----

|   |                                               |
|--------|-----------------------------------------------|
|   | McNAIR, McLEMORE, MIDDLEBROOKS & CO., LLC |

----

|                                                                                                         |   | 2010   |          |   | 2009   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
|                                                                                                         |   |   |          |   |   |   |
| Cash and Cash Equivalents                                                                                    |   |   |          |   |   |   |
| Cash and Due from Banks                                                                                      |   | $      | 16,613,187    |   |   | $      | 25,995,486 |   |
| Federal Funds Sold                                                                                           |   |   | 32,536,482    |   |   |   | 16,433,256 |   |
| Securities Purchased Under Agreements to Resell                                                              |   |   | 5,000,000     |   |   |   | - |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
|                                                                                                         |   |   | 54,149,669    |   |   |   | 42,428,742 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Interest-Bearing Deposits                                                                                    |   |   | 50,726,734    |   |   |   | 6,478,801 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Investment Securities                                                                                        |   |   |          |   |   |   |   |   |
| Available for Sale, at Fair Value                                                                            |   |   | 303,837,606   |   |   |   | 267,246,673 |   |
| Held to Maturity, at Cost (Fair Value of $52,941 and $56,999 as of December 31, 2010 and 2009, Respectively) |   |   | 48,412        |   |   |   | 53,906 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
|                                                                                                         |   |   | 303,886,018   |   |   |   | 267,300,579 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Federal Home Loan Bank Stock, at Cost                                                                        |   |   | 6,063,500     |   |   |   | 6,345,400 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Loans                                                                                                        |   |   | 813,250,673   |   |   |   | 931,391,626 |   |
| Allowance for Loan Losses                                                                                    |   |   | (28,280,077   | )      |   |   | (31,400,641 | ) |
| Unearned Interest and Fees                                                                                   |   |   | (61,311       | )      |   |   | (139,597 | ) |
|                                                                                                         |   |   |          |   |   |   |   |   |
|                                                                                                         |   |   | 784,909,285   |   |   |   | 899,851,388 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Premises and Equipment                                                                                       |   |   | 27,147,725    |   |   |   | 28,826,350 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Other Real Estate (Net of Allowance of $1,293,174 and $467,408 in 2010 and 2009, Respectively)               |   |   | 20,207,806    |   |   |   | 19,705,044 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Other Intangible Assets                                                                                      |   |   | 295,007       |   |   |   | 330,756 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Other Assets                                                                                                 |   |   | 28,272,629    |   |   |   | 35,822,274 |   |
|                                                                                                         |   |   |          |   |   |   |   |   |
| Total Assets                                                                                                 |   | $      | 1,275,658,373 |   |   | $      | 1,307,089,334 |   |

----

|                                                                                                                                           |   | 2010   |          |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
|                                                                                                                                           |   |   |          |   |   |   |
| Deposits                                                                                                                                       |   |   |          |   |   |   |
| Noninterest-Bearing                                                                                                                            |   | $      | 102,959,423   |   |   | $      | 84,238,839 |   |
| Interest-Bearing                                                                                                                               |   |   | 956,164,581   |   |   |   | 973,347,642 |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
|                                                                                                                                           |   |   | 1,059,124,004 |   |   |   | 1,057,586,481 |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
| Borrowed Money                                                                                                                                 |   |   |          |   |   |   |   |   |
| Securities Sold Under Agreements to Repurchase                                                                                                 |   |   | 20,000,000    |   |   |   | 40,000,000 |   |
| Subordinated Debentures                                                                                                                        |   |   | 24,229,000    |   |   |   | 24,229,000 |   |
| Other Borrowed Money                                                                                                                           |   |   | 75,076,010    |   |   |   | 91,000,000 |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
|                                                                                                                                           |   |   | 119,305,010   |   |   |   | 155,229,000 |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
| Other Liabilities                                                                                                                              |   |   | 4,270,776     |   |   |   | 4,999,229 |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
| Commitments and Contingencies                                                                                                                  |   |   |          |   |   |   |   |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
| Stockholders’ Equity                                                                                                                     |   |   |          |   |   |   |   |   |
| Preferred Stock, No Par Value; Authorized 10,000,000 Shares, Issued 28,000 Shares                                                              |   |   | 27,505,910    |   |   |   | 27,356,964 |   |
| Common Stock, Par Value $1; Authorized 20,000,000 Shares, Issued 8,442,958 and 7,229,163 Shares as of December 31, 2010 and 2009, Respectively |   |   | 8,442,958     |   |   |   | 7,229,163 |   |
| Paid-In Capital                                                                                                                                |   |   | 29,171,087    |   |   |   | 25,392,913 |   |
| Retained Earnings                                                                                                                              |   |   | 28,479,211    |   |   |   | 29,553,941 |   |
| Restricted Stock - Unearned Compensation                                                                                                       |   |   | (40,794       | )      |   |   | (158,548 | ) |
| Accumulated Other Comprehensive Income, Net of Tax                                                                                             |   |   | (599,789      | )      |   |   | (99,809 | ) |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
|                                                                                                                                           |   |   | 92,958,583    |   |   |   | 89,274,624 |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
|                                                                                                                                           |   |   |          |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                               |   | $      | 1,275,658,373 |   |   | $      | 1,307,089,334 |   |

----

|                                                                       |   | 2010   |       |   | 2009   |   |        | 2008   |   |
|----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
| Interest Income                                                            |   |   |       |   |   |   |        |   |   |
| Loans, Including Fees                                                      |   | $      | 51,728,665 |   |   | $      | 57,620,911  |   |   | $ | 66,732,488 |   |
| Federal Funds Sold and Securities Purchased Under Agreements to Resell     |   |   | 95,428     |   |   |   | 24,438      |   |   |   | 273,476 |   |
| Deposits with Other Banks                                                  |   |   | 38,085     |   |   |   | 553         |   |   |   | 27,452 |   |
| Investment Securities                                                      |   |   |       |   |   |   |        |   |   |   |   |   |
| U. S. Government Agencies                                                  |   |   | 6,613,030  |   |   |   | 7,626,856   |   |   |   | 7,140,902 |   |
| State, County and Municipal                                                |   |   | 103,133    |   |   |   | 258,545     |   |   |   | 410,298 |   |
| Corporate Obligations                                                      |   |   | 137,831    |   |   |   | 296,273     |   |   |   | 414,319 |   |
| Dividends on Other Investments                                             |   |   | 21,547     |   |   |   | 19,846      |   |   |   | 298,264 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                                       |   |   | 58,737,719 |   |   |   | 65,847,422  |   |   |   | 75,297,199 |   |
| Interest Expense                                                           |   |   |       |   |   |   |        |   |   |   |   |   |
| Deposits                                                                   |   |   | 17,212,312 |   |   |   | 21,642,734  |   |   |   | 32,801,362 |   |
| Federal Funds Purchased and Securities Sold Under Agreements to Repurchase |   |   | 721,044    |   |   |   | 876,484     |   |   |   | 513,961 |   |
| Borrowed Money                                                             |   |   | 3,589,847  |   |   |   | 3,761,924   |   |   |   | 4,607,347 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                                       |   |   | 21,523,203 |   |   |   | 26,281,142  |   |   |   | 37,922,670 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Net Interest Income                                                        |   |   | 37,214,516 |   |   |   | 39,566,280  |   |   |   | 37,374,529 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Provision for Loan Losses                                                  |   |   | 13,350,000 |   |   |   | 43,445,000  |   |   |   | 12,937,750 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Net Interest Income (Loss) After Provision for Loan Losses                 |   |   | 23,864,516 |   |   |   | (3,878,720  | )      |   |   | 24,436,779 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Noninterest Income                                                         |   |   |       |   |   |   |        |   |   |   |   |   |
| Service Charges on Deposits                                                |   |   | 3,597,416  |   |   |   | 4,198,019   |   |   |   | 4,699,616 |   |
| Other Service Charges, Commissions and Fees                                |   |   | 1,139,935  |   |   |   | 986,392     |   |   |   | 981,124 |   |
| Mortgage Fee Income                                                        |   |   | 313,005    |   |   |   | 447,989     |   |   |   | 609,044 |   |
| Securities Gains                                                           |   |   | 2,617,062  |   |   |   | 2,625,867   |   |   |   | 1,195,314 |   |
| Gain on Sale of SBA Loans                                                  |   |   | 1,004,585  |   |   |   | 140,122     |   |   |   | 11,633 |   |
| Other                                                                      |   |   | 1,334,846  |   |   |   | 1,145,798   |   |   |   | 1,508,459 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                                       |   |   | 10,006,849 |   |   |   | 9,544,187   |   |   |   | 9,005,190 |   |
| Noninterest Expenses                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Salaries and Employee Benefits                                             |   |   | 14,096,698 |   |   |   | 14,483,306  |   |   |   | 16,238,080 |   |
| Occupancy and Equipment                                                    |   |   | 4,422,152  |   |   |   | 4,287,006   |   |   |   | 4,190,845 |   |
| Directors’ Fees                                                      |   |   | 495,950    |   |   |   | 502,575     |   |   |   | 578,315 |   |
| Legal and Professional Fees                                                |   |   | 1,369,864  |   |   |   | 1,362,536   |   |   |   | 1,379,696 |   |
| Foreclosed Property                                                        |   |   | 4,943,530  |   |   |   | 2,270,792   |   |   |   | 382,312 |   |
| FDIC Assessment                                                            |   |   | 1,866,956  |   |   |   | 2,662,042   |   |   |   | 603,093 |   |
| Goodwill Impairment                                                        |   |   | -          |   |   |   | 2,412,338   |   |   |   | - |   |
| Advertising                                                                |   |   | 743,278    |   |   |   | 758,458     |   |   |   | 521,049 |   |
| Software                                                                   |   |   | 630,543    |   |   |   | 498,657     |   |   |   | 345,995 |   |
| Telephone                                                                  |   |   | 703,786    |   |   |   | 764,373     |   |   |   | 695,641 |   |
| Other                                                                      |   |   | 4,583,606  |   |   |   | 4,842,139   |   |   |   | 5,920,889 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                                       |   |   | 33,856,363 |   |   |   | 34,844,222  |   |   |   | 30,855,915 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Income (Loss) Before Income Taxes                                          |   |   | 15,002     |   |   |   | (29,178,755 | )      |   |   | 2,586,054 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Income Taxes (Benefits)                                                    |   |   | (459,214   | )      |   |   | (9,994,881  | )      |   |   | 557,230 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Net Income (Loss)                                                          |   |   | 474,216    |   |   |   | (19,183,874 | )      |   |   | 2,028,824 |   |
| Preferred Stock Dividends                                                  |   |   | 1,400,000  |   |   |   | 1,365,000   |   |   |   | - |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Net Income (Loss) Available to Common Stockholders                         |   | $      | (925,784   | )      |   | $      | (20,548,874 | )      |   | $ | 2,028,824 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Net Income (Loss) Per Share of Common Stock                                |   |   |       |   |   |   |        |   |   |   |   |   |
| Basic                                                                      |   | $      | (0.11      | )      |   | $      | (2.85       | )      |   | $ | 0.28 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Diluted                                                                    |   | $      | (0.11      | )      |   | $      | (2.85       | )      |   | $ | 0.28 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Cash Dividends Declared Per Share of Common Stock                          |   | $      | 0.00       |   |   | $      | 0.146       |   |   | $ | 0.39 |   |
|                                                                       |   |   |       |   |   |   |        |   |   |   |   |   |
| Weighted Average Shares Outstanding                                        |   |   | 8,149,217  |   |   |   | 7,213,430   |   |   |   | 7,199,121 |   |

----

|                                                                                                                                    |   | 2010   |       |   | 2009   |   |        | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
|                                                                                                                                    |   |   |       |   |   |   |        |   |   |
| Net Income (Loss)                                                                                                                       |   | $      | 474,216    |   |   | $      | (19,183,874 | )      |   | $ | 2,028,824 |   |
|                                                                                                                                    |   |   |       |   |   |   |        |   |   |   |   |   |
| Other Comprehensive Income, Net of Tax                                                                                                  |   |   |       |   |   |   |        |   |   |   |   |   |
| Gains on Securities Arising During the Year                                                                                             |   |   | 1,227,281  |   |   |   | 1,257,136   |   |   |   | 893,158 |   |
| Reclassification Adjustment                                                                                                             |   |   | (1,727,261 | )      |   |   | (1,733,072  | )      |   |   | (788,907 | ) |
|                                                                                                                                    |   |   |       |   |   |   |        |   |   |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of  Reclassification Adjustment and Tax Effects |   |   | (499,980   | )      |   |   | (475,936    | )      |   |   | 104,251 |   |
|                                                                                                                                    |   |   |       |   |   |   |        |   |   |   |   |   |
| Comprehensive Income (Loss)                                                                                                             |   | $      | (25,764    | )      |   | $      | (19,659,810 | )      |   | $ | 2,133,075 |   |

----

|                                                                                                                                                                                         |   | Preferred Stock |       |   | Shares Issued |   |      | Common Stock |   |   | Paid-In Capital |   |   | Retained Earnings |       |   | Restricted Stock - Unearned Compensation |   |        | Accumulated Other Comprehensive Income (Loss) |   |   | Total    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------|--------|---------------|--------|-----------|--------------|--------|--------|-----------------|--------|--------|-------------------|------------|--------|------------------------------------------|--------|-------------|-----------------------------------------------|--------|--------|----------|--------|
|                                                                                                                                                                                         |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |
| Balance, December 31, 2007                                                                                                                                                                   |   | $               | -          |   |          |   | 7,200,913 |         |   | $      | 7,200,913       |   |   | $                 | 24,420,497 |   |                                     | $      | 52,086,834  |                                          |   | $      | (237,002 | )      |   | $ | 271,876 |   |   | $ | 83,743,118 |   |
|                                                                                                                                                                                         |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of Restricted Stock                                                                                                                                                                 |   |            |       |   |          |   | 15,500    |         |   |   | 15,500          |   |   |              | 220,100    |   |                                     |   |        |                                          |   |   | (235,600 | )      |   |   |   |   |   |   | - |   |
| Forfeiture of Restricted Stock                                                                                                                                                               |   |            |       |   |          |   | (4,100    | )            |   |   | (4,100          | )      |   |              | (69,070    | )      |                                     |   |        |                                          |   |   | 73,170   |   |   |   |   |   |   |   | - |   |
| Tax Loss on Restricted Stock                                                                                                                                                                 |   |            |       |   |          |   |      |         |   |   |            |   |   |              | (35,844    | )      |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   | (35,844 | ) |
| Amortization of Unearned Compensation                                                                                                                                                        |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   | 188,439  |   |   |   |   |   |   |   | 188,439 |   |
| Change in Net Unrealized Gains (Losses) on     Securities Available for Sale, Net of      Reclassification Adjustment and Tax Effects |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   | 104,251 |   |   |   | 104,251 |   |
| Dividends on Common Stock                                                                                                                                                                    |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | (2,813,633  | )                                             |   |   |     |   |   |   |   |   |   |   | (2,813,633 | ) |
| Net Income (Loss)                                                                                                                                                                            |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | 2,028,824   |                                          |   |   |     |   |   |   |   |   |   |   | 2,028,824 |   |
|                                                                                                                                                                                         |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                                                                                                                   |   |            | -          |   |          |   | 7,212,313 |         |   |   | 7,212,313       |   |   |              | 24,535,683 |   |                                     |   | 51,302,025  |                                          |   |   | (210,993 | )      |   |   | 376,127 |   |   |   | 83,215,155 |   |
|                                                                                                                                                                                         |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of Preferred Stock                                                                                                                                                                  |   |            | 27,215,218 |   |          |   |      |         |   |   |            |   |   |              | 784,782    |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   | 28,000,000 |   |
| Issuance of Restricted Stock                                                                                                                                                                 |   |            |       |   |          |   | 18,850    |         |   |   | 18,850          |   |   |              | 132,421    |   |                                     |   |        |                                          |   |   | (151,271 | )      |   |   |   |   |   |   | - |   |
| Forfeiture of Restricted Stock                                                                                                                                                               |   |            |       |   |          |   | (2,000    | )            |   |   | (2,000          | )      |   |              | (14,050    | )      |                                     |   |        |                                          |   |   | 16,050   |   |   |   |   |   |   |   | - |   |
| Tax Loss on Restricted Stock                                                                                                                                                                 |   |            |       |   |          |   |      |         |   |   |            |   |   |              | (45,923    | )      |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   | (45,923 | ) |
| Amortization of Unearned Compensation                                                                                                                                                        |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   | 187,666  |   |   |   |   |   |   |   | 187,666 |   |
| Change in Net Unrealized Gains (Losses) on     Securities Available for Sale, Net of      Reclassification Adjustment and Tax Effects |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   | (475,936 | ) |   |   | (475,936 | ) |
| Accretion of Fair Value of Warrant                                                                                                                                                           |   |            | 141,746    |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | (141,746    | )                                             |   |   |     |   |   |   |   |   |   |   | - |   |
| Dividends on Preferred Shares                                                                                                                                                                |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | (1,365,000  | )                                             |   |   |     |   |   |   |   |   |   |   | (1,365,000 | ) |
| Dividends on Common Stock                                                                                                                                                                    |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | (1,057,464  | )                                             |   |   |     |   |   |   |   |   |   |   | (1,057,464 | ) |
| Net Income (Loss)                                                                                                                                                                            |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | (19,183,874 | )                                             |   |   |     |   |   |   |   |   |   |   | (19,183,874 | ) |
|                                                                                                                                                                                         |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                                                                                                                                   |   |            | 27,356,964 |   |          |   | 7,229,163 |         |   |   | 7,229,163       |   |   |              | 25,392,913 |   |                                     |   | 29,553,941  |                                          |   |   | (158,548 | )      |   |   | (99,809 | ) |   |   | 89,274,624 |   |
|                                                                                                                                                                                         |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                                                                                                                                                     |   |            |       |   |          |   | 1,216,545 |         |   |   | 1,216,545       |   |   |              | 3,861,710  |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   | 5,078,255 |   |
| Forfeiture of Restricted Stock                                                                                                                                                               |   |            |       |   |          |   | (2,750    | )            |   |   | (2,750          | )      |   |              | (27,570    | )      |                                     |   |        |                                          |   |   | 30,320   |   |   |   |   |   |   |   | - |   |
| Tax Loss on Restricted Stock                                                                                                                                                                 |   |            |       |   |          |   |      |         |   |   |            |   |   |              | (55,966    | )      |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   | (55,966 | ) |
| Amortization of Unearned Compensation                                                                                                                                                        |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   | 87,434   |   |   |   |   |   |   |   | 87,434 |   |
| Change in Net Unrealized Gains (Losses) on     Securities Available for Sale, Net of      Reclassification Adjustment and Tax Effects |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   | (499,980 | ) |   |   | (499,980 | ) |
| Accretion of Fair Value of Warrant                                                                                                                                                           |   |            | 148,946    |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | (148,946    | )                                             |   |   |     |   |   |   |   |   |   |   | - |   |
| Dividends on Preferred Shares                                                                                                                                                                |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | (1,400,000  | )                                             |   |   |     |   |   |   |   |   |   |   | (1,400,000 | ) |
| Net Income (Loss)                                                                                                                                                                            |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   | 474,216     |                                          |   |   |     |   |   |   |   |   |   |   | 474,216 |   |
|                                                                                                                                                                                         |   |            |       |   |          |   |      |         |   |   |            |   |   |              |       |   |                                     |   |        |                                          |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                                                                                                                                                   |   | $               | 27,505,910 |   |          |   | 8,442,958 |         |   | $      | 8,442,958       |   |   | $                 | 29,171,087 |   |                                     | $      | 28,479,211  |                                          |   | $      | (40,794  | )      |   | $ | (599,789 | ) |   | $ | 92,958,583 |   |

----

|                                                                                     |   | 2010   |         |   | 2009   |   |         | 2008   |   |
|------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|
| Cash Flows from Operating Activities                                                     |   |   |         |   |   |   |         |   |   |
| Net Income (Loss)                                                                        |   | $      | 474,216      |   |   | $      | (19,183,874  | )      |   | $ | 2,028,824 |   |
| Adjustments to Reconcile Net Income (Loss) to Net                                        |   |   |         |   |   |   |         |   |   |   |   |   |
| Cash Provided from Operating Activities                                                  |   |   |         |   |   |   |         |   |   |   |   |   |
| Depreciation                                                                             |   |   | 2,140,735    |   |   |   | 2,092,845    |   |   |   | 2,028,158 |   |
| Amortization and Accretion                                                               |   |   | 4,043,795    |   |   |   | 3,807,011    |   |   |   | 777,051 |   |
| Goodwill Impairment                                                                      |   |   | -            |   |   |   | 2,412,338    |   |   |   | - |   |
| Provision for Loan Losses                                                                |   |   | 13,350,000   |   |   |   | 43,445,000   |   |   |   | 12,937,750 |   |
| Deferred Income Taxes                                                                    |   |   | 639,607      |   |   |   | (5,869,055   | )      |   |   | (250,215 | ) |
| Securities Gains                                                                         |   |   | (2,617,062   | )      |   |   | (2,625,867   | )      |   |   | (1,195,314 | ) |
| (Gain) Loss on Sale of Equipment                                                         |   |   | 28,146       |   |   |   | (82,503      | )      |   |   | (857 | ) |
| Loss on Sale of Other Real Estate and Repossessions                                      |   |   | 1,827,704    |   |   |   | 163,642      |   |   |   | 59,623 |   |
| Unrealized Loss on Other Real Estate                                                     |   |   | 1,293,174    |   |   |   | 467,408      |   |   |   | - |   |
| Increase in Cash Surrender Value of Life Insurance                                       |   |   | (56,024      | )      |   |   | (184,905     | )      |   |   | (235,305 | ) |
| Change In                                                                                |   |   |         |   |   |   |         |   |   |   |   |   |
| Interest Receivable                                                                      |   |   | 1,325,068    |   |   |   | 699,018      |   |   |   | 2,875,146 |   |
| Prepaid Expenses                                                                         |   |   | 2,006,032    |   |   |   | (5,785,826   | )      |   |   | 18,698 |   |
| Interest Payable                                                                         |   |   | (452,764     | )      |   |   | (1,256,460   | )      |   |   | (816,819 | ) |
| Accrued Expenses and Accounts Payable                                                    |   |   | (148,591     | )      |   |   | 315,879      |   |   |   | (815,214 | ) |
| Other                                                                                    |   |   | 3,500,575    |   |   |   | (3,360,614   | )      |   |   | (121,645 | ) |
|                                                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
|                                                                                     |   |   | 27,354,611   |   |   |   | 15,054,037   |   |   |   | 17,289,881 |   |
| Cash Flows from Investing Activities                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
| Interest-Bearing Deposits in Other Banks                                                 |   |   | (44,247,933  | )      |   |   | (6,331,814   | )      |   |   | 1,319,703 |   |
| Purchase of Investment Securities Available for Sale                                     |   |   | (380,490,982 | )      |   |   | (488,257,181 | )      |   |   | (157,485,718 | ) |
| Proceeds from Sale of Investment Securities Available for Sale                           |   |   | 286,387,727  |   |   |   | 368,575,701  |   |   |   | 65,298,695 |   |
| Proceeds from Maturities, Calls and Paydowns of Investment Securities Available for Sale |   |   | 55,648,274   |   |   |   | 58,599,391   |   |   |   | 52,666,161 |   |
| Held to Maturity                                                                         |   |   | 14,001       |   |   |   | 12,688       |   |   |   | 13,573 |   |
| Proceeds from Sale of Premises and Equipment                                             |   |   | -            |   |   |   | 125,512      |   |   |   | 29,888 |   |
| Net Loans to Customers                                                                   |   |   | 88,105,734   |   |   |   | (18,973,081  | )      |   |   | (42,435,526 | ) |
| Purchase of Premises and Equipment                                                       |   |   | (490,256     | )      |   |   | (1,290,324   | )      |   |   | (3,920,230 | ) |
| Proceeds from Sale of Other Real Estate and Repossessions                                |   |   | 9,866,063    |   |   |   | 12,158,095   |   |   |   | 3,392,500 |   |
| Federal Home Loan Bank Stock                                                             |   |   | 281,900      |   |   |   | (73,000      | )      |   |   | (739,700 | ) |
|                                                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
|                                                                                     |   |   | 15,074,528   |   |   |   | (75,454,013  | )      |   |   | (81,860,654 | ) |
| Cash Flows from Financing Activities                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
| Interest-Bearing Customer Deposits                                                       |   |   | (17,183,061  | )      |   |   | 43,853,063   |   |   |   | (2,995,624 | ) |
| Noninterest-Bearing Customer Deposits                                                    |   |   | 18,720,584   |   |   |   | 6,741,949    |   |   |   | (8,614,892 | ) |
| Proceeds from Other Borrowed Money                                                       |   |   | 23,076,010   |   |   |   | 19,000,000   |   |   |   | 122,400,000 |   |
| Principal Payments on Other Borrowed Money                                               |   |   | (39,000,000  | )      |   |   | (19,000,000  | )      |   |   | (65,000,000 | ) |
| Dividends Paid on Preferred Stock                                                        |   |   | (1,400,000   | )      |   |   | (1,190,000   | )      |   |   | - |   |
| Dividends Paid on Common Stock                                                           |   |   | -            |   |   |   | (1,760,665   | )      |   |   | (2,794,520 | ) |
| Issuance of Common Stock                                                                 |   |   | 5,078,255    |   |   |   | -            |   |   |   | - |   |
| Federal Funds Purchased and Securities Sold Under Agreements to Repurchase               |   |   | (20,000,000  | )      |   |   | (2,274,000   | )      |   |   | 928,000 |   |
| Proceeds Allocated to Issuance of Preferred Stock                                        |   |   | -            |   |   |   | 27,215,218   |   |   |   | - |   |
| Proceeds Allocated to Warrants Issued                                                    |   |   | -            |   |   |   | 784,782      |   |   |   | - |   |
|                                                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
|                                                                                     |   |   | (30,708,212  | )      |   |   | 73,370,347   |   |   |   | 43,922,964 |   |
|                                                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                                     |   |   | 11,720,927   |   |   |   | 12,970,371   |   |   |   | (20,647,809 | ) |
|                                                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning                                                     |   |   | 42,428,742   |   |   |   | 29,458,371   |   |   |   | 50,106,180 |   |
|                                                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
| Cash and Cash Equivalents, Ending                                                        |   | $      | 54,149,669   |   |   | $      | 42,428,742   |   |   | $ | 29,458,371 |   |

----

----

----

----

| Description             |   | Life in Years |   | Method                        |
|-------------------------|--------|---------------|--------|-------------------------------|
|                    |   |          |   |                          |
| Banking Premises        |   | 15-40         |   | Straight-Line and Accelerated |
| Furniture and Equipment |   | 5-10          |   | Straight-Line and Accelerated |

----

----

----

----

----

|                                          |   | 2010   |       |   | 2009   |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                          |   |   |       |   |   |   |
| Cash on Hand and Cash Items                   |   | $      | 8,897,618  |   |   | $      | 8,773,237 |   |
| Noninterest-Bearing Deposits with Other Banks |   |   | 7,715,569  |   |   |   | 17,222,249 |   |
|                                          |   |   |       |   |   |   |   |   |
|                                          |   | $      | 16,613,187 |   |   | $      | 25,995,486 |   |

----

|                                     |   | Amortized Cost |               |   | Gross Unrealized Gains |   |      | Gross Unrealized Losses |   |   | Fair Value    |   |
|------------------------------------------|--------|----------------|--------------------|--------|------------------------|--------|-----------|-------------------------|--------|--------|---------------|--------|
| Securities Available for Sale            |   |           |               |   |                   |   |      |                    |   |   |          |   |
| U.S. Government Agencies Mortgage-Backed |   | $              | 299,018,595        |   |                   | $      | 1,763,198 |                    |   | $      | (2,319,337    | )      |   | $ | 298,462,456 |   |
| State, County and Municipal              |   |           | 3,248,533          |   |                   |   | 34,391    |                    |   |   | (26,691       | )      |   |   | 3,256,233 |   |
| Corporate Obligations                    |   |           | 2,000,000          |   |                   |   | 101,920   |                    |   |   | (115,430      | )      |   |   | 1,986,490 |   |
| Asset-Backed Securities                  |   |           | 479,249            |   |                   |   | -         |                    |   |   | (346,822      | )      |   |   | 132,427 |   |
|                                     |   |           |               |   |                   |   |      |                    |   |   |          |   |   |   |   |   |
|                                     |   | $              | 304,746,377        |   |                   | $      | 1,899,509 |                    |   | $      | (2,808,280    | )      |   | $ | 303,837,606 |   |
| Securities Held to Maturity              |   |           |               |   |                   |   |      |                    |   |   |          |   |   |   |   |   |
| State, County and Municipal              |   | $              |   48,412 |   |                   | $      | 4,529     |                    |   | $      |   - |   |   | $ | 52,941 |   |

|                                   |   | Securities         |        |
|----------------------------------------|--------|--------------------|-------------|
|                                   |   | Available for Sale |        |   | Held to Maturity |   |
|                                   |   | Amortized Cost     |        |   | Fair Value |   |   | Amortized Cost |   |   | Fair Value |   |
|                                   |   |               |        |   |   |   |   |   |   |   |   |   |
| Due After One Year Through Five Years  |   | $                  | 500,087     |   |   | $ | 518,929 |   |   | $ | 48,412 |   |   | $ | 52,941 |   |
| Due After Five Years Through Ten Years |   |               | 2,740,136   |   |   |   | 2,844,431 |   |   |   | - |   |   |   | - |   |
| Due After Ten Years                    |   |               | 2,487,559   |   |   |   | 2,011,790 |   |   |   | - |   |   |   | - |   |
|                                   |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |               | 5,727,782   |   |   |   | 5,375,150 |   |   |   | 48,412 |   |   |   | 52,941 |   |
| Mortgage-Backed Securities             |   |               | 299,018,595 |   |   |   | 298,462,456 |   |   |   | - |   |   |   | - |   |
|                                   |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | $                  | 304,746,377 |   |   | $ | 303,837,606 |   |   | $ | 48,412 |   |   | $ | 52,941 |   |

|                                     |   | Amortized Cost |        |   | Gross Unrealized Gains |   |      | Gross Unrealized Losses |   |   | Fair Value |   |
|------------------------------------------|--------|----------------|-------------|--------|------------------------|--------|-----------|-------------------------|--------|--------|------------|--------|
| Securities Available for Sale            |   |           |        |   |                   |   |      |                    |   |   |       |   |
| U.S. Government Agencies Mortgage-Backed |   | $              | 258,432,952 |   |                   | $      | 1,535,588 |                    |   | $      | (1,059,532 | )      |   | $ | 258,909,008 |   |
| State, County and Municipal              |   |           | 4,027,322   |   |                   |   | 74,749    |                    |   |   | (34,843    | )      |   |   | 4,067,228 |   |
| Corporate Obligations                    |   |           | 4,458,376   |   |                   |   | 64,810    |                    |   |   | (385,176   | )      |   |   | 4,138,010 |   |
| Asset-Backed Securities                  |   |           | 479,249     |   |                   |   | -         |                    |   |   | (346,822   | )      |   |   | 132,427 |   |
|                                     |   |           |        |   |                   |   |      |                    |   |   |       |   |   |   |   |   |
|                                     |   | $              | 267,397,899 |   |                   | $      | 1,675,147 |                    |   | $      | (1,826,373 | )      |   | $ | 267,246,673 |   |
| Securities Held to Maturity              |   |           |        |   |                   |   |      |                    |   |   |       |   |   |   |   |   |
| State, County and Municipal              |   | $              | 53,906      |   |                   | $      | 3,093     |                    |   | $      | -          |   |   | $ | 56,999 |   |

----

|                                     |   | Less Than 12 Months |        |   | 12 Months or Greater    |   |       | Total           |   |
|------------------------------------------|--------|---------------------|-------------|--------|-------------------------|--------|------------|-----------------|--------|
|                                     |   | Fair Value          |        |   | Gross Unrealized Losses |   |       | Fair Value |   |   | Gross Unrealized Losses |   |   | Fair Value |   |   | Gross Unrealized Losses |   |
| December 31, 2010                        |   |                |        |   |                    |   |       |            |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                   | 152,286,738 |   |                    | $      | (2,319,337 | )               |   | $ | - |   |   | $ | - |   |   | $ | 152,286,738 |   |   | $ | (2,319,337 | ) |
| State, County and Municipal              |   |                | 1,776,763   |   |                    |   | (26,691    | )               |   |   | - |   |   |   | - |   |   |   | 1,776,763 |   |   |   | (26,691 | ) |
| Corporate Obligations                    |   |                | -           |   |                    |   | -          |            |   |   | 884,570 |   |   |   | (115,430 | ) |   |   | 884,570 |   |   |   | (115,430 | ) |
| Asset-Backed Securities                  |   |                | -           |   |                    |   | -          |            |   |   | 132,427 |   |   |   | (346,822 | ) |   |   | 132,427 |   |   |   | (346,822 | ) |
|                                     |   |                |        |   |                    |   |       |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                   | 154,063,501 |   |                    | $      | (2,346,028 | )               |   | $ | 1,016,997 |   |   | $ | (462,252 | ) |   | $ | 155,080,498 |   |   | $ | (2,808,280 | ) |
|                                     |   |                |        |   |                    |   |       |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                        |   |                |        |   |                    |   |       |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                   | 114,222,812 |   |                    | $      | (1,056,502 | )               |   | $ | 419,159 |   |   | $ | (3,030 | ) |   | $ | 114,641,971 |   |   | $ | (1,059,532 | ) |
| State, County and Municipal              |   |                | -           |   |                    |   | -          |            |   |   | 1,424,697 |   |   |   | (34,843 | ) |   |   | 1,424,697 |   |   |   | (34,843 | ) |
| Corporate Obligations                    |   |                | -           |   |                    |   | -          |            |   |   | 3,073,200 |   |   |   | (385,176 | ) |   |   | 3,073,200 |   |   |   | (385,176 | ) |
| Asset-Backed Securities                  |   |                | -           |   |                    |   | -          |            |   |   | 132,427 |   |   |   | (346,822 | ) |   |   | 132,427 |   |   |   | (346,822 | ) |
|                                     |   |                |        |   |                    |   |       |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                   | 114,222,812 |   |                    | $      | (1,056,502 | )               |   | $ | 5,049,483 |   |   | $ | (769,871 | ) |   | $ | 119,272,295 |   |   | $ | (1,826,373 | ) |

----

|                      |   | 2010   |        |   | 2009   |   |
|---------------------------|--------|--------|-------------|--------|--------|--------|
|                      |   |   |        |   |   |   |
| Commercial and Industrial |   |   |        |   |   |   |
| Commercial                |   | $      | 53,220,341  |   |   | $      | 64,485,345 |   |
| Industrial                |   |   | 10,551,791  |   |   |   | 16,499,065 |   |
|                      |   |   |        |   |   |   |   |   |
| Real Estate               |   |   |        |   |   |   |   |   |
| Commercial Construction   |   |   | 72,309,231  |   |   |   | 103,676,394 |   |
| Residential Construction  |   |   | 4,373,011   |   |   |   | 9,440,662 |   |
| Commercial                |   |   | 362,878,565 |   |   |   | 395,795,782 |   |
| Residential               |   |   | 207,471,813 |   |   |   | 231,197,658 |   |
| Farmland                  |   |   | 52,778,389  |   |   |   | 54,965,260 |   |
|                      |   |   |        |   |   |   |   |   |
| Consumer and Other        |   |   |        |   |   |   |   |   |
| Consumer                  |   |   | 33,563,863  |   |   |   | 38,382,831 |   |
| Other                     |   |   | 16,103,669  |   |   |   | 16,948,629 |   |
|                      |   |   |        |   |   |   |   |   |
| Total Loans               |   | $      | 813,250,673 |   |   | $      | 931,391,626 |   |

|   | · | Grades 1 and 2 - Borrowers with these assigned grades range in risk from virtual absence of risk to minimal risk.  Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds.  Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans.  Loans in this category fall into the “pass” classification. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Grades 3 and 4 - Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk.  The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Grade 5 - This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Grade 6 - This grade includes “substandard” loans in accordance with regulatory guidelines.  This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms.  Loans considered to be impaired are assigned this grade, and these loans often have assigned loss allocations as part of the allowance for loan and lease losses.  Generally, loans on which interest accrual has been stopped would be included in this grade. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Grades 7 and 8 - These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively.  In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades.  Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 6. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | Pass   |        |   | Special Mention |   |       | Substandard |   |   | Total Loans |   |
|---------------------------|--------|--------|-------------|--------|-----------------|--------|------------|-------------|--------|--------|-------------|--------|
|                      |   |   |        |   |            |   |       |        |   |   |        |   |
| Commercial and Industrial |   |   |        |   |            |   |       |        |   |   |        |   |
| Commercial                |   | $      | 48,731,982  |   |            | $      | 2,498,305  |        |   | $      | 1,990,054   |   |   | $ | 53,220,341 |   |
| Industrial                |   |   | 10,059,081  |   |            |   | 169,381    |        |   |   | 323,329     |   |   |   | 10,551,791 |   |
|                      |   |   |        |   |            |   |       |        |   |   |        |   |   |   |   |   |
| Real Estate               |   |   |        |   |            |   |       |        |   |   |        |   |   |   |   |   |
| Commercial Construction   |   |   | 33,522,709  |   |            |   | 10,064,271 |        |   |   | 28,722,251  |   |   |   | 72,309,231 |   |
| Residential Construction  |   |   | 3,974,130   |   |            |   | 204,000    |        |   |   | 194,881     |   |   |   | 4,373,011 |   |
| Commercial                |   |   | 294,186,347 |   |            |   | 11,847,051 |        |   |   | 56,845,167  |   |   |   | 362,878,565 |   |
| Residential               |   |   | 183,518,173 |   |            |   | 9,195,410  |        |   |   | 14,758,230  |   |   |   | 207,471,813 |   |
| Farmland                  |   |   | 49,499,619  |   |            |   | 1,838,814  |        |   |   | 1,439,956   |   |   |   | 52,778,389 |   |
|                      |   |   |        |   |            |   |       |        |   |   |        |   |   |   |   |   |
| Consumer and Other        |   |   |        |   |            |   |       |        |   |   |        |   |   |   |   |   |
| Consumer                  |   |   | 32,046,108  |   |            |   | 726,933    |        |   |   | 790,822     |   |   |   | 33,563,863 |   |
| Other                     |   |   | 14,553,167  |   |            |   | 1,185,260  |        |   |   | 365,242     |   |   |   | 16,103,669 |   |
|                      |   |   |        |   |            |   |       |        |   |   |        |   |   |   |   |   |
| Total Loans               |   | $      | 670,091,316 |   |            | $      | 37,729,425 |        |   | $      | 105,429,932 |   |   | $ | 813,250,673 |   |

----

|                      |   | Accruing Loans      |       |   |                     |   |   |                          |   |   |             |   |
|---------------------------|--------|---------------------|------------|--------|--------------------------|--------|--------|-------------------------------|--------|--------|------------------|--------|
|                      |   | 30-89 Days Past Due |       |   | 90 Days or More Past Due |   |   | Total Accruing Loans Past Due |   |   | Nonaccrual Loans |   |   | Current Loans |   |   | Total Loans |   |
|                      |   |                |       |   |                     |   |   |                          |   |   |             |   |   |   |   |   |   |   |
| Commercial and Industrial |   |                |       |   |                     |   |   |                          |   |   |             |   |   |   |   |   |   |   |
| Commercial                |   | $                   | 382,728    |   |                     | $      | -      |                          |   | $      | 382,728          |   |   | $ | 393,823 |   |   | $ | 52,443,790 |   |   | $ | 53,220,341 |   |
| Industrial                |   |                | 100,810    |   |                     |   | -      |                          |   |   | 100,810          |   |   |   | 175,062 |   |   |   | 10,275,919 |   |   |   | 10,551,791 |   |
|                      |   |                |       |   |                     |   |   |                          |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate               |   |                |       |   |                     |   |   |                          |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Construction   |   |                | 1,514,127  |   |                     |   | -      |                          |   |   | 1,514,127        |   |   |   | 10,181,795 |   |   |   | 60,613,309 |   |   |   | 72,309,231 |   |
| Residential Construction  |   |                | 194,881    |   |                     |   | -      |                          |   |   | 194,881          |   |   |   | - |   |   |   | 4,178,130 |   |   |   | 4,373,011 |   |
| Commercial                |   |                | 11,790,383 |   |                     |   | -      |                          |   |   | 11,790,383       |   |   |   | 13,567,530 |   |   |   | 337,520,652 |   |   |   | 362,878,565 |   |
| Residential               |   |                | 4,268,098  |   |                     |   | 15,876 |                          |   |   | 4,283,974        |   |   |   | 3,057,049 |   |   |   | 200,130,790 |   |   |   | 207,471,813 |   |
| Farmland                  |   |                | 566,868    |   |                     |   | -      |                          |   |   | 566,868          |   |   |   | 1,157,528 |   |   |   | 51,053,993 |   |   |   | 52,778,389 |   |
|                      |   |                |       |   |                     |   |   |                          |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer and Other        |   |                |       |   |                     |   |   |                          |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                  |   |                | 702,795    |   |                     |   | 3,312  |                          |   |   | 706,107          |   |   |   | 290,115 |   |   |   | 32,567,641 |   |   |   | 33,563,863 |   |
| Other                     |   |                | 218,887    |   |                     |   | -      |                          |   |   | 218,887          |   |   |   | 79,072 |   |   |   | 15,805,710 |   |   |   | 16,103,669 |   |
|                      |   |                |       |   |                     |   |   |                          |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Loans               |   | $                   | 19,739,577 |   |                     | $      | 19,188 |                          |   | $      | 19,758,765       |   |   | $ | 28,901,974 |   |   | $ | 764,589,934 |   |   | $ | 813,250,673 |   |

----

|                               |   | Impaired Balance |       |   | Related Allowance |   |    | Average Recorded Investment |   |   | Interest Income Recognized |   |   | Interest Income Collected |    |
|------------------------------------|--------|------------------|------------|--------|-------------------|--------|---------|-----------------------------|--------|--------|----------------------------|--------|--------|---------------------------|---------|
|                               |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |
| With No Related Allowance Recorded |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |
| Commercial                         |   | $                | 258,676    |   |              | $      | -       |                        |   | $      | 308,508                    |   |   | $                         | (987    | ) |   | $ | 5,465 |   |
| Agricultural                       |   |             | 175,062    |   |              |   | -       |                        |   |   | 220,716                    |   |   |                      | 689     |   |   |   | 689 |   |
| Commercial Construction            |   |             | 10,181,795 |   |              |   | -       |                        |   |   | 11,760,840                 |   |   |                      | 7,320   |   |   |   | 31,963 |   |
| Residential Construction           |   |             | -          |   |              |   | -       |                        |   |   | 8,248                      |   |   |                      | -       |   |   |   | - |   |
| Commercial Real Estate             |   |             | 4,270,905  |   |              |   | -       |                        |   |   | 9,041,753                  |   |   |                      | 80,585  |   |   |   | 85,448 |   |
| Residential Real Estate            |   |             | 3,057,049  |   |              |   | -       |                        |   |   | 3,931,449                  |   |   |                      | 41,420  |   |   |   | 53,813 |   |
| Farmland                           |   |             | 1,157,528  |   |              |   | -       |                        |   |   | 645,619                    |   |   |                      | (6,571  | ) |   |   | 10,969 |   |
| Consumer                           |   |             | 290,115    |   |              |   | -       |                        |   |   | 296,301                    |   |   |                      | 17,166  |   |   |   | 19,342 |   |
| Other                              |   |             | 79,072     |   |              |   | -       |                        |   |   | 129,249                    |   |   |                      | 4,550   |   |   |   | 7,760 |   |
|                               |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |   |   |   |   |   |
|                               |   |             | 19,470,202 |   |              |   | -       |                        |   | $      | 26,342,683                 |   |   |                      | 144,172 |   |   |   | 215,449 |   |
|                               |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |   |   |   |   |   |
| With An Allowance Recorded         |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |   |   |   |   |   |
| Commercial                         |   |             | 135,146    |   |              |   | 116,159 |                        |   |   | 33,787                     |   |   |                      | (1,125  | ) |   |   | 3,316 |   |
| Commercial Real Estate             |   |             | 9,296,626  |   |              |   | 539,671 |                        |   |   | 2,324,156                  |   |   |                      | 341,937 |   |   |   | 475,999 |   |
|                               |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |   |   |   |   |   |
|                               |   |             | 9,431,772  |   |              |   | 655,830 |                        |   |   | 2,357,943                  |   |   |                      | 340,812 |   |   |   | 479,315 |   |
|                               |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |   |   |   |   |   |
| Total                              |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |   |   |   |   |   |
| Commercial                         |   |             | 393,822    |   |              |   | 116,159 |                        |   |   | 342,295                    |   |   |                      | (2,112  | ) |   |   | 8,781 |   |
| Agricultural                       |   |             | 175,062    |   |              |   | -       |                        |   |   | 220,716                    |   |   |                      | 689     |   |   |   | 689 |   |
| Commercial Construction            |   |             | 10,181,795 |   |              |   | -       |                        |   |   | 11,760,840                 |   |   |                      | 7,320   |   |   |   | 31,963 |   |
| Residential Construction           |   |             | -          |   |              |   | -       |                        |   |   | 8,248                      |   |   |                      | -       |   |   |   | - |   |
| Commercial Real Estate             |   |             | 13,567,531 |   |              |   | 539,671 |                        |   |   | 11,365,909                 |   |   |                      | 422,522 |   |   |   | 561,447 |   |
| Residential Real Estate            |   |             | 3,057,049  |   |              |   | -       |                        |   |   | 3,931,449                  |   |   |                      | 41,420  |   |   |   | 53,813 |   |
| Farmland                           |   |             | 1,157,528  |   |              |   | -       |                        |   |   | 645,619                    |   |   |                      | (6,571  | ) |   |   | 10,969 |   |
| Consumer                           |   |             | 290,115    |   |              |   | -       |                        |   |   | 296,301                    |   |   |                      | 17,166  |   |   |   | 19,342 |   |
| Other                              |   |             | 79,072     |   |              |   | -       |                        |   |   | 129,249                    |   |   |                      | 4,551   |   |   |   | 7,760 |   |
|                               |   |             |       |   |              |   |    |                        |   |   |                       |   |   |                      |    |   |   |   |   |   |
|                               |   | $                | 28,901,974 |   |              | $      | 655,830 |                        |   | $      | 28,700,626                 |   |   | $                         | 484,985 |   |   | $ | 694,764 |   |

----

| Total Investment in Impaired Loans      |   | $      | 33,535,160 |   |
|-----------------------------------------|--------|--------|------------|--------|
|                                    |   |   |       |   |
| Less Allowance for Impaired Loan Losses |   |   | (17,000    | )      |
|                                    |   |   |       |   |
| Net Investment, December 31             |   | $      | 33,518,160 |   |
|                                    |   |   |       |   |
| Average Investment During the Year      |   | $      | 36,394,731 |   |
|                                    |   |   |       |   |
| Income Recognized During the Year       |   | $      | 684,940    |   |
|                                    |   |   |       |   |
| Income Collected During the Year        |   | $      | 913,255    |   |

|                      |   | Beginning Balance |       |   | Charge-Offs |   |        | Recoveries |   |   | Provision |   |   | Ending Balance |       |
|---------------------------|--------|-------------------|------------|--------|-------------|--------|-------------|------------|--------|--------|-----------|--------|--------|----------------|------------|
|                      |   |              |       |   |        |   |        |       |   |   |      |   |   |           |       |
| Commercial and Industrial |   |              |       |   |        |   |        |       |   |   |      |   |   |           |       |
| Commercial                |   | $                 | 3,930,760  |   |        | $      | (469,214    | )          |   | $      | 80,181    |   |   | $              | 873,090    |   |   | $ | 4,414,817 |   |
| Industrial                |   |              | 779,337    |   |        |   | (255,627    | )          |   |   | 1,377     |   |   |           | 173,550    |   |   |   | 698,637 |   |
|                      |   |              |       |   |        |   |        |       |   |   |      |   |   |           |       |   |   |   |   |   |
| Real Estate               |   |              |       |   |        |   |        |       |   |   |      |   |   |           |       |   |   |   |   |   |
| Commercial Construction   |   |              | 7,402,484  |   |        |   | (4,648,124  | )          |   |   | 184,868   |   |   |           | 1,186,815  |   |   |   | 4,126,043 |   |
| Residential Construction  |   |              | 447,676    |   |        |   | -           |       |   |   | -         |   |   |           | 72,090     |   |   |   | 519,766 |   |
| Commercial                |   |              | 8,790,443  |   |        |   | (7,459,619  | )          |   |   | 141,931   |   |   |           | 6,556,770  |   |   |   | 8,029,525 |   |
| Residential               |   |              | 5,025,839  |   |        |   | (2,929,668  | )          |   |   | 439,940   |   |   |           | 3,405,585  |   |   |   | 5,941,696 |   |
| Farmland                  |   |              | 942,019    |   |        |   | (271,750    | )          |   |   | 7,639     |   |   |           | 266,415    |   |   |   | 944,323 |   |
|                      |   |              |       |   |        |   |        |       |   |   |      |   |   |           |       |   |   |   |   |   |
| Consumer and Other        |   |              |       |   |        |   |        |       |   |   |      |   |   |           |       |   |   |   |   |   |
| Consumer                  |   |              | 2,826,058  |   |        |   | (548,834    | )          |   |   | 245,641   |   |   |           | 551,355    |   |   |   | 3,074,220 |   |
| Other                     |   |              | 1,256,025  |   |        |   | (1,039,618  | )          |   |   | 50,313    |   |   |           | 264,330    |   |   |   | 531,050 |   |
|                      |   |              |       |   |        |   |        |       |   |   |      |   |   |           |       |   |   |   |   |   |
|                      |   | $                 | 31,400,641 |   |        | $      | (17,622,454 | )          |   | $      | 1,151,890 |   |   | $              | 13,350,000 |   |   | $ | 28,280,077 |   |

----

|                                  |   | Ending Balance                        |        |
|---------------------------------------|--------|---------------------------------------|-------------|
|                                  |   | Individually Evaluated for Impairment |        |   | Collectively Evaluated for Impairment |   |   | Total |   |
|                                  |   |                                  |        |   |   |   |   |   |   |
| Commercial and Industrial             |   |                                  |        |   |   |   |   |   |   |
| Commercial                            |   | $                                     | 336,011     |   |   | $ | 4,078,806 |   |   | $ |  4,414,817 |   |
| Industrial                            |   |                                  | -           |   |   |   | 698,637 |   |   |   | 698,637 |   |
|                                  |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Real Estate                           |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Commercial Construction               |   |                                  | 3,501,117   |   |   |   | 624,926 |   |   |   | 4,126,043 |   |
| Residential Construction              |   |                                  | -           |   |   |   | 519,766 |   |   |   | 519,766 |   |
| Commercial                            |   |                                  | 7,539,533   |   |   |   | 489,992 |   |   |   | 8,029,525 |   |
| Residential                           |   |                                  | 1,561,952   |   |   |   | 4,379,744 |   |   |   | 5,941,696 |   |
| Farmland                              |   |                                  | -           |   |   |   | 944,323 |   |   |   | 944,323 |   |
|                                  |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Consumer and Other                    |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Consumer                              |   |                                  | 3,033       |   |   |   | 3,071,187 |   |   |   | 3,074,220 |   |
| Other                                 |   |                                  | -           |   |   |   | 531,050 |   |   |   | 531,050 |   |
|                                  |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Total End of Period Allowance Balance |   | $                                     | 12,941,646  |   |   | $ | 15,338,431 |   |   | $ | 28,280,077 |   |
|                                  |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Total End of Period Loan Balance      |   | $                                     | 104,807,855 |   |   | $ | 708,442,818 |   |   | $ | 813,250,673 |   |

|                                    |   | 2009   |        |   | 2008   |   |
|-----------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                    |   |   |        |   |   |   |
| Balance, Beginning                      |   | $      | 17,015,883  |   |   | $      | 15,512,940 |   |
|                                    |   |   |        |   |   |   |   |   |
| Provision Charged to Operating Expenses |   |   | 43,445,000  |   |   |   | 12,937,750 |   |
| Loans Charged Off                       |   |   | (29,493,324 | )      |   |   | (11,966,439 | ) |
| Loan Recoveries                         |   |   | 433,082     |   |   |   | 531,632 |   |
|                                    |   |   |        |   |   |   |   |   |
| Balance, Ending                         |   | $      | 31,400,641  |   |   | $      | 17,015,883 |   |

----

|                              |   | 2010   |        |   | 2009   |   |
|-----------------------------------|--------|--------|-------------|--------|--------|--------|
|                              |   |   |        |   |   |   |
| Land                              |   | $      | 7,787,667   |   |   | $      | 7,805,167 |   |
| Building                          |   |   | 23,790,525  |   |   |   | 23,642,043 |   |
| Furniture, Fixtures and Equipment |   |   | 13,737,177  |   |   |   | 14,365,687 |   |
| Leasehold Improvements            |   |   | 993,086     |   |   |   | 993,086 |   |
| Construction in Progress          |   |   | -           |   |   |   | 6,775 |   |
|                              |   |   |        |   |   |   |   |   |
|                              |   |   | 46,308,455  |   |   |   | 46,812,758 |   |
| Accumulated Depreciation          |   |   | (19,160,730 | )      |   |   | (17,986,408 | ) |
|                              |   |   |        |   |   |   |   |   |
|                              |   | $      | 27,147,725  |   |   | $      | 28,826,350 |   |

| Year Ending December 31 |   | Amount |    |
|-------------------------|--------|--------|---------|
|                    |   |   |    |
| 2011                    |   | $      | 129,138 |   |
| 2012                    |   |   | 122,813 |   |
| 2013                    |   |   | 88,658  |   |
| 2014                    |   |   | 10,139  |   |
|                    |   |   |    |   |
|                    |   | $      | 350,748 |   |

----

|                        |   | 2010   |   |   | 2009   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
|                        |   |   |   |   |   |   |
| Goodwill                    |   |   |   |   |   |   |
| Balance, Beginning          |   | $      | -      |   |   | $      | 2,412,338 |   |
| Goodwill Impairment Expense |   |   | -      |   |   |   | (2,412,338 | ) |
|                        |   |   |   |   |   |   |   |   |
| Balance, Ending             |   | $      | -      |   |   | $      | - |   |

|                       |   | Core Deposit Intangible |      |   | Accumulated Amortization |   |     | Net Core Deposit Intangible |   |
|----------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|----------|-----------------------------|--------|
|                       |   |                    |      |   |                     |   |     |                        |   |
| Core Deposit Intangible    |   |                    |      |   |                     |   |     |                        |   |
| Balance, December 31, 2009 |   | $                       | 1,056,693 |   |                     | $      | (725,937 | )                           |   | $ | 330,756 |   |
|                       |   |                    |      |   |                     |   |     |                        |   |   |   |   |
| Amortization Expense       |   |                    | -         |   |                     |   | (35,749  | )                           |   |   | (35,749 | ) |
|                       |   |                    |      |   |                     |   |     |                        |   |   |   |   |
| Balance, December 31, 2010 |   | $                       | 1,056,693 |   |                     | $      | (761,686 | )                           |   | $ | 295,007 |   |

| 2011                |   | $      | 35,749  |   |
|---------------------|--------|--------|---------|--------|
| 2012                |   |   | 35,749  |   |
| 2013                |   |   | 35,749  |   |
| 2014                |   |   | 35,749  |   |
| 2015 and Thereafter |   |   | 152,011 |   |
|                |   |   |    |   |
|                |   | $      | 295,007 |   |

----

|                                       |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                       |   |   |       |   |   |   |       |   |   |
| Current Federal (Benefit) Expense          |   | $      | (1,037,717 | )      |   | $      | (4,075,442 | )      |   | $ | 861,723 |   |
| Deferred Federal (Benefit) Expense         |   |   | 639,607    |   |   |   | (5,869,055 | )      |   |   | (250,215 | ) |
|                                       |   |   |       |   |   |   |       |   |   |   |   |   |
| Federal Income Tax (Benefit) Expense       |   |   | (398,110   | )      |   |   | (9,944,497 | )      |   |   | 611,508 |   |
| Current State Income Tax (Benefit) Expense |   |   | (61,104    | )      |   |   | (50,384    | )      |   |   | (54,278 | ) |
|                                       |   |   |       |   |   |   |       |   |   |   |   |   |
|                                       |   | $      | (459,214   | )      |   | $      | (9,994,881 | )      |   | $ | 557,230 |   |

|                                       |   | 2010   |     |   | 2009   |   |       | 2008   |   |
|--------------------------------------------|--------|--------|----------|--------|--------|--------|------------|--------|--------|
|                                       |   |   |     |   |   |   |       |   |   |
| Statutory Federal Income Taxes             |   | $      | 5,101    |   |   | $      | (9,920,776 | )      |   | $ | 879,258 |   |
| Tax-Exempt Interest                        |   |   | (117,586 | )      |   |   | (185,775   | )      |   |   | (239,097 | ) |
| Interest Expense Disallowance              |   |   | 8,400    |   |   |   | 16,729     |   |   |   | 35,869 |   |
| Premiums on Officers’ Life Insurance |   |   | (134,106 | )      |   |   | (58,906    | )      |   |   | (54,464 | ) |
| Meal and Entertainment Disallowance        |   |   | 24,972   |   |   |   | 32,068     |   |   |   | 13,810 |   |
| State Income Taxes                         |   |   | -        |   |   |   | -          |   |   |   | - |   |
| Goodwill                                   |   |   | -        |   |   |   | 58,507     |   |   |   | - |   |
| Other                                      |   |   | (184,891 | )      |   |   | 113,656    |   |   |   | (23,868 | ) |
|                                       |   |   |     |   |   |   |       |   |   |   |   |   |
| Actual Federal Income Taxes                |   | $      | (398,110 | )      |   | $      | (9,944,497 | )      |   | $ | 611,508 |   |

----

|                                                                      |   | 2010   |       |   | 2009   |   |
|---------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Deferred Tax Assets                                                       |   |   |       |   |   |   |
| Allowance for Loan Losses                                                 |   | $      | 9,615,226  |   |   | $      | 10,676,218 |   |
| Other Real Estate                                                         |   |   | 511,839    |   |   |   | 158,919 |   |
| Deferred Compensation                                                     |   |   | 423,233    |   |   |   | 441,514 |   |
| Restricted Stock                                                          |   |   | 504,772    |   |   |   | 475,045 |   |
| Goodwill                                                                  |   |   | 439,100    |   |   |   | 486,077 |   |
| Other                                                                     |   |   | 470,435    |   |   |   | 447,472 |   |
|                                                                      |   |   |       |   |   |   |   |   |
|                                                                      |   |   | 11,964,605 |   |   |   | 12,685,245 |   |
| Deferred Tax Liabilities                                                  |   |   |       |   |   |   |   |   |
| Premises and Equipment                                                    |   |   | (1,184,064 | )      |   |   | (1,340,773 | ) |
| Vested Restricted Stock                                                   |   |   | (412,715   | )      |   |   | (337,039 | ) |
| Other                                                                     |   |   | (4,185     | )      |   |   | (4,185 | ) |
|                                                                      |   |   |       |   |   |   |   |   |
|                                                                      |   |   | (1,600,964 | )      |   |   | (1,681,997 | ) |
| Deferred Tax Assets (Liabilities) on Unrealized Securities Gains (Losses) |   |   | 308,982    |   |   |   | 51,417 |   |
|                                                                      |   |   |       |   |   |   |   |   |
| Net Deferred Tax Assets                                                   |   | $      | 10,672,623 |   |   | $      | 11,054,665 |   |

| Balance, Beginning                                        |   | $      | 221,584  |   |
|-----------------------------------------------------------|--------|--------|----------|--------|
|                                                      |   |   |     |   |
| Positions Taken During the Current Year                   |   |   | 17,259   |   |
| Reductions Resulting from Lapse of Statutes of Limitation |   |   | (160,722 | )      |
|                                                      |   |   |     |   |
| Balance, Ending                                           |   | $      | 78,121   |   |

----

|   | · | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 inputs to the valuation methodology are unobservable and represent the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   |             |        |   | Fair Value Measurements at Reporting Date Using                          |   |
|------------------------------------------|--------|------------------|-------------|--------|--------------------------------------------------------------------------|--------|
| 2010                                     |   | Total Fair Value |        |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
|                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |
| Recurring                                |   |             |        |   |                                                                     |   |   |   |   |   |   |   |
| Securities Available for Sale            |   |             |        |   |                                                                     |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                | 298,462,456 |   |                                                                     | $      | - |   |   | $ | 298,462,456 |   |   | $ | - |   |
| State, County and Municipal              |   |             | 3,256,233   |   |                                                                     |   | - |   |   |   | 3,256,233 |   |   |   | - |   |
| Corporate Obligations                    |   |             | 1,986,490   |   |                                                                     |   | - |   |   |   | 1,101,920 |   |   |   | 884,570 |   |
| Asset-Backed Securities                  |   |             | 132,427     |   |                                                                     |   | - |   |   |   | - |   |   |   | 132,427 |   |
|                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                | 303,837,606 |   |                                                                     | $      | - |   |   | $ | 302,820,609 |   |   | $ | 1,016,997 |   |
| Nonrecurring                             |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Impaired Loans                           |   | $                | 28,246,144  |   |                                                                     | $      | - |   |   | $ |   - |   |   | $ | 28,246,144 |   |
|                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Other Real Estate                        |   | $                | 20,207,806  |   |                                                                     | $      | - |   |   | $ | 20,207,806 |   |   | $ | - |   |
|                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Recurring                                |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Securities Available for Sale            |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                | 258,909,008 |   |                                                                     | $      | - |   |   | $ | 258,909,008 |   |   | $ | - |   |
| State, County and Municipal              |   |             | 4,067,228   |   |                                                                     |   | - |   |   |   | 4,067,228 |   |   |   | - |   |
| Corporate Obligations                    |   |             | 4,138,010   |   |                                                                     |   | - |   |   |   | 3,288,010 |   |   |   | 850,000 |   |
| Asset-Backed Securities                  |   |             | 132,427     |   |                                                                     |   | - |   |   |   | - |   |   |   | 132,427 |   |
|                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                | 267,246,673 |   |                                                                     | $      | - |   |   | $ | 266,264,246 |   |   | $ | 982,427 |   |
| Nonrecurring                             |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Impaired Loans                           |   | $                | 33,518,160  |   |                                                                     | $      | - |   |   | $ | - |   |   | $ | 33,518,160 |   |
|                                     |   |             |        |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Other Real Estate                        |   | $                | 19,705,044  |   |                                                                     | $      | - |   |   | $ | 19,705,044 |   |   | $ | - |   |

----

|                                                                         |   | Available for Sale Securities |      |
|------------------------------------------------------------------------------|--------|-------------------------------|-----------|
|                                                                         |   | 2010                          |      |   | 2009 |   |
|                                                                         |   |                          |      |   |   |   |
| Balance, Beginning                                                           |   | $                             | 982,427   |   |   | $ | 1,426,220 |   |
|                                                                         |   |                          |      |   |   |   |   |   |
| Total Realized/Unrealized Gains (Losses) Included In Loss on OTTI Impairment |   |                          | -         |   |   |   | (520,751 | ) |
| Other Comprehensive Income                                                   |   |                          | 34,570    |   |   |   | 76,958 |   |
| Purchases, Sales, Issuances and Settlements, Net                             |   |                          | -         |   |   |   | - |   |
| Transfers In and (Out) of Level 3                                            |   |                          | -         |   |   |   | - |   |
|                                                                         |   |                          |      |   |   |   |   |   |
| Balance, Ending                                                              |   | $                             | 1,016,997 |   |   | $ | 982,427 |   |

|                    |   | 2010   |        |   | 2009   |   |
|-------------------------|--------|--------|-------------|--------|--------|--------|
|                    |   |   |        |   |   |   |
| Interest-Bearing Demand |   | $      | 235,855,037 |   |   | $      | 220,168,255 |   |
| Savings                 |   |   | 36,629,698  |   |   |   | 34,850,882 |   |
| Time, $100,000 and Over |   |   | 298,009,596 |   |   |   | 364,064,083 |   |
| Other Time              |   |   | 385,670,250 |   |   |   | 354,264,422 |   |
|                    |   |   |        |   |   |   |   |   |
|                    |   | $      | 956,164,581 |   |   | $      | 973,347,642 |   |

| Year                |   | Amount |        |
|---------------------|--------|--------|-------------|
|                |   |   |        |
| 2011                |   | $      | 480,445,908 |   |
| 2012                |   |   | 101,801,446 |   |
| 2013                |   |   | 88,077,653  |   |
| 2014                |   |   | 8,314,804   |   |
| 2015 and Thereafter |   |   | 5,040,035   |   |
|                |   |   |        |   |
|                |   | $      | 683,679,846 |   |

----

|                            |   | 2010   |       |   | 2009   |   |
|---------------------------------|--------|--------|------------|--------|--------|--------|
|                            |   |   |       |   |   |   |
| Federal Home Loan Bank Advances |   | $      | 71,000,000 |   |   | $      | 91,000,000 |   |
| Other Secured Borrowing         |   |   | 4,076,010  |   |   |   | - |   |
|                            |   |   |       |   |   |   |   |   |
|                            |   | $      | 75,076,010 |   |   | $      | 91,000,000 |   |

| Year                |   | Amount |       |
|---------------------|--------|--------|------------|
|                |   |   |       |
| 2011                |   | $      | 4,076,010  |   |
| 2012                |   |   | 41,000,000 |   |
| 2013                |   |   | -          |   |
| 2014                |   |   | -          |   |
| 2015 and Thereafter |   |   | 30,000,000 |   |
|                |   |   |       |   |
|                |   | $      | 75,076,010 |   |

----

----

----

|                         |   | Contract Amount |       |
|------------------------------|--------|-----------------|------------|
|                         |   | 2010            |       |   | 2009 |   |
|                         |   |            |       |   |   |   |
| Commitments to Extend Credit |   | $               | 39,457,000 |   |   | $ | 56,100,000 |   |
| Standby Letters of Credit    |   |            | 1,540,000  |   |   |   | 1,475,000 |   |

----

|             |   | 2010   |       |   | 2009   |   |          | 2008   |   |
|------------------|--------|--------|------------|--------|--------|--------|---------------|--------|--------|
|             |   |   |       |   |   |   |          |   |   |
| Interest Expense |   | $      | 21,975,968 |   |   | $      | 27,537,602    |   |   | $ | 38,739,489 |   |
|             |   |   |       |   |   |   |          |   |   |   |   |   |
| Income Taxes     |   | $      | 275,000    |   |   | $      |   - |   |   | $ | 1,875,000 |   |

----

|                                                  |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Acquisitions of Real Estate Through Loan Foreclosures |   | $      | 13,159,402 |   |   | $      | 19,258,910 |   |   | $ | 14,748,105 |   |
|                                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Unrealized (Gain) Loss on Investment Securities       |   | $      | 757,545    |   |   | $      | 721,116    |   |   | $ | (157,957 | ) |

|                                     |   | 2010   |       |   | 2009   |   |
|------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                     |   |   |       |   |   |   |
| Balance, Beginning                       |   | $      | 6,473,238  |   |   | $      | 7,641,037 |   |
| New Loans                                |   |   | 12,533,229 |   |   |   | 4,829,291 |   |
| Repayments                               |   |   | (9,208,975 | )      |   |   | (5,997,090 | ) |
| Transactions Due to Changes in Directors |   |   | -          |   |   |   | - |   |
|                                     |   |   |       |   |   |   |   |   |
| Balance, Ending                          |   | $      | 9,797,492  |   |   | $      | 6,473,238 |   |

----

|                                           |   | 2010           |      |   | 2009       |   |
|------------------------------------------------|--------|----------------|-----------|--------|------------|--------|
|                                           |   | Carrying       |      |   | Estimated  |   |   | Carrying |   |   | Estimated |   |
|                                           |   | Amount         |      |   | Fair Value |   |   | Amount |   |   | Fair Value |   |
|                                           |   | (in Thousands) |      |
| Assets                                         |   |           |      |   |       |   |   |   |   |   |   |   |
| Cash and Short-Term Investments                |   | $              | 104,876   |   |       | $      | 104,876 |   |   | $ | 48,908 |   |   | $ | 48,908 |   |
| Investment Securities Available for Sale       |   |           | 303,838   |   |       |   | 303,838 |   |   |   | 267,247 |   |   |   | 267,247 |   |
| Investment Securities Held to Maturity         |   |           | 48        |   |       |   | 53 |   |   |   | 54 |   |   |   | 57 |   |
| Federal Home Loan Bank Stock                   |   |           | 6,064     |   |       |   | 6,064 |   |   |   | 6,345 |   |   |   | 6,345 |   |
| Loans, Net                                     |   |           | 784,909   |   |       |   | 788,455 |   |   |   | 899,851 |   |   |   | 908,638 |   |
|                                           |   |           |      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                    |   |           |      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                       |   |           | 1,059,124 |   |       |   | 1,064,695 |   |   |   | 1,057,586 |   |   |   | 1,059,037 |   |
| Subordinated Debentures                        |   |           | 24,229    |   |       |   | 24,229 |   |   |   | 24,229 |   |   |   | 24,229 |   |
| Securities Sold Under Agreements to Repurchase |   |           | 20,000    |   |       |   | 20,308 |   |   |   | 40,000 |   |   |   | 40,671 |   |
| Other Borrowed Money                           |   |           | 75,076    |   |       |   | 77,119 |   |   |   | 91,000 |   |   |   | 91,703 |   |

----

----

|                                   |   | Actual         |    |   | For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|----------------------------------------|--------|----------------|---------|--------|-------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                   |   | Amount         |    |   | Ratio                         |   |   | Amount                                                           |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of December 31, 2010                |   | (In Thousands) |    |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk-Weighted Assets  |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   | $              | 116,914 |   |                          |   | 14.85  | %                                                                |   | $ | 62,981 |   |   |   | 8.00 | % |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 113,119 |   |                          |   | 14.39  |                                                             |   |   | 62,905 |   |   |   | 8.00 |   |   | $ | 78,631 |   |   |   | 10.00 | % |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Risk-Weighted Assets |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 106,845 |   |                          |   | 13.57  |                                                             |   |   | 31,491 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 103,062 |   |                          |   | 13.11  |                                                             |   |   | 31,452 |   |   |   | 4.00 |   |   |   | 47,179 |   |   |   | 6.00 |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Average Assets       |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 106,845 |   |                          |   | 8.59   |                                                             |   |   | 49,748 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 103,062 |   |                          |   | 8.30   |                                                             |   |   | 49,697 |   |   |   | 4.00 |   |   |   | 62,122 |   |   |   | 5.00 |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009                |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk-Weighted Assets  |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 118,848 |   |                          |   | 13.07  |                                                             |   |   | 72,768 |   |   |   | 8.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 117,756 |   |                          |   | 12.97  |                                                             |   |   | 72,622 |   |   |   | 8.00 |   |   | $ | 90,777 |   |   |   | 10.00 | % |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Risk-Weighted Assets |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 107,231 |   |                          |   | 11.79  |                                                             |   |   | 36,384 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 106,161 |   |                          |   | 11.69  |                                                             |   |   | 36,311 |   |   |   | 4.00 |   |   |   | 54,466 |   |   |   | 6.00 |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Average Assets       |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 107,231 |   |                          |   | 8.30   |                                                             |   |   | 51,708 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 106,161 |   |                          |   | 8.22   |                                                             |   |   | 51,641 |   |   |   | 4.00 |   |   |   | 64,551 |   |   |   | 5.00 |   |

----

| ASSETS                                                                                                                                        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                          |   |   |   |   |   |   |
|                                                                                                                                          |   | 2010 |   |   | 2009 |   |
|                                                                                                                                          |   |   |   |   |   |   |
| Cash                                                                                                                                          |   | $ | 3,173,061 |   |   | $ | 556,209 |   |
| Premises and Equipment, Net                                                                                                                   |   |   | 1,478,045 |   |   |   | 1,553,652 |   |
| Investment in Subsidiary, at Equity                                                                                                           |   |   | 112,389,013 |   |   |   | 111,450,651 |   |
| Other                                                                                                                                         |   |   | 484,008 |   |   |   | 257,252 |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                  |   | $ | 117,524,127 |   |   | $ | 113,817,764 |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                    |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                   |   |   |   |   |   |   |   |   |
| Dividends Payable                                                                                                                             |   | $ | 175,000 |   |   | $ | 175,000 |   |
| Other                                                                                                                                         |   |   | 161,544 |   |   |   | 139,140 |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   |   | 336,544 |   |   |   | 314,140 |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
| Subordinated Debt                                                                                                                             |   |   | 24,229,000 |   |   |   | 24,229,000 |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                                                                                    |   |   |   |   |   |   |   |   |
| Preferred Stock, No Par Value; Authorized 10,000,000 Shares, Issued 28,000 Shares                                                             |   |   | 27,505,910 |   |   |   | 27,356,964 |   |
| Common Stock, Par Value $1; Authorized 20,000,000 Shares, Issued 8,442,958 and 7,229,163Shares as of December 31, 2010 and 2009, Respectively |   |   | 8,442,958 |   |   |   | 7,229,163 |   |
| Paid-In Capital                                                                                                                               |   |   | 29,171,087 |   |   |   | 25,392,913 |   |
| Retained Earnings                                                                                                                             |   |   | 28,479,211 |   |   |   | 29,553,940 |   |
| Restricted Stock - Unearned Compensation                                                                                                      |   |   | (40,794 | ) |   |   | (158,547 | ) |
| Accumulated Other Comprehensive Income, Net of Tax                                                                                            |   |   | (599,789 | ) |   |   | (99,809 | ) |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   |   | 92,958,583 |   |   |   | 89,274,624 |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                              |   | $ | 117,524,127 |   |   | $ | 113,817,764 |   |

----

|                                                                          |   | 2010   |       |   | 2009   |   |        | 2008   |   |
|-------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
|                                                                          |   |   |       |   |   |   |        |   |   |
| Income                                                                        |   |   |       |   |   |   |        |   |   |
| Dividends from Subsidiary                                                     |   | $      | 15,536     |   |   | $      | 2,170,827   |   |   | $ | 5,038,854 |   |
| Management Fees                                                               |   |   | 455,241    |   |   |   | 227,620     |   |   |   | - |   |
| Other                                                                         |   |   | 119,776    |   |   |   | 100,157     |   |   |   | 92,111 |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                                          |   |   | 590,553    |   |   |   | 2,498,604   |   |   |   | 5,130,965 |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
| Expenses                                                                      |   |   |       |   |   |   |        |   |   |   |   |   |
| Interest                                                                      |   |   | 516,170    |   |   |   | 659,456     |   |   |   | 1,270,942 |   |
| Amortization                                                                  |   |   | 2,250      |   |   |   | 2,250       |   |   |   | 2,250 |   |
| Salaries and Employee Benefits                                                |   |   | 761,873    |   |   |   | 848,076     |   |   |   | 876,166 |   |
| Goodwill Impairment                                                           |   |   | -          |   |   |   | 172,029     |   |   |   | - |   |
| Other                                                                         |   |   | 807,209    |   |   |   | 799,924     |   |   |   | 1,240,339 |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                                          |   |   | 2,087,502  |   |   |   | 2,481,735   |   |   |   | 3,389,697 |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
| Income (Loss) Before Taxes and Equity in Undistributed Earnings of Subsidiary |   |   | (1,496,949 | )      |   |   | 16,869      |   |   |   | 1,741,268 |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
|     Income Tax Benefits                                   |   |   | 532,823    |   |   |   | 608,062     |   |   |   | 979,911 |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
| Income (Loss) Before Equity in Undistributed Earnings of Subsidiary           |   |   | (964,126   | )      |   |   | 624,931     |   |   |   | 2,721,179 |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
| Equity in Undistributed Earnings (Losses) of Subsidiary                       |   |   | 1,438,342  |   |   |   | (19,808,805 | )      |   |   | (692,355 | ) |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
| Net Income (Loss)                                                             |   |   | 474,216    |   |   |   | (19,183,874 | )      |   |   | 2,028,824 |   |
| Preferred Stock Dividends                                                     |   |   | 1,400,000  |   |   |   | 1,365,000   |   |   |   | - |   |
|                                                                          |   |   |       |   |   |   |        |   |   |   |   |   |
| Net Income (Loss) Available to Common Stockholders                            |   | $      | (925,784   | )      |   | $      | (20,548,874 | )      |   | $ | 2,028,824 |   |

----

|                                                                                                                                                      |   | 2010   |       |   | 2009   |   |        | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
|                                                                                                                                                      |   |   |       |   |   |   |        |   |   |
| Net Income (Loss)                                                                                                                                         |   | $      | 474,216    |   |   | $      | (19,183,874 | )      |   | $ | 2,028,824 |   |
|                                                                                                                                                      |   |   |       |   |   |   |        |   |   |   |   |   |
| Other Comprehensive Income, Net of Tax                                                                                                                    |   |   |       |   |   |   |        |   |   |   |   |   |
| Gains on Securities Arising During the Year                                                                                                               |   |   | 1,227,281  |   |   |   | 1,257,136   |   |   |   | 893,158 |   |
| Reclassification Adjustment                                                                                                                               |   |   | (1,727,261 | )      |   |   | (1,733,072  | )      |   |   | (788,907 | ) |
|                                                                                                                                                      |   |   |       |   |   |   |        |   |   |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of     Reclassification Adjustment and Tax Effects |   |   | (499,980   | )      |   |   | (475,936    | )      |   |   | 104,251 |   |
|                                                                                                                                                      |   |   |       |   |   |   |        |   |   |   |   |   |
| Comprehensive Income (Loss)                                                                                                                               |   | $      | (25,764    | )      |   | $      | (19,659,810 | )      |   | $ | 2,133,075 |   |

----

|                                                                                           |   | 2010   |          |   | 2009   |   |        | 2008   |   |
|------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|-------------|--------|--------|
|                                                                                           |   |   |          |   |   |   |        |   |   |
| Cash Flows from Operating Activities                                                           |   |   |          |   |   |   |        |   |   |
| Net Income (Loss)                                                                              |   | $      |  474,216 |   |   | $      | (19,183,874 | )      |   | $ | 2,028,824 |   |
| Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities |   |   |          |   |   |   |        |   |   |   |   |   |
| Depreciation and Amortization                                                                  |   |   | 194,918       |   |   |   | 295,209     |   |   |   | 275,299 |   |
| Goodwill Impairment                                                                            |   |   | -             |   |   |   | 172,029     |   |   |   | - |   |
| Equity in Undistributed (Earnings) Losses of Subsidiary                                        |   |   | (1,438,342    | )      |   |   | 19,808,805  |   |   |   | 692,355 |   |
| Other                                                                                          |   |   | (260,318      | )      |   |   | 31,634      |   |   |   | 720,701 |   |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
|                                                                                           |   |   | (1,029,526    | )      |   |   | 1,123,803   |   |   |   | 3,717,179 |   |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
| Cash Flows from Investing Activities                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
| Capital Infusion in Subsidiary                                                                 |   |   | -             |   |   |   | (25,500,000 | )      |   |   | (1,500,000 | ) |
| Purchases of Premises and Equipment                                                            |   |   | (31,877       | )      |   |   | (119,156    | )      |   |   | (393,392 | ) |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
|                                                                                           |   |   | (31,877       | )      |   |   | (25,619,156 | )      |   |   | (1,893,392 | ) |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
| Cash Flows from Financing Activities                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
| Dividends Paid on Preferred Stock                                                              |   |   | (1,400,000    | )      |   |   | (1,190,000  | )      |   |   | - |   |
| Dividends Paid on Common Stock                                                                 |   |   | -             |   |   |   | (1,760,665  | )      |   |   | (2,794,520 | ) |
| Principal Payments on Notes and Debentures                                                     |   |   | -             |   |   |   | -           |   |   |   | - |   |
| Proceeds from Issuance of Common Stock                                                         |   |   | 5,078,225     |   |   |   | -           |   |   |   | - |   |
| Proceeds Allocated to Issuance of Preferred Stock                                              |   |   | -             |   |   |   | 27,215,218  |   |   |   | - |   |
| Proceeds Allocated to Warrants Issued                                                          |   |   | -             |   |   |   | 784,782     |   |   |   | - |   |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
|                                                                                           |   |   | 3,678,255     |   |   |   | 25,049,335  |   |   |   | (2,794,520 | ) |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
| Increase (Decrease) in Cash                                                                    |   |   | 2,616,852     |   |   |   | 553,982     |   |   |   | (970,733 | ) |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
| Cash, Beginning                                                                                |   |   | 556,209       |   |   |   | 2,227       |   |   |   | 972,960 |   |
|                                                                                           |   |   |          |   |   |   |        |   |   |   |   |   |
| Cash, Ending                                                                                   |   | $      | 3,173,061     |   |   | $      | 556,209     |   |   | $ | 2,227 |   |

----

| December 31, 2010                                                                               |   | Income Numerator |        |   | Common Shares Denominator |   |      | EPS    |   |
|-------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|---------------------------|--------|-----------|--------|--------|
|                                                                                            |   |             |        |   |                      |   |      |   |   |
| Basic EPS                                                                                       |   |             |        |   |                      |   |      |   |   |
| Income (Loss) Available to Common Stockholders                                                  |   | $                | (925,784    | )      |                      | $      | 8,149,217 |   |   | $ | (0.11 | ) |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Dilutive Effect of Potential Common Stock                                                       |   |             |        |   |                      |   |      |   |   |   |   |   |
| Restricted Stock                                                                                |   |             |        |   |                      |   | -         |   |   |   |   |   |
| Stock Warrants                                                                                  |   |             |        |   |                      |   | -         |   |   |   |   |   |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Diluted EPS                                                                                     |   |             |        |   |                      |   |      |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders After Assumed Conversions of Dilutive Securities |   | $                | (925,784    | )      |                      | $      | 8,149,217 |   |   | $ | (0.11 | ) |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| December 31, 2009                                                                               |   |             |        |   |                      |   |      |   |   |   |   |   |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Basic EPS                                                                                       |   |             |        |   |                      |   |      |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders                                                  |   | $                | (20,548,874 | )      |                      |   | 7,213,430 |   |   | $ | (2.85 | ) |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Dilutive Effect of Potential Common Stock                                                       |   |             |        |   |                      |   |      |   |   |   |   |   |
| Restricted Stock                                                                                |   |             |        |   |                      |   | -         |   |   |   |   |   |
| Stock Warrants                                                                                  |   |             |        |   |                      |   | -         |   |   |   |   |   |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Diluted EPS                                                                                     |   |             |        |   |                      |   |      |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders After Assumed Conversions of Dilutive Securities |   | $                | (20,548,874 | )      |                      |   | 7,213,430 |   |   | $ | (2.85 | ) |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| December 31, 2008                                                                               |   |             |        |   |                      |   |      |   |   |   |   |   |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Basic EPS                                                                                       |   |             |        |   |                      |   |      |   |   |   |   |   |
| Income Available to Common Stockholders                                                         |   | $                | 2,028,824   |   |                      |   | 7,199,121 |   |   | $ | 0.28 |   |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Dilutive Effect of Potential Common Stock                                                       |   |             |        |   |                      |   |      |   |   |   |   |   |
| Restricted Stock                                                                                |   |             |        |   |                      |   | -         |   |   |   |   |   |
|                                                                                            |   |             |        |   |                      |   |      |   |   |   |   |   |
| Diluted EPS                                                                                     |   |             |        |   |                      |   |      |   |   |   |   |   |
| Income Available to Common Stockholders After Assumed Conversions of Dilutive Securities   |   | $                | 2,028,824   |   |                      |   | 7,199,121 |   |   | $ | 0.28 |   |

----