Form      8-K filed April 22, 2009 (File No. 0-13507).                                               |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.1              |   | Indenture,      dated as of September 15, 2005, by and between Rurban Financial Corp. and      Wilmington Trust Company, as Debenture Trustee, relating to Floating Rate      Junior Subordinated Deferrable Interest Debentures |   | Incorporated      herein by reference to Exhibit 4.1 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended September 30, 2005 (File No.      0-13507).          |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.2              |   | Amended      and Restated Declaration of Trust of Rurban Statutory Trust II, dated as      of September 15, 2005                                                                                                                 |   | Incorporated      herein by reference to Exhibit 4.2 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended September 30, 2005 (File No.      0-13507).          |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.3              |   | Guarantee      Agreement, dated as of September 15, 2005, by and between Rurban Financial      Corp. and Wilmington Trust Company, as Guarantee Trustee                                                                          |   | Incorporated      herein by reference to Exhibit 4.3 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended September 30, 2005 (File No.      0-13507).          |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 4.4              |   | Agreement      to furnish instruments and agreements defining rights of holders of      long-term debt                                                                                                                           |   | Filed      herewith.                                                                                                                                                                               |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.1*       |   | Rurban      Financial Corp. Plan to Allow Directors to Elect to Defer      Compensation                                                                                                                                          |   | Incorporated      herein by reference to Exhibit 10(v) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1996 (File      No.  0-13507). |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.2*            |   | Rurban      Financial Corp. 1997 Stock Option Plan                                                                                                                                                                               |   | Incorporated      herein by reference to Exhibit 10(v) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1996 (File No.      0-13507).                 |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.3*            |   | Form      of Non-Qualified Stock Option Agreement with Five-Year Vesting under      Rurban Financial Corp. 1997 Stock Option Plan                                                                                                |   | Incorporated      herein by reference to Exhibit 10(w) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1997 (File No.      0-13507).       |
|             |   |                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
| 10.4*            |   | Form      of Non-Qualified Stock Option Agreement with Vesting After One Year of      Employment under Rurban Financial Corp. 1997 Stock Option    Plan                                                                          |   | Incorporated      herein by reference to Exhibit 10(a) to the Company’s Current Report on      Form 8-K filed March 21, 2005 (File No.  0-13507).                                            |

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| Exhibit No. |   | Description                                                                                                                                                                 |   | Location                                                                                                                                                                                     |
|------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.5*            |   | Form      of Incentive Stock Option Agreement with Five-Year Vesting under Rurban      Financial Corp. 1997 Stock Option Plan                                               |   | Incorporated      herein by reference to Exhibit 10(x) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1997 (File No.      0-13507). |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.6*            |   | Form      of Incentive Stock Option Agreement with Vesting After One Year of      Employment under Rurban Financial Corp. 1997 Stock Option    Plan                         |   | Incorporated      herein by reference to Exhibit 10(c) to the Company’s Current Report on      Form 8-K filed March 21, 2005 (File No. 0-13507).                                       |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.7*       |   | Form      of Stock Appreciation Rights under Rurban Financial Corp. 1997 Stock      Option Plan                                                                        |   | Incorporated      herein by reference to Exhibit 10(b) to the Company’s Current Report on      Form 8-K filed March 21, 2005 (File No. 0-13507).                                       |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.8*            |   | Rurban      Financial Corp. 2008 Stock Incentive Plan                                                                                                                       |   | Incorporated      herein by reference to Exhibit 10 to the Company’s Current Report on Form      8-K filed April 22, 2008 (File No. 0-13507).                                          |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.9*       |   | Form      of Restricted Stock Award Agreement (For Employees) under Rurban Financial      Corp. 2008 Stock Option Plan                                                      |   | In      Incorporated herein by reference to Exhibit 10.2 to the Company’s Current      Report on Form 8-K filed April 22, 2008 (File No.  0-13507).                                    |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.10*           |   | Employees’      Stock Ownership and Savings Plan of Rurban Financial Corp.                                                                                            |   | Incorporated      herein by reference to Exhibit 10(y) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 1999 (File No.      0-13507).           |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.11*           |   | Rurban      Financial Corp. Employee Stock Purchase Plan                                                                                                                    |   | Incorporated      herein by reference to Exhibit 10(z) to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 2002 (File No.      0-13507).           |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.12*           |   | Employment      Agreement, executed March 6, 2006 and effective as of March 1, 2006, by      and between Rurban Financial Corp. and Kenneth A. Joyce                        |   | Incorporated      herein by reference to Exhibit 10.10 to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 2005 (File No.      0-13507).           |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.13*           |   | First      Amendment to Employment Agreement, executed May 19, 2006 and effective as      of March 1, 2006, by and between Rurban Financial Corp. and Kenneth A.      Joyce |   | Incorporated      herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended June 30, 2006 (File No.      0-13507).        |
|             |   |                                                                                                                                                                        |   |                                                                                                                                                                                         |
| 10.14*      |   | Second      Amendment to Employment Agreement, effective as of December 31, 2008, by      and between Rurban Financial Corp. and Kenneth A. Joyce                           |   | Incorporated      herein by reference to Exhibit 10.14 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).         |

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| Exhibit No.   |   | Description                                                                                                                                                                                                                                  |   | Location                                                                                                                                                                                  |
|--------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.15*        |   | Amended      and Restated Supplemental Executive Retirement Plan Agreement, effective      as of December 31, 2008, by and between Rurban Financial Corp. and Kenneth      A. Joyce                                                          |   | Filed      herewith.                                                                                                                                                                      |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.16*   |   | Schedule      dated December 31, 2008 identifying other substantially identical Amended      and Restated Supplemental Executive Retirement Plan Agreements with      executive officers of Rurban Financial Corp. and its      subsidiaries |   | Incorporated      herein by reference to Exhibit 10.16 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).      |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.17*             |   | First      Amendment to Amended and Restated Supplemental Executive Retirement Plan      Agreement, dated as April 20, 2009, by and between Rurban Financial Corp.      and Mark A. Klein                                                    |   | Incorporated      herein by reference to Exhibit 10.3 to the Company’s Current Report on      Form 8-K filed April 22, 2009 (File No. 0-13507).                                     |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.18*             |   | Amended      and Restated Change in Control Agreement, effective as of December 31,      2008, by and between Rurban Financial Corp. and Duane L.    Sinn                                                                                    |   | Incorporated      herein by reference to Exhibit 10.17 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).      |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.19*             |   | Schedule      dated  December 31, 2008 identifying other substantially      identical Amended and Restated Change in Control Agreements with executive      officers of Rurban Financial Corp. and its subsidiaries                |   | Incorporated      herein by reference to Exhibit 10.18 to the Company’s Annual Report on      Form 10-K for the annual period ended December 31, 2008 (File No.      0-13507).      |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.20              |   | Form      of Incentive Stock Option Agreement with Five-Year Vesting under Rurban      Financial Corp. 2008 Stock Incentive Plan                                                                                                             |   | Filed      herewith.                                                                                                                                                                      |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.21              |   | Form      of Non-Qualified Stock Option Agreement with Five-Year Vesting under      Rurban Financial Corp. 2008 Stock Incentive Plan                                                                                                         |   | Filed      herewith.                                                                                                                                                                      |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.22*             |   | Non-Qualified      Deferred Compensation Plan effective as of January 1, 2007                                                                                                                                                                |   | Incorprated      herein by reference to Exhibit 10.20 to the Company’s Annual Report on      Form 10-K for the fiscal year ended December 31, 2006 (File No.      0-13507)          |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 10.23              |   | Separation      and Distribution Agreement, dated as of December 11, 2009,  by      and between Rurban Financial Corp. and Rurbanc Data Services,      Inc.                                                                        |   | Filed      herewith.                                                                                                                                                                      |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 11                 |   | Statement      re: Computation of Per Share Earnings                                                                                                                                                                                         |   | Included      in Note 1 of the Notes to  Consolidated Financial      Statements of Registrant in the financial statements portion of this      Annual Report on Form 10-K. |
|               |   |                                                                                                                                                                                                                                         |   |                                                                                                                                                                                      |
| 21                 |   | Subsidiaries      of Registrant                                                                                                                                                                                                              |   | Filed      herewith.                                                                                                                                                                      |

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| Exhibit No. |   | Description                                                                                              |   | Location                                                           |
|------------------|--------|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|             |   |                                                                                                     |   |                                                               |
| 23               |   | Consent      of BKD, LLP                                                                                 |   | Filed      herewith.                                               |
|             |   |                                                                                                     |   |                                                               |
| 24               |   | Power      of Attorney of Directors and Executive Officers                                               |   | Included      on signature page of this Annual Report on Form 10-K |
|             |   |                                                                                                     |   |                                                               |
| 31.1             |   | Rule      13a-14(a)/15d-14(a) Certification – Principal Executive      Officer                     |   | Filed      herewith.                                               |
|             |   |                                                                                                     |   |                                                               |
| 31.2             |   | Rule      13a-14(a)/15d-14(a) Certification – Principal Financial      Officer                     |   | Filed      herewith.                                               |
|             |   |                                                                                                     |   |                                                               |
| 32.1             |   | Section      1350 Certification – Principal Executive Officer and Principal Financial      Officer |   | Filed      herewith.                                               |

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