| 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                                  | 37 |
|                                 |                                                                                        |   |
| ITEM 4                               | CONTROLS AND PROCEDURES                                                                     | 38 |
|                                 |                                                                                        |   |
| PART II-OTHER INFORMATION            |                                                                                        |   |
|                                 |                                                                                        |   |
| ITEM   6              | EXHIBITS                                                                                    | 39 |
|                                 |                                                                                        |   |
| SIGNATURES                           | 40                                                                                          |

----

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

| Citizens First Corporation                                                                                                                                                                                        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Unaudited Consolidated Balance SheetsDollars in thousands                                                                                                                                                         |
|                                                                                                                                                                                                              | September 30, 2010 |   | December 31, 2009 |
| Assets                                                                                                                                                                                                            |
| Cash and due from financial institutions                                                                                                                                                                          | $5,437 |   | $6,619 |
| Federal funds sold                                                                                                                                                                                                | 6,256 |   | 3,137 |
| Cash and cash equivalents                                                                                                                                                                                         | 11,693 |   | 9,756 |
| Available for sale securities                                                                                                                                                                                     | 40,513 |   | 41,059 |
| Loans held for sale                                                                                                                                                                                               | 844 |   | 295 |
| Loans, net of allowance of $4,839 and $3,988 at September 30, 2010 and December 31, 2009, respectively                                                                                                            |  259,444 |   | 259,934 |
| Premises and equipment, net                                                                                                                                                                                       | 10,455 |   | 10,846 |
| Bank owned life insurance                                                                                                                                                                                         | 6,981 |   | 6,760 |
| Federal Home Loan Bank (FHLB) stock, at cost                                                                                                                                                                      | 2,025 |   | 2,025 |
| Accrued interest receivable                                                                                                                                                                                       | 2,154 |   | 2,111 |
| Deferred income taxes                                                                                                                                                                                             | 3,825 |   | 3,888 |
| Goodwill                                                                                                                                                                                                          | 2,575 |   | 2,575 |
| Core deposit intangible                                                                                                                                                                                           | 1,095 |   | 1,293 |
| Other assets                                                                                                                                                                                                      | 2,839 |   | 3,689 |
|                                                                                                                                                                                                              |   |   |   |
| Total assets                                                                                                                                                                                                      | $344,443 |   | $344,231 |
|                                                                                                                                                                                                              |   |   |   |
| Liabilities and Stockholders' Equity                                                                                                                                                                              |
|                                                                                                                                                                                                              |   |   |   |
| Liabilities                                                                                                                                                                                                       |   |   |   |
| Deposits:                                                                                                                                                                                                         |   |   |   |
| Non-interest bearing                                                                                                                                                                                              | $36,390 |   | $36,586 |
| Savings, NOW and money market                                                                                                                                                                                     | 68,296 |   | 75,244 |
| Time                                                                                                                                                                                                              | 184,630 |   | 176,690 |
| Total deposits                                                                                                                                                                                                    | 289,316 |   | 288,520 |
|                                                                                                                                                                                                              |   |   |   |
| Securities sold under repurchase agreements                                                                                                                                                                       | 786 |   | 800 |
| FHLB advances                                                                                                                                                                                                     | 8,500 |   | 11,500 |
| Subordinated debentures                                                                                                                                                                                           | 5,000 |   | 5,000 |
| Accrued interest payable                                                                                                                                                                                          | 385 |   | 440 |
| Other liabilities                                                                                                                                                                                                 | 1,836 |   | 1,113 |
|                                                                                                                                                                                                              |   |   |   |
| Total liabilities                                                                                                                                                                                                 | 305,823 |   | 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 September 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 September 30, 2010 and at December 31, 2009, respectively   | 8,571 |   | 8,523 |
| Common stock, no par value; authorized 5,000,000 shares; issued and outstanding 1,968,777 shares at September 30, 2010 and  at December 31, 2009, respectively                                          | 27,072 |   |                                                27,072 |
| Accumulated deficit                                                                                                                                                                                               | (4,833) |   | (5,873) |
| Accumulated other comprehensive income (loss)                                                                                                                                                                     | 151 |   | (523) |
| Total stockholders' equity                                                                                                                                                                                        | 38,620 |   | 36,858 |
| Total liabilities  and stockholders' equity                                                                                                                                                             | $344,443 |   | $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 September 30 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2010 |   | 2009 |
| Interest and dividend income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |
| Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $4,049 |   | $3,969 |
| Taxable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 163 |   | 146 |
| Non-taxable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 182 |   | 188 |
| Federal funds sold and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 30 |   | 27 |
| Total interest and dividend income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 4,424 |   | 4,330 |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 1,170 |   | 1,297 |
| FHLB advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 60 |   | 147 |
| Subordinated debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 28 |   | 29 |
| Short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2 |   | 13 |
| Total interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 1,260 |   | 1,486 |
| Net interest income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,164 |   | 2,844 |
| Provision for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 375 |   | 300 |
| Net interest income after provision for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2,789 |   | 2,544 |
| Non-interest income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |
| Service charges on deposit accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 418 |   | 353 |
| Other service charges and fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 116 |   | 112 |
| Gain on sale of mortgage loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 95 |   | 63 |
| Lease income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 44 |   | 38 |
| BOLI income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 74 |   | 76 |
| Other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 34 |   | 34 |
| Total non-interest income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 781 |   | 676 |
| Non-interest expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
| Salaries and employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 1,154 |   | 1,304 |
| Net occupancy expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 325 |   | 336 |
| Equipment expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 158 |   | 192 |
| Advertising and public relations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 73 |   | 113 |
| Professional fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 145 |   | 120 |
| Data processing services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 178 |   | 179 |
| Franchise shares and deposit tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 129 |   | 114 |
| FDIC Insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 112 |   | 128 |
| Core deposit  intangible amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 66 |   | 69 |
| Postage and office supplies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 47 |   | 50 |
| Telephone and other communication                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 45 |   | 49 |
| Other real estate owned expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 100 |   | 43 |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 173 |   | 165 |
| Total non-interest expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2,705 |   | 2,862 |
| Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 865 |   | 358 |
| Provision for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 207 |   | 31 |
| Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $  658 |   | $  327 |
| Dividends and accretion on preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 257 |   | 256 |
| Net income available for common stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $  401 |   | $    71 |
| Basic earnings per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $ 0.21 |   | $ 0.03 |
| Diluted earnings per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $ 0.20 |   | $ 0.03 |
| See Notes to Unaudited Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

| Citizens First CorporationUnaudited Consolidated Statements of OperationsDollars in thousands, except per share data |
|----------------------------------------------------------------------------------------------------------------------|
| Nine months ended September 30,                                                                                      |
|                                                                                                                 | 2010 |   | 2009 |
| Interest and dividend income                                                                                         |   |   |   |
| Loans                                                                                                                | $12,114 |   | $11,835 |
| Taxable securities                                                                                                   | 466 |   | 608 |
| Non-taxable securities                                                                                               | 549 |   | 565 |
| Federal funds sold and other                                                                                         | 83 |   | 78 |
| Total interest and dividend income                                                                                   | 13,212 |   | 13,086 |
| Interest expense                                                                                                     |   |   |   |
| Deposits                                                                                                             | 3,660 |   | 4,295 |
| FHLB advances                                                                                                        | 183 |   | 491 |
| Subordinated debentures                                                                                              | 75 |   | 103 |
| Short-term borrowings                                                                                                | 6 |   | 96 |
| Total interest expense                                                                                               | 3,924 |   | 4,985 |
| Net interest income                                                                                                  | 9,288 |   | 8,101 |
| Provision for loan losses                                                                                            | 1,225 |   | 3,500 |
| Net interest income after provision for loan losses                                                                  | 8,063 |   | 4,601 |
| Non-interest income                                                                                                  |   |   |   |
| Service charges on deposit accounts                                                                                  | 1,184 |   | 994 |
| Other service charges and fees                                                                                       | 290 |   | 292 |
| Gain on sale of mortgage loans                                                                                       | 194 |   | 258 |
| Lease income                                                                                                         | 111 |   | 119 |
| BOLI income                                                                                                          | 221 |   | 226 |
| Gain on sale of investments                                                                                          | 0 |   | 361 |
| Other income                                                                                                         | 115 |   | 99 |
| Total non-interest income                                                                                            | 2,115 |   | 2,349 |
| Non-interest expenses                                                                                                |   |   |   |
| Salaries and employee benefits                                                                                       | 3,376 |   | 4,092 |
| Net occupancy expense                                                                                                | 959 |   | 1,010 |
| Equipment expense                                                                                                    | 483 |   | 569 |
| Advertising and public relations                                                                                     | 206 |   | 340 |
| Professional fees                                                                                                    | 437 |   | 448 |
| Data processing services                                                                                             | 560 |   | 501 |
| Franchise shares and deposit tax                                                                                     | 363 |   | 365 |
| FDIC Insurance                                                                                                       | 361 |   | 489 |
| Core deposit  intangible amortization                                                                      | 198 |   | 207 |
| Postage and office supplies                                                                                          | 123 |   | 165 |
| Telephone and other communication                                                                                    | 138 |   | 149 |
| Other real estate owned expenses                                                                                     | 194 |   | 149 |
| Other                                                                                                                | 476 |   | 497 |
| Total non-interest expenses                                                                                          | 7,874 |   | 8,981 |
| Income (loss) before income taxes                                                                                    | 2,304 |   | (2,031) |
| Provision (benefit) for income taxes                                                                                 | 498 |   | (987) |
| Net income (loss)                                                                                                    | $1,806 |   | $(1,044) |
| Dividends and accretion on preferred stock                                                                           | 767 |   | 764 |
| Net income (loss) available for common stockholders                                                                  | $1,039 |   | $(1,808) |
| Basic earnings (loss) per common share                                                                               | $ 0.53 |   | $(0.92) |
| Diluted earnings (loss) per common share                                                                             | $ 0.52 |   | $(0.92) |
| See Notes to Unaudited Consolidated Financial Statements                                                             |

----

| Citizens First Corporation                                                                                            |
|-----------------------------------------------------------------------------------------------------------------------|
| Unaudited Consolidated Statements of Changes in Stockholders' EquityDollars in thousands (except per share data) |
|  Nine months ended September 30,                                                                                 |
|                                                                                                                  | 2010 |   | 2009 |
|                                                                                                                  |   |
|                                                                                                                  |   |   |   |
| Balance January 1                                                                                                     | $36,858 |   | $39,285 |
| Net income (loss)                                                                                                     | 1,806 |   | (1,044) |
| Stock-based compensation                                                                                              | - |   | 13 |
| Payment of preferred dividends, $1,437 and $1,432 per share for 2010 and 2009                                         | (719) |   | (716) |
| Other comprehensive income, net of tax                                                                                | 675 |   | 440 |
| Balance at end of period                                                                                              | $38,620 |   | $37,978 |
|                                                                                                                  |   |   |   |

|                                                                                 |
|--------------------------------------------------------------------------------------|
| Citizens First Corporation                                                           |
| Unaudited Consolidated Statements of Comprehensive Income (Loss)Dollars in thousands |
| Three months ended September 30,                                                     |
|                                                                                 | 2010 |   | 2009 |
|                                                                                 |   |   |   |
| Net income                                                                           | $658 |   | $  327 |
| Other comprehensive income, net of tax:                                              |   |   |   |
| Unrealized gain on available for sale securities, net                                | 313 |   | 776 |
|                                                                                 |   |   |   |
| Comprehensive income                                                                 | $971 |   | $1,103 |
|                                                                                 |   |   |   |

| Citizens First Corporation                                                           |
|--------------------------------------------------------------------------------------|
| Unaudited Consolidated Statements of Comprehensive Income (Loss)Dollars in thousands |
| Nine months ended September 30,                                                      |
|                                                                                 | 2010 |   | 2009 |
|                                                                                 |   |   |   |
| Net income (loss)                                                                    | $   1,806 |   | $(1,044) |
| Other comprehensive income, net of tax:                                              |   |   |   |
| Unrealized gain on available for sale securities, net                                | 675 |   | 440 |
|                                                                                 |   |   |   |
| Comprehensive income (loss)                                                          | $2,481 |   | $   (604) |
|                                                                                 |   |   |   |

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

----

| Citizens First CorporationUnaudited Consolidated Statements of Cash FlowsDollars in thousands                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                Nine months ended September 30                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2010 |   | 2009 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
| Operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |
| Net  income/(loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $1,806 |   | $(1,044) |
| Adjustments to reconcile net income/(loss) to net cash provided by (used in) operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |
| Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 584 |   | 636 |
| Stock-based compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | - |   | 13 |
| Provision for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 1,225 |   | 3,500 |
| Amortization of premiums and discounts on securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 32 |   | 82 |
| Amortization of core deposit intangible                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 198 |   | 207 |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (284) |   | (1,141) |
| Sale of mortgage loans held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 11,337 |   | 19,311 |
| Origination of mortgage loans for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (11,691) |   | (21,377) |
| Bank-owned life insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (221) |   | (226) |
| Gain on the sale of securities available-for-sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | - |   | (361) |
| Loss/(Gain) on the sale of property plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 9 |   | (14) |
| Gains on sales of loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (194) |   | (258) |
| Net loss on sale of other real estate owned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 162 |   | 92 |
| Changes in:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |
| Interest receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (42) |   | 268 |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 978 |   | 632 |
| Interest payable and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 668 |   | (322) |
| Net cash provided by (used in) operating  activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 4,567 |   | (2) |
| Investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |
| Loan originations and payments, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (1,196) |   | 8,313 |
| Purchases of premises and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (230) |   | (623) |
| Purchase of available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (24,625) |   | (22,092) |
| Proceeds from maturities of available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 26,161 |   | 11,953 |
| Proceeds from sales of available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | - |   | 12,278 |
| Proceeds from sale of other real estate owned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 170 |   | 792 |
| Proceeds from disposal of property plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 27 |   | 103 |
| Net cash provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 307 |   | 10,724 |
| Financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |
| Net change in demand deposits, money market, NOW, and savings accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (7,144) |   | 5,277 |
| Net change in time deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 7,940 |   | (2,518) |
| Proceeds from FHLB advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 7,800 |   | 21,500 |
| Repayment of FHLB advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (10,800) |   | (29,500) |
| Net change in repurchase agreements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (14) |   | (6,741) |
| Dividends paid on preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (719) |   | (716) |
| Net cash provided by/(used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (2,937) |   | (12,698) |
| Increase/(Decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 1,937 |   | (1,976) |
| Cash and cash equivalents, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 9,756 |   | 15,331 |
| Cash and cash equivalents, end of quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $11,693 |   | $13,355 |
| Supplemental Cash Flows  Information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
| Interest paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $3,978 |   | $5,199 |
| Income taxes paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $   130 |   | $       - |
| Loans transferred to other real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $   461 |   | $  485 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 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                          | 596    | $12.93                         |   |
| Expired                            | -      | -                              |   |
| Outstanding, end of period         | 90,664 | $15.22                         |   |
| Options exercisable, end of period | 90,664 | $15.22                         |   |

|                                           |                | (Dollars in Thousands) |
|------------------------------------------------|---------------------|------------------------|
|                                           |  AmortizedCost | GrossUnrealizedGains   | GrossUnrealizedLosses | FairValue |
|  September 30, 2010                       |                |                   |   |   |
| U. S. government agencies                      | $9,524              | $73                    | $    - | $ 9,597 |
| State and municipal                            | 18,691              | 1,013                  | - | 19,704 |
| Agency mortgage-backed securities: residential |  10,207        | 110                    | (5) | 10,312 |
| Trust preferred security                       | 1,862               | -                      | (962) | 900 |
|  Total investment securities              |  $40,284       | $1,196                 | $(967) | $40,513 |
|  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 |

----

|                                |                         | September 30, 2010(Dollars in Thousands) |
|-------------------------------------|------------------------------|------------------------------------------|
|                                |                         | Available for Sale                  |
|                                | Amortized Cost               |                                     | Fair Value |
| Due in one year or less             | $    380 |                                     | $     381 |
| Due from one to five years          | 6,037                        |                                     | 6,226 |
| Due from five to ten years          | 13,426                       |                                     | 13,953 |
| Due after ten years                 | 10,234                       |                                     | 9,641 |
| Agency mortgage-backed: residential | 10,207                       |                                     | 10,312 |
|  Total                         | $40,284                      |                                     |  $40,513 |

|                                                       | (Dollars in Thousands) |
|------------------------------------------------------------|------------------------|
|                                                       | Less than 12 Months    | 12 Months or More | Total |
| Description ofSecurities                                   | Fair Value             | UnrealizedLosses | Fair Value | UnrealizedLosses | Fair Value | UnrealizedLosses |
|  September 30, 2010:                                  |                   |   |   |   |   |   |
| Agency mortgage-backed securities:  -residential | $981                   | $(5) | - | - | $981 | $  (5) |
| Trust preferred security                                   | -                      | - | 900 | (962) | 900 | (962) |
|  Total temporarily impaired                      | $981                   | $(5) | $900 | $(962) | $1,881 |  $(967) |

|                                  | (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)           |
|--------------------------------|--------|----------------------------------|
|                           |   | September 30, 2010               |   | December 31, 2009 |
|                           |   |                             |   |   |
| Commercial and agricultural    |   |     $67,816  |   |     $74,944 |
| Commercial real estate         |   | 111,273                          |   | 104,768 |
| Residential real estate        |   | 75,083                           |   | 73,166 |
| Consumer                       |   | 10,111                           |   | 11,044 |
| Total loans                    |   | 264,283                          |   | 263,922 |
| Less allowance for loan losses |   | (4,839)                          |   | (3,988) |
|  Net loans                |   |     $259,444 |   |     $      259,934 |

----

|                              |   | (Dollars in Thousands)                                                               |
|-----------------------------------|--------|--------------------------------------------------------------------------------------|
|                              |   | September 30, 2010                                                                   |   | September 30, 2009 |
|  Balance, beginning of year, |   |     $3,988                                                       |   |     $3,816 |
| Provision charged to expense      |   | 1,225                                                                                |   | 3,500 |
| Loans charged off                 |   | (629)                                                                                |   | (3,618) |
| Recoveries                        |   | 255                                                                                  |   | 79 |
|  Balance, end of period      |   |  $            4,839 |   |  $            3,777 |

|                                       |   | (Dollars in Thousands)                                                                                                                        |
|--------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   | September 30, 2010                                                                                                                            |   | December 31, 2009 |
|  Principal balance of impaired loans, |   |     $1,184                                                                                                                |   |     $1,230 |
| Impaired loans with a valuation allowance  |   |  1,118                                                                                                                                   |   |   1,085 |
| Amount of valuation allowance              |   | 111                                                                                                                                           |   | 256 |
| Impaired loans with no valuation allowance |   |                         66 |   | 145 |
|                                       |   |                                                                                                                                          |   |   |

|                                                  |   | (Dollars in Thousands)       |
|-------------------------------------------------------|--------|------------------------------|
|                                                  |   | September 30, 2010           |   | December 31, 2009 |
|  Loans past due 90 days or more still on accrual |   |     $725 |   |     $48 |
| Non-accrual loans                                     |   |   459                   |   |     1,182 |

|   | Level 1 – Quoted prices in active markets for identical assets or liabilities. |
|--------|--------------------------------------------------------------------------------------|

----

|                                           |                          Fair Value Measurements at September 30, 2010, Using(Dollars in Thousands) |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                           |
|                                           |  September 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                      | $9,597                                                                                                                                                                                                                           |   | $9,597 |   |
| State and municipal                            | 19,704                                                                                                                                                                                                                           |   | 19,704 |   |
| Agency mortgage-backed securities -residential | 10,312                                                                                                                                                                                                                           |   | 10,312 |   |
| Trust preferred security                       | 900                                                                                                                                                                                                                              |   | 900 |   |
| Total investment securities                    | $40,513                                                                                                                                                                                                                          | - | $40,513 | - |

----

|                                           |                          Fair Value Measurements at Dece,ber 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 September 30, 2010, Using(Dollars in Thousands) |
|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |
|                         |  September 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               | $1,030                                                                                                                                                                                                                           |   |   | $1,030 |
| Other real estate owned, net | $1,283                                                                                                                                                                                                                           |   |   | $1,283 |

|                         |                          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) |
|------------------------------|--------|------------------------|
|                         |   | September 30, 2010     |   | December 31, 2009 |
|                         |   | Carrying Amount        | Fair Value |   | Carrying Amount | Fair Value |
|  Financial Assets       |   |                   |   |   |   |   |
| Cash and cash equivalents    |   | $11,693                | $11,693 |   | $9,756 | $9,756 |
| Loans held for sale          |   | 844                    | 857 |   | 295 | 295 |
| Loans, net of allowance      |   | 258,543                | 259,048 |   | 258,858 | 260,852 |
| Accrued interest receivable  |   | 2,154                  | 2,154 |   | 2,111 | 2,111 |
| Federal Home Loan Bank stock |   | 2,025                  | N/A |   | 2,025 | N/A |

|                                        |   | (Dollars in Thousands) |
|---------------------------------------------|--------|------------------------|
|                                        |   | September 30, 2010     |   | December 31, 2009 |
|                                        |   | Carrying Amount        | Fair Value |   | Carrying Amount | Fair Value |
|  Financial Liabilities                 |   |                   |   |   |   |   |
| Deposits                                    |   | $289,316               | $290,899 |   | $288,520 | $288,871 |
| Securities sold under repurchase agreements |   | 786                    | 786 |   | 800 | 800 |
| FHLB advances                               |   | 8,500                  | 8,987 |   | 11,500 | 11,824 |
| Subordinated debentures                     |   | 5,000                  | 3,094 |   | 5,000 | 3,094 |
| Accrued interest payable                    |   | 385                    | 385 |   | 440 | 440 |

----

|                                                                       | Quarter ended September 30, 2010 |                  | Quarter ended September 30, 2009 |
|----------------------------------------------------------------------------|----------------------------------|-----------------------|----------------------------------|
|                                                                       |   Income               | WeightedAverageShares |  Per ShareAmount            |   |  Income/(Loss) | Weighted-AverageShares |  Per ShareAmount |
| Basic earnings per common share                                            |                             |                  |                             |   |   |   |   |
| Net income/(loss)                                                          | $ 658                            |                  |                             |   | $327 |   |   |
| Less: Dividends and accretion on   preferred stock          |   (257)                |                  |                             |   |   (256) |   |   |
| Net income/(loss) available to common shareholders                         | $ 401                            | 1,968,777             | $0.21                            |   | $71 | 1,968,777 | $0.03 |
| Effect of dilutive securities                                              |                             |                  |                             |   |   |   |   |
| Convertible preferred stock                                                | -                                | -                     |                             |   | - | - |   |
| Stock options                                                              | -                                | -                     |                             |   | - | - |   |
|     Warrants                                           | -                                | 65,558                |                             |   | - | - |   |
| Diluted earnings per common share                                          |                             |                  |                             |   |   |   |   |
| Net income/(loss) available to common shareholders and assumed conversions | $401                             | 2,034,335             | $0.20                            |   | $71 | 1,968,777 | $0.03 |
|                                                                       |                             |                  |                             |   |   |   |   |
|                                                                       |                             |                  |                             |   |   |   |   |

|                                                                       | Nine months ended September 30, 2010 |                  | Nine months ended September 30, 2009 |
|----------------------------------------------------------------------------|--------------------------------------|-----------------------|--------------------------------------|
|                                                                       |   Income                   | WeightedAverageShares |  Per ShareAmount                |   |  Income/(Loss) | Weighted-AverageShares |  Per ShareAmount |
| Basic earnings per common share                                            |                                 |                  |                                 |   |   |   |   |
| Net income/(loss)                                                          | $1,806                               |                  |                                 |   | $(1,044) |   |   |
| Less: Dividends and accretion on   preferred stock          |   (767)                    |                  |                                 |   |   (764) |   |   |
| Net income/(loss) available to common shareholders                         | $1,039                               | 1,968,777             | $0.53                                |   | $(1,808) | 1,968,777 | $(0.92) |
| Effect of dilutive securities                                              |                                 |                  |                                 |   |   |   |   |
| Convertible preferred stock                                                | -                                    | -                     |                                 |   | - | - |   |
| Stock options                                                              | -                                    | -                     |                                 |   | - | - |   |
|     Warrants                                           | -                                    | 55,298                |                                 |   | - | - |   |
| Diluted earnings per common share                                          |                                 |                  |                                 |   |   |   |   |
| Net income/(loss) available to common shareholders and assumed conversions | $1,039                               | 2,024,075             | $0.52                                |   | $(1,808) | 1,968,777 | $(0.92) |
|                                                                       |                                 |                  |                                 |   |   |   |   |
|                                                                       |                                 |                  |                                 |   |   |   |   |

----

----

----

----

| Average Consolidated Balance Sheets and Net Interest Analysis (Dollars in thousands) |
|--------------------------------------------------------------------------------------|
| Quarter ended September 30,                                                          |   | 2010 |   |   | 2009 |   |
|                                                                                 | AverageBalance | Income/Expense | AverageRate | AverageBalance | Income/Expense | AverageRate |
| Earning assets:                                                                      |   |   |   |   |   |   |
| Federal funds sold                                                                   | $  8,903 | $7 | 0.31% | $  3,132 | $ 2 | 0.25% |
| Available-for-sale securities (1)                                                    |   |   |   |   |   |   |
| Taxable                                                                              | 22,729 | 163 | 2.84% | 21,574 | 146 | 2.68% |
| Nontaxable (1)                                                                       | 18,694 | 277 | 5.87% | 19,298 | 286 | 5.88% |
| Federal Home Loan Bank stock                                                         | 2,025 | 23 | 4.45% | 2,025 | 26 | 5.09% |
| Loan receivables (2)                                                                 | 265,763 | 4,049 | 6.05% | 260,769 | 3,969 | 6.04% |
| Total interest earning assets                                                        | 318,114 | 4,519 | 5.64% | 306,798 | 4,429 | 5.73% |
| Non-interest earning assets                                                          | 32,188 |   |   | 33,933 |   |   |
| Total Assets                                                                         |  $ 350,302 |   |   |  $ 340,731 |   |   |
|                                                                                 |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                        |   |   |   |   |   |   |
| Interest-bearing transaction accounts                                                | $  61,745 | $  82 | 0.53% | $  60,094 | $  94 | 0.62% |
| Savings accounts                                                                     | 10,032 | 7 | 0.29% | 9,267 | 7 | 0.30% |
| Time deposits                                                                        | 186,773 | 1,081 | 2.30% | 165,721 | 1,196 | 2.86% |
| Total interest-bearing deposits                                                      | 258,550 | 1,170 | 1.80% | 235,082 | 1,297 | 2.19% |
| Short-term borrowings                                                                | 2 | 0 | 0.00% | 0 | 0 | 0.00% |
| Securities sold under repurchase agreements                                          | 854 | 2 | 0.93% | 2,235 | 13 | 2.31% |
| FHLB borrowings                                                                      | 8,500 | 60 | 2.82% | 21,880 | 147 | 2.67% |
| Subordinated debentures                                                              | 5,000 | 28 | 2.21% | 5,000 | 29 | 2.30% |
| Total interest-bearing liabilities                                                   | 272,906 | 1,260 | 1.83% | 264,197 | 1,486 | 2.23% |
| Non-interest bearing deposits                                                        | 37,030 |   |   | 36,994 |   |   |
| Other liabilities                                                                    | 1,910 |   |   | 1,949 |   |   |
| Total liabilities                                                                    | 311,846 |   |   | 303,140 |   |   |
| Stockholders’ equity                                                           | 38,456 |   |   | 37,591 |   |   |
| Total Liabilities and Stockholders’   Equity                    | $  350,302 |   |   | $  340,731 |   |   |
| Net interest income                                                                  |   | $ 3,259 |   |   | $ 2,943 |   |
| Net interest spread (1)                                                              |   |   | 3.81% |   |   | 3.50% |
| Net interest margin  (1) (3)                                               |   |   | 4.06% |   |   | 3.80% |
| Return on average assets ratio                                                       |   |   | 0.75% |   |   | 0.38% |
| Return on average equity ratio                                                       |   |   | 6.84% |   |   | 3.45% |
| Average equity to assets ratio                                                       |   |   | 10.98% |   |   | 11.03% |
| _______________                                                                      |   |   |   |   |   |   |

----

| Average Consolidated Balance Sheets and Net Interest Analysis (Dollars in thousands) |
|--------------------------------------------------------------------------------------|
| Nine months ended September 30,                                                      |   | 2010 |   |   | 2009 |   |
|                                                                                 | AverageBalance | Income/Expense | AverageRate | AverageBalance | Income/Expense | AverageRate |
| Earning assets:                                                                      |   |   |   |   |   |   |
| Federal funds sold                                                                   | $    6,461 | $15 | 0.30% | $     4,214 | $       7 | 0.22% |
| Available-for-sale securities (1)                                                    |   |   |   |   |   |   |
| Taxable                                                                              | 21,355 | 466 | 2.92% | 22,683 | 608 | 3.58% |
| Nontaxable (1)                                                                       | 18,756 | 832 | 5.93% | 19,330 | 857 | 5.93% |
| Federal Home Loan Bank stock                                                         | 2,025 | 68 | 4.50% | 2,025 | 71 | 4.69% |
| Loan receivables (2)                                                                 | 266,564 | 12,114 | 6.08% | 266,296 | 11,835 | 5.94% |
| Total interest earning assets                                                        | 315,161 | 13,495 | 5.72% | 314,548 | 13,378 | 5.69% |
| Non-interest earning assets                                                          | 32,689 |   |   | 33,447 |   |   |
| Total Assets                                                                         |  $347,850 |   |   |  $347,995 |   |   |
|                                                                                 |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                        |   |   |   |   |   |   |
| Interest-bearing transaction accounts                                                | $  64,049 | $  264 | 0.55% | $  60,202 | $   282 | 0.63% |
| Savings accounts                                                                     | 9,699 | 21 | 0.28% | 8,915 | 20 | 0.30% |
| Time deposits                                                                        | 183,957 | 3,375 | 2.45% | 166,759 | 3,993 | 3.20% |
| Total interest-bearing deposits                                                      | 257,705 | 3,660 | 1.90% | 235,876 | 4,295 | 2.43% |
| Short-term borrowings                                                                | 13 | 0 | 0.00% | 17 | 0 | 0.00% |
| Securities sold under repurchase agreements                                          | 909 | 6 | 0.94% | 4,572 | 96 | 2.81% |
| FHLB borrowings                                                                      | 7,993 | 183 | 3.05% | 24,993 | 491 | 2.63% |
| Subordinated debentures                                                              | 5,000 | 75 | 2.02% | 5,000 | 103 | 2.75% |
| Total interest-bearing liabilities                                                   | 271,620 | 3,924 | 1.93% | 270,458 | 4,985 | 2.46% |
| Non-interest bearing deposits                                                        | 36,631 |   |   | 35,999 |   |   |
| Other liabilities                                                                    | 1,743 |   |   | 1,867 |   |   |
| Total liabilities                                                                    | 309,994 |   |   | 308,324 |   |   |
| Stockholders’ equity                                                           | 37,856 |   |   | 39,671 |   |   |
| Total Liabilities and Stockholders’   Equity                    | $347,850 |   |   | $347,995 |   |   |
| Net interest income                                                                  |   | $ 9,571 |   |   | $8,393 |   |
| Net interest spread (1)                                                              |   |   | 3.79% |   |   | 3.23% |
| Net interest margin  (1) (3)                                               |   |   | 4.06% |   |   | 3.57% |
| Return on average assets ratio                                                       |   |   | 0.69% |   |   | (0.40)% |
| Return on average equity ratio                                                       |   |   | 6.38% |   |   | (3.52)% |
| Average equity to assets ratio                                                       |   |   | 10.88% |   |   | 11.40% |
| _______________                                                                      |   |   |   |   |   |   |

----

|                                                             |   | (Dollars in Thousands)                       |
|------------------------------------------------------------------|--------|----------------------------------------------|
|                                                             |   | Nine Months Ended September 30,              |
|                                                             |   | 2010 Vs. 2009                                |
|                                                             |   | Increase (Decrease) Due to                   |
|                                                             |   | Rate                                         |   | Volume |   | Net |
| Interest-earning assets:                                         |   |                                         |   |   |   |   |
| Federal funds sold                                               |   | $       4 |   | $      4 |   | $          8 |
| Available-for-sale-securities:                                   |   |                                         |   |   |   |   |
|    Taxable                                        |   | (106)                                        |   | (36) |   | (142) |
|    Nontaxable (1)                                 |   | -                                            |   | (25) |   | (25) |
| FHLB stock                                                       |   | (3)                                          |   | - |   | (3) |
| Loan receivables                                                 |   | 267                                          |   | 12 |   | 279 |
| Total net change in income on interest-earning assets       |   | 162                                          |   | (45) |   | 117 |
|  Interest-bearing liabilities:                              |   |                                         |   |   |   |   |
| Interest-bearing transaction accounts                            |   | (36)                                         |   | 18 |   | (18) |
| Savings accounts                                                 |   | (1)                                          |   | 2 |   | 1 |
| Time deposits                                                    |   | (1,030)                                      |   | 412 |   | (618) |
| Securities sold under repurchase agreements                      |   | (13)                                         |   | (77) |   | (90) |
| Federal funds purchased                                          |   | -                                            |   | - |   | - |
| FHLB borrowings                                                  |   | 26                                           |   | (334) |   | (308) |
| Subordinated debentures                                          |   | (28)                                         |   | - |   | (28) |
| Total net change in expense on interest-bearing liabilities |   | (1,082)                                      |   | 21 |   | (1,061) |
|  Net change in net interest income                          |   | $     1,244         |   | $         (66) |   | $          1,178 |
|  Percentage change                                          |   | 105.67%                                      |   | (5.67)% |   |   100.0% |

----

| ( Dollars in thousands)                      | September 30, 2010 | September 30, 2009 |      Increase(Decrease) |
|----------------------------------------------|--------------------|--------------------|--------------------------------------------------|
| Service charges on deposit accounts          | $1,184             | $  994   | $190                                             |
| Other service charges and fees               | 290                | 292                | (2)                                              |
| Gain on sale of mortgage loans held for sale | 194                | 258                | (64)                                             |
| Gain on the sale of investment securities    | 0                  | 361                | (361)                                            |
| Lease income                                 | 111                | 119                | (8)                                              |
| BOLI income                                  | 221                | 226                | (5)                                              |
| Other income                                 | 115                | 99                 | 16                                               |
|                                         | $2,115             | $2,349             | $ (234)                                          |

----

| (Dollars in thousands)               | September 30, 2010 | September 30, 2009 | Increase(Decrease) |
|--------------------------------------|--------------------|--------------------|--------------------|
| Salaries and employee benefits       | 3,376              | 4,092              | $(716)             |
| Net occupancy expense                | 959                | 1,010              | (51)               |
| Equipment expense                    | 483                | 569                | (86)               |
| Advertising and public relations     | 206                | 340                | (134)              |
| Professional fees                    | 437                | 448                | (11)               |
| Data processing services             | 560                | 501                | 59                 |
| Franchise shares and deposit tax     | 363                | 365                | (2)                |
| FDIC Insurance                       | 361                | 489                | (128)              |
| Core deposit intangible amortization | 198                | 207                | (9)                |
| Postage and office supplies          | 123                | 165                | (42)               |
| Telephone and other communications   | 138                | 149                | (11)               |
| Other real estate expenses           | 194                | 149                | 45                 |
| Other operating expenses             | 476                | 497                | (21)               |
|                                 | $7,874             | $8,981             | $(1,107)           |

----

|                                                                         |   | (Dollars in Thousands)                      |
|------------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                         |   | September 30, 2010                          |   | December 31, 2009 |
|                                                                         |   |                                        | % ofTotal Loans |   |   | % ofTotal Loans |
|  Commercial and agricultural                                            |   | $      67,816 | 25.66% |   | $      74,944 | 28.40% |
| Commercial real estate                                                       |   | 111,273                                     | 42.10% |   | 104,768 | 39.70% |
| Residential real estate                                                      |   | 75,083                                      | 28.41% |   | 73,166 | 27.72% |
| Consumer................................ |   | 10,111                                      | 3.83% |   | 11,044 | 4.18% |
|                                                                         |   | $   264,283                  | 100.00% |   | $   263,922 | 100.00% |

----

|                                    |   | (Dollars in Thousands) |
|-----------------------------------------|--------|------------------------|
| Loan Maturitiesas of September 30, 2010 |   | Within OneYear         |   | After One but Within Five Years |   | After FiveYears |   | Total |
| Commercial and agricultural             |   | $30,707                |   | $26,580 |   | $10,529 |   | $67,816 |
| Commercial real estate                  |   | 29,600                 |   | 43,279 |   | 38,394 |   | 111,273 |
| Residential real estate                 |   | 6,307                  |   | 20,670 |   | 48,106 |   | 75,083 |
| Consumer                                |   | 2,692                  |   | 6,899 |   | 520 |   | 10,111 |
| Total                                   |   | $69,306                |   | $97,428 |   | $97,549 |   | $264,283 |

|                                                |   | (Dollars in Thousands)                                             |
|-----------------------------------------------------|--------|--------------------------------------------------------------------|
|                                                |   | September 30, 2010                                                 |   | December 31, 2009 |
|  Non-performing loans                          |   | $          1,184 |   | $            1,230 |
| Non-performing assets                               |   | 2,468                                                              |   | 2,384 |
| Allowance for loan losses                           |   | 4,839                                                              |   | 3,988 |
| Non-performing assets to total assets               |   | 0.72%                                                              |   | 0.69% |
| Net charge-offs to average total loans (annualized) |   | 0.19%                                                              |   | 1.72% |
| Allowance for loan losses to non-performing loans   |   | 408.70%                                                            |   | 324.23% |
| Allowance for loan losses to total loans            |   | 1.83%                                                              |   | 1.51% |

----

----

|                                                     | September 30, 2010 | September 30, 2009 |
|----------------------------------------------------------|--------------------|--------------------|
| (Dollars In thousands)                                   |               |               |
| Balance, beginning of year                               | $3,988             | $3,816             |
| Provision for loan losses                                | 1,225              | 3,500              |
| Amounts charged off:                                     |               |               |
| Commercial                                               | (131)              | (2,612)            |
| Commercial real estate                                   | (167)              | (555)              |
| Residential real estate                                  | (266)              | (151)              |
| Consumer                                                 | (65)               | (300)              |
| Total loans charged off:                                 | (629)              | (3,618)            |
| Recoveries of  amounts previously charged off: |               |               |
| Commercial                                               | 229                | 59                 |
| Commercial real estate                                   | 6                  | -                  |
| Residential real estate                                  | 16                 | 17                 |
| Consumer                                                 | 4                  | 3                  |
| Total recoveries                                         | 255                | 79                 |
| Net (charge-offs) recoveries                             | (374)              | (3,539)            |
| Balance, end of period                                   | $4,839             | $3,777             |

|                                           |   | (Dollars in Thousands)                                                                   |
|------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                                           |   | September 30, 2010                                                                       |   | December 31, 2009 |
|                                           |   | Amount                                                                                   | % of Loansin EachCategoryto TotalLoans |   | Amount | % of Loansin EachCategoryto TotalLoans |
|                                           |   |                                                                                     |
|                                           |   |                                                                                     |
|                                           |   |                                                                                     |
|                                           |   |                                                                                     |
|  Residential  real estate loans |   | $              844 | 28.41% |   | $              805 | 27.72% |
| Consumer and other loans                       |   | 134                                                                                      | 3.83% |   | 148 | 4.18% |
| Commercial and agricultural                    |   | 2,541                                                                                    | 25.66% |   | 2,085 | 28.40% |
| Commercial real estate                         |   | 1,187                                                                                    | 42.10% |   | 892 | 39.70% |
| Unallocated                                    |   |          133                                |     0.00% |   |          58 |     0.00% |
|  Total allowance for loan losses          |   | $           4,839                 | 100.00% |   | $           3,988 | 100.00% |

----

|                                           |   | (Dollars in Thousands) |
|------------------------------------------------|--------|------------------------|
|                                           |   | September 30, 2010     |   | December 31, 2009 |
| U.S. Treasury and U.S. Government agencies     |   | $9,597                 |   | $19,102 |
| Agency mortgage-backed securities: residential |   | 10,312                 |   | 2,061 |
| Municipal securities                           |   | 19,704                 |   | 19,196 |
| Other securities                               |   | 900                    |   | 700 |
| Total available-for-sale securities            |   | $40,513                |   | $41,059 |

| September 30, 2010                                                                                                                                                                                                                                                                     |   | (Dollars in Thousands)                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|
|                                                                                                                                                                                                                                                                                   |   | One Yearor Less                              | OverOne YearThroughFive Years | OverFive YearsThroughTen Years | OverTen Years | TotalMaturities | FairValue |
| U.S. Government agencies                                                                                                                                                                                                                                                               |   | $       - | $     3,498 | $5,016 | $  1,010 | $ 9,524 | $9,597 |
| Agency mortgage-backed securities: (1)                                                                                                                                                                                                                                                 |   |       25       | 10,182 | - | - | 10,207 | 10,312 |
| Municipal securities                                            |   | 380                                          | 2,539 | 8,410 | 7,362 | 18,691 | 19,704 |
| Other Securities                                                |   | -                                            | - | - | 1,862 | 1,862 | 900 |
|   Total available-for-sale securities                                                                                                                                                                                                                                        |   | $  405                             | $ 16,219 | $13,426 | $ 10,234 | $ 40,284 | $ 40,513 |
|                                                                                                                                                                                                                                                                                   |   |                                         |   |   |   |   |   |
| Percent of total                                                |   | 1.0%                                         | 40.3% | 33.3% | 25.4% | 100.0% |   |
| Weighted average yield(2)                                                                                                                                                                                                                                                         |   | 5.63%                                        | 2.83% | 4.22% | 5.59% | 4.04% |   |

| (1) | Agency mortgage-backed securities (residential) are grouped into average lives based on September 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)         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                | September 30, 2010             |
|     Three months or less                                                                                                                                                                                                                                                                                        | $   20,348      |
|     Over three through six months                                                                                                                                                                                                                                                                               |      9,415 |
|     Over six through twelve months                                                                                                                                                                                                                                                                              |    20,903            |
|     Over one year through three years                                                                                                                                                                                                                                                                           |   21,836             |
|     Over three years through five years                                                                                                                                                                                                                                                                         |     3,433       |
|     Over five years                                                                                                                                                                                                                                                                                             | -                              |
|                                                      Total | $75,935                   |

|   |   |              |   |   |   | (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)                                              |               |
|---------------------------------------------------------------------|--------------------|
|                                                                | September 30, 2010 |
|  Federal funds purchased and repurchase agreements:            |               |
| Balance at period end                                               | $786               |
| Weighted average rate at period end                                 | 0.92%              |
| Average balance during the nine months ended September 30, 2010     | $909               |
| Weighted average rate for the nine months ending September 30, 2010 | 0.94%              |
| Maximum month-end balance                                           | $918               |

----

----

|                                                                                                                                                                                                                                                            |   | September 30, 2010 |   | December 31, 2009 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|-------------------|
| Tier 1 leverage ratio                                        |   | 10.81%             |   | 10.52%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%              |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | N/A                |   | N/A               |
| Tier 1 risk-based capital ratio                                                                                                                                                                                                                                 |   | 13.30%             |   | 12.54%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%              |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | N/A                |   | N/A               |
| Total risk-based capital ratio                                                                                                                              |   | 14.56%             |   | 13.79%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 8.00%              |   | 8.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | N/A                |   | N/A               |

|                                                                                                                                                                                                                                                            |   | September 30, 2010 |   | December 31, 2009 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|-------------------|
| Tier 1 leverage ratio                                        |   | 9.75%              |   | 9.38%             |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%              |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | 5.00%              |   | 5.00%             |
| Tier 1 risk-based capital ratio                                                                                                                                                                                                                                 |   | 11.94%             |   | 11.12%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 4.00%              |   | 4.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | 6.00%              |   | 6.00%             |
| Total risk-based capital ratio                                                                                                                              |   | 13.19%             |   | 12.37%            |
|    Regulatory minimum                                                                                                                                                                                                                            |   | 8.00%              |   | 8.00%             |
|    “Well-capitalized” minimum                                                                                                                                                                                                        |   | 10.00%             |   | 10.00%            |

----

| Regulation G Non-GAAP Reconciliation:                        |   | September 30, 2010 |   | December 31, 2009 |
|--------------------------------------------------------------|--------|--------------------|--------|-------------------|
|                                                         |   |               |   |              |
| Total stockholders’ equity (a)                         |   | $38,620            |   | $36,858           |
| Less:                                                        |   |               |   |              |
|    Preferred stock                            |   | (16,230)           |   | (16,182)          |
| Common equity (b)                                            |   | 22,390             |   | 20,676            |
|    Goodwill                                   |   | (2,575)            |   | (2,575)           |
|    Intangible assets                          |   | (1,095)            |   | (1,293)           |
| Tangible common equity (c)                                   |   | 18,720             |   | 16,808            |
| Add:                                                         |   |               |   |              |
|    Preferred stock                            |   | 16,230             |   | 16,182            |
| Tangible equity (d)                                          |   | $34,950            |   | $32,990           |
|                                                         |   |               |   |              |
| Total assets (e)                                             |   | $344,443           |   | $344,231          |
| Less:                                                        |   |               |   |              |
|    Goodwill                                   |   | (2,575)            |   | (2,575)           |
|    Intangible assets                          |   | (1,095)            |   | (1,293)           |
| Tangible assets (f)                                          |   | $340,773           |   | $340,363          |
| Common shares outstanding (in thousands) (g)                 |   | 1,969              |   | 1,969             |
|                                                         |   |               |   |              |
|                                                         |   |               |   |              |
| Book value per common share (b/g)                            |   | $11.37             |   | $10.50            |
| Tangible book value per common share (c/g)                   |   | $9.51              |   | $8.53             |
|                                                         |   |               |   |              |
| Total shareholders’ equity to total assets ratio (a/e) |   | 11.21%             |   | 10.71%            |
| Tangible equity ratio (d/f)                                  |   | 10.26%             |   | 9.69%             |

----

| Projections for: Oct 2010 - Sep 2011 |
|--------------------------------------|
| Projected Interest Rate Change       | Estimated Value | Net Interest Income $ Change From Base | % Change From Base |
| +400                                 | 14,529,077 | 1,657,899 | 12.88% |
| +300                                 | 13,875,760 | 1,004,581 | 7.80% |
| +200                                 | 13,225,223 | 354,045 | 2.75% |
| Base                                 | 12,871,179 | 0 | 0.00% |
| -200                                 | 12,764,431 | -106,747 | -0.83% |
| -300                                 | 12,524,044 | -347,135 | -2.70% |

----

----

| 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 September 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 September 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 September 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:  | November 1, 2010 | /s/  M. Todd Kanipe                             |
|   |             | M. Todd Kanipe                                       |
|   |             | President and Chief Executive Officer                |
|   |             |                                                 |
|   |             |                                                 |
|   |             |                                                 |
|   |             |                                                 |
|   | November 1, 2010 | /s/   J. Steven Marcum                     |
|   |             | J. Steven Marcum                                     |
|   |             | Executive Vice President and Chief Financial Officer |
|   |             |                                                 |