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|   | Title of each class        | Name of exchange on which registered |   |
|--------|----------------------------|--------------------------------------|--------|
|   | Common Stock, no par value | The NASDAQ Stock Market LLC          |   |
|   |                       | (NASDAQ Global Select Market)        |   |

| Document | Parts into which incorporated |
|----------|-------------------------------|
|     |                          |
| None     | N/A                           |

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TA

| Item                                                   | Page                                                                                                               |
|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                                                   |                                                                                                               |   |
| Cautionary Notice Regarding Forward-Looking Statements | 3                                                                                                                  |
|                                                   |                                                                                                               |   |
| PART I                                                 |                                                                                                               |
| 1.                                                     | BUSINESS                                                                                                           |   |
|                                                   | General                                                                                                            | 3 |
|                                                   | Supervision and Regulation                                                                                         | 7 |
| 1A.                                                    | RISK FACTORS                                                                                                       | 13 |
| 1B.                                                    | UNRESOLVED STAFF COMMENTS                                                                                          | 23 |
| 2.                                                     | PROPERTIES                                                                                                         | 23 |
| 3.                                                     | LEGAL PROCEEDINGS                                                                                                  | 23 |
|                                                   |                                                                                                               |   |
| PART II                                                |                                                                                                               |
| 4.                                                     | RESERVED                                                                                                           | 24 |
| 5.                                                     | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |   24 |
| 6.                                                     | SELECTED FINANCIAL DATA                                                                                            | 26 |
| 7.                                                     | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                        |   |
|                                                   | Overview of Key Financial, Strategic and Performance Factors                                                       | 27 |
|                                                   | Statistical Disclosures                                                                                            | 32 |
|                                                   | Liquidity and Capital Resources                                                                                    | 45 |
|                                                   | Results of Operations                                                                                              | 48 |
| 7A.                                                    | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                         | 52 |
| 8.                                                     | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                        |   |
|                                                   | Quarterly Financial Summary for 2009 and 2008                                                                      | 54 |
|                                                   | Management’s Report On Internal Control Over Financial Reporting                                             | 55 |
|                                                   | Auditor’s Attestation Report                                                                                 | 56 |
|                                                   | Reports of Independent Registered Public Accounting Firm                                                           | 58 |
|                                                   | Consolidated Balance Sheets at December 31, 2009 and 2008                                                          | 59 |
|                                                   | Consolidated Statements of Income (Loss) for the Three Years Ended December 31, 2009                               | 60 |
|                                                   | Consolidated Statements of Comprehensive Income (Loss) for the Three Years Ended December 31, 2009                 | 61 |
|                                                   | Consolidated Statements of Stockholders’ Equity for the Three Years Ended December 31, 2009                  | 62 |
|                                                   | Consolidated Statements of Cash Flows for the Three Years Ended December 31, 2009                                  | 63 |
|                                                   | Notes to Consolidated Financial Statements                                                                         | 65 |
| 9.                                                     | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                               | 105 |
| 9A.                                                    | CONTROLS AND PROCEDURES                                                                                            | 105 |
| 9B.                                                    | OTHER INFORMATION                                                                                                  | 106 |
|                                                   |                                                                                                               |   |
| PART III                                               |                                                                                                               |
| 10.                                                    | DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                          | 106 |
| 11.                                                    | EXECUTIVE COMPENSATION                                                                                             | 113 |
| 12.                                                    | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                     |   128 |
| 13.                                                    | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                          | 130 |
| 14.                                                    | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                             | 131 |
|                                                   |                                                                                                               |   |
| PART IV                                                |                                                                                                               |
| 15.                                                    | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                                         | 132 |
|                                                   |                                                                                                               |   |
| SIGNATURES                                             | 135                                                                                                                |

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| Market/          |   | Number of |   |   | Total  |    |   | Total     |   |    | Market     |   |   |        |   |   | Population  |    |   | Employment  |   |   | Unemployment |   |
|------------------|--------|-----------|--------|--------|--------|---------|--------|-----------|--------|---------|------------|--------|--------|-------------|--------|--------|-------------|---------|--------|-------------|--------|--------|--------------|--------|
| County           |   | Offices   |   |   | Loans1 |    |   | Deposits1 |   |    | Share (%)2 |   |   | Population3 |   |   | Growth (%)4 |    |   | Growth (%)5 |   |   | Rate (%)6    |   |
|             |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   |   |         |   |
| South Georgia    |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   |   |         |   |
| Lowndes          |   | 4         |   |   | $      | 239,918 |   |      | $      | 244,465 |       |   |   | 20.32       |   |   |        | 104,583 |   |        |   | 13.5   |         |   |   | -3.4 |   |   |   | 8.2 |   |
| Cook7            |   | 1         |   |   |   | 11,688  |   |      |   | 49,558  |       |   |   | 26.04       |   |   |        | 16,608  |   |        |   | 5.3    |         |   |   | -3.3 |   |   |   | 12.0 |   |
| Decatur          |   | 3         |   |   |   | 38,295  |   |      |   | 114,200 |       |   |   | 29.64       |   |   |        | 28,823  |   |        |   | 2.1    |         |   |   | -2.3 |   |   |   | 12.7 |   |
| Grady            |   | 1         |   |   |   | 11,423  |   |      |   | 20,287  |       |   |   | 8.48        |   |   |        | 25,115  |   |        |   | 6.2    |         |   |   | -2.6 |   |   |   | 9.8 |   |
| Appling7         |   | 1         |   |   |   | 13,200  |   |      |   | 37,771  |       |   |   | 15.39       |   |   |        | 18,038  |   |        |   | 3.6    |         |   |   | 2.0 |   |   |   | 10.3 |   |
| Jeff Davis7      |   | 1         |   |   |   | 8,966   |   |      |   | 47,874  |       |   |   | 29.14       |   |   |        | 13,486  |   |        |   | 6.3    |         |   |   | -4.2 |   |   |   | 14.2 |   |
| Bulloch7         |   | 2         |   |   |   | 32,737  |   |      |   | 50,515  |       |   |   | 4.87        |   |   |        | 67,761  |   |        |   | 21.0   |         |   |   | -2.1 |   |   |   | 9.2 |   |
|             |   | 13        |   |   | $      | 356,227 |   |      | $      | 564,670 |       |   |   |        |   |   |        |    |   |        |   |   |         |   |   |   |   |   |   |   |   |
| North Georgia    |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   |   |         |   |   |   |   |   |   |   |   |
| Henry            |   | 2         |   |   | $      | 161,750 |   |      | $      | 65,780  |       |   |   | 3.47        |   |   |        | 191,502 |   |        |   | 60.5   |         |   |   | -6.7 |   |   |   | 10.3 |   |
| Hall             |   | 1         |   |   |   | 138,732 |   |      |   | 39,084  |       |   |   | 1.62        |   |   |        | 184,814 |   |        |   | 32.7   |         |   |   | -5.5 |   |   |   | 9.2 |   |
| Oconee           |   | 1         |   |   |   | 41,926  |   |      |   | 15,515  |       |   |   | 1.97        |   |   |        | 32,221  |   |        |   | 22.9   |         |   |   | -2.8 |   |   |   | 6.2 |   |
|             |   | 4         |   |   | $      | 342,408 |   |      | $      | 120,379 |       |   |   |        |   |   |        |    |   |        |   |   |         |   |   |   |   |   |   |   |   |
| State of Georgia |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   | 20.1   |         |   |   | -5.5 |   |   |   | 10.3 |   |
|             |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   |   |         |   |   |   |   |   |   |   |   |
| Florida          |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   |   |         |   |   |   |   |   |   |   |   |
| Marion           |   | 1         |   |   | $      | 71,407  |   |      | $      | 174,221 |       |   |   | 3.36        |   |   |        | 329,628 |   |        |   | 27.3   |         |   |   | -4.7 |   |   |   | 13.0 |   |
| State of Florida |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   | 16.0   |         |   |   | -4.6 |   |   |   | 11.1 |   |
| National Total   |   |      |   |   |   |    |   |      |   |    |       |   |   |        |   |   |        |    |   |        |   | 9.1    |         |   |   | -3.7 |   |   |   | 9.6 |   |

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| 1 | Dollar amounts are presented in thousands as of December 31, 2009.  Amounts exclude $35.3 million in loans and $185.9 million in deposits assigned to the “Treasury” that are not allocated to any particular market (i.e. participation loans, employee and director accounts, brokered deposits, official checks, etc.). |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Based on the FDIC/OTS Summary of Deposits report as of June 30, 2009. |
|---|-----------------------------------------------------------------------|

| 3 | Estimated July 1, 2008 population provided by the U.S. Census Bureau. |
|---|-----------------------------------------------------------------------|

| 4 | Estimated percentage population change from 2000 to 2008 for counties and change from 2000 to 2009 for states and national totals provided by the U.S. Census Bureau. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Total employment growth (not seasonally adjusted) for the Third Quarter 2009 Year-To-Date percentage change from the prior year’s Year-To-Date data provided by the Bureau of Labor Statistics Household Survey. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Unemployment rate (not seasonally adjusted) for the Third Quarter 2009 provided by the Bureau of Labor Statistics. |
|---|--------------------------------------------------------------------------------------------------------------------|

| 7 | We entered into a Purchase and Assumption Agreement on February 23, 2010 to sell our branches in these markets. |
|---|-----------------------------------------------------------------------------------------------------------------|

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|   | · | How, when and where we may expand geographically; |
|--------|--------|---------------------------------------------------|

|   | · | Into what product or service market we may enter; |
|--------|--------|---------------------------------------------------|

|   | · | How we must manage our assets; and |
|--------|--------|------------------------------------|

|   | · | Under what circumstances money may or must flow between the parent bank holding company and the subsidiary bank. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

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|   | · | may restrict the ability of a bank or financial services holding company from paying dividends on any class of capital stock or any other Tier 1 capital instrument if the holding company is not deemed to have a strong capital position, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | states that a holding company should reduce or eliminate dividends when |
|--------|--------|-------------------------------------------------------------------------|

|   | · | the holding company’s net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the holding company’s prospective rate of earnings retention is not consistent with the holding company’s capital needs and overall current and prospective financial condition; or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the holding company will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | requires that a holding company must inform the Federal Reserve in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the organization’s capital structure. Declaring or paying a dividend in either circumstance could raise supervisory concerns. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act (“EESA”), under which the U.S. Treasury Department has the authority, among other things, to purchase up to $700 billion of mortgages, mortgage-backed securities and certain other financial instruments from financial institutions under the Troubled Asset Relief Program for the purpose of stabilizing and providing liquidity to the U.S. financial markets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | On October 14, 2008, the Treasury Department announced the Capital Purchase Plan under the EESA pursuant to which it would purchase senior preferred stock and warrants to purchase common stock from participating financial institutions. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On November 21, 2008, the FDIC adopted a Final Rule with respect to its Temporary Liquidity Guarantee Program pursuant to which the FDIC will guarantee certain “newly-issued unsecured debt” of banks and certain holding companies and also guarantee, on an unlimited basis, non-interest bearing bank transaction accounts. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On February 10, 2009, the Treasury Department announced the Financial Stability Plan under the EESA, which is intended to further stabilize financial institutions and stimulate lending across a broad range of economic sectors. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On February 18, 2009, President Obama signed the American Recovery and Reinvestment Act, a broad economic stimulus package that included additional restrictions on, and potential additional regulation of, financial institutions. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On March 18, 2009, the Federal Reserve announced its decision to purchase as much as $300 billion of long-term treasuries in an effort to maintain low interest rates. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On March 23, 2009, the Treasury Department announced the Public-Private Investment Program, which will purchase real estate related loans from banks and securities from the broader markets, and is intended to create a market for those distressed debt and securities. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Federal Reserve’s proposed guidance on incentive compensation policies at banking organizations; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | proposals to limit a lender’s ability to foreclose on mortgages or make such foreclosures less economically viable, including by allowing Chapter 13 bankruptcy plans to “cram down” the value of certain mortgages on a consumer’s principal residence to its market value and/or reset interest rates and monthly payments to permit defaulting debtors to remain in their home; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | accelerating the effective date of various provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009, which restrict certain credit and charge card practices, require expanded disclosures to consumers and provide consumers with the right to opt out of interest rate increases (with limited exceptions). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | actual or anticipated variations in earnings; |
|--------|--------|-----------------------------------------------|

|   | · | changes in analysts’ recommendations or projections; |
|--------|--------|------------------------------------------------------------|

|   | · | our announcements of developments related to our businesses; |
|--------|--------|--------------------------------------------------------------|

|   | · | operating and stock performance of other companies deemed to be peers; |
|--------|--------|------------------------------------------------------------------------|

|   | · | actions by government regulators; |
|--------|--------|-----------------------------------|

|   | · | new technology used or services offered by traditional and non-traditional competitors; and |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | news reports of trends, concerns and other issues related to the financial services industry. |
|--------|--------|-----------------------------------------------------------------------------------------------|

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| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|--------------------------------------------------------------------------------------------------------------------|

|            |   | Sales Price |   |   |   |   |   |      |   |
|-----------------|--------|-------------|--------|--------|--------|--------|--------|-----------|--------|
| Calendar Period |   | High        |   |   | Low    |   |   | Dividends |   |   | Earnings |   |
| 2008            |   |        |   |   |   |   |   |      |   |   |   |   |
| First Quarter   |   | $           | 14.02  |   |   | $      | 11.59  |      |   | $ | 0.142 |   |   | $ | 0.14 |   |
| Second Quarter  |   |        | 14.40  |   |   |   | 8.33   |      |   |   | 0.093 | * |   |   | 0.15 |   |
| Third Quarter   |   |        | 9.02   |   |   |   | 6.66   |      |   |   | - |   |   |   | (0.32 | ) |
| Fourth Quarter  |   |        | 6.95   |   |   |   | 3.87   |      |   |   | - |   |   |   | (0.60 | ) |
| 2009            |   |        |   |   |   |   |   |      |   |   |   |   |   |   |   |   |
| First Quarter   |   | $           | 4.90   |   |   | $      | 1.98   |      |   | $ | - |   |   | $ | (0.03 | ) |
| Second Quarter  |   |        | 4.20   |   |   |   | 2.51   |      |   |   | - |   |   |   | 0.04 |   |
| Third Quarter   |   |        | 3.69   |   |   |   | 2.45   |      |   |   | - |   |   |   | (1.93 | ) |
| Fourth Quarter  |   |        | 3.35   |   |   |   | 1.09   |      |   |   | - |   |   |   | (2.27 | ) |

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| Period Ending            |
|--------------------------|
| Index                    | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 |
| PAB Bankshares, Inc.     | 100.00 | 143.43 | 172.21 | 104.13 | 38.35 | 19.18 |
| NASDAQ Composite Index   | 100.00 | 101.37 | 111.03 | 121.92 | 72.49 | 104.31 |
| SNL Southeast Bank Index | 100.00 | 102.36 | 120.03 | 90.42 | 36.60 | 36.75 |

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| (In thousands, except per share and other data)   |   | 2009   |       |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |      |
|---------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| Summary of Operations:                            |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |
| Interest income                                   |   | $      | 59,881     |   |   | $      | 70,984    |   |   | $      | 84,676    |   |   | $      | 77,566    |   |   | $ | 59,371 |   |
| Interest expense                                  |   |   | 31,571     |   |   |   | 36,218    |   |   |   | 42,210    |   |   |   | 33,555    |   |   |   | 20,398 |   |
| Net interest income                               |   |   | 28,310     |   |   |   | 34,766    |   |   |   | 42,466    |   |   |   | 44,011    |   |   |   | 38,973 |   |
| Provision for loan losses                         |   |   | 51,188     |   |   |   | 18,050    |   |   |   | 2,400     |   |   |   | -         |   |   |   | 1,189 |   |
| Other income                                      |   |   | 4,535      |   |   |   | 4,403     |   |   |   | 5,991     |   |   |   | 5,380     |   |   |   | 5,813 |   |
| Other expense                                     |   |   | 40,573     |   |   |   | 30,584    |   |   |   | 29,590    |   |   |   | 28,167    |   |   |   | 24,778 |   |
| Income before income tax expense                  |   |   | (58,916    | )      |   |   | (9,465    | )      |   |   | 16,467    |   |   |   | 21,224    |   |   |   | 18,819 |   |
| Income tax expense                                |   |   | (7,744     | )      |   |   | (3,554    | )      |   |   | 5,681     |   |   |   | 7,488     |   |   |   | 6,366 |   |
| Net income                                        |   | $      | (51,172    | )      |   | $      | (5,911    | )      |   | $      | 10,786    |   |   | $      | 13,736    |   |   | $ | 12,453 |   |
| Net interest income on a taxable-equivalent basis |   | $      | 28,634     |   |   | $      | 35,432    |   |   | $      | 43,120    |   |   | $      | 44,507    |   |   | $ | 39,195 |   |
| Selected Average Balances:                        |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total assets                                      |   | $      | 1,307,027  |   |   | $      | 1,238,875 |   |   | $      | 1,165,307 |   |   | $      | 1,067,362 |   |   | $ | 948,457 |   |
| Earning assets                                    |   |   | 1,205,340  |   |   |   | 1,165,625 |   |   |   | 1,096,918 |   |   |   | 1,004,981 |   |   |   | 890,337 |   |
| Loans                                             |   |   | 915,674    |   |   |   | 955,253   |   |   |   | 883,334   |   |   |   | 792,278   |   |   |   | 706,052 |   |
| Deposits                                          |   |   | 1,069,352  |   |   |   | 1,011,596 |   |   |   | 948,613   |   |   |   | 859,216   |   |   |   | 741,409 |   |
| Stockholders’ equity                        |   |   | 89,140     |   |   |   | 96,877    |   |   |   | 98,055    |   |   |   | 91,611    |   |   |   | 85,431 |   |
| Selected Year End Balances:                       |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total assets                                      |   | $      | 1,231,945  |   |   | $      | 1,350,103 |   |   | $      | 1,198,671 |   |   | $      | 1,120,804 |   |   | $ | 1,017,326 |   |
| Earning assets                                    |   |   | 1,095,456  |   |   |   | 1,259,495 |   |   |   | 1,116,776 |   |   |   | 1,048,239 |   |   |   | 957,918 |   |
| Loans                                             |   |   | 805,314    |   |   |   | 956,687   |   |   |   | 921,349   |   |   |   | 820,304   |   |   |   | 752,938 |   |
| Allowance for loan losses                         |   |   | 29,314     |   |   |   | 19,374    |   |   |   | 12,906    |   |   |   | 11,006    |   |   |   | 11,079 |   |
| Deposits                                          |   |   | 1,045,215  |   |   |   | 1,123,703 |   |   |   | 980,149   |   |   |   | 908,483   |   |   |   | 815,681 |   |
| Stockholders’ equity                        |   |   | 50,587     |   |   |   | 91,601    |   |   |   | 97,676    |   |   |   | 95,316    |   |   |   | 87,001 |   |
| Common Share Data:                                |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Outstanding at year end**                         |   |   | 13,795,040 |   |   |   | 9,324,407 |   |   |   | 9,406,956 |   |   |   | 9,688,708 |   |   |   | 9,652,756 |   |
| Weighted average outstanding**                    |   |   | 10,708,466 |   |   |   | 9,335,376 |   |   |   | 9,602,535 |   |   |   | 9,683,173 |   |   |   | 9,698,514 |   |
| Diluted weighted average outstanding**            |   |   | 10,708,466 |   |   |   | 9,335,376 |   |   |   | 9,744,063 |   |   |   | 9,890,728 |   |   |   | 9,870,633 |   |
| Per Share Ratios:                                 |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net income – basic**                        |   | $      | (4.78      | )      |   | $      | (0.63     | )      |   | $      | 1.12      |   |   | $      | 1.42      |   |   | $ | 1.28 |   |
| Net income – diluted**                      |   |   | (4.78      | )      |   |   | (0.63     | )      |   |   | 1.11      |   |   |   | 1.39      |   |   |   | 1.26 |   |
| Dividends declared**                              |   |   | -          |   |   |   | 0.24      |   |   |   | 0.568     |   |   |   | 0.529     |   |   |   | 0.466 |   |
| Book value**                                      |   |   | 3.67       |   |   |   | 9.82      |   |   |   | 10.38     |   |   |   | 9.84      |   |   |   | 9.01 |   |
| Tangible book value**                             |   |   | 3.67       |   |   |   | 9.18      |   |   |   | 9.75      |   |   |   | 9.22      |   |   |   | 8.39 |   |
| Profitability Ratios:                             |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Return on average assets                          |   |   | -3.92      | %      |   |   | -0.48     | %      |   |   | 0.93      | %      |   |   | 1.29      | % |   |   | 1.31 | % |
| Return on average equity                          |   |   | -57.41     | %      |   |   | -6.10     | %      |   |   | 11.00     | %      |   |   | 14.99     | % |   |   | 14.58 | % |
| Net interest margin                               |   |   | 2.38       | %      |   |   | 3.04      | %      |   |   | 3.93      | %      |   |   | 4.43      | % |   |   | 4.40 | % |
| Efficiency ratio                                  |   |   | 112.30     | %      |   |   | 70.01     | %      |   |   | 60.74     | %      |   |   | 55.88     | % |   |   | 54.94 | % |
| Liquidity Ratios:                                 |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total loans to total deposits                     |   |   | 77.05      | %      |   |   | 85.14     | %      |   |   | 94.00     | %      |   |   | 90.29     | % |   |   | 92.31 | % |
| Average loans to average earning assets           |   |   | 75.97      | %      |   |   | 81.95     | %      |   |   | 80.53     | %      |   |   | 78.84     | % |   |   | 79.30 | % |
| Noninterest-bearing deposits to total deposits    |   |   | 9.61       | %      |   |   | 8.11      | %      |   |   | 9.12      | %      |   |   | 11.11     | % |   |   | 13.23 | % |
| Capital Adequacy Ratios:                          |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Average equity to average assets                  |   |   | 6.82       | %      |   |   | 7.82      | %      |   |   | 8.41      | %      |   |   | 8.58      | % |   |   | 9.01 | % |
| Dividend payout ratio                             |   |   | 0.00       | %      |   |   | -37.16    | %      |   |   | 50.43     | %      |   |   | 37.36     | % |   |   | 36.29 | % |
| Asset Quality Ratios:                             |   |   |       |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net charge-offs to average loans                  |   |   | 4.50       | %      |   |   | 1.21      | %      |   |   | 0.06      | %      |   |   | 0.01      | % |   |   | -0.12 | % |
| Nonperforming loans to total loans                |   |   | 11.57      | %      |   |   | 5.79      | %      |   |   | 1.24      | %      |   |   | 0.49      | % |   |   | 1.04 | % |
| Nonperforming assets to total assets              |   |   | 15.04      | %      |   |   | 5.98      | %      |   |   | 1.49      | %      |   |   | 0.45      | % |   |   | 0.78 | % |
| Allowance for loan losses to total loans          |   |   | 3.64       | %      |   |   | 2.03      | %      |   |   | 1.40      | %      |   |   | 1.34      | % |   |   | 1.47 | % |
| Allowance for loan losses to nonperforming loans  |   |   | 31.46      | %      |   |   | 34.96     | %      |   |   | 112.79    | %      |   |   | 271.95    | % |   |   | 140.98 | % |

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Table of Contents

|                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |   | 2006  |   |   | 2005   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------|--------|--------|--------|--------|
| Book value per common share**           |   | $      | 3.67   |   |   | $      | 9.82   |   |   | $      | 10.38 |   |   | $      | 9.84   |   |   | $ | 9.01 |   |
| Effect of intangible assets per share** |   |   | -      |   |   |   | 0.64   |   |   |   | 0.63  |   |   |   | 0.62   |   |   |   | 0.62 |   |
| Tangible book value per common share**  |   | $      | 3.67   |   |   | $      | 9.18   |   |   | $      | 9.75  |   |   | $      | 9.22   |   |   | $ | 8.39 |   |

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

OV

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Table of Contents

|   | · | we raised  $13.4 million in September 2009 in Tier 1 capital through two private placements of preferred stock that immediately converted to common stock; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we restructured our executive management team |
|--------|--------|----------------------------------------------------|

|   | · | we strengthened our credit department through the creation of a Special Assets Group and the recruitment of several senior personnel whose sole focus is the resolution of our problem assets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we improved the identification, tracking and resolution of our problem assets by implementing a robust credit review process and creating an internal accounting system that isolates and tracks all of our nonperforming assets through a virtual "bad bank"; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we entered into a definitive agreement in February 2010 to sell five of our branches in markets that do not fit within our long term strategic plan, a transaction that we expect to be accretive to our earnings and capital position; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we reduced our operational costs by implementing several cost cutting measures over the past 18 months; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | we maintained a strong liquidity position while reducing our reliance on brokered deposits. |
|--------|--------|---------------------------------------------------------------------------------------------|

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Table of Contents

|                                              |   | Twelve months ended    |    |
|---------------------------------------------------|--------|------------------------|---------|
|                                              |   | 12/31/09               |    |   | 12/31/08 |   |   |   | 12/31/07 |   |
|                                              |   | (Dollars In Thousands) |    |
| Net income (loss)                                 |   | $                      | (51,172 | ) |   | $ | (5,911 | ) |   | $ | 10,786 |   |
| Provision for loan losses                         |   |                   | 51,188  |   |   |   | 18,050 |   |   |   | 2,400 |   |
| Loss (gain) on sale and writedown of other assets |   |                   | 5,015   |   |   |   | 1,853 |   |   |   | (81 | ) |
| Carrying charges related to nonperforming assets  |   |                   | 3,291   |   |   |   | 956 |   |   |   | 199 |   |
| Lost interest on nonaccrual loans                 |   |                   | 5,951   |   |   |   | 3,593 |   |   |   | 753 |   |
| Deposit insurance premiums                        |   |                   | 4,138   |   |   |   | 327 |   |   |   | 108 |   |
| Goodwill impairment                               |   |                   | 5,985   |   |   |   | - |   |   |   | - |   |
| Valuation allowance for deferred tax assets       |   |                   | 11,136  |   |   |   | - |   |   |   | - |   |
| Current income tax expense (benefit)              |   |                   | (18,880 | ) |   |   | (3,554 | ) |   |   | 5,681 |   |
| Earnings from core operations                     |   | $                      | 16,652  |   |   | $ | 15,314 |   |   | $ | 19,846 |   |

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Table of Contents

| Market/          |   | Number of |   |   | Total Loans            |    |   |   |   |    | Total Deposits |   |   |   |   |
|------------------|--------|-----------|--------|--------|------------------------|---------|--------|--------|--------|---------|----------------|--------|--------|--------|--------|
| County           |   | Offices   |   |   | 2009                   |    |   | 2008   |   |    | % Chg          |   |   | 2009   |   |   | 2008 |   |   | % Chg |   |
|             |   |      |   |   | (Dollars in Thousands) |    |
|             |   |      |   |   |                   |    |   |   |   |    |           |   |   |   |   |   |   |   |   |   |   |
| South Georgia    |   | 13        |   |   | $                      | 356,227 |   |   | $      | 389,085 |           |   |   | (8.4   | )      |   | $ | 564,670 |   |   | $ | 632,901 |   |   |   | (10.8 | ) |
| Percent of Total |   |      |   |   |                   | 44.2    |   |   |   | 40.7    |           |   |   |   |   |   |   | 54.0 |   |   |   | 56.3 |   |   |   |   |   |
|             |   |      |   |   |                   |    |   |   |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North Georgia    |   | 5         |   |   | $                      | 342,408 |   |   | $      | 440,500 |           |   |   | (22.3  | )      |   | $ | 120,379 |   |   | $ | 121,058 |   |   |   | (0.6 | ) |
| Percent of Total |   |      |   |   |                   | 42.5    |   |   |   | 46.0    |           |   |   |   |   |   |   | 11.5 |   |   |   | 10.8 |   |   |   |   |   |
|             |   |      |   |   |                   |    |   |   |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Florida          |   | 2         |   |   | $                      | 71,407  |   |   | $      | 101,442 |           |   |   | (29.6  | )      |   | $ | 174,221 |   |   | $ | 159,190 |   |   |   | 9.4 |   |
| Percent of Total |   |      |   |   |                   | 8.9     |   |   |   | 10.6    |           |   |   |   |   |   |   | 16.7 |   |   |   | 14.2 |   |   |   |   |   |
|             |   |      |   |   |                   |    |   |   |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury         |   | -         |   |   | $                      | 35,272  |   |   | $      | 25,661  |           |   |   | 37.5   |   |   | $ | 185,945 |   |   | $ | 210,554 |   |   |   | (11.7 | ) |
| Percent of Total |   |      |   |   |                   | 4.4     |   |   |   | 2.7     |           |   |   |   |   |   |   | 17.8 |   |   |   | 18.7 |   |   |   |   |   |
|             |   |      |   |   |                   |    |   |   |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total            |   |      |   |   | $                      | 805,314 |   |   | $      | 956,688 |           |   |   | (15.8  | )      |   | $ | 1,045,215 |   |   | $ | 1,123,703 |   |   |   | (7.0 | ) |

|                                               |   | 2009                   |      |   | 2008   |   |      | Percentage Change |   |
|----------------------------------------------------|--------|------------------------|-----------|--------|--------|--------|-----------|-------------------|--------|
|                                               |   | (Dollars in Thousands) |      |
| Loans                                              |   |                   |      |   |   |   |      |              |   |
| Commercial and financial                           |   | $                      | 84,771    |   |   | $      | 87,530    |              |   |   | (3.2 | ) |
| Agricultural (including loans secured by farmland) |   |                   | 40,215    |   |   |   | 48,647    |              |   |   | (17.3 | ) |
| Real estate - construction and development         |   |                   | 204,663   |   |   |   | 315,786   |              |   |   | (35.2 | ) |
| Real estate – commercial                     |   |                   | 275,927   |   |   |   | 276,645   |              |   |   | (0.3 | ) |
| Real estate – residential                    |   |                   | 174,879   |   |   |   | 196,306   |              |   |   | (10.9 | ) |
| Installment loans to individuals and others        |   |                   | 24,949    |   |   |   | 32,084    |              |   |   | (22.2 | ) |
|                                               |   |                   | 805,404   |   |   |   | 956,998   |              |   |   | (15.8 | ) |
| Deferred loan fees and unearned interest, net      |   |                   | (90       | )      |   |   | (310      | )                 |   |   | (71.0 | ) |
| Total loans                                        |   |                   | 805,314   |   |   |   | 956,688   |              |   |   | (15.8 | ) |
| Allowance for loan losses                          |   |                   | (29,314   | )      |   |   | (19,374   | )                 |   |   | 51.3 |   |
| Net loans                                          |   | $                      | 776,000   |   |   | $      | 937,314   |              |   |   | (17.2 | ) |
|                                               |   |                   |      |   |   |   |      |              |   |   |   |   |
| Deposits                                           |   |                   |      |   |   |   |      |              |   |   |   |   |
| Noninterest-bearing demand                         |   | $                      | 100,458   |   |   | $      | 91,114    |              |   |   | 10.3 |   |
| Interest-bearing demand and savings                |   |                   | 250,232   |   |   |   | 252,122   |              |   |   | (0.7 | ) |
| Time less than $100,000                            |   |                   | 314,148   |   |   |   | 328,329   |              |   |   | (4.3 | ) |
| Time greater than or equal to $100,000             |   |                   | 217,833   |   |   |   | 198,845   |              |   |   | 9.5 |   |
| Retail time placed in CDARS program                |   |                   | 29,532    |   |   |   | 46,690    |              |   |   | (36.7 | ) |
| Brokered                                           |   |                   | 133,012   |   |   |   | 206,603   |              |   |   | (35.6 | ) |
| Total deposits                                     |   | $                      | 1,045,215 |   |   | $      | 1,123,703 |              |   |   | (7.0 | ) |

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Table of Contents

| For the Quarter Ended            | Dec-09 | Dec-08 | Dec-07 | Dec-06 |
|----------------------------------|--------|--------|--------|--------|
| (Number of Months Supply)        |
| Housing Inventory:               |   |
| Henry County                     | 9.4    | 14.0   | 11.5   | 9.1    |
| Clayton County                   | 9.1    | 15.1   | 9.5    | 12.2   |
| Newton County                    | 10.7   | 14.5   | 11.1   | 7.4    |
| South Fulton County              | 10.4   | 9.5    | 8.0    | 7.8    |
|                             |   |   |   |   |
| Vacant Developed Lots Inventory: |   |   |   |   |
| Henry County                     | 300.1  | 291.0  | 86.0   | 27.0   |
| Clayton County                   | 304.4  | 169.0  | 53.0   | 26.0   |
| Newton County                    | 620.5  | 326.0  | 64.0   | 24.0   |
| South Fulton County              | 291.8  | 126.0  | 57.0   | 23.0   |

| For the Year Ended                               | Dec-09 | Dec-08 | Dec-07 | Dec-06 |
|--------------------------------------------------|--------|--------|--------|--------|
| (Number of Single Family Housing Permits Issued) |
| Housing Permits:                                 |   |
| Henry County                                     | 243    | 492    | 1,650  | 2,992  |
| Clayton County                                   | 84     | 403    | 1,238  | 2,226  |
| Newton County                                    | 54     | 188    | 952    | 1,678  |

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ST

| For the Years Ended December 31,                                  |   | 2009 vs. 2008          |    |   | 2008 vs. 2007  |   |
|-------------------------------------------------------------------|--------|------------------------|---------|--------|----------------|--------|
|                                                              |   | Increase               |    |   | Changes Due To |   |   | Increase |   |   | Changes Due To |   |
|                                                              |   | (Decrease)             |    |   | Rate           |   |   | Volume |   |   | (Decrease) |   |   | Rate |   |   | Volume |   |
|                                                              |   | (Dollars In Thousands) |    |
| Increase (decrease) in income from interest-earning assets:       |   |                   |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                             |   | $                      | (9,379  | )      |           | $      | (6,823 | ) |   | $ | (2,556 | ) |   | $ | (12,374 | ) |   | $ | (18,404 | ) |   | $ | 6,030 |   |
| Taxable investment securities                                     |   |                   | (1,056  | )      |           |   | (763 | ) |   |   | (293 | ) |   |   | (532 | ) |   |   | 105 |   |   |   | (637 | ) |
| Nontaxable investment securities                                  |   |                   | (994    | )      |           |   | 33 |   |   |   | (1,027 | ) |   |   | 93 |   |   |   | (5 | ) |   |   | 98 |   |
| Other short-term investments                                      |   |                   | (2      | )      |           |   | (1,084 | ) |   |   | 1,082 |   |   |   | (865 | ) |   |   | (1,255 | ) |   |   | 390 |   |
| Total interest income                                             |   |                   | (11,431 | )      |           |   | (8,637 | ) |   |   | (2,794 | ) |   |   | (13,678 | ) |   |   | (19,559 | ) |   |   | 5,881 |   |
|                                                              |   |                   |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in expense from interest-bearing liabilities: |   |                   |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                   |   |                   | (4,048  | )      |           |   | (2,878 | ) |   |   | (1,170 | ) |   |   | (5,811 | ) |   |   | (4,469 | ) |   |   | (1,342 | ) |
| Savings deposits                                                  |   |                   | (115    | )      |           |   | (118 | ) |   |   | 3 |   |   |   | (360 | ) |   |   | (332 | ) |   |   | (28 | ) |
| Time deposits                                                     |   |                   | (858    | )      |           |   | (5,396 | ) |   |   | 4,538 |   |   |   | 598 |   |   |   | (4,569 | ) |   |   | 5,167 |   |
| FHLB advances                                                     |   |                   | 195     |   |           |   | 139 |   |   |   | 56 |   |   |   | (113 | ) |   |   | (637 | ) |   |   | 524 |   |
| Notes payable                                                     |   |                   | 424     |   |           |   | (506 | ) |   |   | 930 |   |   |   | (187 | ) |   |   | (187 | ) |   |   | - |   |
| Other short-term borrowings                                       |   |                   | (245    | )      |           |   | (144 | ) |   |   | (101 | ) |   |   | (118 | ) |   |   | (195 | ) |   |   | 77 |   |
| Total interest expense                                            |   |                   | (4,647  | )      |           |   | (8,903 | ) |   |   | 4,256 |   |   |   | (5,991 | ) |   |   | (10,389 | ) |   |   | 4,398 |   |
|                                                              |   |                   |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                               |   | $                      | (6,784  | )      |           | $      | 266 |   |   | $ | (7,050 | ) |   | $ | (7,687 | ) |   | $ | (9,170 | ) |   | $ | 1,483 |   |

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Table of Contents

| For the Years Ended                                       |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |
|-----------------------------------------------------------|--------|------------------------|-----------|--------|----------|--------|--------|---------|--------|--------|---------|--------|--------|----------|-----------|--------|---------|--------|--------|---------|--------|--------|----------|--------|--------|---------|-----------|
| December 31,                                              |   | 2009                   |      |   | 2008     |   |   | 2007    |   |
|                                                      |   |                   |      |   | Interest |   |   | Average |   |   |    |   |   | Interest |      |   | Average |   |   |    |   |   | Interest |   |   | Average |      |
|                                                      |   | Average                |      |   | Income/  |   |   | Yield/  |   |   | Average |   |   | Income/  |      |   | Yield/  |   |   | Average |   |   | Income/  |   |   | Yield/  |      |
|                                                      |   | Balance                |      |   | Expense  |   |   | Rate    |   |   | Balance |   |   | Expense  |      |   | Rate    |   |   | Balance |   |   | Expense  |   |   | Rate    |      |
|                                                      |   | (Dollars In Thousands) |      |
| ASSETS                                                    |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |
| Interest-earning assets:                                  |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |
| Loans                                                     |   | $                      | 915,674   |   |     | $      | 52,307 |    |   |   | 5.71    | %      |   | $        | 955,253   |   |    | $      | 61,686 |    |   |   | 6.46     | %      |   | $       | 883,334   |   |   | $ | 74,060 |   |   |   | 8.38 | % |
| Investment securities:                                    |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Taxable                                                   |   |                   | 141,513   |   |     |   | 6,622  |    |   |   | 4.68    | %      |   |     | 147,125   |   |    |   | 7,679  |    |   |   | 5.22     | %      |   |    | 159,510   |   |   |   | 8,211 |   |   |   | 5.15 | % |
| Nontaxable                                                |   |                   | 15,526    |   |     |   | 952    |    |   |   | 6.14    | %      |   |     | 32,616    |   |    |   | 1,961  |    |   |   | 6.01     | %      |   |    | 30,998    |   |   |   | 1,868 |   |   |   | 6.03 | % |
| Other short-term investments                              |   |                   | 132,627   |   |     |   | 324    |    |   |   | 0.24    | %      |   |     | 30,631    |   |    |   | 326    |    |   |   | 1.06     | %      |   |    | 23,076    |   |   |   | 1,191 |   |   |   | 5.16 | % |
| Total interest-earning assets                             |   |                   | 1,205,340 |   |     |   | 60,205 |    |   |   | 4.99    | %      |   |     | 1,165,625 |   |    |   | 71,652 |    |   |   | 6.15     | %      |   |    | 1,096,918 |   |   |   | 85,330 |   |   |   | 7.78 | % |
|                                                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets:                               |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Cash                                                      |   |                   | 14,760    |   |     |   |   |    |   |   |    |   |   |     | 18,412    |   |    |   |   |    |   |   |     |   |   |    | 20,534    |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                 |   |                   | (24,300   | )      |     |   |   |    |   |   |    |   |   |     | (15,670   | )      |    |   |   |    |   |   |     |   |   |    | (11,264   | ) |   |   |   |   |   |   |   |   |
| Unrealized gain (loss)on securities available for sale    |   |                   | 2,364     |   |     |   |   |    |   |   |    |   |   |     | (323      | )      |    |   |   |    |   |   |     |   |   |    | (1,993    | ) |   |   |   |   |   |   |   |   |
| Other assets                                              |   |                   | 105,863   |   |     |   |   |    |   |   |    |   |   |     | 70,831    |   |    |   |   |    |   |   |     |   |   |    | 61,112    |   |   |   |   |   |   |   |   |   |
| Total assets                                              |   | $                      | 1,304,027 |   |     |   |   |    |   |   |    |   |   | $        | 1,238,875 |   |    |   |   |    |   |   |     |   |   | $       | 1,165,307 |   |   |   |   |   |   |   |   |   |
|                                                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                             |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Demand deposits                                           |   | $                      | 210,874   |   |     | $      | 1,190  |    |   |   | 0.56    | %      |   | $        | 271,498   |   |    | $      | 5,238  |    |   |   | 1.93     | %      |   | $       | 309,037   |   |   | $ | 11,049 |   |   |   | 3.58 | % |
| Savings deposits                                          |   |                   | 35,846    |   |     |   | 89     |    |   |   | 0.25    | %      |   |     | 35,381    |   |    |   | 204    |    |   |   | 0.58     | %      |   |    | 37,231    |   |   |   | 564 |   |   |   | 1.51 | % |
| Time deposits                                             |   |                   | 713,315   |   |     |   | 25,014 |    |   |   | 3.51    | %      |   |     | 606,878   |   |    |   | 25,873 |    |   |   | 4.26     | %      |   |    | 503,870   |   |   |   | 25,275 |   |   |   | 5.02 | % |
| FHLB advances                                             |   |                   | 101,390   |   |     |   | 4,151  |    |   |   | 4.09    | %      |   |     | 99,975    |   |    |   | 3,956  |    |   |   | 3.96     | %      |   |    | 88,569    |   |   |   | 4,069 |   |   |   | 4.59 | % |
| Notes payable                                             |   |                   | 28,063    |   |     |   | 964    |    |   |   | 3.43    | %      |   |     | 10,310    |   |    |   | 540    |    |   |   | 5.24     | %      |   |    | 10,310    |   |   |   | 727 |   |   |   | 7.05 | % |
| Other short-term borrowings                               |   |                   | 10,698    |   |     |   | 163    |    |   |   | 1.52    | %      |   |     | 14,199    |   |    |   | 408    |    |   |   | 2.88     | %      |   |    | 12,392    |   |   |   | 526 |   |   |   | 4.25 | % |
| Total interest-bearing liabilities                        |   |                   | 1,100,186 |   |     |   | 31,571 |    |   |   | 2.87    | %      |   |     | 1,038,241 |   |    |   | 36,219 |    |   |   | 3.49     | %      |   |    | 961,409   |   |   |   | 42,210 |   |   |   | 4.39 | % |
|                                                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing liabilities and stockholders' equity: |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Demand deposits                                           |   |                   | 109,317   |   |     |   |   |    |   |   |    |   |   |     | 97,839    |   |    |   |   |    |   |   |     |   |   |    | 98,475    |   |   |   |   |   |   |   |   |   |
| Other liabilities                                         |   |                   | 5,382     |   |     |   |   |    |   |   |    |   |   |     | 5,918     |   |    |   |   |    |   |   |     |   |   |    | 7,368     |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                      |   |                   | 89,142    |   |     |   |   |    |   |   |    |   |   |     | 96,877    |   |    |   |   |    |   |   |     |   |   |    | 98,055    |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                |   | $                      | 1,304,027 |   |     |   |   |    |   |   |    |   |   | $        | 1,238,875 |   |    |   |   |    |   |   |     |   |   | $       | 1,165,307 |   |   |   |   |   |   |   |   |   |
|                                                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
|                                                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Interest rate spread                                      |   |                   |      |   |     |   |   |    |   |   | 2.13    | %      |   |     |      |   |    |   |   |    |   |   | 2.66     | %      |   |    |      |   |   |   |   |   |   |   | 3.39 | % |
|                                                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Net interest income                                       |   |                   |      |   |     | $      | 28,634 |    |   |   |    |   |   |     |      |   |    | $      | 35,433 |    |   |   |     |   |   |    |      |   |   | $ | 43,120 |   |   |   |   |   |
|                                                      |   |                   |      |   |     |   |   |    |   |   |    |   |   |     |      |   |    |   |   |    |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Net interest margin                                       |   |                   |      |   |     |   |   |    |   |   | 2.38    | %      |   |     |      |   |    |   |   |    |   |   | 3.04     | %      |   |    |      |   |   |   |   |   |   |   | 3.93 | % |

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Table of Contents

| As of December 31,                                |   | 2009                   |    |   | 2008       |   |   | 2007     |   |
|---------------------------------------------------|--------|------------------------|---------|--------|------------|--------|--------|----------|--------|
|                                              |   | $ Amount               |    |   | % to Total |   |   | $ Amount |   |   | % to Total |   |   | $ Amount |   |   | % to Total |   |
|                                              |   | (Dollars in Thousands) |    |   |       |   |
| U. S. Government agency securities                |   | $                      | 30,468  |   |       |   | 25.2   | %        |   | $ | 35,303 |   |   |   | 19.0 | % |   | $ | 70,235 |   |   |   | 36.1 | % |
| State and municipal securities                    |   |                   | 9,721   |   |       |   | 8.0    | %        |   |   | 30,361 |   |   |   | 16.3 | % |   |   | 32,332 |   |   |   | 16.6 | % |
| Mortgage-backed securities                        |   |                   | 67,523  |   |       |   | 55.8   | %        |   |   | 103,413 |   |   |   | 55.7 | % |   |   | 77,201 |   |   |   | 39.6 | % |
| Corporate debt securities                         |   |                   | 3,829   |   |       |   | 3.2    | %        |   |   | 6,965 |   |   |   | 3.8 | % |   |   | 6,507 |   |   |   | 3.3 | % |
| Equity securities                                 |   |                   | 9,460   |   |       |   | 7.8    | %        |   |   | 9,731 |   |   |   | 5.2 | % |   |   | 8,519 |   |   |   | 4.4 | % |
| Total investments                                 |   | $                      | 121,001 |   |       |   | 100.0  | %        |   | $ | 185,773 |   |   |   | 100.0 | % |   | $ | 194,794 |   |   |   | 100.0 | % |
| Total investments as a percentage of total assets |   |                   | 9.8     | %      |       |   |   |     |   |   | 13.8 | % |   |   |   |   |   |   | 16.3 | % |   |   |   |   |

| As of December 31, 2009              |   | $ Amount               |   |   | % to Total |   |
|--------------------------------------|--------|------------------------|--------|--------|------------|--------|
|                                 |   | (Dollars in Thousands) |   |
| CIFG Assurance North America         |   | $                      | 774    |   |       |   | 8.0 | % |
| MBIA Corporation                     |   |                   | 614    |   |       |   | 6.3 | % |
| Financial Security Assurance Inc.    |   |                   | 737    |   |       |   | 7.6 | % |
| Assured Guaranty Corporation         |   |                   | 2,408  |   |       |   | 24.8 | % |
| Uninsured                            |   |                   | 5,188  |   |       |   | 53.3 | % |
| Total state and municipal securities |   | $                      | 9,721  |   |       |   | 100.00 | % |

|                                   |   | U.S. Government        |   |   | State and Municipal |   |   | Mortgage-Backed |   |   | Corporate Debt |   |
|----------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|-----------------|--------|--------|----------------|--------|
|                                   |   | Agency Securities      |   |   | Securities          |   |   | Securities      |   |   | Securities     |   |
| As of December 31, 2009                |   | Amount                 |   |   | Yield               |   |   | Amount          |   |   | Yield          |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |
|                                   |   | (Dollars in Thousands) |   |
| Due in one year or less                |   | $                      | -      |   |                |   | -      |            |   | $      | -              |   |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |
| Due after one year through five years  |   |                   | -      |   |                |   | -      |            |   |   | -              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 857 |   |   |   | 6.75 | % |
| Due after five years through ten years |   |                   | 15,357 |   |                |   | 4.42   | %               |   |   | 493            |   |   |   | 3.86 | % |   |   | 776 |   |   |   | 4.52 | % |   |   | - |   |   |   | - |   |
| Due after ten years                    |   |                   | 15,111 |   |                |   | 4.48   | %               |   |   | 9,228          |   |   |   | 4.11 | % |   |   | 66,747 |   |   |   | 4.27 | % |   |   | 2,972 |   |   |   | 4.86 | % |
| Total                                  |   | $                      | 30,468 |   |                |   | 4.45   | %               |   | $      | 9,721          |   |   |   | 4.10 | % |   | $ | 67,523 |   |   |   | 4.27 | % |   | $ | 3,829 |   |   |   | 5.28 | % |

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Table of Contents

| As of December 31,                                 |   | 2009                   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|----------------------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                               |   | (Dollars in Thousands) |    |
| Commercial and financial                           |   | $                      | 84,771  |   |   | $      | 87,530  |   |   | $      | 78,730  |   |   | $      | 66,376  |   |   | $ | 50,860 |   |
| Agricultural (including loans secured by farmland) |   |                   | 40,215  |   |   |   | 48,647  |   |   |   | 41,861  |   |   |   | 43,302  |   |   |   | 55,830 |   |
| Real estate - construction and development         |   |                   | 204,663 |   |   |   | 315,786 |   |   |   | 352,732 |   |   |   | 295,246 |   |   |   | 268,629 |   |
| Real estate -  commercial                |   |                   | 275,927 |   |   |   | 276,645 |   |   |   | 248,272 |   |   |   | 255,462 |   |   |   | 231,601 |   |
| Real estate – residential                    |   |                   | 174,879 |   |   |   | 196,306 |   |   |   | 174,157 |   |   |   | 142,501 |   |   |   | 127,326 |   |
| Installment loans to individuals and other         |   |                   | 24,949  |   |   |   | 32,084  |   |   |   | 26,011  |   |   |   | 18,414  |   |   |   | 20,380 |   |
|                                               |   |                   | 805,404 |   |   |   | 956,998 |   |   |   | 921,763 |   |   |   | 821,301 |   |   |   | 754,626 |   |
| Deferred loan fees and unearned interest, net      |   |                   | (90     | )      |   |   | (310    | )      |   |   | (414    | )      |   |   | (997    | ) |   |   | (1,688 | ) |
|                                               |   |                   | 805,314 |   |   |   | 956,688 |   |   |   | 921,349 |   |   |   | 820,304 |   |   |   | 752,938 |   |
| Allowance for loans losses                         |   |                   | (29,314 | )      |   |   | (19,374 | )      |   |   | (12,906 | )      |   |   | (11,006 | ) |   |   | (11,079 | ) |
| Loans, net                                         |   | $                      | 776,000 |   |   | $      | 937,314 |   |   | $      | 908,443 |   |   | $      | 809,298 |   |   | $ | 741,859 |   |

| As of December 31,                                    |   |   | 2009   |   |   |   | 2008   |   |   |   | 2007   |   |   |   | 2006   |   |   |   | 2005   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and financial                              |   |   | 10.53  | %      |   |   | 9.15   | %      |   |   | 8.55   | %      |   |   | 8.09   | %      |   |   | 6.75   | %      |
| Agricultural (including loans secured by farmland)    |   |   | 4.99   | %      |   |   | 5.08   | %      |   |   | 4.54   | %      |   |   | 5.28   | %      |   |   | 7.41   | %      |
| Real estate -  construction and development |   |   | 25.41  | %      |   |   | 33.01  | %      |   |   | 38.28  | %      |   |   | 35.99  | %      |   |   | 35.68  | %      |
| Real estate - commercial                              |   |   | 34.26  | %      |   |   | 28.92  | %      |   |   | 26.95  | %      |   |   | 31.14  | %      |   |   | 30.76  | %      |
| Real estate – residential                       |   |   | 21.72  | %      |   |   | 20.52  | %      |   |   | 18.90  | %      |   |   | 17.37  | %      |   |   | 16.91  | %      |
| Installment loans to individuals and other            |   |   | 3.10   | %      |   |   | 3.35   | %      |   |   | 2.82   | %      |   |   | 2.24   | %      |   |   | 2.71   | %      |
|                                                  |   |   | 100.01 | %      |   |   | 100.03 | %      |   |   | 100.04 | %      |   |   | 100.12 | %      |   |   | 100.22 | %      |
| Deferred loan fees and unearned interest, net         |   |   | -0.01  | %      |   |   | -0.03  | %      |   |   | -0.04  | %      |   |   | -0.12  | %      |   |   | -0.22  | %      |
|                                                  |   |   | 100.00 | %      |   |   | 100.00 | %      |   |   | 100.00 | %      |   |   | 100.00 | %      |   |   | 100.00 | %      |
| Allowance for loans losses                            |   |   | -3.64  | %      |   |   | -2.03  | %      |   |   | -1.40  | %      |   |   | -1.34  | %      |   |   | -1.47  | %      |
| Loans, net                                            |   |   | 96.36  | %      |   |   | 97.97  | %      |   |   | 98.60  | %      |   |   | 98.66  | %      |   |   | 98.53  | %      |

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Table of Contents

|                                     |   | 2009                   |    |   | 2008       |   |   | 2007     |   |
|------------------------------------------|--------|------------------------|---------|--------|------------|--------|--------|----------|--------|
|                                     |   | $ Amount               |    |   | % to Total |   |   | $ Amount |   |   | % to Total |   |   | $ Amount |   |   | % to Total |   |
|                                     |   | (Dollars in Thousands) |    |
| Construction and development:            |   |                   |    |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Acquisition and development:             |   |                   |    |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential                   |   | $                      | 83,868  |   |       |   | 41.0   | %        |   | $ | 129,412 |   |   |   | 41.0 | % |   | $ | 130,097 |   |   |   | 36.9 | % |
| Commercial and multi-family              |   |                   | 58,477  |   |       |   | 28.6   | %        |   |   | 95,934 |   |   |   | 30.4 | % |   |   | 105,718 |   |   |   | 30.0 | % |
| Construction:                            |   |                   |    |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential spec              |   |                   | 10,364  |   |       |   | 5.1    | %        |   |   | 19,182 |   |   |   | 6.1 | % |   |   | 40,392 |   |   |   | 11.4 | % |
| 1-4 family residential pre-sold          |   |                   | 304     |   |       |   | 0.1    | %        |   |   | 112 |   |   |   | 0.1 | % |   |   | 1,604 |   |   |   | 0.4 | % |
| 1-4 family residential other             |   |                   | 14,501  |   |       |   | 7.1    | %        |   |   | 23,423 |   |   |   | 7.4 | % |   |   | 26,694 |   |   |   | 7.6 | % |
| Commercial owner-occupied                |   |                   | 704     |   |       |   | 0.3    | %        |   |   | 3,340 |   |   |   | 1.0 | % |   |   | 5,685 |   |   |   | 1.6 | % |
| Commercial not owner-occupied            |   |                   | 27,994  |   |       |   | 13.7   | %        |   |   | 27,038 |   |   |   | 8.5 | % |   |   | 17,497 |   |   |   | 5.0 | % |
| Hotel/motel                              |   |                   | 2,427   |   |       |   | 1.2    | %        |   |   | 7,949 |   |   |   | 2.5 | % |   |   | 12,909 |   |   |   | 3.7 | % |
| Industrial                               |   |                   | -       |   |       |   | 0.0    | %        |   |   | - |   |   |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |
| Multi-family properties                  |   |                   | 4,512   |   |       |   | 2.2    | %        |   |   | 6,538 |   |   |   | 2.1 | % |   |   | 7,789 |   |   |   | 2.2 | % |
| Special purpose property                 |   |                   | 1,512   |   |       |   | 0.7    | %        |   |   | 2,858 |   |   |   | 0.9 | % |   |   | 2,337 |   |   |   | 0.6 | % |
| Other                                    |   |                   | -       |   |       |   | 0.0    | %        |   |   | - |   |   |   | 0.0 | % |   |   | 2,010 |   |   |   | 0.6 | % |
| Total construction and development loans |   | $                      | 204,663 |   |       |   | 100.0  | %        |   | $ | 315,786 |   |   |   | 100.0 | % |   | $ | 352,732 |   |   |   | 100.0 | % |
| % of total loans                         |   |                   | 25.41   | %      |       |   |   |     |   |   | 33.0 | % |   |   |   |   |   |   | 38.3 | % |   |   |   |   |

|                               |   | 2009     |    |   | 2008       |   |   | 2007     |   |
|------------------------------------|--------|----------|---------|--------|------------|--------|--------|----------|--------|
|                               |   | $ Amount |    |   | % to Total |   |   | $ Amount |   |   | % to Total |   |   | $ Amount |   |   | % to Total |   |
| Commercial real estate:            |   |     |    |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Owner-occupied:                    |   |     |    |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Office                             |   | $        | 40,718  |   |       |   | 14.8   | %        |   | $ | 41,617 |   |   |   | 15.0 | % |   | $ | 34,291 |   |   |   | 13.8 | % |
| Retail                             |   |     | 18,576  |   |       |   | 6.7    | %        |   |   | 21,062 |   |   |   | 7.6 | % |   |   | 22,114 |   |   |   | 8.9 | % |
| Other                              |   |     | 39,783  |   |       |   | 14.4   | %        |   |   | 40,413 |   |   |   | 14.6 | % |   |   | 34,263 |   |   |   | 13.8 | % |
| Not owner-occupied:                |   |     |    |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Office                             |   |     | 27,342  |   |       |   | 9.9    | %        |   |   | 25,425 |   |   |   | 9.2 | % |   |   | 29,210 |   |   |   | 11.8 | % |
| Retail                             |   |     | 36,525  |   |       |   | 13.2   | %        |   |   | 36,085 |   |   |   | 13.1 | % |   |   | 36,780 |   |   |   | 14.8 | % |
| Other                              |   |     | 24,035  |   |       |   | 8.7    | %        |   |   | 24,656 |   |   |   | 8.9 | % |   |   | 27,418 |   |   |   | 11.0 | % |
| Other:                             |   |     |    |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Hotel/motel                        |   |     | 25,756  |   |       |   | 9.3    | %        |   |   | 15,812 |   |   |   | 5.7 | % |   |   | 11,399 |   |   |   | 4.6 | % |
| Industrial                         |   |     | 4,300   |   |       |   | 1.6    | %        |   |   | 4,677 |   |   |   | 1.7 | % |   |   | 2,626 |   |   |   | 1.1 | % |
| Multi-family properties            |   |     | 19,462  |   |       |   | 7.1    | %        |   |   | 22,685 |   |   |   | 8.2 | % |   |   | 14,894 |   |   |   | 6.0 | % |
| Special purpose property           |   |     | 38,748  |   |       |   | 14.0   | %        |   |   | 39,240 |   |   |   | 14.2 | % |   |   | 34,876 |   |   |   | 14.0 | % |
| Other                              |   |     | 683     |   |       |   | 0.3    | %        |   |   | 4,973 |   |   |   | 1.8 | % |   |   | 401 |   |   |   | 0.2 | % |
| Total commercial real estate loans |   | $        | 275,927 |   |       |   | 100.0  | %        |   | $ | 276,645 |   |   |   | 100.0 | % |   | $ | 248,272 |   |   |   | 100.0 | % |
| % of total loans                   |   |     | 34.3    | %      |       |   |   |     |   |   | 28.9 | % |   |   |   |   |   |   | 26.9 | % |   |   |   |   |

----

Table of Contents

|                                               |   | South Georgia          |    |   | North Georgia |   |    | Florida |   |   |     |   |   |   |   |
|----------------------------------------------------|--------|------------------------|---------|--------|---------------|--------|---------|---------|--------|--------|----------|--------|--------|--------|--------|
|                                               |   | Market                 |    |   | Market        |   |    | Market  |   |   | Treasury |   |   | Total  |   |
|                                               |   | (Dollars in Thousands) |    |
| Commercial and financial                           |   | $                      | 27,866  |   |          | $      | 41,013  |    |   | $      | 3,497    |   |   | $      | 12,395 |   |   | $ | 84,771 |   |
| Agricultural (including loans secured by farmland) |   |                   | 31,296  |   |          |   | 2,754   |    |   |   | 6,165    |   |   |   | -      |   |   |   | 40,215 |   |
| Real estate - construction and development         |   |                   | 69,842  |   |          |   | 103,359 |    |   |   | 29,756   |   |   |   | 1,706  |   |   |   | 204,663 |   |
| Real estate -  commercial                |   |                   | 97,417  |   |          |   | 145,317 |    |   |   | 22,501   |   |   |   | 10,692 |   |   |   | 275,927 |   |
| Real estate – residential                    |   |                   | 117,375 |   |          |   | 44,485  |    |   |   | 9,494    |   |   |   | 3,525  |   |   |   | 174,879 |   |
| Installment loans to individuals and others        |   |                   | 12,237  |   |          |   | 5,607   |    |   |   | 114      |   |   |   | 6,991  |   |   |   | 24,949 |   |
|                                               |   |                   | 356,033 |   |          |   | 342,535 |    |   |   | 71,527   |   |   |   | 35,309 |   |   |   | 805,404 |   |
| Deferred loan fees and unearned interest, net      |   |                   | 194     |   |          |   | (127    | )       |   |   | (120     | )      |   |   | (37    | ) |   |   | (90 | ) |
|                                               |   |                   | 356,227 |   |          |   | 342,408 |    |   |   | 71,407   |   |   |   | 35,272 |   |   |   | 805,314 |   |
| Allowance for loan losses                          |   |                   | (9,658  | )      |          |   | (12,785 | )       |   |   | (1,541   | )      |   |   | (5,330 | ) |   |   | (29,314 | ) |
|                                               |   | $                      | 346,569 |   |          | $      | 329,623 |    |   | $      | 69,866   |   |   | $      | 29,942 |   |   | $ | 776,000 |   |

|                                        |   | Commercial             |   |   |         |   |   | Real Estate - |   |   | Real Estate - |   |   | Real Estate - |    |   | All Other |   |    |   |   |
|---------------------------------------------|--------|------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|---------------|--------|--------|---------------|---------|--------|-----------|--------|---------|--------|--------|
| As of December 31, 2009                     |   | & Financial        |   |   | Agricultural |   |   | Construction  |   |   | Commercial    |   |   | Residential   |    |   | Loans     |   |    | Total  |   |
|                                        |   | (Dollars in Thousands) |   |   |         |   |   |          |   |
| Due in one year or less                     |   | $                      | 67,375 |   |         | $      | 28,118 |          |   | $      | 163,419       |   |   | $             | 80,252  |   |      | $      | 47,755  |   |   | $ | 4,320 |   |   | $ | 391,239 |   |
| Due after one year through five years       |   |                   | 16,906 |   |         |   | 11,406 |          |   |   | 37,973        |   |   |          | 157,834 |   |      |   | 80,061  |   |   |   | 13,779 |   |   |   | 317,959 |   |
| Due after five years                        |   |                   | 490    |   |         |   | 691    |          |   |   | 3,271         |   |   |          | 37,841  |   |      |   | 47,063  |   |   |   | 6,850 |   |   |   | 96,206 |   |
| Total                                       |   | $                      | 84,771 |   |         | $      | 40,215 |          |   | $      | 204,663       |   |   | $             | 275,927 |   |      | $      | 174,879 |   |   | $ | 24,949 |   |   | $ | 805,404 |   |
|                                        |   |                   |   |   |         |   |   |          |   |   |          |   |   |          |    |   |      |   |    |   |   |   |   |   |   |   |   |   |
| Of the above loans maturing after one year, |   |                   |   |   |         |   |   |          |   |   |          |   |   |          |    |   |      |   |    |   |   |   |   |   |   |   |   |   |
| those with predetermined fixed rates        |   | $                      | 11,984 |   |         | $      | 7,836  |          |   | $      | 9,550         |   |   | $             | 144,394 |   |      | $      | 91,303  |   |   | $ | 4,987 |   |   | $ | 270,054 |   |
| those with floating or adjustable rates     |   |                   | 5,412  |   |         |   | 4,261  |          |   |   | 31,694        |   |   |          | 51,281  |   |      |   | 35,821  |   |   |   | 15,642 |   |   |   | 144,111 |   |
| Total maturing after one year               |   | $                      | 17,396 |   |         | $      | 12,097 |          |   | $      | 41,244        |   |   | $             | 195,675 |   |      | $      | 127,124 |   |   | $ | 20,629 |   |   | $ | 414,165 |   |

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| Category                     |   | Net Carrying Value * |   | Collateral Description                              |   | Average Carrying Value/ Unit                           |
|------------------------------|--------|----------------------|--------|-----------------------------------------------------|--------|--------------------------------------------------------|
| Construction and Development |   | $30.5 million        |   | 24 parcels of undeveloped land totaling 2,813 acres |   | $9,400 per residential acre$14,900 per commercial acre |
| Construction and Development |   | $5.1 million         |   | 310 residential lots                                |   | $16,500 per lot                                        |
| 1-4 Family Residential       |   | $10.8 million        |   | 82 houses                                           |   | $132,000 per house                                     |
| Commercial Real Estate       |   | $29.5 million        |   | 33 commercial properties                            |   | $892,200 per property                                  |
| Agriculture                  |   | $2.0 million         |   | 3 parcels of farm land totaling 373 acres           |   | $5,400 per acre                                        |
| Commercial and Industrial    |   | $357,000             |   | Non-real estate collateral                          |   | $35,700 per loan                                       |
| Multi-Family Residential     |   | $2.1 million         |   | 9 condominium units                                 |   | $232,700 per unit                                      |
| Consumer                     |   | $373,000             |   | Non-real estate collateral                          |   | $53,000 per loan                                       |
| Total                        |   | $80.7 million        |   |                                                |   |                                                   |

| As of December 31,                                                                                   |   | 2009                   |   |   | 2008   |   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                 |   | (Dollars in Thousands) |   |
| Loans accounted for on a nonaccrual basis                                                            |   | $                      | 92,272 |   |   | $      | 54,903 |   |   | $      | 11,405 |   |   | $      | 4,013  |   |   | $ | 7,856 |   |
| Accruing loans which are contractually past due 90 days or more as to principal or interest payments |   |                   | 15     |   |   |   | 206    |   |   |   | 37     |   |   |   | 34     |   |   |   | 2 |   |
| Troubled debt restructurings not included above                                                      |   |                   | 881    |   |   |   | 311    |   |   |   | -      |   |   |   | -      |   |   |   | - |   |
| Total nonperforming loans                                                                            |   | $                      | 93,168 |   |   | $      | 55,420 |   |   | $      | 11,442 |   |   | $      | 4,047  |   |   | $ | 7,858 |   |
|                                                                                                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of nonperforming loans to total loans (%)                                                      |   |                   | 11.57  |   |   |   | 5.79   |   |   |   | 1.24   |   |   |   | 0.49   |   |   |   | 1.04 |   |
|                                                                                                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reserves allocated to nonperforming loans:                                                           |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Specific Reserves (FAS 114)                                                                          |   | $                      | 12,056 |   |   | $      | 2,888  |   |   | $      | 1,577  |   |   | $      | -      |   |   | $ | 1,155 |   |
| General Reserves (FAS 5)                                                                             |   |                   | 388    |   |   |   | 1,188  |   |   |   | 397    |   |   |   | 602    |   |   |   | 80 |   |
| Total reserves allocated to nonperforming loans                                                      |   | $                      | 12,444 |   |   | $      | 4,076  |   |   | $      | 1,974  |   |   | $      | 602    |   |   | $ | 1,235 |   |
|                                                                                                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total reserves allocated as a percentage of nonperforming loans                                      |   |                   | 13.36  | %      |   |   | 7.35   | %      |   |   | 17.25  | %      |   |   | 14.86  | % |   |   | 15.71 | % |

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|                                                                                                 |   | North Georgia          |    |   | South Georgia |   |   | Florida |   |   | Treasury |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|---------------|--------|--------|---------|--------|--------|----------|--------|--------|--------|--------|
|                                                                                                 |   | (Dollars In Thousands) |    |
| Loans accounted for on a nonaccrual basis                                                            |   | $                      | 36,840  |   |          | $      | 29,525 |    |   | $      | 25,907   |   |   | $      | -      |   |   | $ | 92,272 |   |
| Accruing loans which are contractually past due 90 days or more as to principal or interest payments |   |                   | -       |   |          |   | -      |    |   |   | -        |   |   |   | 15     |   |   |   | 15 |   |
| Troubled debt restructurings not included above                                                      |   |                   | 881     |   |          |   | -      |    |   |   | -        |   |   |   | -      |   |   |   | 881 |   |
| Foreclosed assets                                                                                    |   |                   | 71,999  |   |          |   | 2,882  |    |   |   | 17,236   |   |   |   | -      |   |   |   | 92,117 |   |
| Total nonperforming assets                                                                           |   | $                      | 109,720 |   |          | $      | 32,407 |    |   | $      | 43,143   |   |   | $      | 15     |   |   | $ | 185,285 |   |

| Category                     |   | Book Value    |   | Description                                         |   | Average Value/ Unit                                     |
|------------------------------|--------|---------------|--------|-----------------------------------------------------|--------|---------------------------------------------------------|
| Construction and Development |   | $39.3 million |   | 33 parcels of undeveloped land totaling 1,773 acres |   | $11,300 per residential acre$72,300 per commercial acre |
| Construction and Development |   | $17.8 million |   | 794 residential lots                                |   | $22,400 per lot                                         |
| 1-4 Family Residential       |   | $8.6 million  |   | 69 houses                                           |   | $132,200 per house                                      |
| Commercial Real Estate       |   | $19.1 million |   | 28 commercial properties                            |   | $681,500 per property                                   |
| Multi-Family Residential     |   | $6.4 million  |   | 8 condominium units                                 |   | $800,000 per unit                                       |
| Total                        |   | $91.2 million |   |                                                |   |                                                    |

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|   | · | lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in international, national, regional and local economic and business conditions that affect the collectibility of the portfolio; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in the nature and volume of the loan portfolio; |
|--------|--------|---------------------------------------------------------|

|   | · | experience, ability, and depth of lending management and other relevant staff; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | levels of and trends in delinquencies and impaired loans; |
|--------|--------|-----------------------------------------------------------|

|   | · | changes in the quality of our loan review system; |
|--------|--------|---------------------------------------------------|

|   | · | value of underlying collateral for collateral-dependent loans; |
|--------|--------|----------------------------------------------------------------|

|   | · | existence and effect of any concentrations of credit, and changes in the level of such concentrations; and |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | other external factors such as competition and legal and regulatory requirements. |
|--------|--------|-----------------------------------------------------------------------------------|

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| As of December 31,                                 |   | 2009                   |   |   | 2008          |   |   | 2007   |   |   | 2006          |   |   | 2005   |   |
|----------------------------------------------------|--------|------------------------|--------|--------|---------------|--------|--------|--------|--------|--------|---------------|--------|--------|--------|--------|
|                                               |   |                   |   |   | Percentage of |   |   |   |   |   | Percentage of |   |   |   |   |   | Percentage of |   |   |   |   |   | Percentage of |   |   |   |   |   | Percentage of |   |
|                                               |   |                   |   |   | Loans in      |   |   |   |   |   | Loans in      |   |   |   |   |   | Loans in |   |   |   |   |   | Loans in |   |   |   |   |   | Loans in |   |
|                                               |   |                   |   |   | Category      |   |   |   |   |   | Category      |   |   |   |   |   | Category |   |   |   |   |   | Category |   |   |   |   |   | Category |   |
|                                               |   |                   |   |   | to Total      |   |   |   |   |   | to Total      |   |   |   |   |   | to Total |   |   |   |   |   | to Total |   |   |   |   |   | to Total |   |
|                                               |   | Amount                 |   |   | Loans         |   |   | Amount |   |   | Loans         |   |   | Amount |   |   | Loans |   |   | Amount |   |   | Loans |   |   | Amount |   |   | Loans |   |
|                                               |   | (Dollars in Thousands) |   |
| Commercial and financial                           |   | $                      | 1,415  |   |          |   | 10.5   | %      |   | $      | 1,382         |   |   |   | 9.1    | % |   | $ | 229 |   |   |   | 8.6 | % |   | $ | 972 |   |   |   | 8.1 | % |   | $ | 2,670 |   |   |   | 6.7 | % |
| Agricultural (including loans secured by farmland) |   |                   | 196    |   |          |   | 5.0    | %      |   |   | 112           |   |   |   | 5.1    | % |   |   | 1,029 |   |   |   | 4.5 | % |   |   | 1,184 |   |   |   | 5.3 | % |   |   | 323 |   |   |   | 7.4 | % |
| Real estate - construction                         |   |                   | 16,828 |   |          |   | 25.4   | %      |   |   | 11,950        |   |   |   | 33.0   | % |   |   | 8,383 |   |   |   | 38.2 | % |   |   | 4,875 |   |   |   | 35.9 | % |   |   | 4,427 |   |   |   | 35.5 | % |
| Real estate - commercial                           |   |                   | 5,121  |   |          |   | 34.3   | %      |   |   | 2,552         |   |   |   | 28.9   | % |   |   | 2,008 |   |   |   | 27.0 | % |   |   | 2,276 |   |   |   | 31.1 | % |   |   | 2,280 |   |   |   | 30.8 | % |
| Real estate - residential                          |   |                   | 3,179  |   |          |   | 21.7   | %      |   |   | 2,417         |   |   |   | 20.5   | % |   |   | 815 |   |   |   | 18.9 | % |   |   | 547 |   |   |   | 17.4 | % |   |   | 208 |   |   |   | 16.9 | % |
| Consumer and other loans                           |   |                   | 415    |   |          |   | 3.1    | %      |   |   | 176           |   |   |   | 3.4    | % |   |   | 215 |   |   |   | 2.8 | % |   |   | 255 |   |   |   | 2.2 | % |   |   | 512 |   |   |   | 2.7 | % |
| Unallocated                                        |   |                   | 2,160  |   |          |   | N/A    |   |   |   | 785           |   |   |   | N/A    |   |   |   | 227 |   |   |   | N/A |   |   |   | 897 |   |   |   | N/A |   |   |   | 659 |   |   |   | N/A |   |
| Total                                              |   | $                      | 29,314 |   |          |   | 100.0  | %      |   | $      | 19,374        |   |   |   | 100.0  | % |   | $ | 12,906 |   |   |   | 100.0 | % |   | $ | 11,006 |   |   |   | 100.0 | % |   | $ | 11,079 |   |   |   | 100.0 | % |

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| For the Years Ended December 31,                                                                       |   | 2009                   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|--------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                                                   |   | (Dollars in Thousands) |    |
| Balance at beginning of year                                                                           |   | $                      | 19,374  |   |   | $      | 12,906  |   |   | $      | 11,006  |   |   | $      | 11,079  |   |   | $ | 9,066 |   |
| Charge-offs:                                                                                           |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial and financial                                                                               |   |                   | 5,965   |   |   |   | 709     |   |   |   | 66      |   |   |   | 115     |   |   |   | 31 |   |
| Agricultural (including loans secured by farmland)                                                     |   |                   | 1,108   |   |   |   | -       |   |   |   | 10      |   |   |   | -       |   |   |   | - |   |
| Real estate - construction and development                                                             |   |                   | 21,212  |   |   |   | 8,022   |   |   |   | 324     |   |   |   | 24      |   |   |   | - |   |
| Real estate – commercial                                                                         |   |                   | 4,906   |   |   |   | 25      |   |   |   | 257     |   |   |   | 314     |   |   |   | 7 |   |
| Real estate – residential                                                                        |   |                   | 3,063   |   |   |   | 3,188   |   |   |   | 65      |   |   |   | 208     |   |   |   | 43 |   |
| Installment loans to individuals and other loans                                                       |   |                   | 5,494   |   |   |   | 183     |   |   |   | 146     |   |   |   | 160     |   |   |   | 200 |   |
|                                                                                                   |   |                   | 41,748  |   |   |   | 12,127  |   |   |   | 868     |   |   |   | 821     |   |   |   | 281 |   |
| Recoveries:                                                                                            |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial and financial                                                                               |   |                   | 138     |   |   |   | 38      |   |   |   | 55      |   |   |   | 118     |   |   |   | 111 |   |
| Agricultural (including loans secured by farmland)                                                     |   |                   | 38      |   |   |   | 38      |   |   |   | 56      |   |   |   | 41      |   |   |   | 247 |   |
| Real estate - construction and development                                                             |   |                   | 8       |   |   |   | 2       |   |   |   | -       |   |   |   | -       |   |   |   | - |   |
| Real estate – commercial                                                                         |   |                   | 19      |   |   |   | 340     |   |   |   | 28      |   |   |   | 335     |   |   |   | 394 |   |
| Real estate – residential                                                                        |   |                   | 38      |   |   |   | 33      |   |   |   | 108     |   |   |   | 87      |   |   |   | 148 |   |
| Installment loans to individuals and other loans                                                       |   |                   | 259     |   |   |   | 94      |   |   |   | 121     |   |   |   | 167     |   |   |   | 205 |   |
|                                                                                                   |   |                   | 500     |   |   |   | 545     |   |   |   | 368     |   |   |   | 748     |   |   |   | 1,105 |   |
| Net charge-offs (recoveries)                                                                           |   |                   | 41,248  |   |   |   | 11,582  |   |   |   | 500     |   |   |   | 73      |   |   |   | (824 | ) |
| Additions provided to the allowance charged to operations                                              |   |                   | 51,188  |   |   |   | 18,050  |   |   |   | 2,400   |   |   |   | -       |   |   |   | 1,189 |   |
| Balance at end of year                                                                                 |   | $                      | 29,314  |   |   | $      | 19,374  |   |   | $      | 12,906  |   |   | $      | 11,006  |   |   | $ | 11,079 |   |
|                                                                                                   |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Average balance of loans outstanding                                                                   |   | $                      | 915,674 |   |   | $      | 955,253 |   |   | $      | 883,334 |   |   | $      | 792,278 |   |   | $ | 706,052 |   |
|                                                                                                   |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Ratio of net charge-offs (recoveries) during the year to average loans outstanding during the year (%) |   |                   | 4.50    |   |   |   | 1.21    |   |   |   | 0.06    |   |   |   | 0.01    |   |   |   | (0.12 | ) |

| As of December 31,                           |   | 2009                   |      |   | 2008   |   |      | 2007   |   |   | 2006    |   |   | 2005   |    |
|----------------------------------------------|--------|------------------------|-----------|--------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                         |   | (Dollars in Thousands) |      |
| Noninterest-bearing demand                   |   | $                      | 100,458   |   |   | $      | 91,114    |   |   | $      | 89,423  |   |   | $      | 100,911 |   |   | $ | 107,917 |   |
| Interest-bearing demand and savings          |   |                   | 250,232   |   |   |   | 252,122   |   |   |   | 354,743 |   |   |   | 328,828 |   |   |   | 284,126 |   |
| Retail time deposits < $100,000           |   |                   | 314,148   |   |   |   | 328,329   |   |   |   | 312,722 |   |   |   | 279,936 |   |   |   | 250,250 |   |
| Retail time deposits > $100,000           |   |                   | 217,833   |   |   |   | 198,845   |   |   |   | 187,662 |   |   |   | 161,054 |   |   |   | 131,279 |   |
| Retail time deposits placed in CDARS program |   |                   | 29,532    |   |   |   | 46,690    |   |   |   | -       |   |   |   | -       |   |   |   | - |   |
| Brokered time deposits                       |   |                   | 133,012   |   |   |   | 206,603   |   |   |   | 35,599  |   |   |   | 37,754  |   |   |   | 42,109 |   |
| Total deposits                               |   | $                      | 1,045,215 |   |   | $      | 1,123,703 |   |   | $      | 980,149 |   |   | $      | 908,483 |   |   | $ | 815,681 |   |

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| As of December 31,                           |   | 2009   |   |   | 2008   |   |   | 2007 |   |   | 2006   |   |   | 2005   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|--------|--------|--------|--------|--------|
|                                         |   |   |   |
| Noninterest-bearing demand                   |   |   | 9.61   | %      |   |   | 8.11   | %    |   |   | 9.12   | %      |   |   | 11.11  | % |   |   | 13.23 | % |
| Interest-bearing demand and savings          |   |   | 23.94  | %      |   |   | 22.44  | %    |   |   | 36.19  | %      |   |   | 36.19  | % |   |   | 34.83 | % |
| Retail time deposits < $100,000           |   |   | 30.06  | %      |   |   | 29.22  | %    |   |   | 31.91  | %      |   |   | 30.81  | % |   |   | 30.68 | % |
| Retail time deposits > $100,000           |   |   | 20.84  | %      |   |   | 17.69  | %    |   |   | 19.15  | %      |   |   | 17.73  | % |   |   | 16.10 | % |
| Retail time deposits placed in CDARs program |   |   | 2.82   | %      |   |   | 4.15   | %    |   |   | 0.00   | %      |   |   | 0.00   | % |   |   | 0.00 | % |
| Brokered time deposits                       |   |   | 12.73  | %      |   |   | 18.39  | %    |   |   | 3.63   | %      |   |   | 4.16   | % |   |   | 5.16 | % |
| Total deposits                               |   |   | 100.00 | %      |   |   | 100.00 | %    |   |   | 100.00 | %      |   |   | 100.00 | % |   |   | 100.00 | % |

| For the Year Ended December 31,              |   | 2009                   |      |   | 2008   |   |   | 2007            |   |
|----------------------------------------------|--------|------------------------|-----------|--------|--------|--------|--------|-----------------|--------|
|                                         |   | Average Balance        |      |   | Rate   |   |   | Average Balance |   |   | Rate |   |   | Average Balance |   |   | Rate |   |
|                                         |   | (Dollars in Thousands) |      |
| Noninterest-bearing demand                   |   | $                      | 109,317   |   |   |   | -      |            |   | $ | 97,839 |   |   |   | - |   |   | $ | 98,475 |   |   |   | - |   |
| Interest-bearing demand                      |   |                   | 210,874   |   |   |   | 0.56   | %               |   |   | 271,498 |   |   |   | 1.93 | % |   |   | 309,037 |   |   |   | 3.58 | % |
| Savings                                      |   |                   | 35,846    |   |   |   | 0.25   | %               |   |   | 35,381 |   |   |   | 0.58 | % |   |   | 37,231 |   |   |   | 1.51 | % |
| Retail time deposits < $100,000           |   |                   | 321,626   |   |   |   | 3.67   | %               |   |   | 307,170 |   |   |   | 4.47 | % |   |   | 300,618 |   |   |   | 5.06 | % |
| Retail time deposits > $100,000           |   |                   | 201,462   |   |   |   | 3.05   | %               |   |   | 183,151 |   |   |   | 4.05 | % |   |   | 168,842 |   |   |   | 4.94 | % |
| Retail time deposits placed in CDARS program |   |                   | 45,138    |   |   |   | 2.19   | %               |   |   | 8,973 |   |   |   | 3.17 | % |   |   | - |   |   |   | - |   |
| Brokered time deposits                       |   |                   | 145,089   |   |   |   | 4.19   | %               |   |   | 107,584 |   |   |   | 4.12 | % |   |   | 34,410 |   |   |   | 5.03 | % |
| Total deposits                               |   | $                      | 1,069,352 |   |   |   | 2.46   | %               |   | $ | 1,011,596 |   |   |   | 3.10 | % |   | $ | 948,613 |   |   |   | 3.89 | % |

|                                  |   | Retail time deposits < $100,000 |    |   | Retail time deposits> $100,000 |   |    | Retail time deposits placed in CDARS program |   |   | Brokered time deposits  |   |   | Totaldeposits |    |
|---------------------------------------|--------|------------------------------------|---------|--------|-----------------------------------|--------|---------|----------------------------------------------|--------|--------|------------------------------|--------|--------|---------------|---------|
|                                  |   |                               |    |   | (Dollars in Thousands)            |   |
| Three months or less                  |   | $                                  | 61,233  |   |                              | $      | 34,475  |                                         |   | $      | 18,260                       |   |   | $             | 19,311  |   |   | $ | 133,279 |   |
| Over three through six months         |   |                               | 88,013  |   |                              |   | 50,393  |                                         |   |   | 5,089                        |   |   |          | 16,580  |   |   |   | 160,075 |   |
| Over six months through twelve months |   |                               | 82,646  |   |                              |   | 59,067  |                                         |   |   | 6,183                        |   |   |          | 17,362  |   |   |   | 165,258 |   |
| Over twelve months                    |   |                               | 102,422 |   |                              |   | 53,797  |                                         |   |   | -                            |   |   |          | 79,694  |   |   |   | 235,913 |   |
| Total deposits                        |   | $                                  | 334,314 |   |                              | $      | 197,732 |                                         |   | $      | 29,532                       |   |   | $             | 132,947 |   |   | $ | 694,525 |   |

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Table of Contents

|                                         |   | South Georgia          |    |   | North Georgia |   |    | Florida |   |   |     |   |   |           |    |
|----------------------------------------------|--------|------------------------|---------|--------|---------------|--------|---------|---------|--------|--------|----------|--------|--------|----------------|---------|
|                                         |   | Market                 |    |   | Market        |   |    | Market  |   |   | Treasury |   |   | Total deposits |    |
|                                         |   | (Dollars in Thousands) |    |
| Noninterest-bearing demand                   |   | $                      | 77,661  |   |          | $      | 15,635  |    |   | $      | 2,576    |   |   | $              | 4,586   |   |   | $ | 100,458 |   |
| Interest-bearing demand and savings          |   |                   | 191,209 |   |          |   | 28,727  |    |   |   | 29,495   |   |   |           | 801     |   |   |   | 250,232 |   |
| Retail time deposits < $100,000           |   |                   | 165,026 |   |          |   | 44,844  |    |   |   | 95,351   |   |   |           | 8,927   |   |   |   | 314,148 |   |
| Retail time deposits > $100,000           |   |                   | 103,672 |   |          |   | 28,743  |    |   |   | 46,799   |   |   |           | 38,619  |   |   |   | 217,833 |   |
| Retail time deposits placed in CDARS program |   |                   | 27,311  |   |          |   | 2,430   |    |   |   | -        |   |   |           | (209    | ) |   |   | 29,532 |   |
| Brokered time deposits > $100,000         |   |                   | -       |   |          |   | -       |    |   |   | -        |   |   |           | 133,012 |   |   |   | 133,012 |   |
| Total deposits                               |   | $                      | 564,879 |   |          | $      | 120,379 |    |   | $      | 174,221  |   |   | $              | 185,736 |   |   | $ | 1,045,215 |   |

LI

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Table of Contents

| As of December 31, 2009                |   | Contractual Maturities |    |   | Expected Cash Flows |   |    | Difference |   |
|----------------------------------------|--------|------------------------|---------|--------|---------------------|--------|---------|------------|--------|
|                                   |   | (Dollars in Thousands) |    |
| Due in one year or less                |   | $                      | -       |   |                | $      | 24,467  |       |   | $ | 24,467 |   |
| Due after one year through five years  |   |                   | 857     |   |                |   | 47,282  |       |   |   | 46,425 |   |
| Due after five years through ten years |   |                   | 16,626  |   |                |   | 23,200  |       |   |   | 6,574 |   |
| Due after ten years                    |   |                   | 94,058  |   |                |   | 16,592  |       |   |   | (77,466 | ) |
| Total                                  |   | $                      | 111,541 |   |                | $      | 111,541 |       |   | $ | - |   |

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Table of Contents

|                                                    |   |                   |    |   | 1 year  |   |   | Over 1     |   |   | Over 3     |   |   | More than |   |
|---------------------------------------------------------|--------|------------------------|---------|--------|---------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|
| Contractual Obligations                                 |   | Total                  |    |   | or less |   |   | to 3 years |   |   | to 5 years |   |   | 5 years   |   |
|                                                    |   | (Dollars in Thousands) |    |
| FHLB Advances                                           |   | $                      | 90,140  |   |    | $      | 5,658  |       |   | $      | 40,745     |   |   | $         | 24,371 |   |   | $ | 19,366 |   |
| Operating Lease Obligations                             |   |                   | 1,097   |   |    |   | 345    |       |   |   | 521        |   |   |      | 231    |   |   |   | - |   |
| Other Borrowings                                        |   |                   | 20,000  |   |    |   | -      |       |   |   | 20,000     |   |   |      | -      |   |   |   | - |   |
| Guaranteed Preferred Beneficial Interests in Debentures |   |                   | 10,310  |   |    |   | -      |       |   |   | -          |   |   |      | -      |   |   |   | 10,310 |   |
|                                                    |   | $                      | 121,547 |   |    | $      | 6,003  |       |   | $      | 61,266     |   |   | $         | 24,602 |   |   | $ | 29,676 |   |

|                                              |   | 2009 |   |   | 2008  |   |   | 2007  |   |   | Minimum Regulatory Requirement |   |
|---------------------------------------------------|--------|------|--------|--------|-------|--------|--------|-------|--------|--------|--------------------------------|--------|
| Total Capital to Risk Weighted Assets             |   | 8.1% |   |   | 10.3% |   |   | 11.3% |   |   | 8.0%                           |   |
| Tier 1 Capital to Risk Weighted Assets            |   | 6.8% |   |   | 9.0%  |   |   | 10.0% |   |   | 4.0%                           |   |
| Tier 1 Capital to Average Assets (Leverage Ratio) |   | 4.7% |   |   | 7.0%  |   |   | 8.5%  |   |   | 4.0%                           |   |

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RE

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Table of Contents

| For the Year Ended December 31,                |   | 2009                   |   |   |          |   |   | 2008   |   |   |          |   |   | 2007   |    |
|------------------------------------------------|--------|------------------------|--------|--------|---------------|--------|--------|--------|--------|--------|---------------|--------|--------|--------|---------|
|                                           |   |                   |   |   | Percentage    |   |   |   |   |   | Percentage    |   |   |   |    |
|                                           |   |                   |   |   | Change        |   |   |   |   |   | Change        |   |   |   |    |
|                                           |   | Amount                 |   |   | 2009 vs. 2008 |   |   | Amount |   |   | 2008 vs. 2007 |   |   | Amount |    |
|                                           |   | (Dollars In Thousands) |   |
| Service charges on deposit accounts            |   | $                      | 3,528  |   |          |   | -4.2   | %      |   | $      | 3,683         |   |   |   | 1.8     | % |   | $ | 3,617 |   |
| Mortgage origination fees                      |   |                   | 781    |   |          |   | 10.2   | %      |   |   | 709           |   |   |   | 75.1    | % |   |   | 405 |   |
| Brokerage commissions and fees                 |   |                   | 11     |   |          |   | -35.3  | %      |   |   | 17            |   |   |   | 30.8    | % |   |   | 13 |   |
| ATM / debit card fee income                    |   |                   | 844    |   |          |   | 14.5   | %      |   |   | 737           |   |   |   | 14.6    | % |   |   | 643 |   |
| Other commissions and fees                     |   |                   | 314    |   |          |   | 51.7   | %      |   |   | 207           |   |   |   | -6.3    | % |   |   | 221 |   |
| Securities transactions, net                   |   |                   | 2,056  |   |          |   | 813.8  | %      |   |   | 225           |   |   |   | -28.1   | % |   |   | 313 |   |
| Earnings of bank-owned life insurance          |   |                   | 572    |   |          |   | 35.9   | %      |   |   | 421           |   |   |   | 3.7     | % |   |   | 406 |   |
| Gain (loss) on disposal / write-down of assets |   |                   | (5,015 | )      |          |   | 170.6  | %      |   |   | (1,853        | )      |   |   | -2387.7 | % |   |   | 81 |   |
| Gain (loss) on derivative instrument           |   |                   | 1,002  |   |          |   | 6362.5 | %      |   |   | (16           | )      |   |   | -100.0  | % |   |   | - |   |
| Other noninterest income                       |   |                   | 442    |   |          |   | 61.9   | %      |   |   | 273           |   |   |   | -6.5    | % |   |   | 292 |   |
| Total Noninterest Income                       |   | $                      | 4,535  |   |          |   | 3.0    | %      |   | $      | 4,403         |   |   |   | -26.5   | % |   | $ | 5,991 |   |

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| For the Year Ended December 31,      |   | 2009                   |   |   |          |   |   | 2008   |   |   |          |   |   | 2007   |   |
|--------------------------------------|--------|------------------------|--------|--------|---------------|--------|--------|--------|--------|--------|---------------|--------|--------|--------|--------|
|                                 |   |                   |   |   | Percentage    |   |   |   |   |   | Percentage    |   |   |   |   |
|                                 |   |                   |   |   | Change        |   |   |   |   |   | Change        |   |   |   |   |
|                                 |   | Amount                 |   |   | 2009 vs. 2008 |   |   | Amount |   |   | 2008 vs. 2007 |   |   | Amount |   |
|                                 |   | (Dollars In Thousands) |   |
| Salaries and wages                   |   | $                      | 13,461 |   |          |   | -15.6  | %      |   | $      | 15,940        |   |   |   | -3.0   | % |   | $ | 16,431 |   |
| Deferred loan cost                   |   |                   | (1,423 | )      |          |   | -13.0  | %      |   |   | (1,635        | )      |   |   | -17.0  | % |   |   | (1,969 | ) |
| Employee benefits                    |   |                   | 3,976  |   |          |   | 4.5    | %      |   |   | 3,806         |   |   |   | -7.6   | % |   |   | 4,119 |   |
| Net occupancy expense of premises    |   |                   | 2,305  |   |          |   | -29.9  | %      |   |   | 3,290         |   |   |   | 38.6   | % |   |   | 2,374 |   |
| Furniture and equipment expense      |   |                   | 2,025  |   |          |   | 0.1    | %      |   |   | 2,023         |   |   |   | -11.2  | % |   |   | 2,279 |   |
| Advertising and business development |   |                   | 396    |   |          |   | -32.0  | %      |   |   | 582           |   |   |   | -7.0   | % |   |   | 626 |   |
| Supplies and printing                |   |                   | 360    |   |          |   | -7.7   | %      |   |   | 390           |   |   |   | -15.8  | % |   |   | 463 |   |
| Telephone and internet charges       |   |                   | 651    |   |          |   | -16.2  | %      |   |   | 777           |   |   |   | 22.4   | % |   |   | 635 |   |
| Postage and courier                  |   |                   | 545    |   |          |   | -4.9   | %      |   |   | 573           |   |   |   | -11.2  | % |   |   | 645 |   |
| Legal and accounting fees            |   |                   | 1,000  |   |          |   | 116.0  | %      |   |   | 463           |   |   |   | -17.2  | % |   |   | 559 |   |
| Consulting fees                      |   |                   | 212    |   |          |   | 271.9  | %      |   |   | 57            |   |   |   | -72.7  | % |   |   | 209 |   |
| Director fees and expenses           |   |                   | 547    |   |          |   | -12.5  | %      |   |   | 625           |   |   |   | 57.0   | % |   |   | 398 |   |
| Service charges and fees             |   |                   | 436    |   |          |   | -26.7  | %      |   |   | 595           |   |   |   | -4.3   | % |   |   | 622 |   |
| Deposit insurance expense            |   |                   | 4,138  |   |          |   | 1165.4 | %      |   |   | 327           |   |   |   | 202.8  | % |   |   | 108 |   |
| Foreclosure and reposession expenses |   |                   | 3,291  |   |          |   | 244.2  | %      |   |   | 956           |   |   |   | 380.4  | % |   |   | 199 |   |
| Goodwill impairment                  |   |                   | 5,985  |   |          |   | 100.0  | %      |   |   | -             |   |   |   | 0.0    | % |   |   | - |   |
| Other noninterest expense            |   |                   | 2,668  |   |          |   | 47.0   | %      |   |   | 1,815         |   |   |   | -4.1   | % |   |   | 1,892 |   |
| Total Noninterest Expense            |   | $                      | 40,573 |   |          |   | 32.7   | %      |   | $      | 30,584        |   |   |   | 3.4    | % |   | $ | 29,590 |   |

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IT

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| Cumulative Maturity Gap Analysis |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |    |
|----------------------------------|--------|------------------------|---------|--------|---------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                             |   | 3-Month                |    |   | 6-Month |   |    | 1-Year |   |   | 3-Year  |   |   | Total  |    |
|                             |   | (Dollars in Thousands) |    |
| Regulatory Defined               |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |    |
| Rate Sensitive Assets (RSA)      |   | $                      | 205,978 |   |    | $      | 299,953 |   |   | $      | 426,398 |   |   | $      | 675,605 |   |   | $ | 1,231,945 |   |
| Rate Sensitive Liabilities (RSL) |   |                   | 149,409 |   |    |   | 311,078 |   |   |   | 479,174 |   |   |   | 727,041 |   |   | $ | 1,231,945 |   |
| RSA minus RSL (Gap)              |   | $                      | 56,569  |   |    | $      | (11,125 | )      |   | $      | (52,776 | )      |   | $      | (51,436 | ) |   | $ | - |   |
|                             |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Maturity Gap Ratio (RSA/RSL)     |   |                   | 1.38    |   |    |   | 0.96    |   |   |   | 0.89    |   |   |   | 0.93    |   |   |   | 1.00 |   |

| Cumulative Repricing Gap Analysis |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |      |
|-----------------------------------|--------|------------------------|---------|--------|---------|--------|---------|--------|--------|--------|---------|--------|--------|--------|-----------|
|                              |   | 3-Month                |    |   | 6-Month |   |    | 1-Year |   |   | 3-Year  |   |   | Total  |      |
|                              |   | (Dollars in Thousands) |    |
| Regulatory Defined                |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |      |
| Rate Sensitive Assets (RSA)       |   | $                      | 596,519 |   |    | $      | 640,157 |   |   | $      | 715,247 |   |   | $      | 901,759   |   |   | $ | 1,231,945 |   |
| Rate Sensitive Liabilities (RSL)  |   |                   | 457,754 |   |    |   | 616,162 |   |   |   | 781,979 |   |   |   | 1,002,513 |   |   | $ | 1,231,945 |   |
| RSA minus RSL (Gap)               |   | $                      | 138,765 |   |    | $      | 23,995  |   |   | $      | (66,732 | )      |   | $      | (100,754  | ) |   | $ | - |   |
|                              |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |      |   |   |   |   |   |
| Repricing Gap Ratio (RSA/RSL)     |   |                   | 1.30    |   |    |   | 1.04    |   |   |   | 0.91    |   |   |   | 0.90      |   |   |   | 1.00 |   |
|                              |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |      |   |   |   |   |   |
| Management-Adjusted               |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |      |   |   |   |   |   |
| Rate Sensitive Assets (RSA)       |   | $                      | 599,710 |   |    | $      | 645,529 |   |   | $      | 723,753 |   |   | $      | 914,480   |   |   | $ | 1,231,945 |   |
| Rate Sensitive Liabilities (RSL)  |   |                   | 466,027 |   |    |   | 631,993 |   |   |   | 811,021 |   |   |   | 1,065,865 |   |   | $ | 1,231,945 |   |
| RSA minus RSL (Gap)               |   | $                      | 133,683 |   |    | $      | 13,536  |   |   | $      | (87,268 | )      |   | $      | (151,385  | ) |   | $ | - |   |
|                              |   |                   |    |   |    |   |    |   |   |   |    |   |   |   |      |   |   |   |   |   |
| Repricing Gap Ratio (RSA/RSL)     |   |                   | 1.29    |   |    |   | 1.02    |   |   |   | 0.89    |   |   |   | 0.86      |   |   |   | 1.00 |   |

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| Market      |   | Effect on Net Interest Income |
|-------------|--------|-------------------------------|
| Rate Change |   | Gradual                       |   | Immediate |
| +300 bps    |   | 14.94%                        |   | 30.28% |
| +200 bps    |   | 13.21%                        |   | 19.85% |
| +100 bps    |   | 8.12%                         |   | 9.72% |
| -25 bps     |   | -1.60%                        |   | -1.60% |

IT

Qu

|                                                |   | Quarterly Period Ended |   |
|-----------------------------------------------------|--------|------------------------|--------|
|                                                |   | March 31               |   |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| Year ended December 31, 2009:                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                     |   | $                      | 16,151 |   |   | $ | 16,090 |   |   | $ | 14,816 |   |   | $ | 12,824 |   |
| Interest expense                                    |   |                   | 8,959  |   |   |   | 8,104 |   |   |   | 7,562 |   |   |   | 6,946 |   |
| Net interest income                                 |   |                   | 7,192  |   |   |   | 7,986 |   |   |   | 7,254 |   |   |   | 5,878 |   |
| Provision for loan losses                           |   |                   | 1,750  |   |   |   | 2,000 |   |   |   | 31,438 |   |   |   | 16,000 |   |
| Net interest income after provision for loan losses |   |                   | 5,442  |   |   |   | 5,986 |   |   |   | (24,184 | ) |   |   | (10,122 | ) |
| Other income                                        |   |                   | 2,106  |   |   |   | 2,487 |   |   |   | 889 |   |   |   | (946 | ) |
| Other expenses                                      |   |                   | 8,126  |   |   |   | 8,102 |   |   |   | 7,284 |   |   |   | 17,061 |   |
| Income before income taxes                          |   |                   | (578   | ) |   |   | 371 |   |   |   | (30,579 | ) |   |   | (28,129 | ) |
| Income tax                                          |   |                   | (283   | ) |   |   | 29 |   |   |   | (10,623 | ) |   |   | 3,133 |   |
| Net income                                          |   | $                      | (295   | ) |   | $ | 342 |   |   | $ | (19,956 | ) |   | $ | (31,262 | ) |
|                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                            |   | $                      | (0.03  | ) |   | $ | 0.04 |   |   | $ | (1.93 | ) |   | $ | (2.27 | ) |
| Diluted earnings per share                          |   | $                      | (0.03  | ) |   | $ | 0.04 |   |   | $ | (1.93 | ) |   | $ | (2.27 | ) |
|                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year ended December 31, 2008:                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                     |   | $                      | 19,030 |   |   | $ | 17,460 |   |   | $ | 17,680 |   |   | $ | 16,814 |   |
| Interest expense                                    |   |                   | 9,685  |   |   |   | 8,598 |   |   |   | 8,460 |   |   |   | 9,476 |   |
| Net interest income                                 |   |                   | 9,345  |   |   |   | 8,862 |   |   |   | 9,220 |   |   |   | 7,338 |   |
| Provision for loan losses                           |   |                   | 1,200  |   |   |   | 1,050 |   |   |   | 7,300 |   |   |   | 8,500 |   |
| Net interest income after provision for loan losses |   |                   | 8,145  |   |   |   | 7,812 |   |   |   | 1,920 |   |   |   | (1,162 | ) |
| Other income                                        |   |                   | 1,643  |   |   |   | 1,572 |   |   |   | 1,081 |   |   |   | 107 |   |
| Other expenses                                      |   |                   | 7,829  |   |   |   | 7,191 |   |   |   | 7,510 |   |   |   | 8,053 |   |
| Income before income taxes                          |   |                   | 1,959  |   |   |   | 2,193 |   |   |   | (4,509 | ) |   |   | (9,108 | ) |
| Income tax                                          |   |                   | 662    |   |   |   | 730 |   |   |   | (1,649 | ) |   |   | (3,297 | ) |
| Net income                                          |   | $                      | 1,297  |   |   | $ | 1,463 |   |   | $ | (2,860 | ) |   | $ | (5,811 | ) |
|                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                            |   | $                      | 0.14   |   |   | $ | 0.16 |   |   | $ | (0.31 | ) |   | $ | (0.62 | ) |
| Diluted earnings per share                          |   | $                      | 0.14   |   |   | $ | 0.15 |   |   | $ | (0.32 | ) |   | $ | (0.60 | ) |

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MA

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|   | PAB BANKSHARES, INC.      |                         |
|--------|---------------------------|------------------------------|
|   |                      |                         |
|   | /s/ Donald J. Torbert, Jr | /s/ Nicole S. Stokes         |
|   | Donald J. Torbert, Jr.    | Nicole S. Stokes             |
|   | President and             | Executive Vice President and |
|   | Chief Executive Officer   | Chief Financial Officer      |
|   |                      |                         |
|   | March 8, 2010             | March 8, 2010                |
|   | Date                      | Date                         |

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RE

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RE

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| PAB BANKSHARES, INC. AND SUBSIDIARIES                                                |   |
|--------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                          |   |
| DECEMBER 31, 2009 AND 2008                                                           |   |
|                                                                                 |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |
|                                                                                 |   | 2009 |   |   | 2008 |   |
|                                                                                 |   |   |   |   |   |   |
| ASSETS                                                                               |   |   |   |   |   |   |
| Cash and balances due from banks                                                     |   | $ | 16,641,978 |   |   | $ | 18,104,521 |   |
| Interest-bearing deposits in other banks                                             |   |   | 169,732,493 |   |   |   | 118,244,771 |   |
| Federal funds sold                                                                   |   |   | 103,825 |   |   |   | 1,054,719 |   |
| Investment securities                                                                |   |   | 111,541,113 |   |   |   | 176,613,411 |   |
| Restricted equity securities                                                         |   |   | 9,459,600 |   |   |   | 9,159,904 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Loans                                                                                |   |   | 805,313,687 |   |   |   | 956,687,391 |   |
| Allowance for loan losses                                                            |   |   | (29,314,145 | ) |   |   | (19,373,625 | ) |
| Net loans                                                                            |   |   | 775,999,542 |   |   |   | 937,313,766 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                          |   |   | 18,609,472 |   |   |   | 19,984,288 |   |
| Goodwill                                                                             |   |   | - |   |   |   | 5,984,604 |   |
| Cash value of bank-owned life insurance policies                                     |   |   | 12,874,651 |   |   |   | 12,302,586 |   |
| Foreclosed assets                                                                    |   |   | 92,117,123 |   |   |   | 25,268,901 |   |
| Other assets                                                                         |   |   | 24,864,778 |   |   |   | 26,071,460 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Total assets                                                                         |   | $ | 1,231,944,575 |   |   | $ | 1,350,102,931 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                 |   |   |   |   |   |   |   |   |
| Deposits:                                                                            |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand                                                           |   | $ | 100,458,230 |   |   | $ | 91,114,337 |   |
| Interest-bearing demand and savings                                                  |   |   | 250,232,355 |   |   |   | 252,122,046 |   |
| Time                                                                                 |   |   | 694,524,617 |   |   |   | 780,466,875 |   |
| Total deposits                                                                       |   |   | 1,045,215,202 |   |   |   | 1,123,703,258 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Federal funds purchased and securities sold under agreements to repurchase           |   |   | 10,011,024 |   |   |   | 8,954,253 |   |
| Advances from the Federal Home Loan Bank of Atlanta                                  |   |   | 90,139,501 |   |   |   | 109,703,917 |   |
| Guaranteed preferred beneficial interests in debentures (trust preferred securities) |   |   | 10,310,000 |   |   |   | 10,310,000 |   |
| Other borrowings                                                                     |   |   | 20,000,000 |   |   |   | - |   |
| Other liabilities                                                                    |   |   | 5,682,200 |   |   |   | 5,830,761 |   |
| Total liabilities                                                                    |   |   | 1,181,357,927 |   |   |   | 1,258,502,189 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Stockholders' equity:                                                                |   |   |   |   |   |   |   |   |
| Preferred stock, no par value; 1,500,000 shares authorized; no shares issued         |   |   | - |   |   |   | - |   |
| Common stock, no par value; 98,500,000 shares authorized;                            |   |   |   |   |   |   |   |   |
| 13,795,040 and 9,324,407 shares issued and outstanding                               |   |   | 1,217,065 |   |   |   | 1,217,065 |   |
| Additional paid-in capital                                                           |   |   | 37,348,508 |   |   |   | 24,225,407 |   |
| Retained earnings                                                                    |   |   | 11,295,000 |   |   |   | 62,467,000 |   |
| Accumulated other comprehensive income                                               |   |   | 726,075 |   |   |   | 3,691,270 |   |
| Total stockholders' equity                                                           |   |   | 50,586,648 |   |   |   | 91,600,742 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                           |   | $ | 1,231,944,575 |   |   | $ | 1,350,102,931 |   |

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| PAB BANKSHARES, INC. AND SUBSIDIARIES                         |   |
|---------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF INCOME (LOSS)                      |   |
| YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007                  |   |
|                                                          |   |
|                                                          |   |   |   |   |   |   |   |   |   |
|                                                          |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                          |   |   |   |   |   |   |   |   |   |
| Interest income:                                              |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                    |   | $ | 52,307,132 |   |   | $ | 61,686,147 |   |   | $ | 74,060,094 |   |
| Interest and dividends on investment securities:              |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                       |   |   | 6,622,165 |   |   |   | 7,678,742 |   |   |   | 8,210,696 |   |
| Nontaxable                                                    |   |   | 628,718 |   |   |   | 1,294,165 |   |   |   | 1,214,213 |   |
| Other interest income                                         |   |   | 323,434 |   |   |   | 325,028 |   |   |   | 1,190,678 |   |
| Total interest income                                         |   |   | 59,881,449 |   |   |   | 70,984,082 |   |   |   | 84,675,681 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                          |   |   | 26,293,652 |   |   |   | 31,314,422 |   |   |   | 36,887,599 |   |
| Interest on Federal Home Loan Bank advances                   |   |   | 4,150,946 |   |   |   | 3,955,870 |   |   |   | 4,068,962 |   |
| Interest on other borrowings                                  |   |   | 1,126,633 |   |   |   | 948,152 |   |   |   | 1,253,271 |   |
| Total interest expense                                        |   |   | 31,571,231 |   |   |   | 36,218,444 |   |   |   | 42,209,832 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                           |   |   | 28,310,218 |   |   |   | 34,765,638 |   |   |   | 42,465,849 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                     |   |   | 51,187,987 |   |   |   | 18,050,000 |   |   |   | 2,400,000 |   |
| Net interest income (expense) after provision for loan losses |   |   | (22,877,769 | ) |   |   | 16,715,638 |   |   |   | 40,065,849 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                           |   |   | 3,528,008 |   |   |   | 3,682,866 |   |   |   | 3,616,552 |   |
| Other fee income                                              |   |   | 1,950,406 |   |   |   | 1,671,688 |   |   |   | 1,282,167 |   |
| Securities transactions, net                                  |   |   | 2,055,785 |   |   |   | 225,168 |   |   |   | 312,988 |   |
| Gain (loss) on sale and write-down of other assets            |   |   | (5,014,986 | ) |   |   | (1,853,261 | ) |   |   | 80,851 |   |
| Gain (loss) on derivative instrument                          |   |   | 1,001,966 |   |   |   | (16,011 | ) |   |   | - |   |
| Other noninterest income                                      |   |   | 1,014,088 |   |   |   | 692,380 |   |   |   | 698,709 |   |
| Total other income                                            |   |   | 4,535,267 |   |   |   | 4,402,830 |   |   |   | 5,991,267 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expenses:                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits expense                        |   |   | 16,014,560 |   |   |   | 18,110,278 |   |   |   | 18,581,881 |   |
| Occupancy expense of premises                                 |   |   | 2,304,976 |   |   |   | 3,289,742 |   |   |   | 2,373,917 |   |
| Furniture and equipment expense                               |   |   | 2,024,677 |   |   |   | 2,023,117 |   |   |   | 2,278,600 |   |
| Deposit insurance expense                                     |   |   | 4,137,772 |   |   |   | 327,496 |   |   |   | 108,263 |   |
| Foreclosed asset expense                                      |   |   | 3,291,341 |   |   |   | 956,405 |   |   |   | 199,447 |   |
| Goodwill impairment expense                                   |   |   | 5,984,604 |   |   |   | - |   |   |   | - |   |
| Other noninterest expense                                     |   |   | 6,815,293 |   |   |   | 5,877,030 |   |   |   | 6,048,057 |   |
| Total other expenses                                          |   |   | 40,573,223 |   |   |   | 30,584,068 |   |   |   | 29,590,165 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income tax expense (benefit)             |   |   | (58,915,725 | ) |   |   | (9,465,600 | ) |   |   | 16,466,951 |   |
| Income tax expense (benefit)                                  |   |   | (7,743,725 | ) |   |   | (3,554,335 | ) |   |   | 5,681,236 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                             |   | $ | (51,172,000 | ) |   | $ | (5,911,265 | ) |   | $ | 10,785,715 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per common share:                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                         |   | $ | (4.78 | ) |   | $ | (0.63 | ) |   | $ | 1.12 |   |
| Diluted                                                       |   | $ | (4.78 | ) |   | $ | (0.63 | ) |   | $ | 1.11 |   |

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| PAB BANKSHARES, INC. AND SUBSIDIARIES                                                                                                        |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)                                                                                       |   |
| YEARS ENDED DECEMBER 31, 2009 2008 AND 2007                                                                                                  |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                                            |   | $ | (51,172,000 | ) |   | $ | (5,911,265 | ) |   | $ | 10,785,715 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss):                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on cash flow hedge during the period,net of tax (benefit) of ($653,162); $784,099; and $281,360                    |   |   | (1,267,899 | ) |   |   | 1,550,818 |   |   |   | 506,137 |   |
| Reclassification adjustment for (gains) losses on cash flow hedge included in net income, net of tax (benefit) of $340,668; ($5,444);and $0  |   |   | (661,298 | ) |   |   | 10,567 |   |   |   | - |   |
| Unrealized holding gains on securities available for sale arising during the period, net of tax of $165,020; $734,845; and 809,190           |   |   | 320,820 |   |   |   | 1,435,381 |   |   |   | 1,502,781 |   |
| Reclassification adjustment for gains on securities available for sale included in net income, net of tax of $698,967; $76,557; and $109,546 |   |   | (1,356,818 | ) |   |   | (148,611 | ) |   |   | (203,442 | ) |
|                                                                                                                                         |   |   | (2,965,195 | ) |   |   | 2,848,155 |   |   |   | 1,805,476 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                                  |   | $ | (54,137,195 | ) |   | $ | (3,063,110 | ) |   | $ | 12,591,191 |   |

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| PAB BANKSHARES, INC. AND SUBSIDIARIES                    |   |
|----------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY    |   |
| YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007             |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                     |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Other |   |   |   |   |
|                                                     |   | Common Stock |   |   | Paid-in |   |   | Retained |   |   | Comprehensive |   |   |   |   |
|                                                     |   | Shares |   |   | Stated Value |   |   | Capital |   |   | Earnings |   |   | Income (Loss) |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                               |   |   | 9,504,969 |   |   | $ | 1,217,065 |   |   | $ | 27,584,852 |   |   | $ | 67,476,178 |   |   | $ | (962,361 | ) |   | $ | 95,315,734 |   |
| Net income                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,785,715 |   |   |   | - |   |   |   | 10,785,715 |   |
| Other comprehensive income                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,805,476 |   |   |   | 1,805,476 |   |
| Cash dividends declared,$.58 per share                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,439,041 | ) |   |   | - |   |   |   | (5,439,041 | ) |
| Stock acquired and cancelled under stock repurchase plan |   |   | (344,492 | ) |   |   | - |   |   |   | (5,894,104 | ) |   |   | - |   |   |   | - |   |   |   | (5,894,104 | ) |
| Stock-based compensation                                 |   |   | - |   |   |   | - |   |   |   | 410,851 |   |   |   | - |   |   |   | - |   |   |   | 410,851 |   |
| Stock options exercised                                  |   |   | 62,740 |   |   |   | - |   |   |   | 691,341 |   |   |   | - |   |   |   | - |   |   |   | 691,341 |   |
| Balance, December 31, 2007                               |   |   | 9,223,217 |   |   |   | 1,217,065 |   |   |   | 22,792,940 |   |   |   | 72,822,852 |   |   |   | 843,115 |   |   |   | 97,675,972 |   |
| Net loss                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,911,265 | ) |   |   | - |   |   |   | (5,911,265 | ) |
| Other comprehensive income                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,848,155 |   |   |   | 2,848,155 |   |
| Cash dividends declared,$.24 per share                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,195,622 | ) |   |   | - |   |   |   | (2,195,622 | ) |
| 2% stock dividend declared                               |   |   | 183,739 |   |   |   | - |   |   |   | 2,248,965 |   |   |   | (2,248,965 | ) |   |   | - |   |   |   | - |   |
| Stock acquired and cancelled under stock repurchase plan |   |   | (86,065 | ) |   |   | - |   |   |   | (1,162,521 | ) |   |   | - |   |   |   | - |   |   |   | (1,162,521 | ) |
| Stock-based compensation                                 |   |   | - |   |   |   | - |   |   |   | 310,043 |   |   |   | - |   |   |   | - |   |   |   | 310,043 |   |
| Stock options exercised                                  |   |   | 3,516 |   |   |   | - |   |   |   | 35,980 |   |   |   | - |   |   |   | - |   |   |   | 35,980 |   |
| Balance, December 31, 2008                               |   |   | 9,324,407 |   |   |   | 1,217,065 |   |   |   | 24,225,407 |   |   |   | 62,467,000 |   |   |   | 3,691,270 |   |   | $ | 91,600,742 |   |
| Net loss                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (51,172,000 | ) |   |   | - |   |   |   | (51,172,000 | ) |
| Other comprehensive loss                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,965,195 | ) |   |   | (2,965,195 | ) |
| Proceeds from private placement of capital               |   |   | 4,470,633 |   |   |   | - |   |   |   | 12,772,471 |   |   |   | - |   |   |   | - |   |   |   | 12,772,471 |   |
| Stock-based compensation                                 |   |   | - |   |   |   | - |   |   |   | 350,630 |   |   |   | - |   |   |   | - |   |   |   | 350,630 |   |
| Balance, December 31, 2009                               |   |   | 13,795,040 |   |   | $ | 1,217,065 |   |   | $ | 37,348,508 |   |   | $ | 11,295,000 |   |   | $ | 726,075 |   |   | $ | 50,586,648 |   |

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| PAB BANKSHARES, INC. AND SUBSIDIARIES                                                    |   |
|------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                    |   |
| YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007                                             |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                     |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                        |   | $ | (51,172,000 | ) |   | $ | (5,911,265 | ) |   | $ | 10,785,715 |   |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, amortization and accretion, net                                            |   |   | 1,429,840 |   |   |   | 1,713,629 |   |   |   | 1,716,530 |   |
| Provision for loan losses                                                                |   |   | 51,187,987 |   |   |   | 18,050,000 |   |   |   | 2,400,000 |   |
| Provision for deferred taxes                                                             |   |   | 7,847,947 |   |   |   | (2,671,456 | ) |   |   | (644,268 | ) |
| Goodwill impairment                                                                      |   |   | 5,984,604 |   |   |   | - |   |   |   | - |   |
| Net realized gain on securities transactions                                             |   |   | (2,055,785 | ) |   |   | (225,168 | ) |   |   | (312,988 | ) |
| Loss (gain) on disposal of assets/writedowns of assets                                   |   |   | 5,014,986 |   |   |   | 1,853,261 |   |   |   | (70,860 | ) |
| Net realized (gain) loss on derivative instruments                                       |   |   | (1,001,966 | ) |   |   | 16,011 |   |   |   | - |   |
| Stock-based compensation expense                                                         |   |   | 350,630 |   |   |   | 310,043 |   |   |   | 410,851 |   |
| Increase in cash value of bank-owned life insurance                                      |   |   | (572,065 | ) |   |   | (421,202 | ) |   |   | (406,420 | ) |
| Increase (decrease) in deferred compensation accrual                                     |   |   | 154,052 |   |   |   | (235,904 | ) |   |   | (226,951 | ) |
| Decrease in retirement and severance accruals                                            |   |   | - |   |   |   | - |   |   |   | (159,799 | ) |
| Decrease in interest receivable                                                          |   |   | 1,138,406 |   |   |   | 1,684,196 |   |   |   | 8,761 |   |
| Increase (decrease) in interest payable                                                  |   |   | (386,209 | ) |   |   | 133,993 |   |   |   | 78,775 |   |
| Net change in taxes receivable and taxes payable                                         |   |   | (11,155,122 | ) |   |   | (2,512,780 | ) |   |   | (957,764 | ) |
| Net decrease in accrued expenses and other liabilities                                   |   |   | (721,442 | ) |   |   | (1,539,556 | ) |   |   | (485,914 | ) |
| Net cash provided by operating activities                                                |   |   | 6,043,863 |   |   |   | 10,243,802 |   |   |   | 12,135,668 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase) decrease in interest-bearing deposits in other banks                          |   |   | (51,487,722 | ) |   |   | (117,851,495 | ) |   |   | 157,031 |   |
| (Increase) decrease  in federal funds sold                                     |   |   | 950,894 |   |   |   | (495,275 | ) |   |   | 41,053,284 |   |
| Purchase of debt securities                                                              |   |   | (62,147,885 | ) |   |   | (57,790,529 | ) |   |   | (43,392,095 | ) |
| Proceeds from sales of debt securities                                                   |   |   | 85,415,386 |   |   |   | 36,459,026 |   |   |   | 19,540,964 |   |
| Proceeds from calls of debt securities                                                   |   |   | 15,602,000 |   |   |   | 21,182,927 |   |   |   | 2,996,778 |   |
| Proceeds from maturities and paydowns of debt securities                                 |   |   | 26,155,093 |   |   |   | 12,693,713 |   |   |   | 11,734,367 |   |
| Purchase of equity securities                                                            |   |   | (670,523 | ) |   |   | (1,664,593 | ) |   |   | (65,858 | ) |
| Redemption of equity securities                                                          |   |   | 691,123 |   |   |   | 452,100 |   |   |   | 886,151 |   |
| Net (increase) decrease  in loans                                              |   |   | 28,876,191 |   |   |   | (70,519,785 | ) |   |   | (108,962,052 | ) |
| Purchase of premises and equipment                                                       |   |   | (592,617 | ) |   |   | (2,341,941 | ) |   |   | (1,243,446 | ) |
| Proceeds from disposal of assets                                                         |   |   | 11,397,940 |   |   |   | 3,991,067 |   |   |   | 2,234,053 |   |
| Net cash provided by (used in) investing activities                                      |   |   | 54,189,880 |   |   |   | (175,884,785 | ) |   |   | (75,060,823 | ) |

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| PAB BANKSHARES, INC. AND SUBSIDIARIES                                                              |   |
|----------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                              |   |
| YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007                                                       |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                               |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in deposits                                                                |   |   | (78,238,056 | ) |   |   | 143,554,240 |   |   |   | 71,666,026 |   |
| Net increase (decrease) in federal funds purchased and securities sold under repurchase agreements |   |   | 1,056,771 |   |   |   | (7,221,117 | ) |   |   | 8,526,706 |   |
| Advances from Federal Home Loan Bank                                                               |   |   | 15,000,000 |   |   |   | 41,000,000 |   |   |   | 47,500,000 |   |
| Payments on Federal Home Loan Bank advances                                                        |   |   | (34,564,416 | ) |   |   | (17,593,788 | ) |   |   | (51,392,997 | ) |
| Proceed from issuance of long-term debt                                                            |   |   | 20,000,000 |   |   |   | - |   |   |   | - |   |
| Proceeds from termination of cash flow hedge derivative instrument                                 |   |   | 2,276,944 |   |   |   | - |   |   |   | - |   |
| Proceeds from private placement of capital                                                         |   |   | 12,772,471 |   |   |   | - |   |   |   | - |   |
| Dividends paid                                                                                     |   |   | - |   |   |   | (3,532,990 | ) |   |   | (5,432,369 | ) |
| Proceeds from the exercise of stock options                                                        |   |   | - |   |   |   | 35,980 |   |   |   | 691,341 |   |
| Purchase of cash flow hedge derivative instrument                                                  |   |   | - |   |   |   | (786,000 | ) |   |   | - |   |
| Acquisition of stock under stock repurchase plans                                                  |   |   | - |   |   |   | (1,162,521 | ) |   |   | (5,894,104 | ) |
| Net cash provided by (used in) financing activities                                                |   |   | (61,696,286 | ) |   |   | 154,293,804 |   |   |   | 65,664,603 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and balances due from banks                                        |   | $ | (1,462,543 | ) |   | $ | (11,347,179 | ) |   | $ | 2,739,448 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and balances due from banks at beginning of period                                            |   |   | 18,104,521 |   |   |   | 29,451,700 |   |   |   | 26,712,252 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and balances due from banks at end of period                                                  |   | $ | 16,641,978 |   |   | $ | 18,104,521 |   |   | $ | 29,451,700 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                                  |   |   |   |   |   |   |   |   |   |
| Cash paid (received) during the period for:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                           |   | $ | 31,957,440 |   |   | $ | 36,084,451 |   |   | $ | 42,131,057 |   |
| Taxes                                                                                              |   | $ | (3,959,872 | ) |   | $ | 2,044,000 |   |   | $ | 5,770,337 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| NONCASH INVESTING AND FINANCING TRANSACTIONS                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in unrealized gains on securities available for sale                           |   | $ | (1,569,945 | ) |   | $ | 1,945,058 |   |   | $ | 1,998,983 |   |
| Increase (decrease) in unrealized gains on cash flow hedge                                         |   | $ | (2,917,308 | ) |   | $ | 2,350,929 |   |   | $ | 787,496 |   |
| Transfer of loans to foreclosed assets                                                             |   | $ | 81,250,046 |   |   | $ | 23,598,987 |   |   | $ | 7,417,079 |   |

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PA

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| Banking Locations                | Number of Offices             |
|----------------------------------|-------------------------------|
| South Georgia Market:            |                          |
| Valdosta, Lowndes County         | 3 (including the main office) |
| Lake Park, Lowndes County        | 1                             |
| Adel, Cook County5               | 1                             |
| Bainbridge, Decatur County       | 3                             |
| Cairo, Grady County              | 1                             |
| Statesboro, Bulloch County6      | 2                             |
| Baxley, Appling County7          | 1                             |
| Hazlehurst, Jeff Davis County8   | 1                             |
| North Georgia Market:            |                          |
| McDonough, Henry County          | 1                             |
| Stockbridge, Henry County        | 1                             |
| Oakwood, Hall County             | 1                             |
| Athens, Oconee County            | 1                             |
| Cumming, Forsyth County2         | 1 (loan production office)    |
| Florida Market:                  |                          |
| Ocala, Marion County             | 1                             |
| St. Augustine, St. Johns County2 | 1 (loan production office)    |

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| Securities Available for Sale                |   | Amortized Cost |        |   | Gross Unrealized Gains |   |      | Gross Unrealized Losses |   |   | Fair Value |   |
|----------------------------------------------|--------|----------------|-------------|--------|------------------------|--------|-----------|-------------------------|--------|--------|------------|--------|
| December 31, 2009:                           |   |           |        |   |                   |   |      |                    |   |   |       |   |
| Debt securities:                             |   |           |        |   |                   |   |      |                    |   |   |       |   |
| U.S. Government-sponsored enterprises (GSEs) |   | $              | 30,452,647  |   |                   | $      | 262,292   |                    |   | $      | (247,182   | )      |   | $ | 30,467,757 |   |
| State and municipal securities               |   |           | 9,997,494   |   |                   |   | 117,577   |                    |   |   | (393,701   | )      |   |   | 9,721,370 |   |
| Corporate                                    |   |           | 4,027,832   |   |                   |   | -         |                    |   |   | (198,492   | )      |   |   | 3,829,340 |   |
| Mortgage-backed                              |   |           |        |   |                   |   |      |                    |   |   |       |   |   |   |   |   |
| GSE residential                              |   |           | 65,585,084  |   |                   |   | 1,379,928 |                    |   |   | (217,795   | )      |   |   | 66,747,217 |   |
| Private-label residential                    |   |           | 606,719     |   |                   |   | -         |                    |   |   | (5,271     | )      |   |   | 601,448 |   |
| Private-label commercial                     |   |           | 176,449     |   |                   |   | -         |                    |   |   | (2,468     | )      |   |   | 173,981 |   |
| Total securities available for sale          |   | $              | 110,846,225 |   |                   | $      | 1,759,797 |                    |   | $      | (1,064,909 | )      |   | $ | 111,541,113 |   |

| Securities Available for Sale                |   | Amortized Cost |        |   | Gross Unrealized Gains |   |      | Gross Unrealized Losses |   |   | Fair Value |   |
|----------------------------------------------|--------|----------------|-------------|--------|------------------------|--------|-----------|-------------------------|--------|--------|------------|--------|
| December 31, 2008:                           |   |           |        |   |                   |   |      |                    |   |   |       |   |
| Debt securities:                             |   |           |        |   |                   |   |      |                    |   |   |       |   |
| U.S. Government-sponsored enterprises (GSEs) |   | $              | 34,425,092  |   |                   | $      | 878,996   |                    |   | $      | (947       | )      |   | $ | 35,303,141 |   |
| State and municipal securities               |   |           | 31,591,669  |   |                   |   | 151,276   |                    |   |   | (1,381,782 | )      |   |   | 30,361,163 |   |
| Corporate                                    |   |           | 7,456,382   |   |                   |   | 69,975    |                    |   |   | (561,857   | )      |   |   | 6,964,500 |   |
| Mortgage-backed                              |   |           |        |   |                   |   |      |                    |   |   |       |   |   |   |   |   |
| GSE residential                              |   |           | 99,167,402  |   |                   |   | 3,196,157 |                    |   |   | (1,678     | )      |   |   | 102,361,881 |   |
| Private-label residential                    |   |           | 800,188     |   |                   |   | -         |                    |   |   | (80,184    | )      |   |   | 720,004 |   |
| Private-label commercial                     |   |           | 338,951     |   |                   |   | -         |                    |   |   | (7,384     | )      |   |   | 331,567 |   |
| Total debt securities                        |   |           | 173,779,684 |   |                   |   | 4,296,404 |                    |   |   | (2,033,832 | )      |   |   | 176,042,256 |   |
| Marketable equity securities                 |   |           | 568,894     |   |                   |   | 2,261     |                    |   |   | -          |   |   |   | 571,155 |   |
| Total securities available for sale          |   | $              | 174,348,578 |   |                   | $      | 4,298,665 |                    |   | $      | (2,033,832 | )      |   | $ | 176,613,411 |   |

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|                       |   | AmortizedCost |        |   | FairValue |   |
|----------------------------|--------|---------------|-------------|--------|-----------|--------|
| Due in one year or less    |   | $             | -           |   |      | $      | - |   |
| Due from one to five years |   |          | 1,000,000   |   |      |   | 856,840 |   |
| Due from five to ten years |   |          | 15,748,842  |   |      |   | 15,850,669 |   |
| Due after ten years        |   |          | 27,729,131  |   |      |   | 27,310,959 |   |
| Mortgage-backed securities |   |          | 66,368,252  |   |      |   | 67,522,645 |   |
|                       |   | $             | 110,846,225 |   |      | $      | 111,541,113 |   |

|                                         |   | 2009   |      |   | 2008   |   |     | 2007   |   |
|----------------------------------------------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|
| Gross gains on securities transactions       |   | $      | 2,826,772 |   |   | $      | 338,853  |   |   | $ | 434,217 |   |
| Gross losses on securities transactions      |   |   | (770,987  | )      |   |   | (113,685 | )      |   |   | (121,229 | ) |
| Net realized gain on securities transactions |   | $      | 2,055,785 |   |   | $      | 225,168  |   |   | $ | 312,988 |   |

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|                                         |   | Less Than Twelve Months |      |   | Over Twelve Months |   |       |                    |   |
|----------------------------------------------|--------|-------------------------|-----------|--------|--------------------|--------|------------|-------------------------|--------|
|                                         |   | Gross Unrealized Losses |      |   | Fair Value         |   |       | Gross Unrealized Losses |   |   | Fair Value |   |   | Total Unrealized Losses |   |
|                                         |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |
| Available for Sale Securities                |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |
| December 31, 2009:                           |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |
| Debt securities:                             |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |
| U.S. Government-sponsored enterprises (GSEs) |   | $                       | 247,182   |   |               | $      | 16,526,513 |                    |   | $ | - |   |   | $ | - |   |   | $ | 247,182 |   |
| State and municipal securities               |   |                    | 8,504     |   |               |   | 584,492    |                    |   |   | 385,197 |   |   |   | 4,917,796 |   |   |   | 393,701 |   |
| Corporate                                    |   |                    | 143,160   |   |               |   | 856,840    |                    |   |   | 55,332 |   |   |   | 972,500 |   |   |   | 198,492 |   |
| Mortgage-backed                              |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE residential                              |   |                    | 217,795   |   |               |   | 15,005,641 |                    |   |   | - |   |   |   | - |   |   |   | 217,795 |   |
| Private-label residential                    |   |                    | -         |   |               |   | -          |                    |   |   | 5,271 |   |   |   | 601,448 |   |   |   | 5,271 |   |
| Private-label commercial                     |   |                    | -         |   |               |   | -          |                    |   |   | 2,468 |   |   |   | 173,981 |   |   |   | 2,468 |   |
| Total securities available for sale          |   | $                       | 616,641   |   |               | $      | 32,973,486 |                    |   | $ | 448,268 |   |   | $ | 6,665,725 |   |   | $ | 1,064,909 |   |
|                                         |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for Sale Securities                |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008:                           |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities:                             |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government-sponsored enterprises (GSEs) |   | $                       | 947       |   |               | $      | 3,019,053  |                    |   | $ | - |   |   | $ | - |   |   | $ | 947 |   |
| State and municipal securities               |   |                    | 1,298,823 |   |               |   | 18,905,887 |                    |   |   | 82,959 |   |   |   | 875,407 |   |   |   | 1,381,782 |   |
| Corporate                                    |   |                    | 534,776   |   |               |   | 2,491,548  |                    |   |   | 27,081 |   |   |   | 470,462 |   |   |   | 561,857 |   |
| Mortgage-backed                              |   |                    |      |   |               |   |       |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE residential                              |   |                    | 825       |   |               |   | 1,844,464  |                    |   |   | 853 |   |   |   | 886,992 |   |   |   | 1,678 |   |
| Private-label residential                    |   |                    | -         |   |               |   | -          |                    |   |   | 80,184 |   |   |   | 720,005 |   |   |   | 80,184 |   |
| Private-label commercial                     |   |                    | 7,384     |   |               |   | 331,567    |                    |   |   | - |   |   |   | - |   |   |   | 7,384 |   |
| Total securities available for sale          |   | $                       | 1,842,755 |   |               | $      | 26,592,519 |                    |   | $ | 191,077 |   |   | $ | 2,952,866 |   |   | $ | 2,033,832 |   |

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|                               |   | December 31, |      |
|------------------------------------|--------|-------------------|-----------|
|                               |   | 2009              |      |   | 2008 |   |
| Federal Reserve Bank stock         |   | $                 | 2,182,500 |   |   | $ | 1,800,000 |   |
| Federal Home Loan Bank stock       |   |              | 7,277,100 |   |   |   | 7,099,100 |   |
| Silverton Financial Services, Inc. |   |              | -         |   |   |   | 260,804 |   |
|                               |   | $                 | 9,459,600 |   |   | $ | 9,159,904 |   |

|                                          |   | 2009   |        |   | 2008   |   |
|-----------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Commercial and financial                      |   | $      | 84,770,651  |   |   | $      | 87,529,469 |   |
| Agricultural                                  |   |   | 40,214,621  |   |   |   | 48,646,715 |   |
| Real estate – construction              |   |   | 204,662,668 |   |   |   | 315,786,248 |   |
| Real estate – commercial                |   |   | 275,927,260 |   |   |   | 276,644,846 |   |
| Real estate – residential               |   |   | 174,879,077 |   |   |   | 196,306,153 |   |
| Installment loans to individuals and others   |   |   | 24,854,249  |   |   |   | 31,616,134 |   |
| Overdrafts                                    |   |   | 94,835      |   |   |   | 467,958 |   |
|                                          |   |   | 805,403,361 |   |   |   | 956,997,523 |   |
| Deferred loan fees and unearned interest, net |   |   | (89,674     | )      |   |   | (310,132 | ) |
|                                          |   |   | 805,313,687 |   |   |   | 956,687,391 |   |
| Allowance for loan losses                     |   |   | (29,314,145 | )      |   |   | (19,373,625 | ) |
|                                          |   | $      | 775,999,542 |   |   | $      | 937,313,766 |   |

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|                            |   | 2009   |        |   | 2008   |   |        | 2007   |   |
|---------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
| Balance, beginning of year      |   | $      | 19,373,625  |   |   | $      | 12,905,938  |   |   | $ | 11,006,097 |   |
| Provision charged to operations |   |   | 51,187,987  |   |   |   | 18,050,000  |   |   |   | 2,400,000 |   |
| Loans charged-off               |   |   | (41,748,277 | )      |   |   | (12,127,445 | )      |   |   | (868,201 | ) |
| Recoveries                      |   |   | 500,810     |   |   |   | 545,132     |   |   |   | 368,042 |   |
| Balance, end of year            |   | $      | 29,314,145  |   |   | $      | 19,373,625  |   |   | $ | 12,905,938 |   |

|                                              |   | 2009   |       |   | 2008   |   |
|---------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Loans accounted for on a nonaccrual basis         |   | $      | 92,271,684 |   |   | $      | 54,902,747 |   |
| Troubled debt restructurings not included above   |   |   | 881,189    |   |   |   | 311,051 |   |
| Loans past due 90 days or more and still accruing |   |   | 14,987     |   |   |   | 206,442 |   |
| Total impaired loans                              |   | $      | 93,167,860 |   |   | $      | 55,420,240 |   |
| Valuation allowance related to impaired loans     |   | $      | 12,444,230 |   |   | $      | 4,075,879 |   |

|                                                                                                                                    |   | 2009 |       |   | 2008   |   |       | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------|------------|--------|--------|--------|------------|--------|--------|
| Average recorded investment in impaired loans                                                                                           |   | $    | 68,180,885 |   |   | $      | 38,784,878 |   |   | $ | 4,883,934 |   |
| Approximate amount of interest income that would have been recorded if the impaired loans had remained current and on an accrual status |   | $    | 5,950,857  |   |   | $      | 3,592,700  |   |   | $ | 753,000 |   |
| Interest income recognized on a cash basis on impaired loans                                                                            |   | $    | 104,166    |   |   | $      | 64,785     |   |   | $ | 33,658 |   |

| Balance, beginning of year                     |   | $      | 37,948,775  |   |
|------------------------------------------------|--------|--------|-------------|--------|
| Advances                                       |   |   | 21,348,906  |   |
| Repayments                                     |   |   | (30,557,864 | )      |
| Transactions due to changes in related parties |   |   | (13,116,069 | )      |
| Balance, end of year                           |   | $      | 15,623,748  |   |

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|                              |   | 2009   |        |   | 2008   |   |
|-----------------------------------|--------|--------|-------------|--------|--------|--------|
| Land                              |   | $      | 6,201,540   |   |   | $      | 6,201,540 |   |
| Buildings and improvements        |   |   | 18,008,918  |   |   |   | 18,075,242 |   |
| Furniture, fixtures and equipment |   |   | 10,525,694  |   |   |   | 10,656,603 |   |
|                              |   |   | 34,736,152  |   |   |   | 34,933,385 |   |
| Less accumulated depreciation     |   |   | (16,126,680 | )      |   |   | (14,949,097 | ) |
|                              |   | $      | 18,609,472  |   |   | $      | 19,984,288 |   |

| Year   |   | Amount |      |
|--------|--------|--------|-----------|
| 2010   |   |   | 345,319   |   |
| 2011   |   |   | 324,831   |   |
| 2012   |   |   | 196,408   |   |
| 2013   |   |   | 182,608   |   |
| 2014   |   |   | 48,000    |   |
| Later  |   |   | -         |   |
|   |   | $      | 1,097,166 |   |

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|                    |   | 2009   |        |   | 2008   |   |
|-------------------------|--------|--------|-------------|--------|--------|--------|
| Interest-bearing demand |   | $      | 214,580,696 |   |   | $      | 219,167,480 |   |
| Savings                 |   |   | 35,651,658  |   |   |   | 32,954,566 |   |
| Time, $100,000 and over |   |   | 379,134,206 |   |   |   | 361,431,146 |   |
| Other time              |   |   | 315,390,411 |   |   |   | 419,035,729 |   |
|                    |   | $      | 944,756,971 |   |   | $      | 1,032,588,921 |   |

|                    |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|-------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Interest-bearing demand |   | $      | 1,190,085  |   |   | $      | 5,238,099  |   |   | $ | 11,049,142 |   |
| Savings                 |   |   | 89,241     |   |   |   | 203,947    |   |   |   | 563,840 |   |
| Time, $100,000 and over |   |   | 12,705,483 |   |   |   | 11,857,118 |   |   |   | 10,064,962 |   |
| Other time              |   |   | 12,308,843 |   |   |   | 14,015,258 |   |   |   | 15,209,655 |   |
|                    |   | $      | 26,293,652 |   |   | $      | 31,314,422 |   |   | $ | 36,887,599 |   |

| Year   |   | Amount |        |
|--------|--------|--------|-------------|
| 2010   |   | $      | 458,611,806 |   |
| 2011   |   |   | 134,379,764 |   |
| 2012   |   |   | 57,338,372  |   |
| 2013   |   |   | 30,898,111  |   |
| 2014   |   |   | 13,229,839  |   |
| Later  |   |   | 66,725      |   |
|   |   | $      | 694,524,617 |   |

| NOTE 9. | FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE |
|---------|----------------------------------------------------------------------------|

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|                                                                                                                                                                                     |   | 2009   |       |   | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Adjustable rate advances due at various dates through December 18, 2014 with a weighted-average rate of 3.06% at December 31, 2009                                                       |   | $      | 15,000,000 |   |   | $      | 3,941,580 |   |
| Fixed rate advances due at various dates through          February 26, 2024 with a weighted-average rate of 4.23% at December 31, 2009 |   |   | 24,139,501 |   |   |   | 39,762,337 |   |
| Convertible advances due at various dates through      May 19, 2015 with a weighted-average rate of 3.97% at December 31, 2009                             |   |   | 51,000,000 |   |   |   | 66,000,000 |   |
|                                                                                                                                                                                     |   | $      | 90,139,501 |   |   | $      | 109,703,917 |   |

| Year   |   | Amount |       |
|--------|--------|--------|------------|
| 2010   |   | $      | 5,657,456  |   |
| 2011   |   |   | 15,263,803 |   |
| 2012   |   |   | 25,481,174 |   |
| 2013   |   |   | 13,704,982 |   |
| 2014   |   |   | 10,665,812 |   |
| Later  |   |   | 19,366,274 |   |
|   |   | $      | 90,139,501 |   |

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|                             |   | 2009   |        |   | 2008   |   |       | 2007   |   |
|----------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Current                          |   | $      | (15,591,672 | )      |   | $      | (882,879   | )      |   | $ | 6,325,504 |   |
| Deferred tax valuation allowance |   |   | (3,287,991  | )      |   |   | (2,671,456 | )      |   |   | (644,268 | ) |
| Change in valuation allowance    |   |   | 11,135,938  |   |   |   | -          |   |   |   | - |   |
|                             |   | $      | (7,743,725  | )      |   | $      | (3,554,335 | )      |   | $ | 5,681,236 |   |

|                                |   | 2009   |        |   | 2008   |   |       | 2007   |   |
|-------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Tax (benefit) at statutory rate     |   | $      | (20,031,347 | )      |   | $      | (3,218,304 | )      |   | $ | 5,763,433 |   |
| Increase (decrease) resulting from: |   |   |        |   |   |   |       |   |   |   |   |   |
| Deferred tax valuation allowance    |   |   | 11,208,869  |   |   |   | -          |   |   |   | - |   |
| Goodwill impairment                 |   |   | 2,034,765   |   |   |   | -          |   |   |   | - |   |
| Tax exempt income, net              |   |   | (402,519    | )      |   |   | (543,628   | )      |   |   | (512,746 | ) |
| Other items, net                    |   |   | (553,493    | )      |   |   | 207,597    |   |   |   | 430,549 |   |
| Income tax expense (benefit)        |   | $      | (7,743,725  | )      |   | $      | (3,554,335 | )      |   | $ | 5,681,236 |   |

|                                                     |   | 2009   |        |   | 2008   |   |
|----------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Deferred tax assets (liabilities):                       |   |   |        |   |   |   |
| Accrued severance payable                                |   | $      | 12,155      |   |   | $      | 36,425 |   |
| Allowance for loan losses                                |   |   | 9,966,809   |   |   |   | 6,587,033 |   |
| Deferred compensation                                    |   |   | 662,306     |   |   |   | 609,929 |   |
| Deferred loan origination cost                           |   |   | (454,593    | )      |   |   | (505,136 | ) |
| Deferred loan origination fees                           |   |   | 483,024     |   |   |   | 599,691 |   |
| Other real estate owned                                  |   |   | 582,680     |   |   |   | 262,062 |   |
| Impaired loan interest                                   |   |   | 317,132     |   |   |   | 454,508 |   |
| Accrued lease payable                                    |   |   | 47,379      |   |   |   | 255,239 |   |
| Excess charitable contributions                          |   |   | 54,571      |   |   |   | 29,558 |   |
| Other assets                                             |   |   | 7,977       |   |   |   | 9,657 |   |
| Premises and equipment                                   |   |   | (712,558    | )      |   |   | (602,306 | ) |
| Nonqualified stock options                               |   |   | 169,056     |   |   |   | 111,288 |   |
| State NOL carryforward                                   |   |   | 340,891     |   |   |   | 267,960 |   |
| Deferred tax valuation allowance                         |   |   | (11,476,829 | )      |   |   | (267,960 | ) |
| Unrealized gain on cash flow hedge derivative instrument |   |   | (137,777    | )      |   |   | (1,131,607 | ) |
| Unrealized gain on securities available for sale         |   |   | (236,262    | )      |   |   | (770,210 | ) |
| Net deferred tax assets (liabilities)                    |   | $      | (374,039    | )      |   | $      | 5,946,131 |   |

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| Year of projected availability: |   | Amount |      |
|---------------------------------|--------|--------|-----------|
|                            |   |   |      |
| 2010                            |   | $      | 797,521   |   |
| 2011                            |   |   | 797,521   |   |
| 2012                            |   |   | 797,521   |   |
| 2013                            |   |   | 797,521   |   |
| 2014                            |   |   | 769,318   |   |
| Later                           |   |   | 823,629   |   |
| Total                           |   | $      | 4,783,031 |   |

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|                           |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|--------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Mortgage origination fees      |   | $      | 781,338   |   |   | $      | 709,489   |   |   | $ | 404,749 |   |
| Brokerage commissions and fees |   |   | 11,085    |   |   |   | 17,199    |   |   |   | 13,487 |   |
| ATM and debit card fee income  |   |   | 843,620   |   |   |   | 737,368   |   |   |   | 642,685 |   |
| Insurance premiums             |   |   | 11,622    |   |   |   | 28,405    |   |   |   | 29,215 |   |
| Other fee income               |   |   | 302,741   |   |   |   | 179,227   |   |   |   | 192,031 |   |
| Total other fee income         |   | $      | 1,950,406 |   |   | $      | 1,671,688 |   |   | $ | 1,282,167 |   |

|                                  |   | 2009   |      |   | 2008   |   |    | 2007   |   |
|---------------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|
| Earnings on bank-owned life insurance |   | $      | 572,082   |   |   | $      | 421,264 |   |   | $ | 406,419 |   |
| Check order revenue                   |   |   | 181,739   |   |   |   | 200,538 |   |   |   | 217,778 |   |
| Other noninterest income              |   |   | 260,267   |   |   |   | 54,567  |   |   |   | 74,512 |   |
| Total other noninterest income        |   | $      | 1,014,088 |   |   | $      | 676,369 |   |   | $ | 698,709 |   |

|                                 |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|--------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Advertising and business development |   | $      | 396,360   |   |   | $      | 581,694   |   |   | $ | 625,765 |   |
| Supplies and printing                |   |   | 359,699   |   |   |   | 390,273   |   |   |   | 463,113 |   |
| Telephone and internet charges       |   |   | 651,284   |   |   |   | 777,049   |   |   |   | 634,445 |   |
| Postage and courier                  |   |   | 545,284   |   |   |   | 572,640   |   |   |   | 644,774 |   |
| Legal and accounting fees            |   |   | 999,599   |   |   |   | 463,040   |   |   |   | 559,417 |   |
| Director fees and expenses           |   |   | 547,078   |   |   |   | 625,236   |   |   |   | 398,078 |   |
| Service charges and fees             |   |   | 436,271   |   |   |   | 594,930   |   |   |   | 621,923 |   |
| Other noninterest expenses           |   |   | 2,879,718 |   |   |   | 1,872,168 |   |   |   | 2,100,542 |   |
| Total other noninterest expense      |   | $      | 6,815,293 |   |   | $      | 5,877,030 |   |   | $ | 6,048,057 |   |

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|                                               |   | 2009   |        |   | 2008   |   |       | 2007   |   |
|----------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Basic earnings (loss) per share:                   |   |   |        |   |   |   |       |   |   |
| Net income (loss)                                  |   | $      | (51,172,000 | )      |   | $      | (5,911,265 | )      |   | $ | 10,785,715 |   |
|                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Weighted average common shares outstanding         |   |   | 10,708,466  |   |   |   | 9,335,376  |   |   |   | 9,602,535 |   |
|                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Earnings (loss) per common share                   |   | $      | (4.78       | )      |   | $      | (0.63      | )      |   | $ | 1.12 |   |
|                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Diluted earnings (loss) per share:                 |   |   |        |   |   |   |       |   |   |   |   |   |
| Net income (loss)                                  |   | $      | (51,172,000 | )      |   | $      | (5,911,265 | )      |   | $ | 10,785,715 |   |
|                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Weighted average common shares outstanding         |   |   | 10,708,466  |   |   |   | 9,335,376  |   |   |   | 9,602,535 |   |
| Effect of dilutive stock options                   |   |   | -           |   |   |   | -          |   |   |   | 141,528 |   |
| Weighted average diluted common shares outstanding |   |   | 10,708,466  |   |   |   | 9,335,376  |   |   |   | 9,744,063 |   |
|                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Earnings (loss) per common share                   |   | $      | (4.78       | )      |   | $      | (0.63      | )      |   | $ | 1.11 |   |

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|                                                                  |   | 2009   |     |   | 2008                            |   |    | 2007   |   |
|-----------------------------------------------------------------------|--------|--------|----------|--------|---------------------------------|--------|---------|--------|--------|
|                                                                  |   | Number |     |   | Weighted-Average Exercise Price |   |    | Number |   |   | Weighted-Average Exercise Price |   |   | Number |   |   | Weighted-Average Exercise Price |   |
| Under option, beginning of year                                       |   |   | 699,218  |   |                            | $      | 13.83   |   |   |   | 708,641 |   |   | $ | 14.20 |   |   |   | 672,474 |   |   | $ | 13.58 |   |
| Granted                                                               |   |   | 419,300  |   |                            |   | 2.81    |   |   |   | 61,381 |   |   |   | 11.55 |   |   |   | 110,670 |   |   |   | 16.17 |   |
| Exercised                                                             |   |   | -        |   |                            |   | -       |   |   |   | (3,586 | ) |   |   | 10.03 |   |   |   | (63,997 | ) |   |   | 10.80 |   |
| Forfeited                                                             |   |   | (41,660  | )      |                            |   | 14.78   |   |   |   | (56,304 | ) |   |   | 15.91 |   |   |   | (10,506 | ) |   |   | 16.22 |   |
| Expired                                                               |   |   | (164,295 | )      |                            |   | 14.99   |   |   |   | (10,914 | ) |   |   | 15.37 |   |   |   | - |   |   |   | - |   |
| Under option, end of year                                             |   |   | 912,563  |   |                            | $      | 8.52    |   |   |   | 699,218 |   |   | $ | 13.83 |   |   |   | 708,641 |   |   | $ | 14.20 |   |
|                                                                  |   |   |     |   |                            |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable at end of year                                            |   |   | 387,395  |   |                            | $      | 12.51   |   |   |   | 482,491 |   |   | $ | 12.95 |   |   |   | 436,097 |   |   | $ | 12.51 |   |
|                                                                  |   |   |     |   |                            |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average fair value per option of options granted during year |   |   |     |   |                            | $      | 1.69    |   |   |   |   |   |   | $ | 2.46 |   |   |   |   |   |   | $ | 4.55 |   |
| Total grant-date fair value of options vested during the year         |   |   |     |   |                            | $      | 284,000 |   |   |   |   |   |   | $ | 300,000 |   |   |   |   |   |   | $ | 433,000 |   |
| Total intrinsic value of options exercised during the year            |   |   |     |   |                            | $      | -       |   |   |   |   |   |   | $ | 8,500 |   |   |   |   |   |   | $ | 468,000 |   |

|                                            |   | Year ended             |    |   | Year ended             |   |
|-------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                            |   | December 31, 2009 |    |   | December 31, 2008 |   |
| Stock options vested and expected to vest:      |   |                   |    |   |                   |   |
| Number                                          |   |                   | 885,321 |   |                   |   | 673,120 |   |
| Weighted average exercise price                 |   | $                      | 8.58    |   |                   | $      | 13.76 |   |
| Aggregate intrinsic value                       |   | $                      | 28,000  |   |                   | $      | - |   |
| Weighted average contractual term of options    |   | 5.66 years             |    |   | 4.69 years             |   |
|                                            |   |                   |    |   |                   |   |   |   |
| Stock options vested and currently exercisable: |   |                   |    |   |                   |   |   |   |
| Number                                          |   |                   | 387,395 |   |                   |   | 482,491 |   |
| Weighted average exercise price                 |   | $                      | 12.51   |   |                   | $      | 12.95 |   |
| Aggregate intrinsic value                       |   | $                      | -       |   |                   | $      | - |   |
| Weighted average contractual term of options    |   | 3.62 years             |    |   | 3.36 years             |   |

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|                     |   |   | Options Outstanding |    |   | Options Exercisable                        |   |
|--------------------------|--------|--------|---------------------|---------|--------|--------------------------------------------|--------|
| Range of Exercise Prices |   |   | Number              |    |   | Weighted-Average Contractual Life in Years |   |   | Weighted-Average Exercise Price |   |   | Number |   |   | Weighted-Average Exercise Price |   |
| $  .00 - 2.26  |   |   |                | 128,100 |   |                                       |   | 6.87 |   |   | $ | 1.98 |   |   |   | - |   |   | $ | - |   |
| 2.27 - 4.53              |   |   |                | 265,200 |   |                                       |   | 7.23 |   |   |   | 3.00 |   |   |   | - |   |   |   | - |   |
| 4.54 - 6.80              |   |   |                | 24,000  |   |                                       |   | 9.00 |   |   |   | 4.90 |   |   |   | 4,000 |   |   |   | 4.90 |   |
| 6.81 - 9.06              |   |   |                | 72,823  |   |                                       |   | 3.21 |   |   |   | 7.76 |   |   |   | 67,687 |   |   |   | 7.70 |   |
| 9.07 - 11.33             |   |   |                | 115,575 |   |                                       |   | 1.52 |   |   |   | 9.92 |   |   |   | 115,575 |   |   |   | 9.92 |   |
| 11.34 - 13.60            |   |   |                | 137,037 |   |                                       |   | 5.35 |   |   |   | 13.04 |   |   |   | 82,835 |   |   |   | 13.02 |   |
| 13.61 - 15.87            |   |   |                | 56,100  |   |                                       |   | 4.81 |   |   |   | 14.22 |   |   |   | 48,144 |   |   |   | 14.29 |   |
| 15.88 - 18.13            |   |   |                | 1,529   |   |                                       |   | 5.93 |   |   |   | 17.51 |   |   |   | 1,223 |   |   |   | 17.51 |   |
| 18.14 - 20.40            |   |   |                | 26,520  |   |                                       |   | 6.01 |   |   |   | 18.14 |   |   |   | 19,176 |   |   |   | 18.14 |   |
| 20.41 - 22.67            |   |   |                | 85,679  |   |                                       |   | 6.99 |   |   |   | 21.01 |   |   |   | 48,755 |   |   |   | 20.93 |   |
|                     |   |   |                | 912,563 |   |                                       |   | 5.69 |   |   | $ | 8.52 |   |   |   | 387,395 |   |   | $ | 12.51 |   |

|                                                                              | 2009            |   | 2008            |   | 2007            |
|-----------------------------------------------------------------------------------|-----------------|--------|-----------------|--------|-----------------|
|                                                                              |            |   |            |   |            |
| Risk-free interest rate                                                           | 2.02% - 2.98%   |   | 2.77% - 4.03%   |   | 4.39% - 4.68%   |
| Expected life of the options                                                      | 7 - 10 years    |   | 7 - 10 years    |   | 7 - 10 years    |
| Expected dividends (as a percent of the fair value of the stock)                  | 0.00%           |   | 0.00% - 4.66%   |   | 2.63% - 3.50%   |
| Weighted average expected dividends (as a percent of the fair value of the stock) | 0.00%           |   | 4.12%           |   | 3.20%           |
| Expected volatility                                                               | 34.02% - 62.18% |   | 25.83% - 32.53% |   | 26.62% - 31.62% |
| Weighted-average expected volatility                                              | 54.12%          |   | 28.96%          |   | 28.23%          |

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|                                                                       | Asset Derivatives            |    | Liability Derivatives        |   |
|----------------------------------------------------------------------------|------------------------------|---------|------------------------------|--------|
|                                                                       | As of December 31, 2009 |    | As of December 31, 2008 |   | As of December 31, 2009 |   | As of December 31, 2008 |   |
|                                                                       | Balance Sheet Location       |    | Fair Value                   |   | Balance Sheet Location |   | FairValue |   | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives designated as hedging instruments under FASB ASC 815:          |                         |    |                         |   |   |   |   |   |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |
| Interest Rate Products                                                     | Other Assets                 |    | $                            | -      |   | Other Assets |   | $ | 3,992,797 |   | Other Liabilities |   | $  | - |   | Other Liabilities |   | $  | - |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives designated as hedging instruments under FASB ASC 815     |                         | $  | -                            |   |   |   | $ | 3,992,797 |   |   |   | $  | - |   |   |   | $  | - |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments under FASB ASC 815:      |                         |    |                         |   |   |   |   |   |   |   |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |   |   |
| Interest Rate Products                                                     | Other Assets                 |    | $                            | 13,757 |   | Other Assets |   | $  | - |   | Other Liabilities |   | $  | - |   | Other Liabilities |   | $  | - |   |
|                                                                       |                         |    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives not designated as hedging instruments under FASB ASC 815 |                         | $       | 13,757                       |   |   |   | $  | - |   |   |   | $  | - |   |   |   | $  | - |   |

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| Derivatives inFASB ASC 815 Cash Flow Hedging Relationships |                | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |     | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |   | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |                | Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) |            | Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) |   |
|------------------------------------------------------------|---------------------|------------------------------------------------------------------------------|----------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|---------------------|------------------------------------------------------------------------------------------------------------------------------------|-----------------|----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       | Twelve Months Ended |                                                                         |     | Twelve Months Ended                                                                          |   |                                                                                       | Twelve Months Ended |                                                                                                                               |
|                                                       | December 31,   |                                                                         |     | December 31,                                                                            |   |                                                                                       | December 31,   |                                                                                                                               |
|                                                       |                | 2009                                                                         |     |                                                                                         | 2008   |                                                                                       |                |                                                                                                                               | 2009            |                                                                                                                             |   | 2008 |   |   |   | 2009 |   |   | 2008 |   |
|                                                       |                |                                                                         |     |                                                                                         |   |                                                                                       |                |                                                                                                                               |            |                                                                                                                             |   |   |   |   |   |   |   |   |   |   |
| Interest Rate Products                                     |                | $                                                                            | ( 57,246 | )                                                                                            |   | $                                                                                          | 3,968,851           |                                                                                                                               | Interest Income |                                                                                                                             | $      | 1,604,128 |   |   | $ | 1,649,984 |   | Other Income |   | $ | (22,076 | ) |   | $ | 16,011 |   |
|                                                       |                |                                                                         |     |                                                                                         |   |                                                                                       |                |                                                                                                                               | Other Income    |                                                                                                                             | $      | 1,144,244 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                      |                | $                                                                            | (57,246  | )                                                                                            |   | $                                                                                          | 3,968,851           |                                                                                                                               |            |                                                                                                                             | $      | 2,748,372 |   |   | $ | 1,649,984 |   |   |   | $ | (22,076 | ) |   | $ | 16,011 |   |

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| Derivatives Not Designated as Hedging Instruments Under FASB ASC 815 | Location of Gain or (Loss) Recognized in Income on Derivative |   | Amount of Gain or (Loss) Recognized in Income on DerivativeTwelve Months EndedDecember 31, |     |
|----------------------------------------------------------------------|---------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|----------|
|                                                                 |                                                          |   | 2009                                                                                       |     |   | 2008 |   |
|                                                                 |                                                          |   |                                                                                       |     |   |   |   |
| Interest Rate Products                                               | Other Income / Expense                                        |   | $                                                                                          | (152,224 | ) |   | $ | - |   |
|                                                                 |                                                          |   |                                                                                       |     |   |   |   |   |   |
| Total                                                                |                                                          |   | $                                                                                          | (152,224 | ) |   | $ | - |   |

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|                         |   | 2009 |       |   | 2008   |   |
|------------------------------|--------|------|------------|--------|--------|--------|
| Commitments to extend credit |   | $    | 89,064,000 |   |   | $      | 147,187,000 |   |
| Standby letters of credit    |   | $    | 3,682,000  |   |   | $      | 4,134,000 |   |

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|                                    |   | Actual |        |   | For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|-----------------------------------------|--------|--------|-------------|--------|-------------------------------|--------|--------|------------------------------------------------------------------|--------|
| As of December 31, 2009:                |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets:  |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Consolidated                            |   | $      | 71,080,000  |   |                          |   | 8.1    | %                                                                |   | $ | 70,357,000 |   |   |   | 8.0 | % |   |   | - N/A - |   |   |   |   |
| Bank                                    |   | $      | 72,562,000  |   |                          |   | 8.3    | %                                                                |   | $ | 70,300,000 |   |   |   | 8.0 | % |   | $ | 87,875,000 |   |   |   | 10.0 | % |
| Tier 1 Capital to Risk Weighted Assets: |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                            |   | $      | 59,861,000  |   |                          |   | 6.8    | %                                                                |   | $ | 35,179,000 |   |   |   | 4.0 | % |   |   | - N/A - |   |   |   |   |   |
| Bank                                    |   | $      | 61,351,000  |   |                          |   | 7.0    | %                                                                |   | $ | 35,150,000 |   |   |   | 4.0 | % |   | $ | 52,725,000 |   |   |   | 6.0 | % |
| Tier 1 Capital to Average Assets:       |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                            |   | $      | 59,861,000  |   |                          |   | 4.7    | %                                                                |   | $ | 50,600,000 |   |   |   | 4.0 | % |   |   | - N/A - |   |   |   |   |   |
| Bank                                    |   | $      | 61,351,000  |   |                          |   | 4.9    | %                                                                |   | $ | 50,541,000 |   |   |   | 4.0 | % |   | $ | 63,176,000 |   |   |   | 5.0 | % |
|                                    |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2008:                |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets:  |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                            |   | $      | 104,718,000 |   |                          |   | 10.3   | %                                                                |   | $ | 81,103,000 |   |   |   | 8.0 | % |   |   | - N/A - |   |   |   |   |   |
| Bank                                    |   | $      | 104,700,000 |   |                          |   | 10.3   | %                                                                |   | $ | 81,019,000 |   |   |   | 8.0 | % |   | $ | 101,274,000 |   |   |   | 10.0 | % |
| Tier 1 Capital to Risk Weighted Assets: |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                            |   | $      | 91,962,000  |   |                          |   | 9.0    | %                                                                |   | $ | 40,551,000 |   |   |   | 4.0 | % |   |   | - N/A - |   |   |   |   |   |
| Bank                                    |   | $      | 91,957,000  |   |                          |   | 9.0    | %                                                                |   | $ | 40,510,000 |   |   |   | 4.0 | % |   | $ | 60,764,000 |   |   |   | 6.0 | % |
| Tier 1 Capital to Average Assets:       |   |   |        |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                            |   | $      | 91,962,000  |   |                          |   | 7.0    | %                                                                |   | $ | 52,223,000 |   |   |   | 4.0 | % |   |   | - N/A - |   |   |   |   |   |
| Bank                                    |   | $      | 91,957,000  |   |                          |   | 7.0    | %                                                                |   | $ | 52,181,000 |   |   |   | 4.0 | % |   | $ | 65,226,000 |   |   |   | 5.0 | % |

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| As of December 31, 2009:                        |   | Quoted Prices in Active Markets for Identical Assets |   |   | Significant Other Observable Inputs |   |        | Significant Unobservable Inputs |   |   |   |   |
|-------------------------------------------------|--------|------------------------------------------------------|--------|--------|-------------------------------------|--------|-------------|---------------------------------|--------|--------|--------|--------|
|                                            |   | (Level 1)                                            |   |   | (Level 2)                           |   |        | (Level 3)                       |   |   | Total  |   |
| Assets                                          |   |                                                 |   |   |                                |   |        |                            |   |   |   |   |
| Investment securities available-for-sale        |   | $                                                    | -      |   |                                | $      | 111,541,113 |                            |   | $      | -      |   |   | $ | 111,541,113 |   |
| Restricted equity securities                    |   |                                                 | -      |   |                                |   | 9,459,600   |                            |   |   | -      |   |   |   | 9,459,600 |   |
| Derivative financial instruments                |   |                                                 | -      |   |                                |   | 13,757      |                            |   |   | -      |   |   |   | 13,757 |   |
| Total fair value of assets on a recurring basis |   | $                                                    | -      |   |                                | $      | 121,014,470 |                            |   | $      | -      |   |   | $ | 121,014,470 |   |

| As of December 31, 2008:                        |   | Quoted Prices in Active Markets for Identical Assets |    |   | Significant Other Observable Inputs |   |        | Significant Unobservable Inputs |   |   |   |   |
|-------------------------------------------------|--------|------------------------------------------------------|---------|--------|-------------------------------------|--------|-------------|---------------------------------|--------|--------|--------|--------|
|                                            |   | (Level 1)                                            |    |   | (Level 2)                           |   |        | (Level 3)                       |   |   | Total  |   |
| Assets                                          |   |                                                 |    |   |                                |   |        |                            |   |   |   |   |
| Investment securities available-for-sale        |   | $                                                    | 571,155 |   |                                | $      | 176,042,256 |                            |   | $      | -      |   |   | $ | 176,613,411 |   |
| Restricted equity securities                    |   |                                                 | -       |   |                                |   | 9,159,904   |                            |   |   | -      |   |   |   | 9,159,904 |   |
| Derivative financial instruments                |   |                                                 | -       |   |                                |   | 3,992,797   |                            |   |   | -      |   |   |   | 3,992,797 |   |
| Total fair value of assets on a recurring basis |   | $                                                    | 571,155 |   |                                | $      | 189,194,957 |                            |   | $      | -      |   |   | $ | 189,766,112 |   |

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|                                               |   | Carrying value at December 31, 2009                  |   |   |                                |
|----------------------------------------------------|--------|------------------------------------------------------|--------|--------|-------------------------------------|
|                                               |   | Quoted Prices in Active Markets for Identical Assets |   |   | Significant Other Observable Inputs |   |   | Significant Unobservable Inputs |   |   |   |   | Total gains (losses) for the Year Ended |   |
|                                               |   | (Level 1)                                            |   |   | (Level 2)                           |   |   | (Level 3) |   |   | Total |   | December 31, 2009 |   |
|                                               |   |                                                 |   |   |                                |   |   |   |   |   |   |   |   |   |   |
| Nonperforming loans                                |   | $                                                    | -      |   |                                | $ | - |   |   | $ | 80,723,630 |   |   | $ | 80,723,630 |   |   | $ | - |   |
| Foreclosed assets                                  |   |                                                 | -      |   |                                |   | 20,313,388 |   |   |   | 71,803,735 |   |   |   | 92,117,123 |   |   |   | (5,118,104 | ) |
| Total fair value of assets on a nonrecurring basis |   | $                                                    | -      |   |                                | $ | 20,313,388 |   |   | $ | 152,527,365 |   |   | $ | 172,840,753 |   |   | $ | (5,118,104 | ) |

|                                                          |   | Carrying value at December 31, 2008                  |   |   |                                |
|---------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|-------------------------------------|
|                                                          |   | Quoted Prices in Active Markets for Identical Assets |   |   | Significant Other Observable Inputs |   |   | Significant Unobservable Inputs |   |   |   |   | Total gains (losses) for the Year Ended |   |
|                                                          |   | (Level 1)                                            |   |   | (Level 2)                           |   |   | (Level 3) |   |   | Total |   | December 31, 2008 |   |
|                                                          |   |                                                 |   |   |                                |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                                                |   | $                                                    | -      |   |                                | $ | - |   |   | $ | 56,444,926 |   |   | $ | 56,444,926 |   |   | $ | - |   |
| Foreclosed assets                                             |   |                                                 | -      |   |                                |   | 6,251,652 |   |   |   | 19,017,249 |   |   |   | 25,268,901 |   |   |   | (1,284,931 | ) |
| Total fair value of assets on a  nonrecurring basis |   | $                                                    | -      |   |                                | $ | 6,251,652 |   |   | $ | 75,462,175 |   |   | $ | 81,713,827 |   |   | $ | (1,284,931 | ) |

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|                                                                                                |   | 2009            |          |   | 2008       |   |
|-----------------------------------------------------------------------------------------------------|--------|-----------------|---------------|--------|------------|--------|
|                                                                                                |   | Carrying Amount |          |   | Fair Value |   |   | Carrying Amount |   |   | Fair Value |   |
| Cash and balances due from banks, interest-bearing deposits with other banks and federal funds sold |   | $               | 186,478,000   |   |       | $      | 186,478,000 |   |   | $ | 137,404,000 |   |   | $ | 137,404,000 |   |
| Investment securities                                                                               |   |            | 111,541,000   |   |       |   | 111,541,000 |   |   |   | 176,613,000 |   |   |   | 176,613,000 |   |
| Restricted equity securities                                                                        |   |            | 9,460,000     |   |       |   | 9,460,000 |   |   |   | 9,160,000 |   |   |   | 9,160,000 |   |
| Loans, net                                                                                          |   |            | 776,000,000   |   |       |   | 777,400,000 |   |   |   | 937,314,000 |   |   |   | 940,533,000 |   |
| Cash flow hedge derivative instrument                                                               |   |            | 14,000        |   |       |   | 14,000 |   |   |   | 3,993,000 |   |   |   | 3,993,000 |   |
| Deposits                                                                                            |   |            | 1,045,215,000 |   |       |   | 1,057,778,000 |   |   |   | 1,123,703,000 |   |   |   | 1,134,568,000 |   |
| Federal funds purchased and securities sold under agreements to repurchase                          |   |            | 10,011,000    |   |       |   | 10,011,000 |   |   |   | 8,954,000 |   |   |   | 8,954,000 |   |
| Advances from the FHLB                                                                              |   |            | 90,140,000    |   |       |   | 88,829,000 |   |   |   | 109,704,000 |   |   |   | 106,847,000 |   |
| Other borrowings                                                                                    |   |            | 20,000,000    |   |       |   | 22,489,000 |   |   |   | - |   |   |   | - |   |
| Beneficial interest in debentures                                                                   |   |            | 10,310,000    |   |       |   | 10,310,000 |   |   |   | 10,310,000 |   |   |   | 10,310,000 |   |

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| PAB BANKSHARES, INC.                                                                 |   |
|--------------------------------------------------------------------------------------|--------|
| CONDENSED BALANCE SHEETS                                                             |   |
| DECEMBER 31, 2009 AND 2008                                                           |   |
|                                                                                 |   |   |   |   |   |   |
|                                                                                 |   | 2009 |   |   | 2008 |   |
| ASSETS                                                                               |   |   |   |   |   |   |
| Cash on deposit with subsidiary bank                                                 |   | $ | 203,733 |   |   | $ | 1,101,389 |   |
| Investment in subsidiary                                                             |   |   | 62,387,137 |   |   |   | 101,905,733 |   |
| Other assets                                                                         |   |   | 399,250 |   |   |   | 775,580 |   |
| Total assets                                                                         |   | $ | 62,990,120 |   |   | $ | 103,782,702 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                 |   |   |   |   |   |   |   |   |
| Guaranteed preferred beneficial interests in debentures (trust preferred securities) |   | $ | 10,310,000 |   |   | $ | 10,310,000 |   |
| Other liabilities                                                                    |   |   | 2,093,472 |   |   |   | 1,871,960 |   |
| Total liabilities                                                                    |   |   | 12,403,472 |   |   |   | 12,181,960 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                 |   |   | 50,586,648 |   |   |   | 91,600,742 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                           |   | $ | 62,990,120 |   |   | $ | 103,782,702 |   |

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| PAB BANKSHARES, INC.                                                                            |   |
|-------------------------------------------------------------------------------------------------|--------|
| CONDENSED STATEMENTS OF INCOME (LOSS)                                                           |   |
| YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007                                                    |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                            |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |
| Income                                                                                          |   |   |   |   |   |   |   |   |   |
| Dividends from subsidiaries                                                                     |   | $ | - |   |   | $ | 2,450,000 |   |   | $ | 12,445,000 |   |
| Interest and dividends on investment securities                                                 |   |   | 7,907 |   |   |   | 16,234 |   |   |   | 21,862 |   |
| Securities transactions, net                                                                    |   |   | - |   |   |   | - |   |   |   | 371,606 |   |
| Other income                                                                                    |   |   | 66 |   |   |   | - |   |   |   | 1,040 |   |
| Total income                                                                                    |   |   | 7,973 |   |   |   | 2,466,234 |   |   |   | 12,839,508 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                        |   |   | 1,437,796 |   |   |   | 1,135,975 |   |   |   | 1,605,380 |   |
| Income (loss) before income tax benefit and distributions in excess of earnings of subsidiaries |   |   | (1,429,823 | ) |   |   | 1,330,259 |   |   |   | 11,234,128 |   |
| Income tax expense (benefit)                                                                    |   |   | 438,776 |   |   |   | (302,644 | ) |   |   | (388,311 | ) |
| Income (loss) before distributions in excess of earnings of subsidiaries                        |   |   | (1,868,599 | ) |   |   | 1,632,903 |   |   |   | 11,622,439 |   |
| Distributions in excess of earnings of subsidiaries                                             |   |   | (49,303,401 | ) |   |   | (7,544,168 | ) |   |   | (836,724 | ) |
| Net income (loss)                                                                               |   | $ | (51,172,000 | ) |   | $ | (5,911,265 | ) |   | $ | 10,785,715 |   |

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| PAB BANKSHARES, INC.                                                                        |   |
|---------------------------------------------------------------------------------------------|--------|
| CONDENSED STATEMENTS OF CASH FLOW                                                           |   |
| YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007                                                |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
|                                                                                        |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                        |   |   |   |   |   |   |   |   |   |
| Net Income (loss)                                                                           |   | $ | (51,172,000 | ) |   | $ | (5,911,265 | ) |   | $ | 10,785,715 |   |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill impairment                                                                         |   |   | 36,697 |   |   |   | - |   |   |   | - |   |
| Net realized gain on securities transactions                                                |   |   | - |   |   |   | - |   |   |   | (371,606 | ) |
| Distributions in excess of earnings of subsidiaries                                         |   |   | 49,303,401 |   |   |   | 7,544,168 |   |   |   | 836,724 |   |
| Increase (decrease) in deferred compensation accrual                                        |   |   | 154,052 |   |   |   | (235,904 | ) |   |   | (133,699 | ) |
| Stock-based compensation expense                                                            |   |   | 350,630 |   |   |   | 310,043 |   |   |   | 410,851 |   |
| Net change in other assets and liabilities                                                  |   |   | 407,093 |   |   |   | (6,266 | ) |   |   | (19,869 | ) |
| Net cash provided by (used in) operating activities                                         |   |   | (920,127 | ) |   |   | 1,700,776 |   |   |   | 11,508,116 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments in subsidiaries                                                                 |   |   | (12,750,000 | ) |   |   | - |   |   |   | - |   |
| Redemption of equity securities                                                             |   |   | - |   |   |   | - |   |   |   | 641,551 |   |
| Net cash provided by (used in) investing activities                                         |   |   | (12,750,000 | ) |   |   | - |   |   |   | 641,551 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid                                                                              |   |   | - |   |   |   | (3,532,990 | ) |   |   | (5,432,369 | ) |
| Proceeds from private placement of capital                                                  |   |   | 12,772,471 |   |   |   | - |   |   |   | - |   |
| Proceeds from the exercise of stock options                                                 |   |   | - |   |   |   | 35,980 |   |   |   | 691,341 |   |
| Acquisition of stock under stock repurchase plans                                           |   |   | - |   |   |   | (1,162,521 | ) |   |   | (5,894,104 | ) |
| Net cash provided by (used in)  financing activities                              |   |   | 12,772,471 |   |   |   | (4,659,531 | ) |   |   | (10,635,132 | ) |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash                                                             |   |   | (897,656 | ) |   |   | (2,958,755 | ) |   |   | 1,514,535 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at beginning of period                                                                 |   |   | 1,101,389 |   |   |   | 4,060,144 |   |   |   | 2,545,609 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at end of period                                                                       |   | $ | 203,733 |   |   | $ | 1,101,389 |   |   | $ | 4,060,144 |   |

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|                          |   | South Georgia  |    | North Georgia |   |   | Florida |   |   | Treasury |    |   | Total  |   |
|-------------------------------|--------|----------------|---------|---------------|--------|--------|---------|--------|--------|----------|---------|--------|--------|--------|
|                          |   | (In thousands) |    |
| 2009                          |   |           |    |          |   |   |    |   |   |     |    |   |   |   |   |
| Net interest income (expense) |   | $              | 15,470  |          |   | $      | 11,028  |   |   | $        | 1,881   |   |   | $      | (69 | ) |   | $ | 28,310 |   |
| Provision for loan losses     |   |           | 14,432  |          |   |   | 26,273  |   |   |     | 3,097   |   |   |   | 7,386 |   |   |   | 51,188 |   |
| Noninterest income            |   |           | 3,844   |          |   |   | (3,936  | )      |   |     | (118    | )      |   |   | 4,745 |   |   |   | 4,535 |   |
| Noninterest expense           |   |           | 10,905  |          |   |   | 7,264   |   |   |     | 6,274   |   |   |   | 16,130 |   |   |   | 40,573 |   |
| Income tax expense (benefit)  |   |           | (2,048  | )             |   |   | (8,991  | )      |   |     | (2,587  | )      |   |   | 5,882 |   |   |   | (7,744 | ) |
| Net income (loss)             |   |           | (3,975  | )             |   |   | (17,454 | )      |   |     | (5,021  | )      |   |   | (24,722 | ) |   |   | (51,172 | ) |
| Total assets                  |   |           | 366,362 |          |   |   | 416,988 |   |   |     | 87,256  |   |   |   | 361,339 |   |   |   | 1,231,945 |   |
|                          |   |           |    |          |   |   |    |   |   |     |    |   |   |   |   |   |   |   |   |   |
| 2008                          |   |           |    |          |   |   |    |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Net interest income           |   | $              | 18,398  |          |   | $      | 12,288  |   |   | $        | 3,633   |   |   | $      | 447 |   |   | $ | 34,766 |   |
| Provision for loan losses     |   |           | 985     |          |   |   | 12,369  |   |   |     | 1,855   |   |   |   | 2,841 |   |   |   | 18,050 |   |
| Noninterest income            |   |           | 3,981   |          |   |   | (1,191  | )      |   |     | (24     | )      |   |   | 1,637 |   |   |   | 4,403 |   |
| Noninterest expense           |   |           | 9,469   |          |   |   | 6,337   |   |   |     | 2,270   |   |   |   | 12,508 |   |   |   | 30,584 |   |
| Income tax expense (benefit)  |   |           | 4,055   |          |   |   | (2,587  | )      |   |     | (175    | )      |   |   | (4,846 | ) |   |   | (3,554 | ) |
| Net income (loss)             |   |           | 7,871   |          |   |   | (5,022  | )      |   |     | (341    | )      |   |   | (8,419 | ) |   |   | (5,911 | ) |
| Total assets                  |   |           | 406,708 |          |   |   | 464,949 |   |   |     | 106,029 |   |   |   | 372,417 |   |   |   | 1,350,103 |   |
|                          |   |           |    |          |   |   |    |   |   |     |    |   |   |   |   |   |   |   |   |   |
| 2007                          |   |           |    |          |   |   |    |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Net interest income           |   | $              | 20,858  |          |   | $      | 16,035  |   |   | $        | 4,052   |   |   | $      | 1,521 |   |   | $ | 42,466 |   |
| Provision for loan losses     |   |           | 269     |          |   |   | 3,145   |   |   |     | 373     |   |   |   | (1,387 | ) |   |   | 2,400 |   |
| Noninterest income            |   |           | 3,842   |          |   |   | 413     |   |   |     | 162     |   |   |   | 1,574 |   |   |   | 5,991 |   |
| Noninterest expense           |   |           | 9,154   |          |   |   | 5,692   |   |   |     | 2,021   |   |   |   | 12,723 |   |   |   | 29,590 |   |
| Income tax expense (benefit)  |   |           | 5,347   |          |   |   | 2,664   |   |   |     | 637     |   |   |   | (2,967 | ) |   |   | 5,681 |   |
| Net income (loss)             |   |           | 9,930   |          |   |   | 4,947   |   |   |     | 1,183   |   |   |   | (5,274 | ) |   |   | 10,786 |   |
| Total assets                  |   |           | 388,016 |          |   |   | 446,516 |   |   |     | 103,037 |   |   |   | 261,102 |   |   |   | 1,198,671 |   |

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| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES |
|---------|---------------------------------------------------------------------------------------|

| ITEM 9A. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

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IT

IT

| Directors with Term Expiring at the 2010 Annual Meeting:                                   |
|--------------------------------------------------------------------------------------------|
| James W. Godbee, Jr.                                                                       |
| James B. Lanier, Jr.                                                                       |
| Douglas W. McNeill                                                                         |
|             F. Ferrell Scruggs, Sr. |
| Directors with Term Expiring at the 2011 Annual Meeting:                                   |
| R. Bradford Burnette                                                                       |
| Michael H. Godwin                                                                          |
| Kennith D. McLeod                                                                          |
| Paul E. Parker                                                                             |
| Directors with Term Expiring at the 2012 Annual Meeting:                                   |
| James L. Dewar, Jr.                                                                        |
| Thompson Kurrie, Jr                                                                        |
| John E. Mansfield, Jr.                                                                     |

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|   | · | R. Bradford Burnette, a director of the Company, is the father-in-law of Jeffery E. Hanson, the Valdosta/Lowndes County Market President of the Bank; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Paul E. Parker, a director of the Company, is the brother of W. Dale Parker, a member and Vice Chairman of the Statesboro Advisory Board of the Bank. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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IT

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| Donald J. Torbert, Jr. | President and Chief Executive Officer                                   |
|------------------------|-------------------------------------------------------------------------|
|                   | (the Company’s “Principal Executive Officer”)         |
|                   |                                                                    |
| Nicole S. Stokes       | Executive Vice President and Chief Financial Officer                    |
|                   | (the Company’s “Principal Financial Officer”)         |
|                   |                                                                    |
| R. Wesley Fuller       | Executive Vice President and Treasurer and Chief Administrative Officer |
|                   |                                                                    |
| David H. Hammond       | Executive Vice President and Chief Credit Officer                       |
|                   |                                                                    |
| George D. Henderson    | Executive Vice President and Chief Banking Officer                      |
|                   |                                                                    |
| M. Burke Welsh, Jr.1   | Former President and Chief Executive Officer                            |

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|   | · | Maintain a compensation program that is equitable in a competitive marketplace. |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Provide opportunities that integrate pay with the Company’s annual and long-term performance goals. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Encourage achievement of strategic objectives and creation of shareholder value. |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | Recognize and reward individual initiative and achievements. |
|--------|--------|--------------------------------------------------------------|

|   | · | Maintain an appropriate balance between base salary and short- and long-term incentive opportunity. |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | Allow the Company to compete for, retain and motivate talented executives critical to its success consistent with its quality of life philosophy. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Base salaries at the 50th percentile of the benchmark peer group. |
|--------|--------|-------------------------------------------------------------------|

|   | · | Annual cash bonuses at the 50th percentile of the benchmark peer group when subjective annual performance goals are achieved and between the 60th and 75th percentile if annual goals are exceeded.  Annual cash bonuses for the CEO can range from 0% to 80% of the CEO’s base salary and from 0% to 60% of the other named executive officers’ base salaries. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Performance-based, long-term equity incentives at the 50th percentile of the benchmark peer group are periodically granted as incentives to accomplish long-term strategic goals.  Equity incentives can range from 0% to 25% of the named executive officer’s base salary. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Position Level           | Base Salary | Cash Incentive/ Bonus | Equity Compensation |
|--------------------------|-------------|-----------------------|---------------------|
| CEO                      | 45% - 100%  | up to 40%             | up to 15%           |
| Executive Vice President | 50% - 100%  | up to 35%             | up to 15%           |
| Senior Vice President*   | 60% - 100%  | up to 30%             | up to 10%           |
| Vice President*          | 70% - 100%  | up to 25%             | up to  5% |

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| Executive Officer Summary Compensation Table                |   |
|-------------------------------------------------------------|--------|
| For the Fiscal Years Ended December 31, 2009, 2008 and 2007 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Name and Principal Position                                 |   |   | Salary |   |   | Bonus |   |   | Option Awards 1 |   |   | All Other Compensation2 |   |   | Total |   |
|                                                        | Year   |   | ($) |   |   | ($) |   |   | ($) |   |   | ($) |   |   | ($) |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Donald J. Torbert, Jr.3                                     | 2009   |   |   | 172,780 |   |   |   | - |   |   |   | 86,815 |   |   |   | 19,116 |   |   |   | 278,711 |   |
| Principal Executive Officer                                 | 2008   |   |   | 172,780 |   |   |   | - |   |   |   | - |   |   |   | 20,981 |   |   |   | 193,761 |   |
|                                                        | 2007   |   |   | 172,780 |   |   |   | 58,950 |   |   |   | 23,883 |   |   |   | 23,541 |   |   |   | 279,154 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nicole S. Stokes4                                           | 2009   |   |   | 105,362 |   |   |   | - |   |   |   | 33,112 |   |   |   | 11,515 |   |   |   | 149,989 |   |
| Principal Financial Officer                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| R. Wesley Fuller                                            | 2009   |   |   | 172,780 |   |   |   | - |   |   |   | 54,003 |   |   |   | 17,056 |   |   |   | 243,839 |   |
| Executive Vice President                                    | 2008   |   |   | 172,780 |   |   |   | - |   |   |   | - |   |   |   | 20,945 |   |   |   | 193,725 |   |
|                                                        | 2007   |   |   | 172,780 |   |   |   | 58,950 |   |   |   | 23,883 |   |   |   | 24,087 |   |   |   | 279,700 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| George D. Henderson                                         | 2009   |   |   | 158,744 |   |   |   | - |   |   |   | 48,436 |   |   |   | 4,902 |   |   |   | 212,082 |   |
| Executive Vice President                                    | 2008   |   |   | 155,000 |   |   |   | - |   |   |   | - |   |   |   | 6,148 |   |   |   | 161,148 |   |
|                                                        | 2007   |   |   | 148,560 |   |   |   | 53,450 |   |   |   | 19,107 |   |   |   | 11,744 |   |   |   | 232,861 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| David Hammond 5                                             | 2009   |   |   | 113,094 |   |   |   | - |   |   |   | 35,347 |   |   |   | 12,726 |   |   |   | 161,167 |   |
| Executive Vice President                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| M. Burke Welsh, Jr.6                                        | 2009   |   |   | 82,216 |   |   |   | - |   |   |   | - |   |   |   | 734,715 |   |   |   | 816,931 |   |
| Former Principal Executive Officer                          | 2008   |   |   | 309,800 |   |   |   | - |   |   |   | - |   |   |   | 15,189 |   |   |   | 324,989 |   |
|                                                        | 2007   |   |   | 309,800 |   |   |   | 120,750 |   |   |   | 30,252 |   |   |   | 21,413 |   |   |   | 482,215 |   |

| (1) | The values disclosed in the table represent the aggregate grant date fair value of awards in accordance with FASB Accounting Standards Codification 718 of options granted in 2009, 2008 and 2007 under the Company’s 1999 Stock Option Plan.  For further discussion and details regarding the accounting treatment and underlying assumptions relative to stock-based compensation, see Note 18, “Stock Plans and Stock-based Employee Compensation,” of the notes to Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data,” of this Report.  During 2009, Mr. Welsh forfeited 15,912 unvested options due to his retirement from the Company and elected not to exercise 54,004 vested options available at his retirement.  There were no forfeitures by named executive officers during 2008 or 2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | The reported amounts include the Company’s contributions to a Profit Sharing Plan, a Section 401(k) Plan and an Employee and Director Stock Purchase Program (the “SPP”), life insurance premiums paid by the Company for the named executive officers and perquisites and other personal benefits (such as auto allowance, cell phone allowance and an $8,524 temporary living allowance for Mr. Hammond in 2009) that may confer a direct or indirect benefit with a personal aspect, without regard to whether it may be provided for some business reason or for the convenience of the Company.  All Other Compensation does not include any perquisites and other personal benefits which are integrally and directly related to the performance of the executive’s duties.  Detail of these amounts follow: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   |   | Contribution to a Profit Sharing Plan |   |   | Contribution to a 401(k) Plan |   |   | Contribution to a SPP |   |   | Life Insurance Premiums |   |   | Employment Contract Termination Payments |   |   | Perquisites and other personal benefits |   |    | Total  |   |
|-------------------------|--------|--------|---------------------------------------|--------|--------|-------------------------------|--------|--------|-----------------------|--------|--------|-------------------------|--------|--------|------------------------------------------|--------|--------|-----------------------------------------|--------|---------|--------|--------|
|                    |   |   | ($)                                   |   |   | ($)                           |   |   | ($)                   |   |   | ($)                     |   |   | ($)                                      |   |   | ($)                                     |   |    | ($)    |   |
| Officer Name            | Year   |   |                                  |   |   |                          |   |   |                  |   |   |                    |   |   |                                     |   |   |                                    |   |    |   |   |
|                    |   |   |                                  |   |   |                          |   |   |                  |   |   |                    |   |   |                                     |   |   |                                    |   |    |   |   |
| Donald J. Torbert, Jr.3 | 2009   |   |                                  | -      |   |                          |   | 7,777  |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 9,439 |   |   |   | 19,116 |   |
|                    | 2008   |   |                                  | -      |   |                          |   | 10,350 |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 8,731 |   |   |   | 20,981 |   |
|                    | 2007   |   |                                  | 6,750  |   |                          |   | 10,125 |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 4,766 |   |   |   | 23,541 |   |
|                    |   |   |                                  |   |   |                          |   |   |                  |   |   |                    |   |   |                                     |   |   |                                    |   |    |   |   |   |   |   |   |   |   |   |
| Nicole S. Stokes4       | 2009   |   |                                  | -      |   |                          |   | 4,741  |                  |   |   | 1,000                   |   |   |                                     | 571    |   |                                    |   | -       |   |   |   | 5,204 |   |   |   | 11,516 |   |
|                    |   |   |                                  |   |   |                          |   |   |                  |   |   |                    |   |   |                                     |   |   |                                    |   |    |   |   |   |   |   |   |   |   |   |
| R. Wesley Fuller        | 2009   |   |                                  | -      |   |                          |   | 7,775  |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 7,381 |   |   |   | 17,056 |   |
|                    | 2008   |   |                                  | -      |   |                          |   | 10,350 |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 8,695 |   |   |   | 20,945 |   |
|                    | 2007   |   |                                  | 6,750  |   |                          |   | 10,125 |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 5,312 |   |   |   | 24,087 |   |
|                    |   |   |                                  |   |   |                          |   |   |                  |   |   |                    |   |   |                                     |   |   |                                    |   |    |   |   |   |   |   |   |   |   |   |
| David H. Hammond5       | 2009   |   |                                  | -      |   |                          |   | 2,545  |                  |   |   | 565                     |   |   |                                     | 612    |   |                                    |   | -       |   |   |   | 9,004 |   |   |   | 12,726 |   |
|                    |   |   |                                  |   |   |                          |   |   |                  |   |   |                    |   |   |                                     |   |   |                                    |   |    |   |   |   |   |   |   |   |   |   |
| George D. Henderson     | 2009   |   |                                  | -      |   |                          |   | -      |                  |   |   | 1,000                   |   |   |                                     | 857    |   |                                    |   | -       |   |   |   | 3,045 |   |   |   | 4,902 |   |
|                    | 2008   |   |                                  | -      |   |                          |   | -      |                  |   |   | 1,000                   |   |   |                                     | 837    |   |                                    |   | -       |   |   |   | 4,311 |   |   |   | 6,148 |   |
|                    | 2007   |   |                                  | 5,554  |   |                          |   | -      |                  |   |   | 1,000                   |   |   |                                     | 695    |   |                                    |   | -       |   |   |   | 4,495 |   |   |   | 11,744 |   |
|                    |   |   |                                  |   |   |                          |   |   |                  |   |   |                    |   |   |                                     |   |   |                                    |   |    |   |   |   |   |   |   |   |   |   |
| M. Burke Welsh, Jr.6    | 2009   |   |                                  | -      |   |                          |   | 3,700  |                  |   |   | -                       |   |   |                                     | 225    |   |                                    |   | 730,000 |   |   |   | 790 |   |   |   | 734,715 |   |
|                    | 2008   |   |                                  | -      |   |                          |   | 10,350 |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 2,939 |   |   |   | 15,189 |   |
|                    | 2007   |   |                                  | 6,750  |   |                          |   | 10,125 |                  |   |   | 1,000                   |   |   |                                     | 900    |   |                                    |   | -       |   |   |   | 2,638 |   |   |   | 21,413 |   |

| (3) | Mr. Torbert was appointed to serve as the President and Interim Chief Executive Officer of the Company and the Bank in April 2009 with his appointment as the Chief Executive Officer made permanent in July 2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Ms. Stokes was appointed as Chief Financial Officer on April 6, 2009.  The amounts reported for 2009 reflect compensation for the entire year of 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Hammond was appointed as Chief Credit Officer on October 1, 2009.  The amounts reported for 2009 reflect compensation for the entire year of 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Mr. Welsh retired from the Company on April 6, 2009.  Under the terms of the Employment Termination Agreement, the Company agreed to pay Mr. Burke $730,000 as a severance payment related to his termination of employment with the Company; however, prior to making any such payment we must receive permission from our regulators, which has not been granted at this time. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name      | Title                                         |   | 2008 and 2009 Base Salary |   |   | 2008 Benchmark Peer Average |   |   | Variance |   |
|-----------|-----------------------------------------------|--------|---------------------------|--------|--------|-----------------------------|--------|--------|----------|--------|
|      |                                          |   | (Dollars In Thousands)    |   |
| Torbert   | Chief Executive Officer                       |   | $                         | 172.8  |   |                        | $      | 331.4  |     |   |   | -47.8 | % |
| Stokes    | EVP – Chief Financial Officer           |   | $                         | 105.0  |   |                        | $      | 184.0  |     |   |   | -42.9 | % |
| Fuller    | EVP -  Chief Administrative Officer |   | $                         | 172.8  |   |                        | $      | 258.5  |     |   |   | -33.1 | % |
| Hammond   | EVP - Chief Credit Officer                    |   | $                         | 113.0  |   |                        | $      | 173.0  |     |   |   | -34.6 | % |
| Henderson | EVP - Chief Banking Officer                   |   | $                         | 148.6  |   |                        | $      | 200.7  |     |   |   | -25.9 | % |
| Welsh     | Former Chief Executive Officer                |   | $                         | 309.8  |   |                        | $      | 331.4  |     |   |   | -6.5 | % |

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| Name                   |   | Grant Date 1 |   | All Other Option Awards: Number of Securities Underlying Options |   | Exercise or Base Price of Option Awards |   | Grant Date Fair Value of Stock and Option Awards |
|------------------------|--------|--------------|--------|------------------------------------------------------------------|--------|-----------------------------------------|--------|--------------------------------------------------|
|                   |   |         |   | (#)                                                              |   | ($/sh)                                  |   | ($)                                              |
|                   |   |         |   |                                                             |   |                                    |   |                                             |
| Donald J. Torbert, Jr. |   | 9/29/2009    |   | 11,600                                                           |   | 2.00                                    |   | 23,906                                           |
|                   |   | 9/29/2009    |   | 16,762                                                           |   | 3.00                                    |   | 30,240                                           |
|                   |   | 9/29/2009    |   | 17,928                                                           |   | 3.00                                    |   | 32,668                                           |
|                   |   |         |   |                                                             |   |                                    |   |                                             |
| Nicole S. Stokes       |   | 9/29/2009    |   | 14,100                                                           |   | 3.00                                    |   | 25.693                                           |
|                   |   | 9/29/2009    |   | 3,600                                                            |   | 2.00                                    |   | 7,419                                            |
|                   |   |         |   |                                                             |   |                                    |   |                                             |
| R. Wesley Fuller       |   | 9/29/2009    |   | 5,172                                                            |   | 3.00                                    |   | 9,381                                            |
|                   |   | 9/29/2009    |   | 17,928                                                           |   | 3.00                                    |   | 32,668                                           |
|                   |   | 9/29/2009    |   | 5,800                                                            |   | 2.00                                    |   | 11,953                                           |
|                   |   |         |   |                                                             |   |                                    |   |                                             |
| David H. Hammond       |   | 9/29/2009    |   | 15,100                                                           |   | 3.00                                    |   | 27,515                                           |
|                   |   | 9/29/2009    |   | 3,800                                                            |   | 2.00                                    |   | 7,831                                            |
|                   |   |         |   |                                                             |   |                                    |   |                                             |
| George D. Henderson    |   | 9/29/2009    |   | 5,200                                                            |   | 2.00                                    |   | 10,717                                           |
|                   |   | 9/29/2009    |   | 20,700                                                           |   | 3.00                                    |   | 37,720                                           |

|   | (1) | On September 29, 2009, the Board of Directors granted stock options under the Company’s 1999 Stock Option Plan to each of the named executive officers listed in the table with an exercise price of $3.00 per share for Incentive Stock Options, which was the closing price of the Company’s stock listed on NASDAQ on the grant date and $2.00 per share for Non-Qualified Options, which was based on a discount to the market price with that discount representing the value given to the officer in lieu of a raise. The options were granted subject to a two year cliff vesting and a five year option period. The fair value of the $2.00 options granted was estimated at $2.06 per share and the fair value of the $3.00 options granted was estimated at $1.82 per share based on the Black-Scholes option pricing model using the following assumptions: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Risk-free interest rate:   2.98% | Expected life of the option:   7 years |
|-------------------------------------------------|-------------------------------------------------------|
| Expected dividend yield:   0.00% | Expected volatility:  58.28%                |

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| Outstanding Equity Awards at Fiscal Year End |
|----------------------------------------------|
| December 31, 2009                            |
|                                         |   | Option Awards |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Name                                         |   | Option Grant Date |   | Number of Securities Underlying Unexercised Options Exercisable (#) |   |   | Number of Securities Underlying Unexercised Options Unexercisable (#) |   |   | Option Exercise Price ($) |   | Option Expiration Date |
| Donald J. Torbert, Jr.                       | 1 | 01/01/01 |   |   | 1,530 |   |   |   | 0 |   |   | $ | 9.1912 |   | 01/01/11 |
|                                         | 1 | 09/26/01 |   |   | 10,548 |   |   |   | 0 |   |   | $ | 10.3922 |   | 09/26/11 |
|                                         | 1 | 08/02/02 |   |   | 5,304 |   |   |   | 0 |   |   | $ | 7.5490 |   | 08/02/12 |
|                                         | 1 | 03/29/05 |   |   | 5,712 |   |   |   | 1,428 |   |   | $ | 13.8529 |   | 03/29/15 |
|                                         | 1 | 12/19/06 |   |   | 3,672 |   |   |   | 2,448 |   |   | $ | 20.9314 |   | 12/19/16 |
|                                         | 1 | 12/18/07 |   |   | 3,060 |   |   |   | 4,590 |   |   | $ | 13.4608 |   | 12/18/17 |
|                                         | 1 | 09/29/09 |   |   | 0 |   |   |   | 17,928 |   |   | $ | 3.0000 |   | 09/29/16 |
|                                         | 1 | 09/29/09 |   |   | 0 |   |   |   | 16,672 |   |   | $ | 3.0000 |   | 09/29/16 |
|                                         | 2 | 09/29/09 |   |   | 0 |   |   |   | 11,600 |   |   | $ | 2.0000 |   | 09/29/16 |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| R. Wesley Fuller                             | 1 | 10/08/01 |   |   | 3,060 |   |   |   | 0 |   |   | $ | 10.5882 |   | 10/08/11 |
|                                         | 1 | 08/02/02 |   |   | 8,568 |   |   |   | 0 |   |   | $ | 7.5490 |   | 08/02/12 |
|                                         | 1 | 03/29/05 |   |   | 5,712 |   |   |   | 1,428 |   |   | $ | 13.8529 |   | 03/29/15 |
|                                         | 1 | 12/19/06 |   |   | 3,672 |   |   |   | 2,448 |   |   | $ | 20.9314 |   | 12/19/16 |
|                                         | 1 | 12/18/07 |   |   | 3,060 |   |   |   | 4,590 |   |   | $ | 13.4608 |   | 12/18/17 |
|                                         | 1 | 09/29/09 |   |   | 0 |   |   |   | 17,928 |   |   | $ | 3.0000 |   | 09/29/16 |
|                                         | 1 | 09/29/09 |   |   | 0 |   |   |   | 5,172 |   |   | $ | 3.0000 |   | 09/29/16 |
|                                         | 2 | 09/29/09 |   |   | 0 |   |   |   | 5,800 |   |   | $ | 2.0000 |   | 09/29/16 |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| David H. Hammond                             | 1 | 01/18/05 |   |   | 1,632 |   |   |   | 408 |   |   | $ | 14.0392 |   | 01/18/15 |
|                                         | 1 | 12/19/06 |   |   | 612 |   |   |   | 408 |   |   | $ | 20.9314 |   | 12/19/16 |
|                                         | 1 | 09/29/09 |   |   | 0 |   |   |   | 15,100 |   |   | $ | 3.0000 |   | 09/29/16 |
|                                         | 2 | 09/29/09 |   |   | 0 |   |   |   | 3,800 |   |   | $ | 2.0000 |   | 09/29/16 |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| George D. Henderson                          | 1 | 01/01/02 |   |   | 3,570 |   |   |   | 0 |   |   | $ | 9.8137 |   | 01/01/12 |
|                                         | 1 | 08/02/02 |   |   | 9,792 |   |   |   | 0 |   |   | $ | 7.5490 |   | 08/02/12 |
|                                         | 1 | 12/19/06 |   |   | 1,224 |   |   |   | 816 |   |   | $ | 20.9314 |   | 12/19/16 |
|                                         | 1 | 12/18/07 |   |   | 2,448 |   |   |   | 3,672 |   |   | $ | 13.4608 |   | 12/18/17 |
|                                         | 1 | 09/29/09 |   |   | 0 |   |   |   | 20,700 |   |   | $ | 3.0000 |   | 09/29/16 |
|                                         | 2 | 09/29/09 |   |   | 0 |   |   |   | 5,200 |   |   | $ | 2.0000 |   | 09/29/16 |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nicole S. Stokes                             | 1 | 12/05/05 |   |   | 1,223 |   |   |   | 306 |   |   | $ | 17.5098 |   | 12/05/15 |
|                                         | 1 | 12/19/06 |   |   | 1,224 |   |   |   | 816 |   |   | $ | 20.9314 |   | 12/19/16 |
|                                         | 1 | 12/18/07 |   |   | 1,020 |   |   |   | 1,530 |   |   | $ | 13.4608 |   | 12/18/17 |
|                                         | 1 | 09/29/09 |   |   | 0 |   |   |   | 14,100 |   |   | $ | 3.0000 |   | 09/29/16 |
|                                         | 2 | 09/29/09 |   |   | 0 |   |   |   | 3,600 |   |   | $ | 2.0000 |   | 09/29/16 |

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Table of Contents

|   | (1) | The listed stock option grants were approved by the Board of Directors under the Company’s 1999 Stock Option Plan to each of the named executive officers listed.  The option exercise prices are based on the closing price of the Company’s stock listed on NASDAQ on the grant date.  These options were granted subject to a five-year ratable vesting schedule. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The listed stock option grants were approved by the Board of Directors under the Company’s 1999 Stock Option Plan to each of the named executive officers listed.  The option exercise prices were based on a discount to the market price with that discount representing the value given to the officer in lieu of a raise.  The options were granted subject to a two year cliff vesting and a five year option period. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Potential Payments Upon Termination or Change in Control |   |
|----------------------------------------------------------|--------|
| As of December 31, 2009                                  |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Name                                                     |   | Benefit |   | Before Change in Control Termination w/o Cause or for Good Reason 1 |   |   | After Change in Control Termination w/o Cause or for Good Reason 2 |   |   | Voluntary Termination |   |   | Death or Disability |   |   | Change in Control |   |
|                                                     |   |   |   | ($) |   |   | ($) |   |   | ($) |   |   | ($) |   |   | ($) |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Donald J. Torbert, Jr.                                   |   | Contract termination payment |   |   | 345,560 |   |   |   | 605,616 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Stock option vesting acceleration 3 |   |   | 27,104 |   |   |   | 27,104 |   |   |   | - |   |   |   | 27,104 |   |   |   | 27,104 |   |
|                                                     |   | IRC Sec. 280G excise tax gross-up |   |   | - |   |   |   | 126,544 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Double gross-up to officer for excise tax and income tax on the gross-up 4 |   |   | - |   |   |   | 154,665 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Total |   |   | 372,664 |   |   |   | 913,929 |   |   |   | - |   |   |   | 27,104 |   |   |   | 27,104 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| R. Wesley Fuller                                         |   | Contract termination payment |   |   | 345,560 |   |   |   | 608,060 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Stock option vesting acceleration 3 |   |   | 16,792 |   |   |   | 16,792 |   |   |   | - |   |   |   | 16,792 |   |   |   | 16,792 |   |
|                                                     |   | IRC Sec. 280G excise tax gross-up |   |   | - |   |   |   | 124,970 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Double gross-up to officer for excise tax and income tax on the gross-up 4 |   |   | - |   |   |   | 152,742 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Total |   |   | 362,352 |   |   |   | 902,564 |   |   |   | - |   |   |   | 16,792 |   |   |   | 16,792 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| George D. Henderson                                      |   | Contract termination payment |   |   | 176,448 |   |   |   | 352,897 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Stock option vesting acceleration 3 |   |   | 14,882 |   |   |   | 14,882 |   |   |   | - |   |   |   | 14,882 |   |   |   | 14,882 |   |
|                                                     |   | IRC Sec. 280G excise tax gross-up |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Double gross-up to officer for excise tax and income tax on the gross-up 4 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Total |   |   | 191,330 |   |   |   | 367,779 |   |   |   | - |   |   |   | 14,882 |   |   |   | 14,882 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nicole S. Stokes                                         |   | Contract termination payment |   |   | 50,269 |   |   |   | 100,538 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Stock option vesting acceleration 3 |   |   | 10,080 |   |   |   | 10,080 |   |   |   | - |   |   |   | 10,080 |   |   |   | 10,080 |   |
|                                                     |   | IRC Sec. 280G excise tax gross-up |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   | Double gross-up to officer for excise tax and income tax on the gross-up 4 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Total |   |   | 60,349 |   |   |   | 110,618 |   |   |   | - |   |   |   | 10,080 |   |   |   | 10,080 |   |

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|   | (1) | The Company’s contractual obligation for terminating an officer’s employment agreement before a change in control event without cause is payable as a lump sum payment within 30 days of termination. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Company’s contractual obligation for terminating an officer's employment agreement after a change in control event without cause is payable as a lump sum payment within 30 days of termination. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Value is calculated using the safe harbor valuation method outlined in Internal Revenue Bulletin 2003-34 and a $2.20 stock price as of December 31, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Assuming a 35% individual income tax rate. |
|--------|-----|--------------------------------------------|

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Table of Contents

| Name                       |   | Fees Earned or Paid in Cash |    |   | Option Awards 1 |   |    | All Other Compensation |   |   | Total   |   |
|----------------------------|--------|-----------------------------|---------|--------|-----------------|--------|---------|------------------------|--------|--------|---------|--------|
|                       |   | ($)                         |    |   | ($)             |   |    | ($)                    |   |   | ($)     |   |
|                       |   |                        |    |   |            |   |    |                   |   |   |    |   |
| R. Bradford Burnette       |   |                        | 32,556  |   |            |   | 4,649   |                   |   |   | 165,087 | (2)    |   |   | 202,292 |   |
| Walter W. Carroll, II(3)   |   |                        | 29,850  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 34,499 |   |
| James L. Dewar, Jr.        |   |                        | 35,450  |   |            |   | 4,649   |                   |   |   | 25,000  | (4)    |   |   | 65,099 |   |
| James W. Godbee, Jr.       |   |                        | 24,788  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 29,437 |   |
| Michael H. Godwin          |   |                        | 30,556  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 35,205 |   |
| Thompson Kurrie, Jr.       |   |                        | 101,000 |   |            |   | 110,705 | (5)                    |   |   | -       |   |   |   | 211,705 |   |
| James B. Lanier, Jr.       |   |                        | 31,113  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 35,762 |   |
| John E. Mansfield, Jr.     |   |                        | 29,950  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 34,599 |   |
| Kennith D. McLeod          |   |                        | 40,699  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 45,348 |   |
| Douglas W. McNeill         |   |                        | 31,655  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 36,304 |   |
| Paul E. Parker             |   |                        | 32,050  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 36,699 |   |
| F. Ferrell Scruggs, Sr.(3) |   |                        | 20,025  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 24,674 |   |
| Joe P. Singletary, Jr.(3)  |   |                        | 15,317  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 19,966 |   |
| David K. Williams(3)       |   |                        | 36,025  |   |            |   | 4,649   |                   |   |   | -       |   |   |   | 40,674 |   |

|   | (1) | As an annual retainer, the nonemployee members of the Board of Directors of the Company are granted 2,000 stock options on the first business day of each year that they serve on the Board of Directors.  The values disclosed in the table represent the aggregate grant date fair value of awards computed in accordance with FASB Accounting Standards Codification Topic 718 for options granted in 2009 under the Company’s 1999 Stock Option Plan. For further discussion and details regarding the accounting treatment and underlying assumptions relative to stock-based compensation, see Note 18, “Stock Plans and Stock-based Employee Compensation,” of the notes to Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data.” |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Company entered into a salary continuation agreement with Mr. Burnette while he was employed as an executive of the Company that would provide Mr. Burnette with $165,087 per year for 15 years commencing when Mr. Burnette turned age 65.  At December 31, 2009, the net present value of the remaining payments due to Mr. Burnette was $1,220,539 using a discount rate of 6.36%. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | David K. Williams resigned from the Board of Directors of the Company and the Bank on September 29, 2009 and Walter W. Carroll, II unexpectedly passed away on December 20, 2009.  F. Ferrell Scruggs, Sr. will retire at the Annual Meeting. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Includes $25,000 contributed by the Bank to Valdosta State University in 2009.  In 2005, the Board of Directors of the Bank authorized the Bank to pledge $500,000 to Valdosta State University in honor of Mr. Dewar’s parents, Mr. James L. Dewar, Sr., the founder of the Bank and the Company, and Mrs. Dorothy H. Dewar.  Mr. Dewar was not present during the deliberation and vote authorizing the pledge.  At December 31, 2009, a balance of $125,000 remained payable on the pledge. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Mr. Kurrie was also granted stock options to purchase 50,000 shares of the Company’s common stock with an exercise price of $3.00 per share.  The options were granted pursuant to the Registrant’s 1999 Stock Option Plan and will expire ten years after the grant date.  The options will vest based on the market performance of the Company’s common stock as follows: 5,000 shares when the Company’s common stock trading price on the NASDAQ Stock Market reaches $4.50 per share; 5,000 shares when the Company’s common stock trading price on the NASDAQ Stock Market reaches $6.00 per share; 10,000 shares when the Company’s common stock trading price on the NASDAQ Stock Market reaches $9.00 per share; and 30,000 shares when the Company’s common stock trading price on the NASDAQ Stock Market reaches $12.00 per share. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------|------------------------------------------------------------------------------------------------|

| Name of Beneficial Owner(1)                             |   | Number of Shares |      |   | Percentage Ownership(2) |   |
|--------------------------------------------------------------|--------|------------------|-----------|--------|-------------------------|--------|
| R. Bradford Burnette                                         |   |             | 221,353   | (3)    |                    |   | 1.45 |   |
| Dewar Family, L.P.                                           |   |             | 1,659,310 | (4)    |                    |   | 10.88 |   |
| James L. Dewar, Jr.                                          |   |             | 2,932,616 | (5)    |                    |   | 19.22 |   |
| R. Wesley Fuller                                             |   |             | 87,667    | (6)    |                    |   | * |   |
| James W. Godbee, Jr.                                         |   |             | 38,354    | (7)    |                    |   | * |   |
| Michael H. Godwin                                            |   |             | 95,997    | (8)    |                    |   | * |   |
| GreenSky Trade Credit, LLC                                   |   |             | 1,240,000 | (9)    |                    |   | 8.13 |   |
| David H. Hammond                                             |   |             | 3,747     | (10)   |                    |   | * |   |
| George D. Henderson                                          |   |             | 67,198    | (11)   |                    |   | * |   |
| Judith S. Kelly                                              |   |             | 26,178    | (12)   |                    |   | * |   |
| Thompson Kurrie, Jr.                                         |   |             | 63,472    | (13)   |                    |   | * |   |
| James B. Lanier, Jr.                                         |   |             | 53,833    | (14)   |                    |   | * |   |
| John E. Mansfield, Jr.                                       |   |             | 155,495   | (15)   |                    |   | 1.02 |   |
| Kennith D. McLeod                                            |   |             | 217,216   | (16)   |                    |   | 1.42 |   |
| Douglas W. McNeill                                           |   |             | 241,313   | (17)   |                    |   | 1.58 |   |
| Paul E. Parker                                               |   |             | 82,626    | (18)   |                    |   | * |   |
| F. Ferrell Scruggs, Sr.                                      |   |             | 134,604   | (19)   |                    |   | * |   |
| Nicole S. Stokes                                             |   |             | 5,065     | (20)   |                    |   | * |   |
| Donald J. Torbert, Jr.                                       |   |             | 43,724    | (21)   |                    |   | * |   |
| All directors and executive officers as a group (17 persons) |   |             | 4,470,458 |   |                    |   | 29.31 |   |
|                                                         |   |             |      |   |                    |   |   |   |
| * Less than 1 percent.                                       |   |             |      |   |                    |   |   |   |

----

|   | (1) | Under the rules of the SEC, a person is deemed to be a beneficial owner of a security if he or she has or shares the power to vote or to direct the voting of such security, or the power to dispose or to direct the disposition of such security.  A person is also deemed to be a beneficial owner of any securities owned by such person’s spouse, children or relatives living in the same household.  Accordingly, more than one person may be deemed to be a beneficial owner of the same securities.  A person is also deemed to be a beneficial owner of any securities that such person has the right to acquire beneficial ownership of within 60 days.  Unless otherwise indicated, the persons named in the above table have sole voting and investment power with respect to all shares shown as beneficially owned by them. The information as to beneficial ownership has been provided by the respective persons listed in the above table. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Based on 13,795,040 shares outstanding as of February 28, 2010 plus shares underlying outstanding stock options or warrants which are exercisable within 60 days of such date are deemed to be outstanding for purposes of calculating the percentage owned by such holder. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Includes 5,878 shares held by Mr. Burnette’s wife and 6,642 shares held for Mr. Burnette’s minor grandchildren by Mr. Burnette’s wife as custodian.  Mr. Burnette disclaims beneficial ownership of those shares held by his wife.  Also includes 20,000 common stock warrants and 12,232 options exercisable within 60 days. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (4) | The Dewar Family, L.P. is a limited partnership and Mr. Dewar, Jr., is its general partner. The mailing address is P.O. Box 2285, Valdosta, Georgia 31604. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Includes 1,659,310 shares owned by the Dewar Family, L.P.  Mr. Dewar, Jr. is a general partner of the Dewar Family, L.P. and possesses the sole power to vote all shares owned by the limited partnership.  Also includes 240,000 common stock warrants, 14,272 options exercisable within 60 days and 6,486 shares held by Mr. Dewar, Jr.’s wife.  Includes 1,020 shares held by Mr. Dewar, Jr.’s wife and stepchildren.  Mr. Dewar, Jr. disclaims beneficial ownership of the shares held by his wife and those held by his wife and stepchildren.  Mr. Dewar, Jr.’s mailing address is P. O. Box 2285, Valdosta, Georgia 31604. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (6) | Includes 8,000 common stock warrants and 25,500 options exercisable within 60 days.  Also includes 236 shares held by Mr. Fuller’s minor children, over which shares Mr. Fuller has custodial power. |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Includes 8,000 common stock warrants and 673 options exercisable within 60 days. |
|--------|-----|----------------------------------------------------------------------------------|

|   | (8) | Includes 16,000 common stock warrants and 8,968 options exercisable within 60 days. |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (9) | Includes 240,000 common stock warrants.  The mailing address for GreenSky Trade Credit, LLC is 1797 Northeast Expressway NE, Suite 100 Atlanta, Georgia 30329. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Includes 2,652 options exercisable within 60 days. |
|--------|------|----------------------------------------------------|

|   | (11) | Includes 479 shares held by Mr. Henderson’s son, of which Mr. Henderson disclaims beneficial ownership. Also includes 8,000 common stock warrants and 17,034 options exercisable within 60 days. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Includes 12,472 options exercisable within 60 days. |
|--------|------|-----------------------------------------------------|

|   | (13) | Includes 10,400 common stock warrants and 6,120 options exercisable within 60 days. |
|--------|------|-------------------------------------------------------------------------------------|

|   | (14) | Includes 4,000 common stock warrants and 14,272 options exercisable within 60 days. |
|--------|------|-------------------------------------------------------------------------------------|

|   | (15) | Includes 98,461 shares held in a family partnership, of which shares Mr. Mansfield has sole voting power.  Also, includes 8,000 common stock warrants, 6,112 options exercisable within 60 days and 1,582 shares held by Mr. Mansfield’s minor children, over which shares Mr. Mansfield has custodial power. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | Includes 33,782 shares held by Mr. McLeod’s wife, of which shares Mr. McLeod disclaims beneficial ownership.  Also includes 20,000 common stock warrants and 6,928 options exercisable within 60 days. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | Includes 40,000 common stock warrants and 5,296 options exercisable within 60 days. |
|--------|------|-------------------------------------------------------------------------------------|

|   | (18) | Includes 5,920 common stock warrants and 14,272 options exercisable within 60 days. |
|--------|------|-------------------------------------------------------------------------------------|

|   | (19) | Includes 16,440 shares held by Mr. Scruggs’ wife, of which shares Mr. Scruggs disclaims beneficial ownership and 14,619 shares held by a family limited partnership.  Also includes 8,000 common stock warrants and 14,272 options exercisable within 60 days. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (20) | Includes 3,467 options exercisable within 60 days. |
|--------|------|----------------------------------------------------|

|   | (21) | Includes 800 common stock warrants and 31,254 options exercisable within 60 days. |
|--------|------|-----------------------------------------------------------------------------------|

| Plan Category                 | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans* |
|-------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
| Equity Compensation Plans     |                                                                                        |                                                                        |                                                                                          |
| Approved by Security Holders  | 912,563                                                                                     | $8.52                                                                       | 403,283                                                                                       |
|                          |                                                                                        |                                                                        |                                                                                          |
| Equity Compensation Plans Not |                                                                                        |                                                                        |                                                                                          |
| Approved by Security Holders  | n/a                                                                                         | n/a                                                                         | n/a                                                                                           |

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| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

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IT

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Table of Contents

IT

|   | 1. | Financial Statements. |
|--------|----|-----------------------|

|   | 2. | Financial Statement Schedules. |
|--------|----|--------------------------------|

|   | 3. | Exhibits. |
|--------|----|-----------|

| Exhibit No. | Description                                                                                                                                                                                                                                                                                                                                         |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                |
| 2.1         | Purchase and Assumption Agreement between HeritageBank of the South and The Park Avenue Bank dated as of February 23, 2010 (incorporated by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed February 25, 2010).                                                                                                 |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 3.1         | Amended and Restated Articles of Incorporation (restated for SEC filing purposes only).                                                                                                                                                                                                                                                             |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 3.2         | Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K dated May 18, 2009).                                                                                                                                                                                                     |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 4.1         | Amended and Restated Trust Agreement among PAB Bankshares, Inc., as Depositor, Wilmington Trust Company, as Property Trustee and Delaware Trustee, and the Administrative Trustees named therein dated as of October 5, 2006 (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K dated October 6, 2006). |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 4.2         | Junior Subordinated Indenture between PAB Bankshares, Inc. and Wilmington Trust Company, as Trustee dated as of October 5, 2006 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K dated October 6, 2006).                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 4.3         | Guarantee Agreement between PAB Bankshares, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee dated as of October 5, 2006 (incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K dated October 6, 2006).                                                                               |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 4.4         | Specimen Certificate for Shares of Common Stock (incorporated by reference to Exhibit 4.4 to the Registrant’s Registration Statement on Form S-1 dated October 2, 2009).                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 10.1        | PAB Bankshares, Inc. Fourth Amended and Restated Dividend Reinvestment and Common Stock Purchase Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007).                                                                                                 |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 10.2        | PAB Bankshares, Inc. 1994 Employee Stock Option Plan, as amended (incorporated by reference to Exhibit 10.3 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1998).                                                                                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                                |
| 10.3        | Form of Executive Salary Continuation Agreement, with attached Schedule of Terms (incorporated by reference to Exhibit 10.5 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1998).                                                                                                                            |

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| 10.4   | PAB Bankshares, Inc. 1999 Stock Option Plan, as amended and restated (incorporated by reference to Exhibit 10.1 to the Registrant's Registration Statement on Form S-8 (No. 333-137316) filed with the Commission on September 14, 2006).                                                                                           |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.5   | Rescission Agreement, dated December 31, 2001, by and between R. Bradford Burnette and the Registrant (incorporated by reference to Exhibit 10.10 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2001).                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.6   | PAB Bankshares, Inc. Employee and Director Stock Purchase Program, dated July 1, 2002 and amended March 25, 2003 (incorporated by reference to Exhibit 10.9 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002).                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.7   | Employment Agreement, dated May 1, 2008, by and between M. Burke Welsh, Jr., the Bank and the Registrant (incorporated by reference to Exhibit 10.9 to the Registrant’s Current Report on Form 8-K dated May 1, 2008).                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.8   | Employment Agreement, dated January 1, 2003, by and between R. Wesley Fuller and the Bank (incorporated by reference to Exhibit 10.12 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002).                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.8.1 | First Amendment to Employment Agreement, dated May 1, 2008, by and between R. Wesley Fuller and the Bank (incorporated by reference to Exhibit 10.10.1 to the Registrant’s Current Report on Form 8-K dated May 1, 2008).                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.9   | Employment Agreement, dated January 1, 2003, by and between Donald J. Torbert, Jr. and the Bank (incorporated by reference to Exhibit 10.13 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002).                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.9.1 | First Amendment to Employment Agreement, dated August 26, 2003, by and between Donald J. Torbert, Jr. and the Bank (incorporated by reference to Exhibit 10.15 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2003).                                                            |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.9.2 | Second Amendment to Employment Agreement, dated May 1, 2008, by and between Donald J. Torbert, Jr. and the Bank (incorporated by reference to Exhibit 10.11.2 to the Registrant’s Current Report on Form 8-K dated May 1, 2008).                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.10  | Employment Agreement, dated May 1, 2008, by and between George D. Henderson, the Bank and the Registrant (incorporated by reference to Exhibit 10.14 to the Registrant’s Current Report on Form 8-K dated May 1, 2008).                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.11  | Employment Agreement, dated October 28, 2008, by and between Nicole S. Stokes, the Bank and the Registrant (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated October 1, 2009).                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.12  | Written Agreement with the Federal Reserve Bank of Atlanta and the Georgia Department of Banking and Finance, dated July 14, 2009 (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated July 20, 2009).                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.13  | Compensatory Arrangement with Thompson Kurrie, Jr. dated April 28, 2009, the terms of which are described on the Registrant’s Current Report on Form 8-K dated April 28, 2009 (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009). |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.14  | Employment Termination Agreement among PAB Bankshares, Inc., The Park Avenue Bank and M. Burke Welsh, Jr., dated April 6, 2009 (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated April 6, 2009).                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                |
| 10.15  | Consulting Agreement among PAB Bankshares, Inc., The Park Avenue Bank and M. Burke Welsh, Jr., dated April 6, 2009 (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated April 6, 2009).                                                                                            |

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| 10.16   | Form of Investment Agreement for Series B Preferred Stock (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated September 15, 2009).                                   |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                   |
| 10.17   | Form of Investment Agreement for Series A Preferred Stock (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009).             |
|    |                                                                                                                                                                                                                   |
| 10.17.1 | Form of Amendment to Investment Agreement for Series A Preferred Stock (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009). |
|    |                                                                                                                                                                                                                   |
| 21.1    | Subsidiaries of the Registrant.                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                   |
| 23.1    | Consent of Mauldin & Jenkins, LLC.                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                   |
| 31.1    | Rule 13a-14(a) Certification of Chief Executive Officer.                                                                                                                                                               |
|    |                                                                                                                                                                                                                   |
| 31.2    | Rule 13a-14(a) Certification of Chief Financial Officer.                                                                                                                                                               |
|    |                                                                                                                                                                                                                   |
| 32.1    | Section 1350 Certification of Chief Executive Officer.                                                                                                                                                                 |
|    |                                                                                                                                                                                                                   |
| 32.2    | Section 1350 Certification of Chief Financial Officer.                                                                                                                                                                 |

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SI

|                | PAB BANKSHARES, INC. |
|---------------------|----------------------|
| Date: March 9, 2010 |                 |   |   |
|                | By:                  | /s/ Donald J. Torbert, Jr. |   |
|                |                 | Donald J. Torbert, Jr. |
|                |                 | President and Chief Executive Officer |

| Signature                   |   | Title                                                                |   | Date          |
|-----------------------------|--------|----------------------------------------------------------------------|--------|---------------|
|                        |   |                                                                 |   |          |
| /s/ R. Bradford Burnette    |   | Director                                                             |   | March 9, 2010 |
| R. Bradford Burnette        |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
|                        |   | Director, Chairman                                                   |   |          |
| James L. Dewar, Jr.         |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ James W. Godbee, Jr.    |   | Director                                                             |   | March 9, 2010 |
| James W. Godbee, Jr., CPA   |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ Michael H. Godwin       |   | Director                                                             |   | March 9, 2010 |
| Michael H. Godwin           |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ Thompson Kurrie, Jr.    |   | Director, Vice Chairman                                              |   | March 9, 2010 |
| Thompson Kurrie, Jr.        |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ James B. Lanier, Jr.    |   | Director                                                             |   | March 9, 2010 |
| James B. Lanier, Jr.        |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ John E. Mansfield, Jr.  |   | Director                                                             |   | March 9, 2010 |
| John E. Mansfield, Jr.      |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ Kennith D. McLeod       |   | Director                                                             |   | March 9, 2010 |
| Kennith D. McLeod, CPA      |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ Douglas W. McNeill      |   | Director, Vice Chairman                                              |   | March 9, 2010 |
| Douglas W. McNeill          |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ Paul E. Parker          |   | Director                                                             |   | March 9, 2010 |
| Paul E. Parker              |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ F. Ferrell Scruggs, Sr. |   | Director                                                             |   | March 9, 2010 |
| F. Ferrell Scruggs, Sr.     |   |                                                                 |   |          |
|                        |   |                                                                 |   |          |
| /s/ Nicole S. Stokes        |   | Executive Vice President and                                         |   | March 9, 2010 |
| Nicole S. Stokes, CPA       |   | Chief Financial Officer (Principal Financial and Accounting Officer) |   |          |
|                        |   |                                                                 |   |          |
| /s/ Donald J. Torbert, Jr.  |   | President and Chief Executive                                        |   | March 9, 2010 |
| Donald J. Torbert, Jr.      |   | Officer (Principal Executive Officer)                                |   |          |

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