|   | UNITED STATES |
|--------|---------------|

|   | SECURITIES AND EXCHANGE COMMISSION |
|--------|------------------------------------|

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

| FOR THE QUARTERLY PERIOD ENDED: | September 30, 2010        |
|---------------------------------|---------------------------|
|                            | ------------------------- |

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-------------------------------------------------------------------------------------------|

| COMMISSION FILE NUMBER: | 000-50224          |
|-------------------------|--------------------|
|                    | ------------------ |

| MISSISSIPPI                                              | 64-0681198                                                 |
|----------------------------------------------------------|------------------------------------------------------------|
|  (STATE OF INCORPORATION)                           | (I. R. S. EMPLOYER IDENTIFICATION NO.)                     |
|                                                     |                                                       |
| 295 HIGHWAY 6 WEST/ P. O. BOX 690                        |                                                       |
| BATESVILLE, MISSISSIPPI                                  | 38606                                                      |
| -------------------------------------------------------- | ---------------------------------------------------------- |
| (ADDRESS OF PRINCIPAL                                    | (ZIP CODE)                                                 |
| EXECUTIVE OFFICES)                                       |                                                       |

----

| TITLE                         | OUTSTANDING |
|-------------------------------|-------------|
| COMMON STOCK, $5.00 PAR VALUE | 2,883,159   |

----

| TABLE OF CONTENTS |
|-------------------|
|              |   |   |
| PART I.           | FINANCIAL INFORMATION |   |
|              |   |   |
| Item 1.           | Consolidated Financial Statements |   |
|              |   |   |
|              | Consolidated Balance Sheets |   |
|              | September 30, 2010  (unaudited) and December 31, 2009 |   |
|              |   |   |
|              | Consolidated Statements of Income |   |
|              | Nine months and three months ended September 30, 2010  and 2009 (unaudited) |   |
|              |   |   |
|              | Consolidated Statements of Comprehensive Income |   |
|              | Nine months and three months ended September 30, 2010  and 2009 (unaudited) |   |
|              |   |   |
|              | Consolidated Statements of Cash Flows |   |
|              | Nine months ended September 30, 2010  and 2009 (unaudited) |   |
|              |   |   |
|              | Notes to Consolidated Financial Statements (unaudited) |   |
|              |   |   |
| Item 2.           | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |
|              |   |   |
| Item 3.           | Quantitative and Qualitative Disclosures about Market Risk |   |
|              |   |   |
| Item 4.           | Controls and Procedures |   |
|              |   |   |
|              |   |   |
| PART II.          | OTHER INFORMATION |   |
|              |   |   |
| Item 1.           | Legal Proceedings |   |
|              |   |   |
| Item 1A.          | Risk Factors |   |
|              |   |   |
| Item 2.           | Changes in Securities |   |
|              |   |   |
| Item 3.           | Defaults upon Senior Securities |   |
|              |   |   |
| Item 4.           | Submission of Matters to a Vote of Security Holders |   |
|              |   |   |
| Item 5.           | Other Information |   |
|              |   |   |
| Item 6.           | Exhibits and Reports on Form 8-K |   |

----

|   |   |
|--------|--------|

| SECURITY CAPITAL CORPORATION                                           |   |
|------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                            |   |
| (dollar amounts presented in thousands)                                |   |
|                                                                   |   | (Unaudited) |   |   |   |   |
|                                                                   |   | Sept. 30, |   |   | Dec. 31, |   |
|                                                                   |   | 2010 |   |   | 2009 |   |
| ASSETS                                                                 |   |   |   |   |   |   |
| Cash and due from banks                                                |   | $ | 18,942 |   |   | $ | 16,722 |   |
| Interest-bearing deposits with banks                                   |   |   | 1,376 |   |   |   | 323 |   |
|    Total cash and cash equivalents                      |   |   | 20,318 |   |   |   | 17,045 |   |
| Federal funds sold                                                     |   |   | 37,270 |   |   |   | 20,550 |   |
| Certificates of deposit with other banks                               |   |   | 578 |   |   |   | 296 |   |
| Securities available-for-sale                                          |   |   | 118,834 |   |   |   | 109,466 |   |
| Securities held-to-maturity, estimated fair value of                   |   |   | 26,633 |   |   |   | 14,759 |   |
|    $26,860 in 2010 and $14,781 in 2009                  |   |   |   |   |   |   |   |   |
| Securities, other                                                      |   |   | 2,227 |   |   |   | 2,223 |   |
|    Total securities                                     |   |   | 147,694 |   |   |   | 126,448 |   |
| Loans, less allowance for loan losses of                               |   |   |   |   |   |   |   |   |
|    $3,708 in 2010 and $4,352 in 2009                    |   |   | 252,005 |   |   |   | 262,259 |   |
| Interest receivable                                                    |   |   | 3,407 |   |   |   | 3,235 |   |
| Premises and equipment                                                 |   |   | 23,422 |   |   |   | 23,908 |   |
| Other real estate                                                      |   |   | 20,141 |   |   |   | 20,770 |   |
| Intangible assets                                                      |   |   | 3,874 |   |   |   | 3,874 |   |
| Cash surrender value of life insurance                                 |   |   | 6,575 |   |   |   | 6,444 |   |
| Customers' liability acceptances                                       |   |   | 1,739 |   |   |   | 1,429 |   |
| Other assets                                                           |   |   | 4,694 |   |   |   | 5,114 |   |
| Total Assets                                                           |   | $ | 521,717 |   |   | $ | 491,372 |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                   |   |   |   |   |   |   |   |   |
| Liabilities:                                                           |   |   |   |   |   |   |   |   |
|    Noninterest-bearing deposits                         |   | $ | 71,028 |   |   | $ | 61,673 |   |
|    Time deposits of $100,000 or more                    |   |   | 79,989 |   |   |   | 67,578 |   |
|    Other interest-bearing deposits                      |   |   | 261,382 |   |   |   | 254,249 |   |
|       Total deposits                     |   |   | 412,399 |   |   |   | 383,500 |   |
|    Interest payable                                     |   |   | 392 |   |   |   | 556 |   |
|    Acceptances outstanding                              |   |   | 1,739 |   |   |   | 1,429 |   |
|    Borrowed funds                                       |   |   | 26,552 |   |   |   | 28,912 |   |
|    Other liabilities                                    |   |   | 5,814 |   |   |   | 4,195 |   |
| Total Liabilities                                                      |   |   | 446,896 |   |   |   | 418,592 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| Shareholders' equity:                                                  |   |   |   |   |   |   |   |   |
|    Preferred stock - $1,000 par value, 25,000 shares    |   |   |   |   |   |   |   |   |
|    authorized, 17,910 shares issued in 2010 and 2009    |   |   | 17,681 |   |   |   | 17,504 |   |
|    Common stock - $5 par value, 10,000,000 shares       |   |   |   |   |   |   |   |   |
|    authorized, 2,890,811 shares issued in 2010 and 2009 |   |   | 14,454 |   |   |   | 14,454 |   |
| Surplus                                                                |   |   | 39,671 |   |   |   | 40,732 |   |
| Retained Earnings                                                      |   |   | 789 |   |   |   | (1,061 | ) |
| Accumulated other comprehensive income                                 |   |   | 2,264 |   |   |   | 1,189 |   |
| Treasury stock, at par, 7,652 shares in 2010 and 2009                  |   |   | (38 | ) |   |   | (38 | ) |
| Total Shareholders' Equity                                             |   |   | 74,821 |   |   |   | 72,780 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| Total Liabilities and Shareholders' Equity                             |   | $ | 521,717 |   |   | $ | 491,372 |   |

----

| SECURITY CAPITAL CORPORATION                      |   |
|---------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF INCOME                 |   |
| (dollar amounts presented in thousands)           |   |
|                                              |   | (Unaudited) |   |   | (Unaudited) |   |
|                                              |   | For the three months |   |   | For the nine months |   |
|                                              |   | ended September 30, |   |   | ended September 30, |   |
|                                              |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| INTEREST INCOME                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                        |   | $ | 3,832 |   |   | $ | 4,082 |   |   | $ | 11,413 |   |   | $ | 13,291 |   |
| Interest and dividends on securities              |   |   | 1,150 |   |   |   | 880 |   |   |   | 3,453 |   |   |   | 2,537 |   |
| Federal funds sold                                |   |   | 16 |   |   |   | 15 |   |   |   | 40 |   |   |   | 33 |   |
| Other                                             |   |   | 12 |   |   |   | 81 |   |   |   | 27 |   |   |   | 99 |   |
|    Total interest income           |   |   | 5,010 |   |   |   | 5,058 |   |   |   | 14,933 |   |   |   | 15,960 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST EXPENSE                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                              |   |   | 787 |   |   |   | 997 |   |   |   | 2,475 |   |   |   | 3,179 |   |
| Interest on borrowings                            |   |   | 273 |   |   |   | 316 |   |   |   | 736 |   |   |   | 865 |   |
| Interest on federal funds purchased               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |
|     Total interest expense    |   |   | 1,060 |   |   |   | 1,313 |   |   |   | 3,211 |   |   |   | 4,046 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                               |   |   | 3,950 |   |   |   | 3,745 |   |   |   | 11,722 |   |   |   | 11,914 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                         |   |   | 376 |   |   |   | 478 |   |   |   | 1,228 |   |   |   | 2,746 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income after provision               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   for loan losses                       |   |   | 3,574 |   |   |   | 3,267 |   |   |   | 10,494 |   |   |   | 9,168 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts               |   |   | 1,119 |   |   |   | 1,222 |   |   |   | 3,268 |   |   |   | 3,692 |   |
| Trust Department income                           |   |   | 195 |   |   |   | 201 |   |   |   | 635 |   |   |   | 622 |   |
| Securities net gain                               |   |   | 5 |   |   |   | 9 |   |   |   | 10 |   |   |   | 20 |   |
| Other income                                      |   |   | 439 |   |   |   | 296 |   |   |   | 910 |   |   |   | 1,067 |   |
|    Total other income              |   |   | 1,758 |   |   |   | 1,728 |   |   |   | 4,823 |   |   |   | 5,401 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER EXPENSES                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                    |   |   | 2,145 |   |   |   | 2,656 |   |   |   | 6,932 |   |   |   | 7,927 |   |
| Occupancy expense                                 |   |   | 603 |   |   |   | 676 |   |   |   | 1,823 |   |   |   | 2,041 |   |
| Other operating expense                           |   |   | 2,428 |   |   |   | 1,048 |   |   |   | 4,839 |   |   |   | 3,656 |   |
|    Total other expenses            |   |   | 5,176 |   |   |   | 4,380 |   |   |   | 13,594 |   |   |   | 13,624 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME BEFORE PROVISION (BENEFIT)                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FOR INCOME TAXES                |   |   | 156 |   |   |   | 615 |   |   |   | 1,723 |   |   |   | 945 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION (BENEFIT) FOR INCOME TAXES              |   |   | (136 | ) |   |   | 14 |   |   |   | 72 |   |   |   | (10 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                        |   |   | 292 |   |   |   | 601 |   |   |   | 1,651 |   |   |   | 955 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Dividends                               |   |   | (293 | ) |   |   | (289 | ) |   |   | (863 | ) |   |   | (299 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) APPLICABLE TO                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      COMMON SHAREHOLDERS |   | $ | (1 | ) |   | $ | 312 |   |   | $ | 788 |   |   | $ | 656 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC NET INCOME PER COMMON SHARE                 |   | $ | - |   |   | $ | 0.11 |   |   | $ | 0.27 |   |   | $ | 0.23 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| SECURITY CAPITAL CORPORATION                    |   |
|-------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |   |
| (dollar amounts presented in thousands)         |   |
|                                            |   | (Unaudited) |   |   |   |   |   |   |
|                                            |   | (Unaudited) |   |
|                                            |   | For the three months |   | For the nine months |   |
|                                            |   | ended Sept. 30, |   | ended Sept. 30, |   |
|                                            |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                      |   | $ | 292 |   |   | $ | 601 |   |   | $ | 1,651 |   |   | $ | 955 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of tax:         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unrealized holding gains      |   |   | 61 |   |   |   | 909 |   |   |   | 1,075 |   |   |   | 926 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                            |   | $ | 353 |   |   | $ | 1,510 |   |   | $ | 2,726 |   |   | $ | 1,881 |   |

----

| SECURITY CAPITAL CORPORATION                                                        |   |
|-------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                               |   |
| (dollar amounts presented in thousands)                                             |   |
|                                                                                |   | (Unaudited) |   |
|                                                                                |   | Nine months ended |   |
|                                                                                |   | September 30, |   |
|                                                                                |   | 2010 |   |   | 2009 |   |
|  CASH FLOWS FROM OPERATING ACTIVITIES:                                         |   |   |   |   |   |   |
|  NET INCOME                                                                    |   | $ | 1,651 |   |   | $ | 955 |   |
|  Adjustments to reconcile net income to                                        |   |   |   |   |   |   |   |   |
|     net cash provided by operating activities:                  |   |   |   |   |   |   |   |   |
|     Provision for loan losses                                   |   |   | 1,228 |   |   |   | 2,746 |   |
|     Amortization of premiums and discounts on securities, net   |   |   | 1,189 |   |   |   | 216 |   |
|     Depreciation and amortization                               |   |   | 903 |   |   |   | 943 |   |
|     FHLB stock dividend                                         |   |   | (5 | ) |   |   | (4 | ) |
|     Gain on securities                                          |   |   | (10 | ) |   |   | (20 | ) |
|     Loss (gain) on sale/disposal of other assets                |   |   | 60 |   |   |   | (103 | ) |
|  Changes in:                                                                   |   |   |   |   |   |   |   |   |
|     Interest receivable                                         |   |   | (172 | ) |   |   | 466 |   |
|     Cash value of life insurance, net                           |   |   | (168 | ) |   |   | (161 | ) |
|     Other real estate writedown                                 |   |   | 1,158 |   |   |   | 38 |   |
|     Other assets                                                |   |   | (3,088 | ) |   |   | 2,173 |   |
|     Interest payable                                            |   |   | (164 | ) |   |   | (476 | ) |
|     Other liabilities                                           |   |   | 1,619 |   |   |   | 861 |   |
|  Net cash provided by operating activities                                     |   |   | 4,201 |   |   |   | 7,634 |   |
|                                                                                |   |   |   |   |   |   |   |   |
|  CASH FLOWS FROM INVESTING ACTIVITIES                                          |   |   |   |   |   |   |   |   |
|  Decrease in loans                                                             |   |   | 9,148 |   |   |   | 23,870 |   |
|  Purchase of securities available-for-sale                                     |   |   | (62,102 | ) |   |   | (37,411 | ) |
|  Purchase of securities held-to-maturity                                       |   |   | (21,726 | ) |   |   | - |   |
|  Proceeds of maturities and calls of securities available-for-sale             |   |   | 52,967 |   |   |   | 16,806 |   |
|  Proceeds of maturities and calls of securities held-to-maturity               |   |   | 10,145 |   |   |   | 230 |   |
|  Additions to premises and equipment                                           |   |   | (74 | ) |   |   | (851 | ) |
|  Proceeds of sale of other assets                                              |   |   | 1,694 |   |   |   | 2,040 |   |
|  Changes in:                                                                   |   |   |   |   |   |   |   |   |
|     Federal funds sold                                          |   |   | (16,720 | ) |   |   | (19,000 | ) |
|  Net cash used in investing activities                                         |   |   | (26,668 | ) |   |   | (14,316 | ) |
|                                                                                |   |   |   |   |   |   |   |   |
|  CASH FLOWS FROM FINANCING ACTIVITIES                                          |   |   |   |   |   |   |   |   |
|  Dividends paid on preferred stock                                             |   |   | (799 | ) |   |   | (125 | ) |
|  Changes in:                                                                   |   |   |   |   |   |   |   |   |
|     Deposits                                                    |   |   | 28,899 |   |   |   | 10,100 |   |
|     Federal funds purchased                                     |   |   | - |   |   |   | (8,000 | ) |
|  Reissuance of treasury stock                                                  |   |   | - |   |   |   | 11 |   |
|  Issuance of preferred stock and warrants                                      |   |   | - |   |   |   | 17,388 |   |
|  Repayment of debt                                                             |   |   | (2,586 | ) |   |   | (5,830 | ) |
|  Proceeds from issuance of debt                                                |   |   | 226 |   |   |   | 120 |   |
|  Net cash provided by financing activities                                     |   |   | 25,740 |   |   |   | 13,664 |   |
|                                                                                |   |   |   |   |   |   |   |   |
|  Net increase in cash and cash equivalents                                     |   |   | 3,273 |   |   |   | 6,982 |   |
|  Cash and cash equivalents at beginning of period                              |   |   | 17,045 |   |   |   | 17,348 |   |
|  Cash and cash equivalents at end of period                                    |   | $ | 20,318 |   |   | $ | 24,330 |   |
|                                                                                |   |   |   |   |   |   |   |   |
|  Cash paid during the nine months for:                                         |   |   |   |   |   |   |   |   |
|    Interest                                                          |   | $ | 3,375 |   |   | $ | 4,523 |   |
|    Income taxes                                                      |   |   | - |   |   |   | 56 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Noncash activities:                                                                 |   |   |   |   |   |   |   |   |
|    Transfers of loans to other real estate and repossessed inventory |   |   | 1,648 |   |   |   | 7,684 |   |
|                                                                                |   |   |   |   |   |   |   |   |

----

----

| Securities                                                                 |   |
|----------------------------------------------------------------------------|--------|
| Amortized Cost and Fair Values                                             |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                                       |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Estimated |   |
|                                                                       |   | Cost |   |   | Gains |   |   | Losses |   |   | Fair Value |   |
|                                                                       |   | (In thousands) |   |
| September 30, 2010                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities available-for-sale:                           |   |   |   |   |   |   |   |   |   |   |   |   |
|       U. S. Government agencies              |   | $ | 25,335 |   |   | $ | 161 |   |   | $ | 5 |   |   | $ | 25,491 |   |
|       Mortgage-backed securities             |   |   | 34,786 |   |   |   | 1,875 |   |   |   | - |   |   |   | 36,661 |   |
|       State and local political subdivisions |   |   | 55,099 |   |   |   | 1,684 |   |   |   | 109 |   |   |   | 56,674 |   |
|       Other equity securities                |   |   | 4 |   |   |   | 4 |   |   |   | - |   |   |   | 8 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   | $ | 115,224 |   |   | $ | 3,724 |   |   | $ | 114 |   |   | $ | 118,834 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities held-to-maturity:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       U. S. Government agencies              |   | $ | 21,066 |   |   | $ | 85 |   |   | $ | 13 |   |   | $ | 21,138 |   |
|       State and local political subdivisions |   |   | 5,567 |   |   |   | 155 |   |   |   | - |   |   |   | 5,722 |   |
|                                                                       |   | $ | 26,633 |   |   | $ | 240 |   |   | $ | 13 |   |   | $ | 26,860 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities available-for-sale:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       U. S. Government agencies              |   | $ | 21,541 |   |   | $ | 69 |   |   | $ | 358 |   |   | $ | 21,252 |   |
|       Mortgage-backed securities             |   |   | 38,641 |   |   |   | 1,608 |   |   |   | 26 |   |   |   | 40,223 |   |
|       State and local political subdivisions |   |   | 47,384 |   |   |   | 901 |   |   |   | 300 |   |   |   | 47,985 |   |
|       Other equity securities                |   |   | 4 |   |   |   | 2 |   |   |   | - |   |   |   | 6 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   | $ | 107,570 |   |   | $ | 2,580 |   |   | $ | 684 |   |   | $ | 109,466 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities held-to-maturity:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       U. S. Government agencies              |   | $ | 9,614 |   |   | $ | - |   |   | $ | 371 |   |   | $ | 9,243 |   |
|       State and local political subdivisions |   |   | 5,145 |   |   |   | 393 |   |   |   | - |   |   |   | 5,538 |   |
|                                                                       |   | $ | 14,759 |   |   | $ | 393 |   |   | $ | 371 |   |   | $ | 14,781 |   |

----

| Securities                                |   |
|-------------------------------------------|--------|
| Unrealized Losses < and > 12 Months |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-Sale                        |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | Losses < 12 Months |   |   | Losses 12 Months or > |   |   | Total |   |
|                                      |   |   |   |   | Gross |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                                      |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                      |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| September 30, 2010                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Government                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    agencies                |   | $ | 2,077 |   |   | $ | 5 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,077 |   |   | $ | 5 |   |
| Mortgage-backed                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    securities              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| State and local political                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subdivisions            |   |   | 5,571 |   |   |   | 63 |   |   |   | 834 |   |   |   | 46 |   |   |   | 6,405 |   |   |   | 109 |   |
| Other equity securities                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | $ | 7,648 |   |   | $ | 68 |   |   | $ | 834 |   |   | $ | 46 |   |   | $ | 8,482 |   |   | $ | 114 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Government                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    agencies                |   | $ | 17,186 |   |   | $ | 358 |   |   | $ | - |   |   | $ | - |   |   | $ | 17,186 |   |   | $ | 358 |   |
| Mortgage-backed                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    securities              |   |   | 3,760 |   |   |   | 26 |   |   |   | - |   |   |   | - |   |   |   | 3,760 |   |   |   | 26 |   |
| State and local political                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subdivisions            |   |   | 11,734 |   |   |   | 235 |   |   |   | 436 |   |   |   | 65 |   |   |   | 12,170 |   |   |   | 300 |   |
| Other equity securities                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | $ | 32,680 |   |   | $ | 619 |   |   | $ | 436 |   |   | $ | 65 |   |   | $ | 33,116 |   |   | $ | 684 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-Maturity                          |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | Losses < 12 Months |   |   | Losses 12 Months or > |   |   | Total |   |
|                                      |   |   |   |   |   | Gross |   |   |   |   |   |   | Gross |   |   |   |   |   |   | Gross |   |
|                                      |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                      |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| September 30, 2010                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Government                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    agencies                |   | $ | 2,120 |   |   | $ | 13 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,120 |   |   | $ | 13 |   |
| State and local political                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subdivisions            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |
|                                      |   | $ | 2,120 |   |   | $ | 13 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,120 |   |   | $ | 13 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Government                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    agencies                |   | $ | 9,243 |   |   | $ | 371 |   |   | $ | - |   |   | $ | - |   |   | $ | 9,243 |   |   | $ | 371 |   |
| State and local political                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subdivisions            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                      |   | $ | 9,243 |   |   | $ | 371 |   |   | $ | - |   |   | $ | - |   |   | $ | 9,243 |   |   | $ | 371 |   |

----

| Loans                                           |   |
|-------------------------------------------------|--------|
| Major Classifications                           |   |
|                                            |   |   |   |   |   |   |
| Major classifications of loans were as follows: |   |   |   |   |   |   |
|                                            |   | September 30, |   |   | December 31, |   |
|                                            |   | 2010 |   |   | 2009 |   |
|                                            |   | (In thousands) |   |
|                                            |   |   |   |   |   |   |
| Commercial, financial and agricultural          |   | $ | 37,938 |   |   | $ | 30,580 |   |
| Real estate - construction and development      |   |   | 61,196 |   |   |   | 69,797 |   |
| Real estate - mortgage                          |   |   | 133,928 |   |   |   | 142,917 |   |
| Installment loans to individuals                |   |   | 21,262 |   |   |   | 20,702 |   |
| Other                                           |   |   | 1,389 |   |   |   | 2,615 |   |
|                                            |   |   | 255,713 |   |   |   | 266,611 |   |
| Less allowance for loan losses                  |   |   | (3,708 | ) |   |   | (4,352 | ) |
|                                            |   | $ | 252,005 |   |   | $ | 262,259 |   |
|                                            |   |   |   |   |   |   |   |   |

|   |   |
|--------|--------|

|            |   | For the Three Months Ended |    |
|-----------------|--------|----------------------------|---------|
|            |   | September 30, 2010         |    |
|            |   | Basic income               |    |   |   |   |   |   |   |
|            |   | applicable to              |    |   |   |   |   |   |   |
|            |   | common                     |    |   |   |   |   |   |   |
|            |   | shareholders               |    |   | Shares |   |   | Per Share |   |
|            |   | (Numerator)                |    |   | (Denominator) |   |   | Data |   |
|            |   |                       |    |   |   |   |   |   |   |
| Basic per Share |   | $                          | (1,118  | ) |   |   | 2,883,159 |   |   |   | (0.00 | ) |
|            |   |                       |    |   |   |   |   |   |   |   |   |   |
|            |   | For the Nine Months Ended  |    |
|            |   | September 30, 2010         |    |
|            |   | Basic income               |    |   |   |   |   |   |   |   |   |
|            |   | applicable to              |    |   |   |   |   |   |   |   |   |
|            |   | common                     |    |   |   |   |   |   |   |   |   |
|            |   | shareholders               |    |   | Shares |   |   | Per Share |   |
|            |   | (Numerator)                |    |   | (Denominator) |   |   | Data |   |
|            |   |                       |    |   |   |   |   |   |   |   |   |   |
| Basic per Share |   | $                          | 788,579 |   |   |   | 2,883,159 |   |   | $ | 0.27 |   |

----

|            |   |                       |    |   |          |   |      |      |   |
|-----------------|--------|----------------------------|---------|--------|---------------|--------|-----------|-----------|--------|
|            |   | For the Three Months Ended |    |
|            |   | September 30, 2009         |    |
|            |   | Basic income               |    |   |          |   |      |      |   |
|            |   | applicable to              |    |   |          |   |      |      |   |
|            |   | common                     |    |   |          |   |      |      |   |
|            |   | shareholders               |    |   | Shares        |   |      | Per Share |   |
|            |   | (Numerator)                |    |   | (Denominator) |   |      | Data      |   |
|            |   |                       |    |   |          |   |      |      |   |
| Basic per Share |   | $                          | 312,808 |   |          |   | 2,883,050 |      |   | $ | 0.11 |   |
|            |   |                       |    |   |          |   |      |      |   |   |   |   |
|            |   | For the Nine Months Ended  |    |
|            |   | September 30, 2009         |    |
|            |   | Basic income               |    |   |          |   |      |      |   |   |   |
|            |   | applicable to              |    |   |          |   |      |      |   |   |   |
|            |   | common                     |    |   |          |   |      |      |   |   |   |
|            |   | shareholders               |    |   | Shares        |   |      | Per Share |   |
|            |   | (Numerator)                |    |   | (Denominator) |   |      | Data      |   |
|            |   |                       |    |   |          |   |      |      |   |   |   |   |
| Basic per Share |   | $                          | 656,936 |   |          |   | 2,882,899 |      |   | $ | 0.23 |   |
|            |   |                       |    |   |          |   |      |      |   |   |   |   |

|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level 1 | Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.                                                                                                                                                                                                                                                                     |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Level 2 | Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.                                                                                                                                                                                                                                                                                                                                                                     |

----

| September 30, 2010            |   |      |   |   |        |   |    |         |   |   |     |   |
|-------------------------------|--------|-----------|--------|--------|-------------|--------|---------|--------------|--------|--------|----------|--------|
|                          |   |      |   |   |        |   |    |         |   |   |     |   |
|                          |   | Quoted    |   |   | Models with |   |    | Models with  |   |   | Carrying |   |
|                          |   | market    |   |   | significant |   |    | significant  |   |   | value    |   |
|                          |   | prices in |   |   | observable  |   |    | unobservable |   |   | in the   |   |
|                          |   | active    |   |   | market      |   |    | market       |   |   | Balance  |   |
|                          |   | markets   |   |   | parameters  |   |    | parameters   |   |   | Sheet    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |
|                          |   | Level 1   |   |   | Level 2     |   |    | Level 3      |   |   | Total    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |
| Description                   |   |      |   |   |        |   |    |         |   |   |     |   |
| Available-for-sale securities |   | $         | -      |   |        | $      | 118,834 |         |   | $      | -        |   |   | $ | 118,834 |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
| December 31, 2009             |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
|                          |   | Quoted    |   |   | Models with |   |    | Models with  |   |   | Carrying |   |
|                          |   | market    |   |   | significant |   |    | significant  |   |   | value    |   |
|                          |   | prices in |   |   | observable  |   |    | unobservable |   |   | in the   |   |
|                          |   | active    |   |   | market      |   |    | market       |   |   | Balance  |   |
|                          |   | markets   |   |   | parameters  |   |    | parameters   |   |   | Sheet    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
|                          |   | Level 1   |   |   | Level 2     |   |    | Level 3      |   |   | Total    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
| Description                   |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
| Available-for-sale securities |   | $         | -      |   |        | $      | 109,466 |         |   | $      | -        |   |   | $ | 109,466 |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |

----

----

| September 30, 2010      |   |       |   |   |      |   |   |        |   |   |         |   |
|-------------------------|--------|------------|--------|--------|-----------|--------|--------|-------------|--------|--------|--------------|--------|
|                    |   |       |   |   |      |   |   |        |   |   |         |   |
|                    |   | Carrying   |   |   | Quoted    |   |   | Models with |   |   | Models with  |   |
|                    |   | value      |   |   | market    |   |   | significant |   |   | significant  |   |
|                    |   | in the     |   |   | prices in |   |   | observable  |   |   | unobservable |   |
|                    |   | Balance    |   |   | active    |   |   | market      |   |   | market       |   |
|                    |   | Sheet      |   |   | markets   |   |   | parameters  |   |   | parameters   |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |
|                    |   | Fair Value |   |   | Level 1   |   |   | Level 2     |   |   | Level 3      |   |
| Impaired Loans          |   | $          | 15,192 |   |      | $      | -      |        |   | $      | -            |   |   | $ | 15,192 |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
| Other real estate owned |   |       | 15,597 |   |      |   | -      |        |   |   | -            |   |   |   | 15,597 |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
| December 31, 2009       |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
|                    |   | Carrying   |   |   | Quoted    |   |   | Models with |   |   | Models with  |   |
|                    |   | value      |   |   | market    |   |   | significant |   |   | significant  |   |
|                    |   | in the     |   |   | prices in |   |   | observable  |   |   | unobservable |   |
|                    |   | Balance    |   |   | active    |   |   | market      |   |   | market       |   |
|                    |   | Sheet      |   |   | markets   |   |   | parameters  |   |   | parameters   |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
|                    |   | Fair Value |   |   | Level 1   |   |   | Level 2     |   |   | Level 3      |   |
| Impaired Loans          |   | $          | 17,808 |   |      | $      | -      |        |   | $      | -            |   |   | $ | 17,808 |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
| Other real estate owned |   |       | 11,664 |   |      |   | -      |        |   |   | -            |   |   |   | 11,664 |   |

----

| Fair Value of Financial Instruments             |   |
|-------------------------------------------------|--------|
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | September 30, 2010 |   |   | December 31, 2009 |   |
|                                            |   | Carrying |   |   | Estimated |   |   | Carrying |   |   | Estimated |   |
|                                            |   | Amount |   |   | Fair Value |   |   | Amount |   |   | Fair Value |   |
|                                            |   | (In thousands) |   |   | (In thousands) |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial assets:                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cash and cash equivalents     |   | $ | 20,318 |   |   | $ | 20,318 |   |   | $ | 17,045 |   |   | $ | 17,045 |   |
|    Federal funds sold            |   |   | 37,270 |   |   |   | 37,269 |   |   |   | 20,550 |   |   |   | 20,550 |   |
|    Certificates of deposit with  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       other banks |   |   | 578 |   |   |   | 578 |   |   |   | 296 |   |   |   | 296 |   |
|    Securities available-for-sale |   |   | 118,834 |   |   |   | 118,834 |   |   |   | 109,466 |   |   |   | 109,466 |   |
|    Securities held-to-maturity   |   |   | 26,633 |   |   |   | 26,860 |   |   |   | 14,759 |   |   |   | 14,781 |   |
|    Securities, other             |   |   | 2,227 |   |   |   | 2,227 |   |   |   | 2,223 |   |   |   | 2,223 |   |
|    Loans                         |   |   | 255,713 |   |   |   | 259,157 |   |   |   | 266,611 |   |   |   | 269,134 |   |
| Financial liabilities:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing deposits  |   |   | 71,028 |   |   |   | 68,517 |   |   |   | 61,673 |   |   |   | 61,673 |   |
|    Interest-bearing deposits     |   |   | 341,371 |   |   |   | 329,305 |   |   |   | 321,827 |   |   |   | 295,271 |   |
|    FHLB and other borrowings     |   |   | 26,552 |   |   |   | 28,751 |   |   |   | 28,912 |   |   |   | 31,206 |   |

----

|                                     |   |      |   |   |     |   |   |     |   |   |     |   |
|------------------------------------------|--------|-----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                                     |   | Sept. 30, |   |   | Jun. 30, |   |   | Mar. 31, |   |   | Dec. 31, |   |
|                                     |   | 2010      |   |   | 2010     |   |   | 2010     |   |   | 2009     |   |
| Loans on non-accrual status              |   | $         | 12,268 |   |     | $      | 13,169 |     |   | $      | 15,320   |   |   | $ | 15,244 |   |
| Loans past due 90 days or more but       |   |      |   |   |     |   |   |     |   |   |     |   |   |   |   |   |
|    not non-accrual status |   |      | 27     |   |     |   | 104    |     |   |   | 313      |   |   |   | 12 |   |
| OREO - non-performing                    |   |      | 17,187 |   |     |   | 15,853 |     |   |   | 15,987   |   |   |   | 17,345 |   |
| Total NPAs                               |   | $         | 29,482 |   |     | $      | 29,126 |     |   | $      | 31,620   |   |   | $ | 32,601 |   |
|                                     |   |      |   |   |     |   |   |     |   |   |     |   |   |   |   |   |
| Operating commercial real                |   |      |   |   |     |   |   |     |   |   |     |   |   |   |   |   |
|    estate OREO            |   | $         | 3,450  |   |     | $      | 3,536  |     |   | $      | 3,487    |   |   | $ | 3,425 |   |
| OREO - non-performing                    |   |      | 16,691 |   |     |   | 15,853 |     |   |   | 15,987   |   |   |   | 17,345 |   |
| Total OREO                               |   | $         | 20,141 |   |     | $      | 19,389 |     |   | $      | 19,474   |   |   | $ | 20,770 |   |
|                                     |   |      |   |   |     |   |   |     |   |   |     |   |   |   |   |   |
| Selected ratios:                         |   |      |   |   |     |   |   |     |   |   |     |   |   |   |   |   |
| NPLs to total gross loans                |   |      | 4.808  |   |     |   | 5.088  |     |   |   | 5.926    |   |   |   | 5.722 |   |
| NPAs to total gross loans and OREO       |   |      | 10.688 |   |     |   | 10.392 |     |   |   | 11.163   |   |   |   | 11.344 |   |
| NPAs to total assets                     |   |      | 5.651  |   |     |   | 5.503  |     |   |   | 6.025    |   |   |   | 6.635 |   |

| ITEM NO. 2 | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|------------|---------------------------------------------------------------------------------------------|

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|                                        | (in thousands)        |
|---------------------------------------------|-----------------------|
| Past due 30 days through 89 days            | $7,512                |
| Past due 90 days or more and still accruing |  $  27 |

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|                     | Company | Bank   |         |
|--------------------------|---------|--------|--------------|
| Risk-Based Capital Ratio | Ratio   | Ratio  | Requirements |
| Total Capital            | 22.38%  | 18.21% | 8%           |
| Tier 1 Capital           | 21.23%  | 17.01% | 4%           |
| Leverage Capital         | 13.31%  | 10.48% | 4%           |
|                     |    |   |         |

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| ITEM NO. 3 | QUANTITIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK |
|------------|---------------------------------------------------------|

| ITEM NO. 4 | CONTROLS AND PROCEDURES |
|------------|-------------------------|

| PART II-- | OTHER INFORMATION |
|-----------|-------------------|

| ITEM 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

|   | ITEM NO. 1A     RISK FACTORS |
|--------|-------------------------------------------------------|

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| ITEM 2. | CHANGES IN SECURITIES |
|---------|-----------------------|

| ITEM 3. | DEFAULT UPON SENIOR SECURITIES |
|---------|--------------------------------|

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
|---------|-----------------------------------------------------|

| ITEM 5. | OTHER INFORMATION |
|---------|-------------------|

| ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K |
|---------|----------------------------------|

|   | (a) | Exhibits |
|--------|-----|----------|

|   | (b) | The Company filed a Form 8-K on September 29, 2010 (filing date of October 5, 2010) to report the Treasury’s exchange of the  of 17,910 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series UST and Series UST/W, issued under the Troubled Asset Relief Program Capital Purchase Program (the “TARP CPP”) for 17,910 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series CD, issued under the TARP Community Development Capital Initiative (the “TARP CDCI)..  The annual dividend rate for the Series UST and Series UST/W was 5% and 9%, respectively.  The annual dividend rate for the Series CD is 2%. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| BY /s/ Frank West                     | BY /s/ Connie Woods Hawkins       |
|---------------------------------------|-----------------------------------|
| Frank West                            | Connie Woods Hawkins              |
| President and Chief Executive Officer | Executive Vice-President, Cashier |
|                                  | and Chief Financial Officer       |
|                                  |                              |
|                                  |                              |
|                                  |                              |
| DATE: November 8, 2010                | DATE:  November 8, 2010 |

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