| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

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

|                                                          |   |                                |
|---------------------------------------------------------------|--------|-------------------------------------|
| Kentucky                                                      |   | 61-0912615                          |
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |
|                                                          |   |
| 1065 Ashley Street, Bowling Green, Kentucky                   |   | 42103                               |
| (Address of principal executive offices)                      |   | (Zip Code)                          |

|                                               |   |   |
|----------------------------------------------------|--------|--------|
| Large accelerated filer    ̈         |   |   |
| Accelerated filer    ̈               |   |   |   |
| Non-accelerated filer   ̈            |   |   |
| Smaller reporting company    x |   |   |   |

----

----

| PART I – FINANCIAL INFORMATION |                                                                                        |
|--------------------------------------|---------------------------------------------------------------------------------------------|
|                                 |                                                                                        |
| ITEM 1                               | FINANCIAL STATEMENTS                                                                        | 4 |
|                                 |                                                                                        |   |
| ITEM 2                               | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 20 |
|                                 |                                                                                        |   |
| ITEM 3                               | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 36 |
|                                 |                                                                                        |   |
| ITEM 4                               | CONTROLS AND PROCEDURES                                                                     | 37 |
| PART II –                      | OTHER INFORMATION                                                                           |   |
|                                 |                                                                                        |   |
| ITEM   6              | EXHIBITS                                                                                    | 38 |
|                                 |                                                                                        |   |
| SIGNATURES                           | 39                                                                                          |

----

| Part 1. Financial Information |
|-------------------------------|

| Citizens First Corporation                                                                                                                                                                                   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Unaudited Consolidated Balance SheetsDollars in thousands                                                                                                                                                    |
|                                                                                                                                                                                                         | June 30, 2010 |   | December 31, 2009 |
| Assets                                                                                                                                                                                                       |
| Cash and due from financial institutions                                                                                                                                                                     | $5,794 |   | $6,619 |
| Federal funds sold                                                                                                                                                                                           | 4,439 |   | 3,137 |
| Cash and cash equivalents                                                                                                                                                                                    | 10,233 |   | 9,756 |
| Available for sale securities                                                                                                                                                                                | 41,782 |   | 41,059 |
| Loans held for sale                                                                                                                                                                                          | 1,127 |   | 295 |
| Loans, net of allowance of $4,458 and $3,988 at June 30, 2010 and December 31, 2009, respectively                                                                                                            |  260,929 |   | 259,934 |
| Premises and equipment, net                                                                                                                                                                                  | 10,584 |   | 10,846 |
| Bank owned life insurance                                                                                                                                                                                    | 6,907 |   | 6,760 |
| Federal Home Loan Bank (FHLB) stock, at cost                                                                                                                                                                 | 2,025 |   | 2,025 |
| Accrued interest receivable                                                                                                                                                                                  | 2,091 |   | 2,111 |
| Deferred income taxes                                                                                                                                                                                        | 3,843 |   | 3,888 |
| Goodwill                                                                                                                                                                                                     | 2,575 |   | 2,575 |
| Core deposit intangible                                                                                                                                                                                      | 1,161 |   | 1,293 |
| Other assets                                                                                                                                                                                                 | 3,668 |   | 3,689 |
|                                                                                                                                                                                                         |   |   |   |
| Total assets                                                                                                                                                                                                 | $346,925 |   | $344,231 |
|                                                                                                                                                                                                         |   |   |   |
| Liabilities and Stockholders' Equity                                                                                                                                                                         |
|                                                                                                                                                                                                         |   |   |   |
| Liabilities                                                                                                                                                                                                  |   |   |   |
| Deposits:                                                                                                                                                                                                    |   |   |   |
| Non-interest bearing                                                                                                                                                                                         | $37,056 |   | $36,586 |
| Savings, NOW and money market                                                                                                                                                                                | 70,455 |   | 75,244 |
| Time                                                                                                                                                                                                         | 185,125 |   | 176,690 |
| Total deposits                                                                                                                                                                                               | 292,636 |   | 288,520 |
|                                                                                                                                                                                                         |   |   |   |
| Securities sold under repurchase agreements                                                                                                                                                                  | 810 |   | 800 |
| FHLB advances                                                                                                                                                                                                | 8,500 |   | 11,500 |
| Subordinated debentures                                                                                                                                                                                      | 5,000 |   | 5,000 |
| Accrued interest payable                                                                                                                                                                                     | 418 |   | 440 |
| Other liabilities                                                                                                                                                                                            | 1,671 |   | 1,113 |
|                                                                                                                                                                                                         |   |   |   |
| Total liabilities                                                                                                                                                                                            | 309,035 |   | 307,373 |
|                                                                                                                                                                                                         |   |   |   |
| Stockholders' Equity:                                                                                                                                                                                        |   |   |   |
| 6.5% cumulative preferred stock, no par value; authorized 250 shares; liquidation preference of $7,998;  issued and outstanding 250 shares at June 30, 2010 and at December 31, 2009, respectively | 7,659 |   | 7,659 |
| 5.0% Series A preferred stock; no  par value; authorized 250 shares, liquidation preference of $8,779; issued and outstanding 250 shares at June 30, 2010 and at December 31, 2009, respectively   | 8,555 |   | 8,523 |
| Common stock, no par value; authorized 5,000,000 shares; issued and outstanding 1,968,777 shares at June 30, 2010 and  at December 31, 2009, respectively                                          | 27,072 |   |                                                27,072 |
| Accumulated deficit                                                                                                                                                                                          | (5,235) |   | (5,873) |
| Accumulated other comprehensive loss                                                                                                                                                                         | (161) |   | (523) |
| Total stockholders' equity                                                                                                                                                                                   | 37,890 |   | 36,858 |
| Total liabilities  and stockholders' equity                                                                                                                                                        | $346,925 |   | $344,231 |
|   See Notes to Unaudited Consolidated Financial Statements                                                                                                                                              |

----

|                                                                                                                 |                        |
|----------------------------------------------------------------------------------------------------------------------|-----------------------------|
| Citizens First CorporationUnaudited Consolidated Statements of OperationsDollars in thousands, except per share data |
|                                                                                                                 | Three months ended June 30, |
|                                                                                                                 | 2010                        |   | 2009 |
| Interest and dividend income                                                                                         |                        |   |   |
| Loans                                                                                                                | $4,096                      |   | $3,848 |
| Taxable securities                                                                                                   | 149                         |   | 196 |
| Non-taxable securities                                                                                               | 183                         |   | 189 |
| Federal funds sold and other                                                                                         | 27                          |   | 24 |
| Total interest and dividend income                                                                                   | 4,455                       |   | 4,257 |
| Interest expense                                                                                                     |                        |   |   |
| Deposits                                                                                                             | 1,245                       |   | 1,422 |
| FHLB advances                                                                                                        | 55                          |   | 169 |
| Subordinated debentures                                                                                              | 25                          |   | 36 |
| Short-term borrowings                                                                                                | 2                           |   | 34 |
| Total interest expense                                                                                               | 1,327                       |   | 1,661 |
| Net interest income                                                                                                  | 3,128                       |   | 2,596 |
| Provision for loan losses                                                                                            | 450                         |   | 2,900 |
| Net interest income after provision for loan losses                                                                  | 2,678                       |   | (304) |
| Non-interest income                                                                                                  |                        |   |   |
| Service charges on deposit accounts                                                                                  | 440                         |   | 340 |
| Other service charges and fees                                                                                       | 96                          |   | 101 |
| Gain on sale of mortgage loans                                                                                       | 62                          |   | 83 |
| Lease income                                                                                                         | 29                          |   | 38 |
| BOLI income                                                                                                          | 73                          |   | 75 |
| Gain on the sale of investments                                                                                      | 0                           |   | 361 |
| Other income                                                                                                         | 44                          |   | 34 |
| Total non-interest income                                                                                            | 744                         |   | 1,032 |
| Non-interest expenses                                                                                                |                        |   |   |
| Salaries and employee benefits                                                                                       | 1,121                       |   | 1,460 |
| Net occupancy expense                                                                                                | 324                         |   | 358 |
| Equipment expense                                                                                                    | 164                         |   | 197 |
| Advertising and public relations                                                                                     | 86                          |   | 141 |
| Professional fees                                                                                                    | 176                         |   | 173 |
| Data processing services                                                                                             | 175                         |   | 186 |
| Franchise shares and deposit tax                                                                                     | 129                         |   | 124 |
| FDIC Insurance                                                                                                       | 124                         |   | 260 |
| Core deposit  intangible amortization                                                                      | 66                          |   | 68 |
| Postage and office supplies                                                                                          | 37                          |   | 60 |
| Telephone and other communication                                                                                    | 51                          |   | 46 |
| Other real estate owned expenses                                                                                     | 24                          |   | 27 |
| Other                                                                                                                | 150                         |   | 158 |
| Total non-interest expenses                                                                                          | 2,627                       |   | 3,258 |
| Income/(loss) before income taxes                                                                                    | 795                         |   | (2,530) |
| Provision/(benefit) for income taxes                                                                                 | 178                         |   | (953) |
| Net income/(loss)                                                                                                    | $  617            |   | $(1,577) |
| Dividends declared and  accretion on preferred stock                                                       | 256                         |   | 256 |
| Net income (loss) available for common stockholders                                                                  | $ 361                       |   | $(1,833) |
| Basic and diluted earnings (loss) per share                                                                          | $ 0.18                      |   | $  (0.93) |
|   See Notes to Unaudited Consolidated Financial Statements                                                      |

----

|                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------|
| Citizens First CorporationUnaudited Consolidated Statements of OperationsDollars in thousands, except per share data |
|                                                                                                                 | Six months ended June 30, |
|                                                                                                                 | 2010 |   | 2009 |
| Interest and dividend income                                                                                         |   |   |   |
| Loans                                                                                                                | $8,065 |   | $7,866 |
| Taxable securities                                                                                                   | 304 |   | 462 |
| Non-taxable securities                                                                                               | 366 |   | 377 |
| Federal funds sold and other                                                                                         | 53 |   | 51 |
| Total interest and dividend income                                                                                   | 8,788 |   | 8,756 |
| Interest expense                                                                                                     |   |   |   |
| Deposits                                                                                                             | 2,489 |   | 2,998 |
| FHLB advances                                                                                                        | 122 |   | 344 |
| Subordinated debentures                                                                                              | 48 |   | 74 |
| Short-term borrowings                                                                                                | 5 |   | 83 |
| Total interest expense                                                                                               | 2,664 |   | 3,499 |
| Net interest income                                                                                                  | 6,124 |   | 5,257 |
| Provision for loan losses                                                                                            | 850 |   | 3,200 |
| Net interest income after provision for loan losses                                                                  | 5,274 |   | 2,057 |
| Non-interest income                                                                                                  |   |   |   |
| Service charges on deposit accounts                                                                                  | 766 |   | 641 |
| Other service charges and fees                                                                                       | 174 |   | 180 |
| Gain on sale of mortgage loans                                                                                       | 100 |   | 195 |
| Lease income                                                                                                         | 67 |   | 81 |
| BOLI income                                                                                                          | 147 |   | 150 |
| Gain on sale of investments                                                                                          | 0 |   | 361 |
| Other income                                                                                                         | 80 |   | 65 |
| Total non-interest income                                                                                            | 1,334 |   | 1,673 |
| Non-interest expenses                                                                                                |   |   |   |
| Salaries and employee benefits                                                                                       | 2,222 |   | 2,788 |
| Net occupancy expense                                                                                                | 634 |   | 674 |
| Equipment expense                                                                                                    | 325 |   | 377 |
| Advertising and public relations                                                                                     | 133 |   | 227 |
| Professional fees                                                                                                    | 292 |   | 328 |
| Data processing services                                                                                             | 383 |   | 322 |
| Franchise shares and deposit tax                                                                                     | 234 |   | 249 |
| FDIC Insurance                                                                                                       | 248 |   | 361 |
| Core deposit  intangible amortization                                                                      | 132 |   | 138 |
| Postage and office supplies                                                                                          | 76 |   | 115 |
| Telephone and other communication                                                                                    | 94 |   | 100 |
| Other real estate owned expenses                                                                                     | 94 |   | 106 |
| Other                                                                                                                | 302 |   | 334 |
| Total non-interest expenses                                                                                          | 5,169 |   | 6,119 |
| Income/(loss) before income taxes                                                                                    | 1,439 |   | (2,389) |
| Provision/(benefit) for income taxes                                                                                 | 291 |   | (1,018) |
| Net income/(loss)                                                                                                    | $1,148 |   | $(1,371) |
| Dividends declared and  accretion on preferred stock                                                       | 510 |   | 508 |
| Net income (loss) available for common stockholders                                                                  | $  638 |   | $(1,879) |
| Basic and diluted earnings (loss) per share                                                                          | $ 0.32 |   | $(0.95) |
| See Notes to Unaudited Consolidated Financial Statements                                                             |

----

| Citizens First Corporation                                                               |
|------------------------------------------------------------------------------------------|
| Unaudited Consolidated Statements of Changes in Stockholders' EquityDollars in thousands |
|                                                                                     | Six months ended June 30, |
|                                                                                     | 2010 |   | 2009 |
|                                                                                     |   |
|                                                                                     |   |   |   |
| Balance January 1                                                                        | $36,858 |   | $39,285 |
| Net income/(loss)                                                                        | 1,148 |   | (1,371) |
| Stock-based compensation                                                                 | - |   | 13 |
| Payment of preferred dividends, $956 and $951 per share for 2010 and 2009                | (478) |   | (475) |
| Other comprehensive income/(loss), net of tax                                            | 362 |   | (337) |
| Balance at end of period                                                                 | $37,890 |   | $37,115 |
|                                                                                     |   |   |   |
|                                                                                     |
| Citizens First Corporation                                                               |
| Unaudited Consolidated Statements of Comprehensive Income (Loss)Dollars in thousands     |
|                                                                                     | Three months ended June 30, |
|                                                                                     | 2010 |   | 2009 |
|                                                                                     |   |   |   |
| Net income/(loss)                                                                        | $617 |   | $(1,577) |
| Other comprehensive income, net of tax:                                                  |   |   |   |
| Unrealized gain /(loss) on available for sale securities, net                            | 180 |   | (515) |
|                                                                                     |   |   |   |
| Comprehensive income/(loss)                                                              | $797 |   | $(2,092) |
|                                                                                     |   |   |   |

| Citizens First Corporation                                                           |
|--------------------------------------------------------------------------------------|
| Unaudited Consolidated Statements of Comprehensive Income (Loss)Dollars in thousands |
|                                                                                 | Six months ended June 30, |
|                                                                                 | 2010 |   | 2009 |
|                                                                                 |   |   |   |
| Net income/(loss)                                                                    | $   1,148 |   | $   (1,371) |
| Other comprehensive income, net of tax:                                              |   |   |   |
| Unrealized gain/(loss) on available for sale securities, net                         | 362 |   | (337) |
|                                                                                 |   |   |   |
| Comprehensive income/(loss)                                                          | $1,510 |   | $(1,708) |
|                                                                                 |   |   |   |

----

| Citizens First CorporationUnaudited Consolidated Statements of Cash FlowsDollars in thousands |
|-----------------------------------------------------------------------------------------------|
|                                                                                          | Six months ended June 30 |
|                                                                                          | 2010 |   | 2009 |
|                                                                                          |   |   |
| Operating activities:                                                                         |   |   |
| Net  income/(loss)                                                                  | $1,148 |   | $(1,371) |
| Adjustments to reconcile net income/(loss) to net cash provided by operating activities:      |   |   |   |
| Depreciation and amortization                                                                 | 392 |   | 421 |
| Stock-based compensation expense                                                              | - |   | 13 |
| Provision for loan losses                                                                     | 850 |   | 3,200 |
| Amortization of premiums and discounts on securities                                          | 19 |   | 57 |
| Amortization of core deposit intangible                                                       | 132 |   | 138 |
| Deferred income taxes                                                                         | 45 |   | (1,037) |
| Sale of mortgage loans held for sale                                                          | 5,600 |   | 15,151 |
| Origination of mortgage loans for sale                                                        | (6,333) |   | (15,604) |
| Gain on the sale of securities available-for-sale                                             | - |   | (361) |
| Loss/(Gain) on the sale of property plant and equipment                                       | 10 |   | (10) |
| Gains on sales of loans                                                                       | (100) |   | (195) |
| Net loss on sale of other real estate owned                                                   | 81 |   | 75 |
| Changes in:                                                                                   |   |   |   |
| Interest receivable                                                                           | 21 |   | 315 |
| Other assets                                                                                  | 85 |   | (85) |
| Interest payable and other liabilities                                                        | 350 |   | - |
| Net cash provided by operating  activities                                          | 2,300 |   | 707 |
| Investing activities:                                                                         |   |   |   |
| Loan originations and payments, net                                                           | (2,268) |   | 6,849 |
| Purchases of premises and equipment                                                           | (141) |   | (530) |
| Purchase of available-for-sale securities                                                     | (16,040) |   | (18,592) |
| Proceeds from maturities of available-for-sale securities                                     | 15,847 |   | 4,434 |
| Proceeds from sales of available-for-sale securities                                          | - |   | 12,278 |
| Proceeds from sale of other real estate owned                                                 | 131 |   | 792 |
| Proceeds from disposal of property plant and equipment                                        | - |   | 99 |
| Net cash provided by/(used in) investing activities                                           | (2,471) |   | 5,330 |
| Financing activities:                                                                         |   |   |   |
| Net change in demand deposits, money market, NOW, and savings accounts                        | (4,319) |   | 8,981 |
| Net change in time deposits                                                                   | 8,435 |   | (18,157) |
| Proceeds from FHLB advances                                                                   | 7,800 |   | 14,000 |
| Repayment of FHLB advances                                                                    | (10,800) |   | (13,500) |
| Net change in repurchase agreements                                                           | 10 |   | (4,831) |
| Dividends paid on preferred stock                                                             | (478) |   | (475) |
| Net cash provided by/(used in) financing activities                                           | 648 |   | (13,982) |
| Increase/(Decrease) in cash and cash equivalents                                              | 477 |   | (7,945) |
| Cash and cash equivalents, beginning of year                                                  | 9,756 |   | 15,331 |
| Cash and cash equivalents, end of quarter                                                     | $10,233 |   | $7,386 |
| Supplemental Cash Flows  Information:                                               |   |   |   |
| Interest paid                                                                                 | $2,686 |   | $3,738 |
| Income taxes paid                                                                             | $       - |   | $       - |
| Loans transferred to other real estate                                                        | $  423 |   | $  225 |
|                                                                                          |   |
| See Notes to Unaudited Consolidated Financial Statements                                      |

----

| Note 2 -  Reclassifications |
|---------------------------------------|

----

----

|                               | 2010   |                           |
|------------------------------------|--------|--------------------------------|
|                               | Shares | Weighted-Average ExercisePrice |   |
|                               |   |                           |   |
| Outstanding, beginning of year     | 91,260 | $15.22                         |   |
| Granted                            | -      | -                              |   |
| Exercised                          | -      | -                              |   |
| Forfeited                          | -      | -                              |   |
| Expired                            | -      | -                              |   |
| Outstanding, end of period         | 91,260 | $15.22                         |   |
| Options exercisable, end of period | 91,260 | $15.22                         |   |

|                                           |                | (Dollars in Thousands) |
|------------------------------------------------|---------------------|------------------------|
|                                           |  AmortizedCost | GrossUnrealizedGains   | GrossUnrealized       Losses | FairValue |
|  June 30, 2010                            |                |                   |   |   |
| U. S. government agencies                      | $19,743             | $101                   | $    - | $19,844 |
| State and municipal                            | 18,696              | 554                    | (19) | 19,231 |
| Agency mortgage-backed securities: residential |  1,725         | 82                     | - | 1,807 |
| Trust preferred security                       | 1,862               | -                      | (962) | 900 |
|  Total investment securities              |  $42,026       | $737                   | $(981) | $41,782 |
|  December 31, 2009                        |                |                   |   |   |
| U. S. government agencies                      | $19,178             | $14                    | $(90) | $19,102 |
| State and municipal                            | 18,809              | 441                    | (54) | 19,196 |
| Agency mortgage-backed securities:residential  |  2,004         | 57                     | - | 2,061 |
| Trust preferred security                       | 1,861               | -                      | (1,161) | 700 |
| Total investment securities                    |  $41,852       | $512                   | $(1,305) | $41,059 |

----

|                                |                         | June 30, 2010(Dollars in Thousands) |
|-------------------------------------|------------------------------|-------------------------------------|
|                                |                         | Available for Sale             |
|                                | Amortized Cost               |                                | Fair Value |
| Due in one year or less             | $    381 |                                | $     383 |
| Due from one to five years          | 8,536                        |                                | 8,709 |
| Due from five to ten years          | 20,425                       |                                | 20,743 |
| Due after ten years                 | 10,959                       |                                | 10,140 |
| Agency mortgage-backed: residential | 1,725                        |                                | 1,807 |
|  Total                         | $42,026                      |                                |  $41,782 |

|                                  | (Dollars in Thousands) |
|---------------------------------------|------------------------|
|                                  | Less than 12 Months    | 12 Months or More | Total |
| Description ofSecurities              | Fair Value             | UnrealizedLosses | Fair Value | UnrealizedLosses | Fair Value | UnrealizedLosses |
|  June 30, 2010:                  |                   |   |   |   |   |   |
| State and municipal                   | $1,565                 | $(7) | $  602 | $  (12) | $2,167 | $  (19) |
| Trust preferred security              | -                      | - | 900 | (962) | 900 | (962) |
|  Total temporarily impaired | $1,565                 | $(7) | $1,502 | $(974) | $3,067 | $(981) |

|                                      | (Dollars in Thousands) |
|-------------------------------------------|------------------------|
|                                      | Less than 12 Months    | 12 Months or More | Total |
| Description ofSecurities                  | Fair Value             | UnrealizedLosses | Fair Value | UnrealizedLosses | Fair Value | UnrealizedLosses |
|  December 31, 2009:                  |                   |   |   |   |   |   |
| U.S. government   agencies | $ 9,619                | $  (90) | $    - |  $            - |   $  9,619 |  $   (90) |
| State and municipal                       | 1,887                  | (54) | - | - | 1,887 | (54) |
| Trust preferred security                  | -                      | - | 700 | (1,161) | 700 | (1,161) |
|  Total temporarily impaired     | $11,506                | $(144) | $700 | $(1,161) | $12,206 | $(1,305) |

----

|   | Note 6 - Loans and Allowance for Loan Losses |
|--------|----------------------------------------------|

|                           |   | (Dollars in Thousands)                                               |
|--------------------------------|--------|----------------------------------------------------------------------|
|                           |   | June 30, 2010                                                        |   | December 31, 2009 |
|                           |   |                                                                 |   |   |
| Commercial and agricultural    |   |     $74,861                                      |   |     $74,944 |
| Commercial real estate         |   |            106,887 |   | 104,768 |
| Residential real estate        |   |  72,679                                                         |   |   73,166 |
| Consumer                       |   |  10,960                                                         |   |   11,044 |
| Total loans                    |   |            265,387      |   | 263,922 |
| Less allowance for loan losses |   | (4,458)                                                              |   |   (3,988) |
|  Net loans                |   |     $    260,929                  |   |     $      259,934 |

----

|                              |   | (Dollars in Thousands)                                  |
|-----------------------------------|--------|---------------------------------------------------------|
|                              |   | June 30, 2010                                           |   | June 30, 2009 |
|  Balance, beginning of year, |   |     $3,988                          |   |     $3,816 |
| Provision charged to expense      |   |     850                                  |   |  3,200 |
| Loans charged off                 |   |   (522)                                            |   |            (3,434) |
| Recoveries                        |   |    142                                        |   |      75 |
|  Balance, end of period      |   |  $        4,458 |   |  $       3,657 |

|                                       |   | (Dollars in Thousands)       |
|--------------------------------------------|--------|------------------------------|
|                                       |   | June 30, 2010                |   | December 31, 2009 |
|  Principal balance of impaired loans, |   |     $450 |   |     $ 1,230 |
| Impaired loans with a valuation allowance  |   |  362                    |   |   1,085 |
| Amount of valuation allowance              |   |    92              |   |      256 |
| Impaired loans with no valuation allowance |   |    88              |   |      145 |
|                                       |   |                         |   |   |

|                                                  |   | (Dollars in Thousands)                        |
|-------------------------------------------------------|--------|-----------------------------------------------|
|                                                  |   | June 30, 2010                                 |   | December 31, 2009 |
|  Loans past due 90 days or more still on accrual |   |     $    0 |   |     $   48 |
| Non-accrual loans                                     |   |  450                                     |   | 1,182 |

----

|                                           |                          Fair Value Measurements at June 30, 2010, Using(Dollars in Thousands) |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                           |
|                                           |  June 30, 2010Carrying value                                                                                                                                                                                           | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs(Level 3) |
| Assets:                                        |                                                                                                                                                                                                                        |   |   |   |
| Securities available-for-sale                  |                                                                                                                                                                                                                        |   |   |   |
| U. S. government agencies                      | $19,844                                                                                                                                                                                                                     |   | $19,844 |   |
| State and municipal                            | 19,231                                                                                                                                                                                                                      |   | 19,231 |   |
| Agency mortgage-backed securities -residential | 1,807                                                                                                                                                                                                                       |   | 1,807 |   |
| Trust preferred security                       | 900                                                                                                                                                                                                                         |   | 900 |   |
| Total investment securities                    | $41,782                                                                                                                                                                                                                     | - | $41,782 | - |

----

|                                           |                          Fair Value Measurements at December 31, 2009, Using(Dollars in Thousands) |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                           |
|                                           |  December 31, 2009Carrying value                                                                                                                                                                                           | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs(Level 3) |
| Assets:                                        |                                                                                                                                                                                                                            |   |   |   |
| Securities available-for-sale                  |                                                                                                                                                                                                                            |   |   |   |
| U. S. government agencies                      | $19,102                                                                                                                                                                                                                         |   | $19,102 |   |
| State and municipal                            | 19,196                                                                                                                                                                                                                          |   | 19,196 |   |
| Agency mortgage-backed securities -residential | 2,061                                                                                                                                                                                                                           |   | 2,061 |   |
| Trust preferred security                       | 700                                                                                                                                                                                                                             |   | 700 |   |
| Total investment securities                    | $41,059                                                                                                                                                                                                                         | - | $41,059 | - |

|                         |                          Fair Value Measurements at June 30, 2010, Using(Dollars in Thousands) |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |
|                         |  June 30, 2010 Carrying value                                                                                                                                                                                          | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs(Level 3) |
| Impaired loans               |    $284                                                                                                                                                                                                      |   |   |    $284 |
| Other real estate owned, net | $1,365                                                                                                                                                                                                                      |   |   | $1,365 |

|                         |                          Fair Value Measurements at December 31, 2009, Using(Dollars in Thousands) |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |
|                         |  December 31, 2009 Carrying value                                                                                                                                                                                          | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs(Level 3) |
| Impaired loans               | $1,076                                                                                                                                                                                                                          |   |   | $1,076 |
| Other real estate owned, net | $1,154                                                                                                                                                                                                                          |   |   | $1,154 |

----

|                         |   | (Dollars in Thousands) |
|------------------------------|--------|------------------------|
|                         |   | June 30, 2010          |   | December 31, 2009 |
|                         |   | Carrying Amount        | Fair Value |   | Carrying Amount | Fair Value |
|  Financial Assets       |   |                   |   |   |   |   |
| Cash and cash equivalents    |   | $10,233                | $10,233 |   | $9,756 | $9,756 |
| Loans held for sale          |   | 1,127                  | 1,144 |   | 295 | 295 |
| Loans, net of allowance      |   | 260,645                | 260,825 |   | 258,858 | 260,852 |
| Accrued interest receivable  |   | 2,091                  | 2,091 |   | 2,111 | 2,111 |
| Federal Home Loan Bank stock |   | 2,025                  | N/A |   | 2,025 | N/A |

|                                        |   | (Dollars in Thousands) |
|---------------------------------------------|--------|------------------------|
|                                        |   | June 30, 2010          |   | December 31, 2009 |
|                                        |   | Carrying Amount        | Fair Value |   | Carrying Amount | Fair Value |
|  Financial Liabilities                 |   |                   |   |   |   |   |
| Deposits                                    |   | $292,636               | $294,176 |   | $288,520 | $288,871 |
| Securities sold under repurchase agreements |   | 810                    | 810 |   | 800 | 800 |
| FHLB advances                               |   | 8,500                  | 8,911 |   | 11,500 | 11,824 |
| Subordinate debentures                      |   | 5,000                  | 3,094 |   | 5,000 | 3,094 |
| Accrued interest payable                    |   | 418                    | 418 |   | 440 | 440 |

----

|                                                                       | Quarter ended June 30, 2010 |                  | Quarter ended June 30, 2009 |
|----------------------------------------------------------------------------|-----------------------------|-----------------------|-----------------------------|
|                                                                       |   Income          | WeightedAverageShares |  Per ShareAmount       |   |  Income/(Loss) | Weighted-AverageShares |  Per ShareAmount |
| Basic earnings per share                                                   |                        |                  |                        |   |   |   |   |
| Net income/(loss)                                                          | $ 617                       |                  |                        |   | $(1,577) |   |   |
| Less: Dividends and accretion on   preferred stock          |   (256)           |                  |                        |   |   (256) |   |   |
| Net income/(loss) available to common shareholders                         | $ 361                       | 1,968,777             | $0.18                       |   | $(1,833) | 1,968,777 | $(0.93) |
|                                                                       |                        |                  |                        |   |   |   |   |
| Effect of dilutive securities                                              |                        |                  |                        |   |   |   |   |
| Convertible preferred stock                                                | -                           | -                     |                        |   | - | - |   |
| Stock options                                                              | -                           | -                     |                        |   | - | - |   |
|     Warrants                                           | -                           | 64,743                |                        |   | - | - |   |
| Diluted earnings per share                                                 |                        |                  |                        |   |   |   |   |
|                                                                       |                        |                  |                        |   |   |   |   |
| Net income/(loss) available to common shareholders and assumed conversions | $361                        | 2,033,520             | $0.18                       |   | $(1,833) | 1,968,777 | $(0.93) |
|                                                                       |                        |                  |                        |   |   |   |   |
|                                                                       |                        |                  |                        |   |   |   |   |

|                                                                       | Six months ended June 30, 2010 |                  | Six months ended June 30, 2009 |
|----------------------------------------------------------------------------|--------------------------------|-----------------------|--------------------------------|
|                                                                       |   Income             | WeightedAverageShares |  Per ShareAmount          |   |  Income/(Loss) | Weighted-AverageShares |  Per ShareAmount |
| Basic earnings per share                                                   |                           |                  |                           |   |   |   |   |
| Net income/(loss)                                                          | $1,148                         |                  |                           |   | $(1,371) |   |   |
| Less: Dividends and accretion on   preferred stock          |   (510)              |                  |                           |   |   (508) |   |   |
| Net income/(loss) available to common shareholders                         | $ 638                          | 1,968,777             | $0.32                          |   | $(1,879) | 1,968,777 | $(0.95) |
|                                                                       |                           |                  |                           |   |   |   |   |
| Effect of dilutive securities                                              |                           |                  |                           |   |   |   |   |
| Convertible preferred stock                                                | -                              | -                     |                           |   | - | - |   |
| Stock options                                                              | -                              | -                     |                           |   | - | - |   |
|     Warrants                                           | -                              | 49,420                |                           |   | - | - |   |
| Diluted earnings per share                                                 |                           |                  |                           |   |   |   |   |
|                                                                       |                           |                  |                           |   |   |   |   |
| Net income/(loss) available to common shareholders and assumed conversions | $638                           | 2,018,197             | $0.32                          |   | $(1,879) | 1,968,777 | $(0.95) |
|                                                                       |                           |                  |                           |   |   |   |   |

----

----

----

----

| Average Consolidated Balance Sheets and Net Interest Analysis (Dollars in thousands) |
|--------------------------------------------------------------------------------------|
| Quarter ended June 30,                                                               |   | 2010 |   |   | 2009 |   |
|                                                                                 | AverageBalance | Income/Expense | AverageRate | AverageBalance | Income/Expense | AverageRate |
| Earning assets:                                                                      |   |   |   |   |   |   |
| Federal funds sold                                                                   | $  6,167 | $5 | 0.31% | $  3,381 | $ 1 | 0.12% |
| Available-for-sale securities (1)                                                    |   |   |   |   |   |   |
| Taxable                                                                              | 20,720 | 149 | 2.88% | 23,429 | 196 | 3.32% |
| Nontaxable (1)                                                                       | 18,767 | 277 | 5.93% | 19,332 | 286 | 5.87% |
| Federal Home Loan Bank stock                                                         | 2,025 | 22 | 4.45% | 2,025 | 23 | 4.51% |
| Loans, net (2)                                                                       | 269,058 | 4,096 | 6.11% | 262,137 | 3,848 | 5.82% |
| Total interest earning assets                                                        | 316,737 | 4,549 | 5.76% | 310,304 | 4,354 | 5.57% |
| Non-interest earning assets                                                          | 32,771 |   |   | 36,062 |   |   |
| Total Assets                                                                         |  $ 349,508 |   |   |  $ 346,366 |   |   |
|                                                                                 |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                        |   |   |   |   |   |   |
| Interest-bearing transaction accounts                                                | $  65,205 | $  91 | 0.57% | $  61,018 | $  96 | 0.62% |
| Savings accounts                                                                     | 9,701 | 7 | 0.28% | 9,017 | 7 | 0.31% |
| Time deposits                                                                        | 185,129 | 1,148 | 2.49% | 162,337 | 1,319 | 3.22% |
| Total interest-bearing deposits                                                      | 260,035 | 1,246 | 1.92% | 232,372 | 1,422 | 2.43% |
| Short-term borrowings                                                                | 34 | 0 | 0.00% | 48 | 0 | 0.00% |
| Securities sold under repurchase agreements                                          | 962 | 1 | 0.94% | 4,731 | 34 | 2.85% |
| FHLB borrowings                                                                      | 6,808 | 55 | 3.24% | 26,582 | 169 | 2.52% |
| Subordinated debentures                                                              | 5,000 | 25 | 1.97% | 5,000 | 36 | 2.86% |
| Total interest-bearing liabilities                                                   | 272,839 | 1,327 | 1.95% | 268,733 | 1,661 | 2.45% |
| Non-interest bearing deposits                                                        | 37,222 |   |   | 36,396 |   |   |
| Other liabilities                                                                    | 1,682 |   |   | 1,723 |   |   |
| Total liabilities                                                                    | 311,743 |   |   | 306,852 |   |   |
| Stockholders’ equity                                                           | 37,765 |   |   | 39,514 |   |   |
| Total Liabilities and Stockholders’   Equity                    | $  349,508 |   |   | $  346,366 |   |   |
| Net interest income                                                                  |   | $ 3,222 |   |   | $ 2,693 |   |
| Net interest spread (1)                                                              |   |   | 3.81% |   |   | 3.12% |
| Net interest margin  (1) (3)                                               |   |   | 4.08% |   |   | 3.44% |
| Return on average assets ratio                                                       |   |   | 0.71% |   |   | (1.83%) |
| Return on average equity ratio                                                       |   |   | 6.55% |   |   | (16.01%) |
| Average equity to assets ratio                                                       |   |   | 10.81% |   |   | 11.41% |
| _______________                                                                      |   |   |   |   |   |   |

----

| Average Consolidated Balance Sheets and Net Interest Analysis (Dollars in thousands) |
|--------------------------------------------------------------------------------------|
| Six months ended June 30,                                                            |   | 2010 |   |   | 2009 |   |
|                                                                                 | AverageBalance | Income/Expense | AverageRate | AverageBalance | Income/Expense | AverageRate |
| Earning assets:                                                                      |   |   |   |   |   |   |
| Federal funds sold                                                                   | $    5,219 | $8 | 0.29% | $     4,764 | $       5 | 0.21% |
| Available-for-sale securities (1)                                                    |   |   |   |   |   |   |
| Taxable                                                                              | 20,656 | 304 | 2.94% | 23,246 | 462 | 4.01% |
| Nontaxable (1)                                                                       | 18,787 | 555 | 5.96% | 19,346 | 571 | 5.95% |
| Federal Home Loan Bank stock                                                         | 2,025 | 45 | 4.52% | 2,025 | 46 | 4.58% |
| Loans, net (2)                                                                       | 266,972 | 8,065 | 6.09% | 269,105 | 7,866 | 5.89% |
| Total interest earning assets                                                        | 313,659 | 8,977 | 5.77% | 318,486 | 8,950 | 5.67% |
| Non-interest earning assets                                                          | 32,945 |   |   | 33,202 |   |   |
| Total Assets                                                                         |  $346,604 |   |   |  $351,688 |   |   |
|                                                                                 |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                        |   |   |   |   |   |   |
| Interest-bearing transaction accounts                                                | $  65,220 | $  181 | 0.57% | $  60,257 | $   188 | 0.63% |
| Savings accounts                                                                     | 9,530 | 13 | 0.28% | 8,735 | 13 | 0.30% |
| Time deposits                                                                        | 182,528 | 2,295 | 2.54% | 167,292 | 2,797 | 3.37% |
| Total interest-bearing deposits                                                      | 257,278 | 2,489 | 1.98% | 236,284 | 2,998 | 2.56% |
| Short-term borrowings                                                                | 18 | 0 | 0.00% | 25 | 0 | 0.00% |
| Securities sold under repurchase agreements                                          | 936 | 5 | 0.94% | 5,760 | 83 | 2.91% |
| FHLB borrowings                                                                      | 7,735 | 122 | 3.19% | 26,575 | 344 | 2.61% |
| Subordinated debentures                                                              | 5,000 | 48 | 1.92% | 5,000 | 74 | 2.98% |
| Total interest-bearing liabilities                                                   | 270,967 | 2,664 | 1.98% | 273,644 | 3,499 | 2.58% |
| Non-interest bearing deposits                                                        | 36,427 |   |   | 35,457 |   |   |
| Other liabilities                                                                    | 1,659 |   |   | 1,859 |   |   |
| Total liabilities                                                                    | 309,053 |   |   | 310,960 |   |   |
| Stockholders’ equity                                                           | 37,551 |   |   | 40,728 |   |   |
| Total Liabilities and Stockholders’   Equity                    | $346,604 |   |   | $351,688 |   |   |
| Net interest income                                                                  |   | $ 6,313 |   |   | $5,451 |   |
| Net interest spread (1)                                                              |   |   | 3.79% |   |   | 3.09% |
| Net interest margin  (1) (3)                                               |   |   | 4.06% |   |   | 3.45% |
| Return on average assets ratio                                                       |   |   | 0.67% |   |   | (0.79)% |
| Return on average equity ratio                                                       |   |   | 6.17% |   |   | (6.79)% |
| Average equity to assets ratio                                                       |   |   | 10.83% |   |   | 11.58% |
| _______________                                                                      |   |   |   |   |   |   |

----

|                                                            |                           | (Dollars in Thousands)                                                                          |
|-----------------------------------------------------------------|--------------------------------|-------------------------------------------------------------------------------------------------|
|                                                            |                           | Six Months Ended June 30,                                                                       |
|                                                            |                           | 2010 Vs. 2009                                                                                   |
|                                                            |                           | Increase (Decrease) Due to                                                                      |
|                                                            |                           | Rate                                                                                            |   | Volume |   | Net |
| Interest-earning assets:                                        |                           |                                                                                            |   |   |   |   |
| Federal funds sold                                              |                           | $    3                                                                      |   | $      -     |   | $   3 |
| Available-for-sale-securities:                                  |                           |                                                                                            |   |   |   |   |
|    Taxable                                       |                           | (107)                                                                                           |   | (51) |   | (158) |
|    Nontaxable (1)                                |                           | -                                                                                               |   | (16) |   | (16) |
| FHLB stock                                                      |                           | (1)                                                                                             |   | - |   | (1) |
| Loans, net                                                      |                           | 260                                                                                             |   | (61) |   | 199 |
| Total net change in income on interest-earning assets      |                           | 155                                                                                             |   | (128) |   | 27 |
|  Interest-bearing liabilities:                             |                           |                                                                                            |   |   |   |   |
| Interest-bearing transaction accounts                           |       | (22)                                                                                            |   | 15 |   | (7) |
| Savings accounts                                                |                           | (1)                                                                                             |   | 1 |   | - |
| Time deposits                                                   |                           | (757)                                                                                           |   | 255 |   | (502) |
| Securities sold under repurchase agreements                     |                           | (8)                                                                                             |   | (70) |   | (78) |
| Federal funds purchased                                         |                           | -                                                                                               |   | - |   | - |
| FHLB borrowings                                                 |                           | 22                                                                                              |   | (244) |   | (222) |
| Subordinated debentures                                         |                           | (26)                                                                                            |   | - |   | (26) |
| Total net change in expense on nterest-bearing liabilities |                           | (792)                                                                                           |   | (43) |   | (835) |
|  Net change in net interest income                         |                           |            $     947 |   |        $         (85) |   |       $          862 |
|  Percentage change                                         |                           | 109.86%                                                                                         |   | (9.86)% |   | 100.0% |

----

| ( Dollars in thousands)                      | June 30, 2010    | June 30, 2009    |      Increase(Decrease) |
|----------------------------------------------|------------------|------------------|--------------------------------------------------|
| Service charges on deposit accounts          | $  766 | $  641 | $125                                             |
| Other service charges and fees               | 174              | 180              | (6)                                              |
| Gain on sale of mortgage loans held for sale | 100              | 195              | (95)                                             |
| Gain on the sale of investment securities    | 0                | 361              | (361)                                            |
| Lease income                                 | 67               | 81               | (14)                                             |
| BOLI income                                  | 147              | 150              | (3)                                              |
| Other income                                 | 80               | 65               | 15                                               |
|                                         | $1,334           | $1,673           | $ (339)                                          |

----

| (Dollars in thousands)               | June 30, 2010 | June 30, 2009 | Increase(Decrease) |
|--------------------------------------|---------------|---------------|--------------------|
| Salaries and employee benefits       | 2,222         | 2,788         | $(566)             |
| Net occupancy expense                | 634           | 674           | (40)               |
| Equipment expense                    | 325           | 377           | (52)               |
| Advertising and public relations     | 133           | 227           | (94)               |
| Professional fees                    | 292           | 328           | (36)               |
| Data processing services             | 383           | 322           | 61                 |
| Franchise shares and deposit tax     | 234           | 249           | (15)               |
| FDIC Insurance                       | 248           | 361           | (113)              |
| Core deposit intangible amortization | 132           | 138           | (6)                |
| Postage and office supplies          | 76            | 115           | (39)               |
| Telephone and other communications   | 94            | 100           | (6)                |
| Other real estate expenses           | 94            | 106           | (12)               |
| Other operating expenses             | 302           | 334           | (32)               |
|                                 | $5,169        | $6,119        | $(950)             |

----

|                              |   | (Dollars in Thousands)                      |
|-----------------------------------|--------|---------------------------------------------|
|                              |   | June 30, 2010                               |   | December 31, 2009 |
|                              |   |                                        | % ofTotal Loans |   |   | % ofTotal Loans |
|  Commercial and agricultural |   | $      74,861 | 28.21% |   | $      74,944 | 28.40% |
| Commercial real estate            |   | 106,887                                     | 40.28% |   | 104,768 | 39.70% |
| Residential real estate           |   | 72,679                                      | 27.38% |   | 73,166 | 27.72% |
| Consumer                          |   | 10,960                                      | 4.13% |   | 11,044 | 4.18% |
|                              |   | $   265,387                  | 100.00% |   | $   263,922 | 100.00% |

----

|                               |   | (Dollars in Thousands) |
|------------------------------------|--------|------------------------|
| Loan Maturitiesas of June 30, 2010 |   | Within OneYear         |   | After One but Within Five Years |   | After FiveYears |   | Total |
| Commercial and agricultural        |   | $35,012                |   | $28,666 |   | $11,183 |   | $74,861 |
| Commercial real estate             |   | 25,383                 |   | 41,663 |   | 39,841 |   | 106,887 |
| Residential real estate            |   | 5,409                  |   | 18,867 |   | 48,403 |   | 72,679 |
| Consumer                           |   | 2,982                  |   | 7,473 |   | 505 |   | 10,960 |
| Total                              |   | $68,786                |   | $96,669 |   | $99,932 |   | $265,387 |

|                                              |   | (Dollars in Thousands)                                                       |
|---------------------------------------------------|--------|------------------------------------------------------------------------------|
|                                              |   | June 30, 2010                                                                |   | December 31, 2009 |
|  Non-performing loans                        |   | $            450 |   | $            1,230 |
| Non-performing assets                             |   | 1,822                                                                        |   | 2,384 |
| Allowance for loan losses                         |   | 4,458                                                                        |   | 3,988 |
| Non-performing assets to total assets             |   | 0.53%                                                                        |   | 0.69% |
| Net charge-offs to average total loans            |   | 0.14%                                                                        |   | 1.72% |
| Allowance for loan losses to non-performing loans |   | 990.67%                                                                      |   | 324.23% |
| Allowance for loan losses to total loans          |   | 1.68%                                                                        |   | 1.51% |

----

----

|                                                     | June 30, 2010 | June 30, 2009 |
|----------------------------------------------------------|---------------|---------------|
| (Dollars In thousands)                                   |          |          |
| Balance, beginning of year                               | $3,988        | $3,816        |
| Provision for loan losses                                | 850           | 3,200         |
| Amounts charged off:                                     |          |          |
| Commercial                                               | (119)         | (2,602)       |
| Commercial real estate                                   | (167)         | (516)         |
| Residential real estate                                  | (190)         | (151)         |
| Consumer                                                 | (46)          | (165)         |
| Total loans charged off:                                 | (522)         | (3,434)       |
| Recoveries of  amounts previously charged off: |          |          |
| Commercial                                               | 125           | 59            |
| Commercial real estate                                   | 6             | -             |
| Residential real estate                                  | 8             | 14            |
| Consumer                                                 | 3             | 2             |
| Total recoveries                                         | 142           | 75            |
| Net (charge-offs) recoveries                             | (380)         | (3,359)       |
| Balance, end of period                                   | $4,458        | $3,657        |

|                                           |   | (Dollars in Thousands)                                                                   |
|------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                                           |   | June 30, 2010                                                                            |   | December 31, 2009 |
|                                           |   | Amount                                                                                   | % of Loansin EachCategoryto TotalLoans |   | Amount | % of Loansin EachCategoryto TotalLoans |
|                                           |   |                                                                                     |
|                                           |   |                                                                                     |
|                                           |   |                                                                                     |
|                                           |   |                                                                                     |
|  Residential  real estate loans |   | $              798 | 27.38% |   | $              805 | 27.72% |
| Consumer and other loans                       |   | 145                                                                                      | 4.13% |   | 148 | 4.18% |
| Commercial and agricultural                    |   | 2,567                                                                                    | 28.21% |   | 2,085 | 28.40% |
| Commercial real estate                         |   | 831                                                                                      | 40.28% |   | 892 | 39.70% |
| Unallocated                                    |   |          117                                |     0.00% |   |          58 |     0.00% |
|  Total allowance for loan losses          |   | $           4,458                 | 100.00% |   | $           3,988 | 100.00% |

----

|                                           |   | (Dollars in Thousands) |
|------------------------------------------------|--------|------------------------|
|                                           |   | June 30, 2010          |   | December 31, 2009 |
| U.S. Treasury and U.S. Government agencies     |   | $19,844                |   | $19,102 |
| Agency mortgage-backed securities: residential |   | 1,807                  |   | 2,061 |
| Municipal securities                           |   | 19,231                 |   | 19,196 |
| Other securities                               |   | 900                    |   | 700 |
| Total available-for-sale securities            |   | $41,782                |   | $41,059 |

| June 30, 2010                                                                                                                                                                                                                                                                          |   | (Dollars in Thousands)                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|
|                                                                                                                                                                                                                                                                                   |   | One Yearor Less                              | OverOne YearThroughFive Years | OverFive YearsThroughTen Years | OverTen Years | TotalMaturities | FairValue |
| U.S. Government agencies                                                                                                                                                                                                                                                               |   | $       - | $     5,997 | $12,725 | $  1,021 | $ 19,743 | $19,844 |
| Agency mortgage-backed securities: (1)                                                                                                                                                                                                                                                 |   |       32       | 1,693 | - | - | 1,725 | 1,807 |
| Municipal securities                                            |   | 381                                          | 2,539 | 7,700 | 8,076 | 18,696 | 19,231 |
| Other Securities                                                |   | -                                            | - | - | 1,862 | 1,862 | 900 |
|   Total available-for-sale securities                                                                                                                                                                                                                                        |   | $  413                             | $ 10,229 | $20,425 | $ 10,959 | $ 42,026 | $ 41,782 |
|                                                                                                                                                                                                                                                                                   |   |                                         |   |   |   |   |   |
| Percent of total                                                |   | 1.0%                                         | 24.3% | 48.6% | 26.1% | 100.0% |   |
| Weighted average yield(2)                                                                                                                                                                                                                                                         |   | 5.62%                                        | 3.05% | 3.52% | 5.59% | 3.98% |   |

| (1) | Agency mortgage-backed securities (residential) are grouped into average lives based on June 2010 prepayment projections. |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (2) | The weighted average yields are based on amortized cost and municipal securities are calculated on a full tax-equivalent basis. |   |
|-----|---------------------------------------------------------------------------------------------------------------------------------|--------|

----

|                                | (Dollars in Thousands)                      |
|-------------------------------------|---------------------------------------------|
|                                | June 30, 2010                               |
| Three months or less                |  $    18,438            |
| Over three through six months       |        19,892      |
| Over six through twelve months      |       19,334  |
| Over one year through three years   |       20,019       |
| Over three years through five years |         1,225 |
| Over five years                     | -                                           |
| Total                               | $   78,908                   |

----

|   |   |              |   |   |   | (Dollars in Thousands) |
|--------|--------|-------------------|--------|--------|--------|------------------------|
| Type   |   | Maturity          |   | Rate   |   | Amount                 |
| Fixed  |   | August 22, 2012   |   | 1.09%  |   | 2,000                  |
| Fixed  |   | August 28, 2012   |   | 4.25%  |   | 500                    |
| Fixed  |   | December 24, 2012 |   | 3.36%  |   | 2,000                  |
| Fixed  |   | December 24, 2014 |   | 3.46%  |   | 2,000                  |
| Fixed  |   | February 25, 2015 |   | 2.85%  |   | 2,000                  |
|   |   |              |   |   |   |  $8,500           |

| (Dollars in thousands)                                        |          |
|---------------------------------------------------------------|---------------|
|                                                          | June 30, 2010 |
|  Federal funds purchased and repurchase agreements:      |          |
| Balance at period end                                         | $810          |
| Weighted average rate at period end                           | 0.94%         |
| Average balance during the six months ended June 30, 2010     | $936          |
| Weighted average rate for the six months ending June 30, 2010 | 0.94%         |
| Maximum month-end balance                                     | $918          |

----

----

| Our capital ratios (calculated in accordance with regulatory guidelines) were as follows:                                                                                                                                                                       |   | June 30, 2010 |   | December 31, 2009 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|-------------------|
| Tier 1 leverage ratio                                        |   | 10.69%        |   | 10.52%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%         |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | N/A           |   | N/A               |
| Tier 1 risk-based capital ratio                                                                                                                                                                                                                                 |   | 12.84%        |   | 12.54%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%         |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | N/A           |   | N/A               |
| Total risk-based capital ratio                                                                                                                              |   | 14.09%        |   | 13.79%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 8.00%         |   | 8.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | N/A           |   | N/A               |

|                                                                                                                                                                                                                                                            |   | June 30, 2010 |   | December 31, 2009 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|-------------------|
| Tier 1 leverage ratio                                        |   | 9.54%         |   | 9.38%             |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%         |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | 5.00%         |   | 5.00%             |
| Tier 1 risk-based capital ratio                                                                                                                                                                                                                                 |   | 11.44%        |   | 11.12%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%         |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | 6.00%         |   | 6.00%             |
| Total risk-based capital ratio                                                                                                                              |   | 12.69%        |   | 12.37%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 8.00%         |   | 8.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | 10.00%        |   | 10.00%            |

----

| Projections for: Jul 2010 - Jun 2011 |
|--------------------------------------|
| Projected Interest Rate Change       | Estimated Value | Net Interest Income $ Change From Base | % Change From Base |
| +400                                 | 13,754,266 | 904,978 | 7.04% |
| +300                                 | 13,291,620 | 442,332 | 3.44% |
| +200                                 | 12,855,747 | 6,458 | 0.05% |
| Base                                 | 12,849,289 | 0 | 0.00% |
| -200                                 | 12,926,209 | 76,920 | 0.60% |
| -300                                 | 12,695,776 | -153,513 | -1.19% |

----

----

|   | 3.1 | Restated Articles of Incorporation of Citizens First Corporation, as amended (incorporated by reference to Exhibit 3.1 of the Company’s Registration Statement on Form SB-2 (No. 333-103238)). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (incorporated by reference to Exhibit 3. 3 of the Registrant’s Form 10-QSB dated June 30, 2004). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.3 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (incorporated by reference to Exhibit 3. 1 of the Registrant’s Form 8-K filed June 5, 2007). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.4 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (incorporated by reference to Exhibit 3. 1 of the Registrant’s Form 8-K filed December 23, 2008). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.5 | Amended and Restated Bylaws of Citizens First Corporation (incorporated by reference to Exhibit 3 of the Registrant’s Current Report on Form 8-K/A filed April 27, 2009). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Restated Articles of Incorporation of Citizens First Corporation, as amended (see Exhibit 3.1). |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | 4.2 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (see Exhibits 3.2, 3.3 and 3.4). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3 | Amended and Restated Bylaws of Citizens First Corporation (see Exhibit 3.5). |
|--------|-----|------------------------------------------------------------------------------|

|   | 4.4      Copy of Registrants’ Agreement Pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K dated March 30, 2007 with respect to certain debt instruments (incorporated by reference to Exhibit 4.4 of the Registrant’s Form 10K-SB dated June 30, 2007). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.5 | Warrant to Purchase Common Stock (incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K filed December 23, 2008). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|--------|------|---------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|--------|------|---------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section1350. |
|--------|------|-----------------------------------------------------------------------------|

----

|   |          | CITIZENS FIRST CORPORATION                           |
|--------|---------------|------------------------------------------------------|
|   |          |                                                 |
|   |          |                                                 |
| Date:  | July 30, 2010 | /s/   M. Todd Kanipe                       |
|   |          | M. Todd Kanipe                                       |
|   |          | President and Chief Executive Officer                |
|   |          |                                                 |
|   |          |                                                 |
|   |          |                                                 |
|   |          |                                                 |
|   | July 30, 2010 | /s/   J. Steven Marcum                     |
|   |          | J. Steven Marcum                                     |
|   |          | Executive Vice President and Chief Financial Officer |
|   |          |                                                 |